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Agrana Fruit

This Retailer Analysis is on

Agrana Fruit
United States
© DataGroup

was established in 1986, and has been a brand since 1995.


www.dg-di.eu
Agrana Fruit - United States

Agrana Fruit
United States

Agrana Fruit

CONTENTS

Indicates a dynamic link to the online data

Indicates a dynamic link to an Excel spreadsheet

Indicates a dynamic link to an Access database

Indicates a dynamic link to a PDF document

Indicates a standalone installable programme

CONTENTS............................................................................................................................................. 2
Retailer Analysis - Introduction ............................................................................................................. 20
Structure of this report ....................................................................................................................... 20
1. The Retailer Report Analysis ................................................................................................ 20
Products ......................................................................................................................................... 20
Trading Area .................................................................................................................................. 20
Retail Competitors ......................................................................................................................... 21
Retailer ........................................................................................................................................... 22
Operations ..................................................................................................................................... 22
Buyers & Consumers ..................................................................................................................... 23
2. The Retailer Competitive Environment ................................................................................. 24
Products ......................................................................................................................................... 24
Trading Area .................................................................................................................................. 24
Retail Competitors ......................................................................................................................... 24
Retailer Operations ........................................................................................................................ 24
Buyers & Consumers ..................................................................................................................... 24
3. Market Research ................................................................................................................... 25
4. Business Planning ................................................................................................................. 25
SECTION 1 ........................................................................................................................................... 26
Analysis ................................................................................................................................................. 26
Part A : Base data on the Retailer ................................................................................................... 27
Part B : Financial Data..................................................................................................................... 42

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Part B.1 : Management figures ................................................................................................ 42

Part B.2 : Balance Sheet and Management Accounts ............................................................ 43


Part C : Product Offering ................................................................................................................. 46
Main Product Lines ........................................................................................................................ 46
In-House Brands ............................................................................................................................ 46
Third Party Brands ......................................................................................................................... 46
Ancillary and Add-Value Products & Services ............................................................................... 46
Part D : Retail Locations .................................................................................................................. 47
Demographics & Lifestyle Analysis ................................................................................................ 47

Neighbourhood Analysis ........................................................................................................... 55

Site Analytics ............................................................................................................................ 56

Footfall ...................................................................................................................................... 57

Conversion Rates ..................................................................................................................... 58


Part E : Advertising, Marketing, & Events ....................................................................................... 59

Survey of Advertising Services used ....................................................................................... 59

Consumer Evaluation of Advertisements ................................................................................. 62

Focus Panels ............................................................................................................................ 62

Consumer Opinion of Advertising Effectiveness ...................................................................... 64

Advertisement Evaluation Survey ............................................................................................ 65

General Customer Surveys - Advertising Perceptions ............................................................. 66

Consumer Marketing Test ........................................................................................................ 66

Effectiveness of marketing initiatives ....................................................................................... 68

Corporate Marketing Evaluation ............................................................................................... 68

Part F : Store Experience ........................................................................................................... 69

Exterior Store Presentation ...................................................................................................... 76

Interior Store Presentation ........................................................................................................ 79

Ambience & Layout .................................................................................................................. 81

POS & Displays ........................................................................................................................ 82

Lighting ..................................................................................................................................... 83

Store Facilities .......................................................................................................................... 83

Store Image .............................................................................................................................. 84

Conversion Rates ..................................................................................................................... 84

Overall Store Evaluation ........................................................................................................... 85

Store Personality Survey .......................................................................................................... 86


Part G : In-store Customer Purchasing Behaviours ........................................................................ 87
In-store and Impulse-buying Decisions.......................................................................................... 87

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Purchasing Behaviours ............................................................................................................. 87

Consumer Store Behaviours .................................................................................................... 88

In-store Consumer Decision Making ........................................................................................ 89


Consumer Surveys ........................................................................................................................ 90

In-Store Purchase Process and Evaluation Survey ................................................................. 90

Shopper Involvement Study ..................................................................................................... 91

Store Entry Surveys .................................................................................................................. 93

Store Audit ................................................................................................................................ 93

Supplementary research .......................................................................................................... 94


Part H : Customer Handling............................................................................................................. 95

First Impressions Customer Survey ......................................................................................... 95

Queue & Waiting handling ........................................................................................................ 95

Interface & Dialogue ................................................................................................................. 96

Staff Response & Attitude to Customers .................................................................................. 96

Information Provided to Customers .......................................................................................... 97

Proficiency ................................................................................................................................ 97

Staff Interaction with Customers .............................................................................................. 98

Customer Complaint Handling ................................................................................................. 99

Product Returns & Refund Policy ............................................................................................. 99


Part I : Selling Strategies ............................................................................................................... 100

Stores ..................................................................................................................................... 100

Online Selling ......................................................................................................................... 100

Web Presence ........................................................................................................................ 102

Website Design ...................................................................................................................... 103

Website Information Quality ................................................................................................... 104

Website Customer Evaluation ................................................................................................ 104

Website Visitor Follow-up ....................................................................................................... 106

Website Feedback .................................................................................................................. 107

Web Demographics ................................................................................................................ 109

Internet Shopper ..................................................................................................................... 110

Online Purchases ................................................................................................................... 114

Multi-channel Retail Distribution ............................................................................................. 117


Stand-off Online Sites .................................................................................................................. 118

Events & Promotions .............................................................................................................. 119


Loyalty Schemes.......................................................................................................................... 119

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Social Media ................................................................................................................................ 120


Part J : Pricing & Price Points ....................................................................................................... 121

Pricing Study .......................................................................................................................... 121


Pricing Strategies ......................................................................................................................... 123

Strategies ................................................................................................................................ 124

Price Discounting .................................................................................................................... 124


Impact of Unsustainable Pricing .................................................................................................. 125

Stagnant Prices ...................................................................................................................... 125


Inflation ........................................................................................................................................ 126
Profit Margins ............................................................................................................................... 126
Profitability ................................................................................................................................... 126

Customers Base ..................................................................................................................... 126

Differential Value .................................................................................................................... 127


Future Strategies ......................................................................................................................... 128

Future Pricing Strategies ........................................................................................................ 128


Preparation for Future Price Changes ......................................................................................... 128
Part K : Retailer Performance Analysis ......................................................................................... 129

Store Managers Survey .......................................................................................................... 129

Customer Satisfaction Survey ................................................................................................ 131


Inventory Control.......................................................................................................................... 132

Inventory Balancing Act .......................................................................................................... 132

Operational Performance Analysis ......................................................................................... 133

Retail Performance Intelligence ............................................................................................. 138

Business Performance Comparisons ..................................................................................... 138

Shopper Numbers and Quality ............................................................................................... 138

Optimised Store Performance ................................................................................................ 139


Site Potential & Floor Mapping .................................................................................................... 139
Comparative Site Performances .................................................................................................. 139
Physical Operations at individual sites ........................................................................................ 139

Technology Usage .................................................................................................................. 140


Technology Spending & Customer Service ................................................................................. 141
e-Commerce and Cross-channel Sales ....................................................................................... 141

Development of Cross-channel Sales .................................................................................... 141

Showrooming .......................................................................................................................... 142

Part L : Strategies .................................................................................................................... 145


Expertise and Specialisation ........................................................................................................ 146
Data Mining .................................................................................................................................. 146

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Agrana Fruit - United States

Retail Store Evolution .................................................................................................................. 146


Bespoke Service .......................................................................................................................... 146
Collaboration ................................................................................................................................ 147
Uniqueness .................................................................................................................................. 147

Market Leadership .................................................................................................................. 147

Part L.1 : Corporate Retail Strategies ...................................................................................... 148

Operating Strategies ............................................................................................................... 148

Cash and Working Capital ...................................................................................................... 149

Retailing Operations ............................................................................................................... 150

Controls .................................................................................................................................. 152

Stakeholder Management ...................................................................................................... 152


Value Preservation....................................................................................................................... 152

eCommerce & Multi-Channel Retail Strategy ......................................................................... 153


Part L.2 : Retail Marketing Strategy .............................................................................................. 154

Elements in Retail Strategy .................................................................................................... 154

Elements in the Market Analysis ............................................................................................ 155

Part L.3 : Strategic Planning in Retailing ................................................................................. 159

Overview of Strategic Retail Management ............................................................................. 159

Situation Analysis ................................................................................................................... 160

Organisational Mission ........................................................................................................... 160


Ownership and Management Alternatives ................................................................................... 160

Goods/Service Categories ...................................................................................................... 161

Management Abilities ............................................................................................................. 161

Financial Resources ............................................................................................................... 162

Time Constraints .................................................................................................................... 162

Objectives ............................................................................................................................... 162

Sales ....................................................................................................................................... 163

Profit ....................................................................................................................................... 163

Satisfaction of Stakeholders ................................................................................................... 163

Image Positioning ................................................................................................................... 164

Selection of Objectives ........................................................................................................... 165

Checklist ................................................................................................................................. 165

Identification of Consumer Characteristics ............................................................................. 166

Overall Strategy ...................................................................................................................... 166

Controllable Variables ............................................................................................................ 166

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Store Location ........................................................................................................................ 167

Managing the Business .......................................................................................................... 167

Merchandise Management and Pricing .................................................................................. 168

Communicating with the Customer ........................................................................................ 168

Uncontrollable Variables ......................................................................................................... 168

Consumers ............................................................................................................................. 169

Competition ............................................................................................................................ 169

Technology ............................................................................................................................. 169

Economic Conditions .............................................................................................................. 169

Seasonality ............................................................................................................................. 170

Legal Restrictions ................................................................................................................... 170

Integrating Overall Strategy .................................................................................................... 170

Legal Constraints on Retailers ............................................................................................... 170

Tactical Decisions ................................................................................................................... 172

Controls .................................................................................................................................. 173

Feedback ................................................................................................................................ 173


Part L.4 : Recession Strategy ........................................................................................................ 174
Economic Conditions ................................................................................................................... 174
Consumption Smoothing & Product Substitution ......................................................................... 174

Managing Inventories & Costs ............................................................................................... 175


Rising Costs & Raising Prices ..................................................................................................... 177

Staff Costs .............................................................................................................................. 177

Checklist ................................................................................................................................. 178

Part L.5 : Strategic Planning in a Global Retail Context .......................................................... 179

Planning Process and Global Retailing .................................................................................. 179


Opportunities and Threats in Global Retailing ............................................................................. 180

Opportunities .......................................................................................................................... 180

Threats .................................................................................................................................... 180

Standardisation ....................................................................................................................... 180

Factors Affecting Global Retailing Strategy ............................................................................ 181

Developed Markets ................................................................................................................. 181

Developing Markets ................................................................................................................ 181


Market Entry Decisions ................................................................................................................ 182
Part M.1 : Retailing Characteristics ............................................................................................... 183

Average Value of Sales Transaction ...................................................................................... 183

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Unplanned or Impulse Purchases .......................................................................................... 183

Retail Store Experience .......................................................................................................... 183

Application of Retail Strategies .............................................................................................. 184

Application of Retail Concepts ............................................................................................... 185

Total Retail Experience .......................................................................................................... 186


Customer Service ........................................................................................................................ 186

Relationship Retailing ............................................................................................................. 187

Part M.2 : Relationships in Retailing ........................................................................................ 189

Value & the Value Chain ........................................................................................................ 189

Value-Oriented Retailing Checklist ......................................................................................... 192


Part M.3 : Customer Relationships ................................................................................................ 193

Customer Relationships ......................................................................................................... 193

The Customer Base ................................................................................................................ 193

Core Customers ..................................................................................................................... 194

Customer Service ................................................................................................................... 195

Developing a customer service strategy ................................................................................ 196

Planning individual customer services ................................................................................... 196

Customer Satisfaction ............................................................................................................ 197

Loyalty Programs .................................................................................................................... 197

Channel Relationships ............................................................................................................ 198

Relationship Building: Goods -v- Service Retailers ................................................................ 199


Ethics & Relationships in Retailing .............................................................................................. 200

Ethics ...................................................................................................................................... 201


Social Responsibility .................................................................................................................... 201

Consumerism ......................................................................................................................... 202


Part M.4 : Planning Aspects of Service Retailing .......................................................................... 204

Successful service retailing .................................................................................................... 204

Performance of service retailers ............................................................................................. 204


Part N.1 : Supplemental Customer Survey Data ........................................................................... 206

Survey Respondent Demographics ........................................................................................ 206

Brand Survey .......................................................................................................................... 209

Retail Store Brand Personality ............................................................................................... 210

Comparative Retail Store Evaluation ..................................................................................... 210

Retail Store Evaluation ........................................................................................................... 211

Customer Surveys .................................................................................................................. 211

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Customer Satisfaction ............................................................................................................ 216

Customer Voices .................................................................................................................... 216

Product Satisfaction and Customer Retention ....................................................................... 217

Customer Satisfaction: Product .............................................................................................. 218

Product Ownership ................................................................................................................. 219

New Product Concept Evaluation and Pricing Study ............................................................. 220

Product Concept Test ............................................................................................................. 222

Product Survey ....................................................................................................................... 223

Product Purchases ................................................................................................................. 225

Customers’ Electrical / Electronic Product Purchases ........................................................... 227

Customers’ Fashion Demographic and Retail Clothing Shopping ......................................... 233

Customers’ Fashion Attitudes ................................................................................................. 234

Shopping Life Style Battery .................................................................................................... 235

Supermarket & Food Shopping Attitudes ............................................................................... 236

Supermarket & Food Store Selection Criteria ........................................................................ 237

Where would you shop for...? ................................................................................................. 238

Service Concept Test ............................................................................................................. 239

Customer service evaluation and feedback survey ................................................................ 240

Customer Service Evaluation ................................................................................................. 241

Customer Support Satisfaction Survey .................................................................................. 245

Product or Technical Services Evaluation .............................................................................. 246

Satisfaction: Product & Technical Documentation ................................................................. 248

Customer Services Evaluation ............................................................................................... 249

Website Evaluation ................................................................................................................. 257

Online Retailer Evaluation ...................................................................................................... 258

Purchasing on the Internet ..................................................................................................... 258

Internet Habits and Uses ........................................................................................................ 260


Part N.2 : Supplemental Retail Trade Survey Data ....................................................................... 262

Business Proficiency of the Company .................................................................................... 262

Organisational Satisfaction – Internal ..................................................................................... 263

Sales Staff Training Evaluation .............................................................................................. 264

Store Manager’s View of Brand Perception by Customers .................................................... 265

Retailer Survey on their e-Commerce .................................................................................... 266

Company Web Building Activities ........................................................................................... 270


SECTION 2 ......................................................................................................................................... 273

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Competitive Environment .................................................................................................................... 273


Competitive Environment .................................................................................................................... 274
Monthly Consumer Spending .......................................................................................................... 274
Market Opportunity .......................................................................................................................... 276
Analysis of the development of the retail trade and its life cycle ................................................. 276
Added Value and Transaction Costs across the Supply Chain ................................................... 277
Retailers per 10,000 inhabitants .................................................................................................. 278
Store Revenue per Square Meter per annum (US$) ................................................................... 278
Average Revenue per Store per annum (‘000) ............................................................................ 279
Average Store Sales Area (Square Meters) ................................................................................ 279
Existing Distribution Channels ..................................................................................................... 280
New Distribution developments ................................................................................................... 281
Online Shopping – Purchases per month .................................................................................... 282
Distribution Policies & Strategies ................................................................................................. 283
Retail Trade Life Cycle and Developments ................................................................................. 286

Future Prospects and Development of the Retail Trade ....................................................... 287

City and Town analysis ......................................................................................................... 287


Wholesaler, Trade Buyer, Retailer and Store Performance Surveys .......................................... 288
Products ....................................................................................................................................... 288
Operations ................................................................................................................................... 288
Buyers & Consumers ................................................................................................................... 289
Trading Area ................................................................................................................................ 289
Competitors .................................................................................................................................. 290

Distribution Channel Surveys ............................................................................................... 290

Decision Makers Surveys ..................................................................................................... 291

Industry Performance ........................................................................................................... 291

Value by Product Sectors ..................................................................................................... 292

City / Town Market Value ..................................................................................................... 292


Consumer Attitudes ..................................................................................................................... 293
Products ....................................................................................................................................... 293
Operations ................................................................................................................................... 293
Buyers & Consumers ................................................................................................................... 294
Trading Area ................................................................................................................................ 294
Competitors .................................................................................................................................. 295

Consumer Surveys ............................................................................................................... 295

Industry Performance ........................................................................................................... 296


Competitive Factors ......................................................................................................................... 297
Retail Brands ............................................................................................................................... 297

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Brands Price Differentials ............................................................................................................ 298


Product Price Differentials ........................................................................................................... 299
Product Value Positioning ............................................................................................................... 300
Product Pricing ................................................................................................................................ 301
Product Quality ................................................................................................................................ 302
Product Specifications ..................................................................................................................... 303
Product Target Audiences ............................................................................................................... 304
Product Volumes ............................................................................................................................. 305
Product Utility .................................................................................................................................. 306
Product Maintenance ....................................................................................................................... 307
Product Merchandising .................................................................................................................... 308
Product Advertising ......................................................................................................................... 309
Brand Positioning Tactics & Strategy .............................................................................................. 310
Current Tactical Brand Model ...................................................................................................... 310
Strategic Brand Objectives .......................................................................................................... 311
Functional Positioning - Symbolic Positioning - Experiential Positioning .................................... 312
Customer Value Propositioning ................................................................................................... 313
Value Concept & Positioning ....................................................................................................... 314
Brand Differentiation Propositions ............................................................................................... 315
Key Selling Messages.................................................................................................................. 316
Communications Tactics .............................................................................................................. 317
Advertising Tactics ....................................................................................................................... 318
Media & PR Tactics ..................................................................................................................... 319
Web & Online Tactics .................................................................................................................. 320
Point of Sale Tactics .................................................................................................................... 321
Merchandising .............................................................................................................................. 322
Product Display ............................................................................................................................ 323
Market Entry Management Factors ................................................................................................. 324
Distribution ................................................................................................................................... 324
Retail Level .................................................................................................................................. 324
Brand Competition ....................................................................................................................... 325
Value ............................................................................................................................................ 325
Location ....................................................................................................................................... 326
Supply Chain ................................................................................................................................ 326
Nature of Competition .................................................................................................................. 327
Supplier Price Differentials .......................................................................................................... 327
Retailer Reaction ......................................................................................................................... 328
Supplier Reaction......................................................................................................................... 329
Conclusion ................................................................................................................................... 329
Distributors – Market Entry choices ............................................................................................. 332

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Retail Presence – Market Entry choices ...................................................................................... 333


Distribution Channel: Advantages – Disadvantages ................................................................... 334
Market Entry options for Domestic Brands ...................................................................................... 335
Market Entry options for Established or Global Brands .................................................................. 336
Market Entry Features ................................................................................................................. 337
Start-up Costs .................................................................................................................................. 338
Start-up Costs, Initial Investment and Product Launch Balance sheet ....................................... 338
Inventory Costs ............................................................................................................................ 338
Brand Store Start-up Costs .......................................................................................................... 339
Independent Store Start-up Costs ............................................................................................... 340
Brand In-Store Start-up Costs ..................................................................................................... 341
Distributor / Exclusive Wholesaler Sign-up Costs ....................................................................... 342
Start Times Weeks: Brand Store ................................................................................................. 343
Start Times Weeks: Independent Store ....................................................................................... 344
Start Times Weeks: Distributor / Exclusive Wholesaler ............................................................... 345
Economies of Scale with multiple Stores ..................................................................................... 346
Cash Flow, Profit & Loss, Balance Sheet, Project Financial Analysis ............................................ 347
12 Months Cash Flow Analysis .................................................................................................... 347
First 12 months and First 3 years Profit & loss Account .............................................................. 348
1-7 Years Balance Sheet ............................................................................................................. 349
10 Years Project Financial Analysis ............................................................................................ 350
SWOT Analysis ............................................................................................................................... 351
SWOT analysis by type of Market Entry ...................................................................................... 351
Entry via Company Owned Retail Stores .................................................................................... 351
Entry via Domestic Retail Joint Venture ...................................................................................... 351
Entry via National Franchise Licensee ........................................................................................ 352
Entry via Intensive Individual Franchising.................................................................................... 352
Entry via Exclusive National Distributor ....................................................................................... 353
Entry via Intensive National Distribution / Wholesaling ............................................................... 353
Competitive Analysis ....................................................................................................................... 354
Retail Brands ............................................................................................................................... 354
Market Penetration Prospects ......................................................................................................... 355
Advancing into the target markets ............................................................................................... 355
Brand Concept ............................................................................................................................. 356
Brand Equity ................................................................................................................................ 356
Customer Based Brand Equity .................................................................................................... 357
Brand Knowledge......................................................................................................................... 357
Substantial Brand Knowledge & Awareness – All Brands ........................................................... 357
Brand Equity Model...................................................................................................................... 358
Substantial Brand Loyalty – All Brands........................................................................................ 359

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Substantial Brand Quality –v Price Perceptions – All Brands ..................................................... 360


Brand Knowledge Components ................................................................................................... 361
Brand Resonance Components ................................................................................................... 361
Brand Resonance ........................................................................................................................ 362
Qualitative Brand Research ......................................................................................................... 364
Qualitative Brand Identifiers ......................................................................................................... 364
Marketing communication applied to branded products .............................................................. 365
The Brand Image in the marketing communication process ....................................................... 366
The Store Image in the marketing communication process ........................................................ 366
Consumer confidence and consumer markets ............................................................................ 367
Consumer Confidence Index ....................................................................................................... 367
Consumer Confidence ................................................................................................................. 367
Consumer Attitudes and Perceptions which impact Brands ........................................................ 369
% Usage & Purpose of purchases ............................................................................................... 370
Celebrity endorsement ................................................................................................................. 371
Relative Ranking Criteria and Consumer Habits for Product Purchases .................................... 372
Brand Selection ............................................................................................................................ 372
Price over Brand Loyalty amongst Buyers................................................................................... 373
Purchase Drivers for Buyers ........................................................................................................ 373
Domestic Brands -v- Foreign Brands ........................................................................................... 374
What do consumers want in a branded product? ........................................................................ 375
What can National brands do to counter the established Global brands? .................................. 377
How can National brands do better than the Global brands? ...................................................... 378
Novel marketing methods to distinguish oneself from the competition ....................................... 379
Unique Brand Offerings ............................................................................................................... 380
New and Untapped Market Demand ........................................................................................... 381
Niche Markets .............................................................................................................................. 381
Brand Superiority ......................................................................................................................... 382
Building Heritage Brands ............................................................................................................. 382
Brand Resonance ........................................................................................................................ 383
Brand Persistence ........................................................................................................................ 384
Brand Development Opportunities ............................................................................................... 386
Industry Checklist......................................................................................................................... 387
Product Design and Merchandising ............................................................................................. 387
Performance Indicators ................................................................................................................ 388
Application of Design – Performance Factors ............................................................................. 389
Industry Performance Indicators .................................................................................................. 389
Performance Indicators for brand selection, development, and distribution ................................ 390
Performance Indicators for merchandising strategies ................................................................. 391
Market Strategy Insight .................................................................................................................... 392

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Market Entry Possibilities and Criteria ......................................................................................... 392


Market Entry Difficulties ............................................................................................................... 392
Market Potential ........................................................................................................................... 393
Financial Potential........................................................................................................................ 394
Consumer Potential & Attitudes ................................................................................................... 395
Relative Return on Investment by Market Area : 1-14 years ....................................................... 396
Relative Return on Investment by Product Category .................................................................. 397
Relative Return on Investment by market for Product Groups .................................................... 397
Opinions of the trade and retail experts on introducing new brands ........................................... 398
SECTION 3 ......................................................................................................................................... 400
Market Research ................................................................................................................................. 400
Markets................................................................................................................................................ 400
MARKET RESEARCH COVERAGE ................................................................................................... 401
Markets & Products covered ........................................................................................................... 401
Product Sectors ........................................................................................................................... 401
Survey Data ..................................................................................................................................... 402

Consumer Surveys ................................................................................................................ 402

Distribution Channel Surveys ................................................................................................ 403

Decision Makers Surveys ...................................................................................................... 403

Industry Performance ............................................................................................................ 403


Products ....................................................................................................................................... 404
Operations ................................................................................................................................... 404
Buyers & Consumers ................................................................................................................... 405
Trading Area ................................................................................................................................ 405
Retail Competitors ....................................................................................................................... 406
Geographic Coverage ..................................................................................................................... 407

Financial data ............................................................................................................................ 407


Financial Data Scenarios ............................................................................................................. 407
Financial Margins & Ratios Data Scenarios ................................................................................ 407
Market Research ............................................................................................................................. 408
General Contents ............................................................................................................................ 408
Market Research Report Table of Contents .................................................................................... 409

Core National Database Open the Core Database here ....................................................... 409
Sections ........................................................................................................................................... 409

Preface ................................................................................................................................ 409

Chapters .............................................................................................................................. 409

Databases ........................................................................................................................... 409

Financials ............................................................................................................................ 409

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Industry ................................................................................................................................ 409

Markets ................................................................................................................................ 409

Products .............................................................................................................................. 409

Grids .................................................................................................................................... 409

Reference ............................................................................................................................ 409

Contents .............................................................................................................................. 409

Legend ................................................................................................................................. 409

Cities .................................................................................................................................... 409

Countries ............................................................................................................................. 409


Chapters .......................................................................................................................................... 410
Chapter 1 .................................................................................................................................... 410

ADMINISTRATION .............................................................................................................. 410


Chapter 2 .................................................................................................................................... 410

ADVERTISING .................................................................................................................... 410


Chapter 3 .................................................................................................................................... 410

BUYERS – COMMERCIAL OPERATIONS......................................................................... 410


Chapter 4 .................................................................................................................................... 410

BUYERS – COMPETITORS ............................................................................................... 410


Chapter 5 .................................................................................................................................... 410

BUYERS – MAJOR CITY .................................................................................................... 410


Chapter 6 .................................................................................................................................... 410

BUYERS – PRODUCTS...................................................................................................... 410


Chapter 7 .................................................................................................................................... 410

BUYERS – TRADE CELL.................................................................................................... 410


Chapter 8 .................................................................................................................................... 410

COMPETITIVE INDUSTRY ANALYSIS .............................................................................. 410


Chapter 9 .................................................................................................................................... 410

COMPETITOR ANALYSIS .................................................................................................. 410


Chapter 10 ................................................................................................................................... 410

COUNTRY FOCUS ............................................................................................................. 410


Chapter 11 ................................................................................................................................... 410

DISTRIBUTION ................................................................................................................... 410


Chapter 12 ................................................................................................................................... 410

FINANCIAL - BUSINESS DECISION SCENARIOS ........................................................... 410


Chapter 13 ................................................................................................................................... 410

FINANCIAL - CAPITAL COSTS FINANCIAL SCENARIOS ................................................ 410

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Chapter 14 ................................................................................................................................... 410

FINANCIAL - CASHFLOW OPTION SCENARIOS ............................................................. 410


Chapter 15 ................................................................................................................................... 410

FINANCIAL - COST STRUCTURE SCENARIOS ............................................................... 410


Chapter 16 ................................................................................................................................... 410

FINANCIAL - HISTORIC INDUSTRY BALANCE SHEET ................................................... 410


Chapter 17 ................................................................................................................................... 410

FINANCIAL - HISTORIC MARKETING COSTS & MARGINS ............................................ 410


Chapter 18 ................................................................................................................................... 410

FINANCIAL - INVESTMENT + COST REDUCTION SCENARIOS .................................... 410


Chapter 19 ................................................................................................................................... 410

FINANCIAL - MARKET CLIMATE SCENARIOS................................................................. 410


Chapter 20 ................................................................................................................................... 410

FINANCIAL – MARKETING COSTS ................................................................................... 410


Chapter 21 ................................................................................................................................... 410

FINANCIAL - MARKETING EXPENDITURE SCENARIOS ................................................ 410


Chapter 22 ................................................................................................................................... 410

FINANCIAL – MARKETING MARGINS .............................................................................. 410


Chapter 23 ................................................................................................................................... 410

FINANCIAL - STRATEGIC OPTIONS SCENARIOS .......................................................... 410


Chapter 24 ................................................................................................................................... 410

FINANCIAL - SURVIVAL SCENARIOS .............................................................................. 410


Chapter 25 ................................................................................................................................... 411

FINANCIAL - TACTICAL OPTIONS SCENARIOS ............................................................. 411


Chapter 26 ................................................................................................................................... 411

GEOGRAPHIC DATA.......................................................................................................... 411


Chapter 27 ................................................................................................................................... 411

INDUSTRY - NORMS.......................................................................................................... 411


Chapter 28 ................................................................................................................................... 411

MAJOR CITY MARKET ANALYSIS .................................................................................... 411


Chapter 29 ................................................................................................................................... 411

MARKET CAPITAL ACCESS SCENARIOS ....................................................................... 411


Chapter 30 ................................................................................................................................... 411

MARKET CASHFLOW SCENARIOS .................................................................................. 411


Chapter 31 ................................................................................................................................... 411

MARKET ECONOMIC CLIMATE SCENARIOS .................................................................. 411


Chapter 32 ................................................................................................................................... 411

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MARKET INVESTMENT + COSTS SCENARIOS .............................................................. 411


Chapter 33 ................................................................................................................................... 411

MARKET MARKETING EXPENDITURE SCENARIOS ...................................................... 411


Chapter 34 ................................................................................................................................... 411

MARKET RISK SCENARIOS .............................................................................................. 411


Chapter 35 ................................................................................................................................... 411

MARKET STRATEGIC OPTION SCENARIOS ................................................................... 411


Chapter 36 ................................................................................................................................... 411

MARKET SURVIVAL OPTION SCENARIOS...................................................................... 411


Chapter 37 ................................................................................................................................... 411

MARKET TACTICAL OPTION SCENARIOS ...................................................................... 411


Chapter 38 ................................................................................................................................... 411

MARKETING EXPENDITURE -v- MARKET SHARE .......................................................... 411


Chapter 39 ................................................................................................................................... 411

MARKETING STRATEGY DEVELOPMENT ...................................................................... 411


Chapter 40 ................................................................................................................................... 411

MARKETS ........................................................................................................................... 411


Chapter 41 ................................................................................................................................... 411

OPERATIONAL ANALYSIS ................................................................................................ 411


Chapter 42 ................................................................................................................................... 411

OVERSEAS DEVELOPMENT ............................................................................................ 411


Chapter 43 ................................................................................................................................... 411

PERSONNEL MANAGEMENT ........................................................................................... 411


Chapter 44 ................................................................................................................................... 411

PHYSICAL DISTRIBUTION + CUSTOMER HANDLING .................................................... 411


Chapter 45 ................................................................................................................................... 411

PRICING .............................................................................................................................. 411


Chapter 46 ................................................................................................................................... 411

PROCESS + ORDER HANDLING ...................................................................................... 411


Chapter 47 ................................................................................................................................... 411

PRODUCT ANALYSIS ........................................................................................................ 411


Chapter 48 ................................................................................................................................... 411

PRODUCT DEVELOPMENT .............................................................................................. 411


Chapter 49 ................................................................................................................................... 411

PRODUCT MARKETING FACTORS .................................................................................. 411


Chapter 50 ................................................................................................................................... 411

PRODUCT MIX ................................................................................................................... 411

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Agrana Fruit - United States

Chapter 51 ................................................................................................................................... 412

PRODUCT SUMMARY ....................................................................................................... 412


Chapter 52 ................................................................................................................................... 412

PROFIT RISK SCENARIOS ................................................................................................ 412


Chapter 53 ................................................................................................................................... 412

PROMOTIONAL MIX ........................................................................................................... 412


Chapter 54 ................................................................................................................................... 412

SALESFORCE DECISIONS ............................................................................................... 412


Chapter 55 ................................................................................................................................... 412

SALES PROMOTION .......................................................................................................... 412


Chapter 56 ................................................................................................................................... 412

SURVEYS ........................................................................................................................... 412


Chapter 57 ................................................................................................................................... 412

TARGETS - PRODUCT + MARKET .................................................................................. 412


Chapter 58 ................................................................................................................................... 412

TECHNOLOGY ................................................................................................................... 412


Chapter 59 ................................................................................................................................... 412

TRADE CELL ANALYSIS .................................................................................................... 412


Chapter 60 ................................................................................................................................... 412

URBAN COMPETITION ...................................................................................................... 412


Chapter 61 ................................................................................................................................... 412

TOWNS - FINANCIAL ......................................................................................................... 412


Chapter 62 ................................................................................................................................... 412

TOWNS - INDUSTRY.......................................................................................................... 412


Chapter 63 ................................................................................................................................... 412

TOWNS - MARKET ............................................................................................................. 412


SECTION 4 ......................................................................................................................................... 413
Business Planning ............................................................................................................................... 413
BUSINESS PLANNING ....................................................................................................................... 414
Checklist .......................................................................................................................................... 414

Checklist implementation ..................................................................................................... 417


Advancing your Project ................................................................................................................ 417

Cashflow .................................................................................................................................... 418

The Business Plan Programme ............................................................................................... 419


Installing the Business Plan Programme ..................................................................................... 420
Retailer Analysis Report ...................................................................................................................... 427
Methodology .................................................................................................................................... 427

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Agrana Fruit - United States

Presentation .................................................................................................................................... 427


After-Sales Service & Client Support .............................................................................................. 428
Real Time Support ....................................................................................................................... 429
Resource Webs -v- Dedicated sites ............................................................................................ 429
Product Level ............................................................................................................................... 429
Data Product levels ...................................................................................................................... 430
Getting Started with the Core Database ...................................................................................... 431
Using the data .............................................................................................................................. 431
Toolkits ......................................................................................................................................... 431
Report Cost ..................................................................................................................................... 434
Retailer Report ............................................................................................................................. 434
Report Pricing .............................................................................................................................. 434
About DataGroup ............................................................................................................................. 435
DataGroup Clients ........................................................................................................................... 435

was established in 1986, and has been a brand since 1995.

The Retailer Analysis of Agrana Fruit.


Target Country: United States
Ref: 7699899608948

Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright © DataGroup Stiftung.

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Agrana Fruit - United States

Retailer Analysis - Introduction


Structure of this report
This document is constructed as a PDF file which links to a large number of online documents, Excel
spreadsheets and Access databases.
This document consists of four sections:-

1. The Retailer Report Analysis


a. Analysis of the 15 most important Product Groups
These represent the most important Product Groups or Product Lines for Agrana Fruit
in Revenue terms.

Products
The Product Groups (1 to 15) data is shown in the tables as
Product Group #1 to Product Group #15

b. Analysis of the 15 most important Trading Areas:


1 United States of America
2 California
3 New York
4 Florida
5 Illinois
6 Pennsylvania
7 Michigan
8 Georgia
9 North Carolina
10 New Jersey
11 Virginia
12 Arizona
13 Massachusetts
14 Tennessee
15 Missouri

Trading Area
The Trading Areas (1 to 15) data is shown in the tables as
Trade Area #1 to Trade Area #15
In addition data is given for all the significant Towns and Cities in United States, a list
of these can found here:-
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/US.html

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Agrana Fruit - United States

c. Analysis of the 15 most important Competitors


The algorithm ranks Competitors according to those which represent the most
significant threat to Agrana Fruit, when filtered for the following criteria:-
i. Chief Overall Market Competitor
ii. Main National Market Competitor
iii. Main Regional / Local Market Competitor
iv. Main Trading Area Market Competitor
v. Main National Product Superiority Competitor
vi. Main Trading Area Product Superiority Competitor
vii. Main National Price Competition Competitor
viii. Main Trade Area Price Competition Competitor
ix. Main National Financial Strength Competitor
x. Main Trading Area Financial Strength Competitor
xi. Main National Customer Satisfaction Competitor
xii. Main Trading Area Customer Satisfaction Competitor
xiii. Main National Marketing Aggression Competitor
xiv. Main Trading Area Marketing Aggression Competitor
xv. Main New Product Development Competitor

In this report the Retail Competitors are identified as individual


companies. A list is not shown because the significance of the
Competitors change on a seasonal basis and thus the final list is
produced dynamically when the database is output for the
specific order.

Retail
Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

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Agrana Fruit - United States

d. Analysis of the 15 most important Retailer Operations


The algorithm ranks the Retail Operations which represent the most significant for
Agrana Fruit:-

1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT

Retailer
Operations
The Retailer Operations (1 to 15) data is shown in the tables as:
Operations #1 to Operations #15

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Agrana Fruit - United States

e. Analysis of the 15 most important Customer / Buyer Profiles


The algorithm ranks the Customer Profiles which represent the most significant for
Agrana Fruit:-

1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Buyers &
Consumers
The Buyers & Consumers (1 to 15) data is shown in the tables as:
Buyers #1 to Buyers #15

f. Analysis of the internal and external issues which affect Agrana Fruit

The Analysis of Agrana Fruit consists of about 23 Parts or chapters with over 3600 research issues
which have been investigated through Surveys of the Staff of Agrana Fruit, the Customers, the
Competitive companies, Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers,
Trade & Industry Experts, Banks & Financial Institutions, the Regulatory Authorities, and other
sources.

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Agrana Fruit - United States

2. The Retailer Competitive Environment


a. Analysis of the 15 most important Product Groups

Products Product Group #1 to Product Group #15

b. Analysis of the 15 most important Trading Areas

Trading Area Trade Area #1 to Trade Area #15

c. Analysis of the 15 most important Competitors

Retail Competitors Competitors #1 to Competitors #15

d. Analysis of the 15 most important Retail Operations


Retailer Operations Operations #1 to Operations #15

e. Analysis of the 15 most important Customer / Buyer Profiles

Buyers & Consumers Buyers #1 to Buyers #15

The Competitive Environment is analysed in Product, Market, Competitive, Operational, and


Consumer terms.
The Competitive Environment for Agrana Fruit consists of some 170 issues which have been
investigated through Surveys of the Staff of Agrana Fruit, the Customers, the Competitive companies,
Trade Suppliers, Logistics companies, Trade Buyers & Decision Makers, Trade & Industry Experts,
Banks & Financial Institutions, the Regulatory Authorities, and other sources.

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Agrana Fruit - United States

3. Market Research
The market research is Country specific, and provides data on all the Cities and Towns in the
home country: United States
For a list of Cities and Towns:
http://www.dg-di.eu/BASE_FOLDERS/World_Cities/US.html

The report provides historic, current and forecast Market data, Financial data for the retailers, Industry
data for the trade, Survey data, and a large body of market research for each of the United States
Cities and major towns.
World Market Research data (on potential overseas expansion opportunities for Agrana Fruit) is
available as part of the After-Sales Service.

4. Business Planning
This section provided Business Planning software and utilities.

To make the data handling easier, the documents and databases are also
supplied on DVD or Hard Disk Drive which can then be used as a standalone
data source or, if required, manipulated and correlated with business planning
or statistical software.

The breakdowns of Product Groups, Trading Areas, Competitors, Retail Operations, and Customer /
Buyer Profiles are limited to 15 in each group because the Excel spreadsheets frequently analyse the
correlation of data between 2 groups of 15. Because of the general limitation of record field numbers
(generally 255 fields) one can only produce a 15 x 15 matrix.

25
SECTION 1

Analysis

Agrana Fruit
Agrana Fruit - United States

Agrana Fruit

This report specifically refers to Agrana Fruit


This report specifically refers to the base country: United States

Part A : Base data on the Retailer


Agrana Fruit

Base data on Agrana Fruit: Part_A

Key Personnel:
1. Chairman
2. Chief Executive
3. Directors
4. Executives

Corporate Summary:
5. Company Description
6. Company History
7. Legal Entity & Ownership
8. Company Facilities
9. Company Key Assets
10. Mainline product / service
11. Product / services provided
12. Parent Company
13. Bankers
14. Year established
15. Current employees
16. Issued capital
17. Shareholders
18. Last published turnover
19. Subsidiaries
20. Associated companies
21. Companies represented
22. Agencies
23. Physical processing locations
24. Capital investment
25. Advertising expenditure
26. Advertising media
27. Advertising posture
28. Sales promotion activity
29. Method of selling
30. Distribution
31. Distribution network
32. Use of distribution channels

Corporate Observations:
33. Stores

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Agrana Fruit - United States

34. Store Brands


35. Store Sales Channels
36. Products Carried & Services Offered
37. Consumer Features & Benefits
38. Current Market Analysis
39. Competition
40. Competitive Advantage
41. Target Markets
42. Target Customers
43. Current Strategy & Implementation
44. Current Management
45. Current Financial Plan
46. Investment Fund Sources & Use of Funds
47. Future Target Customers
48. Future Retail Trends
49. Future Market Analysis
50. Projected Market Size
51. Planned Products & Services
52. Development Plans

Swot Analysis:
53. Strengths
54. Weaknesses
55. Opportunities
56. Threats

Future Strategy Planning & Implementation:


57. Philosophy
58. Product Development
59. Internet Strategy
60. Marketing Strategy
61. Sales Strategy
62. Strategic Alliances
63. Operations

Goals:
64. Renovating premises, stocking, staff hiring and marketing
65. Sponsorship & Hosting events
66. Penetrate and raise awareness in the targeted consumer market
67. Achieving a higher profit margin
68. Building the customer base
69. Generate repeat and referral sales
70. Expansion potential
71. Reputation as a quality retailer

Exit Strategies

Management:
72. Organisational Structure
73. Leadership
74. Staff Members

Financial Plans:
75. Finance Requirements
76. Use of Funds
77. Cash Flow
78. Balance Sheet Topics
79. Financial Assumptions
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Agrana Fruit - United States

The above topics are covered as brief or concise elements to give an impression of the topic based
on trade and industry analyses. The body of the report provides the detail.
The Corporate Observations section is a concise headlining, or sound bites, of certain issues which
concern the retailer. In fact the Observations are based the analyses of several datasets which have
then been distilled into as few words as possible. In order to understand the data behind these
observations readers should consider the datasets shown below.

As an explanation of the topics covered by the above items:-

1. Company Description
A brief description of the activities of the company.
2. Company History
The corporate milestones for the company.
3. Legal Entity & Ownership
 Listed, Private, Family.
4. Company Facilities
 Retail Locations
 Distribution
 Property Portfolio
 Production
5. Company Key Assets

 Brands
 Cashflow position
 Copyrights
 Customer Base
 Customer Relations
 Designers
 Franchisees
 Internet Presence
 Investments
 Liquidity
 Locations
 Management
 Market Share
 Patents
 Product Range
 Staff Abilities
 Trademarks
 Value Proposition
6. Stores
 Number and location of stores
7. Store Brands
 Retail brands of the stores
8. Store Sales Channels

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Agrana Fruit - United States

 Company owned, Franchises, In-store departments, Joint-Ventures


9. Products Carried & Services Offered
 Product Ranges of goods carried and services offered
10. Consumer Features & Benefits
 Product Range
 Product Value
 Product Quality
 Product Design
 Product Fashion
 Store service
 Payment options
 Customer services
11. Current Market Analysis
 Dynamic, Increasing, Stagnant, Falling, Deteriorating
12. Competition
 Very aggressive, Aggressive, Equivalent, Benign, Ineffective
13. Competitive Advantage
 Value Proposition, Price, Quality, Store Locations, Customer Loyalty, Customer Services
14. Target Markets
 Local, Regional, National, International
15. Target Customers
 Male, Female. Under 18, Youth Trendy, Younger, Professional, General demographic,
Mature, Older. Discount, Mid-priced, Upscale, Luxury
16. Current Strategy & Implementation
 Very Effective, Effective, Consistent, Inconsistent, Ineffective
17. Current Management
 Dynamic, Professional, Average, Lacking, Ineffective
18. Current Financial Plan
 Dynamic, Productive, Consistent, Lacking, Unsuccessful
19. Investment Fund Sources & Use of Funds
 Public, Institutional, Bank, Private. Use of Funds: Exceptional, Productive, Mediocre, Ill-
advised, Poor.

20. Future Target Customers


 New Customer Bases available. No New Customer Bases available.
21. Future Retail Trends
 Dynamic, Advancing, Stable, Challenging, In decline
22. Future Market Analysis
 Dynamic, Progressive, Static, Difficult, Collapsing
23. Projected Market Size
 Significant increases, Increasing, Stable, Diminishing, Significant decreases

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Agrana Fruit - United States

24. Planned Products & Services


 Substantial New Product/Service Offerings, Some New Product/Service Offerings, No New
Product/Service Offerings, Reduction in Product/Service Offerings. No comment
25. Development Plans
 Dynamic, Advanced, Progressive, Static, None

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Agrana Fruit - United States

SWOT ANALYSIS:
26. Strengths tested:
 Advertising Effectiveness
 Brand
 Business Alliances
 Business Innovation
 Competition
 Consumer base
 Cost advantages
 Culture
 Customer Service
 Direct delivery capability
 Economies of Scale
 Excellent customer service
 Experience and understanding of the Retail industry
 Experience in the field
 Financial Resources
 Future Changes available
 Good reputation among customers
 Good Staff Training
 Good Website
 Industry knowledge
 Innovative sales techniques
 Intangible Strengths
 Large administration component
 Management
 Market Lead
 Market Location
 Market Share
 Personnel
 Product Uniqueness
 Proprietary knowledge
 Relationship marketing
 Relationship with customers
 Relationship with employees
 Relationships with suppliers
 Reputation
 Shopping experience and customer service
 Sole supply agreements
 Standards
 Store Fitting & Systems good quality
 Store Locations
 Strong Brands
 Superior product performance vs. competitors
 Technology
 Training
 Unique brands
 Use of new technology

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Agrana Fruit - United States

27. Weaknesses analysed:


 Customer service staff needs training
 Future Changes difficult
 High overall unit cost relative to competitors
 Inferior technology
 Insufficient financial resources
 Intangible Weaknesses
 Lack of following-up procedures
 Lack industry knowledge
 Lack innovation
 Limited expansion potential
 Limited industry experience
 Limited industry knowledge
 Limited Product Range
 Limited Stocks
 Low Market Share
 Low R&D
 Niche markets
 Poor Customers Relations
 Poor Employees Relations
 Poor Management
 Poor Marketing
 Poor reputation among customers
 Poor Suppliers Relations
 Poor Website
 Product line too narrow
 Store brand unknown
 Small Economies of Scale
 Small market presence
 Small store sizes
 Store fittings, plant and equipment old or outdated
 Untested markets
 Weak Brands
 Weak image

28. Opportunities evaluated:


 Backward integration in the supply chain
 Better Training
 Better Website
 Competitive opportunities
 Customer Service
 Database Assets
 Diversification
 E-commerce
 Establish a product line
 Expand Customer Bases
 Expand Customer Catchment areas
 Expand Customer Offerings
 Expand Product Range
 Expand Supply Sources
 Favourable cultural shifts
 Favourable economic outlook
 Favourable regulations
 Import / export opportunities
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Agrana Fruit - United States

 Increased geographic coverage


 Internet sales
 Local competitors have worse products
 Local Marketing
 Loosening of regulations
 Market growth
 Multi-channel marketing
 New demographics available
 New market niche
 New Market opportunities
 New Products
 New technologies
 Online presence
 Outstanding shopping experience will lead to repeat business
 Removal of international trade barriers
 Specific Markets
 Use of new technology

29. Threats evaluated:


 Buyers changing
 Change in market demand
 Changes in demographics
 Changing consumer interests
 Changing fashion trends
 Cost and effectiveness of marketing to target markets
 Currency fluctuations
 Customers’ power growing
 Direct competition
 Economic climate
 Emergence of substitute products
 Environmental effects
 Fixed Costs
 Foreign exchange rates
 Indirect Competition
 Local conditions
 Location
 Loss of control of product prices
 Low cost competitive products
 New regulations
 New retail competitors
 Obsolete product range
 Pressure on margins
 Product substitution
 Regulations
 Shifts in consumer tastes
 Slow or Declining market growth
 Substitute product market
 Suppliers’ power growing
 Technology

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Agrana Fruit - United States

FUTURE STRATEGY PLANNING & IMPLEMENTATION


30. Philosophy
Contract theory / Stakeholder theory / Business as property

Contract theory:
Business contract theory holds that a business is a community of participants organized around a
common purpose. These participants have legitimate interests in how the business is conducted
and, therefore, they have legitimate rights over its affairs. Most contract theorists see the enterprise
being run by employees and managers as a kind of representative democracy.

Stakeholder theory:
Stakeholder theorists believe that people who have legitimate interests in a business also ought to
have a voice in how the business is conducted. The obvious ‘non-owner’ stakeholders are the
employees. However, stakeholder theorists take contract theory a step further, maintaining that
people outside of the business enterprise ought to have a say in how the business operates. Thus,
for example, consumers, even community members who could be affected by what the business
does, for example, by the pollutants of a factory, ought to have some control over the business.

Business as property:
This philosophy holds that the business is essentially someone's property, thereby its owners have
the right to dispose of it as they see fit, within the restraints imposed by the law. Workers and
consumers have no special rights over the property, other than the right not to be harmed by its use
without their consent. Workers voluntarily exchange their labour for wages from the business
owner; and they have no more right to tell the owner how he will dispose of his property than the
owner has to tell them how to spend their wages, which is property belonging to the workers.
Furthermore, consumers have no rights to govern or manage the business, which belongs to
someone else.

31. Product Development


1. Diversification Strategy
1. Product Modification Strategy
2. Concept Product Development
3. No discernible strategy employed by the retailer
The development of new products or services or modifying existing products or services so they
appear new, and the offering those products or services to current or new markets is an important
process for all companies.

