Shopping

1.1 Current Product

Davidoff Cool Water 100ml is iconic silver and blue bottle with the soft figure of a feminine body and it flawlessly seizes the essence of natural beauty and the freshness of Cool Water, which is very suitable for the sensual woman. This exhilarating cologne perfectly combines the moist fragrances of citrus, pineapple and blackcurrant with the refreshing odor of ocean air. The benefits of the perfume is it can last for the whole day when applied on the skin during the morning and it is free from chemicals so the perfume can be worn securely. It is also very suitable to wear the fragrance to the office for a sensation of self-confidence or for cheerful enjoyment during stress-free weekends at home. When buyers purchase the product online, some websites offer free shipping’s and discount if consumers buy from their online shop.

If purchasers buy at the retail shops, they usually receive some free perfume samples of other kinds of Davidoff cologne. Davidoff’s company is now producing not only perfumes but also body lotions; deodorants, body sprays, shower gels and they also introduce perfumes not just for women but also for men. Women usually use the product because this Davidoff Cool Water 100ml is specially formulated for women only so most female buyers usually buy this product to satisfy their needs. Buyers usually do research before obtaining this product by looking up on the internet or get reviews from people who have used this product previously, they would spend quite a long time looking for the product.

There are two substitutes products, Davidoff sensual essence and sea rose Cool Water which is also for women, they would accept the product since most of the elements used in the fragrances are not much different. The first aroma was launched in 1984, the brand has become one of the most widespread perfume brands and it has been a worldwide bestseller for over 20 years. Cool Water is different from others because wearers usually explain that these faience’s make them feel like they have just marched out of an exhilarating bath or aroused from a long swim in the ocean. Cool Water derives in a rectangular semi metallic blue tall box and for label Davidoff is above the scent title: Cool Water.

1.2 Current Pricing

Davidoff Cool Water is in a competitive market situation and the product is also a value determiner because many customers and retailers offer a wide variety of prices. Suppliers distinguish their proposals because there are many online shops proposing at different prices and many retail shops selling at extraordinary amounts to gain consumers attention. When consumers buy more or less of a Davidoff Cool Water, if the price increases then the quantity decreases a large number and vice versa. A rise or fall in price will not drastically affect the increase in price of demand and then the quantity reduces down slightly and vice versa.

Business costs play a very vital role in defining the price because they have to validate that they are making sure that they are giving the consumer the best price for them to be able to cover their production cost and make some profit out of it, so that they would be able to produce more products without facing any problems like shortage of money to manufacture more perfumes or other products. The current price is usually about the same as the competitors by setting the price not lower or higher than their opponents offer price so that the consumers would see the less difference in price and purchase from the shop that they would like it buy from. Some consumers purchase the product based on the pricing and some based on the product image, features and quality.

The behaviors of consumers are based on many different purposes such as individual, emotional, communal and situational and when they purchase more often they become loyal customers. Most of the female consumers do not really care about the price of the product but what they mainly focus on is the luxury brand that will offer more individuality, rank and hedonic value than non-luxury trademarks so those types of buyers are willing to pay at any amount to get the product that they want. On the other hand, there are some people who will only buy the creation if the product has high quality, unique features and presentable image because those types of consumers believe that the price that they pay should be worth giving for it.

1.3 Current Distribution

Shoppers cannot purchase the produce straightforwardly from the industry that create it because on their official website they do not sell products but they only distribute their products to stores located in many different countries and cities which allows the buyers to have more chances of buying their product from stores near their places. In Singapore, Consumers can purchase this produce at Isetan, Tang plaza, Metro Paragon and Takashimaya shopping malls that are all located at Orchard Road. Isetan has many branches in Singapore but only Isetan Orchard sell Davidoff Cool Water.

Isetan is located at 435 Orchard Road, Wisma Atria, and Singapore 238877. Customers can travel there by bus, train or car since it is situated in the center of the city, buyers can go there conveniently. The shopping mall is one of the most popular in the city-state because of its massive varieties, reasonable prices and good services. Within Wisma Atria, the store carries many types of popular brands like Calvin Klein, , Polo, BVLGARI,DKNY and many more which attracts the customers to visit their mall.

