INTRODUCTION
Marketing
mix is an essential part of marketing a business. In nutshell, it includes
product, place, price and promotion. It is all about putting/targeting right
product at right place for targeted customer at affordable price. In this
modern age where business practices are in a persistent loop of change, 4 P’s
of marketing still have importance. With the emergence of Outlets are becoming
popular way of selling all over the world. According to
shoppingcenterbusiness.com there is an increase in the sale of outlet industry
even in the times of economic recession showing its resilience in the wake of
troubled economic periods.
Mulhern (1997) stated that modern retailing
strategies are not being developing by considering the traditional
merchandising approach of marketing mix but marketers are focus and emphases on
customer relationship, friendly environment and cooperation with brand holders.
He also pointed out some important points about modern luxury retail system
including store location store position, store image, physical environment and
retail services. With the emergence of mega mall and retail village concepts businessmen
are now focusing mainly on the infrastructure and services supplementary to the
retail outlets. The success of this industry can be owned due the movement of
real estate developers in this sector. This trend has given an immense strength
in the outlet industry.
Figure 1: Concept of Luxury Retail
Outlet Marketing Mix
Cheshire
Oaks is a luxury retail outlet based in UK. It is dedicated to guaranteeing
that all customers visiting should experience best shopping experience with a
high level quality of the infrastructure to the wide variety of worldwide
fashion trends and a way of life, which various brands present at reachable
cost and supplementary luxury services. The main objective is to provide a
better encounter each time with clients visiting Cheshire Oaks outlets. With McArthurGlen
Group, it collaborates to strengthen ties with branding partners, which is an
important factor in the development of its outlets. The provision of an
enabling environment with an artistic touch is an outlet development technique
being applied by Cheshire Oaks. It is the replication of visual merchandising
concept with high class luxury services provided to customers to feel them on
holidays. Developing an infrastructure like that is a real challenge for outlet
owners because it affects the customer perception and ultimately customer
buying behaviour. Cheshire Oaks with the collaboration of McArthurGlen planned
luxury retail outlets cum village for better customer experience.
As we know
that place has an important role in success of marketing mix strategy. Cheshire
Oaks developed its retail outlet strategy by considering the store location,
position and infrastructure along with assurance of luxury services. The outlet
development strategies of Cheshire Oaks, a leading designer outlet based in the
UK, revolve around innovative methods to attract customers into its fold. The
major outlet development strategies being applied by Cheshire Oaks creating
commercial innovative development through new opportunities, global marketing
through building relationships, environment friendly outlook, and branding, new
concept of tourism, arts and architecture and supplementary lavish services for
better shopping experiences.
COMMERCIAL DEVELOPMENT OF OUTLETS
Retail
outlet designing and development includes planning, design and development. In
planning phase typically store location, layout and atmosphere has been planned
and Cheshire Oaks planned its retail outlet villages accordingly. In designing
phase floors, retail shops, hotels and others luxury service points are being
designed to attract customers. This also includes interior designing phase in
which shopping points, hotels and pathways are being designed and developed.
Cheshire Oaks has called world’s best architectures, interior designers and
artists to work for. This gives the competitive advantage to Cheshire Oaks and
an opportunity to customers. These paintings and creative work acts as a
customer attraction tool for Cheshire Oaks. For example John Kelly a famous
artist and sculpture sponsored his artistic work to Cheshire Oaks.
Figure 2: John Kelly Art Work for Cheshire Oaks
Cheshire
Oaks’ main thrust on commercial development of outlets is done through leasing,
experiences, advertisement, sponsorships and revenue sharing by creating new
opportunities. Cheshire
Oaks focuses on developing innovative ways to increase their customer
experience through their commercialization plans which are predicated on
discernable analysis. The main areas in commercial planning of Cheshire Oaks
are their stress on innovation and long term sustainability. Its working on relations
with its partners is based on the mixing of retail at their various outlets as Mulhern
(1997) suggested. The main five categories of commercial development are brand
experience, sponsorship, specialty leasing and revenue sharing. A brief look on
these five categories is as follows:
The concept
of specialty leasing is innovative in the sense that it is available for those
who are out to accept for challenges and want to grow with new concepts of retailing
in consonance with customers’ need. Cheshire Oaks is exemplary in displaying
special events with adopted experiences related to the brands being shown at
their outlets. These new experiences have their peculiarities to attract
customers to their outlets in regular fashion.