Diversification Strategy:
Product diversification involves modifying the company’s product/s or service/s to expand into new
markets by leveraging the company’s existing product or service experience and reputation.
This strategy is especially attractive for companies operating in a saturated market. The product
diversification strategy calls for the company to go outside its existing business and develop new
products or services for a customer segments and new markets. This diversification might be based
on appealing to new customer demographics or price points.

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Agrana Fruit - United States

Product Modification Strategy:


By working with existing products or services in existing markets the company might attract and
appeal to new customers segments. Product modification which adds new features to extend the
current offering, may also appeal to existing customer bases.

Concept Product Development:


Concept product development is the process of bringing to market unique or innovative product or
service. Generally the company’s existing customer base receives the product as new ideas or
concepts because they have no prior knowledge or experience with these new product or service.
This type of product development poses a financial risk to the company and management should
rely heavily upon disciplined market research as a means of reducing risk.

Regardless of which product development strategy is utilized, the process requires thoroughness
and a series of benchmarks throughout the process. These benchmarks help the company to
assess whether the expensive and time consumed in the product development process should be
continued.
Potential consumers must play a vital role in the product development process, and the consumer
evaluation of the new products or services should be conducted at concept, prototype and final
product stage.

32. Internet Strategy


Checklist:
1. Employee productivity.
2. Operational effectiveness.
3. Reduction of operating costs.
4. Competitive advantage.
5. Intra-company communications.
6. Communications with suppliers.
7. Communications with customers.
8. Marketing presence online.
9. E-Commerce & Online ordering.
10. Poor internet strategy.

Internet Strategy
The company should have a specific, fully costed, plan to invest in an Internet presence to sell
product online by advertising, marketing, taking orders, fulfilling orders, invoicing and collect
payment over the Internet.
1. Is the company’s online strategy fully planned?
2. Is the retailer’s website a ‘me too’ rationale?
3. Does this retailer have a valid business reason to operate an online selling site?
4. Does the online selling operation adversely reflect on the retailer’s brand?
5. Would the retailer be better advised to seek other channels to the market?
6. Will the retailer’s prospective product buyers search for them on the Internet?
7. Can the retailer adequately describe and demonstrate the value proposition of the products
over the Internet?
8. Can the retailer successfully compete in the online market space?
9. Can the retailer make a profit from the Internet?

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Agrana Fruit - United States

33. Marketing Strategy


Market selection. Product planning. Pricing. Place. Promotion.

Marketing Strategy
The marketing strategy is composed of several interrelated components which embraces the
marketing mix:

The Marketing Mix


1. Market selection
 Is the retailer adequately targeting their appropriate customers base or subset (segment)?
2. Product planning
 Does the retailer properly segment its products for selected customers segments?
 Do the retailer’s products have features which are uniquely targeting the market?
3. Pricing
 Does the retailer’s pricing strategy reflect a quantitative expression of the value of the
product to the customer?
 Is the retailer’s pricing designed like a feature consistent with the use of the product?
 Is the retailer’s Price –v- Features matrix realistic?
4. Place
 Are the retailer’s stores placed for optimum effect?
 Are the retailer’s channels effective in delivering the product and its benefits to the selected
markets?
5. Promotion
a. Positioning: Does the retailer’s messages state the purpose and benefits of the product in the
market in which it competes?
b. Selling: Does the retailer rely on indirect selling which is subject to uncontrollable conditions?
c. Communications
 Are the retailer’s target customers adequately informed about the product features and
benefits and thereby persuaded to buy them?
 Does the retailer fully exploit branding opportunities?
d. Customer Support and Service
 Can the retailer’s customers rely on good customer support and service?

e. Decision Making Unit and the Decision Making Process


The retailer’s actual selling process breaks down into two components: the decision making unit
(DMU) and the decision making process (DMP).

The DMU decision making unit


The DMU consists of all of the people who will play a role in the decision to purchase a product.
The marketing mix program must understand the needs of each of these individuals and find a way
to communicate the marketing message to each of them. These people are typically identified as:
 Buyer – the person who actually pays for the product
 Decider – the person that actually says this is the product wanted

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Agrana Fruit - United States

 Influencer – whomever helps the decider decide


 User – the individual who actually uses the product and derives benefit from it
The DMP or Decision Making Process
The people included in the Decision Making Unit (DMU) interact to make the purchasing decision.
The (DMP) is a description of this interaction. By understanding this process the retailer can best
understand who, how, and when to work on getting the customer to buy.
 Does the retailer adequately understand the DMU?
 Does the retailer adequately understand the DMP?

34. Sales Strategy


Customers oriented. Understands the relative complexity of the market. Differentiation from
competitors. Benefits from the price –v- value function. Understands expected sales volumes and
margins.
Does the retailer’s sales strategy fully understand:
 The Customers and End Users?
 The relative complexity of the market?
 The differentiation from competitors?
 The price –v- value function?
 The expected sales volume?
 Has the retailer defined the target market?
 Has the retailer determined its outreach and which sales strategy will be most effective with
the target market?
 Does the retailer know the needs and aspirations of the customer?
 Is the retailer able to deliver on promises and customer expectations and thereby build a
relationship with the customer?
 Does the retailer adequately monitor the critical aspects of their sales strategy?

35. Strategic Alliances


Many / Some / Few.
 Manufacturing alliances
 Logistic alliances
 Supply Chain alliances
 Retailing alliances & Joint ventures
 Equity alliance
 Non-equity alliance
 Geographic alliances

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Agrana Fruit - United States

36. Operations
Evaluation of the operations strategies which influences the retailer’s performance:
 New product/service development strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
 Vertical integration strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
 Facilities strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
 Technology strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
 Workforce and organization strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
 Capacity adjustment strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
 Supplier development strategy: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
 Inventory strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
 Planning and control systems strategy: Efficient / Timely / Dependable / Flexible / Cost
effective / Ineffective / No comment
 Improvement strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective
/ No comment
 Recovery strategy: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment

GOALS
Evaluation of the achievement of goals which influences the retailer’s performance:

37. Renovating premises, stocking, staff hiring and marketing


 Renovating premises: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective
/ No comment
 Stocking efficiencies: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective /
No comment
 Staff hiring and training: Efficient / Timely / Dependable / Flexible / Cost effective /
Ineffective / No comment
 Marketing: Efficient / Timely / Dependable / Flexible / Cost effective / Ineffective / No
comment

38. Sponsorship & Hosting events


Sponsorships: Significant / Minor. Events: Significant / Minor

39. Penetrate and raise awareness in the targeted consumer market


 Target Market Penetration: Significant / Important / Moderate / Average / Insufficient
 Raising awareness amongst the target consumers: Significant / Important / Moderate /
Average / Insufficient

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Agrana Fruit - United States

40. Achieving a higher profit margin


Profit Margin achievements: Significant / Important / Moderate / Average / Insufficient

41. Building the customer base


Customer Base building: Significant / Important / Moderate / Average / Insufficient

42. Generate repeat and referral sales


 Repeat Business: Significant / Important / Moderate / Average / Insufficient
 Referral Business: Significant / Important / Moderate / Average / Insufficient

43. Expansion potential


Business expansion: Significant / Important / Moderate / Average / Insufficient

44. Reputation as a quality retailer


 General Retail Reputation: Significant / Important / Moderate / Average / Insufficient
 Reputation for Quality: Significant / Important / Moderate / Average / Insufficient

EXIT STRATEGIES
Envisaged / Unknown / Not planned.
 Operations
 Brands
 Product Lines
 Store Locations
 Operating divisions
 Operating companies
 Shareholders & Investors

MANAGEMENT
Evaluation of the retailer’s management:

45. Organizational Structure


Organizational Structure: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment

46. Leadership
Company Leadership: Resourceful / Professional / Dependable / Flexible / Cost effective /
Ineffective / No comment

47. Staff Members


Company Staff: Resourceful / Professional / Dependable / Flexible / Cost effective / Ineffective / No
comment

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Agrana Fruit - United States

FINANCIAL PLANS
48. Finance Requirements
Company’s Financial requirements: Well met / Sustainable / Adequately met / Unsustainable / No
comment

49. Use of Funds


Company’s Use of Investment Funds: Well Planned & Implemented / Sufficiently Planned /
Adequately Planned / Uncertain / No comment

50. Cash Flow


Company’s Cash Flow: Very strong / Strong / Moderate / Adequate / Insufficient / Fragile / No
comment

51. Balance Sheet Topics


Company’s Balance Sheet Issues: No issues / Few issues / Some issues / Substantial issues / No
comment

52. Financial Assumptions


Company’s Financial Assumptions: Conservative / Realistic / Neutral / Optimistic / Unsustainable /
No comment

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Agrana Fruit - United States

Part B : Financial Data


Agrana Fruit

The financial data is provided in sections:-


1. the most salient retail Management figures and margins, and
2. a full Balance Sheet and Management Accounts simulation.

Part B.1 : Management figures

Management figures for Agrana Fruit: as an Excel file: Part_B_1

1. Retail Revenue 21. Total Fixed Assets


2. Retail Profitability as a % of Sales 22. Finished Product Stocks
3. Total Retail Selling Space 23. Work in Progress as Stocks
4. Average Store Retail Selling Space 24. Materials as Stocks
5. Average Store Retail Revenues 25. Total Stocks / Inventory
6. Average Retail Store Establishment 26. Debtors
Cost
27. Miscellaneous Current Assets
7. Fixed Assets: Premises
28. Total Current Assets
8. Fixed Assets: Store Fittings
29. Total Assets
9. Fixed Assets: Miscellaneous Items
30. Creditors
10. Fixed Assets
31. Short Term Loans
11. Capital Expenditure on Premises
32. Miscellaneous Current Liabilities
12. Capital Expenditure on Store Fittings
33. Total Current Liabilities
13. Capital Expenditure on Equipment
34. Net Assets / Capital Employed
14. Cap. Expend. on Data Processing
35. Long Term Loans
15. Capital Expenditure on Misc. Items
36. Miscellaneous Long Term Liabilities
16. Total Capital Expenditure
37. Shareholders’ Funds
17. Retirements: Premises
38. Retail Workers
18. Retirements: Store Fittings
39. Total Employees
19. Retirements: Miscellaneous Items
20. Total Retirements

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Agrana Fruit - United States

Part B.2 : Balance Sheet and Management Accounts

Balance Sheet and Management Accounts for Agrana Fruit: as an Excel file: Part_B_2

1. Return on Capital 31. Average Remuneration (all employees - full


2. Return on Assets and part)
3. Return on Shareholders' Funds 32. Profit per Employee
4. Pre-tax Profit Margins 33. Sales per Employee
5. Operating Profit Margin 34. Remunerations / Sales
6. Trading Profit Margin 35. Fixed Assets per Employee
7. Return on Investment 36. Capital Employed per Employee
8. Assets Utilisation (given as a ratio of Sales 37. Total Assets per Employee
to Total Assets) 38. Value of Average Investment per Employee
9. Sales as a ratio of Fixed Assets 39. Value Added per Employee
10. Stock Turnover (Sales as a ratio of Stocks) 40. Materials Costs as a % of Sales
11. Credit Period 41. Wage Costs as a % of Sales
12. Creditors' Ratio (given as Creditors divided 42. Payroll and Wages as a Ratio to Materials
by Sales times 365 days) 43. Variable Costs as a % of Sales
13. Default Debtors given as a Ratio of Total 44. Fixed Costs as a % of Sales
Debtors 45. Fixed Costs as a Ratio of Variable Costs
14. Un-Recoverable Debts given as a Ratio of 46. Distribution Costs as a % of Sales
Total Debts 47. Warehousing Costs as a % of Sales
15. Working Capital / Sales 48. Physical Costs as a % of Sales
16. Materials & Energy Costs as a % of Sales 49. Fixed as a Ratio of Variable Distribution
17. Added Value Costs
18. Investment as a Ratio of Added Value 50. Fixed as a Ratio of Variable Warehousing
19. Value of Plant & Equipment as a % of Sales Costs
20. Vertical Integration (Value Added as a % of 51. Fixed as a Ratio of Variable Physical Costs
Sales) 52. Fixed as a Ratio of Variable Total
21. Research & Development Investment as a Distribution & Handling Costs
% of Sales 53. Product Returns & Rejections Costs as a %
22. Capital Expenditure Investment as a % of of Sales
Sales 54. Product Installation & Associated Costs as a
23. Marketing Costs as a % of Sales % of Sales
24. Current Ratio (Current Assets as a ratio of 55. Product Breakdown & Associated Costs as a
Current Liabilities) % of Sales
25. Quick Ratio 56. Product Systems & Associated Costs as a %
26. Borrowing Ratio (or Total Debt as a ratio of of Sales
Net Worth) 57. Product Service & Associated Costs as a %
27. Equity Ratio (Shareholders Funds as a ratio of Sales
of Total Liabilities) 58. Customer Complaint & Associated Costs as
28. Income Gearing a % of Sales
29. Total Debt as a ratio of Working Capital
59. Stock Work in Progress & Materials as a
30. Debt Gearing Ratio (Long Term Loans as a
Ratio of Finished Products
ratio of Net Worth)
60. Stock Materials as a Ratio of Work in
Progress

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Agrana Fruit - United States

61. Un-recoverable Debts as a Ratio of Total 91. Stock Turnover (Sales as a ratio of Stocks)
Debt 92. Credit Period
62. Un-recoverable Debts as a Ratio of Debts 93. Creditors' Ratio (given as Creditors divided
Within Agreed Terms by Sales times 365 days)
63. Total Sales Costs as a % of Sales 94. Default Debtors given as a Ratio of Total
64. Total Distribution & Handling Costs as a % Debtors
of Sales 95. Un-Recoverable Debts given as a Ratio of
65. Total Advertising Costs as a % of Sales Total Debts
66. Total After-Sales Costs as a % of Sales 96. Working Capital / Sales
67. Total Customer Compensation Costs as a 97. Materials & Energy Costs as a % of Sales
% of Sales 98. Added Value
68. Total Variable Marketing Costs as a % of 99. Investment as a Ratio of Added Value
Sales 100. Value of Plant & Equipment as a % of
69. Total Fixed Marketing Costs as a % of Sales Sales
70. Total Fixed Marketing Costs : Ratio of Total 101. Vertical Integration (Value Added as a %
Variable Marketing Costs of Sales)
71. Variable Sales Personnel Costs as a Ratio 102. Research & Development Investment as a
of Marketing Costs % of Sales
72. Variable Distribution & Handling Costs : 103. Capital Expenditure Investment as a % of
Ratio of Marketing Costs Sales
73. Variable Advertising Costs as a Ratio of 104. Marketing Costs as a % of Sales
Marketing Costs 105. Current Ratio (Current Assets as a ratio of
74. Variable After-Sales Costs as a Ratio of Current Liabilities)
Marketing Costs 106. Quick Ratio
75. Sales Personnel Variable Costs as a Ratio 107. Borrowing Ratio (or Total Debt as a ratio
of Sales of Net Worth)
76. Sales Personnel Variable Costs as a Ratio 108. Equity Ratio (Shareholders Funds as a
of Debtors ratio of Total Liabilities)
77. Sales Personnel Variable Costs as a Ratio 109. Income Gearing
of Un-Recoverable Debtors 110. Total Debt as a ratio of Working Capital
78. Exports as a % of Sales 111. Debt Gearing Ratio (Long Term Loans as
79. $ Hourly Pay Rate a ratio of Net Worth)
80. $ Hourly Wage Rate 112. Average Remuneration (all employees -
81. Capital Employed full and part)
82. Return on Capital 113. Profit per Employee
83. Return on Assets 114. Sales per Employee
84. Return on Shareholders' Funds 115. Remunerations / Sales
85. Pre-tax Profit Margins 116. Fixed Assets per Employee
86. Operating Profit Margin 117. Capital Employed per Employee
87. Trading Profit Margin 118. Total Assets per Employee
88. Return on Investment 119. Value of Average Investment per
89. Assets Utilisation (ratio of Sales to Total Employee
Assets) 120. Value Added per Employee
90. Sales as a ratio of Fixed Assets

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Agrana Fruit - United States

121. Materials Costs as a % of Sales 141. Stock Materials as a Ratio of Work in


122. Wage Costs as a % of Sales Progress
123. Payroll and Wages as a Ratio to Materials 142. Un-recoverable Debts as a Ratio of Total
124. Variable Costs as a % of Sales Debt
125. Fixed Costs as a % of Sales 143. Un-recoverable Debts as a Ratio of Debts
126. Fixed Costs as a Ratio of Variable Costs Within Agreed Terms
127. Distribution Costs as a % of Sales 144. Total Sales Costs as a % of Sales
128. Warehousing Costs as a % of Sales 145. Total Distribution & Handling Costs as a
129. Physical Costs as a % of Sales % of Sales
130. Fixed as a Ratio of Variable Distribution 146. Total Advertising Costs as a % of Sales
Costs 147. Total After-Sales Costs as a % of Sales
131. Fixed as a Ratio of Variable Warehousing 148. Total Customer Compensation Costs as a
Costs % of Sales
132. Fixed as a Ratio of Variable Physical 149. Total Variable Marketing Costs as a % of
Costs Sales
133. Fixed as a Ratio of Variable Total 150. Total Fixed Marketing Costs as a % of
Distribution & Handling Costs Sales
134. Product Returns & Rejections Costs as a 151. Total Fixed Marketing Costs : Ratio of
% of Sales Total Variable Marketing Costs
135. Product Installation & Associated Costs as 152. Variable Sales Personnel Costs as a
a % of Sales Ratio of Marketing Costs
136. Product Breakdown & Associated Costs 153. Variable Distribution & Handling Costs :
as a % of Sales Ratio of Marketing Costs
137. Product Systems & Associated Costs as a 154. Variable Advertising Costs as a Ratio of
% of Sales Marketing Costs
138. Product Service & Associated Costs as a 155. Variable After-Sales Costs as a Ratio of
% of Sales Marketing Costs
139. Customer Complaint & Associated Costs 156. Sales Personnel Variable Costs as a
as a % of Sales Ratio of Sales
140. Stock Work in Progress & Materials as a 157. Sales Personnel Variable Costs as a
Ratio of Finished Products Ratio of Debtors
158. Sales Personnel Variable Costs : Ratio of
Un-Recoverable Debtors
159. Exports as a % of Sales
160. $ Hourly Pay Rate
161. $ Hourly Wage Rate
162. Capital Employed

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Agrana Fruit - United States

Part C : Product Offering


Agrana Fruit

Product Offerings at Agrana Fruit: as an Excel file: Part_C

Main Product Lines

Data is given on the 15 main product lines which represent at least 80% of revenues at Agrana Fruit.

In-House Brands

Data is given on the 15 main products which are considered as being In-House Brands or Own
Brands. This is the In-House Brand addendum.

Third Party Brands

Data is given on the 15 main products which are considered as being Third Party Brands. This is the
Third Party Brand addendum.

Ancillary and Add-Value Products & Services

Data is given on the 15 main Ancillary and Add-Value Products & Services. This is the Company
Services addendum.

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Agrana Fruit - United States

Part D : Retail Locations

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

Demographics & Lifestyle Analysis

The composition of the retail trading area population is critical to the retailer. The population will
include a variable mix of income groups, family groups, homeowners or renters, age groups, ethnic
groups, educational norms, employment groups, et cetera. Each population mix will determine how
the general population in the trading area is likely to purchase various consumable and durable
products.

To analyze market opportunities for a trading area, one needs to examine data and ask questions like
the above about residents of the trading area. This data must include the absolute number of
residents, as well as their household characteristics. Current and projected demographic, lifestyle and
consumer spending data about the trading area from secondary sources can provide this information.
Demographic and lifestyle data about the trading area can give one a starting point for an in-depth
analysis of specific business and retail development opportunities. This data also can help understand
how the broader population changing.

Demographic Data

It is assumed that product preferences vary across different groups of consumers. These preferences
relate directly to consumer demographic characteristics, such as household type, income, age, and
ethnicity. For this reason, it is not only the amount of demand that truly matters to a trading area; the
Mix of Consumers also has a major impact on a trading area, and therefore must be thoroughly
examined in all retail analyses. Albeit, there is a great deal of data included in these studies which
then has to be analysed. The enormous amount of data can leave the user with a large number of
tables and consequent information overload; therefore a number of toolkits are provided by
DataGroup to assist users with software to present and interpret the data.

Relevant Data Categories

Interpretation of demographic data is often missing in market analysis; however in neglecting this data
one fails to fully appreciate how consumers spend their time and money. Specifically, the data
provides insights into new business or retailing opportunities in the trading areas. Understanding and
interpretation of demographic data includes the following elements:-

 Population and household composition data allow one to quantify the current market size and
extrapolate future growth. Population is defined as all persons living in a geographic area.
Households consist of one or more persons who live together in the same housing unit;
regardless of their relationship to each other (this includes all occupied housing units).
Households can be categorized by size, composition, or their stage in the family life cycle.
Typically, demand is generated by the individual or the household as a group. Thus, the entire
family influences a household purchase, such as a family car or TV. Individual purchases, on
the other hand, are personal to the specific consumer. Anticipated household or population
growth may indicate future opportunities for a retailer. An analysis of household and/or overall
population growth provides aggregate potential retail demand in a population.

 Household income data is a good indicator of the population’s spending power. Household
income positively correlates with retail expenditures in many product categories. When
evaluating a market, retailers look at the median or average household income in a trading

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Agrana Fruit - United States

area and will seek a minimum number of households within a certain income range before
establishing a business or setting prices. Another common practice is to analyze the
distribution of household incomes. Discount stores may avoid high income areas. Some
speciality fashion stores target incomes above $100,000 households. A few store categories,
such as auto parts, are more commonly found in areas with lower household incomes.
However, using income as the sole measure of a market’s buying preferences can be
deceptive and one needs to consider all categories of demographic data when analysing a
market.

 Highly affluent households with annual incomes above $200,000 comprise one of the
fastest growing segments of the population; increasing in some countries by more
than 3 percent each year since 2008. They are strong consumers, as well as
physically active and conservative in their habits. Gearing a retail mix toward this
segment may require a focus in luxury goods and services. High-end department and
technology stores, as well as cultural amenities like museums and concert halls, are
frequented by the most affluent households within a population.

 Middle-income households with annual incomes between $50,000 and $100,000 are
much more mindful of their expenses than highly affluent families. These households
tend to be more frugal and selective in their buying behaviour, shopping at discount
outlets for groceries and other goods rather than high-end stores, especially since
2008. Superstores are particularly popular for middle and low-income households.

 Low-income households with annual incomes below $25,000 are in a different


situation than affluent and middle-income households. Families at this income level
are often living in poverty and thus spend very little on goods and services across the
board. The financial circumstances of these households have deteriorated even
further since 2008.

 Age is an important factor to consider because personal expenditures change as individuals


grow older. Purchases change throughout a family’s life cycle, and that holds true for
individuals, as well. One important stage of life, and an increasingly influential category, is the
65 and older group. Realizing and providing for the needs of an aging population can be
beneficial to any retailer. Consumer spending on pharmacies and health care services flourish
in areas with a large elderly population; albeit, older populations tend to spend less on the
majority of goods and services. Studies indicate that nightlife and entertainment spending
(restaurants, bars, and entertainment) by people over 65 is roughly half that spent by those
under 65. Older adults also spend considerably less on apparel than other age groups. On
the other end of the spectrum, toy stores, day care centres, and stores with baby care items
do well in areas with many children and infants. Clothing stores and fast food establishments
also thrive in areas with a high adolescent population. Some entertainment and recreational
venues, such as movie theatres and golf courses, serve a broad section of the population.

 Education levels also figure into the socio-economic status of an area. Because income
usually increases with advancing educational attainment, many retailers focus on income
level rather than education. There are some exceptions to this, though. Bookstores are often
cited by retailers as a business whose success is directly correlated with the number of
college educated individuals in the trading area. Similarly, computer and software stores are
often located in areas with high levels of education. In general, areas with high levels of
educational attainment tend to prefer luxury items; and, they may have a preference for
shopping at smaller, non-chain specialty retail stores located in the fashionable districts. They
also tend to visit cultural establishments like museums and theatres at a frequency over three
times greater than those without a college degree. On the other hand, less-educated
populations generally have lower incomes and thus tend to prefer shopping at discount retail
outlets and chain stores. This group also spends more money on car maintenance and
tobacco products than those with a college degree.

 Occupational concentrations of white and blue-collar workers are used as another gauge of a
market’s product preferences. Speciality apparel stores thrive in middle to upper income
areas and those with above-average white-collar employment levels. Discount clothing stores

48
Agrana Fruit - United States

and used car dealerships are successful in areas with a higher concentration of blue-collar
workers. Office supply stores and large music and video stores are especially sensitive to the
occupational profile. These retailers target growth areas with a majority of white-collar
workers.

 Ethnicity is another factor retailers consider when choosing merchandise to carry. Data show
that ethnicity affects spending habits as much as other demographic characteristics, such as
income and age. Tastes in goods and services vary between ethnic groups, and local retailers
are wise to cater to the different needs of ethnic groups in their trading area. Ethnicity
influences retailers’ product mix, including the lines of clothing they carry, and their
advertising. Retailers that use segmentation based on race and ethnic groups must make
sure their efforts effectively measure the true preferences and behaviours of the community.

 Housing ownership and rate of housing turnover is an important factor for some retailers to
consider. Home ownership directly correlates with expenditures for home furnishings and
home equipment. Furniture, appliances, hardware, paint/wallpaper, floor covering, garden
centres and other home improvement products all prosper in active housing markets.

Comparing the Primary Trading Area with other Areas

Demographic statistics are especially useful if they are presented in comparison with other locations.
To see how the target trading area differs from other locations, it is useful to provide comparison sets
of data: comparable populations and the regional or national data as a whole.

The basic trading areas for United States are as follows:

1 United States of America


2 California
3 New York
4 Florida
5 Illinois
6 Pennsylvania
7 Michigan
8 Georgia
9 North Carolina
10 New Jersey
11 Virginia
12 Arizona
13 Massachusetts
14 Tennessee
15 Missouri

In addition the individual Cities and Town in United States are provided in the Market Research in
Section 3

http://www.dg-di.eu/BASE_FOLDERS/World_Cities/US.html

Comparing the target trading area with other populations and the regional data allows demographic
baselines to be established. These baselines will help determine whether the target trading area has
low, median, or high values in each demographic category. For instance, after examining
demographics for the target trading area, it may appear that there are a high proportion of white-collar

49
Agrana Fruit - United States

workers. However, this observation cannot be verified until one know what constitutes an average
number of white-collar workers.

Comparable populations can include five or six urban areas of similar size in the same region. The
urban areas chosen should reflect similar distances from metropolitan statistical areas of the region.
Depending on the geographic size of one’s primary trading area, one will need to select similar-sized
trading areas.

In addition to comparable populations, adding regional or national statistics will provide a broader
benchmark for comparing a specific trading area. Regional or National data will include a blend of
urban and rural areas. Accordingly, it will not be limited to uniform populations. However, differences
between the trading area and the regional or national data (such as per capita income) will be used
later in one’s analysis of retail or service business opportunities.

Demographic Data Sources

Detailed local census data is readily available from various national government agencies around the
world. For example, the U.S. Bureau of Census data can be retrieved at several geographic levels
(county, city/village, census tract, zip code, etc.); and similar data exists in many countries.

In addition to the government data, there are numerous, national data sources that can provide
demographic estimates for a particular trading area; albeit, much of this data is based on the
government and other public sources. Unfortunately much government data is not packaged in user-
friendly comparative formats that make it easy to compare one geographic area with another. One
needs to be able to tap into the knowledge of skilled demographers who have designed data products
centred on particular industry needs.

The essential retail tool is the correlation of general population demographic data with individual
markets and products. These DataGroup databases are designed to provide such data.

Lifestyle Data

Adding consumer lifestyle data takes the market analysis nearer to the reality of any market
forecasting situation. This data recognizes that the way people live (lifestyle) influences what they
purchase as much as where they live (geography) or their age, income, or occupation (demography).
Lifestyle data enables one to include the consumer’s interests, opinions, and activities and the effect
these have on buying behaviour in the retail analysis.

Lifestyle Segmentation Algorithm

Lifestyle Segmentation examines the relationship between a population’s lifestyle characteristics and
its product preferences. Retail revenues of particular Product Group classes are stimulated by large
concentrations of populations of similar characteristics and tastes. As a result, a retailer can develop
product mixes targeted to specific customer segments which display a high propensity to consume
the product range(s) being marketed.

Concentrations of lifestyle segments create demand for specific products or services. This tendency
to cluster is based on the evidence that people prefer to live close to those similar to themselves.
Homes and cars in any particular neighbourhood are usually of similar size and value. If one could
look inside the homes, one would find many of the same products. Neighbours also tend to participate
in similar leisure, social, and cultural activities.

The quality of a segmentation algorithm is directly related to the data that it inputs. High certainty
algorithms allow one to reliably predict consumer behaviour. In a retail business targeting particular
consumers, the algorithm allows the retailer to identify products and services that appeal to that
market segment. The usefulness of a segmentation algorithm depends on how well the data

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Agrana Fruit - United States

incorporates lifestyle choices, media use, and purchase behaviour into the basic demographic mix.
This supplemental data comes from various sources, such as till receipt records, credit reference
agencies, automobile registrations, magazine subscription lists, consumer product-usage surveys,
and so forth.

Lifestyle Data Sources

These DataGroup databases offer lifestyle cluster data, which utilize sophisticated statistical models
to combine several primary and secondary data sources to create their own unique cluster profiles for
each product group and market segment. Most models start with data from block groups that contain
500-1500 households. In rural areas, the data is more typically clustered by post or zip code. This
data will breakdown each geographic area into one or more of the over 100 defined market segment
classes based on differentiated socio-economic and demographic characteristics.

Lifestyle Segment Summary

These segments include:


• Demographics
• Socioeconomic Classes
• Consumer Behaviours

The Segmentation will include quantitative data, such as the Consumer Values Models, Product Life
Cycle Models, Buying Power Index, Quality Index, Advertising Efficiency Models, and so forth, which
measures potential demand for specific products or services groups. These indices compare the
demand for each market segment with demand from both regional and national consumers. It is
tabulated to represent a value of 100 as the average demand. The indices can be aggregated into a
single value. Values above 100 indicate residents are more likely to purchase that product or
participate in the respective activity. Conversely, values below 100 indicate residents are less likely to
purchase the given product. These values are then shown for the Trading Area of the specific
Retailer, the Regional and National values and the overall Median value.

In this report there are 15 Product Groups represented:-

Product Trading Area Regional National Median


Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

From this data, a clear picture of the important demographic, socioeconomic, and consumer
behaviour of residents in a specific Trading Area emerges.

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Agrana Fruit - United States

Lifestyle segmentation generalizes the types of customers in the trading area, which is useful in
making sense of a complex market. However, this simplification may not fully capture the particular
behaviours of the customer base or may overlook the propensity to consume of differentiated groups
in the trading area. Since data is continually updated in these DataGroup databases, lifestyle
segments are evaluated in near real-time. This is valid both where social and economic conditions
remain constant and where significant changes may make a static view of the segment less
representative of reality.

Thus lifestyle segments can greatly help one understand customers in the trading area only where the
survey data is gathered and updated on a regular and statistically valid basis.

Propensity to Consume Data

Estimates of household spending give an idea of the size of a market in value terms. For example,
Secondary data are available that allow one to estimate the size of the local food or restaurant
market, based on the number of households in the trading area. In addition, Primary data is useful to
provide refined estimates based on local demographics. It is important to remember that these
estimates measure the amount of spending by households residing in the trading area, not
necessarily spending within the trading area that also includes non-residents. Conversely, residents of
the trading area may choose to spend outside the trading area.

Consumer Expenditure Survey

Consumer Expenditure Surveys are the primary data source for Propensity to Consume estimates
that covers a whole range of household spending. The results of the surveys provide a
comprehensive picture of household spending and are used to revise the Consumer Price Index and
the Purchasing Parity Index for national (and sometimes regional) markets.

The Consumer Expenditure Survey usually includes a Diary Survey of daily purchases and an
Interview Survey of general purchases over time. The Diary Survey reflects record-keeping by
consumer units (individual and household shoppers) for two consecutive week periods. This
component of the Consumer Expenditure Survey collects data on small, daily purchases that could be
overlooked by the quarterly Interview Survey. The Interview Survey collects expenditure data from
consumers in interviews conducted on a randomised monthly basis. The data from both surveys is
integrated to provide a comprehensive database on all consumer expenditures.

In addition to the Consumer Expenditure Survey, there are supplementary and complementary
datasets to provide more sophisticated estimates of specific market segments and product group
consumption patterns. For example, a Differential Probability Model links spending by the consumers
surveyed to all households, with similar socioeconomic characteristics, with opportunity costs and
differential spending patterns. The results are spending estimates based on the demographics of a
particular trading area, which are reported together with the average spending per household and a
spend Propensity to Consume index. The index compares the spending of the trading area’s
households to the regional and national average.

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Agrana Fruit - United States

Geographic Information Systems

Demographic analysis is useful in understanding purchasing characteristics for different market


segments. While demographics can be collected and analyzed without the use of geographic
information systems, GIS often aids and enhances the analysis. Since the use of GIS may be costly
learning curve for many retail professionals not expert in GIS, a battery of software is available in the
DataGroup Toolkits provided to users to offer technical mapping assistance.

Demographic data for a trading area is often reported as single values for each demographic
category. For example, the trading area income is reported as one value, even though income can
vary across the trading area. GIS, however, can display demographic values in finer detail by
geographic unit (zip code, street blocks, etc.). Mapping these variations may reveal valuable visual
information that can be used to show the attractiveness of different retailing locations and assist retail
site planning.

Effective demographic mapping requires an understanding of some rudimentary cartographic


concepts. Perhaps the most important concept is an understanding of the problems associated with
demographic densities. Obviously, urban population density is usually higher than a similar sized
suburban area. Moreover, many retailers would view the large concentration of customers as a
competitive advantage over a suburban location. However, a map showing the number of people in
each geographic unit does not always show this relationship.

In addition to understanding the propensity to consume within a specific trading area, one also needs
to analyse geographic factors which may assist or impede those consumption patterns. For example,
geographical barriers (rivers, railroad tracks, highways, et cetera), which may divide an area and
thereby put certain locations in a ‘shadow zone’ which is difficult for consumers to reach. By contrast,
rapid transit transport links may assist service industry retailers, and stores selling small or easily
transported items.

GIS is not limited to producing maps and graphics, but can also be used as an analytical tool in
demographic analysis. Non-resident visitor profiling is vital for many companies, such as commuter
transportation, catering and tourist attractions. While collecting demographics for the surrounding
resident market is a straightforward process, non-resident visitors can come from a wide area; and
obtaining and analysing demographics for every area that produced a non-resident visitor is
unrealistic using traditional methods. In these instances, GIS can be used to profile demographics of
the non-resident market.

Many businesses, such as hotels, and ‘Destination’ retail venues (like flagship department stores or
luxury goods shopping streets), dependent on non-resident visitors and the use of data mining
techniques for customer records and payment records can be interfaced with GIS to produce a more
comprehensive view of a business’ actual catchment area.

Using neighbourhood demographic information as a simile, the demographics of a trading area as a


whole can be used to represent the demographics of an individual visitor from that trading area. Using
addresses, GIS can determine every trading area that produced a visitor and extract the
demographics of those trading areas. The demographics extracted from each visitor neighbourhood
can be combined to produce a useful demographic profile of the visitor market.

The demographic profile is even more useful when it is given some perspective. Similar to the
comparable population analysis, the visitor demographic profile can be used to determine what makes
visitors demographically different from the general population. Instead of comparing local trading area
demographics to those of other populations, the visitor demographics can be compared to the
demographics of a larger region. For instance, if visitors primarily originate from a regional area, the
visitor demographic profile can be compared to the demographics for the entire population of that
region. These demographic profiles of the trading area visitors and the larger region can be compared
on a category by category basis.

Once the visitor origins have been mapped, GIS is used to determine the trading areas containing
each visitor and extract the associated neighbourhood demographics. These neighbourhood
demographics are used as a proxy for the demographics of an individual visitor.

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GIS is used to combine all of the demographics extracted from every visitor neighbourhood.
Combining the trading areas creates a demographic profile of the visitors. To aid in the analysis, GIS
also creates a demographic profile of the larger region. The regional demographic profile includes
every trading area in the region instead of just those neighbourhoods that produced visitors. These
profiles are then used to examine differences in visitor demographics.

Demographic Category Trading Area Profile Regional Profile National profile


Males
Females
Average Household Size
Median Age
Age Less Than 18
Age 16 or More
Age 25 Or More
Age 65 or More
Median Household Income
Average Household Income
Per Capita Income
Education: High School
Education: College
Education: Qualification
Education: Degree
Education: Higher Degree
Occupation: Executive
Occupation: Professional
Occupation: Technician
Occupation: Sales
Occupation: Clerical
Occupation: Services
Occupation: Production
Home Owner
Home Renter

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Neighbourhood Analysis

Catchment Area Analytics


The successful location of individual retail stores also depends on the neighbourhood or economic
environment in which it is located. Whether the stores are located in a stand-alone position, a
shopping street, a shopping centre or mall, within another retail premises, or some other site location,
will impact on financial performance.
This is a question of Footfall Flows; being: how, from where, and when, does customer traffic interact
with a particular store location. Where retailers are selling impulse or discretionary items it is
necessary that customer traffic reaches their store before customers have spent their money en route.
This is a similar exercise to that which is employed by supermarkets in positioning products within the
aisles of their stores. One needs to encourage customers to spend their money in a logical flow
process so that they spend the optimum amount.
Whereas individual retail stores may not be able to capture Footfall Flow data across the entire
customer catchment area, DataGroup can provide this data and this can be interfaced with the
retailer’s own in-store footfall data.
One needs to evaluate and identify (within the catchment area:

Trade Analysis of Agrana Fruit: as an Excel file: Part_D


1. The spending hotspots within the consumer catchment areas.
2. The flow patterns for customer traffic, for example, en route from parking area to prime (most
visited) retail location.
3. The contour map of neighbourhood retailers and their products, for example, supermarkets,
food products, clothing, consumer electronics, et cetera. This will dictate the how and where
the customer will first spend their money, and thereafter what they may have to spend on
more discretionary purchases.
4. The traffic volumes for retail units and locations based on footfall numbers.
5. The retail segments and sites with dynamic and growing sales within the catchment area.
6. The fashionable or popular sites and retailers within the catchment area, and their particular
demographic profile.
7. An analysis to identify expected customer demographics for the particular store locations.
8. A footfall flowchart to identify expected retail traffic and sales for the particular store locations.
9. A forecast of the footfall expected as a result of a particular type of marketing campaign.
10. The store costs and overheads for the particular store locations correlated with potential
sales.
11. An analysis of retail store performance, product line performance, and customer segment
sales for the particular store locations.
12. A profitability forecast correlated with retail traffic and sales for the particular store locations.

Shopping Centre tenant mix


Retailers should be aware that the tenant mix of any shopping centre or mall in which they locate their
stores will potentially impact on their profitability.

The ideal tenant mix in which a retailer locates a store will depend on the various indicators of retail
success including sales density, visitor traffic, visitor demographics and often more importantly, the
nature and customer base of the other retailers in the retail space.

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Site Analytics

Performance management for individual stores


The understanding of the circumstances and causes of each and every variation in the revenues of a
retail operation is the basis of every successful retailer. The analysis of retail data correlated with
industry and market data allows retailers to react to events by seizing opportunities and facing
challenges.
The ability to address critical issues, not only the vagaries of the market and consumer demand, but
also seasonal variations, staffing levels, customer satisfaction data, retail store upgrades and layout
changes, marketing initiatives, and so forth, will allow retailers to perform better than competitors.

Site Analysis
It is essential for retailers to analyse and integrate data from each site. This includes sales, inventory,
visitors, conversion rates, staffing numbers, marketing and advertising promotions, public holidays,
weather, and other variables. This data gathering should be automated and DataGroup can provide
clients with suitable site based software that will capture this data.

Site Analytics
The analysis of the data will provide retailers with many tangible business planning tools, including:-

Trade Analysis of Agrana Fruit: as an Excel file: Part_D


13. Identify their optimum ratio of staff to customers
14. Identify unused store potential & resources
15. Improve their conversion rate and average transaction values
16. Increase store profitability and customer service levels
17. Refine operations in every inch of the store to capture opportunities
18. Track the effectiveness of marketing initiatives

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Footfall

The most important component of revenue


The numbers of potential customers which cross the threshold of any store will ultimately define that
store’s financial performance. The quantification of visitor numbers, and their subsequent correlation,
provides an analysis to assist the retailer to produce effective business planning. These
measurements will include:-

Trade Analysis of Agrana Fruit: as an Excel file: Part_D


19. The footfall patterns which are typical during each month of the year.
20. The peaks or troughs which may be affecting business performance and where changes
could be made, for example, expenditure on advertising and marketing activity to boost traffic,
or efficient resource allocation for peak visitor periods.
21. How footfall patterns differ in each site and in a representative area.
22. Correlations between store sales revenues and regional and national monthly footfall trends
23. Variations in footfall patterns between competitive retail sectors and outlet types.

Footfall Analysis
The collection of this data is essential to the analyse and understanding of customer behaviour and
trends as well as to allow retailers to understand conversion rates and retail location characteristics in
order to improve their business planning and forecasts. The understanding of footfall data can allow
the evaluation and understand of ‘before’ and ‘after’ scenarios for marketing and promotional activity;
understand footfall during both slack as well as peak periods; benchmark performance amongst
individual sites and generally in regions; and allow the use to see how and when one might improve
one’s profit ratios. Essentially, one gains insight into how one might optimise sales performance
through better sales efficiency, conversion rates, and customer service.

Footfall Analytics
The question of whether a retail site is performing to its full potential can only be answered if one can
analyse visitor numbers and compare those with other sites, other competitors and other distribution
outlets.
Essentially, the first question one must ask is if the property is properly positioned and located for
maximum profit and minimum risk.
Retailers use the data to locate their store portfolio, organise their markets, and segment their
customer data.
Retailers can measure the effectiveness of each location in attracting potential customers to their
premises. This is done in conjunction with different methods of marketing and promotion for different
store locations to develop an understanding of store performance and untapped store potential. This
is then extended to analyse conversion ratios to determine whether footfall numbers can be converted
into tangible sales.

Footfall Technology
The technology used to capture footfall data is relatively straightforward and essentially consists of in-
store sensors which count visitors and the appropriate data recorder and software to record those
visits. These sensors will consist of one or more of the following technologies, Car Counting – Retail

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Traffic, Laser Counter, Stereoscopic Video Cameras, Thermal Cameras, Wireless Infrared Beam, et
cetera. The actual equipment used always depends on the individual site circumstances.
Footfall measurement should be flexible, intuitive, and non-intrusive. Systems are designed for self-
administration and customised reporting of datasets:

Trade Analysis of Agrana Fruit: as an Excel file: Part_D


24. Classification which differentiates product location type and discrete areas within a store.
25. Reporting routines which allow control of each type of report, report schedules, and delivery.
26. Alerts whereby managers can receive text alerts when performance crosses a pre-set
threshold.
27. Rankings which identify best and worst performers according to criteria such as shopper
traffic, sales, costs, performance against target and staff numbers.
28. Personalisation of the system to accommodate multiple languages and time zones and which
will automatically switch to the pre-set requirements of users across the globe.

Conversion Rates

Conversion Analytics
The Conversion Rate is of course a vital issue. After having invested in footfall, the retailers want to
know how to convert that footfall into revenue. These measurements also allow retailers to identify
poorly performing stores where footfall is not being converted into sales.

Conversion Factors
The factors which influence conversion rates are complex; however they are decipherable with the
use of suitable software. Data analysis allows all the relevant factors to be considered when
evaluating and formulating store strategies. These may include the following issues:-

Trade Analysis of Agrana Fruit: as an Excel file: Part_D


29. The demographic environment in which stores are located.
30. The Conversion Rate and Product Sales Analysis of each location.
31. The Customer Profile of each location and the correlation with Conversion Rates.
32. The Financial Performance of individual stores and if these equate with expected Conversion
Rates.
33. The factors which are increasing or decreasing Financial Performance of individual stores,
when compared with comparable stores.
34. Identification and application of Conversion Rate factors to allow specific stores to improve
Financial Performance.

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Part E : Advertising, Marketing, & Events

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

Survey of Advertising Services used

Company Surveys of Agrana Fruit: as an Excel file: Part_E


Approval and usage of advertising services for company, retail outlet or brand purposes:
1. Which of the following best describes the line decision maker’s position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other

2. Where (Town, State, Country) is the office/site located?

3. How many employees work at this location?


a. 1 to 17
b. 18 to 19
c. 20 to 99
d. 100 to 199
e. 200 or more
f. Other

4. Select the range that best describes the approximate annual sales for the company at this
location.
a. Less than $100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Don’t know or Other

5. How much would you estimate you spent (in total) on the following advertising, sales and
marketing activities (at this location) in the past 6 months?
a. $0
b. Less than $500
c. $500 to $1,500
d. $1,500 to $9,000
e. $9,000 to $20,000
f. $20,000 to $50,000
g. $50,000 or More
h. Don't know

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6. Specify what percentage of your annual advertising budget is spent in the following
categories:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday & greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits

7. For each of the following advertising, sales and marketing services listed, which have your
company purchased in the past 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits

8. For each of the following advertising, sales and marketing services listed, which do your
company plan to purchase in the next 6 months:
a. Advertising in Yellow pages
b. Advertising in online directory / online yellow pages
c. Advertising in the local newspaper
d. Advertising in on-line search engines
e. E-mail marketing campaign
f. Holiday greeting cards to customers or clients
g. Other greeting cards to customers or clients
h. Logo clothing or promotional items (hats, t-shirts, pens, notepads)
i. Press release
j. Direct mail campaign
k. Television advertising
l. Radio advertising
m. Market research & Audits

9. If you conducted a direct mail campaign in the past 6 months, how did you go about preparing
and sending your direct mail for the most recent campaign you ran?
a. Did the entire process internally (everything from writing letter, buying supplies,
printing, stamping and mailing)
b. Outsourced the direct mail to an agency
c. Used an on-line provider

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10. If you conducted a direct mail campaign in the past 6 months, which of the following items did
you send as part of the most recent campaign you ran?
a. Postcard
b. Coupon
c. Letter
d. Newsletter
e. Brochure
f. Gift item
g. Other

11. How satisfied are you with the overall results of your direct mail campaigns; that is, the
increase in sales you generated or the overall impact on your business.
a. Extremely satisfied
b. Somewhat satisfied
c. Neither satisfied nor dissatisfied
d. Somewhat dissatisfied
e. Extremely dissatisfied

12. If you outsourced your advertising, print production, or direct sales campaigns, what was your
opinion of the performance you received:
a. Poor value for the money/ price
b. Low quality of finished product
c. Too complicated
d. I like to be able to see the proofs or samples before the campaign
e. Uncomfortable outsourcing
f. Want to do it ourselves
g. Slow speed of service
h. Too much of a hassle to switch vendors
i. Don’t trust the supplier
j. Other

13. How likely would you be to outsource your advertising, print production, or direct sales
campaigns?
a. Very likely
b. Somewhat likely
c. Somewhat unlikely
d. Very unlikely
e. Other

14. If you use a direct mail or sales prospect list, how did you acquire the list that you used most
recently?
a. The company’s own customer list
b. Purchased a list from an external list broker
c. Purchased a list from a catalogue
d. Purchased a list from a direct mail agency
e. Purchased a list from an on-line list service
f. Did not acquire a list
g. Don’t know

15. Would you be likely to consider using a list from a partner company, and providing your
company list in exchange?
a. We don’t use lists or use only the company’s customer list
b. List quality important
c. Uncomfortable with sharing
d. Too much of a hassle to arrange co-operative deals
e. Other

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16. Regarding the role you play in selecting Website Services for your company. For each of the
items below, tell us what your individual involvement is in the purchasing process.
a. Advertising
b. Determine need to purchase
c. Evaluated various products/vendors
d. Authorised / approved purchases
e. Determined where to purchase
f. Placed orders
g. All of the above
h. Other

Consumer Evaluation of Advertisements

Customer Surveys of Agrana Fruit: as an Excel file: Part_E


Advertising Evaluation Rating. The motivating power of each advertisement campaign on a 1 to 10
scale.
17. In respect of the company’s last or current advertising campaign, was the advertising:
a. Not at all motivating
b. Extremely motivating
c. About average for this type of product advertising

Focus Panels
Customer Surveys of Agrana Fruit: as an Excel file: Part_E

In respect of the current (Test / Benchmark) advertisement campaign that promotes this company /
product / brand and current advertisement campaign of 14 competitive companies / products / brands:
18. After considering the advertisements, divide them into three groups. That is, arrange the
advertisements into those you:
a. Will watch over and over again
b. Might watch several times
c. Never want to watch again

19. What people, characters, or things stand out in the advertisements?


20. What thoughts and feelings is each person or character having during the advertisements;
and how do you know that?
21. What are some ways that the product enhances the situation being shown; and where in the
advertisement did you see, hear, or feel that?
22. What are some impressions that you take away from the advertisements?
23. Is that impression positive or negative?

