Merchandise Presentation & Store Design

Free-Form (Boutique) Layout

Fixtures and aisles arranged asymmetrically

• Pleasant relaxing ambience
• Small store experience
• Inefficient use of space
• More susceptible to shoplifting – salespeople cannot view adjacent spaces
• Used in specialty stores and upscale department stores

Store Design

• Wide aisles -> ease of movement
• Convenient to find -> according to the product & variety

Display Areas

Feature areas

• Promotions items & signages are place near entrance
• Display new products on the windows.

Human Resource Management

3 HR PRACTICES - UNIQUELY SINGAPORE!

Below are some examples of unique Human Resource Practices.

IKEA

• IKEA has a strong belief in the importance of family, and it shows in their HR policies as well as their store design and features. IKEA offers co-workers the opportunity to try new positions and actively encourages co-workers to try 10 jobs in 10 years.

• In their corporate headquarters, dress is casual and employees enjoy the opportunity to bring their kids to work on occassion. Co-workers enjoy their own private cafeteria where there's more than just meatballs, and there are even 'quiet rooms' for co-workers in the stores - a secluded place to quietly relax or even meditate while on a break or before or after work.

ESPLANADE

• Many companies have taken steps to put prospective customer service staff through various stages of testing. Often intangible attributes like "a great personality", or a "sense of being ready to help out" are factors for hiring a candidate.

• One example would be when the Esplanade-Theatres on the Bay hired part-time ushers, who was hired depended on the candidates' smiles.

Workforce Development Agency(WDA)

1. Collaboration with key agencies and associations to develop and implement an effective engagement and leadership development strategy with Retail CEs and HR managers to educate them on the importance of training investment and business outcomes, as well as to highlight the rationale of Retail CET Framework and courses. For instance, this can be done through mounting breakfast meetings, priority conversations or industry forums with CEs and HR managers. Renowned retail experts or speakers will also be invited to speak on new ways and ideas of retailing and retail training.

Price Management---- EVERYDAY LOW PRICE?!?!?!?!

What are the methods?

1. Demand-Oriented- whatever price the customer is willing to pay
2. Cost-Oriented- fixed percentage over cost price of product
3. Competitors Oriented- similar to competitor's pricing
4. Mark up pricing- a markup is added on to the total cost incurred by the product
5. Bait and Switch- introduce customer to a cheaper product first

How retailers set their price?

1. Cost of goods- cost of importing the goods
2. Forecasted sales- whether it is feasible
3. Demand- whether the product is in demand
4. Price- how much the customer are willing to pay
5. Customer Income- how much customer earns
6. Need for product- do customer need it
7. Availability of products- whether the customers have a wide choice to choose from
8. Frequency- time spent on product

Price Adjustments

1. Coupons- discount
2. Rebates- money that is returned to customer based on a portion of money spent
3. Variable discount- weekend special, location

Prices to stimulate Sales

1. Leader Pricing- price priced lower than other competitors
2. Price Lining- limited pricing to predetermine price points e.g handphone plans
3. Odd Pricing- price that end with a odd (6.77) or round number ($46)

• Hence we feel that for a premium brand such as Molten Brown, it should be offering a high mark up pricing and the prices should not be determined by competitors products.
• However from visits to the store we noticed that they used Bait and Switch method- as people may be attracted to the low prices that Molten Brown offers at such a high quality.
• Molten Brown from what we observed does not practise leader pricing nor coupons but occasionally they offer variable discount.
• Molten Brown targets at people with money who can afford luxurious goods to pamper themselves thus enabling them to set their price according to customer's income.