Advertising
is a backbone of any business venture according to Aaker (1991). Cheshire Oaks
is remarkable in the sense that around 75 million of people visit their outlets
every year. Their visit to scenic outlets by itself is a source of
advertisement for Cheshire Oaks as a visit to the outlet by customers by itself
is a unique experience for them, which is then translated into a form of
advertisement. The village of McarthurGlen Group is a refreshing site for
visitors—an innovative way of advertisement in its own right.
Sponsorships
are essential for advertisement. Without sponsorship any brand or business does
not enter into the public sphere. Keeping in mind this aspect of business
development strategy, Cheshire Oaks sponsors various kinds of events throughout
the year for attracting a huge audience and transforming that audience into
customers. Special schemes like gift cards for customers are also part of their
sponsorship programmes. According to the official website of McArthurGlen Group
the number of audience for its sponsored events is around 300,000 per annum. Revenue
sharing at Cheshire Oaks outlets is quite diverse as it provides a wide array
of new opportunities in the form of vending machines to service centers
according to the official website mcarthurglengroup.com.
DESIGNING OF OUTLETS
Cheshire Oaks outlet places special
emphasis on the designing and style of its infrastructure. They only not
develop shopping malls but also edify environment friendly retail centers to
upgrade the experience of shopping for its customers. Internationally renowned
architects and artisans are hired for this purpose to make the outlook of
outlets attractive as a development strategy. The figure below shows the nature
of architectural designs in designing of their outlets
Figure 3: Cheshire Oaks Designer Outlet—Outside View
The
figure shows that outlets developed by Cheshire Oaks have a specialty in their
architectural designs which distinguishes them from other traditional shopping
outlets.
ENVIRONMENT FRIENDLY OUTLETS
Environment imparts a long lasting
impact on the minds of people especially when they come from any sort of
commercial activity. A conducive environment is important as this area is
usually neglected by business circle all over the world. As Cheshire is deeply
committed to ensure the long term viability of its business, therefore it is paying
special attention to the environmental aspect of its business. According to
McArthurglengroup.com, Cheshire Oaks is especially concerned with the recycling
process. It is eco-friendly as it derives its energy from renewable resources.
Solar panels are used for this purpose to reduce energy costs, which can, then,
be translated into affordable prices.
Figure 4: Cheshire Oaks Outlet Roof
The above figure shows
the roof of Cheshire oaks outlet having solar panels spread all over it. These
panels generate energy as well as protect roofs from getting hot.
Another important development strategy
being adopted by Cheshire Oaks is its focus on tourism and the creation of
centers exclusively reserved for local communities. Tourism is also being
boosted by providing social spaces to various communities in the areas where
Cheshire oaks facilities are developed. Cheshire Oaks outlet development
strategy aims to provide best living and tourism experience. Cheshire Oaks
planed its hotels and inns according to the living patterns, perception and
approach of targeted customers.
Figure 5:
Holiday Inn Hotel of Cheshire Oaks for Tourists
OUTLET DEVELOPMENT THROUGH LEISURELY
ACTIVITIES
Cheshire Oaks gives a unique
experience of business with a sense of leisure. The environment of Cheshire
Oaks’ outlets, as discussed before, are so cherishing that they entice
customers to stay at outlets and have a breathtaking experience. Families and
friends usually throng the outlets for its eye catching outlook having
landscaped surroundings in its suburbs, which is also created by Cheshire Oaks.
The entertaining festivals, fashion contests and music concerts are the
hallmarks of its development plan which is used to extend its business with a
sense of leisure for customers and visitors alike. Transport facilities for
customers and ample parking space also create a long lasting impact on
visitors. It gives them a general good feeling about Cheshire oaks which is an
impetus for the development of its outlets.