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24. Here are listed several concepts or feelings. Pick out the concept or feeling you think is most
closely associated with the advertisements:
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life

25. Tell us about a situation in which you have consumed/used/bought/etc. the product and felt
like the people or characters shown in the advertisement.
26. After watching the test or benchmark advertisement. What people, characters, or things stand
out in the advertisement?
27. What thoughts and feelings is each person and character having during the advertisement?
How do you know that?
28. What does the advertisement say about the product? Where in the advertisement do you see,
hear, or feel that?
29. What parts of the advertisement don't seem to fit together? That is, parts of the advertisement
that causes some confusion or perhaps is distracting?
30. Pick out the concept or feeling you think is most closely associated with the advertisement.
a. achievement and success
b. living an active and full life
c. making smart choices
d. freedom to be one's self
e. self-reliance
f. being accepted by others
g. caring for others, particularly the underdog
h. being young at heart and in appearance
i. personal security
j. being a good parent
k. making a better world
l. living a comfortable and contented life

31. After seeing the company’s advertisement, tell me how strongly you think it will motivate
people like you to purchase the product during the next one or two weeks?
32. How do you rate the advertisement?
33. Why do you think it will motivate people like you to purchase the product?

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Consumer Opinion of Advertising Effectiveness

Customer Surveys of Agrana Fruit: as an Excel file: Part_E


After seeing the company advertisements:
34. How well do you remember these advertisements?
a. Don't remember at all
b. Remember company but not product or advertisement
c. Remember company and product but not advertisement
d. Remember advertisement.

35. Other than trying to get you to buy the product or service, what is the main message of these
advertisements?

36. What did you like most about these advertisements?

37. What did you like least about these advertisements?

38. If you were describing this advertisement to a friend, would you say these advertisements
were:
a. Active
b. Attention-getting
c. Boring
d. Cheerful
e. Creative
f. Emotional
g. Energetic
h. Genuine/sincere
i. Honest
j. Humorous
k. Informative
l. Irritating
m. Memorable
n. Natural
o. Offensive
p. Pleasant
q. Satisfying
r. Strong
s. Unique
t. Warm-hearted

39. Indicate how descriptive the following statements are of you:


i. Just like me
ii. A lot like me
iii. Somewhat like me
iv. Not much like me
v. Not at all like me
e. It is important to me to be treated well.
f. I like the "royal treatment" in stores
g. I have somewhat old-fashioned tastes and habits
h. I like my clothes to look up to date
i. I never have enough time to shop
j. I think I am a little bit wild
k. I think shopping is fun
l. I often buy things on impulse
m. I have lots of leisure time
n. I expect to have more money next year

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40. Based on the Product features advertised, and in the Company advertisements:
a. The advertisement message is understandable.
b. The advertisement is believable
c. The advertisement's message is relevant to me.
d. The benefits described in the advertisement are believable to me.

41. After viewing this advertisement, would you consider purchasing the product?
42. These advertisements are much better than other advertisements for competitive products in
this product category.

43. Indicate how descriptive the following statements are of you:


i. Just like me
ii. A lot like me
iii. Somewhat like me
iv. Not much like me
v. Not at all like me
a. My world seems to be coming apart at the seams
b. I think I am a smart shopper
c. I like to be outrageous
d. I feel I get a raw deal out of life
e. I think a woman's place is in the home
f. I prefer stores where prices are always low
g. I never seem to have enough money
h. I regularly read newspapers
i. I have more money now than last year
j. When I shop, I just want to get it over with

Advertisement Evaluation Survey

Customer Surveys of Agrana Fruit: as an Excel file: Part_E

Evaluation of TV, Newspaper, Print, and other advertisements viewed for the retail store:

44. Indicate your evaluation of Store Newspaper or Print advertisements:


a. Entertaining
b. Effective
c. Interesting
d. Attractive
e. Informative
f. Professional

45. Indicate your evaluation of Store TV, Radio, and Internet advertisements:
a. Attractive
b. Interesting
c. Informative
d. Professional
e. Entertaining
f. Effective

46. Indicate the number of friends, relatives or neighbours consulted while researching for this
product.
47. Indicate the number of TV or radio advertisements that you remember seeing during your
search for the product purchased.

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48. Indicate the number of Consumer reports that you reviewed in researching for the product
purchased.
49. Indicate the number of Newspaper or magazine advertisements that you remember seeing
during your search for the product purchased.
50. Where was the last place you saw or heard an advertisement for this Store?
a. newspaper
b. magazine
c. TV
d. Radio
e. Internet
f. Flyer
g. other

51. Which radio stations do you most often listen to?

52. What time of the day do you most often watch TV?
a. morning
b. afternoon
c. evening
d. late night

53. Which newspapers do you most often read?

54. Do you subscribe to cable, pay, or thematic TV?

General Customer Surveys - Advertising Perceptions

Customer Surveys of Agrana Fruit: as an Excel file: Part_E


55. Advertising Posture: Store/Outlet Level
56. Advertising Posture: Company Level
57. Promotional Activity: Store/Outlet Level
58. Promotional Activity: Company Level

Consumer Marketing Test


Consumer Marketing Tests of products from Agrana Fruit: as an Excel file: Part_E
59. How does the Company’s product(s) rate on the following attributes?
a. Not At All Descriptive
b. Very Descriptive
i. High quality
ii. Expensive
iii. A brand I can trust
iv. Well built
v. A good value

60. What other brands of product(s) in this category have you used?
a. I haven't used the product(s), but I'm familiar with it.
b. I know nothing about the product(s).

61. What is it that you like about the product(s)?


62. What do you like least about the product(s)?

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63. What would be your main reason for buying the product?
64. Overall, how interested are you in buying this product if it were available?
a. Not at all Interested
b. Not Very Interested
c. Neither Interested nor Uninterested
d. Somewhat Interested
e. Very Interested
65. Which of the following best describes your need for this product?
a. I really need this product because nothing else compares.
b. This is a minor improvement over what I currently use.
c. It looks okay but is about the same as my existing product.
d. My current product would serve me better.
e. I do not need this product?

66. What price would you expect to pay for the product(s)?
67. Assuming the this product is priced comparably to other major brands, would you say it is:
a. Very poor value
b. Somewhat poor value
c. Average value
d. Fairly good value
e. Very good value
68. In what ways does the described product appear to be superior to other product(s) in this
brand category?
69. Overall, what would be your most important factors in choosing a product(s) in this category?
a. Value
b. Best performance
c. Good repair/Warranty service
d. Recognised brand name
e. High quality
f. Shopping convenience
g. Easy/fast service
h. Discount
i. Good sales personnel/dealer/outlet
j. Broad selection of products
k. Do not know
l. Other
70. Other than the product itself, which of the following would most influence you when deciding
to buy the product(s)?
a. Commentary in the media or on TV
b. Commentary on the Internet
c. Word-of-mouth
d. Sales/service representative
e. Industry publications
f. Advertising
g. Trade shows/events
h. Guarantee/warranty offers
i. Other

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Effectiveness of marketing initiatives


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_E

71. Are promotions attracting the right kind of visitor?


72. What is the impact of social versus print media?

Shopper behaviour is constantly changing and by understanding the response to different marketing
approaches and channels, one ensures the best value from the marketing budget.
Site Analytics enables one to capture the timings and category of marketing campaigns, alongside all
the critical site data to evaluate marketing within the context of key variables such as weather, time of
year and critical outcomes such as traffic and retailer sales lift.

Corporate Marketing Evaluation


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_E

In considering the overall direction of the company's marketing effort, how would you rate:
73. the company's vision and direction?
74. the overall company operations today, compared with a year ago?
75. the financial strength of the company?
76. the efficiency of workflow in the company?
77. the company's skill in marketing products?
78. the ability to develop strong consumer promotions?
79. the regular introduction of new products?
80. the introduction of new, innovative packaging?
81. the company's focus on improving customer satisfaction?
82. the quality of relationships with distributors?
83. the company's effectiveness with retailers?
84. the quality of the promotional activities?
85. the quality of the sales support materials?

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Part F : Store Experience

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

Customers demand an in-store experience in return for shopping (in personal) at speciality retail
outlets; and increasingly at general retailers as well. The improvement of store-level operations is
often not a prime concern of senior corporate managers; however failure to be aware of the
expectations of customers will only damage profitability. An effective site operations program which
creates a differentiated (and hard for competitors to replicate) store experience will attract and hold
the attention of shoppers.
Delivering an experience that is satisfying to customers and differentiated from competitors drives
both repeat visits and improved store productivity. Conversely, a failure in satisfying the expectations
of a fulfilling experience will leave customers wanting to try competitive offerings; be that a new store
brand or an existing store brand with a new offer or promotion. Furthermore, a bad store experience
will generate a ripple of negative comments with that customer’s family, friends, and co-workers.
For every retail situation, the interaction with the customer represents a mosaic of perceptions,
neuroses (and indeed psychoses) on the part of the customer; within the container which represents
both the store environment and the actions of store personnel. The help the customer (indeed to help
the customer spend his or her money) the retailers must provide an appropriate store experience
which includes:-

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


1. Product & Retail Offer design
2. Site Operations design
3. Support Program design

Whilst the Product & Retail Offer design presents to the customer the outward sign of the store
experience, this can represent a major investment for the retailer, and any defects may entail major
upgrades such as new layouts, a new visual image, and brand enhancements; and these often
require substantial capital investment and time commitment to execute. Likewise, customers perceive
the impact of offer Support Programs that might be introduced at a corporate level, however even the
best programs must be underpinned by effective and consistent on-site execution. Otherwise, the
retailer makes promises and offers in its advertising and other communications that many of the
outlets cannot fulfil for operational reasons. By contrast, Site Operations, can be rapidly improved and
this will yield improvements in the customer experience and result in improvements in revenues.
Reliable store performance to ensure a high level of customer store experience will lead to greater
customer loyalty, consistent repeat business, and more flexibility to expand the product offering.
The key to reliable store performance is properly selected, trained, and motivated employees who are
more productive, consistently more effective with customers, and more aware of store effectiveness
and performance. In such retail environments a retailer can expect like for like outlet revenues to be
25-50% greater than the average. Notwithstanding the fact that personnel performance
enhancements take time to implement, such improvements involve little or no capital outlays and help
differentiate a retailer’s stores from those of competitors.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F

Retailers should consider and expect several factors to be critical to their operation:-

4. A consistent product offering from friendly and knowledgeable employees who quickly assist
and guide customers to the right products.
5. Help and Advice with customer requests.

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6. Consistent Product Quality


7. Spotless Store, Displays and Equipment
8. Good stock levels
9. Shelves and Displays kept uniformly tidy
10. Premium Pricing for a better store experience.

For retailers to excel in consistent site operations they must understand that sustained execution
requires more than just operations manuals and a full complement of staff.
Retailers must develop and use interconnected operating system with detailed and fully defined
processes that can deliver a consistent customer experience across the entire store chain.
Through clearly defined customer interaction scripts, detailed daily activities guides and employee
schedules, targeted hiring, training, and development, and a motivating career path and
compensation plan, employees have the tools and authority to truly focus on the customer and deliver
the right experience again and again.
Without a thorough store operating system, retailers (irrespective of enormous and creative
advertising, strong product offers, and high quality store designs) will be compromised.
Sales and profit margins may vary across a store network. Customer numbers and sales may vary by
200-300% across individual stores; however in trying to understand what accounts for performance
differences one might naturally look at individual store locations and customer traffic flow, local
competitive set and density, differences in size, layout, and age of store, and local marketing and
pricing. However retailers often fail to understand the impact on revenues from an inconsistent
customer experience.
Variances in customer store experience produce a 20-40% sales performance difference. In contrast
to the other factors, this portion of the difference is not structural and can be remedied rapidly and
effectively.

Retailers should use independent Mystery Shoppers and regular Customer satisfaction surveys to
monitor these dynamics.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


Site operations:-
11. Defined operational processes.
12. Uniformity of site operations
13. Customer interaction training
14. Activity guides
15. Employee training & development
16. Employee compensation and motivation packages
17. Site monitoring systems
18. Customer satisfaction monitoring systems

Evidence of inefficient or dysfunctional behaviour in the site environment:-


19. Lack of a consistent customer store experience at individual store level
20. Lack of a methodology for monitoring customer satisfaction at individual store level
21. Lack of a uniform, customer orientated, site operation
22. Lack of a methodology for updating operations and systems
23. Lack of internal planning and management coordination
24. Over-reliance on the store managers
25. Lack of monitoring of the performance of individual store staff
26. Lack of on-going staff training programmes
27. Ill-considered promotions, projects and initiatives which distract store staff from their prime
duties
28. Low value administrative tasks which could be automated at site level
29. Senior staff not regularly spending time at store level serving customers

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30. Senior staff not regularly visiting and shopping at franchisees’ stores
31. Senior staff not regularly visiting and shopping at competitors’ stores

Improving store-level operations usually yields a high return on investment and tends to increase
sales and margins by between 5-15%. Good quality site operation creates a sustainable competitive
advantage and differentiation, in addition to a reinforced culture of customer focus, motivated and
productive employees, and lower staff turnover. Such improvements benefit retailers of all sizes,
formats, and competitive positions and unlock latent value from store operations
The benchmark of all good retailers is the placing the customers at the very centre of the site
operation. However much managers may be involved in hiring staff, organisation, and maintaining
sites, the prime imperative must be the dynamic between customer and store experience. Retailers
cannot allow this vital relationship to vary store by store due to the vagaries of either inconsistent
store presentations or employee training. Managers must ensure that adequate systems exist which
provide staff-customer interaction guides, customer handling scripts, service tools, and explicit
systems which guarantees that employees know how to treat customers and create a consistent store
experience.
Senior corporate managers at retailers should maintain a regular and rigorous, critical assessment of
the current operations in order to identify if and where gaps exist with best practice.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


Checklist:-
32. Site-by-site performance review and customer satisfaction scores.
33. Site-by-site standard deviation analysis which would signal inconsistent execution.
34. Identification of the performance improvements that would be attained if the average store
improved performance to within 25% of the top 10 stores.
35. Identification of the ideal customer store experience.
36. Survey of store employees at individual sites which identify variations in their understanding
of the ideal customer store experience.
37. Review current store operating system to see whether it conforms to the three key
components of people strategies, store management, and customer interactions.
38. Clarify the key operating processes with those implementing them to understand whether
these processes actually support the desired customer experience.
39. Conduct unannounced store visits.
40. Observe customer interactions and experiences.
41. Clarify with employees what drives their daily actions and efforts to serve the customer.
42. Evaluate how consistently the preferred customer experience is being delivered by stores.
The above checklist will identify which activities are weak and which need to change, how many
employees will be involved, and the potential rewards to be achieved by upgrading site performance.

A professional product offerings and brand management are of course essential; however they must
be complemented by consistent site execution at each outlet.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


43. Product Offer design
44. Store concept and format innovation
45. Branding, image, and design
46. Channel and brand management

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47. Site and Network Operations


48. Roles and personnel staffing
49. Customer-facing activities
50. Site-management activities
51. Dealer/franchisee/distributor relationship management
52. Measurement and rewards

53. Offer support


54. Product or service offer pricing and management
55. Advertising, promotions, and CRM
56. Supply chain management
57. Network planning and real estate management
58. Administration and information Management

59. Store Visit checklist


60. Customer satisfaction
61. Customer satisfaction during past visits
62. Product mix
63. Service satisfaction
64. Display of products & POS
65. Employee attentiveness
66. Employee attitude
67. Employee product knowledge
68. Speed of service
69. Transaction handling
70. Store maintenance
71. Store cleanliness & tidiness
72. Consistence of service during peak times
73. Consistence of service during slack times

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Distribution channels
Retailers that operate franchise, license, or dealer distribution channels must seek to control the on-
site operations of their distributors, especially in the matter of customer store experience.
Customers do not differentiate between one type of store operation and another, they only see the
store brand and they expect and demand a consistent level of customer service.
The most successful franchisors make sure that their franchise operating system and standards
enable the franchisees to execute the required customer experience.

Retailers distributing their products via third party outlets need clear guidelines for their distribution
channel:-

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


74. Establish customer service standards which are formalised and part of the distribution
channel contract.
75. The customer’s store experience must be specified in manuals and training.
76. Performance targets must be set and monitored. These may include transaction speed,
staffing levels, and response times.
77. Site operating systems to help distributors recruit and train employees, define roles and
customer interactions, manage the store’s activities and staffing, and measure performance.
78. Distributor support systems and training.
79. Enforcement of standards amongst distributors. Formalised monitoring of site operations, for
example, mystery shoppers, customer intercepts, coaching audits, surprise visits, and
scorecards to ensure accurate feedback and corrective action.
80. A suitable compensation and reward system which incentives distributors to improve
performance.

Multi-channel consumers re-enforce the need for positive in-store experiences


Retailers are increasingly faced with two challenges, the growth in ever mobile consumers using a
variety of purchasing methodologies, and the ever more urgent need to attract consumers to a
physical store location.
In recent years retailers have engaged in initiatives to produce online retail purchasing opportunities,
and they have paid especial attention to the matter of mobile payments. However, if they fail to re-
invent the in-store experience then they may as well shut up shop and become pure online retailers.
Some retailers have realised that rather than close stores they can strengthen and re-enforce their
brand by giving their outlets an upgrade and giving their customers a better store experience.
What is needed is not just a cosmetic facelift, but the re-inventing of the store brand by creating a
"brand story" to engage and involve a consumer in the shopping experience which will undoubtedly
include interactive elements, intuitive and futuristic store experiences, one-to-one digital dialogues
with customers, virtual shopping screens, audio/video presentations, Quick Response Code
integration and other ‘attention getting’ store displays.

The store experience must have the following elements:-

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


81. An Emotional Focus for the brand
82. Animation and movement
83. Channelling of consumer behaviour
84. Collaborative initiatives
85. Digital Interactive communication with customers
86. Digital Media integration
87. Events

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88. Excitement
89. Innovation
90. Investment in Digital devices, POS and Display
91. Quality design concepts
92. Showcasing
93. Technology
94. The Beating Heart of the brand

With Main Streets and High Streets in decline, and evidence of tough times in shopping centres and
malls, it is becoming increasingly clear that retailers cannot simply sit back and wait for consumers to
pass their doors. Retailers have to develop their stores as Destinations. Consumers come to the store
not because they happen to be passing down the street, but because they are specifically attracted to
the store.
Retail multiples are bombarded with the constant noise and distraction of independents that open a
store with a local fanfare, distract the consumer, and then equally quickly disappear. These
independents, whilst being a nuisance, can act as a stimulus to established retail chains because the
independents often bring innovative approaches and interesting service offerings to consumers. The
retail chains can often learn from independents and apply the lesson across their network.
Multiples engage in gimmickry on an ad hoc basis from time to time. The Selfridge's department store
in London produced a "No-Noise" in-store promotion whereby they attempted to sell name brand
products with no logos. The store suggested that it was, "To help you find balance in this fast-paced
world… customers to find a moment of peace in a world where we are bombarded by a cacophony of
information and stimulation."
Burberry has used digital high tech for its brand of reinvention. The grand opening of its largest Asia
Pacific store dramatized its bad weather gear by making it virtually rain during its "Burberry World
Live" launch. Then Burberry turned its flagship London store on Regent Street into a "living website"—
a digitally-enhanced shopping experience that filled the 44,000-square foot space with innovations of
all kinds (including that previously debuted digital rain). In the Chicago store it hosted a local event
that continued the theme of "retail as theatre," incorporating digital media, entertainment and fashion.
These however are more evidence of over exuberant PR people rather than any real attempt to
produce meaningful in-store experiences.
More significant was when Marks & Spencer installed 10 virtual mirrors in their retail stores to coincide
with their virtual mirror application available on their website. Customers can see, in-store, how
cosmetics and make-up look against their skin, without actually applying the makeup. This uses
technology which helps the customer consider choices and possible combinations without the time
and inconvenience of the actual physical application of cosmetics.
The use of digital technology to display products, select products, pay for products and ultimately
deliver products to the customer will increase in the future and retailers should offer this as an option
to customers. The integration information provision to the customer and e-commerce is attractive to
many customers.
For the future there is the suggestion of the availability of ad hoc product designs, indeed in one
London shopping centre a company offers 3D printing which manufactures products to order. 3D
printing for general use may be some way away, but it is coming.
Similarly the use of new materials is also coming. Imagine the use of Graphene and other advanced
materials in a consumer context.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


To future proof their positions in the market retailers have to expand their thinking:-
95. Product Offer and Network Strategy:
96. Channel and brand strategy
97. Customer experience development

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98. Customer segmentation and targeting


99. Franchise development
100. Loyalty program design
101. Market portfolio strategy and store-level investments
102. New consumer product development
103. New product offer development
104. The use of new manufacturing technologies
105. The use of new materials and technologies
Site and Network Operations:
106. Cost reduction and productivity improvements
107. Detailed store market and customer analysis
108. Developing and implementing day-to-day operating processes
109. Economic and operational benchmarking
110. Site economic analysis
111. Store employee hiring, training, and management
112. Store operations best practices
113. Store-level technology
114. Supply chain management
Implementation:
115. Advertising and promotions engineering
116. Customer-focused retailing culture
117. Franchisee management
118. Merchandising and offer development
119. New business launch
120. On-site pilot tests and execution
121. Performance measurement programs
122. Product and service pricing
123. Testing and learning tools

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Exterior Store Presentation

Identifiable Store Name


Consumers must perceive an effective store name which sets the tone and provides identification by
creating an image for the consumer.
The store name has to be easy to say and remember, and be indicative of the images and emotions
which the retailer wishes to implant into the consciousness of the consumer.
The store name should have longevity, and should not be too trendy or too associated with any
particular identification which may prove transitory and liable to become unfashionable.

Visual Trademarks
The retailer’s identifiable trademark and logo provides a visual image to trigger the consumer’s
memory recall of the store name. This is done with a combination of words, pictures, colour, shape,
typeface, texture and/or style to make the image prominent. The overall image of the store must be
Identifiable even in the absence of the store name (which might be obscured because of the viewing
angle or some obstruction. The successful trademark image should be unique, indicative of the
retailer’s products and services, and be consistent with the overall impression the retailer wishes to
imprint on the consumer.

Unmistakable Storefronts
Storefronts must provide instant recognition and memory recall, both at a distance and up close. The
use of a well-designed combination of exterior architecture, signing and window displays initially
ensures a powerful first impression, and thereafter reinforces that impression each time it is viewed by
the consumer.
Exterior Architecture
The store exterior look is often referred to as the architecture, and comprises of various
aspects such as building materials, architectural style and details, colours and textures.
The store’s architecture must accord with and reinforce the consumer’s expectation of the
retailer and the brand.
Store Signage
Store signage is the essential element of the storefront, identifying the retail brand and
encouraging consumers to patronise the store. The value of strong storefront signage cannot
be underestimated, both in terms of brand recognition and competitive advantage in a
crowded retail landscape.
Store Façade
The store frontage should entice and inform passing potential consumers. Consumers should
consult a store’s windows as they might look at the store’s catalogue or web site. The more
interest, movement and animation found in the store window the greater the effect on
potential consumers.
Vantage Point
The design of the storefront must consider the customer's vantage point, the speed of
passing foot and motorised traffic, and the opportunities available to attract the attention of
potential customers.
A storefront with a 90º angle of approach will very rarely be adequate, either in a street
location or a shopping mall. The direction of customer traffic flow is influenced by various
factors, site access points, the location of nearby parking or public transport, the nearby high
traffic volume venues, and the width of streets or shopping mall corridors, et cetera. All these
factors will influence how and from where consumers view the storefront. A good retail
storefront design will include modular elements which will allow individual storefronts to be

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customised for the particular location. Thus the design elements can be positioned to face left
right or head-on.

Store Entrance
The store entrance can be a barrier to entry or an invitation. The flow from the outside to the inside
should be effortless. Whereas street locations do pose questions of security, energy conservation and
the reduction of exterior nuisance; in shopping malls retailers can use wide and open entrances which
allow seamless entry from the mall to the store. Many retailers rely on impulse purchases and
therefore it is important to create an open storefront by removing physical barriers and providing an
unobstructed view into the store interior with a glass frontage. Removing barriers also includes
removing the clutter of notices, credit card signs, unrelated logos, and other muddle which tends to
build up in retail locations.
Those stores which require doors for climate control, security or because the store offering suggests a
need for intimacy, have less opportunity to attract impulse buyers; and therefore the task of a
welcoming store entrance is even greater. For such retailers, an unobstructed and welcoming
entrance accompanied with a well-designed window display is essential.

Consistent and Compelling Store Image


An impulse consumer will spend a couple of seconds scanning a store exterior before then trying to
scan the store interior through the storefront. Within less than 4 seconds that consumer will have
decided whether to enter the store or not.
In most instances, consumers are either on a mission to make a planned purchase, or is impulse
shopping for amusement, entertainment or ideas.
Some consumers may visit a retailer to make a premeditated purchase or they may decide to enter a
store because they are comparison shopping for something specific. For impulse buyers the decision
to enter a particular store rests with the reinforcement of their brand confidence in that the retailer,
and the assurance that in browsing they are using their time effectively.
Those with time on their hands are more inclined to enter a store impulsively, drawn by the overall
impression that the retailer may have something of interest to them. The external store image gives
them the impetus and the interest to enter.

Customer Surveys of Agrana Fruit: as an Excel file: Part_F


First impressions are derived from the Customer Surveys:
124. Exterior Identifiable Store Name
125. Exterior Visual Trademark
126. Unmistakable Storefront
127. Exterior Architecture
128. Exterior Store Signage
129. Store Façade
130. Vantage Point
131. Store Entrance
132. Consistent and Compelling Store Image
133. Brand Hook
134. Positive impressions

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Customer Surveys of Agrana Fruit: as an Excel file: Part_F


The following parameters are examined in the Customer Surveys:
135. Does the Exterior communicate to the customer who the retailer is, and what they sell?
136. Does the Fascia present the name, logo, corporate graphics and colours?
137. Is the Store entrance open, semi-open, funnel / recessed / lobby, standard door?
138. Is the Window display eye-catching?
139. Is the Orientation and Vantage point of the suitable?

140. How does the customer rate the Storefront?


141. How does the customer rate the Marquees or similar fittings?
142. How does the customer rate the Entrance/s?
143. How does the customer rate the Display Windows?
144. How does the customer rate the Height of Building?
145. How does the customer rate the Size of Building?
146. How does the customer rate the Signage?
147. How does the customer rate the Store Visibility?
148. How does the customer rate the Store Uniqueness?
149. How does the customer rate the Surrounding Stores?
150. How does the customer rate the Surrounding Areas?
151. How does the customer rate the Parking?

152. Is there sufficient Identification of Store Name?


153. Does the Store Identification set the tone of the store?
154. Does the Store distinguish itself in the customer’s mind?
155. Is the Store Name easy to say and remember?
156. Are there sufficient Visual Trademarks?
157. Does the Store Trademark provide a visual image to accompany a store name?
158. Does the Store Trademark combine words, pictures and styles to make it stand out?
159. Is the Store identifiable even without seeing store name?

160. Is the Storefront Unmistakable?


161. Did the Storefront stop passing customers?
162. Does the Storefront provide instant recognition and recall?
163. Does the Storefront project a clear and concise image of what’s inside?
164. Does the Storefront use attractive exteriors, signage, and window displays?

165. How does the customer rate the Store Entrance?


166. Is the Store Entrance good in Mall situations?
167. Is the Store Entrance free of visual clutter?
168. Is the Store Entrance unobstructed and welcoming?

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Interior Store Presentation

Visual Look
The store front, and an interesting entrance way, helps in delaying the passing of customers; and
establishes a positive first impression which might lead to that customer entering the store. Once
inside, the store’s visual messages should create feelings of consistency or clarity. Consistent aisle
patterns, efficient merchandising and unambiguous signs support the overall brand image of the
store.

Visual Hook
A visual hook is analogous to the ‘hook’ in music that produces a hit tune. It is a refrain, often
repetitive, which calls attention to the store and re-enforces both the store brand and consumers
sentiments towards the brand. Powerful visual hooks are created integrating visual merchandising
components to give a more memorable impression. An exciting store presentation, effectively signed
product offerings, powerful interior displays, in-store animation or events, all help attract customers to
the store.
Effective visual hooks provide an impetus to consumers, especially the impulse buyers. By creating a
compelling hook for product offerings using the appropriate techniques a retailer can greatly increase
impulse buys and encourage passing trade. Increasingly brand hooks use sensory mechanisms for a
total image package.

Leveraging Positive Impressions


By creating a consistent positive impression in the mind of consumers they are able to recognise and
identify with particular store brands. This is especially important with retailers with multiple locations
which differ in size, shape, design and merchandise mix; here the creation of continuity of image by
having common elements throughout the chain is essential. By extending common exterior and
interior elements to all stores the retailer can leverage the investment and create an even more
durable store brand.

Customer Surveys of Agrana Fruit: as an Excel file: Part_F


First impressions are derived from the Customer Surveys:
169. Interior Identifiable as Store Brand
170. Interior Visual Trademark
171. Interior Unmistakable as Store Brand
172. Interior Fittings
173. Interior Signage
174. Interior Displays
175. Consistent and Compelling Interior Image
176. Brand Hook
177. Positive impressions

The following parameters are examined in the Customer Surveys:


178. Is the Store Look appealing?
179. How effective was the Visual Look?
180. Was the entrance inviting?
181. Did you have a positive first impression when you entered the store?
182. Was the store interior well organised and not confusing?
183. Were you able to navigate the store in a consistent and logical way?
184. Does the store have a Visual Hook with which you can identify?
185. How effective was the Visual Hook?
186. Did the Store Interior draw your attention?
187. Did the Store suggest that there was something interesting for you?

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188. Was the visual merchandising attractive?


189. Have you used other stores in the same chain?

190. Did you like the Store layout?


191. Was the floor plan logical?
192. Did you think the floor plan was small?
193. Did you think the floor plan was medium or average size?
194. Did you think the floor plan was large?
195. Did you like the Store’s interior in general?
196. What did you think about the interior finishes?
197. What did you think about the ceiling?
198. What did you think about the lighting?
199. What did you think about the displays?
200. Were the displays informative?
201. What did you think about the sales desk or counters?
202. Were there any sitting areas?
203. Would you prefer to stand or sit whilst waiting?
204. What did you think about the interior graphics?
205. What did you think about the advertising displays?
206. What did you think about the store image or branding elements?
207. What did you think about the product displays?
208. What did you think about the product dividers?
209. What did you think about the shelving or product stacking?
210. What did you think about the product accessibility?
211. Were the products displayed in a manner consistent with their value?

212. What did you think about the Store Lighting in general?
213. Was the lighting level sufficient?
214. Did you see any faulty light fixtures with lamps burned out?
215. Was the lights properly aimed or directed?
216. Did the store have old-style or modern lighting?
217. Did the store have accent lighting to highlight particular products?
218. Should the store upgrade or modernise the lighting?

219. What sort of Flooring did the store have?


220. Was the flooring dirty, stained, or ugly?
221. Was the flooring old or worn out?
222. Did the flooring need to be cleaned?
223. Should the store replace the flooring?

224. What did you think about the Store Floor Plan?
225. Could you easily move though the floor pattern?
226. Should the store change the floor plan?

227. What did you think about the Store Floor Colour Scheme?
228. How would you describe the Store Colour Scheme?
229. Should the store change or modernise the colour scheme?

230. What did you think about the Changing Rooms, Rest Rooms and other facilities?
231. Were the store’s facilities clean?
232. Were the store’s facilities decorated appropriately?
233. Should the store change or modernise their facilities?

234. What did you think about the Store Product Pricing system?
235. Are all products priced using a pricing system for a uniform appearance?
236. Are the prices attached in a consistent pricing channel?
237. Should the store change or modernise the Product Pricing system?

238. What did you think about the Store Interior Signing?

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239. Did the Store Interior Signing reinforce the Store Brand?
240. Did the store have old or obsolete signs displayed?
241. Did the store have inconsistent or confusing signs displayed?
242. Should the store change or modernise the Store Interior Signing system?

243. What did you think about the Store Maintenance and General Appearance?
244. Did you notice any badly maintained areas?
245. Was the sales area clear of miscellaneous paraphernalia?
246. Were the staff untidy?
247. Were the product displays badly maintained?

248. What did you think about the store in General?


249. Were you comfortable spending time in the store?
250. Were you comfortable spending your money in the store?
251. Would you be happy taking your family to the store?
252. Would you be happy taking your friends to the store?

Ambience & Layout


Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
253. How would you describe the Store Ambience and Layout
254. What did you think about the store Lighting
255. What did you think about the store Music
256. What did you think about the store Signage
257. What did you think about the Store Front
258. What did you think about the store Display Windows
259. What did you think about the store Scent or Smell
260. What did you think about the store Fixtures
261. What did you think about the store Temperature
262. What did you think about the store Hygiene
263. What did you think about the store Theme Setting
264. What did you think about the store Posters, Signals, cards
265. What did you think about the store Floor Space
266. What did you think about the store Product Grouping
267. What did you think about the store Traffic Flow Pattern
268. What did you think about the store Colours used
269. What did you think about the store Personnel Behaviour
270. What did you think about the store Personnel Product Knowledge
271. What did you think about the store Payment systems
272. What did you think about the store availability of other facilities
273. What did you think about the overall store Style
274. What did you think about the overall store Friendliness

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POS & Displays


Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
275. What did you think of the Store Display Lighting?
276. Did the Store Displays have any Motion or Animation?
277. Were the Store Displays Customised or did they appear to be Standard?
278. Did the Store Displays have any noticeable Features?
279. Could you see into or inspect the product content of Store Displays?
280. Were the contents of the Displays Visible?
281. Did the Store Displays send a Message, E.g. product quality or product value?
282. Were the Store Displays well Designed?
283. Did the Store Displays have a Unity or were they Confused?
284. Were the Store Displays in Proportion to the Store and to the other Store Fittings?
285. Were the Store Displays a Focal point of the store?
286. Did the Store Displays encourage you to spend more or less than you had intended?

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_F


Audit of Retail POS & Displays by Expert Observation Surveys:
287. Degree to which Displays make it into shoppers’ line of sight.
288. Identification of the Display types and locations that generate the most impressions and
greatest consumer activation.
289. Amount/percentage of time spent engaging with the Displays (by audit variables such as
display type, location, and placement).
290. Degrees to which the Displays are noticed, stopped at, interacted with, and drive
purchases.
291. What is the emotional response (valence) to the Displays?
292. What is the shopper’s track or path throughout the store?
293. What are the search patterns and navigational strategies shoppers use to find and select
products? How much time is spent considering the product categories?

Display Type:
294. Floorstands
295. Endcaps
296. Powerwings / sidekicks
297. In-line / gondola / full-line merchandisers (specialty)
298. In-store media
299. Digital signage
Location of each display:
300. End of aisle (front or back)
301. Perimeter / racetrack
302. In-aisle
303. Front end
Placement of display:
304. Primary
305. Secondary
Variables:
306. Category and brand the display is advertising
307. Static vs. Motion

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308. How was the Product positioned


309. Whether it is interactive
310. Whether it has video or audio

Lighting
Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
311. What did you think about the Store Lighting?
312. Was the Store Lighting too little?
313. Was the Store Lighting too much?
314. Was the Store Lighting too intrusive?
315. Was the Store Lighting too hot?
316. Was the Store Lighting warm?
317. Was the Store Lighting cold?
318. Was the Store Lighting too coloured?
319. Did the Store Lighting display the products well?
320. Was the Store Lighting designed to hide the products?
321. Did the Store Lighting allow you to see the product colours or textures or details well
enough?
322. Could the Store Lighting be improved?
323. How could the Store Lighting be improved?

Store Facilities
Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
324. Did the store have any additional Facilities?

325. Which additional Facilities did you use in the store:-


a. After-sales services
b. Arranged appointments
c. Baby strollers or Baby Changing facility
d. Baby-sitting or Children’s Area
e. Beauty salon
f. Bridal registry
g. Credit or store card facilities
h. Delivery service
i. Fitting rooms
j. Free (or low-cost) parking
k. Gift vouchers
l. Gift wrapping
m. Information counters
n. In-house designers
o. Loyalty cards or schemes
p. Personal shoppers
q. Refreshments
r. Repair services

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s. Rest rooms
t. Restaurant or cafeteria
u. Samples
v. Shopping bags
w. Specialist advisers
x. Storage
y. Telephones
z. Ticket outlets
aa. Valuation services
bb. Water fountains

326. Were you happy with the additional Facilities provided?


327. Was there excessive Self-Service?
328. How could the Facilities be improved?

Store Image
Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
329. Do you think that the store has a particular Image?
330. How would you characterise the Image?

331. Did the store Image meet your expectation of the Store Brand?
332. Were you happy with the store Image?
333. Did the store Image confirm the Retailer’s Product Quality?
334. Did the store Image confirm the Retailer’s Product Value?
335. Did the store Image confirm the Retailer’s Product Brand/s?

336. What is your mind is the personality of the store?


337. What is the Image of the types of merchandise or services sold?
338. What is the Image of the Quality of the store?
339. What is the Image of the Sales Associates?
340. What is the Image of the Product Packaging?
341. What is the Image of the Colours of the décor?
342. What is the Image of the Fixtures and Equipment?
343. What is the Image of the Music, Lighting, Scent?

344. What is the Image of the Store Name?


345. What is the Image of the Visual Trademark?
346. What is the Image of the Store Front?
347. What is the Image of the Store Look?

Conversion Rates
Customer Surveys of Agrana Fruit: as an Excel file: Part_F
Derived from the Customer Surveys:
348. Did the Exterior of the store influence your decision to enter the store?
349. Did the Interior of the store influence your decision to look at the products?
350. Did your experience of the store influence your decision to purchase?

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Overall Store Evaluation


Customer Surveys of Agrana Fruit: as an Excel file: Part_F
First impressions are derived from the Customer Surveys:
351. What ranking do you give to your First Impression of the Store (1 to 10)?
352. What ranking do you give to the Store after your first impression (1 to 10)?
353. What ranking do you give to the Store in comparison to the competitors (1 to 10)?

Derived from the Customer Surveys. Customer Ranking of the Retail Site (1 to 10):
354. The store's location in your community
355. The store's physical location in the neighbourhood and street
356. The location and amount of parking available to customers
357. The physical appearance of the store's parking lot
358. The store's architectural design
359. The exterior colour of the store
360. The location and size of store windows
361. The location and size of store doors
362. The accessibility of the store for the physically handicapped
363. The size and location of the outside store identification signs
364. The graphic design of the outside store identification signs
365. Lighting of the outside store identification signs
366. Outside lighting around the store and parking areas
367. Outside store security
368. Landscaping around store and parking areas
369. Overall outside appearance
370. Window treatments
371. Types of window displays
372. The overall store layout
373. Aisle spacing for handicap access
374. The interior design of the building
375. The interior wall, floor and ceiling colours
376. The floor covering
377. The interior fixtures and display areas
378. The interior lighting
379. Adequate heating and air conditioning
380. Rest room facilities
381. Location of a customer service area
382. Availability of a customer courtesy telephone
383. Availability of water, coffee, beverages and snacks for customers
384. Play area, toys and activities for children
385. The organisation of the product displays
386. Demonstration area for products
387. Product information displays and counters
388. Display of specific products
389. Service department layout and access
390. Integration of technology with product displays
391. Use of product packaging in display areas
392. Storage of inventory
393. Overall housekeeping and visual appeal

Customer suggestions revealed during Customer Surveys:


394. Changes to the look of the store
395. Changes to the feel of the store
396. Changes to the layout of the store
397. Changes to the physical entry and access points
398. Changes to the store displays

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399. Changes to the product offerings


400. Changes to the product quality
401. Changes to the product values

Store Personality Survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_F

402. Retail store personality variables.

403. Select the scale that best indicates the way you would describe the store.
a. Good selection
b. High prices
c. High quality
d. High fashion
e. Good service
f. Easy to shop in
g. Friendly
h. Good sales and promotions
i. Sophisticated
j. Traditional
k. Different
l. Take chances
m. Confident
n. Creative
o. Sociable
p. Stands out in the crowd
q. Simplified lifestyle

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Part G : In-store Customer Purchasing Behaviours

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

In-store and Impulse-buying Decisions


Understanding the needs, purchasing behaviour, and changing lifestyles of consumers is critical in
being able to deliver on their immediate and future needs. Whereas consumer decisions are no longer
limited to in-store product exposure, shoppers are making an overwhelming number of their
purchasing decisions in-store. In developed countries the in-store decision and impulse-buying rates
are over 40% of purchases. Notwithstanding consumers being increasingly mobile, social and in
control of their information sources, in-store decisions and impulse-buying seems to be here to stay.
The consumer’s route to a purchase has changed, with online information, smartphones, shopping
apps, mobile coupons, and many other innovations; however in-store marketing at many different
types of stores categories and brands has maintained the connection with consumers whom continue
to be influences at the point-of-sale.
The effectiveness of the In-Store Experience, the in-store environment, merchandising and displays,
will indicate tangible improvements to in-store purchasing decision rates.
Three key components affect the in-store decision rate factors:
 Generally planned purchases
 Brand or Product substitution
 Unplanned purchases
Research shows that an important part of the marketing mix is the use of materials and devices that
stimulate sales where the action is – the point of purchase.
The decision-making process of shoppers frequently does not occur until they actually see a product
in the store. Therefore, the way a product is displayed in a store and is supported by in-store
marketing materials can often be instrumental in leveraging sales.

Purchasing Behaviours
Customer Surveys of Agrana Fruit: as an Excel file: Part_G
1. Goal orientated behaviours
a. Like to get exactly what they set out for
b. Aim is to complete shopping trip as rapidly as possible

2. Research & Planning behaviours


a. 40% of shoppers use pre-store media to plan their trip.
b. 55% of shoppers make a shopping list whether mental, handwritten, or digital.

3. Hunter Gatherer behaviours


a. Enjoys seeing what new products are available while shopping the store.
b. Enjoys getting ideas while shopping.

4. Product Offering and Selection behaviours


a. Overall product quality, good service, quick checkout and value are the most
important considerations for shoppers when choosing a retailer.

5. Value seeking behaviours


a. Willing to wait for sales
b. Will shop multiple retailers for best prices

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Consumer Store Behaviours


When consumers enter a store they are not so much revealing where they like to shop, but a complex
matrix of their own lifestyle, values, interests, social orientation, work and spare time activities, income
levels, and so forth.
This matrix which defines the consumer is very variable and it is increasingly difficult for retailers and
brand manufacturers to pigeon-hole their customers into stereotypical groups.
Predictive shopper profiles are based on the consumers’ stated preferences, their browsing habits,
and the products that they actually purchase or abandon in their shopping trips.
Consumers are clustered into segments to understand the attributes and characteristics that are most
important to individuals as they decide where and when to shop. Consumer surveys investigate a
broad set of lifestyle and shopping characteristics on graded scales and these are correlated and
analysed to create consumer groups based on their demographic, lifestyle and shopping parameters.
These factor groupings form the basis of the creation of consumer segments, which can be analysed
for shopping behaviour patterns, price sensitivity, retailer preferences, retailer loyalty, demographic
differences, and opportunities for conversion.
These consumer segments have unique attributes and patterns of behaviour as they relate to their
shopping patterns and retailer selection. Data seems to suggest that there are four basic profiles
which should be of concern to retailers:

Customer Surveys of Agrana Fruit: as an Excel file: Part_G


6. Time conscious consumer
a. Lifestyle time stressed
b. Get in and get out of the store quickly.
c. Pressure from not having enough time in store
d. Always in a hurry
e. Not in a low income group
f. Perceived budgetary constraint
g. 18-44 demographic group
h. Full time employed
i. No time for circulars or coupons
j. Tends to use a limited number of retailers
k. Random navigation of store
l. Describes self as easily tempted
m. Shops with children
n. Does not often use a written list.
o. Second highest purchases on impulse
p. Highest total basket average

7. Time available consumer


a. Shopping is a hobby or social event
b. Very suggestible and influenced by retailers’ promotional activities
c. Enjoys shopping
d. Likes to look at new products
e. Likes browsing in the store
f. 55+ demographic group
g. Lower disposable income
h. Heavy use of circulars which drives retailer choice
i. Knows many retailers and is not very retailer local
j. Random navigation of store
k. High receptivity to stores with quality private label products
l. Receptive to retailers with a variety of product types and package sizes
m. Most satisfied shopper on for overall satisfaction
n. Describes self as impulsive and easily tempted

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o. Highest purchases on impulse


p. Makes most weekly trips
q. Spend longest time in store

8. Necessity consumer
a. Shopping trip is always organised
b. Purchasing goals
c. Time goals
d. Shopping trips executed according to plan
e. Male 55+ demographic group
f. Low circular use
g. Tends to use few retailers
h. Seeks familiarity with store layout
i. Planned navigation of store
j. Most retailer loyal
k. Most consistent use of written list
l. Not interested in bargain hunting
m. Describes self as controlled and restrained
n. Most accurate in predicting total spend
o. Lowest purchases on impulse
p. Least number of trips per week
q. Shortest time in store

9. Cost conscious consumer


a. Seeks best buys and lowest prices
b. Willingness to shop around for the lowest price
c. 14-24 demographic group
d. Least retailer loyal
e. Highest circular use
f. Highest coupon use
g. Most likely to use pre-store media to plan trip
h. Least satisfied on overall satisfaction score
i. Homemaker, Housewife, House husband, Single parent family, One person
household, demographic
j. Most likely to Not purchase an item which was Not budgeted for pre-store
k. Lowest total basket average

In-store Consumer Decision Making


Locations of consumer Purchasing Decision Making.
Retailers should be aware of how and where their customers are making a majority of their purchase
decisions.
Purchases should be segmented into categories and then analysed for in-store purchase decision
rates. This provides an indication of what purchases shoppers’ anticipate as opposed to what they
actually purchase.
The four categories that purchases are classified into are:

Customer Surveys of Agrana Fruit: as an Excel file: Part_G


10. Specifically planned: Purchases the shopper specifically identified by name or brand, before
entering the store, and which they then actually purchased in-store.

11. Generally planned: Purchases that were referred to generically, before entering the store, but
not bought by particular brand.

12. Unplanned: Purchases that were not mentioned, before entering the store, and were bought
on impulse.

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13. Substitutes: Purchases that were specifically identified by name or brand, before entering the
store, but the actual purchase reflected a substitute of brand or product.

The in-store decision rate is calculated by taking the sum of the purchases that fall under Generally
Planned, Unplanned, and Substitutes categories. The average in-store decision rate, across all retail
sectors, in developed countries, is about 40%.
The suggestion that shoppers are planning their purchases less, and deciding more at the shelf, is not
strictly accurate as more shoppers are stating that they did not find what they were looking for when
they entered the store. This means that the product, brand or size of the article they were seeking
was not available and thus they had to purchase something else, or go to another store.
When shoppers do make an impulse purchase this is usually not because of ‘impulsiveness’ but
because it was a purchase of something that they had forgotten and they remembering that they
needed or wanted an item once in the store. The second reason for impulse buys was because
shoppers say that the item was on sale or at a lower price than at a competitive store.

Consumer Surveys

In-Store Purchase Process and Evaluation Survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_G
14. In general, do you feel that prices are:
a. Much too high
b. Somewhat high
c. About right
d. Do you believe prices are particularly high in your area
e. Do you think high prices are due to greedy companies
f. Do you think high prices are due to taxes
g. Do you think high prices are due to supply companies setting high prices
h. Do you think high prices are due to the laws of supply and demand
i. Do you think high prices are due to prices which always go up seasonally
j. Do you think high prices are due to other factors

15. Thinking about the last several years, how often do you buy premium products?
a. Always
b. Frequently
c. Sometimes
d. Seldom
e. Never

16. Think about the stores you go to most often. Is they closer to:
a. Your home
b. Your place of work
c. Your favourite shopping area

17. About how many minutes does it take to get to the store you go to most often?
d. Under 5 minutes
e. 5-10 minutes
f. 10-15 minutes
g. 15-20 minutes
h. More than 20 minutes

18. Think about the store you go to most often. What are some reasons this store is your
favourite?
a. Convenient location
b. Convenient hours of operation
c. Close to work

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d. Close to home
e. Close to favourite shopping area
f. Lowest prices
g. Fast payment
h. Fast in and out
i. Happy with brands
j. Never had trouble with their products
k. Have a credit card for that brand of store
l. Like the products
m. Friendly service
n. Force of habit
o. Other

19. In an average month, about how much does your total household spend on the product?

20. Do you have a Store or a Store-linked card?

21. What are the three best features you would expect to get with a store card?
a. Generous grace period
b. Bonus rewards for frequent purchases
c. Low interest rate
d. Use for several different companies
e. Easy to get one
f. End of year rebate
g. Free gifts
h. Promotions

Shopper Involvement Study


Customer Surveys of Agrana Fruit: as an Excel file: Part_G
Indicate your agreement with each of the following statements:
i. Very Strongly Agree
ii. Strongly Agree
iii. Agree
iv. Disagree
v. Strongly Disagree
vi. Very Strongly Disagree

22. At the time of the purchase decision, I had little time to search for information.
23. There was a wide difference in performance between the available choices.
24. Because the product was being offered on sale for a limited time period, I felt I needed to
purchase the item quickly.
25. If this product broke down I would feel that replacement or repair was a high priority.
26. My (our) budget was very tight at the time of the purchase.
27. I felt obligated to make a careful analysis of the alternatives before making a selection.
28. I have one or two favourite stores I shop in for this type of purchase.
29. I felt it was necessary to talk to a number of friends or family because of my lack of
knowledge and expertise about this product category.
30. I felt I would obtain a better deal on this item by shopping around and comparing prices.
31. I like to devote considerable time and energy when making a product choice such as this one.
32. Selecting an appropriately styled product was very important to me.