Tang plaza is also located at Orchard road, which is not very far away from Isetan; just about 3 minutes drive from Isetan. Tang is famous not just because of their wide array of shopping objects for home but their innovative window displays. It also has many different types of stylish goods and services. The department store also provides a huge number of apparels for both men and women. Tangs plaza is very appropriate for everyone in the household and with the extensive operating hours until 11pm on Fridays and Saturday, where all consumers can shop for longer hours. Characteristics of product that influence its distribution include distributors, wholesaler, jobbers and brokers. The main reason is for all socials to defend their own best benefits in the channel.

The main factor when it comes to impelling its distribution is the way the product is gained by shoppers. For instance, perfume buyers usually want to try and know the odor of fragrance first before purchasing them, which means distribution is going to have to involve perfume testers for them to analyze it before buying the product. Many products are best retailed with the help of a live demo, so the distribution strategy will have to include some ways of conducting these demonstrations.

1.4 Current Promotion

Takashimaya is having a promotion for this August for National Day, which includes the store that sells Davidoff Cool Water. It is 20% off for any purchase of any items in the store so, which is a great bargain for all the shoppers in the country. Another recent promotions is the website www.singaporebestsite.com is having a series promotion which worth S$98 but they offer S$49 only if the product is redeem between August and September 2013. The product must purchase online in between the redemption period and send their product at via registered mail after a few weeks by giving them a call or dropping an email. These promotions advertisement are all over the Internet and also in some of the newspapers and magazine where people can easily find out about their special offers.

Both promotions are sending the same message to consumers by letting them know that they are offering the best price for them and the difference between these two promotions would be that the consumers have to travel to Takashimaya to buy the product while the other one offers home delivery without having the buyers to travel to their place. However, both promotions are both advertising through newspapers and magazine based on the massive audience coverage and high production quality. They also advertise by digital marketing because it is directed to a particular target market and also clear positioning. The current theme of the promotion is to make sure that their product fits in with a lifestyle and showing the consumers that whether it constructs an atmosphere or aura around the produce such as attraction, affection or tranquility and that their product is for everyone all over the world.

The business is trying to get as much as attention from the consumers so that they would buy more of their product in the future when there is no promotion period. By also giving them a piece of mind about how good their product is compare with other goods at a lower price. The sales are mainly for women because women tend to get attach with the product they like more than men. There are push and pull strategies in the business world, the push method is to go after the negotiators who push the regulars by offering bonuses and the pull approach is to emphasize communication on end consumer so they demand the product from the intermediary. 2.1 Definition of the brand positioning

Positioning owns a part of consumer’s awareness and it is not what you organize to the product, it is what you perform to the mind of the viewpoint. Brand positioning is to position a product/service in the minds of shoppers compare to their challengers. It is one of the most significant steps any business can take on the road to the accomplishment. For small businesses, their motivation for the effort itself is usually little because they would rather be managing to the hundreds of other duties asking for their attention. It also brings to light the capability of the goods or services by showing the alternative paths and also reveal new opportunities.

Brand positioning distinctly defines the crucial things such as regulating originality by making sure the product is more unique than other products, determining the unique position in the indicated market, classifying competitors because strong and fierce competitors have esteemed power and defining the necessary financial plan to enter the market because it is favorably suggested to pair up with a brand professional or graphic designer who truly comprehends labeling.

2.2 Brand positioning in relation to the brand/product

Capabilities of the brand are that the brand is very different from others based on the smell, price, packaging and labeling. It is very well performs by helping the users to last the scent for whole long day, the quality of the fragrance is very high because it was first introduced in the year 1988, which is almost 25 years since it was released so it already gained consumers attentions since then so the performance standards of this product is high. The customers like the product due to the fact that it gives you the feeling of cool water when they apply on their skin, which helps them to be free from stress and for relaxation. Davidoff products are one of the top brands in the world so when people uses this product they feel proud and have more confident in the crowd so the customers purchase this product to stand out in the crowd. Customers want them to be seen as people who are rich enough to spend their money to buy the branded products and give others a message that they are rich.

