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CONTENTS PAGE CASE STUDY- Isetan Singapore (Scotts) 1a)Description and evaluation of target market, product assortment, store atmosphere and store activities/experiences…………………………………………….. 3 b)Product map for the Isetan to illustrate its market profile. Two product lines (Men’s Apparels, Golf Equipments) Three competitors (Tangs, Takashimaya, John Little, Keppel Club, Liang Court) Two attributes (Price & Quality), (Service & Availability)……………………………….. 7 2.
Integrated Marketing Communications Implementation………………………………………… 9 3. Recommendation of four new marketing mix developments. (Price, Place, Promotion, and Product)……………………………………………………………….. 11 A. References ……………………………………………………………………………………….. 14 Question 1a) The Isetan Group started trading in Singapore on 31 January 1971 after which they made history in 1972 by being the first Japanese department store in Singapore at Havelock.
Today they operate four stores and a stand-alone Mango boutique, strategically located across the island and catering to a wide spectrum of customers. Successfully located from Isetan Havelock to Shaw House in 1993, Isetan Scotts is a full line department store that caters to shoppers from all walks of life. In 2000, Isetan began operating its first full-scale supermarket located at the basement. (The Isetan Singapore, 2007 & 2008, Annual Report, Online) When Isetan first started out in the early 1970s, it was clearly seen that they are trying to target into the hearts of Singaporeans with Japanese products.
Having the foresight of the potential market for the future premier shopping belt, the flagship store was shifted to Orchard Road from Havelock Road. They had their market target set on the tourists along with consumers, mainly targeted at women, (highlights in the later part) who have higher purchasing power and are more style savvy. Having to first introduced Mango, (the internationally famous multinational which designs, manufactures and markets women’s and men’s clothing and accessories) into Singapore, Isetan clearly prudence the prospective fashion trend available for this unknown brand then.
Isetan focus towards medium to high-income & price-sensitive consumers, zooming into the different prospects obtainable. Launching its very own in-house credit card, the Isetan Credit Card (ICC), consumers with a minimum income of $20,000 per annum, age 21 and above can apply. Members are entitled to 30 days’ interest-free credit term, along with a maximum of three supplementary cards for their immediate family members above age 18. Discounts of up to 5% for purchases are given, including dining in the restaurants located in Isetan Scotts at the fourth level.
They saw the likelihood of the ever-increasing number of young working adults and growing influence of spending power the teenagers has on their parents nowadays. Isetan Scotts occupies five levels of Shaw House along with its Japanese supermarket at the basement. The supermarket with its emphasis on high quality Japanese products is especially popular, offering Japanese lifestyle concepts to the Singapore market through various food festivals.
The Japanese supermarket introduces not only food delicacies from the Land of Rising Sun but also holds events like the current Swiss Fair to introduce food products and fresh food from Switzerland. The Isetan group does not restrict themselves only to promoting Japanese products but foresees the opportunities to bring in and promote products coming from other regions. The product assortment in Isetan Scotts matches with its target market’s shopping expectations.
Isetan Scotts not only cater shoppers with the convenience of grocery shopping at the basement, but also offers them a variety of merchandise on the next four levels of the mall. The store boasts a wide collection of international fashion designer lines, cosmetics and family-oriented merchandise catering to the local and tourist markets. With commodities ranging from international brands of cosmetics, fragrances, ladies’ accessories on the first two levels, following men’s apparels and sports apparels on the third level; to household items, children and expecting mothers’ apparels on the fourth.
Out of the four levels of the shopping mall, two levels are specially catered to the likes of ladies, not forgetting the sports section at the third level which offers ladies’ sports apparels and the fourth level which too. The first level presents a wide variety of ladies’ apparels, costume jewellery, international brands like Celine, Chanel, Christian Dior, Coach, Fendi, Loewe, Salvatore Ferragamo accessories, Polo Ralph Lauren’s collection to affordable accessories from bags, shoes to various accessories of rings, necklaces, earrings, etc.
The latest appendage of international fashion at the second level is the local designer, All Dressed Up section exclusively at the second level. With immense success from its inaugural launch collection in 2005, it has steadily achieved its objectives through marketing and distributing its seasonal collections internationally. (www. alldressedup. com) Other than the two stand alone boutiques locations at Paragon Singapore and ION Orchard, All Dressed Up can be found only in Isetan Scotts, nowhere in other department stores.
With the recent revamped of Men’s section at the third level in 2008, it now focus on targeting the likes of men, introducing international brands like Agnes B Homme, Calvin Klein, Levi’s, Polo Jeans, Springfield and Timberland, and exclusive brands only available in Isetan Scotts, Croquis, HE by Mango, Rossi, Morpho, Oro Bianco, A. I. P. (An American in Paris).