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33. I can make many connections or associations between the use of this product and
experiences in my life.
34. I was very concerned about possible product problems when searching for the item I
purchased.
35. Using the product I purchased is one of the most enjoyable things I do.
36. I did not have any favourite brands in this search category before beginning my search.
37. I felt quite knowledgeable about this product category before I began shopping for it.

Indicate your agreement with each of the following statements.


i. Very Strongly Agree
ii. Strongly Agree
iii. Agree
iv. Disagree
v. Strongly Disagree
vi. Very Strongly Disagree
38. There were wide price differences between available choices.
39. I received considerable pressure from other family members to purchase this item quickly.
40. This purchase was difficult because the items in this product category are so technologically
complex.
41. This purchase was not planned, but the item caught my eye in the store and I decided to
purchase it.
42. It was my task to make the product choice the right one.
43. The amount of money I could or would spend on this item was very limited.
44. I felt comfortable judging the differences between alternatives relatively well.
45. I generally make purchases of this kind at one particular store because I believe they offer the
best values around.
46. I enjoyed shopping for this product.
47. I was very concerned about the economic consequences of making a poor or incorrect
choice.
48. Generally I like to make purchases quickly without shopping around at different stores,
because it just is not worth my effort.
49. I am concerned about my friends' approval of my choice.
50. Because of my lifestyle, I feel this is a product that ought to be important to me.
51. I was very concerned about my product choice because of the consequences of selecting an
item that did not perform as I anticipated.
52. I believe I could be quite helpful to friends who are having difficulty making a selection in this
product category.
53. I had a strong brand preference in this category because of my previous experience with
some of these brands.

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Store Entry Surveys


Shoppers are randomly interviewed at the entrance of the store locations. Interviews are conducted
during all day parts and all days of the week with a nominal duration of 10 minutes per interview.

Customer Surveys of Agrana Fruit: as an Excel file: Part_G


54. Planned purchases (unaided category and brand planning)
55. Any pre-store path-to-purchase activities shopper engaged in for planned purchases and in
general
56. Amount budgeted/expect to spend for planned items and total basket
57. General shopping behaviours in channel
58. Demographics and profiling information
Upon completion of the pre-entry interview, shoppers were asked to return to the researchers after
completing their shopping trip for a post-shopping interview. Information products purchased was
recorded and the purchase record for each shopper was obtained through electronic capture of till
receipts. The exit interview recorded products and brands purchased from shopper’s entire basket.

Customer Surveys of Agrana Fruit: as an Excel file: Part_G


59. Products purchased (category and brand level information)
60. Coupon, circular, mobile phone use, etc. used in purchase decisions
61. Recall/awareness of displays for product purchases
62. Attitudes and perceptions towards retail environment and specific categories.
63. Total amount spent and by category.
64. Method of payment

Survey research methods measure contemplative opinions of the respondents and rely on techniques
such as surveys or facilitated focus groups. For accuracy one need a valid sample size which is
usually in the range 500-1500 valid responses.

Store Audit
In preparation for the customer surveys the store layout was surveyed and each day an audit of
specific display types throughout the store was conducted prior to the start of interviewing. The
purpose of the store audit is to record and identify the display materials which produce a measureable
impact on customer decision-making and emotional response.
The store audit includes, a traffic flow pattern, an aisle schematic, photographs and spatial position of
each display present as well as coding of the following information:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_G


65. Display Type:
a. Floorstands
b. Endcaps
c. Powerwings/sidekicks
d. In-line/gondola/full-line merchandisers (specialty)
e. In-store media
f. Digital signage
66. Location of each display:
a. End of aisle (front or back)
b. Perimeter/racetrack
c. In-aisle
d. Front end

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67. Placement of display:


a. Primary
b. Secondary
68. Other variables:
a. Category and brand the display is advertising
b. Static vs. motion
c. Product on it vs. no product
d. Whether it is interactive
e. Whether it has video or audio

Supplementary research
Researchers and mystery shoppers equipped with smartphone and mobile applications which could
register reactions are able to analyse the impact of displays:-

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_G


69. Degree to which displays (as defined earlier) make it into shoppers’ line of sight.
70. Identify the display types and locations that generate the most impressions and greatest
activation.
71. Amount/percentage of time spent engaging with these displays (by audit variables such as
display type, location, and placement).
72. Degrees to which these displays are noticed, stopped at, interacted with and drive purchases.
73. What is the emotional response (valence) to these displays?
74. What is the shopper’s track or path throughout the store?
75. What are the search patterns and navigational strategies shoppers use to find and select
products?
76. How much time is spent considering these categories?

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Part H : Customer Handling

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

First Impressions Customer Survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
First impressions are derived from the Customer Surveys:
1. What did you think of the store opening hours?
2. What did you think of parking availability?
3. What did you think of the shopper-friendliness of the store layout?
4. What did you think of the salespeople?
5. What did you think of the politeness of the store staff?
6. Did you have to wait too long before being served?
7. What did you think of the checkout lines and queues?
8. Did you have to wait too long before being able to finalise your purchases and leave the
store?
9. What did you think of the payment & credit acceptance?
10. What did you think of the delivery policies?
11. What did you think of the amenities?
12. What did you think of the customer follow-up?
13. What did you think about complaints handling?

Queue & Waiting handling

Queue performance is a very important issue for retailers and those who get sales desk staffing
wrong, or have lengthy queues risk creating a poor store image which can harm sales. Customers
hate and avoid queuing and will typically avoid retailers where queues are common.

If shoppers are in a store where they see long queues at the checkout they can be deter from making
full use of their shopping time or budget; indeed they may abandon their planned purchases
altogether and go to another store. Retailer should have empirical evidence of average wait times and
overall transaction times at each location.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_H


Audit of Retail Sites by Expert Observation Surveys:
14. Observations reveal staff schedules are determined by changing customer demand and
trading patterns.
15. Observations reveal that the retailer predicts the optimum number of tills needed to open in
15 to 30 minute time slices to maintain a desired service level.
16. Observations reveal a correlation between wait times and conversion rates to help capitalise
on every opportunity.

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17. Observations reveal that the retailer is probably aware of the optimum ratio of till staff to
customers at which marginal sales exceed the incremental staffing costs.
18. Observations reveal that the retailer is using traffic detectors at store entrances and till points
to monitor shopper numbers and queuing behaviour.
19. Observations reveal that the retailer is able to calculate average queue lengths, wait times
and transaction times.

Interface & Dialogue


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
77. Did the salesperson smile when greeting you?
78. Did the salesperson use age-appropriate and gender-appropriate greetings?
79. Did the salesperson avoid using negative stereotypical phraseology when referring to
customers or fellow employees?
80. Was the salesperson proactive and ask how he/she may be of service?
81. Was the salesperson immediately visible and available?
82. Did the salesperson hover or make you feel uneasy?
83. Did the salesperson turn away, walk away, or become occupied when you approached?
84. Did the salesperson give precedence over you when someone else approached or to take a
phone call?
85. Did the salesperson seem to take regard of your age, gender or appearance?
86. Did you see evidence of food and beverages left by employees?
87. Did the salesperson mention an upcoming break or other call on his/her time?
88. Were any salespersons making personal calls within the earshot of customers?

Staff Response & Attitude to Customers


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
89. Do you think that the salesperson was able to read the body language of customers?
90. Did the salesperson let chatty customers monopolise their time while leaving other customers
waiting?
91. Did the salesperson call for backup support when lines were forming?
92. Was the salesperson discrete in relation to credit and payment arrangements?
93. Did the salesperson discuss your personal details in front of other customers?
94. Did the salesperson inspect merchandise before bagging it to make sure it was not defective
or the wrong size?
95. Did the salesperson make sure that you received everything you paid for before leave the
store?
96. Did the salesperson smile at you and say goodbye and encourage you to come again?

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Information Provided to Customers


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
97. Did the salesperson seem to lack knowledge about some aspect of the product or
business?
98. Did the salesperson offer to find out about anything which he/she was uncertain about?
99. Did the salesperson offer to go to the stock room and try to find it an item which was not on
display?
100. Did the salesperson offer to call another store or order an item not in stock?

Proficiency
Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
101. Credibility: Store/Outlet Level
102. Credibility: Branded Specialities
103. Credibility: Company Advertising
104. Credibility: Company Level
105. Credibility: Company Offers & Promotions
106. Credibility: Counter Staff
107. Credibility: Dedicated Specialities Staff
108. Branded Product Information: Store/Outlet Level
109. Branded Product Information: Company Level
110. Branded Product Information: Counter Staff
111. Branded Product Information: Dedicated Specialities Staff
112. Staff Awareness of Product: Branded Specialities
113. Staff Awareness of Product: Counter Staff
114. Staff Awareness of Product: Dedicated Specialities Staff
115. Staff Comprehension of Product: Branded Specialities
116. Staff Comprehension of Product: Counter Staff
117. Staff Comprehension of Product: Dedicated Specialities Staff
118. Staff Confidence in Product: Branded Specialities
119. Staff Confidence in Product: Counter Staff
120. Staff Confidence in Product: Dedicated Specialities Staff
121. Staff Efficiency: Store/Outlet Level
122. Staff Efficiency: Branded Specialities
123. Staff Efficiency: Company Level
124. Staff Efficiency: Counter Staff
125. Staff Efficiency: Dedicated Specialities Staff
126. Staff Efficiency: Offers & Promotions
127. Staff Efficiency: Problem Solving
128. Staff Integrity: Advertising & Promotions
129. Staff Integrity: Store/Outlet Level
130. Staff Integrity: Branded Specialities
131. Staff Integrity: Company Level
132. Staff Integrity: Counter Staff
133. Staff Integrity: Dedicated Specialities Staff
134. Staff Integrity: Offers & Promotions
135. Staff Performance: Store/Outlet Level
136. Staff Performance: Branded Specialities
137. Staff Performance: Company Level
138. Staff Performance: Counter Staff
139. Staff Performance: Dedicated Specialities Staff
140. Staff Performance: Offers & Promotions

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141. Staff Performance: Overall Customer Handling


142. Truth & Honesty: Advertising & Promotions
143. Truth & Honesty: Store/Outlet Level
144. Truth & Honesty: Branded Specialities
145. Truth & Honesty: Company Level
146. Truth & Honesty: Counter Staff
147. Truth & Honesty: Dedicated Specialities Staff
148. Truth & Honesty: Offers
149. Reputation at Store/Outlet Level
150. Reputation at Company Level
151. Reputation of Branded Specialities
152. Reputation of Counter Staff
153. Reputation of Dedicated Specialities Staff

Staff Interaction with Customers


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
154. Verbal Contact: Store/Outlet Level
155. Verbal Contact: Branded Specialities
156. Verbal Contact: Company Level
157. Verbal Contact: Counter Staff
158. Verbal Contact: Dedicated Specialities Staff
159. Written / Internet / Telephone Communications: Store/Outlet Level
160. Written / Internet / Telephone Communications: Branded Fashion
161. Written / Internet / Telephone Communications: Company Level
162. Written / Internet / Telephone Communications: Counter Staff
163. Written / Internet / Telephone Communications: Dedicated Fashion Staff
164. Written / Internet / Telephone Communications: Promotions & Offers
165. Contract Documentation: Store/Outlet Level
166. Contract Documentation: Company Level
167. Counter Staff Customer Handling: Store/Outlet Level
168. Counter Staff Customer Handling: Branded Specialities
169. Counter Staff Customer Handling: Company Level
170. Counter Staff Customer Handling: Counter Staff
171. Counter Staff Customer Handling: Dedicated Specialities Staff
172. Customer Awareness of Product: Store/Outlet Level
173. Customer Awareness of Product: Company Level
174. Customer Comprehension of Product: Store/Outlet Level
175. Customer Comprehension of Product: Company Level
176. Customer Confidence at Store/Outlet Level
177. Customer Confidence at Company Level
178. Customer Confidence in Branded Specialities
179. Customer Confidence in Company Advertising
180. Customer Confidence in Company Offers & Promotions
181. Customer Confidence in Counter Staff
182. Customer Confidence in Dedicated Specialities Staff
183. Customer Confidence in Product: Store/Outlet Level
184. Customer Confidence in Product: Company Level
185. Customer Handling: Store/Outlet Level
186. Customer Handling: Branded Specialities
187. Customer Handling: Company Level
188. Customer Handling: Counter Staff
189. Customer Handling: Dedicated Specialities Staff
190. Customer Problem Solving: Store/Outlet Level
191. Customer Problem Solving: Branded Specialities
192. Customer Problem Solving: Company Level

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193. Customer Problem Solving: Counter Staff


194. Customer Problem Solving: Dedicated Specialities Staff
195. Customer Service: Store/Outlet Level
196. Customer Service: Branded Specialities
197. Customer Service: Company Level
198. Customer Service: Counter Staff
199. Customer Service: Dedicated Specialities Staff
200. Customer Service: Offers & Promotions

Customer Complaint Handling


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
201. Customer Complaint Handling: Store/Outlet Level
202. Customer Complaint Handling: Branded Specialities
203. Customer Complaint Handling: Company Level
204. Customer Complaint Handling: Counter Staff
205. Customer Complaint Handling: Dedicated Specialities Staff

Product Returns & Refund Policy


Customer Surveys of Agrana Fruit: as an Excel file: Part_H
Derived from the Customer Surveys:
206. Satisfaction with Existing Retailer’s Returns Policy
207. Satisfaction with Existing Retailer’s Refund Policy

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Part I : Selling Strategies

This data is available on a Corporate basis for Agrana Fruit

Stores
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_I
The following parameters are examined by Expert Appraisal:
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Retail Developments
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT

Online Selling
Globalisation and technology is at the heart of future growth. Retail is increasingly a global business,
bringing about changes in consumer wealth distribution and the manner in which their demands are
met. A middle class with disposable incomes is now to be found in many developing countries and
this has altered the landscape of retail distribution, with the need to service both domestic as well as
overseas consumers.
As input materials prices, wages and transportation costs fluctuate, and as currency rates shift around
the world, there is a dynamic within the retail supply chain in relation to where goods are
manufactured, how they are distributed, and how they are shipped to their final consumers. Retailers
increasingly have to turn their focus away from domestic consumption, and to the complexity of cross-
border sales, made even more complex due to different platforms of selling internationally to more
sophisticated global consumers.
Over 25% of online shoppers around the world (mainly the younger demographics in the developing
countries) made their first online purchase within the two years. Furthermore consumers in the rapidly
developing economies are shopping online nearly four times as often as those in the post-industrial
developed countries. Social media also allows people to research or follow specific retailers or brands
without limits on borders. Each of these trends, as they continue to evolve globally, creates both direct
and indirect impacts on how bricks-and-mortar stores are perceived in different countries.
Each year some 50 million consumers in the Asia-Pacific region will join the ranks of online
consumers. By 2020 these new consumers will be spending an amount equivalent to that spent by
consumers in developed countries now. E-commerce sales growth in the Asia-Pacific countries is
increasing at greater annual rates than those in developed countries. The reason for this is not only
the nature of the consumer demographics in these countries, but also the deficiencies in the nature
and distribution of traditional retailers.
As e-commerce and mobile commerce and supporting infrastructure accelerates around the world, it
is encouraging new distribution channels in developing markets. Multinational retailers can test the

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water by opening an online store in untested overseas markets before committing to a physical
presence which involves considerably greater capital investment.
Multi-channel access to existing and potential customers (from bricks-and-mortar to catalogues to
online and mobile) is an important consideration when making a market entry, and establishing a
presence separate from physical outlets is a useful and relatively risk-free strategy given that local
companies are already likely to control the prime retail sites.
The consumer’s retail store expectations and perception in new markets must be well deliberated and
planned, however new stores in new markets can operate as flagship locations, primarily in high
traffic and high impact destinations, and also take on the role of directly ‘show casing’ the retailer's
product offerings. Such flagship locations can then act as a template for future expansion and
examples to franchisees and joint-ventures.
It is essential for multinational retailers to fully understand consumers in different markets, and their
different expectations, preferences and needs. Then use this knowledge to produce market plans for
multi-channel sales execution. Consumers in all locations want the same thing, a simple, seamless,
trouble-free purchasing experience. This might lead to increasing levels of complexity for retailers;
however such complexities are easily solved by technological solutions.
Whilst technology may expand commerce in developing markets, logistics infrastructure may not
adequately enable retailers to keep the pace with demands and this might result in a reduction in the
consumer purchasing experience. The inability of domestic logistics service providers to fulfil high
volumes of customer parcel shipping at low costs and within a reasonable delivery timeframe
dramatically impacts the direct-to-customer channel in many areas. Therefore, retailers have to
establish their own distribution networks or rely on outsourced express shippers in order to achieve
fulfilment efficiencies.
Various impacting factors in transnational retailing include rising transportation and energy costs,
fluctuations in currency values, the shipment modes, pricing and timing, and so forth. These factors
require retailers to adapt the way their goods are transported from source supplier to final sales
destinations.
Retail trade buyers who are unable to use sea transport due to lengthy shipping times are turning to
supply sources geographically closer. In addition as transport costs rise in addition to labour rates in
Asia there is ever more need to find alternatives to supply sources. Reasonable priced and more
quickly delivered domestic supply sources are increasingly more important for many retailers. Indeed,
with production closer to demand, retailers can more easily interact with product designers and
suppliers and thereby respond immediately to trends and changes in buying patterns.
As consumers around the world increase their reach and capacity to spend, fulfilling their demand for
retail products and brands is becoming very complex. As information technology and communications
becomes widespread around the world, from developed economies to emerging and developing
markets, retailers encounter new challenges as well as the ability to profit from new opportunities.
Finding and using the right channels, methodologies and business models will be essential in tapping
this potential.
Multi-channel retailing has opened up new markets; both in developed and developing countries, and
online sales are growing strong both in developed and developing countries. However, supply chain
disruptions will undoubtedly occur and therefore retailers must pre-plan and add diversification to their
business model to mitigate these risks as much as possible.

Online Selling Performance:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_I


The following parameters are examined by Expert Appraisal:
16. Brand Management
17. Product Management
18. Marketing & Selling Activity
19. Product Offering Specifications & Characteristics
20. Product Quality Control
21. Online Developments

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22. Customer Handling


23. Product Sourcing & Control
24. Financial Controls
25. Product Throughput Capacity & Control
26. Supply System Control & Development
27. Distribution Control
28. Product Handling Systems & IT
29. Delivery Promptness
30. Complete Delivery

Web Presence
Retail website, product and satisfaction survey:

Customer Surveys of Agrana Fruit: as an Excel file: Part_I

31. How often do you visit the company’s site?


a. Every day
b. Several times a week
c. Several times a month
d. About once a month
e. Less than once a month
f. Never visited

32. How did you get to the company’s site?


g. I knew the site name
h. Search engine
i. Guessed the address
j. Saw on TV, heard on radio
k. Newspaper or magazine advertisement
l. Friend told me
m. Internet advertisement
n. Link from another page

33. How often do you use the web to find product information?
o. Everyday
p. Several times a week
q. About once a week
r. Several times a month

34. Did you find what you were looking for on the company’s site?
s. Yes, I found exactly what I was looking for
t. Yes, but not the brand/size/colour/ etc.
u. I found a related product but not what I wanted
v. No, I didn't find what I was looking for

35. If you did not find exactly what you wanted, explain where you found it.
36. Do you have one or two specific suggestions about how we should add to or improve the
site?

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Website Design
Customer Surveys of Agrana Fruit: as an Excel file: Part_I
General Website Evaluation of the retailer:
37. Did the menu of items on the home page make sense to you?
38. If no, what would you like to see changed?
39. Did you experience any problems downloading files?
40. Approximately how many pages did you browse during this visit?
41. How satisfied are you with your experience with the web site?

42. If you are not totally satisfied, describe the reasons for your dissatisfaction below?

43. What additional information or features would you like included on the web site?

44. How frequently do you visit the company’s website?


a. Once only
b. Daily
c. Weekly
d. Monthly
e. Infrequently (less than once a month)

45. What prompted your visit on the last occasion?


f. Doing research for work
g. Doing research for school
h. Recommendation of friend/associate
i. Just curious
j. Found the site while surfing
k. Wanted to download files
l. Looking for update on earlier information
m. Professional development
n. Linked from other site
o. Other

46. How would you rate yourself as an Internet user?


p. Expert
q. Good
r. Beginner

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Website Information Quality


Quality and completeness of web site documentation and information:

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


47. Were you able to find suitable answers to your questions while browsing the website?

48. How much time did it take to find your answer?


a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected
e. A lot more than I expected

49. Based on your experience, how would you rate the quality of the company’s website?
f. Very high quality
g. High quality
h. Average
i. Below average
j. Unacceptable

50. Tell us what can be done to improve the quality of the information on the company’s website?

Website Customer Evaluation

Company Website visit history, success in finding products searching for, and satisfaction.

Customer Surveys of Agrana Fruit: as an Excel file: Part_I

51. How often do you visit the company’s site?


a. Every Day
b. Several Times a Week
c. Several Times a Month
d. About Once a Month
e. Less than Once a Month
f. I have never visited the site

52. How did you get to the company’s site?


a. I knew the site Name
b. Search Engine
c. Guessed the Address
d. Saw on TV, Heard on Radio
e. Newspaper or Magazine advertisement
f. Friend Told Me
g. Internet advertisement
h. Link from another Page

53. How often do you use the web to find product information?
a. Everyday
b. Several Times a Week
c. About Once a Week
d. Several Times a Month

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54. Did you find what you were looking for on the company’s site?
a. Yes, I found exactly what I was looking for
b. Yes, but not the Brand / Size / Colour / Etc.
c. I found a related product, but not what I wanted
d. No, I didn't find what I was looking for
e. Other

55. If you did not find exactly what you wanted, explain what you were looking for.

56. How likely are you to recommend and revisit the company’s site?
a. Very Likely
b. Likely
c. Unsure
d. Unlikely
e. Extremely Unlikely
f. Other

57. Do you have a suggestion or recommendation to improve the company’s site?

58. How likely are you to return to the company’s Web site?
59. How likely are you to recommend the company’s Web site?

60. What features had influenced your decision to continue using the website?
61. What is it about the site that you would most like to see improved?
62. What changes or additional features would you suggest for the website?

63. In a typical week, how many hours do you spend visiting this website?
a. 0 to 1
b. 1 to 2
c. 2 to 4
d. 4 to 10
e. More than 10

64. How did you first hear about this site?


a. Search engine
b. Another web site
c. Newspaper/magazine article
d. Friend or business associate
e. Advertisement
f. Don't know/don't remember
g. Other

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Website Visitor Follow-up


Demographics, how did the visitor find the site, what are they look for, hobbies, access, suggestions.

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


65. How did you find out about the company’s site?
a. Followed link from another web page
b. Followed a graphical banner/icon from another web page
c. Found by using a search engine
d. Saw postings to www-related news groups
e. Received e-mail from mailing list
f. Was told URL by friend
g. Read about it in newspaper/magazine
h. Don't remember or Other

66. What is your age?


a. under 13
b. 13-17
c. 18-34
d. 35-49
e. 50-64
f. 65 or older

67. How many hours per day are you on-line?


a. 0-1
b. 1-2
c. 2-3
d. 3-4
e. 4-5
f. More than 5

68. What do you enjoy doing in your spare time?


a. Theatre or cinema
b. Hunting
c. Sports
d. Reading
e. Video / Computer Games
f. Movies
g. Fishing
h. Arts and Crafts
i. Automobiles
j. Trivia
k. Restaurants
l. Gardening
m. Cooking
n. Computers
o. Other

69. What do you use the internet for?


a. Information Gathering
b. Academic Research
c. Shopping
d. Games
e. News
f. Sports News
g. Real Estate
h. E-mail
i. Job Hunting
j. Classifieds
k. Stock Market

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l. Other

70. From where do you most often access the Internet?


a. Home
b. School
c. Office
d. Leisure site or Other

71. If you have, or plan to purchase goods on the Internet, what kinds of goods would you be
most interested in?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food
l. Books or magazines
m. Services
n. Financial & Insurance product

Website Feedback
Website feedback and respondent Internet usage:

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


72. Rate the company’s web pages for the following aspects:
a. Homepage
b. Customer Support information
c. Product information
d. Contact information
e. Downloads

73. What were your reasons for your last visit to the company’s site?
a. Product information
b. Customer Support information
c. Competitive information

How likely are you to?


74. Revisit this site on a regular basis
75. Recommend the company’s site

76. Where did you hear about the company’s website?


a. Online or link from another web site
b. Online news service
c. Newspaper or magazine
d. Friend
e. Search engine
f. E-mail advertisement

77. How often do you visit the company’s site?


a. Every day
b. Several times a week

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c. About once a week


d. Several times a month
e. About once a month
f. Less than once a month
g. Never visited

78. When browsing the company’s site, how long do you typically spend here?

79. How frequently do you surf the web?


a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. Not sure (don't keep track)

80. In a typical week, how many hours do you spend surfing?

81. What do you regularly use the web for?


a. News
b. Work research
c. Personal research
d. Investments
e. Shopping
f. Auctions
g. E-mail
h. Chat/communities
i. Web-based address book/calendaring
j. Banking

82. How often have you used the web to gather product information?
a. Every day
b. Several times a week
c. About once a week
d. Several times a month
e. About once a month
f. Less than once a month
g. This is my first time

83. When do you plan to purchase a product via the internet?


a. Immediately
b. Within the next week
c. Within about a month
d. Within 3 months
e. Within 6 months
f. Within a year
g. More than a year
h. Not sure

84. What is your primary use of the product(s) / service(s)?


a. For work
b. For home
c. For school

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Web Demographics

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


85. How did you find about the company’s site?
a. Followed a text link from another web page
b. Followed a graphical banner/icon from another web page
c. Found using a search engine
d. Saw posting on a newsgroup
e. Guessed the URL address
f. Was told URL by friend
g. Read about it in a newspaper/magazine
h. Remembered to participate from last survey
i. Don't remember

86. How long have you been using the Internet (including using e-mail, gopher, ftp, etc.)?
a. Less than 6 months
b. 6 to 12 months
c. 1 to 3 years
d. 4 to 6 years
e. 7 years or more

87. What is your primary language (i.e., the one you speak most of the time)?

88. This is a sensitive question that can help Internet developers to understand the needs of
current web users - it is not intended to offend.
a. Are you disabled or impaired?
b. Rather not say
c. Vision impaired
d. Hearing impaired
e. Motor impaired
f. Cognitively impaired
g. Not impaired

89. How frequently do you access the internet from the following places?
a. Home
b. Work
c. School
d. Leisure location
e. Other

90. Who pays for your Internet access?


a. Self/spouse
b. Parents
c. Work
d. School
e. Don't know
f. Other

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Internet Shopper
Study benchmarking internet use and shopper profiles and behaviour:

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


91. Did you personally make, influence, or participate in any purchases on the Internet during the
past 3 months?
92. About how much in total did you spend on those purchases:
93. About how much of this was spent on gifts for others:
94. What types of products did you purchase on the Internet?
a. Groceries
b. Software
c. Books or magazines
d. Computer hardware
e. Music, CDs, recordings
f. DVDs
g. Home Electronics
h. Travel (airlines, car rentals, hotels)
i. Clothing
j. Flowers
k. Tickets (concert, movies, etc.)
l. Services (insurance, legal)
m. Other items
n. Other services

95. About how much did you & all other people in your household spend for gift-giving during this
past 3 months?
96. Overall gift purchases, in total:
97. About how much of that was spent on:
a. Purchases at local retail stores:
b. Purchases through mail-order catalogues:
c. Purchases on the Internet:
98. About how many hours per week is a computer in your home usually used on-line for e-mail
or the Internet?
99. How many hours per week is spent on your home computer:
a. personally on-line for e-mail or Internet access
b. personally for purposes other than on-line access
c. by someone else on-line for e-mail or Internet access
d. by someone else for purposes other than on-line access
100. Think about your own personal use of a computer in your home just during the last 3
months. About how often did you use it for each of the following activities?
i. Daily
ii. 2-3 times a week
iii. Once a week
iv. 2-3 times a month
v. Once a month
vi. Under once a month
vii. Not at all
a. Check or send e-mail messages
b. Look at financial information (stocks, trends)
c. Read on-line news or magazines
d. Conduct business-related work
e. Visit Internet sites related to my hobbies
f. Visit auction sites
g. Visit other retail sites looking for merchandise

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h. Visit sites looking for tickets or reservations


i. Play games
j. Look for job opportunities
k. Find & view photographs, clipart, or images
l. Search for or download software
m. Chat on-line
n. Visit message news-groups

Below are some statements of people’s attitudes toward the Internet.


“Which best indicates how well the statement describes you personally. “
“Even if you don’t use the Internet, from what you may have heard about it, which best
reflects your impressions. “

How well does the statement describe you?


101. I think on-line buying is (or would be) a novel, fun way to shop.
102. I like the help & friendliness I can get at local stores.
103. For me, shopping in stores is a hassle.
104. I think Internet shopping would avoid the hassle of local shopping.
105. Local stores have better prices & promotions than Internet stores.
106. I’d have a hard time searching the Internet to find what I need.
107. I don’t think Internet stores carry things I want.
108. I dislike the delivery problems & backorders of Internet buying.
109. I find the Internet ordering process is hard to understand & use.

How well does the statement describe you?


110. I don't want to give out my credit card number to a computer.
111. I think Internet shopping offers better quality than local stores.
112. I don't know much about using the Internet.
113. I often go to the Internet to preview products.
114. I would like not having to leave home when shopping.
115. I like it that no car is necessary when shopping on the Internet.
116. I often go to the Internet for product reviews or recommendations.
117. I like having products delivered to me at home.
118. I want to see things in person before I buy.

How well does the statement describe you?


119. I think Internet shopping offers better selection than local stores.
120. I don’t like having to wait for products to arrive in the mail.
121. None of my friends shop on the Internet.
122. I would shop on the Internet (more) if the prices were lower.
123. I dislike the idea of shipping charges when buying on the Internet.

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124. I often buy using lay-away or store payment programs.


125. I think local stores have better service policies than Internet stores.
126. I always search for the lowest price in just about everything I buy.
127. I worry about my credit card number being stolen on the Internet.

How well does the statement describe you?


128. I want my purchases to be absolutely private.
129. Buying things on the Internet scares me.
130. I often return items I have purchased.
131. It would be a real hassle to return merchandise bought on-line.
132. I think the Internet offers lower prices than local stores.
133. It’s hard to judge the quality of merchandise on the Internet.
134. I like the ‘energy’ & fun of shopping at local retail stores.
135. I enjoy buying things on the Internet.
136. I like browsing on the Internet.
137. I like to go shopping with my friends.
138. I just don’t trust Internet retailers.

How well does the statement describe you?


139. When it comes to promoting causes, I am a doer & not just a talker. I use the Internet to
actively support causes that make people or communities better.
140. I hate repetition & I don’t want the same old thing. I am excited by a million web pages to
explore.
141. In today’s competitive world, you make dust or eat dust. I use the Internet to make me more
competitive.
142. I want my family to run smoothly & I use the Internet to make me & those I love more
productive & successful.
143. Internet games unlock my imagination & help me to meet interesting people & do neat stuff.
144. Hobbies are a very important part of my life. I use the Internet to expand my world of
fascinating hobbies, interests, & activities.
145. I am fascinated by art, culture, & knowledge from around the world. I use the Internet to
explore art & culture.
146. I consider myself an expert on the computer. When people have questions about the
Internet, I always have the answer.
147. I have lots of friends & stay close to my family. I spend a lot of time on the Internet writing
family & friends with e-mail.
148. On-the-job productivity is the key concern for me. I use the Internet to help me get more
done with the time & energy I have to spend on work-related activities.
149. I use the Internet to meet interesting people. I watch chat rooms & participate with people
on topics I find interesting.
150. I love using the Internet to shop. It’s fun & easy.

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151. For some people the following things are hard; but not for others. Tell us which are hard for
you:
a. Sending or reading email messages
b. Using word-processing programs
c. Installing computer software
d. Configuring computer drivers
e. Fixing a system (e.g., Windows) problem
f. Installing an operating system (e.g., Windows)
g. Browsing the Internet
h. Using an Internet search engine
i. Making a purchase on the Internet
j. Finding the best price on the Internet
k. Using an Internet shopping App
l. Finding Internet-retailer ratings

How well does the statement describe you?


152. It is important to me to be treated well
153. I like the ‘royal treatment’ in stores
154. I have somewhat old-fashioned tastes and habits
155. I like my clothes to look up to date
156. I never have enough time to shop
157. I think I am a little bit wild
158. I think shopping is fun
159. I often buy things on impulse
160. I have lots of leisure time

How well does the statement describe you?


161. I expect to have more money next year
162. My world seems to be coming apart at the seams
163. I think I am a smart shopper
164. I like to be outrageous
165. I feel I get a raw deal out of life
166. I think a woman's place is in the home
167. I prefer stores where prices are always low
168. I never seem to have enough money
169. I regularly read the newspaper
170. I have more money now than last year
171. When I shop, I just want to get it over with

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Online Purchases
Customer Surveys of Agrana Fruit: as an Excel file: Part_I

172. How many online purchases have you made in the last month?
a. None
b. 1-4
c. 5-10
d. 11-15
e. 16+

173. For whom do you primarily shop for online?


a. Yourself
b. Family members
c. Friends
d. Business
e. Other

174. What is your most important consideration when shopping online?


a. Product selection
b. Competitive prices
c. Convenience
d. Promotions
e. Ease of use
f. Security
g. Other

175. When you purchase online, you purchase for:


a. Holidays
b. Birthdays
c. Special Events
d. Personal Interests
e. Travel
f. Business
g. Other

176. What are the top two Product or Special Interest Group sites you visit?

177. Before starting this survey, how familiar were you with the company’s website?
a. Not familiar
b. Heard of website
c. Visited website
d. Made purchases

178. How did you hear about the company’s website?


a. Did not hear about it
b. In store advertising
c. Friend or family
d. Advertising
e. Referred by another website
f. Other

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179. How many times did you visit the company’s website over the last month?
a. Never
b. 1-3
c. 4-6
d. 7-10
e. 11+
f. Don't remember

180. How beneficial is the idea of the company’s website to you?


a. Not beneficial
b. Somewhat beneficial
c. Beneficial
d. Very beneficial

181. Which item would you be interested in purchasing from the company’s website?

182. Given the item you have specified, now how beneficial might the website be to you?
a. Not beneficial
b. Somewhat beneficial
c. Beneficial
d. Very beneficial

183. If you were buying a GIFT, which items on the company’s website would you consider?

184. How many purchases have you made at the company’s website over the last year?
a. None
b. 1-3
c. 4-6
d. 7-10
e. Don't remember

185. How would you describe your experience visiting the company’s website?
a. Never visited site
b. Poor
c. Mediocre
d. Neutral
e. Good
f. Excellent

186. Do you have any comments or suggestions for the website?

187. How satisfied are you with the product(s) purchased?


a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, help desk)

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188. How long have you used the product(s)?


a. Less than 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. 1 to 2 years
e. 2 years or more
f. Never used

189. How often do you use the product(s)?


a. Once a week or more often
b. 2 to 3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year or less often
g. Do not use

190. Overall, how satisfied are you with the product(s)?


a. Very Unsatisfied
b. Unsatisfied
c. Somewhat Satisfied
d. Very Satisfied
e. Extremely Satisfied

191. Compared to other product(s) in this category that are available, would you say that
the product(s) is:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse
f. Don't know or never used

192. Will you use/purchase the product(s) again?


a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not
f. Never used

193. How likely are you to recommend the product(s) to others?


a. Definitely will recommend
b. Probably will recommend
c. Not sure
d. Probably will not recommend
e. Definitely will not recommend
f. Never Used

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194. Based on your experience with the product(s), how likely are you to again buy a
Company Product?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely

195. If you have contacted customer service, were all problems resolved to your complete
satisfaction?
a. Yes, by the company or its representatives
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
d. No problems / No contact with customer service

Multi-channel Retail Distribution


As technological and communications devices become more commonplace, consumers have been
able to adapt how they shop, how they make purchasing decisions and what they expect and demand
from retailers. Differentiation between purchasing channels, from mobile, to online, to retail store, is
quickly disappearing. Coupled and complementary with this phenomenon are the innovations being
made within the logistics and distribution industry, which are providing important solutions for
suppliers and retailers to bring products to consumers across the world.
Consumers have at their disposal substantial product and pricing information and competitive
offerings are only a few clicks away. When consumers shop online they expect their orders to be
processed immediately and shipped to their home within a few days. Retailers tend to believe that
when consumers are in the store they can easily check for a lower price, however the research shows
that consumer are more confident in finding lower pries online.
Where retailers with physical stores can out-perform online sales is in the provision of a buying or
store experience and in the provision of purchasing gratification and other emotional needs.
Consumers now find themselves with a ‘perfect market’ as they have more information on prices and
sources of supply; thus they have become more demanding. Albeit in gathering this information, and
making electronic based purchases, they also willing reveal a huge amount of information about
themselves and their purchasing habits. Retailers are increasingly harnessing this information to
convert more sales and to efficiently move product within their supply chains, especially as consumer
behaviour continues to develop and evolve along with technology. The tactics and strategies
employed by online and traditional retailers alike are changing the way goods are moved, stored and
sold; and indeed they are changing the way retailers choose and use physical sites from distribution
centres to retail stores.
The advent of e-commerce has entirely changed the retail trade. Technological has led to an increase
in information availability, and use of this data has given consumers the ability to shop regardless of
either their location or the location of the retailer. The result is that the retailer must be everywhere: on
the consumer’s smartphone, at their home and office and at the traditional retail site. The economic
downturn, the destruction of much private wealth and disposable income, the restriction of credit
availability, and the pressure on household budgets have influenced consumer buying trends in terms
of what consumers buy, how much they are willing to pay, and from where they will source their
purchases. Consumers are not indifferent about how they make purchases. By contract, retailers
must find ways to meet consumer demand regardless of the sales channel, while also providing a
level of experience, customised product delivery and overall satisfaction to support continued sales.
This new retail landscape and consumer demands require retailers to re-think and revise their
strategies. This pattern is being repeated, with greater force and urgency, in the developing countries
and consumer behaviours and demands are converging across the world.

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The retail environment has gone from single channel (retail sites or online) to multi-channel or omni-
channel. All retailers now have to consider a multi-channel approach to the market.

Customer Surveys of Agrana Fruit: as an Excel file: Part_I


The following parameters are examined in the Customer Surveys:
196. Order online for home delivery
197. Order online and pick up in store
198. Visit the store and order online via a kiosk
199. Visit the store and shop the retailer’s website via their mobile phones
200. Visit the store and shop on another retailer’s website
201. Visit the store, compare prices, and find the product at another physical store at a lower
price

Consumers perceive few boundaries in their shopping behaviours and retailers need to find efficient
and effective ways to manage the intricate logistics involved in serving consumers.

Whether retailers fully appreciate these changes in the retail distribution world is debatable and one
must analyse the technological developments and the implications for order fulfilment.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_I


202. Growth in e-commerce and its influence on the movement, storage and sale of
merchandise from production through consumer
203. The impact of technology on the supply chain and consumer behaviour
204. The increasing pace of trend cycles and inventory management which affect all parts of the
retail supply chain
205. The changing nature of retail in a global shopping environment

Stand-off Online Sites


Stand-off online sites are those used by retailers to liquidate or dump obsolete or remaindered stock.
These are usually sites which are not identified as being connected with the retailer’s main brand and
thereby they do not impact on or contaminate the retailer’s main stream offerings.
Stand-off sites can also include shops on EBay, Amazon, and other third party sites.
Retailers should incorporate sales on such sites with their existing inventory control and order
fulfilment.

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Events & Promotions


Most successful retailers organise Events and Promotions at least six times per year because this
reminds customers to come back to the store. By keeping customers interested, and getting them
excited about shopping at the store, more customers visit more often.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_I


206. Sales goals should be set for each promotion and a bonus reward should be offered to
each salesperson that reaches their goals.
207. Effective planning to have enough staff on hand to make the events run effectively.
208. Sufficient or additional inventory. Special items and assortments.
209. Evaluating the best promotional days and months. Selection of days and months that you
drive the most traffic to the store.
210. Detailed planning of the event and systemisation of the process.
211. Effective planning of advertising and direct mail.
212. Press release effectiveness.
213. Event ‘Hook’ that draws the attention of potential visitors quickly before the direct mail is
lost.
214. Creating an excitement that it triggers a ‘Fear of Loss’ in the customer’s mind.
215. Effective Event or Promotion Theme different to competitors.
216. Social Media to generate word of mouth advertising.

Loyalty Schemes
Customer loyalty schemes are an effective way to improve your customer-retention levels. The high
cost of bringing in new business compared to retaining existing clients is undisputed, thus increasing
customer retention can significantly boost bottom-line profits. Notwithstanding, many companies are
missing a trick when it comes to building customer loyalty.
In a competitive marketplace where customers find it easy to switch supplier, loyalty schemes are an
effective way to increase customer retention and improve profitability. To build a loyal clientele,
keeping the customer satisfied with one’s day-to-day operations is not always enough. The fact that
customers are satisfied does not stop them from taking their business to a competitor who offers them
something extra.
To increase loyalty, one needs to recognise and reward the best customers. A loyalty scheme can be
used to incentivise and delight the most valued customers. That in turn can increase profitability.
Loyalty initiatives allow one to focus on the best customers and improve customer satisfaction levels.
Loyal customers buy more and are often willing to pay more, which boosts cashflow. By increasing
loyalty, one can increase profitability and extend the time they place their business with the company.
Loyal customers are also good for business because the customer become the best advocates of the
company. They recommend the company to others, saving marketing costs. A loyal customer's
endorsement is more powerful to their friends and family than any advertising campaign.
Customers like loyalty schemes because they feel they are getting rewarded for giving the company
their business. Thus the scheme needs to offer customers something they will appreciate. However, it
should also be devised with profit in mind.
The company is trying to reward customers for behaving in the way that it wants.
The rewards offered to regular customers can vary from fixed discounts to extra goods or prizes.
Foremost, the scheme should be simple to use and the rewards should be attractive and attainable. If

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customers have to spend a lot to get a small gift, they will be insulted. At the same time, the company
must make sure it can recover the cost reasonably quickly.
The data generated by a loyalty scheme can also be used to improve business. Loyalty programmes
put the spotlight on customer behaviour. They can show the best clients - and highlight the worst.
It can be more profitable to lose bad customers than to gain new ones. While the best customers may
be bringing in the lion's share of profit, the worst customers, the bargain-hunters that spend little and
only buy discounted goods, can actually cost money. The loyalty scheme can significantly improve
this scenario by rewarding customers and actively dissuading the worst.
Loyalty schemes can also be used to win back lapsed customers. These customers are much easier
to win over than cold prospects. They know the company and the company knows them, their buying
history and where and how to reach them.
The data generated by a loyalty scheme can offer other valuable insights. It can highlight defection
patterns and can also help the company improve your product range and stock selection. Knowing
what the best customers frequently buy helps one choose which lines to stock - and which lines to
expand.

Social Media
Social media in a retail context is the action of Peer pressure to create sales.
As social media had evolved, so has how consumers make purchase decisions, particularly the
younger and more suggestible demographics.
The constant interconnectedness of social media sites, coupled on mobile devices have snowballed
the effects of peer opinion on purchases. “Crowd Sourcing”, meaning the tapping of the collective
awareness of one’s peer group, or a section of the audience, is a growing trend.
Over 50% of this younger demographic is likely to explore brands via a social network, versus less
that 27% of older demographics.
Over 50% of this younger demographic versus less that 20% of older demographics use mobile
devices to access user opinion before buying a product.
The growth of photo-sharing and similar websites that allows users to create and share products and
ideas go viral faster than before. Over 30% of online shoppers have made a purchase based on what
they saw on such sites. Retailers are increasingly using these sites for marketing promotions.

Caution should however be exercised before large marketing investments are made in this area. As
with all trendy and fashion driven activities, especially those concerning the younger demographics,
the shelf life of these market efforts are limited and unpredictable. There are already signs of user
fatigue with social media sites and user growth in these activities will become unsustainable in the
future. When that happens, the use of these promotional venues by retailers will become counter-
productive.

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Part J : Pricing & Price Points

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

Pricing Study
This survey is about the Company’s brand(s) / product(s) / service(s) as described to respondents
individually and as a basket of products.

The baseline for this survey is the 15 major Product Lines of the Company. A more comprehensive,
with individual products and more product groups is available on request.

Customer Surveys of Agrana Fruit: as an Excel file: Part_J


1. How would you best describe your familiarity with the Company’s brand(s) / product(s) /
service(s)?
a. I was not aware of the brand / product / service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this

2. About how many units of these products would you buy over the next year at each price point
listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

3. About what price would you expect to pay for these products / services?

4. At what price would these products begin to look inexpensive or cheap?


a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

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5. At what price would these products begin to look Good Value?


a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

6. At what price would these products begin to look too expensive?


a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

7. At what price would these products begin to look so expensive that you would never consider
buying them?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

8. If you knew that the average price of similar brand / product / service was [Price], would you
expect to pay more or less to buy the described brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less

9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use

10. How often could you find a use for the described brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use

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11. Based on the description, how interested would you be in buying the described brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested

12. What is it that you like most about the described brand / product / service?

13. What do you like least about the described brand / product / service?

14. Which of the following best describes your need for the described brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.

Pricing Strategies

Price Discounting
 Many retailers reacted very quickly to the financial crisis by discounting prices across the
board without fully understanding the impact on demand or profitability. This has had a
dramatic effect in many retail sectors where recession-driven discounting has fundamentally
eroded both the value of the market, and the value proposition of the product sold.
Consumers’ price expectations are lower and buying behaviour has changed.

Unsustainable Pricing
 Whilst retailers know that current price levels are not sustainable, they also recognise that
downturn discounting has re-set the price baseline for consumers, who are now unwilling to
pay more. This problem is compounded by inflation and rising input costs, causing retailers to
be squeezed from both sides.

Customers Segments
 Retailers cannot identify their most profitable customers segments, and do not have the
information available to understand the impact of price changes on demand patterns.
Recession-driven discounting has attracted and retained less profitable customers and this
has serious implications for the go-to-market strategy.

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Strategies
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J
15. Pricing strategy as a Boardroom decision
16. Align pricing to the overall business strategy, and the new market dynamics
17. Obtain accurate customer, competitor and market information
18. Drive consistent execution
19. Prepare for future challenges

Price Discounting
When demand fell in the wake of the financial crisis, retailers were driven by the need to maintain
sales volumes and protect market share, therefore critical pricing decisions were taken in a hurry and
many retailers resorted to price reductions across their product and service portfolios.
 55% of companies reduced prices across the board
 65% of business leaders fear recession-driven discounting has hit profits
 50% conducted price wars with competitors

Retailers were forced to make reactive pricing decisions without adequate information and many
companies felt compelled to competing on price.
 50% of retailers entered into price wars with competitors.
 55% of retailers reduced prices which resulted in reduced margins.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J


20. When survival is the key driver, dropping price is an understandable response as volumes
fall.
21. Discounting products or services which are price elastic result in an increase in sales
volumes.
22. Clear understanding of the trade-off between volumes and margin.
23. Impact of price changes on demand, and the impact on profitability.
24. Understanding of the customer base and the price elasticity of various customer segments.
25. Discounts are often driven not by an informed understanding of market dynamics but by sales
personnel and their incentives.
26. Store success is frequently measured by sales volume, rather than the profitability of the
revenue.
27. Retailers needed to look at their pricing processes and controls to ensure their pricing
strategy was effectively implemented and monitored.
28. Performance metrics should be linked to profit as well as volumes; and appropriate controls,
such as target and limit prices, should be embedded into company policies.

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Impact of Unsustainable Pricing


 72% of retailers state that their current pricing is not sustainable
 66% of retailers state that increasing prices from recession discount levels presents a
significant challenge
 55% of retailers state that they are unable to pass on cost inflation to customers

Stagnant Prices
 65% of retailers state that recession-driven discounting will not be sustainable in the long
term.
 52% of retailers state that their company’s overall pricing strategy is not sustainable.

Retailers fear that price increases will face stiff market resistance, because customers used to a
decade of low inflation, followed by heavy price-cutting, perceive discounts to be the norm. A majority
of retailers, 56%, state that customers who enjoyed discounts during recession will be unwilling to pay
higher prices in better times.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J


29. Reactive, recession-driven discounting cannot now be sustainable.
30. Retailers that think customers will pay higher prices in better times are being highly optimistic.
31. Once customers have been educated on a new price point, it is exceptionally difficult to bring
that point back up.
32. Unemployment, government cuts, public sector redundancies, increases in taxation, and the
economic climate will continue to have a bearing on changing buying habits.
33. Discounted prices are out of kilter with the fixed cost base of many retailers, and aligning the
business model and cost base with post-recessionary pricing will be formidable; thus retailers
have to re-visit their cost structures and potentially make some radical decisions to ensure
they are fit to compete and succeed in the future.
34. To achieve the necessary cost re-structuring, retailers might have to divest part of their
business, stop some unprofitable activities, or implement a different sourcing model.
35. What this requires is an in-depth review of markets, business models and pricing strategy.
36. Businesses need to decide exactly which market they are competing in. In retail the lower
cost ‘value’ traders which have thrived by attracting increasingly price-conscious consumers
are here to stay. Their business model is predicated on ensuring their costs are kept low, to
allowing them to make sustainable margins.
37. Alternatively the low volume / premium price market retailers need to understand exactly what
their customers value, build a strong brand, and have an exceptional store experience and
offering.
38. To exacerbate this price lag effect there is fear of first-mover disadvantage. Over 53% of firms
are delaying significant increases in the current climate, and 65% believe they risk losing
customers and damaging sales volumes if their organisation is first to remove discounts.
39. The basis of the pricing issue is that retailers are locked into their current prices.

