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New Rules of Retailing
I: Introduction
Jo-Ann Fabrics and Craft Store is a relatively medium store. However, the marketing strategies that the firm has projected in the recent past have presented it with advantages over its rivals as it has since assumed a dominant role in the market. Application of the Lewis Retailing Rules has redefined the purpose and target of the firm as it has amassed financial success. This essay examines the application of the rules as have is used by the company in sustenance of the competition in its preferred market.
II: Application of the New Retailing Rules at Jo-Ann a. Democratized Product Selection
Jo-Ann brings quality within the reach of all citizens by ensuring that even individuals with low-income capacities get accorded the opportunity to purchase valuable products. In the Democratized Product Selection program, the firm has targeted students above the age of fourteen, both in high schools and institutions of higher learning. A 10% discount is implemented to waiver the high prices that could hamper the purchase of desired products by students who obviously do not have reliable sources of income. In so doing, the company has earned the loyalty of student clients as they feel considered and dully accommodated by the store. The discount program requires the students to provide full identification to verify their eligibility for the democratized product selection (Cox 18).
b. Facilitated Purchase Processes
Jo-Ann has implemented processes and transaction mechanisms that ease the processes of purchase for the clienteles who do not desire to undertake the time-consuming shopping processes. The company has facilitated the use of the internet for online shopping and marketing by putting up different social media channels like Twitter, Facebook, Pinterest, and Instagram. The company has also facilitated M-Commerce that enables clients to access an established app. store without necessarily plugging to access the internet. That is; handheld gadgets can be used by clients to confirm offers or check coupons through the internet or by sending texts to 56266. Moreover, the firm has made their bills payable through mobile phones.
c. Product Customization
Jo-Ann has taken to modifying their products so to meet the wide range client expectations that are defining their markets. Modification of products to produce different designs is based on the fact the different clients might have the liking of a product, but with different tastes (Dart and Lewis 24). For instance, the store has endeavored to sell frames that are designed to fulfill the different esthetic values of generations and gender. Case for which, there are old looking out fashioned frames designed to satisfy the demands of clients who are more inclined to buy antiques. On the other hand, there are also flashy frames that meet the expectations of youth whose dreams are still high.
d. Corporate Social Responsibility
The store has endeavored to facilitate charity programs that benefit the community in varied aspects. Jo-Ann has created a competition in which clients can craft any artistic material. From the competition, the first three winners are accorded the privilege of choosing a charitable organization to which the store donates funds. In some other versions of the competition, the firm asks clients to make donations to their favored charity organizations. The organizations that receive the highest volumes of donations get ranked as the leading and get awarded more funding. The leading organization often gets awarded $50,000, with the second and third getting $25,000 and $15,000 respectively. Through CSR, the store has managed to portray itself as concerned about the society, thus winning the loyalty of clients (Dart and Lewis 25).
e. Partnerships and Collaborations
The company has engaged on a temporal basis with other organizations as they seek to expand their visionary targets and explore new ideologies and opportunities. The firm targets partnerships for improving their nature of service delivery and for revolutionizing their marketing strategies and objectives. For instance, Jo-Ann partnered with ‘Project Runway: Threads’ TV Program toward the end of 2014 as it targeted to illuminate the varied talent that gets used in designing its products. That is so because the program showcases the skill of young fashion designers and offers them a podium for growth and development. Moreover, that is not the only partnership that the firm has secured as it bids to elevate its status. Others partners include the Craft Retail Group and other marketing agencies that have played significant roles in molding the path to success for the company.
f. Creating a Motivated Experience
At Jo-Ann, strategies have been employed that target to improve the interaction of clients with the value that gets offered at the firm. The inadequacy of conducting placid sales is neutralized within the store by creative quotes that mark several shelves within the store. Through the quotes, an inspiration that develops a connection between the clients and the quality and creativity offered by the firm gets created. The statements are visionary and get targeted at making the clienteles happy. The relationship between the statements that mark the shelves and the company is apparent and explains the experience that the company desires for the clients. The company slogan is ‘Experience the Creativity’, and the colorful shelf headings are numerous and include, ‘Express my Imagination’, ‘Learning is a Hoot’, ‘Finding Yourself’.
