Retail Buyer Behaviour

University Degree Business and Administrative studies

Mk2220

Retail Buyer Behaviour

Assessment 2

For this assessment we are going to investigate Debenhams target market.

Debenhams operates 97 stores throughout the UK and Ireland, with seven international franchise stores. Debenhams has followed a stragtegy based on organic growth investigating heavily in modernising and expanding its store portfolio. Debenhams wants to have 106 domestic market stores by the end of 2006. The company has changed its product mix and positioning, putting strong focus on fashion and introducing many new aspiration contemporarary designer brands and there own highly designed own labels. In 2000/01 Debenhams out performed its competitors and gained its market share. (Mintel.com)

What Debenhams main emphasis is to create consumer demand for their variety of clothing in store, by attracting consumers in order to increases sales of high margin lines, bulk purchases i.e. purchase for all the family, this will enhance their store image by conveying impressions of good prices compared to rival competitors in the city. Debenhams have chosen exclusive merchandise to attract all consumers from all ages i.e. purchasing for their partners and children’s to come and buy our products and also come back again and tell others (word of mouth). This strategy is to gain customer loyalty.

According to Gilbert (1999) the location is often the most important consumer behaviour consideration in a customer’s decision of where to shop. The Debenhams store we are investigating is the main town centre that attracts hundreds of consumers on a day-to-day basis because of the location. The store is designed to reflect the particular values of the locality, requiring design differentiation within the chain stores (Wallendorf et al, 1998) Cited in McGoldrick 2002 p455

Debenhams products offers is quite heavily skewed better than many of its rivals, Debenhams revenue is based around 1.3 billion to 1.4 billion mark during there toughest period of 1998 to 2000. Consistent strategy and market conditions have helped achieve an impressive 15.4% increase in sales driving it forward to 1.6 billion in 2000/01. The strong advance has driven because consumer’s transaction values have increased. The Designer Labels at Debenhams have captured a greater proportion of the sales. (Mintel.com)

Debenhams target market concentrates on clothing than any other leading departmental store in the UK. The company focuses on women swear, children wear, and menswear. There has been a substantial growth in sales on fragrances, cosmetics, home ware and gifts and the company is focusing on expanding the gift and cosmetic offers.

Debenhams also features its own mix of designer labels including 500 international brands. In 2000/01 a new media entertainment department had been introduced to the larger stores because of consumer demand for audio and visual products. Debenhams had introduced its own brand called Lecson, which offered television and DVDS. The majority of Debenhams stores also have a restaurant or café for their consumers to enjoy a good shopping experience.

Debenhams own brand accounts for 50% of their turnover. Their biggest label itself accounts for 18.5% of total sales particularly homeware and women’s fashion accessories (mintel.com). According to Cotler (1997) he defines a brand as a name, term sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those competitors. Debenhams is established by a classical brand for women’s formal wear and this is now going to be extended with a collection of new ranges for women clothing. Debenhams is focusing on its own brand premium make up and skin care range MEA, which has become one of its best selling brands. However Kapferer (1992) produces the more esoteric statement a brand is not a product, it is the product essence, it meaning and its direction, it defines its identity in time and space. Consumer like to shop at Debenhams retail outlets to purchase the brand on most occasions or on a regular basis, because this sort of characteristics is known as store or brand loyalty, in other words the consumer feels positively about what they purchase at store. Customers buying behaviour can vary depending on their buying situation, even when demographics and life style remain unchanged i.e. Consumers will shop at Debenhams, but also go to rival competitors.

The new focus of branding is to create naturally beneficial situations, to find the correct right brand mix for the consumer while generating adequate sales is a challenge for Marketers in the 1990’s (Allen 1993) says as consumers become more price sensitive, the brand itself loses some importance. However, the issues are more focused on sales and profits.

Brand Names have become the most valuable assets for the majority of companies across the globe. Consumers view a brand as an important part of a product and branding has added value to the product.

The commitment to the ...

This is a preview of the whole essay

Brand Names have become the most valuable assets for the majority of companies across the globe. Consumers view a brand as an important part of a product and branding has added value to the product.