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Inflation
 With consumer product prices stagnant, rising commodity and price inflation compounds the
problems of retailers. 53% of retailers are experiencing cost inflation, and forecasting further
rising costs.
 70% of retailers state that they will have problems in passing on rising input costs to their
customers; and 53% state categorically that they will be unable to do so.

Profit Margins
 Price erosion coupled with cost inflation may be depressing retailer’s profits by 3-12%.

Profitability
40. Retailers are unlikely to recover their profit position in the next 12-36 months.
41. The restoration of pricing levels will take longer that the predictions generally make in the
retail trade.
42. Low customer purchasing power is likely to ensure that prices remain depressed for at least
24 months. After this time, retailers will not have the same price / customer / product mix
which they enjoyed before the recession.

Customers Base
 Lacking critical business intelligence, companies have been pricing their way through
recession in the dark. 70% of retailers state that determining a coherent pricing strategy is
very difficult, and 60% state that it is extremely difficult to obtain accurate data on the impact
of pricing on profitability. 50% believe that recession discounting policies have attracted less
profitable customers
 60% of retailers state that they do not have accurate data on the impact of pricing on sales
performance and profitability.
 45% of retailers state that their company lacks the management tools and right information to
support informed and effective pricing decisions.
 55% of retailers state that identifying the most profitable customers presents is difficult as
does identifying the most profitable products or services. Over half of retailers state that they
do not understand what customers require and what is the value proposition they seek.
 Two thirds of retailers state that they do not have a consistent and coherent pricing strategy.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J


43. Developing and agreeing a consistent and coherent pricing strategy
44. Identifying what customers value
45. Understanding customer requirements
46. Identifying the most profitable products/services
47. Identifying the most profitable customers
48. Obtaining accurate data to enable visibility of the impact of pricing on profitability
49. Obtaining accurate data to enable visibility of the impact of pricing on sales performance
50. Identifying the most profitable customers, products and services is clearly a more challenging
task than most retailers acknowledge.

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51. To understand profitability by customer, retailers need visibility of the true ‘cost to serve’, and
how that may change over time.
52. Few retailers have a strong, granular understanding of their costs to serve by customer,
product or channel. This limits their ability to accurately analyse the likely impact on
profitability of pricing and other changes.
53. Retailers have not come to terms with different sales volumes, changing customer behaviours
and the impact of falling prices. These factors do not affect the ‘cost-to-serve’ equation in a
linear fashion, and for this reason retailers are finding it difficult to understand which product
offerings and which market segments are actually generating a profit.

Differential Value
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J
54. Retailers know that in striving to maintain sales volumes, they have been operating in markets
they might not have chosen to play in. 50% of retailers state that they believe that discounting
policies have attracted and retained less profitable customers during the recession.
55. Retailers will produce a tiered pricing structure for different customer segments in the future.
56. Retailers will not be able to focus discounts on their most profitable or highest-spending
customers segments in the future.
57. Retailers face risks in shifting customer demographic focus.
58. Business plans, growth projections and investments are all made on the basis of an accepted
customer demographic, and buying habits.
59. Known customers demographic have known spending patterns and spending power.
60. Retailers who offered discount promotions during the recession need to be careful of how this
may have affected the customer base as they have educated their customers to a price point
and a level of value that they might not be able to maintain.
61. Retailers may not have the ability to spot such a shift, as internal reporting systems are often
too slow to recognise this until it is too late.
62. Many retailers do not know which customers and product lines drive profit.
63. Underlying retailer transactional systems fail to provide the information to accurately calculate
costs to serve.
64. It is often impossible to determine profitability by customer, product or channel.
65. Business intelligence is critical to provide the insight to identify where value is really
generated in an organisation.
66. Retailers need to invest in information gathering; however there is often reluctance to
undertake this because heavy investment in ERP (Enterprising Planning) systems has often
failed to realise the anticipated benefits.
67. The omission of a business intelligence input has meant an inability to capitalise on the data
and business insight ERP can provide.
68. More efficient and accurate cost allocation provides an understanding of true profitability by
customer, product and channel. Retailers can then focus on retaining and growing the
accounts of their most profitable customers and shedding unprofitable product lines.

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Future Strategies
Retailers understand the need to re-align pricing and are keen to introduce premium priced products
or variable pricing, however there is not a great deal of confidence in being able to execute such
strategies.

Future Pricing Strategies


 65% of retailers state that after a few years there will be a return to premium pricing.
 60% of retailers state that discount price offerings will remain important.
 70% of retailers state that variable pricing will also form a key part of the pricing mix.
 55% of retailers state that they will introduce premium price products and services.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_J


69. Implementing new contracting arrangements
70. Increasing joint business planning with key customers
71. Introducing lower cost, lower price products and services
72. Introducing premium price products and services Introducing variable / pay-as-you-go pricing
73. Customer Surveys suggest that the plans of retailers to higher prices may not be successful.
74. Customer Surveys suggest that they are sceptical about premium priced products.
75. Supplier Surveys suggest that new ways of servicing retail customers, such as payment for
performance and on-demand delivery, may be difficult for retailers to deliver.
76. Senior Management time should be dedicated to setting the most profitable pricing strategy.
77. Pricing strategy should be a part of a full business strategy review.
78. Market dynamics and customer buying habits have changed and previously held assumptions
around market dynamics must be reviewed andthe business model re-evaluated.
79. Setting and executing pricing policy will be a critical element of this to drive profitable growth.
80. Access to the right information
81. Retailers should have access to robust, accurate and timely data to inform pricing decisions.
82. Data should include a granular, or item by item, level of understanding of the profitability of
products and customers.
83. Effective business intelligence does not just drive action, it drives decisions and strategy.
84. Drive consistent execution
85. Be prepared to take on the significant challenge of changing the behaviour of sales
personnel.
86. Embed the right selling incentives, processes and controls that are required to ensure pricing
strategy is executed consistently, and sales personnel are delivering profit, not just volumes.

Preparation for Future Price Changes


87. Invest in understanding how pricing models in market sectors are likely to change in the
future, and how to prepare to implement those changes successfully.

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Part K : Retailer Performance Analysis

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

Store Managers Survey


Store Personnel Surveys of Agrana Fruit: as an Excel file: Part_K

1. Confidence that the company will gain additional market share in the industry in the coming 2
years?
a. Very confident
b. Confident
c. Somewhat confident
d. Not sure
e. Somewhat doubtful
f. Doubtful

2. What is the range of your outlets sales volume of company products last year?
i. $250,000 - $499,000
ii. $500,000 - $999,000
iii. $1,000,000 - $2,999,000
iv. $3,000,000 - $4,999,000
v. $5,000,000 - $9,999,000
vi. $10,000,000 - $19,999,000
vii. $20,000,000 or more

3. How long has your outlet been established?


a. 1-5 years
b. 5+ years

4. How much of your business volume is accounted for by this company’s own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more

5. How much of your profit is derived from this company’s own products?
a. 24% or less
b. 25% - 49%
c. 50% - 74%
d. 75% or more

6. Which of the following company product lines do you fully support at this time?

7. Compared to the market leader, how do your products offer advantages in selling situations?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage

8. Compared to the market leader, how do your products offer advantages in profitability?
a. Strong advantage

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b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage

9. Compared to the market leader, how do your products offer advantages in service and
supplies business?
a. Strong advantage
b. Slight advantage
c. About the same
d. Slight disadvantage
e. Strong disadvantage

10. Which product line do you see as offering a stronger competitive position to your company?

11. Overall, have actions taken by company senior sales and marketing management over the
past year had an impact one way or another on your business?
a. Very positive impact
b. Positive impact
c. Somewhat positive impact
d. Not sure
e. Somewhat negative impact
f. Negative impact
g. Very negative impact

12. Describe which actions had the greatest impact on your business, and why:

13. Which of the following best describes the influence you feel you have with company senior
management?
a. A lot of influence
b. Some influence
c. Very little influence
d. No influence

14. On average, which of the following best describes company management's timeliness in
response to your requests and inquiries?
a. Very timely
b. Somewhat timely
c. Mixed
d. Somewhat slow
e. Very slow

15. How do you rate your company’s operational abilities?

16. Which of the following administrative areas would you say presents the greatest opportunity
for improvement?
a. Order processing
b. Shipping
c. Inventory tracking
d. Billing and credits

17. How do you rate your company’s marketing and sales programs?

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18. Compared with the investment support level in your company business this year, what are the
investment support plans for next year?
a. Greatly increase support
b. Increase support
c. Maintain same level of support
d. Decrease support
e. Greatly decrease support

19. Why did you answered the way you did about your investment support plans for your
company business for next year?

20. What suggestions do you have for company senior management which would help you
improve the success of your company business next year?

Customer Satisfaction Survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_K

21. Overall, I am very satisfied with the way the retailer performed (is performing):
a. Strongly Disagree
b. Somewhat Disagree
c. Neither Agree nor Disagree
d. Somewhat Agree
e. Strongly Agree

22. Sales Personnel are well trained.

23. Sales Personnel are well supervised.

24. Sales Personnel adhere to professional standards of conduct.

25. Sales Personnel act in my best interest.

26. Overall, I am satisfied with the Sales Personnel


a. Strongly Disagree
b. Somewhat
c. Disagree
d. Neither Agree nor Disagree
e. Somewhat Agree
f. Strongly Agree

27. The store senior staff are knowledgeable and professional.

28. The store senior staff are making a positive contribution to customer service.

29. The store senior staff responded to my inquiries in a timely manner.

30. Overall, I am very satisfied with the store senior staff.

31. Compared to how you felt about the retailer before this purchase, what is the likelihood of
completing another purchase with the retailer?
a. Better, based on performance

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b. About the same


c. Worse, based on performance

32. Considering the overall value, you paid for the product, was it…
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it

Inventory Control
Product life cycles are shrinking, which adds pressure to get final products into consumers' hands
much faster than before.
With more aggressive competition, keeping inventory lean while still meeting fluctuating demand
patterns becomes critical, and underlines the need for technological solutions to manage inventory
and orders.

Inventory Balancing Act


Retailers must balance how much inventory to stock in-store versus distribution centres and
warehouses. This calculation bears consideration of the required coordination between all possible
channels such as:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


33. Buy online, pick up in local store
34. Buy anywhere, ship from store to home
35. Buy online, transfer to store for pick-up
36. Research online, reserve in store
37. Buy online, return to store

Just-in-time inventory
Just-in-time inventory management allows for the reduction of stock and storage costs, but may
increase transportation costs and potentially delivery times. The Speed versus Cost equation is well
known to all retailers and these considerations will particularly impact retailers with seasonal, short
shelf life and trend based products.

Microwave merchandising
The fast-fashion global retailers from Sweden, Spain, the UK and other countries, have dominated the
clothing industry in recent years, by attracting considerable consumer bases, expanding revenues
and expanding aggressively in prime markets in both developed and developing countries. The
success of retailers like Zara, H&M, and others is the quick turnaround times for product ranges and
store displays. This stimulates interest and demand.
These retailers are changing and defining buyer expectations. Consumers are now seeking new
product ranges in 6 to 9 weeks as opposed to 6 to 9 months. Many of these retailers manage the
entire production and distribution process in-house; this reduces risk and ensures an efficient supply
chain.
Those retailers without upstream integration processes must respond with a strategy of smaller orders
distributed amongst a greater pool of suppliers. This however tend to lead to increased unit costs and
therefore the long-term competitiveness of such a strategy is uncertain.

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Speed and Cost


Clearly the cost of sea transport is substantially less than air freight. In general Sea transportation is
used by over 60% of long-distance shippers whilst Air is user by 30% of long-distance shippers.
Retailers are having to evaluate the trade-off between increased velocity and flexibility, and
transportation costs, in the light of both inventory requirements and product-to-market times.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


38. Factors for Just-in-time management
39. Supply chain agility
40. Supply chains visibility and flexibility
41. Inventory certainty
42. Transit visibility and flexibility
43. Distribution centre management
44. Store stock holdings
45. Back order management

46. Inventory optimisation


47. Supply chain optimisation
48. Customer service optimisation
49. Speed to market
50. Integration of orders into the stock processing schedule

51. In-house manufacturing


52. Own private label products
53. Product availability
54. Supplier mark-ups

Operational Performance Analysis


A survey of Consumers and Retail Customers to analyze overall Retailer Performance Issues:

Customer Surveys of Agrana Fruit: as an Excel file: Part_K


55. Attitudes Towards Discount / Store Own-Brand Products
56. Availability -v- Price Question
57. Perceptions of Currently Global Brands
58. Perceptions of Currently Store Brands
59. Price Sensitivity
60. Product Awareness
61. Product Awareness of Store Brands
62. Purchasing Criteria: Current
63. Purchasing Criteria: Current of Store Brands
64. Purchasing Criteria: Future Trends
65. Purchasing Criteria: Future Trends of Store Brands
66. Quality -v- Price Question
67. Reaction to Advertising & Sales Promotion
68. Reaction to Advertising & Sales Promotion of Store Brands
69. Reaction to P.O.S. & Merchandising
70. Satisfaction with Existing Branded Outlets
71. Satisfaction with Existing Store Brand Products
72. Satisfaction with Existing Products
73. Satisfaction with Existing Retailers
74. Satisfaction with Store Brand Product Design
75. Satisfaction with Store Brand Product Packaging
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76. Satisfaction with Store Brand Product Packaging Design


77. Satisfaction with Store Brand Product Quality
78. Satisfaction with Product Availability
79. Satisfaction with Product Design
80. Satisfaction with Product Packaging
81. Satisfaction with Product Packaging Design
82. Satisfaction with Product Quality
83. Satisfaction with Retailers Stock Levels
84. Willingness to Purchase Foreign Brands
85. Willingness to Purchase Store Brands
86. Advertising Posture: Store/Outlet Level
87. Advertising Posture: Company Level
88. Branded Product Information: Store/Outlet Level
89. Branded Product Information: Branded Products
90. Branded Product Information: Company Level
91. Branded Product Information: Counter Staff
92. Branded Product Information: Dedicated Products Staff
93. Contract Documentation: Store/Outlet Level
94. Contract Documentation: Company Level
95. Counter Staff Customer Handling: Store/Outlet Level
96. Counter Staff Customer Handling: Branded Products
97. Counter Staff Customer Handling: Company Level
98. Counter Staff Customer Handling: Counter Staff
99. Counter Staff Customer Handling: Dedicated Products Staff
100. Credibility: Store/Outlet Level
101. Credibility: Branded Products
102. Credibility: Company Advertising
103. Credibility: Company Level
104. Credibility: Company Offers & Promotions
105. Credibility: Counter Staff
106. Credibility: Dedicated Products Staff
107. Customer Awareness of Product: Store/Outlet Level
108. Customer Awareness of Product: Company Level
109. Customer Complaint Handling: Store/Outlet Level
110. Customer Complaint Handling: Branded Products
111. Customer Complaint Handling: Company Level
112. Customer Complaint Handling: Counter Staff
113. Customer Complaint Handling: Dedicated Products Staff
114. Customer Comprehension of Product: Store/Outlet Level
115. Customer Comprehension of Product: Company Level
116. Customer Confidence at Store/Outlet Level
117. Customer Confidence at Company Level
118. Customer Confidence in Branded Products
119. Customer Confidence in Company Advertising
120. Customer Confidence in Company Offers & Promotions
121. Customer Confidence in Counter Staff
122. Customer Confidence in Dedicated Products Staff
123. Customer Confidence in Product: Store/Outlet Level
124. Customer Confidence in Product: Company Level
125. Customer Handling: Store/Outlet Level
126. Customer Handling: Branded Products
127. Customer Handling: Company Level
128. Customer Handling: Counter Staff
129. Customer Handling: Dedicated Products Staff
130. Customer Problem Solving: Store/Outlet Level
131. Customer Problem Solving: Branded Products
132. Customer Problem Solving: Company Level
133. Customer Problem Solving: Counter Staff
134. Customer Problem Solving: Dedicated Products Staff
135. Customer Service: Store/Outlet Level

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136. Customer Service: Branded Products


137. Customer Service: Company Level
138. Customer Service: Counter Staff
139. Customer Service: Dedicated Products Staff
140. Customer Service: Offers & Promotions
141. Promotional Activity: Store/Outlet Level
142. Promotional Activity: Company Level
143. Reputation at Store/Outlet Level
144. Reputation at Company Level
145. Reputation of Branded Products
146. Reputation of Counter Staff
147. Reputation of Dedicated Products Staff
148. Staff Awareness of Product: Branded Products
149. Staff Awareness of Product: Counter Staff
150. Staff Awareness of Product: Dedicated Products Staff
151. Staff Comprehension of Product: Branded Products
152. Staff Comprehension of Product: Counter Staff
153. Staff Comprehension of Product: Dedicated Products Staff
154. Staff Confidence in Product: Branded Products
155. Staff Confidence in Product: Counter Staff
156. Staff Confidence in Product: Dedicated Products Staff
157. Staff Efficiency: Store/Outlet Level
158. Staff Efficiency: Branded Products
159. Staff Efficiency: Company Level
160. Staff Efficiency: Counter Staff
161. Staff Efficiency: Dedicated Products Staff
162. Staff Efficiency: Offers & Promotions
163. Staff Efficiency: Problem Solving
164. Staff Integrity: Advertising & Promotions
165. Staff Integrity: Store/Outlet Level
166. Staff Integrity: Branded Products
167. Staff Integrity: Company Level
168. Staff Integrity: Counter Staff
169. Staff Integrity: Dedicated Products Staff
170. Staff Integrity: Offers & Promotions
171. Staff Performance: Store/Outlet Level
172. Staff Performance: Branded Products
173. Staff Performance: Company Level
174. Staff Performance: Counter Staff
175. Staff Performance: Dedicated Products Staff
176. Staff Performance: Offers & Promotions
177. Staff Performance: Overall Customer Handling
178. Truth & Honesty: Advertising & Promotions
179. Truth & Honesty: Store/Outlet Level
180. Truth & Honesty: Branded Products
181. Truth & Honesty: Company Level
182. Truth & Honesty: Counter Staff
183. Truth & Honesty: Dedicated Products Staff
184. Truth & Honesty: Offers & Promotions
185. Verbal Contact: Store/Outlet Level
186. Verbal Contact: Branded Products
187. Verbal Contact: Company Level
188. Verbal Contact: Counter Staff
189. Verbal Contact: Dedicated Products Staff
190. Written / Internet / Telephone Communications: Store/Outlet Level
191. Written / Internet / Telephone Communications: Branded Products
192. Written / Internet / Telephone Communications: Company Level
193. Written / Internet / Telephone Communications: Counter Staff
194. Written / Internet / Telephone Communications: Dedicated Products Staff
195. Written / Internet / Telephone Communications: Promotions & Offers

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Issues covered with Trade Wholesalers, Brand Managers, Trade Buyers, Retailers, In-store Retail
Negotiators include:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


196. Retail Management Performance: Person/s Approving / Authorising Order/s
197. Retail Management: Person/s Deciding What Products / Brands are to be Stocked
198. Retail Management Performance: Person/s Evaluating Products & Brands Available
199. Retail Management Performance: Person/s Initiating Decision to Increase Amounts
Purchased / Total Inventory
200. Retail Management Performance: Person/s Initiating Decision to Introduce New
Products or Brands
201. Retail Management Performance: Person/s Initiating Decision to Re-Order
202. Retail Management Performance: Person/s Monitoring Results of Purchases & Sales
203. Retail Management Performance: Person/s Negotiating Terms with Suppliers
204. Retail Management: Person/s Preparing Orders / Specifications for Purchases
205. Retail Management: Person/s Surveying Suppliers & Seeking Quotations

206. Wholesaler Management Performance: Person/s Approving / Authorising Order/s


207. Wholesaler Management Performance: Person/s Deciding What Products / Brands
are to be Stocked
208. Wholesaler Management: Person/s Evaluating Products & Brands Available
209. Wholesaler Management Performance: Person/s Initiating Decision to Increase
Amounts Purchased / Total Inventory
210. Wholesaler Management Performance: Person/s Initiating Decision to Introduce New
Products Or Brands
211. Wholesaler Management Performance: Person/s Initiating Decision to Re-Order
212. Wholesaler Management: Person/s Monitoring Results of Purchases & Sales
213. Wholesaler Management Performance: Person/s Negotiating Terms with Suppliers
214. Wholesaler Management Performance: Person/s Preparing Orders / Specifications
for Purchases
215. Wholesaler Management: Person/s Surveying Suppliers & Seeking Quotations

216. Retail Buyers: Attitudes Towards Discount / Own-Brand Products


217. Retail Buyers: Availability -v- Price Question
218. Retail Buyers: Buying Patterns
219. Retail Buyers: Current Purchasing Criteria
220. Retail Buyers: Frequency of Deliveries
221. Retail Buyers: Frequency of Purchase/s
222. Retail Buyers: Method of Payment for Supplies
223. Retail Buyers: Ordering Procedures
224. Retail Buyers: Product Reject/Return Rate by Customers
225. Retail Buyers: Product Reject/Returns Rate at Goods Inwards
226. Retail Buyers: Product Reject/spoilage Rate Whilst Held in Stock
227. Retail Buyers: Purchasing Criteria - Future Trends
228. Retail Buyers: Quality -v- Price Question
229. Retail Buyers: Reactions to Advertising & Sales Promotion
230. Retail Buyers: Satisfaction with After-Sales Services Received From Suppliers
231. Retail Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
232. Retail Buyers: Satisfaction with Availability of Supplies
233. Retail Buyers: Satisfaction with Deliveries / Frequency & Up-Take
234. Retail Buyers: Satisfaction with Existing Methods of Supply & Distribution
235. Retail Buyers: Satisfaction with Existing Products
236. Retail Buyers: Satisfaction with Existing Suppliers & Sources
237. Retail Buyers: Satisfaction with Ordering Procedures
238. Retail Buyers: Satisfaction with Quality & Specifications of Supplies
239. Retail Buyers: Satisfaction with Suppliers' Stock Levels
240. Retail Buyers: Satisfaction with Promotional & Advertising Assistance Received

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241. Retail Buyers: Satisfaction with P.O.S. & Marketing Materials


242. Retail Buyers: Satisfaction with Terms of Trading
243. Retail Buyers: Source of Supply
244. Retail Buyers: Supplier Loyalty

245. Wholesale Buyers: Attitudes Towards Discount / Unbranded / Own-Brand Products


246. Wholesale Buyers: Availability -v- Price Question
247. Wholesale Buyers: Buying Patterns
248. Wholesale Buyers: Current Purchasing Criteria
249. Wholesale Buyers: Problems with Products
250. Wholesale Buyers: Sales Promotional Activities Mix
251. Wholesale Buyers: Sales Promotional Activities to their Retailers
252. Wholesale Buyers: Delivery / Service Area
253. Wholesale Buyers: Discounts Offered to Retailers
254. Wholesale Buyers: Experiences of Product Reject Claims
255. Wholesale Buyers: Frequency of Deliveries to Retailers
256. Wholesale Buyers: Frequency of Purchase/s
257. Wholesale Buyers: Inventory Financing
258. Wholesale Buyers: Mode of Ordering by Retailers
259. Wholesale Buyers: Mode of Payment by Retailers
260. Wholesale Buyers: Number of Competitive Producers Represented
261. Wholesale Buyers: Producers Sales Promotion Most Influencing Dealers
262. Wholesale Buyers: Purchasing Criteria - Future Trends
263. Wholesale Buyers: Quality -v- Price Question
264. Wholesale Buyers: Retailers Attitude Towards Price -v- Availability
265. Wholesale Buyers: Sales Call Frequency Per Regular Customer ( Average - Delivery
& Servicing )
266. Wholesale Buyers: Satisfaction with After-Sales Services Received From Suppliers
267. Wholesale Buyers: Satisfaction with Availability of Advertising Support & POS /
Promotional Materials
268. Wholesale Buyers: Satisfaction with Availability of Supplies
269. Wholesale Buyers: Satisfaction with Documentation / Instructions
270. Wholesale Buyers: Satisfaction with Existing Methods of Supply & Distribution
271. Wholesale Buyers: Satisfaction with Existing Products & Product Ranges
272. Wholesale Buyers: Satisfaction with Existing Suppliers & Sources
273. Wholesale Buyers: Satisfaction with Own Stock Levels
274. Wholesale Buyers: Satisfaction with Producers Ability to Fulfil Orders On Time
275. Wholesale Buyers: Satisfaction with Producers Credit & Other Financial Details
276. Wholesale Buyers: Satisfaction with Producers Delivery Frequency & Up-Take
277. Wholesale Buyers: Satisfaction with Producers Ordering Procedures & Formalities
278. Wholesale Buyers: Satisfaction with Producers Stock Levels
279. Wholesale Buyers: Satisfaction with Producers Terms of Trading
280. Wholesale Buyers: Satisfaction with Quality & Specifications of Supplies
281. Wholesale Buyers: Satisfaction with Quality of Supplies Received
282. Wholesale Buyers: Satisfaction with Promotional & Advertising Assistance Received
283. Wholesale Buyers: Supplier Loyalty

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Retail Performance Intelligence


Retail performance intelligence is vital to key business decision making, whether in one’s own
company or in order to effectively compete with other companies.
Retailers need to monitor their performance in real terms, and thereby have immediate control of their
decision making. The ability to interrogate business data and site performance in real time allows
managers to make timely decisions.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


284. Site performance comparisons and ranking
285. Performance comparisons according to date /week / hour / day of the week / period
286. Site or data comparisons for key performance indicators e.g. sales conversion
287. Contextual information relevant for evaluating performance e.g. weather and events
288. Data should be predefined, scheduled and distributed according to the requirements
of the managers concerned.

Business Performance Comparisons


Managers can only analyse the situation through accurate data on what is going on not only in one’s
own stores, and shopping areas, but also compare it with one’s competitors by size, type and
location. Correlations and hidden patterns over time help one identify the problems and opportunities.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


289. Retail space performance
290. Optimum shopper to staff ratio
291. Customer service
292. Cost controls
293. Conversion rates
294. Competitive analyses
295. Historic and forecast performance data

Shopper Numbers and Quality


Retailers are aware that attracting the right demographic will lead to the higher conversion rates and
average transaction values. The use of live data around consumers’ behaviour and preferences,
coupled with synchronised advertising and marketing activity will draw quality traffic. Where and how
shoppers buy reveal the effectiveness of promotions in increasing traffic and sales.

Customer Surveys of Agrana Fruit: as an Excel file: Part_K


296. Demographic targeting by location
297. Consumer Drivers and Purchasing Behaviours by location
298. Promotional targeting by demographic and location
299. Monitoring traffic, conversion rates and sales results

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Optimised Store Performance


Retailers look for empirical evidence which demonstrates which products and promotional activities
will generate healthy traffic at each retail site; and that this will translate into profitable sales. Essential
metrics include:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_K


300. Average spend per visitor
301. Breakdown of sales across different retail product groups
302. Sales performance of adjacent (owned and competitive) retail units
303. Performance evaluations of each site
304. Sales density across sites in the portfolio
305. Stores that are over-trading and can be moved to larger units with lower costs due to
economies of scale
306. Stores which are under-trading and require action can be taken to mitigate the
situation

Site Potential & Floor Mapping


Retailers have to ensure every part of their retail space generates the maximum return on investment.
Footfall numbers are simply not enough and one needs to encourage a steady flow of traffic around
every area of the store. Floor space mapping analyses the site by discrete areas enabling one to
identify hot and cold spots; and thereby understanding those areas that are under and over-
performing. This allows the retailer to take appropriate action to optimise the situation.

Comparative Site Performances


Retailers have to compare individual site performance across their entire store portfolio by a range of
criteria including geographic region, size, type and store age to identify under and over-performing
stores. As one of the key factors informing the portfolio decision is whether to buy, sell or refurbish
particular stores, this objective data will prove useful to managers working to increase the value of the
whole portfolio.

Physical Operations at individual sites


Armed with detailed information on footfall traffic volumes, day by day, and hour by hour, the
individual store’s HVAC and lighting systems can be programmed to more closely mirror store use,
cutting energy costs considerably. Store usage patterns can also be factored in when drawing up
rosters for cleaning and security staff, thereby creating additional savings in personnel costs.

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Technology Usage
The use of communications technology by consumers, and the evolution of diverse retail channels
require that retailers be able to sell and deliver wherever the customer is located. Consumers expect
a wider variety of products from a single source and better product value without any loss in product
or service quality. To enable retailers to adequately compete they need to capture and utilise the
necessary business data:

Expert and Industry Appraisal of Agrana Fruit: as an Excel Part_K


307. Technological investment
308. Point of sale terminal data gathering
309. Online sales data gathering
310. Supply chain data
311. Site level of inventory
312. Distribution centre inventory
313. Social media integration
314. Search engine integration
315. Targeted web page advertising
316. Web identification and activity tracking
317. Consumer targeting
318. Target demographic surveillance
319. Online advertising calibration

320. Sales personnel support systems


321. Supply chain visibility
322. Goods-in-transit
323. Delivery windows
324. Stock requirement predictions

325. Real time availability of stock information to sales personnel


326. Kiosks where customers can check inventory
327. Kiosks where customers can purchase and have them directly shipped to their home

328. Retail channels:


a. in store
b. catalogue/call centre
c. traditional web
d. mobile web
e. social media
f. digital signage
g. kiosks

329. Retail supply chain resources:


a. WMS (Warehouse management software)
b. OMS (Order management software)
c. DOM (Distributed order management)
d. POS (Point of sale)
e. ERP-CRM (Enterprise resource planning, client relationship management)
f. RFID (radio frequency ID)
g. Social media data

330. Retailer systems:


a. Retailers POS and e-commerce data management
b. Social and mobile initiatives
c. Real-time visibility across the entire supply chain
d. Retail site technology, handheld tablets and kiosks

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Technology Spending & Customer Service


The retail scene is constantly changing due to continual mergers, new store entry, foreign brands,
multi-channel selling, e-commerce, and so forth. Intense competition among retailers has increased
the awareness of the new and emerging retail technologies.
Technology budgets have grown year-on-year for over two decades and these investments have not
only reduced a great deal of human interaction, but has helped to create positive customer service
experiences.
By using efficient and original technologies retailers have more dependable in-store customer data to
create better- designed performance measures, customer research, and analytics. These technology
solutions help the retailer focus completely on their customers.

e-Commerce and Cross-channel Sales


The percentage of sales made at traditional retail sites will fall form 93% in 2012 to less that 65% in
2019; however retailers are forecasting an increase in store portfolios and the maintenance of present
store sizes.
Of course retailers have often miscalculated the future and history is littered with failed retail brands.
Thus either some retailers are unrealistic about the impact of e-commerce on their business and the
need to decrease their store numbers and space in the future; or the function of these stores will
change from simply a point-in-sale to something more complex and integrated into the multi-channel
supply chain.

Development of Cross-channel Sales


The growth in cross-channel sales will average 12-15% per year over the next few years,
outperforming both e-commerce growth and retail sales growth. This means that multi-channel
coordination is becoming more critical as part of retailers’ operational strategy.

Audit of Retail Operation by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel File: Part_K


331. Omni-channel selling plans
332. Merging with new shopping channels
333. Online competition strategy
334. Store footprint strategy
335. Total inventory levels

336. Dedicated pick-up space in-store


337. Front, back, or curb-side collection

338. Staffing capacity


339. Store layout
340. Orders processing and fulfilment

341. Retailer on-shelf stocks


342. Short turnaround re-stocking
343. Cost-effective order fulfilment
344. Store footprint and space efficiency

345. Order management system


346. Positioning of source inventory
347. Warehouse picking
348. Pack and ship tactics
349. Supplier shipping directly to store
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350. Inventory pooling


351. Safety stock levels
352. Stock space

353. Picking tactics


354. Labour intensity & costs
355. Order fulfilment strategies
356. Order fulfilment technologies
357. Optimisation of space
358. Handling Equipment Capital Costs

359. Picking carts systems


360. Batch picking
361. Picking technologies
362. Picking accuracy

363. “Put” systems


364. Cart batching
365. Racking, shelving & carousels
366. Automated storage and retrieval systems (AS/RS or sorters)
367. Sorter units

368. “Goods to operator” technologies


369. Operator work station
370. Horizontal or vertical carousels
371. Automated storage and retrieval machines (mini-load AS/RS)
372. Automated guided vehicles

Showrooming
Future retail strategies include the use of retail stores more as showrooms or giant catalogues for
consumers to feel and touch the product.
Traditional retailers were compromised when Amazon released a price-checking app that allowed
users to scan barcodes in rival stores and check for cheaper prices online. What this means is that
any retailer providing a ‘showroom’ may be doing so for the benefit of a third party online merchant.
Retailers have made enormous long-term capital investments creating distribution centres which
move crates and pallets to stores. Now however they must develop distribution networks capable of
getting single items to the customer’s door. Amazon is the leader in this field, using site selection,
automation and tax strategy to deliver pricing and delivery service that is challenging the traditional
retail traders. In the futuristic distribution centres of its subsidiary, Zappos, order picking is handled by
robots. The robots enable Amazon to turn off the lights and forget about air conditioning in a large
portion of its enabled distribution centres. It allows them to employ a fraction of workers in what was a
traditionally labour-intensive operation.
Amazon acquired the maker of these robots, Kiva Systems, and will likely automate a great deal more
of its operations in the future. In the meantime, Amazon continues to build distribution centres faster
than anyone else.
While most distribution centres do not have the robotic labour, they are still a blend of high technology
and a lot of manual labour. The 2,000 workers in Amazon’s 1-million-square-foot Chattanooga,
Tennessee facility are connected by about seven miles of fibre and 700 internet access points.
Amazon invested in a mezzanine level for this facility; and that will nearly double the floor space. With
so much investment and such specific facility requirements it is clear why Amazon has gone the build-
to-suit route. Between its two existing facilities in Tennessee, Amazon has spent over $140 million.
Due to the material handling needs, each centre processes a different type of goods. The
Chattanooga centre is set up to handle mostly smaller items, while the Cleveland, Tennessee site
handles large items like televisions. Amazon is adding two more sites in Tennessee for an additional
investment of $150 million.

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Audit of Retail Operation by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel File: Part_K


373. ‘Showrooming’ strategies
374. Unique products or “bundles” that are not for sale elsewhere
375. Co-operation with manufacturers to release products earlier than competitors
376. Price matching with online offerings
377. Build relationships with consumers
378. Boosting consumer loyalty
379. Encouraging product recommendations
380. Special deals for loyal consumers
381. Providing information
382. Providing exceptional service
383. Creating interactive environments for consumers

Of course it is not only Amazon investing in advanced automated materials handling and distribution
centres, retailers from all sectors have little alternative but to invest in such facilities in order to
compete in terms of both operating margins and customer service. These distribution centres also
demonstrate the trend towards larger facilities which allow economies of scale and operational time
efficiencies.

Audit of Retailer Factors by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel File: Part_K


384. Awareness in trends in technology
385. Awareness of consumer behaviour patterns

386. Operational speed improvements


387. Faster trends cycles
388. Faster merchandise transits

389. Handling volatility in commodity prices


390. Handling volatility in transportation costs
391. Handling volatility in input pricing
392. Handling volatility in swings in consumer behaviours

393. Handling current inventory levels


394. Handling upstream operations
395. Handling downstream operations

396. Handling consumer price sensitivity


397. Handling consumer demand and trend cycles
398. Handling consumer buying patterns

399. Expanding product offerings


400. Expanding social media initiatives
401. Expanding delivery flexibility

402. Management of logistics & movement of goods


403. Management of suppliers and producers
404. Management of wholesalers
405. Management of own distribution centres
406. Management of store stocks

407. Strategy for changing labour requirements


408. Strategy for changing raw material usage

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409. Strategy for changing transportation costs


410. Strategy for changing financial costs
411. Strategy for changing inventories levels
412. Strategy for changing merchandising systems
413. Strategy for changing information systems
414. Strategy for changing distribution systems

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Part L : Strategies

This data is available on a Corporate basis for Agrana Fruit

Retailers must fully analyse the strategy of retailing from each perspective of a strategic methodology
which has to plan for and adapt to a complex, changing environment. Both opportunities and threats
must be considered. By engaging in strategic retail management, the retailer is encouraged to study
competitors, suppliers, economic factors, consumer changes, marketplace trends, legal restrictions,
and other elements. A retailer prospers if its competitive strengths match the opportunities in the
environment, weaknesses are eliminated or minimised, and plans look to the future (as well as the
past).

Retailer strategy consists of many factors, including:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L


1. Building relationships
2. Ownership and store mix
3. E-commerce, non-store and non-traditional retailing formats
4. Consumer behaviour and information gathering
5. Store locations
6. Managing the business
7. Planning, handling, and pricing merchandise
8. Communicating with the customer
9. Integrating, analysing, and improving strategic planning
10. Trans-international retailing
11. Franchising

The point of sale is becoming increasingly important for two reasons. Firstly because the consumer
media environment is becoming more fragmented making it more difficult to reach shoppers with
traditional tactics; and secondly, because retailers are getting stronger, smarter and better at
marketing.
The power that used to rest almost entirely with the national brand marketers who used advertising to
direct people to the stores to demand their products is shifting to the retailer. The advertising industry
has taken its eye off the ball by not understanding the importance of distribution-channel management
and thereby the brand owners have suffered.
In turn, there is no doubt that the adage ‘change or die’ will define the retailing sectors in the
immediate future. Whether individual retailer die will depend on if they change.
The change is often simply the ability to provide a multichannel sales environment to one’s
customers.
It is not that physical retail sites are dead, physical locations allow shoppers to touch and feel
products. In certain retail sectors this is essential. Retail outlets have real people who can provide the
kind of personal advice and service that’s essential to certain product sales. These attributes can be
harnessed and used to provide consumers with a real shopping experience.
For retailers to address the challenges of the future they need to embrace their customers’
preferences and expectations.

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Expertise and Specialisation


Online retailers like Amazon have the consumer image of offering all things to all people, thereby
being a jack of all trades and master of none. This is especially true where advice and presentation
are a big part of the purchase experience.
Multichannel retailers can exploit this weakness on the part of pure online traders by making
themselves category experts offering service and advice, and positioning themselves as specialists.
By offering the best of their product sector, retailers can appear to be on the side of the customer by
giving sage advice and help. Retailers should be on the side of the customer and become their
advisors.
By providing expert publications, reviews and recommendations, being associated with trade experts
who can help customers, developing specialised supply of products, generating an environment which
engages customers and supplies expertise to help customers make informed choices, a retailer can
become differentiated. Stores can offer trained sales staff with expertise in their category. Retailers
can use video chat lines to provide customers with remote experts to answer questions on the spot.

Data Mining
The enormous availability of data allows retailers not only to identifying segments, but also to target
micro-segments based on patterns in individual consumers’ research and purchase behaviour. This
kind of analysis enables a stronger relationship with customers as the data specificity allows retailers
to cater to specific needs and wants.
This approach can help develop offers tailored to the individual and target underserved consumer
segments, with distinct marketing and product offerings. Some retailers have developed micro-sites
targeted at specific consumer segments.

Retail Store Evolution


As consumers use greater digital technology this should be used by retailers and become more
integrated with the shopping experience. Store retailers should re-invent the role played by their
stores by embracing the emerging innovations which are redefining what product knowledge and
convenience means to customers. This is more than just allowing customers to use physical stores to
pick up or return goods bought online; it is more about using the store as a service hub. By
developing the store facilities and space allocation across channels, and by altering the character and
atmosphere of a store, retailers could lead customers attitudes and behaviour patterns; and not just
struggle to react to and keep up with the customer.

Bespoke Service
While technology has allowed for more sophisticated targeting, it is important to remember that
consumers shop at stores for the Store Experience and contact with a real person.
Retailers offering personal shoppers across multiple channels can bring a valuable store experience
that is supported by just-in-time data. Some retailers enhance the bespoke service with a phone app
that identifies when customers enter the store and prompts staff to engage with the customer armed
with that customer’s purchase history and preferences.
An important part of making personal contact with customers is by creating familiar neighbourhood
connections. Various mobile apps offer local businesses innovative ways to use product offers that
encourage shoppers into their stores, and then keep them coming back with further offers, events and
promotions.

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Collaboration
Retailers need to find new partners and collaborators to get the capabilities, expertise, and access to
customer bases that they cannot easily develop on their own. Cross-retailer loyalty schemes help
create the same multi-category loyalty experience that Amazon has created through their Prime
offer. Retailers can look to promote products and services across the on- and offline worlds through
personal one-to-one marketing delivering email and text offers to mobile phones. This can be
triggered when the consumer is in the neighbourhood of one of the retailer’s stores.

Uniqueness
Brand images are becoming depreciated and consumers perceive even the prime brands as being
commonplace. This has led to a reduction in the price premiums previous expected by brand retailers.
Retailers need to develop unique products, with fresh brands and innovative presentation and
promotion. Exclusive lines of merchandise, private label offerings, and ‘celebrity endorsed collections’
help to differentiate one retailer from another.

Market Leadership
Store retailers can move into new, untapped markets where competitors do not have a foothold or do
not have an adequate product offering. Highly fragmented markets attract online suppliers, and here
there are opportunities to bring a lot of buyers and sellers together. The developing Asian and other
markets are extremely attractive in this respect.
Multichannel retailers need to perfect the digital shopping experience; customers increasingly demand
a trouble-free and effortless interaction with retailers. The ability of retailers to turn physical stores into
profit centres will determine if they are able to prosper or become another victim of the irresistible
digital revolution.

Audit of Retailer Strategy by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L


12. Expertise and Specialisation
13. Data Mining
14. Retail store evolution
15. Bespoke service
16. Collaboration
17. Uniqueness
18. Market leadership

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Part L.1 : Corporate Retail Strategies

Many retailers that expanded rapidly before the downturn did not have a worst case scenario market
strategy; and they are now suffering in the absence of a cogent business plan to carry them through
the bad times. Difficult trading conditions mean that it is a challenge to make any headway in an
aggressive and uncertain market place.
The challenge is to develop a strategy to fit the changing demands of the market.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


Key target demographics
1. Key customers bases served
2. Key competitors
3. Drivers of sales and margins
4. Retail offering
5. Multi-channel offerings
6. Cost base
7. Business plan effectiveness
8. Pricing strategy
9. Product buying channels

Challenging economic conditions are impacting on the retail sector across the world and underlying
problems need to be addressed.
Not only does rising inflation diminish discretionary spend, but spending patterns and product demand
is also evolving and retailers may not have the necessary resources to survive these changing
circumstances.
Retailers need to critically analyse their internal organisation to confirm that they have the basics:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


10. a clear strategy;
11. experienced retail business specialists in charge;
12. understand the key drivers for the business;
13. the right retail offering;
14. tested business model;
15. plans for future development.

Operating Strategies
Retailers that expanded when easy capital was available and the economy was growing are now
struggling because they neglected to develop a strategic business plan incorporating different
economic scenarios. Even those business managers who did plan for uncertainty may not have
incorporated all the variables and scenarios which have been experienced recently. Few managers
could have foreseen such a dramatic change in consumer purchasing behaviour, economic instability
and challenging market conditions.
Whilst there exists economic uncertain in many markets, and despite the fact that many businesses
have taken steps to ensure their survival, there is still ambiguity in profitability forecasts.
Understanding the underlying operational and market factors allow the development of a competitive
and sustainable strategy. Business plans and projections, investments decisions, and future
strategies are all made on the basis of a known customer demographic and fully understood
customers purchasing behaviours. When customer demographic, spending patterns, spending levels,
and product preferences change, then the consequences always impact on profitability. Knowing
which factors are controllable, and those which are not, is critical to survival.

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Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


16. Business planning
17. Research and understand customer base dynamics.
18. Evaluate competitors and competitive strategies.
19. Adapt to the evolving needs of customers.
20. Critically view pricing strategy.
21. Clarify and secure buying channels.
22. Ensure that managers are able to properly execute the business plan.

23. Cost efficiencies


24. Reducing costs,
25. Negotiating better input prices and supply sources,
26. Developing supply chain efficiencies,
27. Researching innovative products which cost less to produce,
28. Developing business models with variable scenarios,
29. Increasing margins.

30. Investment in cost reduction systems


31. Systems investments for cost and strategic growth initiatives
32. IT systems for customer relationship management
33. Enterprise resource planning software
34. Automated business intelligence and forecasting systems
35. Mobile payments
36. Cross-sector partnerships and alliances
37. Integrated IT systems

38. Market Pricing


39. Consumers’ pricing propensity research
40. Competitive pricing benchmarks
41. Input costs and scenarios
42. Inflation
43. Review of pricing strategy variables
44. Dynamic Product Pricing
45. Review of sustainability of discounted prices
46. Pricing baseline for consumers
47. Short, Medium, and Long term pricing strategies for product groups

48. Product Value Proposition


49. Consumers’ perceived product values
50. Value promotions effects on consumers
51. Level of value required by consumers
52. Short, Medium, and Long term product value strategies for product groups

Cash and Working Capital


The basis of most of the financial difficulties amongst retailers is the shortage of cash or refinancing
options. Retailers often did not sufficiently plan for lean times. Retail businesses often have
insufficient funds to invest in stock, refurbish stores or meet their store overheads.
There is evidence in many countries of a crisis in the cashflow of retailers.
For many retail sectors sales are highly seasonal; whether that is fashion or style based, holiday
based, Christmas, or depended on the weather. In each case the sales achieved at these peak
periods will dictate overall cashflow, margins, and the funds available for re-stocking and capital
investments for the entire year.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


53. Price Discounting & reduced gross margins
54. Seasonal / Peak sales success

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55. Current financial year sales


56. Input product prices
57. Re-stocking finances
58. Increased Variable Costs
59. Increased Fixed Costs
60. Capital Investment financing
61. Cash constraints
62. Availability of third party / lender capital investment
63. Availability of third party / lender working capital
64. Excess inventory position
65. Further potential price markdowns
66. Further potential reduced margins

Cash management
Optimising cash management is the key to retail management in the present economic conditions.
Maximising cash flow and working capital by strict budgeting and benchmarking should be the focus
for all managers. The maintenance of sufficient cash balances and the identification of unforeseen
calls on cash together with specific and timely plans for corrective actions must be a fundamental
goal.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


67. Visibility of financial situation
68. Cash management systems
69. Short and medium term cash flow forecasting processes
70. Identification of future cash calls
71. Tax planning & tax relief
72. Reduction of variable costs
73. Cash retention mechanisms
74. Working capital management
75. Systemised Cash Controls

Retailing Operations
Operational efficiencies, continual systems improvement, better customer service, exceeding
customer expectations, are the focus points for all retailers.

Evolving customer expectations


Customer expectations are continually evolving. With the increased use of mobile technology, online
transactions and contactless payment options retailers are able to harvest considerable costs
savings; however retailers need to adapt to enable transaction effectiveness and product deliver to
the customer. Sales should be improved by developing or enhancing multi-channel strategies.
Just as payment preferences amongst customers are changing, so too are their lifestyles, product
preferences and economic circumstances. Retailers much continually research their target customer
demographic and the overall market circumstances to have the data necessary to adjust product
offerings, merchandising, and service levels in order to maximise the appeal of their business.
Value engineering, product sizes, and product quality options help retailers both to maintain margins
and satisfy customer segments. The proper communication of such engineered product options to the
target customer demographic is essential to maintain the integrity of the business. Integrated
communications, promotional planning, and transparency help to maximise customer confidence.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


76. Payment options
77. Ease of purchase
78. Transaction speed
79. Product delivery

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80. Research collection


81. Product offerings
82. Merchandising & POS
83. Service levels
84. Value engineering
85. Product size variations
86. Product quality options
87. Integrated communications
88. Promotional planning
89. Transparency
90. Customer confidence

Financial Planning
Indirect taxation is frequently a retailer’s third largest burden on cashflow and as such, has a major
influence on the company's operation and financial performance. Retailers are now more able to use
multi-channel selling and distribution, and transfer pricing mechanisms, to optimise both cashflow and
retail prices. The use of distribution from lower cost sales or value added tax jurisdictions may provide
significant opportunities to improve margins and cash management.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


91. Use of multi-channel selling
92. Use of offshore distribution channels
93. Use of efficient price transfer mechanisms
94. Use of capital allowances and incentives
95. Tax incentives for fixed asset expenditures
96. Incentives for ‘green’ investments

Data management
Effective data management and its use as a vital resource can greatly assist retailers. In conjunction
with this is the absolute need for data security. Recent breaches in data security at high profile
retailers have highlighted the importance of adequate protection of customer data. The retail sector is
particularly vulnerable to cyber-attack, considering the huge amount of customer data held from
online shopping, loyalty schemes and other marketing incentives. Adverse publicity about stolen data
will damage reputations and potentially could damage sales revenues.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


97. CRM systems
98. Data security
99. Secure systems
100. Data leakage prevention

Supply chain efficiencies


Retailers are especially prone to inefficiencies in the supply chain and failures at any point can have a
significant impact on financial performance. The inability to move the right products to the right
locations at the right time can compromise retailers, damage customer relations and reduce margins.
Supplier relations and purchasing efficiencies:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


101. Logistic operations
102. Warehousing & distribution
103. Inventory control systems
104. Ethical sourcing
105. Sustainable procurement
106. Supply chain perspectives
107. Sustainability strategy

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108. Social responsibility in procurement


109. Supplier risk reviews
110. Project management capacity
111. Performance requirements

Controls
Many recent corporate failures were as a result of ineffective control on stock, cash and management
information. Know what is happening in the business on a day-to-day basis through the right
management information and act on it before it’s too late.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


112. Retail controls
113. Key retail indicators
114. Customer requirements
115. Customer preferences
116. Product offering adjustments
117. Stock selection
118. Selling space allocation
119. Cash controls of working capital
120. Debtor & Creditor days
121. Invoice discounting
122. Supplier & procurement alternatives
123. Contingency plans & systems

Stakeholder Management
A company’s strategic plans should include mechanisms to support, and in turn retain the support of,
key stakeholders; especially in tough economic times, when support from stakeholders, from
investors to creditors are critical. Ideally one maintains a dialogue with all the stakeholders, and the
more adept one is in this respect the more one is likely to succeed in the long term.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


124. Shareholders
125. Bankers
126. Landlords
127. Suppliers
128. Trade Creditors
129. Insurers
130. Financial services providers
131. Tax authorities
132. Regulators authorities
133. Employee relations
134. Public Relations
135. Customer communications

Value Preservation
Retailer financial health will range from intensive care in an effort to turn the business around, to
stable good health, to vigorous and expansive acquisition activity. However, whatever the health of
the company, the key driver will be the preservation of value.
The current economic circumstances have seen some failures and much stagnation which
encourages restructuring to decrease costs or increase margins. Albeit there are also a number of
retailers for whom this period will provide an opportunity to expand their business through M & A.