Designed for the new age cosmopolitan men with sharp sartorial senses who appreciate the finer touches of quality merchandise, the new Isetan Men’s @ Isetan Scotts caters to the different aspects of their lifestyles, from business to leisure to sports. (www. isetan. com. sg) Delicate services are provided to the men, with staff trained in both shirt measurement and shoe fitting, ensuring that customers get the most flattering fit across all the brands available at Isetan Men’s.
There are several entrances into Isetan Scotts, making no miss to the brands available at all levels. The direct entrance at basement level brings consumers directly to the supermarket and a bakery on their left, or to proceeds to the right for chic fast food restaurants, MOS Burger and Pepper Lunch, also not forgetting McCafe, that is located at the dome shape area right outside. The left side entrance when facing Shaw House at ground level allows a full view of the sophisticated brands of accessories and bags.
The right entrance linking from Shaw Centre brings consumers straight into the haven of cosmetics, skincare products like SK II. etc. The main entrance leads consumers into the beauty session, with MAC on the left and Bobby Brown on the right. There are three escalators located within Shaw House, one that allow consumers to proceed from the basement level all the way up to the fourth level, which falls on the inner side of Isetan Scotts, to which they would have to go round each level before they are able to proceed to the next level.
Another escalator is located within level 1 right beside Origins-Powered by Nature, Proven by Science, bringing the consumers to the next level, not without passing by Laura Ashley and Marc by Marc. Lastly, the stretched escalator from the ground level that links directly to the third level, and continues on the third level which leads to the fifth level where the cinema is located. Though conveniently designed for patrons going straight for the movies, they would not be given a chance to overlook the promotions or brands available in Isetan Scotts at every level.
The structure of Shaw House, a clear round structure at the heart of the main escalator allows the consumers to have obvious view at the international brands, restaurants on the respective levels, the Promotion Gallery on the third level and what’s new and hot at the Event Hall on the fourth level. Clear lightings are lit throughout the whole store making it impossible to see anything at a glance, the sign boards of the respective brands are well positioned enough not to be missed from any corner.
The fourth level is clearly divided into the household section, with tableware, kitchenware, home appliances, etc, clearly positioned on one side and the children’s section, clothing, toys, electronic game section located on the other side along with the famous Hello Kitty merchandises and an exclusive stationery section which offers kawaii Japanese stationeries. Other than promotion events and Japan fairs that they held regularly, Isetan does not forget special holiday’s seasons like Halloween, celebrated annually on the 31st of October.
A special Halloween section was designed at the fourth level right beside the inner escalator between the household items and toys section. Special demonstrations of household appliances are available at the household departments, where you can see and feel for yourself the sharpness of the knives collections at the kitchenware section, or smell the fragrance from the air fresher that clears any polluted air, or feel the softness of the exclusive bed sheets at the bedroom section.
Right at the main entrance, joint events with cosmetics, beauty skincare products, can be seen, where consumers are given a chance to have makeovers by elite makeup artists. Both the Event Hall and Promotion Gallery holds regular price appealing offers to yearn for. Consumers are always given the chance to see, feel, taste and smell for themselves true to what Isetan Singapore has promised and states in their vision, “Only by sharing with others – our feelings, our ideas, and our joy – can we create new and better lifestyles for tomorrow. ” (1436 words) Question 1b)
GOLF EQUIPMENTS & APPARELS MEN’S SECTION Perceived quality appears to be associated consistently with high prestige stores, high prices, and physical attributes of products such as colour. Consumer income and educational level also affect perceptions of quality. These consumer demographic characteristics interact with each other and with the marketing mix in a complex manner. Isetan Scotts offers exclusively range of men’s wear, intimate and accessories, all out to create a shopping paradise for the new age men after the total makeover in November 2008.
Looking at the competitors involved, Tangs, Takashimaya and John Little offers men’s wear too. But comparing the service and exclusivity of the ranges provided by Tangs, it stands in a strong position in the market, with their wide range of brands available. John Little’s men section normally provides the consumers the mentality of self service is better, as the clothing are packed in racks for convenient searching.
