TARGET MARKET AND LOCATION EVALUATION

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Target Market and Location Evaluation

            Lush is a brand based in London with branches worldwide well recognized for concoctions that do not match any other bath products in the new market. They manufacture handmade body treatments with the use of blended vegetables with essential oils and plant extracts together with organic fruit. They have devised a new method of packaging that goes from the traditional packaging of soaps in fancy containers or boxes to minimal packaging (Kee and Raoul).

This is their strategy of attracting customers. The strong odor that emancipates from the least packaged products assails the nostrils of the passersby from as far as twenty feet. On the other hand, this reduces costs both on the manufacturers and the customers. It reduces on products stocking up. The majority of their products on sale are kept on sale for a maximum of four months after which the blocks are chopped up then given away like samples (Kee and Raoul).

The brand is widespread in more than twenty countries and more than one hundred stores that transverse four continents.  During specific Fridays per month, request orders are received from all the stores worldwide before commencing on production. This has helped curb wastage for only enough is produced. Additionally, Lush introduces at least onenew product weekly and every year they put an end to thirty percent of subsisting product lines (Kee and Raoul).

Accessibility of location is one of the major considerations to make for a retailer among product assortment and price margin. A retailer needs to start by identifying his target customers and their categories. A mainstream appeal gives a broader array of competition hence a need to co-locate with them as a contender. If the retailer decides to specialize, the store turns out to be more of a destination thus a greater need to draw closer to the target with no much worry in relation to competitive positioning (Catty).

In addition when the target has been narrowed down to specifications the retailer should try and discover the residence of customers in the market. This can be achieved through purchase reports, census data, maps, or advice from location consultants or data vendors. Location is also affected by projections of business plans as well as the budget on rent, advertising and stock purchasing or production (Catty).

In addition, the size of the area and the cost needed to occupy the location are crucial in selecting a retail location. This ensures that there is a budgetary plan that is made prior to re-locating or else allocating a retail shop. Pedestrian as well as vehicle customers are key factors to consider along with the location convenience for customers. Moreover, it is essential for every retailer to verify any restrictions that could be put forth through property managers (Catty).

Pasadena is known for its scenic beauty that is engulfed in vibrant and rich cultural as well as academic environments. The architecture is breathtaking and it is a place full of nightlife. In comparison with other states, there is steady income among the majority with close to 49.9% of the residents in employment. Looking at their lifestyle, they are more stable financially and socially with an approximate of 86% driving their own cars and only 1% using public transport. The family structure comprises more than 80% of households that have been determined either with children or not. Its central location with its perfect infrastructure with an elevated excellent client base makes it ideal for business to bloom. Thus, all these form a firm ground for lush brand that specializes with products that are mainly for household use (The City).

Multichannel retailing includes online shopping in collaboration with in-store shopping. Surveys reveal that a good percentage of in-store clients only visit the website to compare prices of commodities or to search for products lacking in stores. Nevertheless, more than eighty percent admit that they would prefer online shopping if the shop staff would be willing to make an online order on their behalf. In addition, seventy six percent find it expensive as well as time consuming as a result of repeated purchases with the return policies. On the other hand sixty five percent of customers that exceed the age of fifty five are irritated by delayed deliveries. Nevertheless, multichannel ensures that there is extensive range available to customers (Roberts).

Shoppers will opt for a non-store location because it saves time and eases product searching. Shoppers do so at their convenient time from their comfort zones for instance at home thus saving time that could have been spent on driving to other important activities. Consumers can also chat or discuss online asking for guidance or opinions concerning the product. On line, there is no pressure to buy and the time of vendors is saved as well since there are no consultations or pleas for assistance made. There is availability of infinite shelf space since the shopper browses from first to last of products available worldwide (Dunne and Lusch).

However, an online shopper will lack social connections that are made in retail store shopping. The privacy and security checks of online shopping have not been taken into full consideration. On the other hand, access to a computer is necessary for online shopping. This incurs extra cost to purchase one. Therefore, older people will prefer traditional retail shopping especially if they are not computer savvy. Additionally, functional products like perfumes or electronics are hard to experiment online (Dunne and Lusch).

REFERENCES

Catty, James P. Wiley Guide to Fair Value Under IFRS. U.S.A: John Wiley and Sons, 2010.

Dunne, Patrick M. and Robert F. Lusch. Retailing. Florence: Cengage Learning, 2007.

Kee, Chee and J. Raoul. The scented bath. Business And Economics€“Chamber of Commerce Publications 10 December 2001: 1.

Roberts, Jo. MULTICHANNEL RETAILING: Bring all sales channels under one umbrella. Marketing Week (2010): 24,26.

TheCity. The City of Pasadena. 2011. 18 July 2011 <http://www.ci.pasadena.ca.us/>.