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For retailers in a precarious financial position one strategy is to consider finding shelter from the storm
through capital restructuring or creditor arrangements; and if that fails then a white knight take-over. In
these circumstances the preservation of any residual values becomes even more critical.

eCommerce & Multi-Channel Retail Strategy


Retailers must re-position themselves as Omni-channel or Multi-channel operations which offer
customers a compelling product, an excellent value proposition, the best service and ease of access.
This requires a variety of definite strategies:-

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.1


136. Optimal product assortment
137. Store by store inventory planning
138. Sale or return and returns policies
139. Consignment stock arrangements
140. Pricing strategy across channels
141. Online user experience
142. Multi-channel user experience
143. Cross-channels marketing plans
144. Support operations
145. Order fulfilment systems
146. Technologies to support these operations
147. Skills and organisational structure
148. Identification of inter-related business drivers
149. Simplification and merging of operational activities
150. Business case and financial plan to implement the strategies
151. Supplier terms
152. Identification of working capital cycles
153. Real-time data analysis to reduce the forecast cycle from monthly to daily
154. Real-time evaluation of action scenarios and outcome forecasting

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Part L.2 : Retail Marketing Strategy

Elements in Retail Strategy


Audit of Retailer Strategy by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.2


1. Target Markets
2. Customer Needs
3. Retail Formats
4. Method for Satisfying Needs
5. Bases for Building Sustainable Competitive Advantage
6. Defending Position Against Competitors
7. Methods for Segmenting Markets
8. Buying Situations
9. Benefits Sought by Customers
10. Customers Demographics
11. Customers Location & Geographic
12. Customers Lifestyle
13. Customers Psychographics

14. Develop a Sustainable Competitive Advantage:


15. Dropping the price of merchandise
16. Better store locations
17. Selling more popular merchandise
18. Increasing levels of advertising
19. Attracting & training better store personnel
20. Paying higher wages and incentives
21. Providing better customer service

22. Internal and External Bases for Competitive Advantage:


23. Sources of Capital
24. Vendors & Suppliers Terms
25. Retail Operation
26. Low Cost
27. Large Size
28. Efficient Distribution
29. Efficient Operations
30. Unique Knowledge
31. Loyal Employees
32. Customers Base Improvement
33. Creating Store Loyalty
34. Mental and Emotional Attachments to the Store brand

35. Elements in a Strong Brand:


36. Top of the Mind Awareness
37. Associations with Brand/Store Name
38. Methods Used to Develop a Strong Brand
39. Massive Exposure
40. Symbols to Reinforce Image
41. Consistent Positioning Creating Strong Associations
42. Limited Brand Extensions

43. Supplier Relationships:


44. Low Cost
45. Efficiency Through Coordination
46. Electronic Data Interchange (EDI)
47. Collaborative Planning and Forecasting to Reduce Inventory and Distribution Costs
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48. Exclusive Sale of Desirable Brands


49. Special Treatment
50. Early Delivery of New Styles
51. Shipment of Scare Merchandise

52. High Quality Customer Service:


53. Achievement goals
54. Employees are Not Machines
55. Consistent Personnel Policies
56. Retail Sales Personnel of good quality
57. Hiring Good People at Higher Wages
58. Continual Training programme
59. Organisational Culture

60. Growth Opportunities:


61. Market Penetration
62. Market Expansion
63. Retail Format Development
64. Diversification
65. Related vs. Unrelated markets

66. Retail Planning Process:


67. Defined business mission
68. Situation audit
69. Market attractiveness analysis
70. Competitor analysis
71. Self-analysis
72. Identification of strategic opportunities
73. Evaluation of strategic alternatives
74. Establishment of specific objectives and resources allocation
75. Evaluation of performance
76. Development of the retail mix to implement strategy

Elements in the Market Analysis


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.2
77. Market Factors:
78. Size
79. Growth
80. Seasonality
81. Business cycles

82. Competitive Factors:


83. Barriers to entry
84. Bargaining power of vendors
85. Competitive rivalry
86. Threat of superior new formats

87. Environmental Factors:


88. Technology
89. Economic
90. Regulatory
91. Social

92. Analysis of Strengths & Weaknesses:


93. Management capabilities
94. Financial resources
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95. Locations
96. Operations
97. Merchandise
98. Store Management
99. Customer loyalty
100. Five Forces:
101. Bargaining Power of Vendors
102. Barriers to Entry
103. Competitive Rivalry
104. Threat of Substitution
105. Large Customers

106. Using Market Attractiveness:


107. Competitive Position Matrix
108. Defined strategic opportunities
109. Identification of market attractiveness and competitive position factors
110. Assigned weightings based on importance of factors
111. Rated opportunities on market attractiveness and competitive position
112. Calculated scores and evaluate opportunities

113. Evaluation of Retail Market Opportunities:

114. Retailing Concept:


115. Customer Orientation
116. Value-drivers
117. Coordinated Effort
118. Goal-Oriented

119. Relationship Retailing:


120. Seek long-term relationships with customers
121. Focus on customer satisfaction over time
122. Satisfaction through meeting or exceeding customer expectations
123. Customer Equality
124. Customer Value
125. Core Customers identification

126. Retail Value Chain:


127. Bundle of benefits provide to consumers
128. Ambience
129. Quality of products
130. Brands offered
131. Discounts/good prices
132. Shipping
133. Convenient Location
134. Service

135. Strategic Planning Checklist:


136. Situational Analysis
137. Opportunities, threats, mission
138. Set Objectives
139. Sales, profits, image/positioning
140. Identify Target Market
141. Mass marketing -v- Concentrated -v- Differentiated
142. Aggregation -v- Segmentation
143. Identify Specific Tactics
144. Control Process/ Retail Audit System
145. Strategies and tactics are evaluated and revised
146. Feedback
147. Performance measures (turnover, sales, profits)

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148. Strategic Planning Factors


149. Develop Broad Strategy
150. Competition (Intratype –v- Intertype)
151. Sustainable competitive advantage

152. Sustainable Factors:


153. Price
154. Location
155. Vendor relations
156. MIS-technology
157. Low cost operations

158. Business Grow Factors:


159. Market Penetration
160. Present customers, same segment
161. Market Expansion
162. Existing format to new customers (new geographic area or demographic group)

163. Future Business Growth:


164. Retail Format Development
165. New format to existing customers
166. Diversification
167. New format to new segments

168. Institutional Change in Retailing


169. Wheel of Retailing
170. Accordion Theory
171. Dialectic Process
172. Natural Selection
173. Retail Life Cycle

174. Wheel of Retailing Strategy considerations:


175. New types of retailers enter a market as low-margin, low-price, low status merchants
176. These retailers gradually trade up which increases their operating costs
177. Retailers become high cost merchants and then are vulnerable to new competitors

178. Retail Accordion Theory Strategy considerations:


179. Broad-based outlets with wide assortment
180. More specialised with narrow assortment
181. Back to wide assortment

182. Dialectic Process Strategy considerations:


183. Retailers mutually adapt in the face of competition from “opposites”

184. When challenged by a competitor with a differential advantage, the established retailer will
adopt strategies and tactics in the direction of that advantage (making the innovator less
attractive)

185. Natural Selection and Adaptive Behaviour Strategy considerations:


186. Environmental need for a certain kind of retailing institutions which will evolve
187. Need ceases to exist and the institution will tend to disappear
188. Retailers that effectively adapt to environmental changes are most likely to survive

189. Retail Life Cycle Strategy considerations:


190. Introduction
191. Growth/ Accelerated Development
192. Maturity
193. Remodel stores

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194. Lower costs


195. MIS – technology
196. Lower prices
197. Re-evaluate operational practices and service
198. Value delivery
199. Decline

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Part L.3 : Strategic Planning in Retailing


Chapter 3
Even the largest retailer sometimes drops the ball and is left without a defined and well-integrated
strategy and is then left unable to cope with the marketplace.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


The retailer’s process of strategic retail planning:
1. Provide a thorough analysis of the requirements for doing business for different product and
market segments
2. Outline the retail goals
3. Determine how to differentiate itself from competitors and develop an offering that appeals
to each customer segment
4. Fully understand the legal, economic, and competitive environment
5. The retailer’s total efforts are coordinated
6. Crises are anticipated and avoided

Overview of Strategic Retail Management


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
7. Retailing objectives
8. Building and Sustaining the Retailing Relationships
9. Strategic Planning in Retailing

10. Situation Analysis:


a. Capital requirements
b. Store-Based Strategy Mix
c. Web, Non-store-based, and other forms of multi-channel trading

11. Targeting Customers and Information Gathering:


a. Identifying and Understanding Consumers
b. Information Gathering and Processing

12. Store Locations:


a. Trading Area Analysis
b. Site Selection

13. Managing the Business:


a. Organisation and Human Resource Management
b. Operations Management: Financial
c. Operations Management: Operational

14. Merchandise Management and Pricing:


a. Developing Merchandise Plans
b. Implementing Merchandise Plans
c. Financial Merchandise Management
d. Pricing

15. Communicating with the Customer


a. Establishing and Maintaining a Retail Image
b. Promotional Strategy

16. Integrating and Controlling the Retail Strategy


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Situation Analysis
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
Situation analysis is an honest evaluation of the opportunities and threats facing the retailer:
17. What is the firm’s current status?
18. In which direction should the retailer be heading?
a. Organisational mission
b. Ownership and financing
c. Management options
d. Goods / Service sold
19. Opportunities and marketplace openings
20. Market gaps retailers have not yet not capitalised on
21. Competitive threats
22. Adverse marketplace factors
23. Trend spotting
24. Customers satisfaction
25. Competitive advantages
26. Merchandising shifts
27. Store locations
28. Price points
29. Promotional strategy
30. Retailer image

Organisational Mission
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
The organisational mission is the retailer’s commitment to a type of business and to a distinctive role
in the marketplace.
31. Attitude toward consumers
32. Attitude toward employees
33. Attitude toward suppliers
34. Attitude toward competitors
35. Attitude toward regulations
36. Is the business based on the goods and services sold or consumer needs?
37. Is the retailer a market leader or a follower?
38. Does the retailer seek a broad customer or a narrower customer base?
39. Does the retailer change company goals as a reaction to a dynamic retail environment?
40. Does the retailer have good organisational skills?
a. Strong customer service
b. Popular products
c. Community involvement
d. Excellent retail locations
e. Excellent execution in delivering products
f. Consistent delivery of its value proposition

Ownership and Management Alternatives


An essential aspect of situation analysis is assessing ownership and management alternatives.
Ownership is crucial because it dictates both the existing financial structure of the retailer and the
future availability of capital funding and/or how capital investments can be funded.

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Management options range from the owner–manager to a complex arrangement of professional


managers. The size of the company can be irrelevant as is seen from many large multi-national
companies which are in fact controlled by one patriarchal figure who perceived himself as the Owner-
Manager, despite what the shareholders think.
Strategically, the management format also has a dramatic impact. With an owner–manager (actual or
perceived), planning tends to be less formal and more intuitive, and many tasks are reserved for that
person. With professional management, planning tends to be more formal and systematic. Yet,
professional managers are more constrained in their authority than is an owner–manager. In a
centralised structure, planning clout lies with top management or ownership; managers in individual
departments have major input into decisions with a decentralised structure.

Goods/Service Categories
The strategic plan is centred on the selection of goods/service categories, the lines of business, in
which the retailer operates.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


41. Type of business
42. Management abilities
43. Financial resources
44. Time constraints

Management Abilities
Management abilities depend on the aptitudes of the managers:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


45. Experience of the type of business
46. Potential to be effective
47. Education & formal qualifications
48. Retail practices and policies
49. Previous experience
50. Initiatives
51. Reaction to competitive developments
52. Customer interaction
53. Staff interaction
54. Supplier interaction

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Financial Resources
Adequate projection of the financial resources needed is essential to the retailer.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


55. Tendency to underestimate financial problems
56. Operational expenses controls
57. Profitability stages
58. Budget and expenditures controls
59. Miscalculations of costs of renovation or operation of existing facilities
60. Investment funding
61. Merchandise assortment funding & outlay
62. Inventory investment
63. Location & facilities investments

Time Constraints
Time constraints on managers differ significantly by goods or service category:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


64. Automation of operations
65. Outsourcing of activities
66. Managing time-pressed customers
67. Store opening hours & shift patterns
68. Seasonal market factors
69. Self-service
70. Standardisation of operations
71. Formalisation of financial controls
72. Key service providers’ time constraints
73. Delegating of work to back-office operations
74. Levels of personal services
75. Staff shortages due to costs
76. Cash controls
77. Off-hours activities
a. Cleaning
b. Stocking shelves
c. Financial reconciliation

Objectives
The situation analysis leads to how the retailer sets objectives for the long-term and short-terms
performance targets required.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


Such goals relate to:
78. Sales
79. Profit
80. Satisfaction of stakeholders
81. Image
82. Increasing comparable store sales
83. Gross margins
84. Return on investment
85. Earnings per share

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Sales
Sales objectives are related to the volume of goods and services a retailer sells and includes:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


86. Sales growth
87. Revenue stability
88. Market share

89. Short-term profits


90. Opening new units
91. Maintaining sales volume
92. Maintaining market share
93. Maintaining price lines
94. Market share by category sales

95. Discount sales strategies


96. Moderate price/units sales strategies
97. Prestige sales strategies
98. Price inflation

Profit
With profitability objectives the retailer will seek a minimum profit level during a designated period.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


99. Pre-tax profit
100. Return on investment
101. Operating margin

Satisfaction of Stakeholders
Retailers typically strive to satisfy their stakeholders: shareholders, customers, suppliers, employees,
and regulators.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


102. Shareholder satisfaction
a. Short-run
b. Long-run
c. Stable dividends

103. Customer satisfaction


a. Criticism
b. Adaption

104. Supplier relations


a. Favourable purchase terms
b. New products
c. Good return policies
d. Shipments
e. Cooperation

105. Labour relations


a. Absenteeism
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b. Treatment of customers
c. Staffing turnover

106. Regulatory relations

Image Positioning
Image positioning is how the retailer wished to, and possibly is, perceived by consumers and others.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


107. Innovative
108. Conservative
109. Radical
110. Specialised
111. Broad-based
112. Discount-oriented
113. Upscale

114. Image relative to retail category


115. Image relative to competitors
116. Image relative to product positioning
117. Image relative to positive consumer responses

118. Mass merchandising


a. Discount or value-oriented image
b. Wide and/or deep merchandise selection
c. Large store facilities
d. Low operating costs & stores
e. Economy outlets
f. Value-conscious shoppers
g. Popularity
h. Broad customer base
i. High customer traffic
j. High stock turnover

119. Retailers Niche in the market


a. Specific customer segments
b. Segmented market
c. High level of loyalty
d. Chosen demographic
e. Stress factors other than price
f. Better customer focus
g. Convergence of product lines

120. Category incursion / cross-channel


a. Muddled value proposition
b. Convenience
c. Positioning changes

121. Retail positioning map


a. Price and service
b. Product lines offered
c. Price -v- service
d. Product assortment & selection
e. Customer service

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Selection of Objectives
Clearly set goals and a strategy to achieve:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


122. Sales growth aspirations
123. Operating earnings per share
124. Capital expenditure goals
125. Market share requirement
126. Maintenance of supplier rating
127. Sales per square foot
128. Brands coverage
129. Flexibility
130. Adaption of goals
131. Competitive on price
132. Differentiation
133. Productivity
134. Management Focus

Checklist
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
135. Capital investment
136. Goodwill
137. Sales
138. Inventory levels
139. Profits
140. Customer base
141. Sales seasonality
142. Debts
143. Property
144. Storefronts
145. Store fixtures
146. Merchandise assortment
147. Advertising policy
148. Customer service policy
149. Pricing policy
150. Units & locations
151. Trading area overlaps of stores

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Identification of Consumer Characteristics


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3

The retailer’s target market:


152. Mass marketing, selling goods and services to a broad spectrum of consumers
153. Concentrated marketing, zeroing in on one specific group
154. Differentiated marketing, aiming at two or more distinct consumer groups, with different
retailing approaches for each group

155. Define target markets


156. Wide assortment of medium-quality items at popular prices
157. Narrow, deep product assortment at above-average prices
158. Multiple market segments
159. Unique goods and services for each market segment

Competitive advantages and strategy mix:


160. Competencies of the retailer relative to competitors
161. Consumers target advantages
162. Store locations
163. Product quality
164. Advertising
165. Customer services
166. Product prices
167. Brands
168. Consumer behaviour

Overall Strategy
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
This involves two components:
169. controllable variables (the aspects of business the retailer can directly affect)
170. uncontrollable variables (those to which the retailer must adapt)

Controllable Variables
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
171. Store location
172. Managing the business
173. Merchandise management
174. Pricing
175. Communicating with the customer

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Store Location
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
176. Store location decisions
177. Store and/or non-store format
178. Competitor locations
179. Transportation access
180. Population density
181. Type of neighbourhood
182. Nearness to suppliers
183. Pedestrian traffic
184. Store composition

Managing the Business


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
185. Retail organisation
186. Human resource management
187. Operations management
188. Task management
189. Defined policies
190. Resources management
191. Authority delegation
192. Managers’ responsibility
193. Managers’ rewards
194. Employee hiring
195. Employee training
196. Employee compensation
197. Employee supervision
198. Human resource management techniques
199. Job functions
200. Employee responsibility
201. Chain of command
202. Satisfaction of customers
203. Satisfaction of employees
204. Fulfilment of management goals
205. Asset management
206. Budgeting
207. Resource allocation
208. Store format and sizes
209. Store personnel use
210. Store maintenance
211. Energy management
212. Store security
213. Insurance
214. Credit management
215. Computerisation
216. Crisis management

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Merchandise Management and Pricing


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
217. Quality of the goods and services offered
218. Width of assortment
219. Product categories carried
220. Depth of assortment
221. Variety of products carried in any category
222. Buying decisions
223. Buying frequency
224. Buying terms
225. Suppliers
226. Purchase forecasting
227. Purchase budgeting
228. Accounting procedures
229. Inventory by type of merchandise
230. Assess of items sold and left in stock
231. Range of prices
232. Prices within each product category
233. Markdowns planning

Communicating with the Customer


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
234. Image creation
235. Image maintenance
236. Influence on consumer perceptions
237. Storefront
238. Store layouts and displays, floor colours, lighting, scents, music
239. Store sales personnel
240. Community relations
241. Advertising campaigns
242. Personal selling
243. Sales promotion
244. Publicity campaigns

Uncontrollable Variables
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
245. Consumers
246. Competition
247. Technology
248. Economic conditions
249. Seasonality
250. Legal restrictions

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Consumers
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
251. Demographic trends
252. Lifestyle patterns
253. Tastes
254. Consumer trends and desires
255. Price range of customer purchases

Competition
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
256. Entry of competitors
257. New or established competitors
258. Competitors’ target markets
259. Competitors’ merchandising focus
260. Competitive edge

Technology
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
261. Computer systems
262. Inventory control
263. Checkout operations.
264. Warehouse
265. Transport of merchandise
266. Consumer ordering
267. Online activities

Economic Conditions
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
268. Unemployment
269. Interest rates
270. Inflation
271. Tax levels
272. Annual gross domestic product (GDP) growth
273. Economic factors
274. International economic factors
275. National economic factors
276. Provincial & local economic factors

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Seasonality
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
277. Seasonality
278. Weather
279. Cycle of demand

Legal Restrictions
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280. Statutory laws and regulations
281. Competition laws
282. Fair trading practices
283. Zoning laws
284. Blue laws which limit the times during which retailers can conduct business
285. Construction codes
286. Consumer restrictions
287. Licensing
288. City / town jurisdictions

Integrating Overall Strategy


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
289. Coordinated approach
290. Consistent approach
291. Integrated strategy
292. Systematically appraisal of uncontrollable variables

Legal Constraints on Retailers


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
293. Store locations and Zoning laws
294. Blue laws restrict the days and hours during which retailers may operate.
295. Environmental laws limit the retail uses of certain sites.
296. Door-to-door (direct) selling laws protect consumer privacy.
297. Local ordinances involve fire, smoking, outside lighting, capacity, and other rules.
298. Leases and mortgages require parties to abide by stipulations in tenancy documents.
299. Managing the Licensing provisions mandate minimum education and/or experience for
certain personnel.
300. Business Personnel laws involve non-discriminatory hiring, promoting, and firing of
employees.
301. Antitrust laws limit large firm mergers and expansion.
302. Franchise agreements require parties to abide by various legal provisions.

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303. Business taxes include real-estate and income taxes.


304. Recycling laws mandate that retailers participate in the recycling process for various
materials.
305. Merchandise Trademarks provide retailers with exclusive rights to the brand names they
develop.
306. Management and Merchandise restrictions forbid some retailers from selling specified
goods or services.
307. Pricing Product liability laws allow retailers to be sued if they sell defective products.
308. Lemon laws specify consumer rights if products, such as autos, require continuing repairs.
309. Sales taxes are required in most provinces or territories, although tax-free days have been
introduced in some locales to encourage consumer shopping.
310. Unit-pricing laws require price per unit to be displayed (most often applied to
supermarkets).
311. Collusion laws prohibit retailers from discussing selling prices with competitors.
312. Sale prices must be a reduction from the retailer’s normal selling prices.
313. Price discrimination laws prohibit suppliers from offering unjustified discounts to large
retailers that are unavailable to smaller ones.
314. Communicating Truth-in-advertising and -selling laws require retailers to be honest and not
omit key facts.
315. Customer Truth-in-credit laws require that shoppers be informed of all credit terms.
316. Telemarketing laws protect the privacy and rights of consumers regarding telephone sales.
317. Bait-and-switch laws make it illegal to lure shoppers into a store to buy low-priced items
and then to aggressively try to switch them to higher-priced ones.
318. Inventory laws mandate that retailers must have sufficient stock when running sales.
319. Labelling laws require merchandise to be correctly labelled and displayed.
320. Cooling-off laws let customers cancel completed orders.

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Tactical Decisions
Tactical or Short-run decisions for each controllable part of the strategy:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3


321. Store locations and trading-area analysis which gauges the area from which
customers are drawn.
322. Level of saturation in a trading area.
323. Optimised relationships with nearby retailers.
324. Positioning of new outlets.
325. Clear chain of command from managers to store workers.
326. Organisation structure on how personnel are hired, trained, and supervised.
327. Asset management which track assets and liabilities.
328. Budget spending controls.
329. Operations systemisation.
330. Merchandise management and pricing:
331. Assortments and space allocations in each department.
332. Innovative new merchandise.
333. Liquidation of slow-moving items.
334. Purchase terms negotiated and suppliers appointed.
335. Selling prices reflecting the firm’s image and target market.
336. Prices offer consumers choice.
337. Adaptive actions to respond to higher supplier prices and react to competitors’ prices.
338. Communicating with the customer:
339. Storefront and display windows.
340. Store layout and merchandise displays.
341. Gaining consumer enthusiasm
342. Looking fresh and modern.
343. New products.
344. React to changing seasons.
345. Advertising placed during the proper time and in the proper media.
346. Deployment of sales personnel varied by merchandise category and season.

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Controls
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
347. Systematic process for analysing the performance of the retailer.
348. Retail audits
349. Strengths and weaknesses revealed as performance is reviewed.
350. Identification of profit drivers.
351. Identification of profit problems.

Feedback
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.3
352. Management receives systematic feedback
353. Positive feedback on sales low employee turnover.
354. Negative on falling sales and high employee turnover.

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Part L.4 : Recession Strategy

Whatever politicians might say about the economic climate, and whatever their prognosis is for the
future, the fact is that economic conditions have radically changed in recent years, and are forecast to
remain difficult for retailers in the immediate future.
Recent retail bankruptcies, store closings, and increasingly vacant retail space is all too evident in
many countries.
The retail is one of the largest commercial sectors in all countries the effects of a retail downturn
ripples throughout the national economies of all countries. Consumer spending also accounts for 50
to 65% of most national economies and this is the key indicator of the state of a national economy.

Economic Conditions
The current economic conditions are not encouraging to retailers. It is normal in bad economic times
that the small retailers suffer, usually disproportionately, however there is also evidence that the
largest of retailer group are also suffering.
The factors which are effecting the economy also include rising commodity prices, rising product
prices, lower disposable incomes, lower savings rates, declining consumer spending, a housing
slowdown, and rising unemployment. All of these indicators guarantee that the period of strong retail
expansion and increasing profit margins and over for the foreseeable future. Retail is of course the
final link in the supply chain and as demand weakens the effects will ripple through the supply chain,
the logistic providers, and the manufacturing base.
The impact on manufacturing, distribution, and employment in other industries may endure for far
longer than the events that actually triggered the economic decline. As economic forces slow or stop
altogether, retail demand further weakens thus exacerbating the decline. In the end, the retail industry
as a whole is severely affected and here the losers will outnumber the winners.
Forecasts for retail are negative and it is probable that the retail sectors will not even meet the
lowered expectations of recent government forecasts.
Retailers will have to change their business planning and business models to survive in the long term.

Consumption Smoothing & Product Substitution


The basic economic concept of consumption smoothing can help understanding of how the retail
situation has developed and what can be expected next. Consumption smoothing refers to the
consumer’s preference to maintain a certain standard of living over time. Consumption Smoothing
also means consumers will use savings as a tool to compensate when incomes are low, or save more
when incomes are high, thus “smoothing” their consumption patterns. This does not mean that
spending will not increase or decrease as incomes levels change, but rather that the peaks and
troughs will be less pronounced.
The theory suggests that people will not match income reduction with an equivalent amount of
expenditure reduction, and vice versa. Instead they will mitigate income reductions by turning to credit
in bad times and by the same token they will not spend all their income in good times by turning to
savings products. Evidence of this trend can be found in the proliferation of credit cards and their
increased use in rough economic patches.
In that a certain amount of consumer consumption is fixed and does not vary with income, shortages
are made up by the liquidation of savings or increasing debt to maintain the habitual standard of
living. Financing personal consumption when income is decreasing comes down to a choice between
debt and equity, and most recently with the historic rise in housing values saw this framework altered.
As housing prices inflated, individuals had more paper wealth, and this triggered spending increases
by using the paper wealth as a real stream of income.

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Consumers felt wealthier and they spent more, thereby fuelling the expansion of consumption, which
in turn simultaneous stimulated the growth and inflation in the housing market. At the start of the
demand growth stage, consumers paid off credit card debt accumulated in the previous periods by
refinancing their homes. Unfortunately, real incomes did not rising during this period and many
consumers smoothed their new “wealthier” consumption levels with more credit card debt. Many
households refinanced their homes more than once during this expansion, only to be faced with the
reality of the situation when home prices did cannot continue to increase at the same rate and the
equity in the home did not have the same liquidity as traditional savings.
Consumers are not at a stage where they have liquidated much of their savings, and are unable to
obtain credit, and therefore must sustain a lower level of spending and accept a reduced standard of
living. This response to economic times entrenches the downturn, and increases its duration.
Whereas Consumption Smoothing explains the fundamental choices behind savings and spending for
the consumer, it does not explain their specific spending decisions. During a recession, the typical
consumer is forced to make difficult decisions and economic trade-offs. In terms of consumption these
choices are often manifested as substitution between goods.
When budgets are constrained, the typical consumer will substitute down or choose inferior products.
Consumers will replace an expensive branded food item with a less expensive or own-brand food
item.
This trading down is a type of consumption smoothing allowing the consumer to get the same level of
consumption but at a lesser quality per unit. This theory of product substitution holds when there are
inferior products to trade down to and they are reasonably product substitutes for the more expensive
product. This process is frequently seen is the consumer’s choice of where to shop. While most
retailers are experiencing sales declines, discount retailers are thriving as people trade down from
expensive specialty and department stores to shop at discount and wholesale stores. These trends
have great impacts on a retailer’s strategy to survive a recession or downturn.

Managing Inventories & Costs


Profit maximisation at any given inventory level is a challenge in the best of economic times, during a
recession it becomes both more critical to success, and much more difficult. For small retailers and
independent stores this task is increasingly complicated due to payment terms and minimum order
sizes. It is necessary to reduce inventories for most retail establishments particularly those specialty
items which are not sold in any large numbers. Reducing existing inventory is typically done via store
sales and promotions which allow the retailers to convert some of their existing assets into cash.
Converting inventory to cash is an important first step; however, most retailers cannot sustain
themselves through a recession on existing inventories and therefore must place orders for new
inventory under a great deal of uncertainty.
Reductions in demand for new inventory sends ripples throughout the supply chain and this coupled
with high fuel prices results in larger minimum order sizes and less favourable terms for delayed
payment. The most prudent retail strategy under these circumstances is to order the minimum
necessary to sustain existing demand. This is a difficult balancing act as no retailer wants to take the
chance of being out of a mainstay item and losing a shopper to a competitive retailer. One strategy is
to have ample supply of items that sell daily or frequently, typically these are the items that get people
into the store. Another strategy is to vary selection, offering less high end items and more inexpensive
to moderately priced items for budget conscious consumers.
When inventories are limited care must be taken in the appearance of the store as sparse stocks can
convey a negative impression to customers. A well-stocked store implies quality and a successful
retailer and encourages better customer relations. When inventory is limited retailers need to convey
the same message of abundance and quality to consumers using reduced stocks; and this means
they must change the appearance of the store display areas. A redesign of the store layout can be
done inexpensively and with great results and impact. Optimal merchandising and use of space is one
cost-effective method which retailers have to counter tough times.
Suppliers facing their own constraints and recognising retailers need to pull back on inventory
spending will offer deep discounts to retailers who place large orders or pay their invoice quickly. For

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the majority of small and independent retailers these “deals” are not a good investment and can
exacerbate the effects of the downturn. The discounts are intuitively appealing to retailers; however
inventory is only as useful to a retailer as its ability to be converted to cash quickly. Even with a heavy
discount, on infrequently sold items there is little or no profit in the sale.
Retailers, big and small, must put their liquidity ahead of considerations such as profits and mark-ups
per unit. Often retailers are hesitant to liquidate or reduce inventory at a loss per unit in tough times
and therefore feel a cash-flow crunch. With no cash safety net or reserves, any additional shock to
their demand can make fundamental business expense payments difficult to maintain. During a
recession, many retailers are bankrupted for cashflow and liquidity reasons.
Many retailers were unprofessional and did not anticipate the downturn; many then compounded this
by underestimating its severity and duration. This demonstrated inadequate management and bad
business planning. These retailers were not realistic about their sales prospects and did not make the
difficult planning decisions necessary.
Retailers needed to analyze the inventory for the essential items and then actively reduce the stock of
non-essential items. Retailers needed to set limits for ordering new inventory and then produce firm
plans for on-going management, presentation and marketing of the inventory they had. The
successful retailers retained as many months of cash reserves as possible that would be sufficient to
cover basic expenses such as rent, utilities, and wages.

Audit of Retailer Economic Strategy by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.4


1. Order size reductions
2. Supplier payment terms negotiated
3. Minimum order sizes negotiated
4. Company de-stocking
5. Store inventory reduction
6. Store sales & promotions

7. Product selection adjustments


8. Concentration on key product offerings
9. Product price point adjustments
10. Product price range adjustments

11. Store stock reductions


12. Store display redesigns
13. Store space re-allocations

14. Liquidity maintenance


15. Cash reserves
16. Cashflow maintenance

17. Assessment of business planning


18. Ability to predict economic conditions
19. Ability to forecast sales revenues

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Rising Costs & Raising Prices


Retailers in all sectors are experiencing rapidly rising operational costs and inventory prices. The
interaction of inflationary price increases at a time of recession and reduced sales makes it difficult for
retailers to make the compensatory product price rises for fear of losing even more revenue.
Product price increases cannot be passed on to consumers at a time when they are dramatically
cutting back on spending.
In a downturn retailers may be content to maintain their previous levels of income or profit; however
they do not want to make a loss. Thus the temptation is to raise product prices, if not immediately,
then immediately that there are signs of an up-turn in the economy. What many retailers fail to fully
appreciate are the effects of Consumption Smoothing, Demand Lag and Price Elasticity.
The demand formula in the perfect market states that an equilibrium product price is achieved when
supply meets demand. The price range achieved would ideally include a healthy mark-up for the
retailer. However when product prices become detached from normal demand then consumption
collapses.
Retailers need to very specifically monitor the Price Elasticity for each product group. Certain product
groups, such as basic foodstuffs, fuel, basic clothing, et cetera are price inelastic and retailers may
increase prices within an elasticity range. Many specialist and discretionary products however can be
price elastic, often in an irrational way which reflects consumer psychology more than marginal
propensity to consume. In addition products which have substitutes also tend to be price elastic as
price increases can be readily countered by the consumer through product substitution.
Thus for speciality retailers understanding the nature of demand for a product enhances their ability to
pitch a product price at the optimum level. Pricing products based on their elasticity, and likely product
substitution, is an essential retail tool during times of economic difficulty.
Without knowing how long input prices will be affected it is difficult for many retailers to incur the
additional expense to raise prices. This transaction cost theory is less applicable when input prices
are rising due to long term economic trends and less in response to price shocks. However, the
theory does point to an interesting dilemma for some retailers as it is more costly for them to raise
prices due to operational costs which then compounding the problem because the product is elastic
and the fall in demand costs as much as the operational costs incurred. When the economy moves
into a recession, consumers cut back on discretionary purchases and tend to look for product
substitutes to compensate them. Retailers can themselves hedge their bets by offering consumers a
choice of a high price product of a known value or a lower price substitute product; which in fact the
consumer will assume is a lower value product. Consumers know that prices are rising and they
know that retailers have to in turn raise their prices; if a retailer can offer the consumer an appropriate
option then the consumer is likely to remain loyal to that store.

Staff Costs
Audit of Retailer Economic Strategy by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.4


20. Total staff remuneration
21. Levels of employment
22. Overall labour costs
23. Staff lay offs
24. Full time staff
25. Part time staff
26. Full to part time staff transition
27. Employees per shift
28. Reduced store hours

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Checklist
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.4
29. Excessive inventory financing
30. Profitable inventory
31. Unproductive inventory
32. Supplier Debt levels

33. Lower product price substitutes

34. Sales and promotions to liquidate unproductive inventory

35. Maintenance of sales levels


36. Maintenance of customer numbers

37. Price increases


38. Price decreases
39. Price elasticity

40. Inventory control


41. Stock levels

42. Retail layout redesign & reallocation


43. Retail space reduction

44. Strategic contingency plans

45. Customer dialogue mechanisms


46. Customer continuity
47. Customer loyalty programmes
48. Best prices policy
49. Best environment and service
50. Customer convenience, deliveries, opening hours

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Part L.5 : Strategic Planning in a Global Retail Context

The strategic planning challenge for both medium scale and large retailers is clear and increasingly
global. Global retail strategy must consist of several factors:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5


1. The retailer must offer a competitively superior product as defined by local consumers.
2. The retailer must develop superior economics across the value chain that delivers the
product to the local consumer.
3. The retailer must execute in the local environment.

Planning Process and Global Retailing


Retailers looking to operate globally must consider:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5


4. Assess the international potential
5. Focussing on assessing international potential
6. Getting data on the trends in the retail sector
7. The retailer’s domestic position in that retail sector
8. Effects that international activity may have on current operations
9. Status of in-house resources
10. Estimate of sales potential
11. Research & market intelligence.
12. Fundamental cultural considerations
13. Local partnering
14. Resource allocation

15. Expert and professional advice and research:


a. Government assistance for export credits
b. Government agency assistance

16. Selection of target countries:


a. Economic strength
b. Political stability
c. Regulatory environment
d. Tax policy
e. Infrastructure development
f. Population size
g. Cultural factors
h. Government regulations
i. Technological stage of the country

17. Development and implement of the international retailing strategy:


a. Strategy identifies and manages objectives
b. Specification of tactics
c. Schedules of activities and deadlines
d. Allocation of resources
e. Sales offerings to be sold
f. Competitors’ strength
g. Conditions in target countries

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h. Key marketing factors


i. Exploitation of unique local conditions and circumstances
j. Local competition

Opportunities and Threats in Global Retailing

Opportunities
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5
18. Foreign markets used to supplement domestic sales.
19. Foreign markets represent good growth opportunities when domestic markets are saturated
or stagnant.
20. The retailer is able to offer goods, services, or technology not yet available in foreign
markets.
21. Competition is less in foreign markets.
22. Tax or investment advantages in foreign markets.
23. Government and economic shifts allow entry to foreign firms.
24. Communications is easier. Online activities enable the retailer to reach customers and
suppliers outside the domestic markets.

Threats
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5
25. Cultural differences between domestic and foreign markets.
26. Management styles not easily adaptable.
27. Foreign governments place restrictions on some operations.
28. Personal income poorly distributed among consumers in foreign markets.
29. Distribution systems and technology inadequate.
30. Institutional formats vary too greatly.
31. Currencies and exchange rate problems.

Standardisation
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5
32. Application of domestic strategies directly to the foreign markets
33. Standardisation of personnel systems
34. Standardisation of physical facilities
35. Standardisation of operations
36. Standardisation of advertising messages
37. Standardisation of product lines
38. Standardisation of factors to be adapted to local conditions and needs

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Factors Affecting Global Retailing Strategy


Factors which affect the international retailing strategy:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5


39. Timing:
a. First to the market
b. Wrong-foot competitors with innovative products or systems
40. Balanced international program:
a. National market selection
41. Growing middle class:
b. Expandable income
c. Propensity to consumer new product offerings
42. Matching concept to market:
a. Developed markets
b. Quality offering
c. Style & fashion
d. Specialty operations
e. Developing markets
f. Discount / combination merchandise
g. Price
h. Assortment
i. Value
j. Convenience

Developed Markets
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5
43. Issues:
a. Increasing competition, deteriorating margins, and saturation
b. Consolidation and rationalisation (cost cutting), forcing poor performers out of the
market
c. New enabling technologies
d. Demanding customers
e. Limited growth
44. Implications:
a. Retailers must focus on maximising operational efficiencies, vendor relationships,
infrastructure, and technology
b. For growth, large retailers are expanding regionally and then globally into developed
or developing markets

Developing Markets
Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_L.5
45. Issues:
a. Minimal purchasing power per capita, yet strong economic growth, pent-up demand
b. Huge customer base, representing up to 70% of the world’s population
c. Infrastructure issues, transportation, communication, etc., may pose problems
d. Disorganised, fragmented retail structures that are vulnerable to new entrants
e. The number of indigenous large retailers is small to none
f. Strong protectionist measures may exist
46. Implications:
a. Tremendous opportunity for large retailers, limited competition, huge growth potential
b. Initial entry may need to be through intermediary, joint venture, etc.

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Market Entry Decisions


47. Solo - joint ventures - franchisees
48. Store locations and facilities
49. Product selection
50. Service levels
51. Marketing support costs
52. Advertising to sales ratios
53. Retail space footage per capita
54. Brand image
55. Cluster strategies
56. Critical mass considerations
57. Specialist skills
58. Specialisations

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Part M.1 : Retailing Characteristics

This data is available on a Corporate basis for Agrana Fruit

Three factors in retailing are of particular relevance to businesses and each factor imposes unique
requirements on retailers.

Average Value of Sales Transaction


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1
The average value of sales transaction per shopping trip is substantially less than US$100 for
department stores, specialty stores, and supermarkets. This modest level of income per customer visit
creates a need:
1. To tightly control the costs associated with each transaction (for example, payment card
costs, sales personnel, bagging, et cetera)
2. To maximise the number of customers drawn to the retailer
3. To ensure marketing expenditure is effective
4. To ensure that sales are augmented through promotions
5. To increase impulse sales by more aggressive selling
6. To keep operational costs in control
7. To automated and systemise inventory management
8. To ensure proper in-stock levels
9. To ensure proper product selection
10. To computerised inventory systems, stock control and stock ordering

Unplanned or Impulse Purchases


A large percentage of consumers do not look at advertising before shopping trips, do not prepare
shopping lists (or they deviate from the lists once in stores), and make fully unplanned purchases.
Such consumer behaviour shows the value of in-store displays, attractive store layouts, and well-
organised stores, catalogues, and web sites.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


11. Positioning of impulse products
12. Visibility of impulse products
13. Merchandise management of high-traffic areas
14. Stock control of impulse products

Retail Store Experience


Notwithstanding the inroads made by non-store retailers, most retail transactions are still conducted in
stores. Many consumers like to shop in person, they want to touch, smell, and/or try on products; they
like to browse for unplanned purchases; they feel more comfortable taking a purchase home with
them than waiting for a delivery; and they desire privacy while at home.
This store-based shopping orientation has implications for retailers; they must work to attract
shoppers to their stores and consider such factors as store locations, transportation, store hours,
proximity of competitors, product selection, parking, and advertising.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


15. Events and promotions to promote products

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16. Shopper interaction planning with products


17. Sales staff availability to sell discretionary products

Application of Retail Strategies


The application of a retail strategy provides the retailer with an overall plan which guides the retail
operation. It is designed to influence company’s business activities and its responses to market
forces, such as competition and the economy. All retailers, regardless of size or type, produce a
specific retail strategy which would include the following:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


18. Definition of the type of business in terms of the goods or service categories and the specific
company orientation (such as full service or “no frills”).
19. Setting long-term and short- term objectives for sales & profit, market share, image, et cetera.
20. Determination of the customer sectors to target on the basis of their characteristics (such as
gender and income level) and needs (such as product and brand preferences).
21. An overall, long- term plan that gives general direction to the company and its employees.
22. Implementation of an integrated strategy that combines such factors as store locations,
product assortment, pricing, and advertising and displays to achieve objectives.
23. Evaluation of performance on scheduled basic.
24. Formalised mechanisms to correct weaknesses or problems when identified.

Audit of Retailer Strategies by Expert Appraisal:


25. Growth-oriented objectives
26. Use of cashflow generated to grow the business

27. Appeal to prime markets

28. Multi-format
29. Diversity of the customer base
30. Diversity and range of retail formats
31. Distinctive image

32. Retail Focus

33. Strong customer service and overall execution


34. Execution of the value proposition

35. Employee relations.

36. Innovation
37. Innovative products and services
38. Controlled labels
39. Speciality products
40. Sub-brands
41. In-store or on-site subsidiary products & services

42. Commitment to technology


43. Technology planning
44. Distribution channel technologies
45. Loyalty programs
46. Financial operations
47. Data mining

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48. Community involvement

49. Constant performance monitoring


50. Performance indicators
51. Key financial metrics
52. Sales growth
53. Earnings per share
54. Debt to equity
55. ROI (return on investment)
56. Market share
57. Development of new control label products
58. Operating and administrative cost management

Application of Retail Concepts


Retailers, especially those with a large footprint, have to ensure a corporate culture to ensure a
vigorous and enforceable corporate culture which is customer focussed. This means an
institutionalised approach to strategy development and implementation which is value-driven and has
defined goals.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


59. Customer orientation which determines the attributes and needs of customers and
endeavours to satisfy these needs to the fullest.
60. Coordinated effort which integrates all plans and activities to maximise efficiency.
61. Value-driven focus which offers good value to customers, whether it be upscale or discount.
This means having prices appropriate for the level of products and customer service.
62. Goal orientation which sets goals and then uses its strategy to attain them:
a. Clear concept of customer needs
b. Precise planning
c. Prices that reflect the value offered
d. Feedback from customers
e. Communicating with shoppers
f. Placing shoppers desires at the heart of the company’s success
g. Consistent strategies (brands, plentiful sales personnel, attractive displays, and
above-average prices for a quality service)
h. Offering prices perceived as “fair” and good value for the money
i. Development of the total retail experience
j. Development of customer service
k. Development of relationship retailing

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Total Retail Experience


Irrespective of how consumers may shop, at a discount retailer, at a convenience store, or at a full-
service firm, all these diverse customers have something crucial in common: each encounters a total
retail experience (everything from parking to the checkout counter) in making a purchase.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


The ideal retail store characteristics are:
63. Appearance
64. Cleanliness
65. Convenience
66. Store ambience
67. Relaxed and comfortable
68. Good place to spend time and browse
The total retail experience includes all the elements in a retail offering that encourage or inhibit
consumers during their contact with a retailer. Many elements (for example, number of salespeople,
displays, prices, brands, and stocks) are controllable by a retailer; whereas other elements (for
example, adequacy of on-street parking and sales taxes) are not. If some part of the total retail
experience is unsatisfactory, consumers may not make a purchase, they may even decide not to
patronise a retailer again.
In planning strategy, the retailer must ensure that all strategic elements are in place for each of the
consumer segments they are targeting; with a total retail experience aimed at fulfilling each segment’s
expectations.

Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the basic goods and services it sells. It has a strong impact on the total
retail experience. Among the factors composing a customer service strategy are store hours, parking,
shopper-friendliness of the store layout, credit acceptance, salespeople, such amenities as gift
wrapping, rest rooms, employee politeness, delivery policies, the time shoppers spend in checkout
lines, customer follow-up, and so forth.
Satisfaction with customer service is affected by expectations (based on the type of retailer) and past
experience, and shopper’s assessment of customer service depends on their perceptions, not
necessarily reality. Different people may evaluate the same service quite differently.
The same person may even rate a retailer’s customer service differently at a different time, or in a
different location, because of its intangibility, though the service stays constant. Service varies widely
from one retailer to the next, and from one shopping channel to the next. The challenge for retailers is
to ask shoppers what they expect in the way of service, listen to what they say, and then make every
attempt to satisfy them.
Unfortunately, the customer is not always right. Just as retailers know they can never underestimate
the taste or intelligence of their customers, so too they can never overestimate the propensity of some
of their customers to engage in sharp practice. Of course, just as hotels cost into their pricing the fact
that some of their customers will steal the towels, so too those retailers whom offer a liberal refund
policy cost into their pricing the returns. Whereas in good times retail purchase return may be 4-6%, in
bad times this increases to 5-8%; and this has an even greater impact because retailers are already
suffering from a reduction in sales, margins and profits.
Clearly retailers must think very seriously about the balance of good customer service and excessive
pandering to customers.

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Relationship Retailing
Retailers have the best possible motive to engage in relationship retailing, whereby they seek to
establish and maintain long-term bonds with customers, rather than act as if each sales transaction is
a completely new encounter. The motive for adopting such relationships is of course that it is more
profitable for the retailer.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.1


Relationship retailing means concentrating on the total retail experience:
69. Monitoring satisfaction with customer service
70. Staying in touch with customers
71. The majority of all buying decisions are not made until the consumer is standing in front of
a store shelf, choosing which of many brands to put in the shopping basket
72. Customer Respect Perceptions
73. Trust in customers
74. Stand behind products
75. Deal with customer problems
76. Frontline workers empowered to respond properly to a problem
77. Provide suitable product guarantees
78. Keep commitments to customers
79. Sufficient stocks
80. Value customer time
81. Facilities and service systems convenient and efficient for customers to use
82. Employees understand that serving customers supersedes all other priorities
83. Communicate with customers respectfully
84. Store information helpful
85. Advertising truthfulness
86. Contact personnel professional
87. Treat all customers with respect, regardless of their appearance, age, race, gender, status,
or size of purchase or account
88. Special precautions to minimise discriminatory treatment of certain customers
89. Thank customers for their business
90. Respect employees
91. Ensure that employees are respectfully treated by customers

To be effective in relationship retailing, one should consider two factors:


92. It is harder to make new customers than to make existing ones happy. For a retailer to gain in
the long run, by attracting shoppers, making sales, and earning profits); the customer must
also gain in the long run, by receiving good value, being treated with respect, and feel
welcomed in the store.
93. The advances in information technology mean that it is now much easier to develop a
customer database with information on shopper’s attributes and past shopping behaviour.
On-going customer contact can be better, more frequent, and more focused.

