The New Look clothing series is well-known, as the clothes symbolize the latest fashion; they get young women of 16 to 25-years old. The clothes are affordable and they make the customers look good, while at the same time creating an attractive atmosphere for the customers to acquire in. New Look sells clothes and accessories at prices which are typically 30% below traditional opponents, but with significantly more fashion content than the value competitors. Their product range has widened to add men's and children's wear. Average store sizes have increased with an investment in a new circulation centre to appeal to this. Subsequently, its customer basic increased significantly.
New Look comes with an active CSR policy and has appointed a Director of Corporate Social Responsibility accountable for all aspects of the group's technique for ethical trading, sociable responsibility, the surroundings and sustainability. In particular, a key focus at New Look is ensuring appropriate expectations of stock conditions for the staff of suppliers. New Look has been a person in the Ethical Trading Effort since 2003 and has followed the ETI Base Code for its Ethical Aims. THE BUSINESS has materially increased its investment and activity over quite a few years. New Look also offers clear regulations on environmentally sound, sustainable raw material sourcing, recycling, worker communication/rights and energy saving. (Apax, 2008)
This report depends on the study done about New Look; its customers, the company itself and its own activities. The study purported to understand the way the customers respond to the merchandise, what they value most about it and what they want to improve. In addition, it seeks to demonstrate how the company perceives its product and just how they provide it to their customers.
In order to get feedback from the customers, a quantative research was used. An paid survey at surveymonkey. com, consisting of 10 questions, some of them with several options in them, was conducted. (See Appendix 1)
Respondents were contacted via e-mail as a way of being directed to the web survey. The survey was kept open to responses for a week, to provide sufficient time for answering.
The customers were asked questions regarding their overall satisfaction with the shopping experience, the grade of the clothes they bought, why they choose New Look, their impression from the service in the stores, their thoughts and finally their recommendations. The study on the business, its daily activities and functions, their notion of what creates value for the customers and exactly how they deliver this was conducted by an interview with the senior manager at the New Look shop in London. Mr. S. Akther. The study was then finalised by getting in touch with the store professionals in the brand new Look shop in Tirana.
After having conducted the required research on the business, its customers and their relationship, the research could have been complete if these questions were asked:
How often the customers shop at New Look
What do they spend on average everytime they do
When are they probably to shop (holiday times, weekends, afternoons?)
Overall, the research conducted does show the general views of all customers and almost all of them concur of all questions.
Customers appreciate the elegant brand and the principal reason they choose to buy at New Look is due to the latest styles it provides.
They were also quite drawn to the atmosphere in the stores: purchasing is a good experience, as they have good music on the background, the stores are welcoming. It seems that the store management does indeed a good job in caring for the stores. Furthermore, customers find the windows displays record their eyes and it creates them go into the shops.
However, they don't think they are provided with an excellent service in the stores, ranking the service received from the staff as 'Good'
The customers also discover that almost all of them are pleased with the location of the stores and find the store easily accessible
Only 37% of the customers have tried shopping online, and the majority of them are pleased
Almost all of them stated they would buy at New Look again, with a tiny ratio not excluding the possibility of discovering what its rivals have to offer
The research shows that the vast majority of the customers decided that the quality of the clothes is high, and they have rated the worthiness of the clothes they have got purchased as very high.
The customers' only complaint was however related to the costs - they do not match their objectives; and feel they might not visit other rivals if the costs were lowered
The company does indeed really try to cover all the areas of customer value, however there continues to be room for improvement in customer support, availability, pricing
From the study and the mark market, the following factors contribute to customer principles:
Design of the clothes
Fashionable clothes, latest trends
Service received from the personnel while purchasing
Location of the store
Good design - clothes should catch the eye
Fashionable - from the latest catwalks
Good quality - resilient and reliable
When shopping at New Look, the client have chosen these 3 aspects as the methods that they first consider Because the product is fashion clothes, the principal motive is to buy an attire which shows the latest developments. They are also affected by the brand name which New Look retains, as brand can be an important guarantee of high quality
Price - realistic prices will encourage the customer to buy
The company that strengthens the worthiness of its products in the eye of customers gives it more costs options: it can boost prices to reflect that value or carry prices lower, which induces more customers to buy its product and expand unit sales volume level" (Hill and Jones, 2004)
Availability - customer would like to find its desired clothes
Customer Service -Customer satisfaction is desirable so as to achieve customer commitment because it is more cost effective to hold on to existing customers than to attract new ones (Kotler, 2003; Hill and Jones, 2004; Heineke, 2004).