3.1 Geographic Segmentation

Singapore has a climate, which is categorized by constant temperature and pressure of high humidity and plentiful rainfall. In single month rain is experienced but there is no wet or dry season and the weather is always sunny. Due to the hot climate, people residing in Singapore need perfume that will help them cool down and also refresh them and Davidoff Cool Water can help them by giving them a good start by applying it on the skin in the morning when they go out. Singapore’s population was approximately around 5,312.4 thousands in 2012 where there are more female residents than men. It is an obvious statement that women go shopping than men so which means the product is suitable for people living in this country. Singapore is also considered as one of the most developing countries in Asia, so most of the people inhabiting in this country can easily afford to buy a bottle of perfume at a reasonable price.

3.2 Demographic Segmentation

In the year 2012, The percentage of working adults in Singapore are 50%, which means those people can make more income then teenagers and senior citizens and when it comes to Literacy and education, the percentage of university graduates is 45.9% in 2011 and the total employment in December 2012 is 3,357.6 thousands. Each and every working adults are almost earning average household yearly income of approximately about S$9,618, which is a huge amount of income compared with people working in other countries like Myanmar, Thailand and Cambodia and so on.

People working in Singapore are very serious and particular about their work so they are very keen to earn money and that is why their country is developing more and more. In Singapore, not just Singaporeans reside in this country but also other ethnic groups also reside in the country such a Chinese, Malays, Indians are others including people from western countries like America, Russia, Switzerland and many more but the majority are the Chinese people so with the amount of money that working adults earned each year they can buy Davidoff Cool Water undoubtedly.

3.3 Psychographic Segmentation

The routine, daily behaviors, relevance and ideas on various matters create the characteristic of each group. Lifestyle of people in Singapore are mostly stressed out depending on what age they are. For example, teenagers are worried about with their schoolwork while working adults are strained about their job and the senior citizens are agitated with the living cost in Singapore. In order for them to cool down and refresh their min Davidoff Cool Water would be very suitable for them.

There are altogether 10 segments in Ryan Morgan Values Segment. Basic Needs, Real Conservatism, Traditional Family Life, Conventional Family Life, Young Optimism and Socially Aware represents customers’ price opportunities, desirability to origination and perceived permissiveness. VALS classification states that trendsetters have high assets and high invention while survivors have low supplies and invention. The primary motivations include Ideals such as intellectuals and supporters, Achievement such as highfliers and seekers and Self-Expression such as experiencers and creators.

3.4 Behavioral Segmentation

Based on newspapers and magazine, people living in Singapore could afford to spend enough amount of money to purchase one or even more bottles of Davidoff Cool Water with their income. The benefits that customers usually expect are the odor of the smell, quality, brand and price of the product.

Majority of the woman prefers the good smell of the perfume so that they could feel confident in the crowd after wearing it. When it comes to loyalty people in Singapore are believers they are mostly family and community oriented people who also makes them loyal to their brand so after they started using the fragrance and if they like it, they become loyal to the product. People residing in Singapore not just in the country but also for everyone, price is very sensitive to them, they will search for the stores that offer the lowest price of the product that they would like to purchase so they usually buy products during the period of promotions and sales.

ASDA Group (ASDA) owned by Wal-Mart group company, is a grocery and general merchandise retailer in the UK. In 2008, ASDA recorded a profit before tax of £520.4m, down slightly from £532.7m but exceeding arch rival Sainsbury’s. ASDA’s sales hit £18.57bn, up from £16.7bn, in ranking the chain third in the supermarket hierarchy after ASDA and Sainsbury’s.

There have been many changes in ASDA’s business environment over the last 65 years. ASDA is usually conducting research to identify changes in the business environment and responding to the customer needs its research identifies. One of the research models is PESTE (STEEP). The PESTE model uses the five headings of sociological, technological, economic, environmental and political factors. Factors in the macro-environment such as tax changes, new laws, trade barriers, demographic change and government policy changes affect the management decisions at ASDA.

Sociological (gender roles, age of consumers, the extent of local migration/mobility, patterns of consumption, culture of a population, out of town shopping/car usage, busy people/working more hours)

One of the sociological factor is dietary habits. Nowadays, people want to try different and new foods. ASDA has responded by increasing its range of foreign foods such as Mexican, Indian and Chinese. Likewise, the large ethnic populations that have moved to the UK have made ASDA respond by increasing its range of foods. For example, there is a full aisle of Polish food in ASDA in Boston, Lincolnshire. This is not extraordinary, considering that in this little city (30,000 citizens) almost 50% is Polish. Another factor the ageing population also has impact on the demand for non-food products such glasses from optical stores. ASDA have its own ‘ASDA Opticians’. This is example how ASDA responds to changes in sociological environment and the age of customers factor.