The commitment to the brands success is encompassed in it advertising. In the increasingly competitive market place, advertising, marketing and promotion may be the only things that differentiate extremely similar products. (Coonan 1993)

Debenhams has also 40 exclusive private labels including casual club clothing, Maine New England, Le Vrai Gourmet and main new England homeware. When Debenhams introduced the Maine new England menswear in 1995 to womens and children wear the sales extended to 90 million in 2000/01 which was an increase of 40% on the previous year. The Osborne shirt and tie range is also been extended to jackets and trousers to see an increase in sales. (Mintel.com). We can see that there is a high level of consumer brand awareness and loyalty and because the brand names carry high credibility these company’s can defence against fierce price competition from competitors. According to (McGoldrick 2002 p244) shoppers frequently wish to visit several stores on one shopping trip, there has been some study’s of consumer tendencies to link store visits.

Debenhams has a catalogue and Internet shopping facility for their customers. The company produces a catalogue twice a year with 500 pages, as well as three smaller catalogues to complete one main one. These catalogues offer seasonal merchandise to consumer. Currently Debenhams is in joint venture with freeman PLG who distribute and make the catalogues. Over 50% of merchandise offered in the catalogue is womenswear and 20% homeware. The Debenhams direct group are presence in areas, which have no stores, and give the consumer the opportunity of choice of purchasing bulk items like furniture. (Mintel.com)

Debenhams website has operated for the last 3 years and offers over 5000 product lines. This website attracts around 115,000 vistors a month. There is also a wedding gift service, which can be accesses through the store and call centres.

SWOT Analysis

Source Mintel.com

Debenhams is part of Britain’s newest and most exiting programme the nectar card that rewards you when you spend at store. The incentives you will receive as consumers vary from great day outs, cinema tickets, holidays or even restaurant deals at their stores.

Debenhams has a clear strategy to drive profitability and grow market share. They focus on increasing sales to existing cusatomers and attracting new customers and want to move into a new market to achieve profitability.

Debenhams is committed to provide a relaxing and efficient and enjoyable shopping environment when shopping in their stores. The store has a customer service department and well-trained staffs are available for any query or complaint. The store also has directory facilities to help you find your way around easily and quickly in store. Any ordering service in store will give you access to a wider range of products in store. Debenhams has loyal customers that are gold account customers, there are privileged to lounges and lockers in 40 of their stores throughout the UK.

When a consumer purchases a product at Debenhams there may be a decision making process of purchasing the correct product. This process can be changed in the mind of the consumer and there are many reasons for this. An example of this is, a consumer may have decided on a product, brand and a store but is finally decided they are making the wrong choice because the price of the product in that store is higher than the store the consumer has been to previously or because the staff in the store have not been very helpful. “The buying process has been described as a problem solving exercise, designed to result in the satisfaction of a need or want” There are many factors which influence consumer behaviour particularly in buying situation. There are four possible roles within the action in the buying process, which are the Influence, the Decider, the Buyer and the User. (Source: Retail Management Handbook: Page 59)

There are many reasons that may influence a consumer to go shopping which may be a personnel motive where people go shopping to see the latest fashion trends as well as seeing what is available in store and what is not available on the market. Motive is also a reason for consumers going shopping where individuals go to meet others or to go looking for bargains at Debenhams. Also peer group pressure will also have an effect on the way we shop at Debenhams there is a lot of impulse buys all around the store which will suite us as consumers. According to Hasty (1997) impulse buying is an unplanned purchase, for example purchasing batteries or chewing gum at the customer pay point. Impulse and convenience goods benefit consumers by being located in high traffic areas where customers, pass by the displays and are likely to pick up an impulse item for purchase. The main reason consumers go shopping is to purchase products that will satisfy their needs to fulfil their desire.

Debenhams has designed its stores to attract consumers shop and browse around the entire store. The store layout is carefully designed so the consumer can move around freely. Debenhams communication strategy is done through advertising and promotions of well-recognized designer labels at a cheap price. There are many reasons for Debenhams to advertise such as to create awareness of their brands, company or organisation, to keep a product or even a brand name in mind of customer, to gain awareness and interest of consumers who may purchase the product in their store. Debenhams chooses a free-flow layout in store; this will enable consumers to move freely around the store in any direction between fixtures or displays, which have been arranged in an irregular patterns. McGoldrick, 2002, p468 describes the free-flow layout as encouraging browsing and visual appealing

This layout should or will encourage browsing in store and can be visually appealing to the consumers. Debenhams display techniques involve in open displays to help create involvement by surrounding the consumer with the merchandise assortment they have chosen. Rosenbloom, 1981 cited in McGoldrick, 2002,p473, states that

“ The shopper is more likely to stop and touch the merchandise, the propensity to purchase then tends to increase”

In Debenhams they have a fresh scent so consumers feel good when shopping their which could influence their moods and behaviour, in the way they shop which hopefully have a positive impact on store profitability. (Newman 2002 p206) believes that scent is perhaps one of the subtler and more surreptitious methods used by retailers to manage customers”.