Other - store location, store atmosphere
The concept of adding value is particularly important to the retail trade because retail customers are usually "value-driven" (Sweeney and Soutar, 2001).
"Retail organizations interact straight with consumers and rely on being able to provide goods and services which meet their needs and would like; therefore, vendors need to adopt a consumer orientation when considering strategically" (Turley and Chebat, 2002: p 127).
Jane Norman seeks to supply the best designs of clothes, and keep up with the latest trends. For example, the latest fashion season includes floral accessories into clothing, be it dresses, tops, shirts, skirts etc. That's the reason the company has created a product series by considering the latest fashion.
The company also recognizes that it must identify itself from its other challengers. That's the reason it has created a very unique store atmosphere, one that is very welcoming and attracts the clients.
Jane Norman has had a rapid development in its UK sites in the last years. This demonstrates it includes considered location as a significant factor in its earnings. Being positioned in the primary city centres, customers can feel nearer to the shop - that means that it is easier for the kids to buy at Jane Norman.
Jane Norman is also aware that it depends upon customer support - an unsatisfied customer will propagate the word which will weaken the client relationships. That's the reason it has committed to several training programs because of its employees to be able to make the best impression on the customers.
From the study, most customers thought that the clothes were priced unreasonably - the company should thus consider in more detail that customers may want to purchase a similar product at one of its competition in a cheaper price, for example opting for Primark instead. However, the Jane Norman supervisor expresses the view that creating value means more than just offering low prices. That's the reason why customers stay faithful to the brand and find they are offered other benefits when they shop at Jane Norman which cannot be provided by their customers. This principle has also been backed by Negley (1998), who has expressed the view that creating value means offering a pack of benefits that incentive customers compared to their expenses of time, money and energy.
The director also appears to know about the issues with online shopping. Not enough stock on the shops or no availability of products online causes dissatisfaction to the clients.
When developing their clothes, the designers provide the latest fashion sketches, and materials that may attract young women. The clothes were created in order to last for a long time, thus providing trustworthiness. Although a lttle bit pricey, the customer can make sure that the dress she has bought will be classy; she will be wearing the colours that represent the existing trends, and almost all of all, the dress will be of high quality. The materials found in creating that specific dress will be of the best quality, in order to guarantee that the product can be worn many times and will still look like its newly bought. The investment in the merchandise materials is a representation of the prices of the business.
Excellent product packaging can be considered a magnet to your store - packaging design can have the attention of a customer. That is why Jane Norman has grasped upon this concept to sell more products. The nice packaging is capable of building, creating and reflecting the brand. (Buxton, 2004). That is why it is providing bags that may capture the interest of some other clients and make the purchaser feel good.
In order to make sure that the business is performing well which customers are content with the grade of the merchandise they are offered, the business is thinking about measuring its client satisfaction. In doing this, it gains an additional perception into its products, people, customer service processes and exactly how they may compare to its other competitors. The information accumulated helps identify what specifically needs to be changed for customers to give the company more gains.
The first information the company gets is in the shop. After having possessed a shopping experience at New Look, the clients have the choice to complete a Visitor Opinions. The main items which New Look wishes feedback on are the store standards, home window displays, back again of house and security, product-related questions and action tips.
Next, they can gather information from customer comments and letters. To become provided with quantative data, the business conducts internet surveys, in which the customers are asked about their satisfaction with the clothes they have bought, the service they were provided in the shop, their overall shopping experience, what areas of the merchandise should be altered and comments of specific aspects they can improve on.
The company also conducts research on the customers' satisfaction by checking the amount of visitors who continue their online website, janenorman. co. uk and the number of customers who buy online, as well as the comments left on the website and other websites, websites, etc.
Not only does the company acquire feedback from the clients from different options, but they first of all work to make certain that the service and product they offer to the customer are of the best quality. That's the reason they follow the Operational Brilliance system.