Technological

Technology is an area where there have been a lot of advances. The example of this is the mass use of microwaves. The Company launched a range of microwaveable foods. Welcomed new technologies, ASDA has implemented online shopping and self service checkouts which make easier shopping for customers. Furthermore, new technologies enable improvements to the way that ASDA does its business. The company uses information technology to support its operations. For example, it can see how individual products are performing store-by-store at a glance through data collection. ASDA appears to have responded well in this area.

Political – Legal changes (laws on foods, competition laws, rate of unemployment, tax policies, price regulations etc)

Planning permission is heavily regulated in the UK. ASDA is aware of planning permission regulations. Store expansions goes ahead to comply with planning regulations. ASDA identifies relevant planning laws and comply with them to reduce any disruption to its store expansion programme by local people’s dissent or the local authority refusal. This supports the successful opening of a new store in an area. An example is the development of huge out of town ASDA Superstores which have huge car parks. This was made possible by the government allowing them planning permission to build.

The UK is a member state of the EU so ASDA has to abide by EU laws e.g. competition laws. ASDA is restricted from growing too large. To overcome this they have started to offer more services such as financial services . There is ‘ASDA money’ (ASDA FINANCIAL SERVICES LIMITED) which offers credit cards and insurance. In addition, it provides mobile phone network. The ‘ASDA mobile’ is the cheapest supermarket mobile network with a cheaper overall tariff than rival Tesco.

Environmental/Ecological (more focus on organic, recyclable, less waste, environmental regulations etc)

A is the one of the biggest threat to a natural environment. The cause of global warming is the emission of carbon dioxide. To meet these challenges, ASDA supports carbon reductions in most of its stores. ASDA’s stores are eco-friendly, 40% more energy efficient and emitting 50% less carbon dioxide than a standard new build store. Over the past couple of years ASDA has been working with its suppliers to reduce the amount of carbon emitted during manufacture, growing and processing of their products — something that’s known as embedded carbon.

Many people now do not want to eat food that has been grown or reared using chemicals, they want natural food. ASDA has responded by introducing a wide range of organic food ranges. For example, ASDA have launched the Organix brand which helps people to find organic food on storefront shelves.

Economic (recession, competition, inflation, taxes etc)

ASDA like its main competitors Tesco and Sainsbury have been accused of tax avoidance, depriving farmers of a livelihood and functioning as modern-day monopolies that drive local businesses out of communities. ASDA has grown enormously and has forced many small retailers out of business; they have received a lot of criticism in this area and appear not to care. They have also been criticised for the low prices they pay UK farmers for their products , which in same cases has forced farms close.

In addition, ASDA has been criticised for not responding to the needs of some shareholders, such as UK farmers. As we see this economic factors are where ASDA has problems responding positively to changes in business environment. It could have negative influence for its clients. Some people could change their preferences and to go shopping in a competitor supermarket due to a bad publicity.

Conclusion

It is important to respond accurately to factors such as tax changes, new laws, trade barriers, demographic change and government policy changes. This evaluation has considered how ASDA has responded to external changes. In evaluating how well they have responded, they have responded well to external changes concerning their customers but not so well in areas of economics. Some of these wrong responses has influence for negative public relations, especially force many small retailers out of business and the low prices they pay UK farmers for their products. In other hand, to take responsibility for natural environment by carbon reductions policy is really impressive.

A department store is a retail establishment with a building open to the public which offers a wide range of consumer goods such as clothing, housewares, furniture and appliances. It typically offers a choice of multiple merchandise lines, at variable price points, in different product categories (known as “departments” hence the name).

Department stores usually sell products including clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting goods, do it yourself, paint and hardware and additionally select other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment and baby and pet needs. Certain department stores are further classified as discount stores.

Big-box stores and hypermarkets have become a modern equivalent to historical department stores. Department stores have a supermarket-type central customer checkout area near the front of the store, or alternatively, sales counters within each department. Department stores are usually part of a retail chain of many stores situated around a country or several countries. Some may be independent retailers, existing entirely independent or as licensed dealers.

