Business Model of Logo Eye Care optical shop
Discuss about the Marketing Retail Management.
“Logo eye care” has recently started its business of retailing optical grade eyewear to the consumers in Singapore. Their mission is to provide high quality eyewear at a economical rate. The main aim of the shop is to create its own identity in the retail market. Current generation is more focused on buying goods online. In such a global competition they are focused on providing a great experience to its customers by continuously focusing on the lower market segment. The retail outlet is established at a very low budget. Most of the resources of the organizations are bought on loan. The shop is allocated at one of the most crowded place in Singapore to attract maximum customers. The policy of the shop is to attract the customers by providing quick service. They are focusing on building a comprehensive system to provide a quick service ( Longenecker. et al.2013). Customers are mostly attracted to the places where they are getting a quick service. Logo eye care is focused on developing goods at a cheaper rate to attract customers. Initial policy includes discount coupons to the customers to create the brand awareness. There is a lot of competition from the local and the international brand. It is highly recommended that the brand should focus on initial development and stabilization. This will help the brand to grow under the diverse atmosphere. Competitive strategies should be based on the international standards to compete in this advanced scenario. Primary plan includes selling the product through retail outlet. Later the shop has plans to expand its business by channelizing business across the border. They believe in selling fashion accessory rather than a medical devise to sustain the changing environment. Their strategy involves keeping a low price to increase the sale. It involves spreading the brand name through various marketing channels like advertisement in newspaper, local channel, pamphlets etc. Their goal is to provide an easy accessibility and affordability. It is seen that the market is undeveloped and there is a need to develop initial sales volume. Logo’s business philosophy is to sell goods in a fun manner. Their vision is to breakaway the traditional concept of medical device. They are focusing on creating itself as a fashionable modern accessory instead of a medical device. Their product will be created in a variety of design and colors to break the conventional approach. It has a plan to go online after seeing the current market scenario ( Paley.2006). The target market includes men and women. It includes individual from different age group. There is a long term growth in the industry under the variable circumstances. The long term plan includes diversifying into other market like watches, sunglasses etc (Stasch.2010) (Lin.2016).
Strategies for targeting customers
The Euromonitor report has mentioned clearly that 40 percent of the Singaporeans are myopic and there will be a constant need of optical shops. CBD is the most crowded area present in all over Singapore. It is the shopping hub for the local and the international customers. The area is surrounded by the Singapore River and Marina Bay which attract maximum amount of crowd. It is the most densely populated area of Singapore with a mix of commercial and residential developments. The area is connected properly through the public transport system. The current strategy is based on sustainable development with the available resources. Men and women are continuously looking for a way to look good. Earlier the glasses considered to be overly brainy. Today, glasses have evolved as a fashion statement for those who need them. As per the recent research there is a growth in interest in using glasses to adjust look. The central business district is a business hub which will open ample of opportunities for the entrepreneur. Although the rental cost at CBD is very high but it can be recovered easily by developing a serious business strategies. Firstly the entrepreneur should try to find a rental accommodation at an area outside CBD. It is recommended to include a partner to stimulate the investment. Rent at CBD is very high which will create a burden on the entrepreneur. There is a need to make systematic arrangements regarding the initial investments which are required at a first year. Strategic investments are essential to receive the maximum profits in an initial year. Location choice depends upon the total number of customers travelling in the particular area. It will help the entrepreneur to retrieve the maximum benefit. CBD provides ample of opportunity to the entrepreneurs to open various business units. Location is a most important factor which affects initial set up of a retail store. Poor location decisions are fatal for a business. Small entrepreneurs are spending a large amount of sum to choose a best site for their business. Limited resources are one of the factors which affect the location choice. The choice of the location depends upon the number of pediatrician and vehicles travel through that area. High visibility and availability of nearest target market is essential to set up a business. However the location choice is more expensive than the initial capital investment. The large amount of investment is made on choosing the best location. CBD is one of the over expensive area. Cost of leasing a shop is higher than the entire capital of the business. Small ventures cannot afford an expensive location. Hence it is recommended to keep a list of secondary sites whose rental is lower than the CBD. Secondary location will help in resolving the purpose of the entrepreneur. He can save the initial investments made in the business.
Capturing market share from established brands
A new business has sufficient capital. They have limited resources to pull off the investments from the market. The sale of a business depends upon the resources which are held by the entrepreneur. It is recommended to make a systematic arrangement of investments as it largely affects the future of the business. Most of the people do not trust unknown brands. It is recommended to strive on the brand value in the initial year to procure maximum benefit. The entrepreneur must try to find out a place with least competition. He should conduct a market research to find the trends. Studying the market location will help the entrepreneur to grow without any boundaries (Bragg & Bragg.2005). Entrepreneur should avoid the places which are already acquired by the multinational brands. They should try to avoid such a situation which can pose threat. Customers are mostly inclined towards the brands rather than a new product. Customers rarely switch to other brand. It is recommended to study the consumer behavior of the local market. Market penetration is essential in the recent year to enter into the market. The seller should use those techniques which would help in establishing him in the initial year. Consumers are more aware about the products. They strive for a product which are available at a low cost and serve every utility (Hougaard.2006). Sellers are using various techniques to attract customers. They are providing a very quick service so that the customers do not get a chance to switch to other brand. Personal circumstance affects the choice of the location. In case of small business the entrepreneur chooses a location near to his whereabouts. The main purpose behind choosing a nearby location is an approximate availability. Small business organization should focus choosing a considerably a cheap place which serve all the purpose in an organization. New business strategy focuses on the opportunities which are available to meet the requirements in a business. The entrepreneur should not overlook the responsibilities which are mandatory to be fulfilled. A business plan focuses on the opportunities while choosing the business. The eye wear market is already occupied with the international business organizations. They are meeting the entire requirement which a small business organization cannot meet. International eye care organizations are established on high standards ( Kyle.2008). They are easily focusing on the entire market place through their strategy. Every organization is trying to diversify its project as per the requirements of the current market. Small optical shops are facing a harsh competition by the presence of the international eye care brands. Making an eye care devices at a small place is convenient for the customers rather than big showrooms. An old optical company Nanyang Optical is renewing their old business plan to compete with the international brands ( Laulajainen, & Stafford .2013). International brand are providing quick services which is posing a threat on the existing business organizations. Under such a competitive atmosphere, it is recommended to renew the existing policies to achieve the desired growth. New business organizations should focus on establishing high standards to hold the interest of the customers. The only way to achieve customer attention is through customer satisfaction and feedback. Customers are mostly attractive towards places where they get product at a cheaper rate and very easily. The entrepreneur must focus on services which help in achievement of target. Location related decisions are essential for the long term benefit of an organization. Hence he should utilize his resources carefully before taking any future investment decision. All the decision must be taken only after thorough study of the local market to avoid future discrepancy ( Aswathappa.2005).