Figure 6: Music Concert at Cheshire Oaks Outlet
The above figure shows leisure activities being held at
Cheshire Oaks outlets to attract people. The designing of outlets is made in
such a fashion to use spacious place for assemblage of people.
Cheshire
Oaks is an impetus for the development of its outlets. Cheshire Oaks Vue cinemas
are another source of leisure for visitors. Cheshire Oaks always provides best
cinema experience with latest cinema technology with extra luxury services like
ice-cream parlor, gaming zones and bowling alley.
Figure 7:
Cheshire Oaks VUE Cinema
GLOBAL MARKETING
The
concept of global marketing has attained immense importance in the wake of
globalisation. The globalisation has created new opportunities and threats for
companies due to the rise in intense competition over capturing of the markets
according to Porters (1985). Cheshire Oaks also puts special emphasis on the
concept of global marketing to make its reach globally attainable. It tends to
achieve its goal in this realm of its outlet development through building
relationships with various partners across the world
Cheshire Oaks extends its sale and
public relation portfolios in areas like Russia, China, Europe and Brazil.
These extended portfolios are quite helpful for the Cheshire Oaks to develop
new outlets. With the help of this outlet development strategy, portfolios are
also promoted to the level of tourism. During collaboration with their
partners, the group ensures its partners that it will take into account all the
needs and imperatives of global marketing strategy in order to cajole tourists
(customers) to their designer outlets. The partnership of the Group is also
extended to travel companies to make the company’s profile visible to tourists.
Brands are important in the sense that
they create an intangible relationship between customers’ sense of identity
with that particular brand. Cheshire Oaks pays special attention on the
availability of all world renowned brands to be available at its outlets.
According to the official website mcarthurglengroup.com there are around 860
globally renowned brands available at its outlets. The availability of globally
renowned brands also attracts customers to its outlets. This wide range of
availability of brands at Cheshire Oaks outlets is also helpful in transforming
the Cheshire Oaks itself into a brand name. Besides this, the sponsorship of
various events is also assisting for Cheshire Oaks to make it a brand.
According to the official website of
Cheshire Oaks, it works in close collaboration with brand partners to ensure
the success of their brands. Cheshire Oaks also shares the details about
emerging market trends to its branding partners for making their products in
line with public demands. In this way the partnership is helpful for
both—Cheshire Oaks as well as branding partners.
Figure 8:
Cheshire Oaks Strong Relationship with Stakeholders
CONCLUSION
The outlet development strategy of
Cheshire Oaks is innovative in the sense that its emphasis is multi-dimensional
for customers with an affordable price range including 70% savings on various
products, cherishing environment, building of partnerships and diversification
of brands. These outlet development strategies are, in fact, reinvestment by
Cheshire Oaks for long term sustainability and profiteering.
REFERENCES
Aaker,
D (1991), Managing Brand Equity:
Capitalizing on the Value of a Brand Name, FP, NY.
Collins
& Porras (1994), Built to Last
Successful Habits of Visionary Companies, Harper and Collins
Doyle,
P. (1994), Marketing Management and
Strategy, Prentice-Hall, New Jeresy,159-65.
http://www.mcarthurglengroup.com/what-we-do/brands/
accessed on 15.3.2013
http://www.mcarthurglengroup.com/what-we-do/environment/ accessed on 15.3.2013
http://www.mcarthurglengroup.com/what-we-do/global-marketing/ accessed on 15.3.2013
http://www.mcarthurglengroup.com/what-we-do/leisure/ accessed on 15.3.2013
http://www.shoppingcenterbusiness.com,
http://www.shoppingcenterbusiness.com/index.php?option=com_content&view=article&id=414:outlet-for-development-shopping-center-business&catid=4:cover-story&Itemid=299
accessed on 15.3.2013
Mulhern,
F. J. (1997). Retail Marketing: From Distribution to Integration. International Journal of Research in
Marketing, 14(2), 103-124.
Porters,
M.E, (1985), Competitive Advantage:
Creating And Sustaining Superior Performance, Free Press, New York.
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