History Origins The origins of the department store lay in the growth of the conspicuous consumer society at the turn of the 19th century. As economic growth, fuelled by the Industrial Revolution, steadily expanded through the nineteenth century, the affluent bourgeois middle-class grew in size and wealth. This urbanized social group, sharing a culture of consumption and changing fashion, was the catalyst for the emergence of the retail revolution of the period.

As rising prosperity and social mobility increased the number of people with disposable income in the late Georgian period, window shopping was transformed into a leisure activity and entrepreneurs, like the potter Josiah Wedgwood, pioneered the use of marketing techniques to influence the prevailing tastes and preferences of society. [1] One of the first department stores may have been Bennett’s in Derby, first established as an ironmongers in 1734.

It still stands to this day, trading in the same building. However, the first reliably dated department store to be established, was Harding, Howell & Co, which opened in 1796 on Pall Mall, London. [3] An observer writing in Ackermann’s Repository, a British periodical on contemporary taste and fashion, described the enterprise in 1809 as follows: The house is one hundred and fifty feet in length from front to back, and of proportionate width.

It is fitted up with great taste, and is divided by glazed partitions into four departments, for the various branches of the extensive business, which is there carried on. Immediately at the entrance is the first department, which is exclusively appropriated to the sale of furs and fans. The second contains articles of haberdashery of every description, silks, muslins, lace, gloves, &etc.

In the third shop, on the right, you meet with a rich assortment of jewelry, ornamental articles in ormolu, french clocks, &etc.; and on the left, with all the different kinds of perfumery necessary for the toilette. The fourth is set apart for millinery and dresses; so that there is no article of female attire or decoration, but what may be here procured in the first style of elegance and fashion. This concern has been conducted for the last twelve years by the present proprietors who have spared neither trouble nor expense to ensure the establishment of a superiority over every other in Europe, and to render it perfectly unique in it’s kind.

This venture is described as having all of the basic characteristics of the department store; it was a public retail establishment offering a wide range of consumer goods in different departments. This pioneering shop was closed down in 1820 when the business partnership was dissolved. Department stores were established on a large scale from the 1840s and 50s, in France, the United Kingdom and the United States.

The worlds first famous supermarket was opened in the USA in 1912 and the idea soon spread to Europe and other countries. The shopping scene in Poland has also changed over the past ten years. Empty shelves and long lines are things of the past. Today trade is alive and very busy. Shopping has become a part of our everyday life, of course some people love it and some do not. We have become witnesses of the growth of big stores and shopping centers. All of them are beautiful decorated and are opened for the whole day and sends.

This enormous place has plenty advantages and disadvantages. It is designed in such a way that the shoppers have to go a certain route from the entrance to the cash point near the exit. The customer is guided past all the most popular production display and thereby encouraged to buy items he would have forgotten to buy. You don ‘t have carry things but you Just take a trolley. It is a very convenient way of shopping because you can choose the product you want from a large range and you have the possibility to get to know the new products.

You are served in a very polite way and no one makes you hurry because other shoppers are waiting behind you. The variety of goods is so great that you are given time to decide what to choose. Supermarkets can be called “the all in one shop” because they offer products of every kind. There are departments specializing in: food for people and pets, clothes, tools, books and magazines, electronic equipment, souvenirs and many other.

It is not only high – quality assortment that attracts people UT also its lighting of high intensity and its clean and hygienic atmosphere with, as I mentioned before, the possibility to do all your shopping in one store. Add to this an adjacent car park where you can wheel your trolley to your car, load your stuff into your car boot and leave a basket or a trolley nearby to be collected by the store attendant. In this way shopping becomes a pleasure instead of a nightmare. Also find there a restaurant, a cafe, and a special place for kids to play while their mothers are shopping.

There is also a possibility to pay by cheese or a credit card and vouchers. If something goes wrong with your products, you simply show your receipt and you are given a new one or your money back. Not to forget about sales and special offers such as “buy one get one free” or “two for the price of one” are always found there. Wide choice which can cause confusion. People often buy unnecessary things because they seem to have good price and you buy things that you did not plan to buy earlier. This is called impulse buying.

Attractive packing and displays persuade people to buy things they do not actually need. For many of us the major disadvantage of shopping in supermarkets is that it is time consuming and it takes a while to get there and back. Big stores are also quite dangerous for all small shops owned by private people. And those shops may be the only source of living for them. To conclude I would like to express my opinion in that matter. I think that supermarkets are great inventions and the more of them the better. It is a good way to spend your free time and relax shopping.