Looking at the range of golf apparels and equipment available, Isetan has a higher wide positioning in the market. Like Takashimaya, they have the stimulator available for the golfers to work their swing. Isetan Scotts is well known for its Golf sale occasionally among golfers, who are looking for an affordable pricing for expensive golf equipments. Other than the two Japanese department stores, golf equipments are probably available only at golf clubs like Keppel Club. (220 words) Question 2
Integrated Marketing Communications (IMC) is a process which involves the management and organization of all “agents” in the analysis, planning, implementation and control of all marketing communications contacts, media, messages and promotional tools focused at selected target audiences in such a way as to derive the greatest enhancement and coherence of marketing communications effort in achieving predetermined product and corporate marketing communications objectives (Pickton & Broderick, 2005, p26).
IMC is a straightforward concept, where it makes certain that all forms of communications and messages, which are the promotional tools, so that are carefully linked together in synchronization to establish a bridge from the brand image to the consumers. The marketing communication mix consists of six major modes of communication; advertising, sales promotion, events and experiences, public relations and publicity, direct marketing and personal selling. (P. Kotler et al, 2009, p392). Isetan Scotts has successful implemented the IMC into their daily operations, with regular sales promotion for a period of 5-10 days.
For instance, the current Sports Fever promotion, showcasing of various ranges of sports gear, apparels and equipments. Activities and events are held in conjunction with the promotion, where national soccer players are invited for an autograph session, not forgetting a soccer clinic session, allowing children aged 8-12 to be coached on the basics of soccer game. They have successfully gained the attention of the consumers with numerous in house activities, including a distinct invitation for them to participant into the events.
Not forgetting the frequent Isetan Sales, a day of closed door events, entitling only members, accompanying by no more than 2 guests to have exclusive entry to enjoy low offers, where queues into the store was seen as early as an hour before the door is opened. In the early 1980s and 1990s, Isetan had participated and sponsored in a number of events. They sponsored Singapore’s 25th National Day Book to share its commitment in pursue of excellence. As part of the Isetan’s 25th anniversary, they had sponsored Singapore’s third sitcom then, “Can I Help You? And during 1998, Isetan was the proud sponsor of this amazing debut, “Isetan, A Summer Story” showing on the then Channel Premier 12. They had created a different path, the ability to catch consumers in a different channel, probably not from shopping experiences, but right from their home, where they were least on guard. Isetan Scotts sends Newsletters on a fortnightly basis to its consumers, highlighting the upcoming events, promotions along with irresistible coupons offers. The direct marketing allows them to update the consumers on the happenings of the store.
The Newsletters are also sent through emails address of the consumers for easy forwarding to other parties. The internet service is becoming significant channel of advertising and brings along a whole new meaning to word-of-mouth marketing. Other than talking to each other through the phone, or in person, consumers have started interacting on line, through instant messaging channels. Short message services (SMS) are also sent to the consumers’ mobile phones to create an up-to-date awareness. This brings about the quick and convenience way for consumers to inform their friends or family just by forwarding the SMS.
Isetan Scotts does not neglect the traditional marketing tool of personal selling, as seen by the figures of sales personnel in the store for the respective brands and sections. Their smiles and services elicit personal interaction between the consumers whom may have no intentions of purchasing for example, unsought goods. Personal selling builds up the buyer’s preference, conviction and action and the most effective tool at later stage of buying process, the ultimate tool in closing the deal. (601 words) Question 3
With the current economic environment, the retail scene in Singapore has become even more competitive. In an increasingly competitive and transnational arena, companies will have to ponder more and more about not just an offering that is different or better, but one that is an expression of Marketing Insight. (S. Ramachander, 2009) Constant improvement has to be integrated into the operations. Looking into the Product, Pricing, Place and Promotion aspects (the marketing mix developments), Isetan can go into improvising the product assortment and service strategies for its children’s section.
Other than the available toys, clothing, expectancy mothers’ clothing and infant apparels, they can also consider bringing in innovation, education books or toys from Japan or other regions to development the growth of the young generation. Considering the possibilities, there is an interaction corner where by toddlers are well taken care of, through education corner of books, or “playground”. Isetan can also consider having joint events with clinics or hospitals to hold classes for expecting mothers to have a better understanding of themselves and their babies at the interaction corner.
And a mini cafe corner suitable for the whole family, the parents enjoying coffee while their kids are enjoying themselves with other kids under one or more adults’ supervision. The parents may consider leaving the kids there while they enjoy their moment of time around the store. By creating this improvement to develop the children’s section, it positions Isetan Scotts to be on par, or closer market level with department stores already having such facilities. Parents would consider this their first choice for a true shopping paradise for the whole family.
Creating a store atmosphere for anyone and everyone can be challenging. Isetan might consider looking into the necessary facilities for the handicapped group. There are currently no proper facilities convenient within the store for the handicaps. Their family members while considering the fact that they need to get some products exclusive in Isetan Scotts, would still restraint themselves from going to Isetan, to the main fact of inconvenience. Though there are lifts located in Isetan Scotts, but they are not prominent enough for the consumers to consider taking the lifts.