Debenhams use male and female mannequins from different age groups in the window display, which is an excellent method in presenting their merchandise. This includes casual wear, boys wear, to highlight to consumers that Debenhams meets their demands and quality of clothing at good value and reasonable prices from their competitors. This technique should attract passers buys in the mall want to walk in the store and buy our products. (Tolman, 1974 p169) states “Display can be defined as the non-personal physical presentations of merchandise or ideas in store windows, interiors and remote displays” however (Omar 1999,p286) states “Stores normally use their window displays to feature merchandise items, although some may occasionally be used to display fascinating scenes for children at Christmas”

Promotions are the main factors which change customers buying behaviour because this is when they can purchase items at a low cost or they can purchase one item and get the other free or at half price Debenhams tend to do this a lot to attract customers in store. Customers tend look around for bargains and if they see one they are then more likely to purchase a lot of items especially during the sales periods.

As lifestyle changes consumers shopping habits change an example of this is some shoppers buy designer labels because it matches their emotional needs. Where as a few consumers may buy own brands the reason for this is because they are cheaper in price or they see them as the same quality at lower price.

Customers buying behaviour also changes due to the fashion trend the reason for this is that people want to buy clothes or products when they have arrived newly on the market. Consumers don’t want to purchase the very old range of clothing or be seen wearing something that is out of fashion. People also tend to copy each other, for example if a celebrity like David Beckham was wearing certain type of clothing and had other products such as a bag or a car, or sunglasses, a lot of people would want to be like him and follow him like an icon. Consumers would also purchase the same or similar items or products what David Beckham is wearing.

Consumer decision-making choice is corresponded closely to a decision making perspective. The consumer tries to collect as much information as possible about the product, if only then the consumer is happy with the internal factors the consumer will make the decision to purchase the product if it meets up to some of their desired characteristics. However sometimes when consumers are shopping it can be straightforward and simple. The buyer may not be as motivated to search for information regarding the product. The consumer may use the simple decision making process to choose among the alternative products available in store. The signages they use in Debenhams have an effect on how consumers spend in store; customers like to know what they’re buying and also how much it costs. Debenhams signs are not to fancy but are effective in the creativity of the signs. For example they put up posters in the boys clothing area showing boys dress up with matching pairs of clothes, this will give the customer a thought in his/her mind the way he dresses (this could be an impulse buy by the consumer). On the other hand posters in the men’s casual clothing area highlight the latest fads of casual wears for men. However the most important signage is externally the logo of Debenhams, which identifies the store to the customers when they are walking pass the store. (Bond 1969,p8) states “It is clear that for almost any sale to be completed the customers must attract to the shop, must favourably respond to the internal environment and must be able to examine the merchandise easily and with confidence”

There are also consumers who explicitly search the market place for specific information after a need has been recognized, which is called a purchase search for example look on the internet and try and price match or go to rival competitors. However there are other consumers who just like to stay up to date with what happening on the market place, who just enjoy browsing just for the fun, these consumers are engaged in only an ongoing search. Solomon, (1999), p265 states when a search activity is important, there is a need to learn more about the purchase, when the all relevant information is easily utilized in other words all consumers will differ in the amount of search they tend to undertake when making a purchase. All the fact and finding process tent to conduct more information search, from young to educated consumers. According to Solomon (1999) women are more likely and inclined to search than men are, and also women place greater value on style and the image they present on a day to day basis is important to them.

According to Hasty (1997) customers needs and desire a constant flow of factual information to use as a basis for making need satisfying purchase desions. Consumers want to know Debenhams store opening and closing hours, what special offers are being run at Debenhams, what is the lastest style in fashion. The entire sufficient information offered buy Debenhams will help motivate consumers to purchase at Debenhams.