The aim of the functional brilliance system is to evaluate the New Look business and operations to constantly deliver the best benchmarks. Emphasis is placed upon calculating their criteria and ensuring the specifications are fully comprehended at every level. Furthermore, the intention of this analysis process is to attain results by creating effectively written action packages, when they see opportunities to boost in any of the business perspectives.
Jane Norman is likely to broaden its stores on a global bottom part. However, this quick development means that the business needs to concentrate more on the culture of those foreign marketplaces. Many researchers claim that culture plays a huge role in customersё objectives of services and thus, their perceptions of those services. The variations in culture between countries mean that if the business does not echo the country's culture, you won't be welcomed in that country. For example, the eastern countries are more likely to want the outlets to most probably until late time, or for some other behaviour in customer support, or the design of the clothes needs to matches the neighborhood country's perception of fashion, or possibly the customers will get the prices unacceptable. It really is thus suggested a deep evaluation of the foreign market is performed before widening in new countries
The value chain concept can be helpful in understanding how value is established or lost. The value chain describes the actions within and around an company which together create a product or service
The store team work hours to suit the organization. To be able to ensure sufficient operating of the store, a good balance of day to day coverage must be performed. Due to the nature of the business enterprise, managers and associate managers are required to take Monday, Tuesday or Wednesday as their day off. As the weekend is the busiest trading amount of the week, it makes sense for 2 associates of management to be in control of the stores. Management are anticipated to work night time.
Flexibility in time will be expected during peak trading hours, such as Xmas, summer holidays and sale intervals, when trading time may vary. In order to cover the depth of the work during these occupied periods, temporary personnel might need to be employed. Supervisors, full time and part time staff get paid overtime all night functioned exceeding their contracted hours.
It is in the company's best interests to keep its employees satisfied. That is why employees are offered discount rates on the clothing. For example, the branch director emerges 50% discount, the concession professionals, assistant director and branch supervisor can be found 33% discount and finally, the concession supervisor and sales assistant reap the benefits of a 25% discount.
Also, each member of staff is given an allowance and obtains a 75% discount on that amount. The consistent allowance can be acquired 4 times per year and amounts from 200 for the branch supervisor, to 50 for a part-time sales assistant. Employees can assert their homogeneous allowance one month after having provided their service.
Furthermore, to praise long service, branch managers with five full year's occupation with the business are entitled to 25 days getaway per yr.
In order to develop the team employed in the brand new Look Stores, an appraisal system has been applied. Which means that each member of staff, prior to commencing their work, obtains induction training from an associate of Store Management. Following the first appraisal, further appraisals are conducted at 6 month intervals. Appraisals offer an chance to highlight worthwhile work and show the gratitude, or alternatively, showing any areas in which the employee needs to improve on. It offers the team a chance to speak easily about their views and concerns, their success and ambitions and it also gives the professionals the possibility to clearly identify their prospects and clarify and recognize objectives and activities.
The management training program supplies the future managers with intensive training on all areas of the job. Working out program includes the next:
Back Office training
Merchandising and displays
Daily cash control on the right up until displays the physical movements of cash, Gift Vouchers, etc. All bank are done from the safe. The following figure explains how the cash control works at New Look.
Once the amount of money from the night before has been banked and an associate of management has inspected it, the money is taken to the trunk Office.
A safe reconciliation models the prices of the safe tenders to whatever is entered. Once a Safe Reconciliation Article is published, the expected amount, real amount and variance for every single tender will be shown.
When a worker needs to get cash from the right up until for any reasons, s/he registers the pay out on the till. A pay in is only ever done whenever a staff member will get change from the lender, that will usually be achieved only once a week.
Staff members should pickup all the money they may have made that day and put it in the safe.
If they wish to purchase, customers can pay by cash, credit/debit cards, cheques, or they may use gift vouchers. New Look Present Vouchers come in 5, 10 and 25 denominations. The vouchers are released by the top office in books where each book includes 10 vouchers and each voucher has a unique voucher number on the change.
Customers who reside outside the EU can be granted VAT forms. The full total value of New Look items purchased must be 50 or higher. The VAT refund is came back to the client by cheque.
