Semester exam work focused on raising the quality of Collective concept store and drive their sales through customer interactions.

1. Concept store
Andrij Prjazevskyj

2. Content of presentation
• Description of „Collective“
• Problem statement
• Defining target group
• Analyzing the needs of target group
• Analyze of competition and concept strenght
• Suggestions for improvements
• Sources

3. Collective
• Showroom/concept store located in Copenhagen
• SMS – service for members
• Presenting multiple brands
Woman brand established 2006 Lifestyle brand established 1999 Woman brand established 2010
Fashion brand established 2006 Parfume brand established 2006 Lifestyle magazine established 1996

4. Problem statement
Concept store is based on building connection with customer
and providing them with pleasant expirience from
shopping/using their service.
Success of Concept store is driven by their ability to understand
the customer needs and adjust accordingly.
Therefore the main question at hand is.
How can “Collective” ensure quality experience for customers

5. Target group
• Generation X and Y (women 20 -40 years old)
• Middle to high income level
• Simplistic attitude
• Interested in modern Scandinavian designs
• Fashion oriented and driven by ambition in life
• Partnered however rarely with children

6. Understand customer needs
Your opinion
matters to us,
please hold…
… in the meantime
enjoy this 40 minute
flute solo.

7. CBBE Pyramid
Resonance
Judgment Feeling
Performance Imagery
Salience
Source: Keller, K.L. (2002), Strategic brand management;
building, measuring and managing brand equity.

8. CBBE model
• Performance
Service not percieved as benefitial by customer.
Collection of data seems as intrusion of privacy.
Notifications mostly bother and annoy customer.
• Judgment
Memberships create negative image of inclusivnes.
SMS - based service strikes as oposite of non-innovative.
If customer involfment is low them might choose competition.
• Resonance
Possibility of concept backfire at brand.
Can cause declining customer base which don't want to become
members.
Low brand attachment for certain customers.

9. 4 P‘s
Source: McCarthy, Jerome E. (1964). Basic Marketing. A Managerial
Approach. Homewood, IL: Irwin.
Product/Service
Low branding of service mainly
through Facebook and by word of
mouth.
Differentiated from competitors by
shear accessibility level.
No special features appart SMS
texting.
Price
High price for fashion however
customer is not price sensitive.
Lots of price promotions and sales for
customers with high income isn’t
priority.
Various opinions about value of the
service depending on customer
involvement.

10. Gap model
• Knowledge gap
Customer expects to have personalized approach
Store provides only information on request of customer
• Standard gap
Customers can get easily annoyed by constant notifications from sote
Being reminded at all times of benefits that membership seems too
enforcing
• Delivery gap
Standard of unrivalled customer service promised is replaced by simple
news.
• Communication gap
Service promises to include customer into the development of fashion
market and their store.
Provides only notifications about upcoming promotions and events.
Source:Boundless. “The Gap Model.” Boundless Marketing.
Boundless, 26 May. 2016.

11. Know the competition
„It's competition that forces companies
to get out of their complacency.„
John Mackey, co-CEO
of Whole foods

12. Points of parity and difference
Source: The principle of positioning Kevin Lane Keller and
Alice Tybout, Market Leader, Issue 19, Winter 2002, pp.65
POP
Elaborate replica of other
subscription based services
Webstore and showrooms used
by other stores aswell
POD
„Non-stop“ cotact with store
Low bureaucracy when
handling complaints
Personal approach

13. Porters five forces
• Competitive Rivalry
High ammount of similarly looking stores
Success driven solely by the quality of their service.
• Threat of Substitution
High possibility of appearance of similar digitalized concepts
Customers likely to switch to competition.
• Threat of New Entry
High risk of being copied by other brands
Important to ensure constant innovation.
Source: Michael E. Porter, The five competitive forces
that shape strategy (HBR – 2008)

14. Retail concept model
Vision/Mission
Take our customer to a new level
through specially designed social
media platform.
Situation analysis
low familiarity of the store existance,
underdevoloped concept, high
threat of competition
Check
target group matches by fashion
need, service lacks features
customer desires
Concept objectives
connect customer with store and
development processes
Strategic objectives
gain recognition, improve concept,
outlook on competition moves
Tactical objectives
market using Omni-channel, word
of mouth, evaluate service
performence
Operational objectives
increase activity on social media
and recall of concept among people
Source:Pelle Ivan Olsen, 25 May, 2016, The management
and Economy of the Retail store – Lesson 2

15. Improvements
Improve our
business?
What a splendid
idea Sir… Indeed
How do we
proceed?

16. Concept store imperatives according to
James Allen‘s 3 D‘s
Bain&Company survey reveals that customers believe that only
8% of companies deliver superior expirience. This elite pursue 3
imperatives.
• Design the right offers and expirience
• Deliver those propositions
• Develop the capabilities to repeat and inovate
Source: "Tuning In to the Voice of Your Customer," Harvard
Management Update, Vol. 10, No. 10, October 2005.

17. Right offers
• Trial membership for customers.
• Meeting for active members with
disscusion, refreshments, present for
attendance (e.g. Small accesory, scarf, gift
card)
• Opening parties for new collections where
members can bring one guest
• Group chat with members – connecting the
network on semi-formal level
• Customizable notifications system

18. Delivering propositions
• Launch the service on internet based chat apps e.g. WhatsApp,
Viber, Line
• Create webpage account based system with members info and
customization options
• Devise a schedule plan with number of member events throughout
the 3 months period.
Source:
https://play.google.com/store/apps/deta
ils?id=com.whatsapp

19. Repeat and innovate
• Regular survey about satisfaction with store offers
• Ask active members personally for suggestions for new
events/promotions
• Net promoter score for analysis of brand growth and satisfaction among
customers

20. Sources
• http://stinegoya.com/pages/about
• https://www.whyred.com/about-whyred/
• http://secondfemale.dk/second-female/
• http://justfemale.com/just-female
• http://www.escentric.com/
• https://en.wikipedia.org/wiki/Wallpaper_(magazine)
• http://secondfemale.com/media/igallery/l/o/lookbook_sf_spring_20
16_low_24_1.jpg
• Pictures source: Internet