Another consideration is to have an online purchase service. The e-buying process is the latest trend whereby consumers purchase their orders with a click of the mouse and have them delivered to their doorsteps. That will be a convenience for consumers who are not able to proceed to the store physically. This conveying an extra sales channel, with variety of products shown on the website for purchases. Consumers might even find products they have never seen at the store, but they will be able to find everything at their own pace of time.
Developing the website is a critical act, as the internet plays an important role for another massive target market. The website might consider a page for interested consumers to register for the mailing lists, so as to updated of the latest promotions and news in the stores, for example the development of the New Isetan located at Serangoon Central. Residents staying around the area would want to know the insights of the store right at their sub-urban area. In views of the current global warming situation, it is time to play a part in this environmental project.
Isetan can promote the importance of being environmentally friendly to the earth; bring your own groceries/carrier bag to carry your purchases, and discounts off the purchase, in conjunction, Isetan can introduce their very own in house groceries/carrier bags in the apparels section to create the awareness of saving earth. After which, joint events with brands can be developed for promotion pricing. Developments of the save the earth campaign can be primed as an annual event, further enhancement can be made to the event, in which exchanging their old products, toys, entitles discounts or promising products in return.
Isetan can teach the younger generation the importance of saving the earth, with activities involving their favourite cartoon characters, Hello Kitty for instance, to educate them, acquire them to bring along old toys for the charity, have mini visits to the charity association. The younger generation holds the key to the future of the Earth. (701 words) AREFERENCES 1. Kotler, P. , Keller, K. E, Ang, S. H. , Leong, S. M. , Tan, C. T. , (2009), Marketing Management an Asian perspective, 5th Edition, Prentice Hall, Singapore 2. MKT203 Marketing Mix Management Study Guide, (2010), 2nd Edition, Pearson Education South Asia, Singapore . The Isetan Singapore, 2009 Available at: http://www. isetan. com. sg/index. jsp (Accessed 16th October 2009) 4. The Isetan Singapore, (123 years of Excellence, Newsletter) Available at: http://www. isetan. com. sg/newsletter/index. jsp? newsletter=123 (Accessed 16th October 2009) 5. The Isetan Singapore, 2007 & 2008. Annual Report (Online) Available at: http://www. sgx. com/wps/portal/marketplace/mp-en/listed_companies_info/annual_reports_financial_reports (Accessed 16th October 2009) 6. Mango, 2009, Behind the Brand Available at: http://mango. com/oi/index. html (Accessed 17th October 2009) 7.
All Dressed Up, 2009, Profile/ Brand Story Available at: http://www. alldressedup. com/index_Main. php#/Profile/Brand-Story (Accessed 17th October 2009) 8. What is IMC? (Article) Available at: http://www. multimediamarketing. com/mkc/marketingcommunications/ (Accessed 24th October 2009) 9. David Pickton and Amanda Broderick (2005), Integrated Marketing Communications, 2nd Edition 10. Integrated marketing as management of holistic consumer experience (Online) Business Horizons, Volume 48, Issue 5, September-October 2005, Pages 431-441 Shu-pei Tsai (Accessed 17th October 2009) Available at: http://www. nisim. edu. sg 11. The Effects of Price, Store Image, and Product and Respondent Characteristics on Perceptions of Quality, Journal of Marketing Research, Vol. 14, No. 2 (May, 1977), pp. 181-186 John J. Wheatley and John S. Y. Chiu (Online) by: American Marketing Association Available at: http://www. jstor. org/stable/3150467 (Accessed 17th October 2009) 12. Journal of Business Research 58 (2005) 1112??? 1120 Recapturing store image in customer-based store equity:a construct conceptualization Katherine B. Hartman*, Rosann L. Spiro1 Available at: http://www. unisim. edu. sg (Accessed 24th October 2009) 3. The Concept of Marketing Insight: Linking Innovation to Business Goals S. Ramachander, Director Academy for Management Excellence (ACME) Division of Institute for Financial Management & Research Chennai, INDIA (Accessed 24th October 2009) ———————– A B A C Availability – Exclusive Medium High Low C C Low B A A A Medium D C Service High Quality Legend: A: Isetan ScottsB: Keppel ClubC: TakashimayaD: Liang Court (For Golf Equipments & Apparels) A: Isetan ScottsB: TangsC: TakashimayaD: John Little (For Men’s Clothing) Medium High Low C Low B D D Medium A D A D Price D High B