g. Small Store Size
The sizes of stores that are established within the same locality as Jo-Ann are bigger, a factor that makes shopping experiences within such stores complicated. Jo-Ann’s average size makes movement efficient and access to shelves and products easier. It also presents clients with an opportunity to easily examine products and make quick choices as the shelves are adjacently placed. The average size makes clients believe that the store is well stocked, and as such, they get more inclined to continue shopping with Jo-Ann (Cox 25). The small store size also got facilitated by the desires that have been expressed in shopping trends as the current generations have preference for small but high-quality products.
h. Leveled Communication with Clients
Advancing technology has seen to the resentment of the manual communication techniques as such is considered as out of date, unimpressive and too complicated to use. In order to keep the link with customers and impress them by meeting their set standards and communication demands, the firm has adopted more modern technology for communication. For instance, text messages get sent to keep the clients updated on available coupons and deals. Instead of using the manual mails and fax to deliver receipts for transactions conducted online, Jo-Ann has also adopted the use emails, as they are a lot faster, and impressive. Communicating in a way that meets the customers’ interests portray the company as updated and open to changes.
i. Human Factor
At Jo-Ann, the advancing technology has not totally overridden the courteous responsibilities that the company bears towards its clienteles. A well trained, courteous and supportive staff is maintained by the company management to guide and assist the clients whenever necessary. Over the counter transactions also get conducted by humans. In so doing, the company has managed to maintain a rapport with their clients as the connection that gets created between the clients and the staff makes the clients feel valued. Through the communication between the staff and the customers, decisive and precise proposals are projected to assist the company improve the level of efficiency of their service delivery or even the capacity of the store.
III. Application of the Lewis Rules by Hobby Lobby (Jo-Ann’s Competitor) a. Store Size
The Hobby Lobby store is average in size, a factor that presents it with some of the advantages that is projected at the Jo-Ann. However, it is bigger in size compared to the Jo-Ann store and as such does not offer a comprehensive customer experience. Nonetheless, there are advantages that it enjoys from its significantly large structure. For instance, the store capacity means that it can accommodate more clients at the same moment. The ample size also means that it can accommodate more shelves and display space to appeal to the clients’ thirst for varied tastes. That explains why the company has discretely adopted the average size while avoiding the large sizes that would instead portray them as empty (Cox 25).
b. Facilitated Purchase Processes
Hobby Lobby is not left behind in the changes that have accompanied marketing and sales strategies as companies adopt the use of internet and handheld devices. The store has set up online social media marketing accounts inclusive of Facebook, Twitter, Instagram and Youtube as it attempts to keep up to date with the global changes. The company has also employed the use of text messages to facilitate advertisements, spread of information and the validation of the processes experienced by the stores. For instance, texts are sent to entice the clients with the changes that get implemented at any given time. The clients can also make inquiries about the available products and services by sending text messages to particular service numbers.
c. CSR
Corporate Responsibility is one factor that is adopted by most companies as they aspire to expand to identify with the community and participate in most aspects that affect the social welfare of their clients. However, it is the one factor that is not duly considered by the company up until recently when it faced a legal battle over the same. At Hobby Lobby, more preference is laid upon the aspects that should get used in making money, not giving it out. They consider CSR to be a sideshow and an engagement that is not connected to the financial aspirations of the company/business. As such, a close communal relationship between the store and the clients is not established and deprives the company of client loyalty.
