Tag Archives: merchandising

New Shopping Records: Black Friday and Cyber Monday

If you are reading this, congratulations. It means you survived the busiest shopping days of the season: Black Friday and Cyber Monday. And, busy is an understatement. Shoppers took to the stores and online in masses, scoping up deals and getting started on holiday shopping for loved ones (and their selves).

The numbers are nearly as staggering. According to Adobe Analytics:

  • Shopping dollars from Nov. 1 – 26 totaled $58.52 billion
  • Black Friday accounted for a record-making $7.9 billion, including $6.22 billion spent online
  • Top products included Fingerlings, L.O.L. Surprise, Nintendo Switch, Laptops from Dell & Apple, LG TVs, drones, and Amazon Echo
  • Sales traffic vs. revenue by device type:
    • Desktop: 42% traffic for 61% of purchases
    • Smartphones: 49% of traffic for 30% of purchases
    • Tablets: 8% of traffic for 9% of purchases
  • Buy Online, Pickup In-Store (BOPIS) increased 50% from last year
  • Cyber Monday sales reached $7.9 billion, the largest single shopping day in the U.S.
  • Sales from smartphones also hit an all-time high of $2 billion

What did you buy?

Group Activities and Discussion Questions:

  1. Poll students about shopping over the Thanksgiving weekend.
  2. What did they buy? How much did they spend? Gifts or personal purchases?
  3. Did students shop in stores, online, or both?
  4. Purchase volumes by type?
  5. Review the data and charts from Adobe site: http://exploreadobe.com/retail-shopping-insights/
  6. Additional information CNBC Article and video: https://www.cnbc.com/2018/11/24/black-friday-pulled-in-a-record-6point22-billion-in-online-sales-adobe.html
  7. Other video: https://youtu.be/DDhk6O5TSN0
  8. Given the results from holiday shopping, what are three things that retailers must do to continue to meet customer needs?

Source: Adobe Analytics, CNBC, New York Times, Wall Street Journal, other news sources

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Target Launches New Brand – “Smartly”

Not all innovation requires high-tech. Sure, shiny robots, drones, talking home pods, and self-driving cars get a lot of coverage in the innovation spot light. But there is plenty of innovation around in even the simplest of household items. The key is to make sure the innovation meets the needs of the customers.

A very simple new product line innovated and launched by Target this fall is called ‘Smartly’. Smartly is a new, low-price brand with more than 70 items priced below $2.00. That’s right. Two dollars. The products include household cleaners, razors, hand soap, paper plates, and toilet paper.

And it’s not just a low price point. Most of the products are sold as single-items, or in small multi-packs. This is ideal for space- and budget-conscious consumers, such as students and young apartment dwellers starting their first jobs.

Going along with the reduced packaging, prices are roughly 70% lower than traditional brands such as Tide, Gillette, and Charmin. And, the Smartly line even undercuts Target’s own Up & Up brand by about 50%.

Simple innovation can equal smart innovation.

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Explain the use of a product-market grid to determine market segments.
  3. Show Target’s new Smartly product line: https://www.target.com/c/smartly/-/N-r4rpp#?lnk=snav_rd_smartly
  4. Read Target’s announcement of the new line: https://corporate.target.com/article/2018/10/smartly
  5. Divide students into teams. Have each team build a market-product grid by identifying five market segments that shop at Target, and five categories of product groupings sold at Target.
  6. Where does Smartly fit in the product groupings? What market segment is the best one for Target to pursue with this new product line?
  7. Finally, how should the company promote the product line?

Source:  New York Times, Wall Street Journal, Target, other news sources

 

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Crocs Launches High-Heels

Crocs casual shoes surround us. The comfortable, resin-based footwear comes in a wide variety of styles for women, men, and children. There are classic clogs, sandals, wedges, sneakers, boots, and more. But until recently, there were no dress-up Croc shoes for more formal and business events. Hmmm….. Is this a new market opportunity? The answer appears to be a resounding ‘yes’.

Crocs heard the need from its loyal female fans and recently launched a new high-heel Croc shoe. Crocs may have started as the shoe for casual outdoor wear, but were quickly adopted by people who are on their feet (such as restaurant and hospital workers) for long periods of time. Made with a closed cell resin called Croslite, the foot beds warm and soften with body heat, molding to the shape of each foot. The shoes use an orthotic heel, built-in arch support, and tarsal bar, making customers’ vocal fans of the comfortable shoes.

While fashion-forward consumers might not be fans of Crocs, the company has sold more than 300 million pairs of shoes in 90 countries, and reached $1 billion in revenue. The shoes have been featured in fashion run-way shoes, and been seen on the feet of Pres. George W. Bush and First Lady Michelle Obama, among others. The shoes have also been a frequent recipient of satire and “worst” lists.

Crocs – love ‘em or hate ‘em?

Group Activities and Discussion Questions:

  1. Poll students: Who has Crocs? What are the opinions of students about the shoes.
  2. Videos can be found on Croc’s: https://www.youtube.com/user/crocs
  3. Crocs’ website: https://www.crocs.com/
  4. Discuss the importance of clearly defining a target market.
  5. Divide students into teams and have each team develop a profile of a target market for Crocs high-heel shoes. Include demographics, psychographics, behaviors, values, attitudes, etc.
  6. Based on the target market profile, what makes this product unique for these customers?

Source:  Fast Company, USA Today, other news sources

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