Expansion plans in other product categories
Pricing policy plays a key role in managing a business plan. An entrepreneur should plan all his business keeping in mind the pricing decision. The fate of the small business depends upon the profit margin. Business owners should ensure profitability by paying close attention to the pricing policies. They should try to focus on the lower profit margin at an initial stage to grab the attention of maximum consumers. Pricing policies should be established on the basis of the competitors. It is very difficult for a business to focus on the pricing policies. The companies with the lowest price win the business mode. The entrepreneur has to analyze the current market condition by studying the consumer behavior. However lower price doesn’t provides a strong position to the small entrepreneur (Smith.2011). Large competitor has a potential to destroy the small traders as they have lower operational cost. Entrepreneur must see the current market by examining the competitors. He should focus on the whole package rather than the price of the product. They should focus on providing a value added services to reduce the competition. The entrepreneur should focus on keeping a competitive price by checking the ceiling price. The seller should take an advice through the surveys to study the market behavior (Schindler.2011).
The small seller should keep a price lesser than the existing competitors in the market. He should keep a price equivalent to the current market price of the product. There is already high level of competition which is causing a threat to the small businessman. Under such a condition it is recommended to keep the completive prices. Value added services help the seller to distinguish its market price from the existing competitors. Under such a competitive atmosphere a seller should focus on encouraging a strong pricing technique to seek the attention of the customers. Future strategies may include branding of the product as large number of customers is attracted towards the brand name (Mills.2002). The seller should encourage after sale services which will help in providing an added advantage. Exclusivity is an important feature a seller should encourage to meet the requirements of the customers.” Hazel eye care” is a small business enterprise which is posing a threat to the existing business provider. The pricing policies should be more competitive. They should involve all the requite pints which a new business enterprise requires. It should focus on developing a competitive atmosphere by keeping the competitive price as per the surrounding business (Volm.2002).
Customer interaction is very essential for a business to meet the required business goals. Customer’s feedback is important for a business to grow. In case of small business it is essential to take care of their preferences while meeting the desired goals. In a highly completive atmosphere it is recommended to work in coordination with the customers while meeting the required goal. Interaction with customers helps in meeting the desired goal. This help in building a better understanding with the customers (Sullivan & Adcock.2002).
Promotional mix is related to the decision of sales of products and services. The important decision related to the promotion depends upon the size of the business. It is essential to choose a relevant business model to develop healthy relations with the customers. There are various tools which help in promoting business. These are generally adopted by the firms to carry the promotional activities. A seller ma chooses combination of tools to meet the needs of the business. Advertising is the most convenient form of promotion. Here logo eye care can choose a paid advertisement technique to promote the basic idea of the business to the consumers ( Mullin & Cummins.2008). It is an impersonal form of method where the seller tells the consumer about the basic information related to the product. He has an option to promote his product through the local distribution channel. Newspaper advertisement is an easier and convenient way to propagate the idea of the business. An attractive advertisement tries to pull attention of the customers by directly appealing to the target customer. Media has a direct effect on the mind of the customer. Promotional technique helps in spreading the idea of the business in an easy manner. There are fewer resources with the entrepreneur. It is recommended to invest minimum resources on the advertisement. Customer feedbacks are important than the advertisement at an initial stage. He should rather focus his resources on limited places. Diversifying resources at various places are harmful for the business ( Lamb,Hair & McDaniel.2010).
Another technique is sales promotion. It is an attractive technique to attain customer attention. This help in increasing an immediate sale. Discount at an initial level helps in attracting maximum customers. This is one of the most common techniques used by the entrepreneur to raise the overall sale. Logo eye care should use both the tools very efficiently to procure the maximum result within the stipulated time (Solomon.2009).
Customers are mostly attracted towards the goods where they get a huge discount. Logo should build comprehensive promotional mix strategies to retrieve the maximum result. He should keep a lower advertisement cost which would not put the burden on the price of the goods. The promotional strategies should be cost efficient.
There should be a minimum investment in the promotional technique. The seller in the given situation has minimum resources. He should strive on using the resources efficiently to retrieve the desired result. The prime focus of t he business at an initial level is sustainable growth. It is recommended that he should try to build the brand name considering the threats in the market. Online promotion is a new technique which is used to attract a large number of customers. Customers are more inclined towards the online reviews given by the various customers.
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