Audit of Provider Concepts by Expert Appraisal:


94. Customisation of product offering. No more one size fits all. Retailers must adopt a more
robust portfolio approach to the market to appeal to the multi-channel consumer mind-set.
95. Market power of the Majors. All retailers must come to terms that the majors are here to
stay and that they will continue to dominate almost every national market in the world.
96. Supercentres are here to stay because they are merely the reflection of consumer choice.
97. Speciality Retailers have to develop concepts to both work with supercentres and to offer
alternatives to the supercentres.

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98. Department stores will find it difficult to survive the mass retailers and lifestyle specialists
and will need to re-invent themselves.
99. Shopping malls will need to change to maintain their market share.
100. Compressed lifecycles for products, stronger retail concepts, and global brands mean the
days of the large, mass-merchandised specialty chain are over.
101. Experiential retailing concepts will mix context and commerce in the future.
102. E-commerce will act as more of a vehicle for retailing than as the cash register. The
majority of sales will continue to be channel through retail stores.
103. Consumers will embrace new technologies that give them better information and more
control over the shopping process.
104. Stores and sales staff will have greater capabilities as retailers adopt technologies to better
utilise retail space and allow greater employee productivity. Over time, some smart store
solutions will displace human resources with technology.
105. M-commerce remains a mainly a B2B (business to business) than B2C (business to
consumer) sales method. The consumer is still attracted to more tangible methods of
purchasing and the store experience.
106. Globalisation of retailers will accelerate as national borders disappear and trade is de-
regulated and liberalised.
107. As retailers become more globalised they will seek alternative and more secure sources of
supply and this will mean that retailers become more involved in manufacturing.
108. Retailers will become brand managers as the search for competitive differentiation
accelerates. This will include more own branding, higher quality own brands and the
ownership of stand-alone brands.
109. Retailers will Brand-Share by integrating with complimentary retail brands, sharing
customer bases and leverage location strength through innovative store-within-a-store, or
brand-sharing, partnerships.
110. Retailers will attempt greater Brand Extension and seek to extend their brand into other
consumer and business markets thereby transcend competitive boundaries
111. Suppliers will strive to become providers of best-in-class categories as they take on an
increasing number of activities that traditionally have been the responsibility of the retailer.
112. As more suppliers get locked out of traditional retail channels, supplier direct to consumer
will become a more viable scenario for the future.
113. In a buyer’s market, where technology is changing the dynamics of the buyer–seller
interface, the relationship between retailers and consumers will become much more
symmetrical and will favour the consumer.
114. For Retailers and Suppliers alike, survival will mean developing a New Concept of their
business model rather than just trying another redesign.

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Part M.2 : Relationships in Retailing

This data is available on a Corporate basis for Agrana Fruit

Retailer must strictly apply the concepts of Value and Relationship so that customers strongly believe
that the firm offers good value for the money, and that both customers and channel members want to
do business with that retailer.

Consumers demand better value from the shopping experience.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.2


1. Time and budget constrain consumers and they spend less time shopping, make fewer trips,
visit fewer stores, and shop more purposefully.
2. Consumers use different retail formats for different needs. Specifically, they split the
commodity shopping trip from the value-added shopping trip.
3. Consumers are more sceptical about price. Under the barrage of sales, price has lost its
meaning; gimmicks have lost their appeal. To regain consumer confidence, pricing by
retailers and manufacturers alike must become clearer, more sensible, and more
sophisticated.
Relationship retailing with regard to customers and channel partners, the differences in relationship
building between goods and service retailers, technology and relationships, and ethics and
relationships are considerations which will provide value.

Value & the Value Chain


In many channels of distribution, there are several parties: manufacturer, wholesaler, retailer, and
customer. These parties are most apt to be satisfied with their interactions when they have similar
beliefs about the value provided and received and agree on the payment for that level of value.
From the perspective of the manufacturer, wholesaler, and retailer, Value is embodied by a series of
activities and processes, the Value Chain, that provides a certain value for the consumer. It is the
totality of the tangible and intangible product and customer service attributes offered to shoppers. The
level of value relates to each retailer’s desire for a fair profit and its market niche (such as discount vs.
upscale).Where firms may differ is in rewarding the value each provides and in allocating the activities
undertaken.
From the customer’s perspective, Value is the perception the shopper has of a value chain. It is the
customer’s view of all the benefits from a purchase (formed by the total retail experience). Value is
based on the perceived benefits received versus the price paid. It varies by type of shopper. Price-
oriented shoppers want low prices, service-oriented shoppers will pay more for superior customer
service, and status-oriented shoppers will pay a lot to patronise prestigious stores.

Derived from the Customer Surveys:

Customer Surveys of Agrana Fruit: as an Excel file: Part_M.2


4. Customers always believe they got their money’s worth
5. Customers perceive the level of value provided is the same as the retailer intends.
6. Customer Segments confirm that they receive the desired Value. Value is desired by all
customers; however, it means different things to different customers.

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7. Consumers believe that the retailer’s prices have moved close to competitors. Comparison
shopping for prices is very easily done online and thus prices have moved closer together
for different types of retailers.
8. Consumer believe that the Retailer is differentiation and the retailer is not perceived as a
“me too” retailer.
9. Consumers believe that there is a specific value/price level for each product offering.
10. Consumers believe that the Retailer can command a higher price for the same article by
adding better customer service.

The retail Value Chain represents the total bundle of benefits offered to consumers through a channel
of distribution. Consumers are only concerned with the results of a value chain, not the process.

Customer Surveys of Agrana Fruit: as an Excel file: Part_M.2


Derived from the Customer Surveys:
11. Store location
12. Parking
13. Retailer ambience
14. Level of customer service
15. Products carried
16. Brands carried
17. Product quality
18. In-stock position
19. Delivery or shipping
20. Prices
21. Retailer’s image
Consumer visible Value Chain elements:
22. Display windows
23. Store hours
24. Sales personnel
25. Point-of-sale equipment
26. Upscale store ambience
27. Plentiful sales personnel
28. Shopping carts
29. Self-service & self-check-out
Behind the counter Value Chain elements:
30. Store location planning
31. Credit processing
32. Warehousing
33. Merchandising decisions
There are three aspects of a value-oriented retail strategy:
 expected,
 augmented, and
 potential

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Audit of Value Chain Attributes by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.2


34. Expected retail strategy (the minimum Value Chain elements a given customer segment
expects from the retailer; failing which, customer dissatisfaction will cause the retailer to lose
customers):
a. Store cleanliness
b. Convenient hours
c. Well-informed employees
d. Timely service
e. Popular products in stock
f. Parking
g. Returns privileges

35. Augmented retail strategy (extra Value Chain elements that differentiate the retailer from
others and are the key to continued customer patronage):
h. Exclusive brands
i. Superior salespeople
j. Loyalty programs
k. Delivery
l. Personal shoppers
m. Special services
n. Valet parking

36. Potential retail strategy (Value Chain elements not yet perfected by the retailer’s competitors
in the same category were the retailer to capitalise on potential features gain a head start
over their adversaries):
o. 24/7 store hours
p. Unlimited customer return privileges
q. Full-scale product customisation
r. Instant fulfilment through in-store orders accompanied by free delivery
s. In-mall facilities
t. Transportation

Retailers have to avoid the potential pitfalls of a value-oriented retail strategy.

Audit of Value Chain Attributes by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.2


37. Planning value with just a price perspective. Value is tied to two factors, benefits and prices;
however most customers expect the retailer to absorb credit card costs even on discount or
low margin products.

38. Providing value-enhancing services that customers do not want and therefore will not pay
extra.

39. Competing in the wrong value / price segment. Retailers must ensure that their pricing points
are commensurate with the value offered, and that the value / price position reflect consumer
perceptions of the retail segment.

40. The belief that augmented elements alone create value. Retailers may offer a high-end
benefit not available from competitors, however this will not compensate for the unavailability
of more basic like adequate parking.

41. Paying lip service to customer service. Retailers may believe that the customer is always
right; however they sometimes act contrary to this philosophy. This may include having a high
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turnover of sales staff, charging for returned goods that have been opened, and not offer
ordering of out of stock items.

Value-Oriented Retailing Checklist


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.2
42. Defined values from the consumer perspective
43. Clear value / price point
44. Value position which is competitively defensible
45. Channel partners capable of delivering value-enhancing services
46. Distinction between expected and augmented value chain elements
47. Identification of meaningful potential value chain elements
48. Value-oriented approach aimed at distinct market segments
49. Consistent value-oriented approach
50. Value-oriented approach effectively communicated to the target market
51. Target market’s clear identification of the retailer’s positioning strategy
52. Retailer’s positioning strategy considers trade-offs in sales versus profits
53. Retailer sets customer satisfaction goals
54. Retailer periodically measure customer satisfaction levels
55. Retailer careful to avoid the pitfalls in value-oriented retailing
56. Retailer always looking out for new opportunities that will create customer value

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Part M.3 : Customer Relationships

This data is available on a Corporate basis for Agrana Fruit

Relationship Retailing is the process whereby retailers seek to form and maintain long-term bonds
with customers, rather than act as if each sales transaction is a new encounter with them. For
relationship retailing to work, enduring value-driven relationships are needed with other channel
members, as well as with customers; developing these is a challenge.

Customer Relationships
Loyal customers are the backbone of a business and in retailing this can have profound effects on
profitability as 30% of a retailer’s customers will represented over 70% of a retailers profits.

In relationship retailing, there are factors to keep in mind:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


1. The customer base
2. Customer service
3. Customer satisfaction
4. Loyalty programs
5. Defection rates

The Customer Base


Retailers must regularly analyze their customer base in demographic and other terms:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


6. Population demographics
7. Lifestyle trends
8. Attitudes toward and reasons for shopping
9. The level of loyalty
10. The mix of new versus loyal customers

11. Populations aging


12. Household size
13. Population mobility
14. Population location & urbanisation
15. Working population distribution by gender and age
16. Population distribution by social class and income levels
17. Immigration and emigration
18. Consumer gender roles
19. Market segment diversification
20. Interest in spending time shopping
21. Use of time-saving goods and services
22. Consumer demands of retailers

There are various factors that influence shopping behaviour:

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23. More women than men enjoy shopping


24. Men shop more quickly than women
25. Shopping behaviour of younger men (ages 18 to 34) is more similar to their female
counterparts
26. Time constraints
27. Consumers time spent during shopping by gender type by type of shopping area
28. Consumers time spent during shopping by gender type by type of retailer
29. Purchases by gender type by type of shopping area
30. Purchases by gender type by type of retailer

31. Consumers reasons to shop by type of retailer


a. See and feel the product
b. Product availability
c. Ease in finding products
d. Confidence in products
e. Ease of shopping
f. Convenience of the location
g. Price
h. Assortment
i. Quality of merchandise
j. Store physical attributes
k. Product labelling

Core Customers
It is worth nurturing relationships with some customers rather than with others; these are the retailer’s
core customers, being their most regular customers. This group of customers need to be identified,
tagged and retained.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


32. Customers that are the most profitable and the most loyal
a. Spend more money
b. Pay their bills promptly
c. Reasonable in their customer service requests
d. Prefer stable, long-term relationships

33. Customers that place the greatest value on what the retailer has to offer
a. Customers that prefer the retailer’s products
b. Customers that prefer the retailer’s customer services
c. Customers that prefer the retailer’s special strengths or uniqueness

34. Customers that are worth more to you than the retailer’s competitors
a. Customers that warrant extra effort and investment
b. Customers who are worth more to a competitor will eventually defect

The retailer’s desired mix of new versus loyal customers depends on that retailer’s stage in its life
cycle, goals, and resources, and its competitors’ actions.
A mature retailer is more apt to rely on core customers and supplement its revenues with new
shoppers. A new retailer faces the dual tasks of attracting shoppers and building a loyal following; it
cannot do the latter without the former. If goals are growth-oriented, the customer base must be
expanded by adding stores, increasing advertising, and so on; the challenge is to do this in a way that
does not deflect attention from core customers. Although it is more costly to attract new customers
than to serve existing ones, core customers are not cost-free. If competitors try to take away a
retailer’s existing customers with price cuts and special promotions, a retailer may feel that it must

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pursue competitors’ customers in the same way. Again, it must be careful not to alienate core
customers.

Customer Service
Customer service refers to the identifiable, but sometimes intangible, activities undertaken by a
retailer in conjunction with the goods and services it sells. Customer service affects the total retail
experience. Consistent with a value chain philosophy, retailers must apply two elements of customer
service: expected customer service is the service level that customers want to receive from any
retailer, such as basic employee courtesy; augmented customer service includes the activities that
enhance the shopping experience and give retailers a competitive advantage.
The attributes of personnel who interact with customers (such as politeness and knowledge), as well
as the number and variety of customer services offered, have a strong effect on the relationship
created.
Planning the best customer service strategy can be complex and challenging especially during
economically difficult times which is causing retailers to cut costs in many areas of their businesses;
albeit customers still expect the same level of service. Customer service satisfaction has always
been a key for positive financial results. Businesses must not make customer service investments
only to keep pace with growth, they should view their spending as a strategic benefit to bring greater
customer satisfaction and retention.
Some retailers realise that customer service is better when they utilise employee empowerment,
whereby workers have the discretion to do what they believe is necessary, within reason, to satisfy
the customer, even if this means bending some rules.

Audit of Employee performance by Expert Appraisal:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


35. Employee turnover rates
36. High performing employees
37. Employees paid commission
38. Employee orientation training
39. Employee on-going training
40. Discretion for employees to make on-the-spot decisions
41. Employees perceive themselves as consultants and problem solvers

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Developing a customer service strategy


Fundamental issues for the retailer.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


For the retailer, what customer services are expected and what customer services are augmented:
42. The level of customer service which complements the retailer’s image
43. Choices of customer services
44. Payment for customer services
45. Measurement of customer benefits versus costs
46. Termination of customer services

Planning individual customer services


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3
47. Having outlined a broad customer service plan, the retailer then identifies individual
customer services.
a. Alterations
b. Baby strollers or Baby Changing facilities
c. Baby-sitting or Children’s Areas
d. Beauty salon
e. Bridal registry
f. Complaints and returns handling
g. Credit facilities
h. Designers
i. Dressing rooms
j. Extended store hours
k. Fitting rooms
l. Free parking
m. Gift certificates
n. Gift wrapping
o. Information services
p. Installation / Technical services
q. Layaway
r. Mail and phone orders
s. Open credit account
t. Option credit account
u. Packaging (gift wrapping)
v. Parking
w. Personal shoppers
x. Phones
y. Rest rooms
z. Restaurant
aa. Retailer-sponsored credit cards
bb. Shopping bags
cc. Sitting areas
dd. Special sales for regular customers
ee. Storage
ff. Ticket outlets
gg. Trade-ins
hh. Trial purchases
ii. Water fountains

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Customer Satisfaction
Customer satisfaction occurs when the value and customer service provided through a retailing
experience meet or exceed consumer expectations. Only “very satisfied” customers are likely to
remain loyal in the long run.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


48. Retailer customer satisfaction
49. Customer satisfaction deficits
50. Customer Satisfaction Index rating
51. Perceived quality
52. Perceived value
53. Satisfaction score

54. Consumers not complaining when dissatisfied


55. Perception that complaining produces few or no positive results
56. Complaining difficult
57. Unable to find the staff to whom to complain
58. Access to complaints process restricted
59. Complaints procedure too bureaucratic
60. Complaint forms to complex

61. Customer feedback


62. On-going customer satisfaction surveys
63. Customers rating customer services
64. Customer services exceed expectations
65. Customer services appreciated
66. Customer services disliked

Loyalty Programs
Consumer loyalty programs reward the retailer’s best customers, those with whom it wants long-
lasting relationships.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


67. Percentage of retailer’s customers participating
68. Structure of loyalty program
69. Types of Incentive
70. Cash discount on purchases
71. Notices of upcoming promotions

72. Special vouchers


73. Coupons for new products
74. Referral coupons on goods and services from other vendors
75. Gifts with purchases
76. Special Events
77. Preferred parking
78. Personal shopping assistance

79. Privacy issues


80. Consumer fatigue with program
81. Defection rates

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Channel Relationships
Within a value chain, the members of a distribution channel (manufacturers, wholesalers, and
retailers) jointly represent a Value Delivery System, which comprises all the parties that develop,
produce, deliver, and sell and service particular goods and services.
The ramifications for retailers include:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3

82. Each channel member is dependent on the others. When consumers shop with a certain
retailer, they often do so because of both the retailer and the products it carries.
83. All value delivery system activities must be enumerated and responsibility assigned for
them.
84. Small retailers may have to use suppliers outside the normal distribution channel to get the
products they want and gain adequate supplier support. Although large retailers may be
able to buy directly from manufacturers, smaller retailers may have to buy through
wholesalers that handle small accounts.
85. A value delivery system is as good as its weakest link. No matter how well a retailer
performs its activities, it will still have unhappy shoppers if suppliers deliver late or do not
honour warranties.
86. The nature of a given value delivery system must be related to target market expectations.
87. Channel member costs and functions are influenced by each party’s role. Long-term
cooperation and two-way information flows foster efficiency.
88. Value delivery systems are complex due to the vast product assortment of superstores, the
many forms of retailing, and the use of multiple distribution channels by some
manufacturers.
89. Non-store retailing (such as mail-order, phone, and online transactions) requires a different
delivery system than does store retailing.
90. Due to conflicting goals about profit margins, shelf space, and so on, some channel
members are adversarial—to the detriment of the value delivery system and channel
relationships.

When members of a Value Delivery System forge strong positive channel relationships, they better
serve each other and the final consumer.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


91. Traditionally, the relationship between retailers and suppliers was, at best, arm’s length.
92. The manufacturers’ goal was to move the greatest volume of goods at the highest price.
93. The retailers’ goal was to negotiate the lowest price for the goods.
94. Competitive pressures led to a new paradigm. It focused on a simple idea: make sure the
right product at the right price is on the shelf when the customer enters the store, while
maintaining the lowest possible inventory at all points in the pipeline from suppliers to
retailer. This requires cooperation between retailers and upstream suppliers.
95. Category management whereby channel members collaborate to manage products by
category rather than by individual item. Category management is based on these
principles:
a. Retailers listen more to customers and stock what they want.
b. Profitability is improved because inventory matches demand more closely.

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c. By being better focused, each department is more desirable for shoppers.


d. Retail buyers are given more responsibilities and accountability for category
results.
e. Retailers and suppliers must share data and be more computerised.
f. Retailers and suppliers must plan together.

Relationship Building: Goods -v- Service Retailers


The consumer interest in services makes it crucial to understand the differences in relationship
building between retailers that market services and those that market goods. This applies to store-
based and non-store-based retailers, those offering only goods or services, and those offering goods
and services.
Goods Retailing is defined as the sale of tangible (physical) products, whereas Service Retailing
involves transactions in which consumers do not purchase or acquire ownership of tangible products.
Some retailers engage in either goods retailing (such as hardware stores) or service retailing (such as
travel agencies); others offer a combination of the two (such as stores that rent as well as sell
movies). The latter format is the fastest-growing. For example, many department stores have beauty
salons, and many hotels have gift shops, and so on.
Service Retailing encompasses such diverse businesses as personal services, hotels and motels,
auto repair and rental, and recreational services. In addition, although several services have not been
commonly considered a part of retailing (such as medical, dental, legal, and educational services),
they should be when they entail final consumer sales.
There are three kinds of service retailing:
 Rented-goods services, whereby consumers lease and use goods for specified periods of
time. Tangible goods are leased for a fixed time, but ownership is not obtained and the good
must be returned when the rental period is up. Examples are car rentals, carpet cleaner
rentals at a supermarket, and video rentals at a convenience store.
 Owned-goods services, whereby goods owned by consumers are repaired, improved, or
maintained. In this grouping, the retailer providing the service never owns the good involved.
Illustrations include watch repair, lawn care, and an annual air-conditioner tune-up.
 Non-goods services, whereby intangible personal services are offered to consumers, who
then experience the services rather than possess them. The seller offers personal expertise
for a specified time in return for a fee; tangible goods are not involved. Some examples are
stockbrokers, travel agents, real-estate brokers, and personal trainers.

The terms customer service and service retailing are not interchangeable. Customer service refers to
the activities undertaken in conjunction with the retailer’s main business; they are part of the total
retail experience. Service Retailing refers to situations in which services are sold to consumers.
There are four unique aspects of service retailing that influence relationship building and customer
retention.

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


96. The intangibility of many services makes a consumer’s choice of competitive offerings
tougher than with goods.
97. The service provider and his or her services are sometimes inseparable (thereby localising
marketing efforts).
98. The perishability of many services prevents storage and increases risks.
99. The aspect of human nature involved in many services makes them more variable.

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The intangible (and possibly abstract) nature of services makes it harder for a retailer to develop a
clear consumer-oriented strategy, particularly because many retailers (such as opticians, repair
people, and landscapers) start service businesses on the basis of their product expertise. The
inseparability of the service provider and his or her services means that the owner–operator is often
indispensable and good customer relations are pivotal.

100. Perishability presents a risk that in many cases cannot be overcome. Thus, revenues from
an unrented hotel room are forever lost.
101. Variability means that service quality may differ for each shopping experience, store, or
service provider.

Service retailing is much more dependent on personal interactions and word-of-mouth communication
than is goods retailing:
 Relationship marketing benefits the customer, as well as the firm. For services that are
personally important, variable in quality, and/or complex, many customers will desire to be
“relationship customers.” Medical, banking, insurance, and hairstyling services illustrate some
or all of the significant factors, importance, variability, and complexity, which would cause
many customers to desire continuity with the same provider, a proactive service attitude, and
customised service delivery.
 The intangible nature of services makes them difficult for customers to evaluate prior to
purchase.
 The heterogeneity of labour-intensive services encourages customer loyalty when excellent
service is experienced. Not only does the auto repair firm want to find customers who will be
loyal, but customers want to find an auto repair firm that evokes their loyalty.
 Knowledge of the customer combined with social rapport built over a series of service
encounters facilitates the tailoring of service to customer specifications. Relationship
marketing does not apply to every service situation. However, for those services distinguished
by the characteristics discussed here, it is potent.

Ethics & Relationships in Retailing


Ethical challenges fall into three interconnected categories:
 Ethics relates to the retailer’s moral principles and values.
 Social responsibility involves acts benefiting society.
 Consumerism entails protecting consumer rights.
“Good” behaviour depends not only on the retailer but also on the expectations of the community in
which it does business.

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Ethics
In dealing with their constituencies (customers, the general public, employees, suppliers, competitors,
and others), retailers have a moral obligation to act ethically. Furthermore, due to the attention paid to
firms’ behaviour and the high expectations people have today, a failure to be ethical may lead to
adverse publicity, lawsuits, the loss of customers, and a lack of self-respect among employees.
When a retailer has a sense of ethics, it acts in a trustworthy, fair, honest, and respectful manner with
each of its constituencies. Executives must articulate to employees and channel partners which kinds
of behaviour are acceptable and which are not. The best way to avoid unethical acts is for firms to
have written ethics codes, to distribute them to employees and channel partners, to monitor
behaviour, and to punish poor behaviour, and for managers to be highly ethical in their own conduct.
Often society may deem certain behaviour to be unethical even if laws do not forbid it. Most observers
would agree that such practices as these are unethical (and sometimes illegal, too):

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


102. Raising prices on scarce products after natural events.
103. Not having adequate stock when a sale is advertised.
104. Charging high prices in low-income areas because consumers there do not have the
transportation mobility to shop out of their neighbourhoods.
105. Selling alcohol and tobacco products to children.
106. Having a salesperson pose as a market researcher when engaged in telemarketing.
107. Defaming competitors.
108. Selling refurbished merchandise as new.
109. Pressuring employees to push high-profit items to shoppers, even if these items are not the
best products for them.
110. Selling information from a customer database.
111. Offers not clear, honest, and complete.
112. Disparagement of anyone on grounds of race, colour, religion, national origin, gender,
marital status, or age.

113. Contacts which do not disclose the sponsor and the purpose of the contact.
114. Competition prizes not advertised in a clear, honest, and complete way.
115. Merchandise shipped without receiving customer permission.
116. Telemarketers knowingly call a consumer with an unlisted or unpublished phone number.

Social Responsibility
A retailer exhibiting social responsibility acts in the best interests of society, as well as itself. The
challenge is to balance corporate citizenship with a fair level of profits for shareholders, management,
and employees. Some forms of social responsibility are virtually cost-free, such as having employees
participate in community events or disposing of waste products in a more careful way. Some are more
costly, such as making donations to charitable groups or giving away goods and services to a school.
Still others mean going above and beyond the letter of the law, such as having free loaner
wheelchairs for persons with disabilities in addition to having legally mandated wheelchair
accessibility to retail premises.
Retailers know that socially responsible acts do not go unnoticed. Though the acts may not stimulate
extra profits for firms with weak strategies, they can be a customer inducement for those otherwise
viewed as “me too” entities. It may also be possible to profit from good deeds; a retailer donates
excess inventory to a charity for the poor, it can take a tax deduction equal to the cost of the goods.

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Consumerism
Consumerism involves the activities of government, business, and other organisations to protect
people from practices infringing upon their rights as consumers. These actions recognise that
consumers have basic rights that should be safeguarded.
Retailers and their channel partners need to avoid business practices that violate consumer rights and
to do all they can to understand and protect them, for reasons that include the following:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.3


Retail practices are covered by legislation.
117. Consumers are more knowledgeable, price-conscious, and selective than in the past.
118. Large retailers may be viewed as indifferent by consumers. They may not provide enough
personal attention for shoppers or may have inadequate control over employees.
119. The use of self-service is increasing, and it can cause frustration for some shoppers.
120. Innovative technology is unsettling to many consumers, who must learn new shopping
behaviour.
121. Retailers are in direct customer contact, so they are often blamed for and asked to resolve
problems caused by manufacturers (such as defective products).

To avoid customer relations problems, retailers must devised programs to protect consumer rights
without waiting for government or consumer pressure to do so.
Retailers should enacted programs to test merchandise for specific attributes:
122. Value
123. Quality
124. Misrepresentation of contents
125. Safety
126. Durability
Other consumerism activities should be undertaken by the retailer:
127. Setting clear procedures for handling customer complaints
128. Sponsoring consumer education programs
129. Training personnel to interact properly with customer

Summary:
130. Understand what “value” really means and highlight its pivotal role in building and
sustaining relationships.
a. Undertake activities and processes to provide a given level of value for the consumer.
b. Consumers perceive the value offered, based on the perceived benefits received
versus the prices paid.
c. Perceived value varies by type of shopper.
d. Value chain represents the total bundle of benefits offered by a channel of
distribution.
e. Value chain comprises store location, ambience, customer service, the
products/brands carried, product quality, the in-stock position, shipping, prices, the
retailer’s image, and so forth.
f. Elements of a retail value chain visible to shoppers.
g. Expected retail strategy which represents the minimum value chain elements a given
customer segment would expect from the retailer.
h. Augmented retail strategy which includes the extra elements that differentiate the
retailer.
i. Potential retail strategy includes value chain elements not yet perfected in the
retailer’s industry category.

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131. Understand both customer relationships and channel relationships which may be
nurtured.
a. Enduring relationships with other channel members, as well as with customers.
b. Realisation that loyal customers are the backbone of their business.
c. Applying relationship retailing with consumers which identify factors which should be
considered:
i. the customer base
ii. customer service
iii. customer satisfaction
iv. loyalty programs
v. defection rates.

d. Which shoppers are more worth nurturing because they are a retailer’s core customers.
e. The attributes of personnel who interact with customers
f. Number and variety of customer services offered.
g. Improved customer service by empowering personnel
h. Implementation of specific tactics as to credit, delivery, and so forth.
i. Customer satisfaction because the value and customer service provided in a retail
experience meet or exceed expectations.
j. Loyalty programs which reward the best customers with whom a retailer wants to develop
long-lasting relationships.
k. Sound value-driven retail strategy.
l. Study of defections, how many customers are lost, and why they no longer patronise the
store.
m. Members of a distribution channel jointly representing the value delivery system.
n. Distribution activities which are enumerated and responsibility assigned.
o. Category management.

132. Differences in relationship building between goods and service retailers.


a. Focus on selling tangible products.
b. Service retailing.
i. rented-goods services
ii. owned-goods services
iii. non-goods services

133. Impact of technology on relationships in retailing.


a. Improved information flow between the retailer and suppliers
b. Improved information flow between the retailer and customers
c. Faster, smoother transactions
d. Electronic banking services
e. Nature of supplier/ retailer/customer interactions

134. Interplay between the retailer’s ethical performance and relationships in retailing.
a. Ethics of the retailer’s moral principles and values
b. Social responsibility
c. Consumerism
d. Act in a trustworthy, fair, honest, and respectful way.
e. Avoids unethical behaviour through written ethics codes, communicate them to
employees, monitor and punish poor behaviour, and has ethical executives
f. Recycling and conservation programs
g. Consumer rights to safety, to be informed, to choose, and to be heard.

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Part M.4 : Planning Aspects of Service Retailing

This data is available on a Corporate basis for Agrana Fruit

Consumers in developed countries spend most of their after-tax income on such services as travel,
recreation, personal care, education, medical care, and housing. In developed countries between 70-
80% of the labour force works in services.
During the past 30 years, the prices of services have risen more than the prices of many goods
because manufacturing has migrated to low cost countries and of course services incur the local
labour costs. In addition, technological advances, automation has substantially reduced
manufacturing labour costs, but many services remain labour-intensive because of their personal
nature.
Many traditional goods retailers are now turning their attention to the provision of services and the
historic dividing lines between goods and services retailers is now very blurred.

Successful service retailing


The inter-personal abilities required in service retailing are usually quite distinct from those in goods
retailing:

Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.4


1. Specific retailer skills.
2. Difficulties in changing and transferring their skills to another area.
3. Service operators may be required to have licences or certification to run their businesses
depending on national regulations
4. Those employed in service businesses must enjoy their jobs and have the aptitude for them.
5. Service retailers can operate on lower overall investments and lower annual revenues than
can goods retailers.
6. Costs can be held down in service businesses whereas a goods retailer needs a good
product assortment and inventory on hand, which may be costly and require storage facilities.
7. Considerations of time commitment of a service retailer differ by type of business.
8. More service retailers fall into the high time-investment category.

Performance of service retailers


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_M.4
Service tangibility can be increased:
9. By stressing service provider reliability
10. Promoting a continuous image
11. Describing specific results
12. Offering warranties
Demand and supply can be better matched:
13. By offering similar services to market segments with different demand patterns
14. New services with demand patterns that are countercyclical from existing services
15. New services that complement existing ones
16. Special deals during nonpeak times
17. New services not subject to existing capacity constraints

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Standardising services:
18. Reduces their variability
19. Makes it easier to set prices
20. Improves efficiency
Services can be standardised:
21. By clearly defining each of the tasks involved
22. Determining the minimum and maximum times needed to complete each task
23. Selecting the best order in which to do tasks
24. Noting the optimum time and quality of the entire service
Service retailers may be able to make services more efficient:
25. By automating them and substituting machinery for labour.
26. Optimum location of a service centres
27. Use of mobile customer service facilities
Pricing decisions can be improved:
28. Communicate value through their pricing
29. Satisfaction-based pricing recognises and reduces customer perceptions of uncertainty that
service intangibility magnifies
30. Service guarantees
31. Benefit-driven pricing
32. Flat-rate pricing.
33. Relationship pricing which encourages long-term relationships with valuable customers
through long-term contracts and price bundling
34. Cost leadership techniques
35. Negotiated pricing where the retailer works out a one-time pricing arrangements with
individual customers because of a unique or complex service
36. Contingency pricing where the retailer does not get paid until after the service is performed
and payment is contingent on the service’s being satisfactory.

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Part N.1 : Supplemental Customer Survey Data

This data is available on a Corporate basis and on a Location/Site basis for Agrana Fruit

This section provides a battery of supplemental Customer Surveys.

Survey Respondent Demographics


Survey data is provided for the total consumer demographic. However the survey data can be
extracted for particular demographics. The Filtering of the demographic is done for individual
demographic characteristics or for one or more demographic characteristics.

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.1

1. Gender

2. Age
a. Under 13
b. 13-17
c. 18-25
d. 26-34
e. 35-54
f. 55-64
g. 65 or over

3. Marital status
a. Single, never married
b. Married without children
c. Married with children
d. Divorced
e. Separated
f. Widowed
g. Living with partner

4. Highest level of education you have completed


a. Less than High School
b. High School
c. Some College
d. 2-year College Degree
e. 4-year College Degree
f. Master’s Degree
g. Doctoral Degree
h. Professional Degree

5. Are there any children in at home, if so, what are their ages
a. Under 10
b. 10 to 15
c. 16 to 19
d. No, no children at home

6. Indicate the number of children in your household under the age of 18.

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a. 0
b. 1
c. 2
d. 3
e. 4 or more
f. How many Boys
g. How many Girls

7. Including yourself, how many persons are in your household?


a. 1
b. 2
c. 3
d. 4
e. 5 or more

8. What type of housing to you live in


a. Apartment
b. Condominium
c. Mobile/Trailer
d. Single unit home
e. Other

9. Do you
a. Own
b. Rent your home
c. Other

10. Which of the following best describes the area you live in?
a. Inner city / downtown
b. Urban
c. Suburban
d. Rural

11. What is your total yearly household income, before taxes


a. Under $30,000
b. $30-$39,999
c. $40-$49,999
d. $50-$59,999
e. $60-$69,999
f. $70-$79,999
g. $80-$89,999
h. $90-$99,999
i. $100-$150,000
j. Over $150,00

12. Are you currently registered to vote


a. Rather not say
b. No
c. Yes
d. Not applicable

13. What is your current work status?


a. Work outside home full time
b. Work outside home part time
c. Do not work outside home

14. In what type of organisation do you work?

15. Which of the following best describes your job role?


a. Upper Management

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b. Middle Management
c. Junior Management
d. Administrative Staff
e. Support or Functional Staff
f. Student

16. The organisation you work for comes under which of the following categories?
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other

17. Can you estimate your organisation's total budget for this year?
a. less than $1 million (US)
b. $1 million to $10 million (US)
c. $10 million to $100 million (US)
d. $100 million to $500 million (US)
e. $500 million to $1 billion (US)
f. over $1 billion (US)
g. Do not know or Rather not say

18. During an average week, most of your professional correspondence (postal mail or e-mail) is
with which of the following:
a. Public sector (e.g. government)
b. Private sector (e.g. most businesses and individuals)
c. Not-for-profit sector
d. Do not know
e. Other

19. Indicate which of the following are sources of revenue for your organisation:
a. Sales to individuals or private organisations (but not contracts)
b. Sale to government organisations (but not contracts)
c. Contracts to do work for private organisations
d. Contracts to do work for government organisations
e. Contracts to do work for other organisations
f. Government appropriations
g. User charges and fees
h. Donations
i. Don't know or Other

20. What is the present occupation of the head of household?


a. Professional/technical
b. Manager/official/proprietor
c. Clerical
d. Sales
e. Crafts/trades
f. Operator
g. Manual worker
h. Service worker
i. Retired
j. Homemaker
k. Student
l. Unemployed or Other

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Brand Survey
Derived from the Customer Surveys:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.2


1. Attitudes Towards Discount / Store Own-Brand Products
2. Brand Availability -v- Price Question
3. Perceptions of Currently Imported Brands
4. Perceptions of Currently Store Brands
5. Brand Price Sensitivity
6. Brand Product Awareness
7. Product Awareness of Store Brands
8. Brand Purchasing Criteria: Current
9. Purchasing Criteria: Current of Store Brands
10. Brand Purchasing Criteria: Future Trends
11. Purchasing Criteria: Future Trends of Store Brands
12. Quality -v- Price Question
13. Reaction to Advertising & Sales Promotion of Brands
14. Reaction to Advertising & Sales Promotion of Store Brands
15. Reaction to P.O.S. & Merchandising of Brands
16. Satisfaction with Existing Branded Outlets
17. Satisfaction with Existing Foreign Brand Products
18. Satisfaction with Existing Brands Products
19. Satisfaction with Existing Brands Retailers
20. Satisfaction with Foreign Brand Product Design
21. Satisfaction with Foreign Brand Product Packaging
22. Satisfaction with Foreign Brand Product Packaging Design
23. Satisfaction with Foreign Brand Product Quality
24. Satisfaction with Product Brands Availability
25. Satisfaction with Product Brands Design
26. Satisfaction with Product Brands Packaging
27. Satisfaction with Product Brands Packaging Design
28. Satisfaction with Product Brands Quality
29. Satisfaction with Retailers Brands Stock Levels
30. Willingness to Purchase Foreign Brands
31. Willingness to Purchase Store Brands

32. Brands Advertising Posture: Branch/Outlet Level


33. Brands Advertising Posture: Company Level
34. Brands Promotional Activity: Branch/Outlet Level
35. Brands Promotional Activity: Company Level

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Retail Store Brand Personality


Derived from the Customer Surveys:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.3


Retail store personality variables:
1. Select the answer that best indicates the way you would describe this Retailer’s Brand.
a. Good selection
b. High prices
c. High quality
d. High fashion
e. Good service
f. Easy to shop in
g. Friendly
h. Good sales and promotions
i. Sophisticated
j. Traditional
k. Different
l. Take chances
m. Confident
n. Creative
o. Sociable
p. Stands out in the crowd
q. Simplified lifestyle

Comparative Retail Store Evaluation


Battery of questions focusing on merchandise quality, value, layout, convenience. Comparisons
across 15 competitive retailers within the catchment area.
Derived from the Customer Surveys:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.4

Considering the 15 stores, which store:


1. consistently provides the best values for your money?
2. is most likely to have what you want in stock?
3. has the best advertised sales and specials?
4. has the best quality merchandise?
5. maintains the best everyday price for most merchandise?
6. has the lowest prices overall?
7. provides the least value for your money?
8. has the highest prices overall?
9. has the poorest quality merchandise?
10. has the most convenient store layout for shopping?
11. has the widest selection of national brand merchandise?
12. offers the lowest everyday prices on household essentials such as cleaning supplies, paper
goods, and health and beauty aids?
13. has the best cafeteria?

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Retail Store Evaluation


Derived from the Customer Surveys:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.5

Retail store customer service and merchandise evaluation survey:


1. This store has modern-looking equipment and fixtures.
2. The physical facilities at this store are visually appealing.
3. Materials associated with this store's service (such as shopping bags, catalogues, or
statements) are visually appealing.
4. This store has clean, attractive, and convenient public areas (restrooms, fitting rooms).
5. The store layout at this store makes it easy for customers to find what they need.
6. The store layout at this store makes it easy for customers to move around the store.
7. When this store promises to do something by a certain time, it will do so.
8. This store provides its services at the time it promises to do so.
9. This store performs the service right the first time.
10. This store has merchandise available when the customers want it.
11. This store insists on error-free sales transactions and records.
12. Employees in this store have the knowledge to answer customers' questions.
13. The behaviour of employees in this store instils confidence in customers.
14. Customers feel safe in their transactions with this store.
15. Employees in this store give prompt service to customers.
16. Employees in this store tell customers exactly when services will be performed.
17. Employees in this store are never too busy to respond to customer's requests.
18. This store gives customers individual attention.
19. Employees in this store are consistently courteous with customers.
20. Employees of this store treat customers courteously on the telephone.
21. This store willingly handles returns and exchanges.
22. When a customer has a problem, this store shows a sincere interest in solving it.
23. Employees of this store are able to handle customer complaints directly and immediately.
24. This store offers high quality merchandise.
25. This store provides plenty of convenient parking for customers.
26. This store has operating hours convenient to all their customers.
27. This store accepts most major credit cards.
28. This store offers its own credit card.

Customer Surveys
Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.6

1. Stores are conveniently located.


2. Store hours are convenient for my shopping needs.
3. Store atmosphere and decor are appealing.
4. A good selection of products was present.
5. Store has the best prices in the area.
6. Merchandise sold is of the highest quality.
7. The merchandise sold is a good value for the money.
8. Merchandise displays are attractive.
9. Advertised merchandise was in stock.
10. Overall, I am very satisfied with the store.
11. I am very satisfied with the price I paid for what I bought.
12. I am very satisfied with the merchandise I bought.

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13. In thinking about your most recent experience with the retailer, was the quality of customer
service you received:
a. Very Poor
b. Somewhat Unsatisfactory
c. About Average
d. Very Satisfactory
e. Superior

14. Characteristics of the sales person:


a. Poor
b. Fair
c. Good
d. Very Good
e. Excellent
f. Knowledge of the product
g. Courteousness
h. Willingness to help
i. Efficiency/quickness
j. Ability to complete transaction

15. How satisfied are you with the product(s) regarding the following items?
a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, customer service etc.)

16. How often do you use the product(s)?

17. Overall, how satisfied are you with the product(s)?


a. Very Unsatisfied
b. Unsatisfied
c. Somewhat Satisfied
d. Very Satisfied
e. Extremely Satisfied

18. Compared to other product(s) in this category that are available, would you say that the
product(s) is/are:
a. Much better
b. Somewhat better
c. About the same
d. Somewhat worse
e. Much worse

19. Will you use/purchase the product(s) again?


a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not

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20. How likely are you to recommend the product(s) to others?


a. Definitely will recommend
b. Probably will recommend
c. Not sure
d. Probably will not recommend
e. Definitely will not recommend

21. Based on your experience with the product(s), how likely are you to buy again?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Very Likely
e. Extremely Likely

22. If you contacted the company‘s customer service, were all problems resolved to your
complete satisfaction?

23. In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Superior

Particular aspects of the service experience:

24. The process of getting your problem resolved was:


a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Superior

Particular aspects of the problem solving process:

25. The customer service representative was very courteous:


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

26. Which of the following qualities of the service representative stood out (as being superior)?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other

27. What qualities of the customer service representative irked you?


a. Not patient

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b. Not enthusiastic
c. Didn't listen carefully
d. Unfriendly
e. Unresponsive
f. Other
g. No qualities irked me

28. The customer service representative handled my call quickly:


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

29. What would best describe your experience, when you called?
a. Kept me waiting on hold
b. Had to explain several times
c. Didn't know how to handle problem
d. Had to ask others
e. Spoke slowly
f. Other
g. No improvement needed

30. The customer service representative was very knowledgeable.


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

31. The Customer Service:


a. Gave me the wrong information
b. Didn't understand the question
c. Gave unclear answers
d. Couldn't solve problem
e. Disorganised
f. Other
g. No improvement needed

32. The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

33. My phone call was quickly transferred to the person who could best assist me:
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

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34. Over the next 12 months, how likely are you to replace your product with another (product or
brand)?
a. Certain
b. High chance
c. Equal chance
d. Low chance
e. Never

35. In your most recent customer service experience, how did you contact the representative?
a. In Person
b. By Telephone
c. Internet
d. Through a Dealer/Retailer/Broker
e. Other
f. Sufficient information was available on the internet to solve my problem.

36. About how long did you have to wait before speaking to a representative?
a. I was taken care of immediately
b. Within 3 minutes
c. 3-5 minutes
d. 5-10 minutes
e. More than 10 minutes

37. Did the service representative:


a. Quickly identify the problem
b. Appear knowledgeable and competent
c. Help you understand the cause and the solution to the problem
d. Handle issues with courtesy and professionalism

38. About how long did it take to get this problem resolved?
a. Immediate Resolution
b. Less than a day
c. Between 2 and 3 days
d. Between 3 and 5 days
e. More than a week
f. The problem is still not resolved

39. How many times did you have to contact customer service before the problem was corrected?
a. Once
b. Twice
c. Three Times
d. More than Three times

40. Overall, how satisfied are you with the customer service experience?
41. If you were less than totally satisfied, what could have been done to serve you better?

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Customer Satisfaction
Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.7

Net Promoter Score (NPS) TYPE survey. The *Net Promoter Score is a common test of
customer satisfaction.

The score is calculated by sorting respondents into Promoters (High), Neutrals (Middle) and
Detractors (Low), then subtracting the percentage of respondents that are Detractors from the
percentage that are Promoters. This survey calculates a Net Promoter Score type for two
instances: the purchase of a specific Brand Model and overall feelings of the Brand. In
addition, it collects other feedback and demographic information for future segmentation.

*The Net Promoter Score is a registered trademark of Bain & Company and Satmetrix.

1. Considering only your most recent purchase experience, how likely would you be to
recommend the purchase of the product(s) to a friend or colleague? (0 is not at all likely, 10 is
extremely likely)
2. Considering your complete experience with the company, how likely would you be to
recommend the company to a friend or colleague? (0 is not at all likely, 10 is extremely
likely)

3. What can the company do in the future to earn a score of 9 or 10?


4. What did the company do really well?
5. What can the company do to be even better?

Customer Voices
Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.8

1. There would be something missing in my life if the store / brand did not exist.
2. I have the feeling that I really understand the store / brand.
3. I have feelings for the store / brand that I do not have for other companies/brands.
4. The store / brand has always been good for me.
5. The store / brand and I have a lot in common.
6. The store / brand reminds me of things I have done and places where I have been.
7. The store / brand can always count on me.
8. I trust the store / brand
9. I am satisfied with the quality of products of the store.
10. The quality of the products of the store is important to me.
11. I am satisfied with the value for money I get from store.
12. The value for money I get from store is important for me.
13. I am satisfied with the reliability of the products of the store.
14. The reliability of products of the store is important to me.
15. I am satisfied with the product guarantee from the store.
16. The product guarantees at the store is important to me.
17. I am satisfied with the expertise of the store service staff.
18. The expertise of the store service staff is important to me
19. I am satisfied with the fast response of the store service staff
20. The fast response of the store service staff is important to me.
21. The store sales people are friendly.
22. The friendliness of the store sales people is important to me.

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23. The expertise of the store sales people is high.


24. The expertise of the store sales people is important to me.
25. The store understands me and my needs.
26. Are you likely to provide enthusiastic referrals for store?
27. Do you have any comments suggestions for store?

Product Satisfaction and Customer Retention


This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.9

1. How often do you typically use the product?


a. Once a year
b. Daily
c. Weekly
d. Once a month
e. Every 2-3 months
f. 2-3 times a year less often
g. Do not use

2. How did your product(s) perform?


a. Miserably
b. Somewhat Satisfactory
c. Very Satisfactory
d. Delightfully

3. How important was performance on these attributes?


a. Overall quality
b. Value
c. Purchase experience
d. First use experience
e. Usage experience
f. After purchase service (warranty, repair, customer service etc.)

4. Overall, how satisfied were you with the new product(s)?


a. Not at all satisfied
b. Somewhat Satisfied
c. Satisfied
d. Very Satisfied
e. Delighted

5. Have you ever contacted customer service?

6. If you contacted customer service, have all problems been resolved to your complete
satisfaction?
a. Yes, by the company or its representatives.
b. Yes, by me or someone outside the company
c. No, the problem was not resolved
7. Based on your awareness of the product(s) / service(s), is it better, the same, or worse than
other brands?
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a. Much Better
b. Better
c. About the same
d. Worse
e. Much Worse

8. How could the product(s) / service(s) do better?

9. Based on your experience with the product(s), how likely are you to buy the product(s) again?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not

10. Based on your experience with the product(s), would you recommend this product to a friend?
a. Definitely will
b. Probably will
c. Might or might not
d. Probably will not
e. Definitely will not

Customer Satisfaction: Product


This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.10

1. Purchase Satisfaction: How much do you agree or disagree with the following statements
about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. This is one of the best products I could have bought.
b. This product is exactly what I need.
c. This product hasn’t worked out as well as I thought it would.
d. I am satisfied with my decision to buy this product.
e. Sometimes I have mixed feelings about keeping the product(s).
f. My choice to buy this product was a wise one.
g. If I could do it over again, I’d buy a different make/brand.
h. I have truly enjoyed this product.
i. I feel bad about my decision to buy this product.
j. I am not happy that I bought this product.
k. Owning this product has been a good experience.
l. I’m sure it was the right thing to buy this product.

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2. How much do you agree or disagree with the following statements about the product(s)?
i. Strongly Disagree
ii. Disagree
iii. Somewhat Disagree
iv. Neither Agree nor Disagree
v. Somewhat Agree
vi. Agree
vii. Agree Strongly
a. I am pretty satisfied with the product(s) I chose.
b. I am pretty certain that I made the best decision about which product(s) to select.
c. I felt confused while shopping for the product(s).
d. I am pretty sure that one of the other brands of the product(s) that I did not
choose would have been equal to or better than the brand I chose to satisfy my
desires and expectations.
e. It is likely that the brand of the product(s) I chose is better than the other brands
of the product(s) I am currently familiar with.
f. If I could do it over again, I’d buy a different make/brand.

Product Ownership
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.11


1. Did you receive this product as a gift?
2. How did you first discover this product was available for purchase?
a. Advertising - TV, newspaper, magazine, radio
b. Ad in another product - brochure, preview
c. Friends/Family/Someone told me about it
d. Read a magazine article/review
e. Saw it in the store/Browsing in store
f. Through the mail/mail catalogue
g. Other

3. What is the one reason you purchased this product?


a. Someone asked for it
b. Makes a great gift
c. Own other (products) and wanted more
d. It is a classic
e. Good for the whole family
f. Saw it in the store
g. I like the product
h. Price/Good value
i. Other

4. What was the name of the store where this product was bought?
5. What price did you pay for this product?
6. How many Company products do you own?
7. How many similar products of any brand do you own?
8. How many Company products have you bought in the past 12 months?
9. How many similar products of any brand have you bought in the past 12 months?