The world has witnessed rapid economic development in last twenty years. Countries specially, India, China, Brazil, Russia etc have seen rapid growth in terms of direct foreign investments, development of infrastructure and migration of rural population to urban centres. Shopping malls, expressways, commercial centres rule the urban landscape amidst sordid state of social structure and governance.

Shopping malls are seen as weekend hubs for shopping, dining or anything like passing time.Malls provide a good heaven for lovers who earlier used to find a secluded place in a public park. The retail stores provide employment to youth who have to support their extra large families; thanks to their parents who never cared about the load of increasing population and the problems it is causing. The great urban middle class is hell bent to shun home cooked food and add some savvy dishes to their ever increasing piquancy to taste food at food courts. A mall is a centre of immense economic activity, though at some expense to the environment.A large mall situated along a narrow road in Gurgaon or Noida is a host to queues of vehicles. Queues that line up several kilometres causing huge deficiency to nation already starved for diesel and petrol.

Please check the smog that results from fumes emitted from exhaust tubes of these vehicles. Electricity distributers never have enough to supply to the shopping malls. So they need to burn on an average of 5000-7000 litres of diesel per day to stay in operational mode. Quite a huge volume! This can light up an apartment complex for a month.Now the food courts where you relish your favourite food generates 2-3 tonnes of toxic waste every day. The landfills are helpless. Look where the polystyrene cups and plates that you use go every day.

And the poor washroom in a mall that has to take a load of ten thousand visitors every day. You are aware that 50% people never wash their hands after peeing. Then they hold the same door knob that you hold while quitting the washroom. Then you go to your favourite fast food restaurant and eat with same hands. I was wondering why cough, cold, herpes, skin irritation and allergies are so common these days.The air inside the huge mall is conditioned again and again. The oxygen level is at minimum.

Sure you feel achy back, hardened tendons and tired ankles. Thanks to lack of oxygen that causes terrible muscle fatigue. You always loved that mall, but I always hate the first part when you have to go through security scanner. An unknown person scans, frisk and touches your whole body, as if you are a terrorist or a thief. How good it feels when you are insulted by your fellow countryman like this. Have a good mall weekend.

There are two different types of activities in a business a “core” activity and a “peripheral” activity. A “Core” activity is the main dealing of the business and is the most important activity for the business and usually generates the largest and usually generates the largest amount of income. For example, a car showroom’s core activity would be selling cars, and an electrical stores core activity would be selling different types of electrical goods.

A “Peripheral” activity is not needed by a business but if a business does have a peripheral activity this will result in the business getting an increase of profit, for example, a car showroom’s core activity is to sell car’s but can also provide a peripheral activity of providing a loan with interest, and a electrical stores core activity is to sell different types of electrical goods and can also provide a peripheral activity of providing extended guarantee with the products costing the customer a little extra.

The core activity of Errol Anderson motors is to provide a service to his customers by repairing their cars and other motor vehicles. Errol Anderson motors does not have a peripheral activity as fare as I know. I think the reason he has not got any other activities is because he has not got enough time and Errol Anderson has only limited skills. Errol Anderson motors has many competitors to try and beat, but there is no competitor that is very close to him, for example there is no other motor repair garage right next to him.

Some of Errol Anderson motors competitors are, kwik fit, Euromasters and other garages which provide a Service of repairing cars. I think some car owners will not go to big garages such as BMW, ROVER and FORD because they all normally more expensive. Errol Anderson motors main customers are going to be friends, residents, small business and households and other small businesses in the area. Errol Anderson motors will come under the Tertiary sector because he provides a service. Errol Anderson motors is a motor repair industry.

In recent years, motor repair industries are making more profits; this is because more and more people are buying cars so this will boost the motor repair industry. We can see from graph D that more and more people is being hired to work in the tertiary. Also we can see that tertiary sector is still growing in the number of people employed. The main activities of J-Sainsbury’s Retailing industry: Retailing involves selling goods directly to the customer. This selling can take place in: Shops Supermarkets Shopping centres Markets

Mail order On-line shopping (new development) Out-of-town shopping centres (lakeside) On the whole, the Retailing industry is growing. Consumer spending has risen steadily in recent years. The number of retail outlets and the number of people employed in this industry has continued to grow. 1997 319,000 Retail outlets 2. 5 million people employed 200,000 million value sales This is a very competitive industry. All these businesses have to keep changing and developing new ideas and products to keep ahead of the competition.