d. Democratized Product Selection
Hobby Lobby has prioritized monetary value over client relationships and as such has not endeavored to provide services that favor the vulnerable/financially unstable among its list of clienteles. As such, quality products are only placed at the disposal of individuals who can afford them. That aspect has presented the store with the capacity to get the maximum value of their investments in the products. But in as much, it limits its capacity to reap from an extra population of clients who would be loyal to them. In that sense, Jo-Ann has an edge in the competition and benefits from the wider range of clients that it has developed through the creation of services like reduced bargain prices (Dart and Lewis 24).
e. Partnerships and Collaborations
Hobby Lobby partnered with other affiliated companies through which it endeavored to expand the scope of its businesses and clients. Through the partnerships and collaborations, it has managed to explore the ventures of other businesses beyond crafts and ordinary art . The firm has a partnership with Hemispheres stores that supplies furniture and other household products. Through the partnership, it has managed to incorporate art into furniture and such products. It also has a partnership with Mardel, a sister company that distributes Christian publications and products. Through the partnership, Hobby Lobby has explored the opportunities that get presented in the Christian market. For instance, it can supply the sister company with Christian paintings and crafts. However, the company’s partnerships do not present it with opportunities as lucrative as the partnerships secured by Jo-Ann.
f. Leveled Communication with Clients
Hobby Lobby, just like Jo-Ann, has made every attempt to keep up with the technological changes and advancements. It has abandoned the old manual mechanisms for the inconveniences that they cause and for the negative labels that they have earned. As such, it has adopted more efficient modern tools that have earned the liking of the clients in the market. For instance, it has employed the use of emails, social media and handheld gadgets over the manual faxes and letters. That aspect of communication has assisted the company to create a sense of identity with the customers because they feel that the company accommodates their demands and changes.
g. Human Factor
That is the other factor that the two companies in question have in common and also contributes to the stiffened competition between Hobby Lobby and Jo-Ann. Hobby Lobby has maintained human labor amidst the developments that have pushed firms to adapt technology over human labor. The human factor assists the company to maintain a gentle relationship with clients as they get to treat the clients with courtesy. The company has attendants and cashiers that guide the clients within the stores and oversee the purchase processes. Moreover, the security personnel at the entrances and exits provide a profound feeling for the clients. The level of confidence that is exhibited by clients justifies the companies’ action of maintaining human labor (Cox 44).
h. Creating a Motivated Experience
Hobby Lobby has not managed to create vivid experiences with which the clients identify with like in the Jo-Ann case. However, they have also made significant attempts that have factored to maintain a large clientele base. The company has also employed the use of descriptive quotes that label shelves and aim to inspire and artistic feeling and sense of identification with the customers. Labels like ‘Like You Never Knew It’ and ‘The Conceptualized Experience’ mark some shelves and serve to spur the interests of the customers (Dart and Lewis 18). However, they do not have a vivid connection to a slogan like in the Jo-Ann case and are hence deficient.
i. Product Customization
Hobby Lobby has a more advanced system that facilitates products customization. In fact, their application of the product customization satisfies the true meaning of the concept. Within the stores, customers are accorded the privilege of making requests for modification to be done on particular products to befit their interest. For instance, a client can make a request to have his name encrypted on a crafted key holder or necklace. Through such distinct customization, the stores have managed to earn the loyalty of several customers who have the preference to identify with quality (Cox 31).
IV. Recommendations to Jo-Ann a. Empty Shelves (Store Size)
The significant number of empty shelves within the Jo-Ann store projects the store as too large and inadequately stocked, a factor that might drive the clients to seek better-stocked stores. Idle shelves also portray the company as lacking in ideas that can be used to fulfill the intended capacity of the store. As such, the company should partake to reimaging their stores by committing the employees to conduct intensified turn over duties that would ensure that goods get steadily displayed on the shelves. That would also aid the company to capitalize on the high purchase rates that leave the shelves empty.