Process technology addresses the machines, equipment and devices that induce and/or deliver products and services. The distinction between these is for convenience only as new technology integrate the three of these, and they're called integrating solutions. (Slack et al, 2007)
New Look uses Electronic Point of Sales technology, which steps shoppers, products and information.
EPOS processes the clients with the addition of up their acquisitions, processing their visa or mastercard and providing a receipt which details all the acquisitions and prices. During deals you can record details to form historical and analytical buying developments of your visitors you can use for marketing and promotional targeting
EPOS also functions the materials from unsold items to sold items, improvements stock files and creates purchase orders to replenish securities. You can scan barcodes
Lastly, EPOS can provide information on control systems and financial systems, the way the products are doing; slow-moving items, out of stock items and profitability.
New Look has also create its online website, where it displays the clothes, and allows the clients to purchase them. The usage of internet-based technology which helps existing business processes or to create entirely home based business opportunities, is recognized as e-business (Slack et al, 2007). The benefit of online selling is the fact that it increases the number of customers that can be reached and the amount of detail that can be provided on the products. Given that only 37% of customers use online shopping, this facet of value chain is still not greatly impacted, as it is currently used to mainly support the prevailing business operations.
When recruiting, the prospects are carefully chosen, as they'll signify the image of New Look. The applicants must have a interest for fashion and the brand, and really should be aware of the latest fashion developments. The two main attributes they must have is common sense and customer concentrate. These are naturally exceptionally important. Specifications must be held high, as the business depends on customer support.
At peak intervals, the business may look for more staff or hire part-time staff in order to better manage the increased quantity in customers.
In order to be closer to its customers and provide them with all the current assistance they might need, New Look has involved a round-the-clock service to the retailers with no need to increase its team any more. It did so by participating Retail Assist, a retail-solutions and services providers to offer an out of hours Help Desk to aid most of its UK stores.
This strategy has helped New Look in many ways. Firstly, it offers minimised disruptions at point-of-sale brought on by issues with store systems. Precisely the same degree of service can be sent to the customers regardless of the time of day. The remote monitor is accountable for the key event schedules over the weekends including store polling and key over night batch procedures.
New Look is wanting to be a global company. With an instant expansion in the UK and Europe, it is now setting new focuses on. However, this will require the company to rethink and reconfigure its sourcing and procurement strategies.
In a worldwide environment, retailers will have to reconsider the positioning of warehouses, the loan consolidation factors they use to go merchandise, connections with service providers, and other third-party service providers, the use of trade zones and trade desire agreements. All these decisions should be been able so that they can bring the maximum profit. In seeking to expand in overseas markets, it will also be noted that the source chains need to be managed in line with the changing regulations and other polices, in order to avoid delays. (SAP AG, 2007)
It will now be seen how New Look has already established to react to such innovations in the global landscape. New Look used to have three hubs in London. However, its ambition to extend its market has damaged its activities in procurement and supply chain. That is why the fashion chain has centralised its procedures by setting up a global circulation centre. This centre is responsible to send out to the 225 New Look stores and it are designed for up to 100. 000 items a day, meaning it is able to ship all apparel received by the next day. This is a significant improvement as stores can now have delivery every day.
A huge area of the building is dedicated to the handling, storing and picking and packaging of products. Another part has been built in order to store replenishment stock and to service the international and franchise picking functions. This is where the delivery of the requests made online begins.
In creating value for the client, retail stock and stores management is quite important. According to Harnett (1998) "Individuals are drawn to these stores, not by the broad selection, but by the advantages of shopping made simpler. "
The 'atmospherics' in a store is an sign of the store's concentrate on customer. Atmospherics may influence: "the rate at which consumers move in one point to another in the store, the amount of well-being sensed by the personnel working in the planet, the full total sales revenue, sales design and kind of product sold, the image the consumer has of the store and its own products" (Gilbert, 2003).
Firstly, the store itself is the first point of which the company presents its image. Therefore, it is very important that image displayed is high.