They compete with each other in the following ways: Prices/Discounts/Special offers Quality and range of products Opening hours (24 hour opening) Location Services J -Sainsbury’s core activity is to offers over 23,000 products of food and groceries 40% of these products are Sainsbury’s own brand. A wide range of quality food and grocery products are sold in the supermarkets and many stores offer bread baked on the premises, delicatessen, coffee shops, meat and fish counters, pharmacies, restaurants and petrol stations.

Sainsbury’s Bank continues to lead the field in the research and delivery of new products to meet the needs of their customers. J-Sainsbury has many peripheral activities such as financial services. E. g. : Instant Access Savings Account, Direct Saver Account, Personal Loans, Sainsbury’s Bank Drive, VISA credit card, Home Mover Mortgage, First Time Buyer Mortgage, Buy-to-Let Mortgage, Remortgage, Home and Contents Insurance, Travel Insurance and Pet Insurance. They also provide an online shopping service, where you can order products of the Internet and they will even deliver it to your door.

This is said to be J-Sainsbury’s peripheral activities. In some J-Sainsbury’s they have dry cleaning services and photos booths. J-Sainsbury has many competitors so service must to outstanding to keep up. Supermarkets like Asda, Safeway, Tesco and Waitross are known as the competitors. J-Sainsbury’s services over 11 million customers a week. The people who are likely to shop at Sainsbury’s are residents, people who live goes so they can drive there as there is a large area of free parking and other people can shop through there online shopping service.

The online shopping service is a very good way of doing your shopping because in the world now people are so busy working they have no time to go and do there shopping so by using this service they can shop quick and it can be delivered to you’re your door. Also it is useful for elderly or disabled customers. The industrial sector that J-Sainsbury’s operates in is the tertiary sector. This is because it is a retailer and retailing is one of the tertiary sectors. Task 4 Location in a business Every business locates where it thinks it will be successful.

Businesses need: > Staff to work there > Raw materials to produce finished products > Customers > To keep their costs as low as possible. > Transport Then their reasons for choosing a particular location start to make sense. Local Labour Supply All Organisations need to be able to employee staff. So it makes sense to locate in an area where people live. The factors, which influence a particular location, are often called local skills and the cost of labour. Local Skills In some parts of the country particular skills is a tradition.

If you wanted to set up a business making pottery you would be sensible to locate in the midlands, around Stoke-on-Trent. The cost of labour will always be more important to the business, which are labour intensive than those, which are capital intensive. A labour intensive firm is one, which needs a high number of staff- such as call centres and J-Sainsbury’s. Capital-intensive business is one where machines or technology do most of the work. Here the cost of labour is less important in the choice of location. The Cost of Premises The forces of demand and supply determine the cost of premises.

The greater the demand for premises- and the fewer there are available- the higher the cost. For that reason, premises in the city centres- especially in London- are much more expensive than the cost of premises in the suburbs or in the regions. Premises on major town centres shopping routes are always more expensive, than on secondary ” side streets”- simply because most shoppers stay on the high street. J-Sainsbury mainly has stores in major towns. Also there are high employments with surplus of skilled labours. Errol Anderson is situated at Elmgrove road, Harrow.

Errol has chosen this location, because it is close to Harrow Wealdstone tube station, so customers can use the train if their car is in repair and they don’t have another car. The second reason why Errol Anderson motors is situated in Harrow because it is close to customers. People, who live in these houses that have car problems with their car, can visit Errol Anderson Motors to get their car repaired, as he is close to them. Also Harrow is a very busy area so there is definitely going to be work to do. There are many J-Sainsbury’s stores around the UK. 60% of stores are opened in town-centres or on the edge of centre locations.

I think Sainsbury’s mainly open their stores in town-centres because it is a busy and hundreds of people come to shop and being in the town-centre people may get attracted to pop in the store. Sainsbury’s, that are open on edges of locations, are normally in big shopping complexes like Brent cross, which attract families because of free parking. Sainsbury’s that are open on the centre of locations are normally more busy as the store I have chosen which is on the town-centre. I have chosen to base my course work on the Sainsbury’s, which is on Kenton road.