b. Changes within the Restroom (Creating a Motivated Experience)
The Jo-Ann restroom is marked with several shortfalls that taint the positive reputation that the firm has built as standardized, desirable and of high quality. There is an unpleasant smell that the company should eliminate by using deodorants and perfumes to make the rooms tolerable. The factor within the restrooms is the lack of creativity that fails to create the slightest of semblance with the business within the store. The store should hence apply the use of creative designs that would esthetically entice the clients to believe in the beyond ordinary abilities of the firm or the firms genuine interest in art. For instance, they can apply the use of attractively paint the walls and even add portraits that would be of interest to the clients.
c. Modification of the Company Website
Jo-Ann should modify their website to give some of the qualities of a social media site in which clients gets registered. They would then connect to their clients with ease and use the internet effectively as a tool that can facilitate the purchase processes in a different dimension. Through the website, it would also be easy to keep track of the precise location of the clients, or keep a record of the areas in which they have the most number of clients. As such, opening of branches, or launching promotion campaigns would be easy and comprehensive.
d. More Staffs (Human Factor)
There are not as many personnel within the store as would be expected of such a highly rated store. That factor slows down the speed of service delivery and creates congestion thus limiting the full potential of the store (Cox 41). Some clients have expressed dissatisfaction as they are not served on a timely basis. For instance, one client had to wait for considerable time to get a purchased material cut. More staff members would increase the fluency of service delivery and guarantee client satisfaction. Moreover, they would facilitate the level of assistance that the clients should receive (Cox 41).
e. Product Customization
The company should consider implementing a more advanced system of product customization like in the Hobby Lobby case. In that sense, clients would get to make request on the way they desire their products to get customized (Dart and Lewis 33). The result would be a more connected feeling with the product that would inspire loyalty within the customer base. Advanced product customization would also inspire the clients to spend cash willfully on the products that are showcased by the company, and thus raise the accrued financial benefits. The concepts should engage the clients to make them feel a part of the customization process. This factor would guarantee client satisfaction with customized products.
f. Partnership with Charitable Organizations
Jo-Ann has several partnerships with commercial companies with which they serve to explore the benefits of commerce. However, it should also endeavor to partner with charitable organizations to intensify its engagement with the community. The factor would facilitate its CSR and add more credit to the charitable competitions that it already holds (Dart and Lewis 18). An intensified engagement with the community would be a marketing tool, as many would get to know and respect the company while several others would desire to identify with them. That aspect of CSR would ensure that the company can manipulate the market trends within the locality to its favor (Dart and Lewis 20).
g. Creating Communication Links with the Clients
In as much as using the same primary tools as used by the clients creates a sense of identity, there are inadequacies that the company commits but that can get bridged. For instance, the company should use the social media pages to follow their registered clients as that would create a feeling of value and respect within the customer base. Moreover, it would keep them updated on posts that get made about them on the social web pages and as such get to know their achievements, as well as underachievement (Cox 44). That aspect would also inspire communication beyond the transactions that get conducted between the company and the clients.
h. Ten% Discount for Disabled Individuals
Jo-Ann has expressed concern for the low-income earners within the society. However, they would facilitate the process further by opening the discount program even to their disabled clients. Creating a sense of identity and understanding for the disabled would label the company as caring. It would hence become the preferred retail center among activists and sympathizers, thus expanding its clientele base. The discount for the disabled would attract attention and can hence get used as a marketing strategy to outcompete rivals and expand the customer base. Though it is a democratized product selection process, the endeavor would even fortify the CSR responsibilities of the firm (Dart and Lewis 20).
V. Conclusion
The ability to outcompete rivals depends on the choice and applicability of the Robin Lewis New Retailing Rules that a firm endeavors to use in defining their marketing structure. A candid application of the rules as is demonstrated by Jo-Ann Fabrics and Craft Store also projects an aggressive desire to achieve and maintain dominance in the market.
Works Cited
Cox, Emmett. Retail Analytics: The Secret Weapon. Hoboken, N.J: Wiley, 2012. Print.
Dart, Michael, and Robin Lewis. The New Rules of Retail: Competing in the World’s Toughest Marketplace. New York: St. Martin’s Press, 2014. Print.