Firstly, the store itself is the first point at which the company presents its image. Therefore, it is crucial that this image symbolized is high. The two mottos which Jane Norman uses in appealing to customers to its stores are thus to drive sales through merchandising also to create impact. Emphasis is put on the best-sellers: a certain line can appeal to more customers and that is why they should be more accessible and visible to the customers. Employees also pay attention to stock the right amount of clothing on each device. As child as the items become depleted on the main element locations, it is vital that they are replaced with something equally good in providing power.
The fashion business is focused on bringing in the customers' eyes. That is why retailers should truly understand their consumers' choices and desires. That is critical in order to ensure that the right product is designed and delivered to a specific market. The business must therefore understand factors such as body shapes, size ranges, fabric and colour tastes, local climate conditions, and social factors to be able to decide which is best design that catches the female group's attention. The main element to the retailer's success will be in delivering these new products, lines and brands to the marketplace faster. In order to keep up with the ever before changing developments and needs, retails should give attention to the high-margin and high-growth opportunities to be able to stay before competition. The business needs to emphasize speedy design cycles and fortify the collaboration with suppliers, especially those who understand the prospective consumer market. (SAG SA, 2007)
The designers working on the New Look clothing collection will have to connect their technical specs and line mattress sheets, including creation and delivery requirements, with the factories assembling the completed goods. Furthermore, for New Turn to be able to bring the new clothing brand every changing season, seasonal calendars need to found in order to check out a time-and action workflow. The clothing range must be finished on time, which will be achieved by making certain all stakeholders involved in the design process, such as designers, creation planners, development factories, etc. , meet up with the critical deadlines as proven on the calendars.
A higher level of customer support means that the employees are more likely to be able to take customers' order if an item they are seeking is out of stock. This usually requires the help of the Customer Service Team, which will get out stock availableness or even another delivery date for just about any style for a person. They'll also have the ability to check when something of stock arrives in to the store to advise the customers of any delivery time.
It all gets more complicated when the topic of online shopping comes up. Technology has allowed business with an online occurrence with a transactional website where in fact the customers can order their favourite products or they can decide on them up to get. Online shopping has almost become area of the customer experience; but it creates challenges in regards to to the resource chain activities. The web channel may develop a risk of allowing down the brand image and lose the customer relationship. Supply chain transparency continues to be a problem for retailers, yet the customer desires the best experience and quick delivery.
New Look offers its web business as well on www. newlook. com. The research shows that customers do believe that they cannot find enough stock in stores, after having examined their favorite products online. This is due to fact that each store has different locations, sizes, amounts and variety of clothing. It is sometimes the case that customers may be taking back goods to a store it doesn't handle that range, so the employees cannot allow the return. This will likely consequently create trouble in controlling repayment, and measuring of costs and performance.
New Look has contacted Amethyst, a logistic service provider. Employed in a job team, the team created a finish to get rid of fulfilment solution. This has created New Look new opportunities in appealing to more customers and creating customer loyalty. The new channel allows the company to increase its brand and gain more revenue from internet sales.
When purchasing, the customer will maintain direct contact with the staff and there will be many situations when the client will demand support or additional help in her purchase. That is why customer service is vital to create a good impact. Regarding to Gilbert (2003) the service of the retail procedure is judged through five sizes:
Tangibles - such as uniforms, mirrors, appropriate rooms;
Reliability -the capacity to perform the service dependably and effectively;
Responsiveness - by reacting regularly with the right degree of knowledge and courtesy;
Empathy - confirmed by giving a caring, individualized service performance for customers;
Assurance - to provide credibility that the service standard will be upheld.
It is important to the brand new Look stores to provide such service to its customers. Because the research has confirmed that the price expected by the clients will not match the true pricings, a good customer service can be used to overshadow these complaints. In the event the five aspects mentioned previously are included in the service, then the customer may overlook the price and focus more on the satisfaction received by the shopping experience. That is why, by getting customers with good customer service, they'll not visit other competitive outlets.
New Look has create a person Service Department. The primary role of the customer service section is to deal with complaints from the clients, finding solutions and keeping the clients satisfied. They can inspect faulty goods that are directed for inspection and can discuss the nature of the mistake. Each week it is someone's responsibility in the store to chase up the client returns. The things are the customer's property and thus the CSM works towards providing a quick and reliable service.