I think Sainsbury’s have chosen to locate because it is very close to Kenton tube station. So for people who don’t have a car to drive there Can use the train. Also there is a bus stop right outside Sainsbury’s so customers have a choice of using the bus or train. It is on the side of a main road so everyone can see the building. There is also a big car park right in front of J-Sainsbury’s so it is convenient for people who may wish to drive there. These are some factors, which attract customers. You can see the map where you can see the store, the station and the roads.

Another reason why J-Sainsbury’s may have chosen their location is because it is on a busy road where lots of people pass by and it is on the road of a residential area so this will boost the amount of people shopping in Sainsbury’s. Sainsbury’s is the only big supermarket on Kenton road, so this means that prices of products will be cheaper than a little shop because the little shop will need to make every much profit they can so prices of products will be higher and J-Sainsbury’s can make savings by buying in bulks from suppliers. This is called economics of scale.

The location of J-Sainsbury’s was an appropriate one because there are plenty of customers, as there is a lot of family housing Kenton road is very busy and there is a train station near to. There are plenty of customers for J-Sainsbury’s. The customer/consumer buying habits is very high in this area because there are plenty of other shops for these people to shop at. This factor may have also influenced J-Sainsbury’s location. Errol Anderson picked a location just off the High street and very close to Harrow tube station. Many customers shop at the High street so Errol picked a location where there are plenty of customers.

Again the customer/consumer buying habits are very high in this area, so this may have influenced Errol Anderson Motors location. There are some common factors between J-Sainsbury’s and Errol Anderson Motors; they both picked a location where there are as less competitors as possible. When there are fewer competitors, there is more chance that the customers will visit their business and of having a more profitable business. They both picked a location where customers can visit their business quickly and efficiently; (they both picked their location very near a tube station).

Some factors are different. Sainsbury’s picked a location where there are very few supermarkets and only some little shops which will not be a threat because of the prices they will be selling the products at, whereas for Errol, it doesn’t really matter if his business is near a supermarket, as long it isn’t near other motor repairing businesses. Both J-Sainsbury’s and Errol Anderson Motor are located either in or close to residential areas, which will provide both customers and suppliers for both businesses.

The company I have chosen is ‘J Sainsbury PLC’. J Sainsbury is a leading UK and US food retailer with interests in financial services and property. The group comprises Sainsbury’s supermarket and Sainsbury’s bank in UK and Shaw’s supermarkets in US Background of J Sainsbury Sainsbury sells quality food for their customers. They have invested in a range of products during the year. They have also improved and developed over 3,200 products. Sainsbury also have there own label brands that are best in the UK. Currently Sainsbury’s is working to develop offers not only on food but in clothing too.

Sainsbury’s provides clothing’s from Adam’s children’s wear, Jeff & Co and trial of home enhancements. Sainsbury’s are also working on developing their health and beauty department. They have also been in a trial with Boots health and beauty and pharmacy shops in six out of town stores. Now they are extending by further three stores. Sainsbury’s first store was opened in Drury Lane, London in 1869 by John James and Mary Ann Sainsbury. The business was built on offering customers the highest quality at the keenest price. In 1869 Sainsbury’s ranged 5 products and employed just 2 people.

Sainsbury’s now have over 450 stores across the UK, the larger of which range over 23,000 products. Sainsbury’s employ in the region of 142,000 people. Their goal is to be the UK’s first choice for food shopping. To achieve this, they need to provide their customers with outstanding quality, great service and value for money. The Service Promises of making the customer’s shopping experience easy, enjoyable and inspiring is central to their success. If the customers join them, they will provide them with ample training to help them deliver on their promise. Sainsbury’s is a PLC.

Sainsbury is basically located around the world, especially in the United States and United Kingdom. Sainsbury is a Public Limited Company (PLC), which means that an organization, which is owned and operated by the national or local government. PLCs are vary considerably in size from relatively small localized firms such as the world famous Caithness Glass Company based at Wick in Scotland, to very large national companies like Boots, British Telecom and Dixon’s, to international concerns like Shell, ICI, Ford and Unilever. These one sometimes owned by national government and others by local government.