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New Product Concept Evaluation and Pricing Study


This Survey is on specific New Product Items. A list of the available new product items will be found in
the Core Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.12


This survey is about the Company’s new brand(s) / product(s) / service(s) as described:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a New product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this

2. About how many units of this new product would you buy over the next year at each price
point listed below (FMV Fair Market Value)?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. FMV = Estimated Fair Market Value = Recommended Retail Price
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

3. About what would you expect to pay for the new product(s) / service(s) like the one
described? (Nearest dollar)

4. At what price would this new product begin to look inexpensive or cheap?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

5. At what price would this new product begin to look Fair Value?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

6. At what price would the product begin to look too expensive?


a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%

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g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

7. At what price would the product begin to look so expensive that you would never consider
buying it?
a. FMV + 30%
b. FMV + 20%
c. FMV + 10%
d. FMV + 5%
e. Estimated FMV
f. FMV - 5%
g. FMV - 10%
h. FMV - 20%
i. FMV - 30%

8. If you knew that the average price of similar New brand / product / service was [Price], would
you expect to pay more or less to buy the described new brand / product / service?
a. (20-30%) more
b. (5-10%) more
c. No more, no less
d. (5-10%) less
e. (20-30%) less

9. If you are a current user of a similar brand / product / service, how long have you used the
brand / product / service?
a. Under 1 month
b. 1-6 months
c. 6 months to 1 year
d. 1-2 years
e. 3 years or more
f. Do not currently use

10. How often could you find a use for the described new brand / product / service?
a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year
g. Would not use

11. Based on the description, how interested would you be in buying the described new brand /
product / service; if priced within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Very interested

12. What is it that you like most about the described new brand / product / service?

13. What do you like least about the described new brand / product / service?

14. Which of the following best describes your need for this new brand / product / service?
a. I really need this product because nothing else can solve this problem.
b. This is a minor improvement over what I currently use.
c. Looks okay but is about the same as what I'm using now.
d. My current product would serve me better.
e. I am not at all interested in this product.

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Product Concept Test


This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.13


This survey is about the Company’s brand(s) / product(s) / service(s) as described here:
1. How would you best describe your familiarity with a brand / product / service like that
described above?
a. I was not aware of such a product/service
b. Only generally aware
c. Have investigated or researched such products
d. Have demonstrated a product like this
e. Have purchased or regularly use a product like this

2. Having been told / seen a list of features that are part of the product: How important is each
feature to you?
a. Not At All Important
b. Extremely Important

3. Rank the features in order of importance:

4. How favourable is your overall reaction to the Product/Service?


a. Poor
b. Fair
c. Good
d. Very good
e. Excellent

5. What is it that you like most about the product(s)?

6. What do you like least about the product(s)?

7. Based on the product description, how interested would you be in buying this product if it
were within your budget?
a. Not at all interested
b. Not very interested
c. Not sure
d. Somewhat interested
e. Extremely interested

8. About what would you expect to pay for the product(s)?

9. How often do you / would you use product(s) in this category?


a. Once a week or more often
b. 2-3 times a month
c. Once a month
d. Every 2-3 months
e. 2-3 times a year
f. Once a year or less
g. Do not use

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Product Survey
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.14

1. Have you ever purchased the product(s) from the retailer?

2. Overall, how would you rate the retailer?


a. Excellent
b. Good
c. Average
d. Poor
e. Terrible

3. How satisfied are you with the service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied

4. Would you recommend the retailer to a friend? If not, why not?

5. For your NEXT product purchase, how likely are you to purchase from the retailer?
a. Very likely
b. Somewhat likely
c. Not sure
d. Somewhat unlikely
e. Very unlikely

6. Which of the following modes did you use for your last purchase of the product(s)?
a. Store
b. Mail order
c. Internet
d. Over the phone
e. Other

7. What are the THREE main reasons you didn't purchase the product(s) from the retailer?

8. If you could change something about the retailer what would it be?

9. Are there any other comments you have for the retailer?

10. How did you first discover this product was available for purchase?
a. Advertising - TV, newspaper, magazine, radio
b. Ad in another product(s) - brochure, preview
c. Friends/Family/Someone told me about it
d. Read a magazine article/review
e. Saw it in the store/Browsing in store
f. Through the mail/mail catalogue
g. Other

11. What is the one reason you purchased this product?


a. Someone asked for it
b. Own other products and wanted more

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c. It is familiar
d. Good for the whole family
e. Saw it in the store
f. I like the product(s)
g. It was on sale
h. Other

12. Which store did you purchase this product from?


13. How much did you pay for this product?
14. How many total products do you own?
15. How many total products of any brand do you own?
16. How many total products have you purchased in the past 12 months?
17. How many total products of any brand have you purchased in the past 12 months?

18. If you do not have all of your service work done at this company, tell us why:
a. Location
b. Quality of service
c. Price
d. Parts not available
e. Treatment by personnel
f. Cannot get work done quickly enough
g. Service Department hours
h. Length of time to get service at companies
i. Time it takes to get repair order written up
j. Other

19. Have you returned to this company for any type of service during the past 12 months?
a. Yes
b. No
c. Not sure
20. For your most recent visit to this company, what type of service did you have done?
a. Routine maintenance
b. Repairs
c. Service repairs you paid for
d. Warranty-covered repairs
e. Other

21. Overall, how satisfied are you with this service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

22. Did you have any concerns with the company’s handling of this service visit?
a. Yes
b. No

23. Did you let the company know about your concern(s)?
a. Yes
b. No

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24. Was your concern(s) resolved?


a. Yes
b. No

25. How satisfied were you with the action taken by the company to address your concern(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

Product Purchases
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.15

1. How often do you buy the product(s)?


a. Once per week or more often
b. 2 to 3 times per month
c. Once per month
d. Once every 2-3 months
e. Once or twice a year
f. Less than once a year
g. Not sure

2. How likely are you to buy the product(s) in the future?


a. Very Unlikely
b. Somewhat Unlikely
c. Not sure
d. Somewhat likely
e. Very likely

3. Over all, how satisfied are you with the product(s)


a. Very satisfied
b. Somewhat satisfied
c. Neutral
d. Somewhat dissatisfied
e. Very dissatisfied

4. What are some aspects of the product(s) that can be improved?

5. Based on your experience, how does the product(s) compare with other brand product?
a. the product(s) is better
b. About the same
c. the product(s) is worst
d. Not sure

6. How often do you typically use the product(s)?


a. Daily
b. Weekly

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c. Less than monthly


d. Do not use
e. Not sure

7. Where do you primarily use the product(s)?


a. At home
b. At the office
c. Another location
d. Do not use it

8. How frequently are you using the product(s) as compared to a month ago?
a. More frequently
b. About the same
c. Less
d. Not sure

9. Do you wait for the product(s) to go on sale to purchase it?

10. Do you typically read the back and side panel of the products package?
a. Yes
b. No
c. Don't remember

11. How familiar are you with the product(s)


a. Use it on a regular basis
b. Use it sporadically
c. Heard of it but never used it
d. Never heard of it

12. What other brands of product(s) in this category have you heard of or used before?
a. Brand A
b. Brand B
n
c. Brand
d. Don't know
e. None or Other

13. Which of the following attributes enticed you to try the product(s) initially?
a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Not sure or Other

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Customers’ Electrical / Electronic Product Purchases


This is a Differential Analysis Survey.
This Survey is on specific Product Items. A list of the available product items will be found in the Core
Database:

Customer Surveys as an Excel file: Part_N.1.16

1. Approximately how many times did you shop for electrical or electronic products in the past
year?
2. Indicate the approximate total amount your family spent on electrical or electronic products
within the last year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Don't know/Not sure

3. During the past year, have you or a member of your family purchased a major electrical or
electronic product?
4. If yes, what item was purchased?
a. TV (priced more than $800)
b. TV (priced between $400 and $799)
c. TV (priced less than $400)
d. DVD Recorder / Home cinema
e. Home Computer
f. Household White Goods

5. What was the total amount spent on the item(s)?


6. If you purchased accessories, how much did you pay for these items?
7. While deciding to purchase the products:
a. How many phone calls were made to retailers for information about the product?
b. How many visits did you make to different retailers?

8. The total number of hours spent inside retail stores while making this decision?
9. How many brands or individual products did you examine in the different retail stores?
10. The item was purchased:
a. as a gift for someone not in your household.
b. as a gift for someone in your household.
c. to be used mostly by other members of your household.
d. to be used mostly by yourself.
e. Other

11. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. More than 5 times
f. Don't know/Not sure

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12. Which of the following have you purchased most recently?


a. Microwaves
b. Audio/car stereo/radios
c. Calculators
d. Video / Computer games
e. Computer
f. Phones
g. TVs
h. DVDs
i. Cameras
j. Household white goods
k. Other

13. Approximately how many times did you shop for electronic products in the past year?

14. Indicate the approximate total amount your family spent on electronic product within the last
year.
a. Less than $300
b. $300 - $499
c. $500 - $799
d. $800 - $999
e. $1,000 - $2,499
f. More than $2,500
g. Can't say

15. During the past year, have you or a member of your family purchased a major home
appliance or white good product?
16. How much did you pay for the item(s)?

17. If you purchased accessories, how much did you pay for these items?
18. How many phone calls were made to retailers while deciding to purchase this product?
19. How many times did you visit the different retail stores?
20. The total number of hours spent inside retail stores while making this decision?
21. How many brands or individual products did you examine in the different retail stores?
22. The item was purchased for the following reasons

23. How many times have you purchased items in this product category in the past 10 years?
a. 0
b. 1
c. 2
d. 3-4
e. 5-6
f. More than 6 times

24. Which of the following have you purchased within the last month?
a. Microwave
b. Household white goods
c. audio/car stereo/radio/cassette
d. Calculator
e. Video / computer game
f. Computer
g. Phone
h. TV

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i. DVD or Home cinema


j. Camera
k. Other

25. In thinking about your most recent experience with the Company, was the quality of customer
service you received:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor

26. If you were not totally satisfied with the customer service, describe the reasons for your
dissatisfaction.

27. Was the process for getting your question resolved:


a. Excellent
b. Good
c. Average
d. Poor
e. Very poor

28. If you were not totally satisfied with the process of getting your problem resolved, describe the
reasons for your dissatisfaction.

29. Would you say the value of the Company product, as compared to its price, is:
a. Excellent
b. Good
c. Average
d. Poor
e. Very poor

30. The following questions pertain to the customer service representative you spoke to most
recently:
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

31. The customer service representative was very courteous.


32. The customer service representative handled my call quickly.
33. The customer service representative was very knowledgeable.

The following questions pertain to the process by which your most recent service contract
was handled:
34. The waiting time for having my questions addressed was satisfactory.
35. My phone call was quickly transferred to the person who best could answer my question.
36. The automated phone system made the customer service experience more satisfying.
37. Consider the total package of the Company including customer service, features and benefits,
and cost. How satisfied are you with the company?

38. If the Company’s Products were no longer available, what would you replace it with?
a. Functional Competitors

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b. In-Kind Competitors

39. All things considered, over the next 12 months how likely are you to replace the Company's
Products?
a. Certain
b. High Chance
c. Not sure
d. Low Chance
e. Never

40. If you are looking to replace Company's Products, what are some of the reasons for doing
so?

41. Overall how satisfied are you with the product(s)?


a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

42. What are some things that the Product/Service could do better?
43. In your opinion is the product better, about the same or worse than other company’s
product(s)?
a. Better
b. About the same
c. Worse

44. How often do you typically use the product?


a. Daily
b. weekly
c. Less than monthly
d. Do not use

45. Where do you primarily use the product(s)?


a. At home
b. At the office
c. Another location outside the house
d. Not using it
e. Other

46. How often are you using the product(s) as compared to a month ago?
a. More
b. About the same
c. Less
d. Can't say

47. Do you usually buy this product on sale?


a. Yes
b. No
c. Doesn't matter

48. Do you typically read the back and side panel of the products package?
a. Yes

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b. No
c. Not sure

49. How familiar are you with the product(s)?


a. Very familiar (use on a regular basis)
b. Somewhat familiar (use it only sometimes)
c. Familiar but never used it
d. Never heard of product before

50. What other brands of product(s) in this category have you heard of?

51. What were reasons for trying this product?


a. Looks good
b. Easy to use/convenient
c. Price Value
d. Solves Problem
e. Readily available
f. Best quality
g. Good selection
h. Just what I need
i. Advertising
j. Have not used
k. Other

52. How much did you pay for the product(s)?

53. How long have you used the product(s)?


a. Less than 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. 1 to 3 years
e. Not sure
f. Never used
g. Other

54. How often do you use the product(s)?


a. Daily
b. Once/week
c. 2 to 3 times a month
d. Once/month
e. Ever 2-3 months
f. 2-3 times a year or less
g. Not sure
h. Other

55. Overall, how satisfied are you with the Product / Service?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

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56. How likely are you to use/purchase the product(s) again?


a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
f. Never used

57. Would you recommend the Product or Service to others?


a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not
f. Never used

58. What recommendations would you offer for improving the Product or Service?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Customers’ Fashion Demographic and Retail Clothing Shopping

This is a Differential Analysis Survey of female respondents.

Customer Surveys as an Excel file: Part_N.1.17

Demographics plus use of clothes price to help profile the shopper:

1. Within what price range are the daytime clothes you typically purchase?
a. $30.00 or less
b. $30.01 to $50.00
c. $50.01 to $70.00
d. $70.01 to $90.00
e. $90.01 to $110.00
f. $110.01 to $130.00
g. $130.01 to $150.00
h. $150.01 to $170.00
i. $170.01 to $210.00
j. More than $210.00

2. When shopping for everyday clothes, how many stores do you typically visit?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Customers’ Fashion Attitudes

This is a Differential Analysis Survey of female respondents.

Attitudes and Life Style for clothing and fashion shopping:

Customer Surveys as an Excel file: Part_N.1.18

Listed below are statements about shopping behaviour for clothes and about clothing fashions:

1. I buy clothes I like, regardless of current fashion.


2. I buy new fashion looks only when they are well accepted.
3. I am not as concerned about fashion as I am about modest prices and functionality.
4. I prefer to buy well-known designer labels rather than take a chance on something new.
5. My friends regard me as a good source of advice on fashion selection.
6. I am confident of my own good taste in clothing.
7. I'm not afraid to be the first to wear something different in fashion looks.
8. I like to buy clothes.
9. I feel good when I buy something new.
10. I like clothes that make the most of my figure.
11. I am the first to try new fashions; therefore many people regard me as being a fashion
pacesetter.
12. In this period of rising prices, spending excessive amounts of money on clothes is ridiculous.

13. What you think of yourself is reflected by what you wear.


14. I plan my shopping trips carefully.
15. You can tell you are just a bit better than someone else if you dress better than they do.
16. A man wouldn't look twice at a woman who wasn't well dressed.
17. A woman wouldn't look twice at a man who wasn't well dressed.
18. Wearing good clothes is part of leading the good life.
19. I plan my wardrobe carefully.
20. I resent being told what to wear by so-called fashion experts.
21. I like clothes that emphasise my femininity.
22. Fashion in clothing is just a way to get more money from the consumer.
23. I often find I don't have all the accessories to go with my outfits.
24. I shop for coordinated outfits.
25. There is something wrong with a woman who doesn't care about dressing nicely.
26. There is something wrong with a man who doesn't care about dressing nicely.

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Shopping Life Style Battery


Life style questions for classification of retail shoppers:

Customer Surveys as an Excel file: Part_N.1.19

Statements about shopping behaviour for clothes and about clothing fashions.

1. I don't like to go shopping.


2. I buy less clothing because of rising prices.
3. I like having something suitable to wear for any occasion.
4. I make purchases only when there is a need, not on impulse.
5. I often go shopping to get ideas even though I have no intention of buying.
6. I prefer to shop in stores that offer a wide variety of clothing selections.
7. I shop only when I have to replace items which have worn out or are out of style.
8. I go shopping often.
9. I like to go to stores to see what's new in clothing.
10. I make fewer shopping trips because of the high cost of gasoline.
11. Because of my active lifestyle I need a wide variety of clothes.
12. I like to shop in many different stores.
13. I find more of my clothes and accessories in off-beat shops than in traditional department and
specialty shops.
14. I am current with forward fashion trends as pictured in advanced fashion magazines.
15. I like to experiment with my clothes so that I won't look like everyone else.
16. I like classic looks, but only if they are updated to reflect current fashion trends.
17. I don't buy clothes that would make me stand out from everyone else.
18. I prefer traditional styling in my clothes.
19. If I have the time to select clothes, I tend to buy fewer

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Supermarket & Food Shopping Attitudes


This is a Differential Analysis Survey.

Supermarket & Food shopping attitude inventory:

Customer Surveys as an Excel file: Part_N.1.20

Views on supermarket & food store shopping issues.

1. I prefer to invite friends over for dinner rather than take them out to eat.
2. If a product is out of stock in a supermarket I would substitute rather than go to another store
to get it.
3. I would rather shop in a large supermarket than a small supermarket.
4. I enjoy preparing meals at home.
5. I plan meals ahead of my shopping trip.
6. A supermarket is a good place to buy CDs and tapes.
7. I like supermarket shopping.
8. If they were available, I would buy hot, ready-to-eat foods (e.g., pizza, chicken) in a
supermarket.
9. Supermarkets make too much money.
10. I use as many coupons as I can to keep my grocery bill down.
11. A supermarket is a good place to buy automotive products.
12. I like to try new grocery products when they first come out.
13. Supermarkets do a good job in meeting the needs of single shoppers.
14. Too many products are out of stock when I shop.
15. The way supermarkets are laid out makes it easy to find the products I need.
16. Supermarkets would overcharge if they thought they could.
17. I try to save time by buying all groceries at one store.
18. I have been buying less Convenience Foods to cut back on my grocery spending.
19. Computerised checkout scanners benefit shoppers.
20. I normally buy some products on my grocery shopping trip that I hadn't planned to.

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Supermarket & Food Store Selection Criteria


This is a Differential Analysis Survey.

Battery of questions to identify factors important in selection of a Supermarket or Food Store:

Customer Surveys as an Excel file: Part_N.1.21

Select the answer that best expresses how important you think the factor is to you in selecting a
supermarket.

1. Fast checkout
2. A gourmet food section
3. Low priced advertised specials
4. Close to where you live
5. Offers coupons in newspaper advertisements
6. Courteous, friendly employees
7. Offers generic products
8. Makes it easy to cash checks
9. Large selection of wines
10. Offers several brands to choose from in a category
11. Provides menu and recipe ideas
12. Convenience of parking
13. High quality fruits and vegetables
14. Has a prescription pharmacy in store
15. Wide selection of ethnic foods (i.e., Mexican, Japanese, etc.)
16. Open 24 hours
17. Quality of meat cuts
18. Wide selection of store private labels
19. A service deli (with clerks to prepare product of your choice)
20. Provides nutritional information about products
21. Wide selection of national brands
22. Has bakery in the store
23. Offers a variety of health and personal care products
24. Offers variety of smaller size (e.g., single serving) products
25. Large selection of fruits and vegetables
26. Sells fresh seafood

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Where would you shop for...?


This is a Differential Analysis Survey.

Comparative list of retail merchandise items to profile store preference by merchandise category:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.22

Thinking of all the stores in this area where you or your family might shop, in which store would you
most likely shop for the following items?

1. Men's underwear
2. Women's underwear
3. Sports equipment
4. Men's sweaters
5. Women's dresses
6. Fishing tackle
7. Costume jewellery
8. Maintenance-free battery for a car
9. Auto oil filter and/or motor oil
10. Power lawnmower and other power garden tools
11. Exterior house and trim paint
12. Jeans for yourself
13. Small kitchen appliances
14. Sports or casual slacks
15. Portable TV
16. A digital camera
17. Installation of a car exhaust system
18. Ceiling fans and accessories
19. Paint for your living room
20. Small power tools such as a power drill
21. Mobile phone
22. Hand tools such as hammers, screw drivers
23. Easy to assemble furniture
24. Exercise equipment
25. Bicycles for yourself or your children

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Service Concept Test


This is a Differential Analysis Survey.

Customer Surveys as an Excel file: Part_N.1.23


1. Rating of the Company’s Service Offerings:
a. Low
b. High
c. Quality
d. Price
e. Trustworthy Brand
f. Craftsmanship/Design
g. Value for Price Paid

2. What features/attributes of this service are the most valuable to you?


3. What do you find least appealing about this service?

4. Overall, how interested are you in buying this service in the future?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested

5. Based on the description, what price would you expect to pay for the service?
6. If additional features were added to the basic concept, what would expect to pay?

7. If you wanted to buy/have this new service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other

8. Which groups of people do you expect to be the greatest users of this service?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other adult
g. Teen 13-18 years
h. Child 8-12 years
i. Child 2-7 years
j. Infants

9. How often do you use products from this service(s) category?


a. Every day
b. Once a week
c. About every two weeks
d. Once a month
e. Every three months
f. Two-three times a year
g. Once a year
h. Less often
i. Never used

10. How aware are you of the following companies that offer similar services?

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Customer service evaluation and feedback survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.24
1. How did you contact customer service?
a. Email
b. Fax
c. Telephone
d. Web
e. In person
f. Other

2. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds
c. About 1 minute
d. 2-5 minutes
e. More than 5 minutes
f. I left a message
g. Does not apply
h. Other

3. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me
g. Does not apply

4. What was your reason for contacting customer service?


a. Not satisfied with product
b. Did not receive product
c. Unable to order product/service
d. Problem with Web site
e. Needed more product information
f. Cancel subscription or membership
g. Other

5. Overall how satisfied are you with the company’s customer service representative?
a. Very satisfied
b. Satisfied
c. Average
d. Dissatisfied
e. Very dissatisfied
f. Very dissatisfied

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Customer Service Evaluation


Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.25

1. Have you ever bought / ordered the product(s) from the retailer?

2. Overall, how would you rate the Customer Service from retailer?
a. Excellent
b. Good
c. Average
d. Poor
e. Terrible
f. Not Sure

3. How satisfied are you with the Customer Service from the retailer?
a. Extremely satisfied
b. Very satisfied
c. Neutral
d. Very dissatisfied
e. Extremely dissatisfied

4. Would you recommend the Customer Service from the retailer to a friend?
a. Yes
b. No
c. Not Sure
d. If no, why not?

5. For your NEXT product(s) purchase, how likely are you to purchase from the retailer?
a. Definitely would buy
b. Probably would buy
c. Might or might not buy
d. Probably would not buy
e. Definitely would not buy

6. Which of the following modes did you use to place the order for the product(s)?
a. In-store
b. Mail order
c. Internet
d. Over the phone
e. Fax
f. Other

7. What are the THREE main reasons you didn't purchase the product(s) from another
company?

8. What would you change about the process of purchasing the product(s) (i.e. placing the
order, mode of payment, delivery, etc.) from the retailer?

9. How did you contact customer service?


a. Email
b. Fax
c. Telephone
d. Web
e. In person
f. Other

10. If you called on the phone, how quickly did you get through?
a. Immediately
b. Under 30 seconds

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c. About 1 minute
d. 2-5 minutes
e. More than 5 minutes
f. I left a message

11. If you contacted customer service by fax or email, how long did it take to get a response?
a. Under 2 hours
b. 2-6 hours
c. 6-12 hours
d. 1 business day
e. More than 1 business day
f. They didn't get back to me

12. What was your reason for contacting customer service?


a. Not satisfied with product
b. Did not receive product
c. Unable to order product/service
d. Problem with Web site
e. Needed more product information
f. Cancel subscription or membership
g. Other

13. Overall, how would you rate your satisfaction with the company’s customer service
representative?
a. Extremely satisfied
b. Satisfied
c. Neutral
d. Unsatisfied
e. Extremely unsatisfied

14. Do you have comments or suggestions that would help us improve the company’s customer
service?

15. Overall, I am very satisfied with the way the retailer performed (is performing).
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

16. Service representatives are well trained.


17. Service representatives are well supervised.
18. Service representatives adhere to professional standards of conduct.
19. Service representatives act in the company’s best interest.
20. Overall, I am satisfied with the service representatives.

21. The senior staff are knowledgeable and professional.


22. I feel like I have a good personal relationship with the senior staff.
23. The senior staff are making a positive contribution to the company’s business.
24. The senior staff responds to the company’s inquiries in a timely manner.
25. Overall, I am very satisfied with the senior staff.

26. What would be the primary reason for being very satisfied with the retailer service
representatives?

27. What would be the primary reason for being very satisfied with the retailer store senior staff?

28. Compared to how you felt about the retailer before, what would you say is the likelihood of
purchasing again?
a. Better, based on performance

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b. About the same


c. Worse, based on performance
d. Not sure

29. Considering the overall value of the project you paid for, was it
a. An exceptional value, worth more than you paid for it
b. A good value, worth about what you paid for it
c. A poor value, worth less than you paid for it
d. Not sure

30. Overall, how do you feel about your experience the service provided?
a. Excellent
b. Very Good
c. Good or Fair
d. Poor

31. How would you rate the product for ease of use?
a. Excellent
b. Very Good
c. Adequate
d. Poor or Very Poor

32. In speaking with the support representative, how would you rate the following?
a. Friendly
b. As friendly as I expected
c. Friendly
d. Average
e. Less friendly than I expected
f. Unfriendly

33. Professionalism
a. As professional as I expected
b. Professional
c. Neither professional nor unprofessional
d. Less professional than I expected
e. Unprofessional

34. Interest in solving your problem


a. As interested as I expected
b. Very interested
c. Interested
d. Neither interested nor uninterested
e. Uninterested

35. When solving your problem, how would you rate the information provided?
a. Extremely well presented and understandable
b. Well presented and understandable
c. Sufficient to solve the problem
d. Difficult to understand
e. Extremely difficult to understand

36. Understanding of the problem


a. Very satisfied that my problem was understood
b. Somewhat satisfied that my problem was understood
c. Unsure that my problem was understood
d. My problem was not understood
e. Did not have the ability to solve my problem

37. Was your problem solved on this call?


a. Yes

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b. No

38. If you needed to contact the company's support service again and were given the option to
speak with this representative, would you?
a. Yes
b. No

39. How would you rate the company's support as compared to that of other companies?
a. much better than other companies' support.
b. better than other companies' support.
c. about the same quality as other companies' support.
d. worse than other companies' support.
e. much worse than other companies' support.
f. I have never contacted another company for support.

40. What features/attributes of this support service are the most valuable to you?
41. What do you find least appealing about this support service?
42. Overall, how interested are you in buying this support service?
a. Not at all interested
b. Not very interested
c. Neither interested nor uninterested
d. Somewhat interested
e. Extremely interested

43. Based on the description, what price would you expect to pay for the support service?

44. If you wanted to use the support service, which purchase method would you most prefer?
a. Calling and ordering by telephone
b. Ordering through the mail
c. Going to the company/place of business/office
d. Using the Internet
e. Other

45. Who do you expect will use the support service most?
a. Self
b. Family member
c. Co-worker
d. Business/Organisation
e. Student
f. Other

46. How often do you use products from this product(s) in this category?
a. Every day
b. Once a week
c. Once a month
d. Every three months
e. several times a year
f. Less often
g. Never used

47. How aware are you of the following companies that offer similar services?

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Customer Support Satisfaction Survey


Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.26
1. Do you consider the problem resolved?
2. Was your question or issue resolved the first time you contacted technical support?
3. What is your overall satisfaction with this particular phone support experience?
4. Did you attempt to use the company’s online support web site before making this call?
5. If yes, how satisfied were you overall with this online support experience?
6. How satisfied are you with the company’s technical support in general?
7. We sincerely appreciate any comments or suggestions you have which will improve your
satisfaction with the company’s service.
8. In your most recent customer service experience, how did you contact the representative?
a. In person
b. By telephone
c. Internet
d. Through a dealer
e. Other

9. There was sufficient information available on the support web site to solve my problem.
a. Strongly Agree
b. Somewhat Agree
c. Neutral
d. Somewhat Disagree
e. Strongly Disagree

Did the company’s representative:


10. Quickly identify the problem
11. Appear very knowledgeable and competent
12. Help you understand the causes and solution to your problem
13. Handle problems with courtesy and professionalism
14. About how long did you have to wait before speaking to a representative?
a. I was taken care of immediately
b. Within 3 minutes
c. 3-5 minutes
d. 5-10 minutes
e. More than 10 minutes
15. About how long did it take to get this problem resolved?
a. Immediate resolution
b. Less than one day
c. Between 1 and 3 days
d. Between 3 to 5 days
e. More than a week
f. The problem is still unresolved
16. How many times did you have to contact customer service before the problem was corrected?
a. Once
b. Twice
c. Three times
d. More than three times
e. The problem is still not resolved

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17. Overall, how satisfied are you with the customer service experience?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
18. If you were less than totally satisfied, what could have been done to serve you better?

Product or Technical Services Evaluation


Where applicable.

Customer Surveys as an Excel file: Part_N.1.27


How satisfied are you:
1. With your experience of the most recent company Product or Technical Services?
2. With the timeliness of the company's Product or Technical Services?
3. With the quality of the Product or Technical Services?
4. That company Product or Technical Services personnel are sufficiently knowledgeable and
professional?

5. With the company's Technical service overall?


a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure

6. With the communication between you and the company overall?


a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

7. With the overall quality of the company's sales service?


a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

8. With the overall value of the company's services compared with the price paid?
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

9. Would you recommend the company’s services?


a. Yes
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b. No
c. Not sure

Information about the Product / Brand purchased:

10. Name of store where purchased:


11. What type of Brand / product did you purchase?
12. How would you describe this purchase?
a. First time purchase
b. Addition to current Brand product(s) owned
c. Addition to product owned (other brand)
d. Replacement of Brand product owned
e. Replacement of product owned (other brand)

13. What other brands did you consider?

14. How do you plan to use this product?


a. For Home
b. For Work
c. For School
d. For the Outdoors
e. Other

15. Was this product...


a. received as a gift?
b. purchased?

16. How did you first learn about Brand products?


a. Friend/relative
b. Salesperson
c. Ads/promotions
d. Via the internet/website
e. In-store display
f. Other

17. Which of the following MOST influenced your purchase of Brand products?
a. In-store display
b. Previous experience with the brand
c. Price/Good value
d. Style/Appearance
e. Colour/Design
f. Size/Capacity
g. Weight
h. Warranty
i. Comfortable
j. Quality construction
k. Durability

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Satisfaction: Product & Technical Documentation


Customer Surveys as an Excel file: Part_N.1.28

1. How satisfied are you with the Technical Documentation


a. Very Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

2. Technical Documentation: with the appropriateness of the documentation to your needs?


3. Technical Documentation: with the quality of the documentation delivered?
4. Technical Documentation: with the accuracy of the documentation delivered?
5. Technical Documentation: with the usability of the documentation provided?
6. Technical Documentation: overall with the documentation provided?

7. What should the retailer do to improve the quality of the documentation?


8. The retailer understands the service needs of their customers.
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree

9. How would you rate the retailer overall?


a. Poor Fair
b. Good
c. Very Good
d. Excellent

10. Overall, the quality of Company's sales service is:


a. Poor Fair
b. Good
c. Very Good
d. Excellent

11. Overall, the value of Company's services compared with the price paid is:
e. Poor Fair
f. Good
g. Very Good
h. Excellent

12. Would you recommend Company's products / services to friends or colleagues?

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Customer Services Evaluation

Customer Surveys as an Excel file: Part_N.1.29


How satisfied are you:
1. with your experience of the most recent Technical Services or Product Services?
2. with the timeliness of the company’s Services?
3. with the quality of the company’s Services?
4. that the personnel are sufficiently knowledgeable and professional?
5. with the company’s installation service overall?

6. The company understands my service needs.


a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure

7. Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

8. Overall, the quality of the company's sales organisation's service is:


a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

9. Overall, the value of the company's services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

10. Would you recommend the company's services to family, friends or colleagues?
a. Yes
b. No
c. Not sure

Rate your satisfaction with the dealer service department on each of the following:

11. How satisfied are you with?


a. Ease of scheduling service?
b. Completion of the service in the time promised?
c. Explanation of the work performed?
d. Effort of the dealership to obtain parts
e. Overall performance of the person who prepared your service order?
f. Effort of the dealership to see that the service was done right?

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12. Select the category of service work performed for the last service visit:
a. Warranty
b. Non-warranty
c. Scheduled maintenance
d. Other

13. Was your product fixed right the first time?


a. Yes
b. No
c. Not sure

14. After your service visit, did someone from the company contact you by phone or by mail to
see if you were satisfied with the overall service experience?

15. Would you recommend this company to a friend or relative as a place to have their products
serviced?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not

16. Should you need service again, would you return to this company?
a. Definitely
b. Probably
c. Not sure
d. Probably not
e. Definitely not

17. If you are not totally satisfied with the service, state below the reason(s) for your
dissatisfaction.

Indicate your opinion of the following statements about salespersons:

18. Salespeople are knowledgeable about their products.


19. Salespeople promptly service customers as they enter the store.
20. Salespeople are courteous.
21. Salespeople are well groomed.
22. Salespeople accurately presented product information.
23. Salespeople adequately explained service policy.
24. Salespeople are friendly.
25. I am very satisfied with the customer service at the store.

26. How long did you have to wait before a salesperson attended to you?
a. 0-2 minutes
b. 3-5 minutes
c. 6-10 minutes
d. 11-15 minutes
e. more than 15 minutes

27. On your most recent service, how would you rate the service in the following areas?
a. Quality of work performed
b. Avoiding inconveniencing you
c. Making you feel comfortable
d. Willingness to go out of their way to satisfy you
e. Friendliness and helpfulness of cashiers
f. Having convenient hours for service
g. Ease of obtaining an appointment

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h. Quickly acknowledging your arrival


i. Promptness in handling repair work
j. Arranging replacement
k. Performance of repairs
l. Clean, comfortable waiting area
m. On time delivery

28. Did the following things occur on your most recent service visit?
a. You were explained the work to be performed beforehand.
b. You were explained the work performed and the breakdown of the charges.
c. You were informed when the work was done.
d. The paperwork was completed and waiting
e. They contacted you to ensure the work was performed to your satisfaction

29. What could the company do to improve the service experience?

30. How satisfied are you with the customer service you received most recently:
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

31. If you were not totally satisfied with the customer service, describe the reason(s) for your
dissatisfaction?
32. Describe the aspects of the service that you were completely satisfied with?

33. How satisfied are you with the process of getting your question resolved.
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

34. If you were not totally satisfied with the process of getting your question resolved, describe
the reason(s) for your dissatisfaction?
35. If you were satisfied with the process of getting your question resolved, describe the
reason(s) for your satisfaction?

36. How would you rate the product's value for money:
a. Excellent
b. Good
c. Fair
d. Poor
e. Not sure

37. What aspects of the product(s) were of no benefit to you?


38. What aspects of the product(s) were most beneficial for you?

Choose an option that closely represents your opinion about the customer service representative that
you spoke to recently:

39. The customer service representative was very courteous.


a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

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40. The customer service representative handled my call quickly.


a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

41. The customer service representative was very knowledgeable.


a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

Choose an option that closely represents your opinion about the process with which your most recent
service contract was handled:

42. The waiting time for having my questions addressed was satisfactory.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

43. My phone call was quickly transferred to the person who best could answer my question.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

44. The automated phone system made the customer service experience more satisfying.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree

Consider the total package i.e. the customer service, the product(s) features, benefits, and cost:

45. How satisfied are you with the company?


a. Very Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very Dissatisfied

46. If the product(s) were no longer supplied by the company, what would you replace it with?
a. Functional Competitors
b. In-Kind Competitors

47. All things considered, over the next 12 months how likely are you to replace the Company’s
product(s) with a Competitor’s Products?
a. Very certain
b. High chance
c. Low chance
d. No chance

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e. Not sure

48. What are some of the reasons that you are looking to replace the Company’s product(s)
during this year?

Help Desk Support:


How satisfied are you with:
49. overall quality of telephone support?
50. overall quality of on-site support?
51. knowledge and professionalism of the help desk support staff?
52. knowledge and professionalism of on-site support engineers?
53. communication and follow-up on problem resolution?
54. ability of help desk to diagnose your problem?
55. ability of the help desk to solve your problem?
56. time required to resolve your problem?
57. overall quality of the solution?
58. maintenance services offered?

59. How could the company improve the quality of support we provide to you?

60. The company understands the service I need.


a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
f. Not sure

61. Overall, how satisfied are you with the amount of contact between you and the company?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
f. Not sure

62. Overall, the quality of the company's sales department service is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

63. Overall, the value of the company services compared with the price paid is:
a. Excellent
b. Very good
c. Good
d. Fair
e. Poor

64. Would you recommend the company services to family and friends?
a. Yes
b. No
c. Not sure
d. Other

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65. In evaluating your most recent customer service experience, was the quality of service you
received:
a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent

66. What about the service experience stands out?

67. Was the process for getting your problem resolved:


a. Very poor
b. Somewhat unsatisfactory
c. About average
d. Very satisfactory
e. Excellent

68. What about the process of getting your problem resolved stands out?

Evaluate the customer service representative:

69. The customer service representative as very courteous.


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

70. Was there anything about the courteousness of the service that stands out as being
superior?
a. Patient
b. Enthusiastic
c. Listened carefully
d. Friendly
e. Responsive
f. Other

71. What about the representative could be improved?


a. Not patient
b. Not enthusiastic
c. Didn't listen carefully
d. Unfriendly
e. Unresponsive
f. No improvement needed
g. Other

72. The customer service representative handled my call quickly.


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

73. What would best describe what happened?


a. Kept me waiting on hold
b. Had to explain several times
c. Didn't know how to handle the problem
d. Had to ask others
e. Spoke slowly

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f. No improvement needed
g. Other

74. The customer service representative was very knowledgeable.


a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

75. What would best describe what happened?


a. Gave me the wrong information
b. They didn't understand the question
c. Gave unclear answers
d. Couldn't solve problem
e. Disorganised
f. No improvement needed
g. Other

76. The waiting time for having my question addressed was satisfactory.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

77. My phone call was quickly transferred to the person who best could answer my question.
a. Strongly disagree
b. Somewhat disagree
c. Neutral
d. Somewhat agree
e. Strongly agree

78. How long have you used the service(s)


a. Less than one month
b. 1 to 6 months
c. 6 months to a year
d. 1 to 3 years
e. Over 3 years
f. Never
g. Other

79. How often do you use the product(s) / service(s)?


a. Daily
b. Once/week or more
c. 1 to 3 times a month
d. Once/month
e. Every 2-3 months
f. 2-3 times a year
g. Other

80. Overall, how satisfied are you with the product(s) / service(s)?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied

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81. How likely are you to use/purchase the product(s) / service(s) again?
a. Very likely
b. Probably
c. Maybe
d. Probably not
e. Definitely not
f. Never used

82. Would you recommend the product or service to others?


a. Definitely
b. Probably
c. Maybe
d. Probably not
e. Definitely not
f. Never used

83. What recommendations would you offer for improving the product(s) / service(s)?

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Website Evaluation
Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.30
1. How often you visit the company’s website.
a. Everyday
b. Once a week
c. Once a month
d. Rarely

2. When you visit the site, are you using the computer from
a. Office
b. Home (including a home office)
c. Equally from the home and office
d. Other

3. Would you say the company’s web site is:


a. Very attractive
b. Somewhat attractive
c. Average
d. Not very attractive

4. How much effort did you have to take to find the company’s web site?
a. A lot less than I expected
b. Less than I expected
c. About what I expected
d. More than I expected

5. From your experience with other sites, rate the following features of the web pages:
a. Visual appearance/layout
b. Content
c. Writing style

6. From your experience, what do you find is the biggest challenge in using the company’s site?
a. I am new to the Internet
b. Information I am looking for is not available
c. Information is not well organised
d. There is just too much information
e. Hard to navigate through the information
f. Takes too long to load a page
g. Downloadable files or forms are in a format I cannot use

7. Did the menu of items on the home page make sense to you?
8. Did you experience any problems downloading files?

9. How did you hear about the Website?


a. Literatures: list source
b. Hotline
c. Retailer
d. Industry
e. Newsletters/literature
f. Media (newspaper, radio, TV)
g. Associate/friend
h. Followed Link from another web page
i. Search engine or Other

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Online Retailer Evaluation


Battery of questions focusing on attitudes about purchasing online and at this company’s site:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.31


Thinking about your experience with this internet retailer, indicate your opinions about the following
statements:
1. I prefer making a purchase from this Internet retailer over using local offices, malls or stores.
2. I prefer this Internet retailer over other home shopping services (i.e., catalogues, "1-800"
services or television).
3. This Internet retailer doesn't just sell products or services--it entertains me.
4. I received special rewards and discounts from doing business with this Internet retailer.
5. I say positive things about this Internet retailer to other people.
6. I consider this Internet retailer to be my first choice when I need products or services of this
type.
7. The "look" of this Internet site is appealing to me.
8. I really like doing business with this Internet retailer.
9. I intend to continue to visit this Internet retailer's site in the future.
10. I intend to purchase from this Internet retailer in the future.
11. This Internet retailer is one of the first places I intend to look when I need the type of
merchandise or services it provides.
12. It would require a lot of time and effort on my part, to set up an account with another Internet
retailer.
13. It would take a lot of time and energy to look for another Internet retailer for this type of
product.
14. The products and/or services I purchased from this Internet retailer were a good value.
15. I enjoy doing business with this Internet retailer.

Purchasing on the Internet


Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.32
1. Have you purchased products online, who did you purchase from, what did you spend?

2. In the past three months, have you purchased products or services through the Internet, for
your personal use?

3. Which products or services categories have you most recently purchased online?
a. Food
b. Clothing
c. Household goods & articles
d. Electricals & Electronic products
e. Computers or peripherals
f. Software
g. CDs/DVDs
h. Flowers
i. Concert tickets
j. Travel
k. Fast food

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l. Books or magazines
m. Services
n. Financial & Insurance products
o. Other

4. Thinking back to the Internet retailers you've purchased from, have you ever:
a. provided feedback of the product or services they sell
b. completed a survey for that Internet retailer
c. communicated with other users via e-mail or chat rooms
d. When you began shopping on the last occasion, were you:
i. Just surfing the net
ii. Intending to make a purchase.
iii. Other

5. How much did you spend on your most recent transaction?


a. Less than $25
b. $26-$50
c. $51-$75
d. $76-$100
e. Over $100

6. Did you return the merchandise or cancel the service after you received it?
7. Did you contact the customer service department of this Internet retailer with a complaint or
problem?

8. How much would you estimate you have spent with this Internet retailer in the past twelve
months?
a. less than $50
b. $51-$100
c. $101-$150
d. $151-$200
e. more than $200

9. How many transactions have you made with this Internet retailer over the past 12 months?

10. Which Internet retailers do you use most?

11. When you began shopping on the last occasion, were you:
a. Surfing the net with no intent to purchase
b. Surfing the net with intent to make a purchase.
c. Other

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Internet Habits and Uses


Habits and uses of Internet users:

Customer Surveys of Agrana Fruit: as an Excel file: Part_N.1.33


1. How comfortable do you feel using the Internet?
a. Very comfortable
b. Somewhat comfortable
c. Neither comfortable nor uncomfortable
d. Somewhat uncomfortable
e. Very uncomfortable

2. How satisfied are you with your current skills for using the Internet?
a. Very satisfied - I can do everything that I want to do
b. Somewhat satisfied - I can do most things I want to do
c. Neither satisfied nor unsatisfied
d. Somewhat unsatisfied - I can't do many things I would like to do
e. Very unsatisfied - I can't do most things I would like to do

3. How comfortable do you feel using computers, in general?


a. Very comfortable
b. Somewhat comfortable
c. Neither comfortable nor uncomfortable
d. Somewhat uncomfortable
e. Very uncomfortable

4. Some websites ask for you to register with the site by providing personal information. What
percentage of the time do you enter false information when asked to register?
a. Rather not say
b. I've never falsified information
c. Under 25% of the time
d. 26 - 50% of the time
e. 51 - 75% of the time
f. Over 75% of the time
g. I've never registered with a site

5. Why don't you purchase more products and services on the web, either for yourself or for
your work/business?
a. Not applicable
b. Never tried it
c. Too complicated to place order
d. Faster/easier to purchase locally
e. Not familiar with vendor
f. Don't trust that my credit card number will be secure
g. No receipt/documentation
h. Difficult to judge the quality of a product/service
i. Not enough information to make a decision
j. Generally uncomfortable with the idea
k. Other

6. In your opinion, what is the single most critical issue facing the Internet?
a. Finding things/navigating around
b. Speed/bandwidth
c. Government regulation
d. Equal access for all
e. Unacceptable adult content
f. Internet crime (e.g. hate crimes, stalking)
g. Paying for online services or information
h. Censorship
i. Privacy

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j. Other

7. Which of these groups have you become more connected to through the Internet?
a. None
b. People who share my political interests
c. People who share my hobbies/recreational activities
d. People who share my religion
e. People in my profession
f. People in my family
g. People in similar life situations (e.g. self-help groups, support groups)
h. Other groups

8. Complete the following sentence in the way that comes closest to your own views: "Since
getting on the Internet, I have "
a. become MORE connected with people like me.
b. become LESS connected with people like me.
c. Don't know/can't say

9. Which of the following have you done?


a. Ordered a product/service from a business, government or educational entity by filling
out a form on the web
b. Made a purchase online for more than $100
c. Created a web page
d. Customised a web page for yourself (e.g. Google, Yahoo, News Services)
e. Changed your browser's "startup" or "home" page
f. Changed your "cookie" preferences
g. Participated in an online chat or discussion (not including e-mail)
h. Listened to a radio broadcast online
i. Made a telephone call online
j. Used a nationwide online directory to find an address or telephone number
k. Taken a seminar or class about the Web or Internet
l. Bought a book to learn more about the Web or Internet

Differential Analysis
Decision making technique in which evaluation is confined to only those factors which are different or
unique among possible alternatives. In market forecasting methodology it usually involves 4 steps: (1)
compute all costs associated with each alternative, (2) ignore the sunk or past costs, (3) ignore costs
that remain largely constant among the alternatives, and (4) select the alternative offering the best
cost-to-benefit ratio. This algorithm is also called incremental analysis or relevant cost analysis.

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Part N.2 : Supplemental Retail Trade Survey Data

This data is available on a Corporate basis for Agrana Fruit


This section provides a battery of supplemental Trade and Industry Surveys.

Business Proficiency of the Company


Expert and Industry Appraisal of Agrana Fruit: as an Excel file: Part_N.2.1

1. Company leadership is fully committed to the long-term success of their sales partners.
2. Top management responds adequately to needs in the marketplace.
3. Top management strengthens the company's competitive position.
4. Company leadership can be trusted to do what they say they will do.
5. Company leadership is committed to support and work with the sales team.
6. The company and the sales team are unified, moving in one direction together.
7. The company and the sales team share a positive, winning attitude.
8. There is effective communications between the promotion agency and the company.
9. The promotion agency listens to and understands the sales team's needs.
10. The company's marketing is aligned in support of the sales network.
11. There is effective communications between the company's marketing group and the sales
teams in the field.
12. The marketing group listens to and understands sales teams' needs.
13. Employees understand the company's vision and values.

Ranking of the effectiveness of the Brand:


14. The strategic direction of the Brand.
15. The marketing plans for the Brand.
16. The company's investment in brand marketing this year.
17. The company's plan for media advertising.
18. The advertising creative executions.
19. The Brand Slogan advertising for product.
20. The company's planned channel support.
In evaluating the Company's competitive position, are they:
21. Aggressively pursuing market leadership.
22. Flexible in meeting customer's needs.
23. Reactive, following major competitors' actions.
24. Less effective than other competitors.

25. Retailer / Franchisee / Dealer Feedback

26. To what extent will the company give greater emphasis to effective business planning over
the next few years?
a. Great extent
b. Moderate extent
c. Slight extent
d. Not at all

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Organisational Satisfaction – Internal


Employee Surveys at Agrana Fruit: as an Excel file: Part_N.2.2

1. In your opinion, how have customer satisfaction ratings changed at your organisation in the
past year?
a. Improved considerably
b. Improved somewhat
c. Has remained about the same
d. Has declined somewhat
e. Has declined considerably
f. Don't know

2. In your opinion, how important is customer satisfaction within your organisation?


a. It's a high priority
b. It's a mid-level priority
c. It's a low priority
d. Don't know

3. Does your organisation have managers/staff dedicated to customer -satisfaction matters?


a. Yes
b. No
c. Don't know

4. How often does your organisation conduct surveys to evaluate customer satisfaction?
a. Monthly or more often
b. Quarterly
c. Semi-annually
d. Yearly or less often
e. We don't

5. Which one of the following means is used to evaluate customer satisfaction?


a. Questionnaires sent through the mail (in-house efforts)
b. Follow-up telephone calls (in-house efforts)
c. An outside firm has been hired to track customer satisfaction
d. Suggestion boxes placed in facilities
e. Other

6. Has your organisation initiated programs to improve customer satisfaction within the past
year?
a. Yes
b. No
c. Don't know

7. What sector of the industry do you believe needs the most improvement in customer
satisfaction?

8. What is the most compelling reason for your organisation to improve customer satisfaction?
a. Fear of losing customer to competitors
b. Fear of losing revenue
c. Fear of increased consumerism
d. Fear of damage to organisation's reputation
e. Other

9. In your opinion, has customer satisfaction been shown to have a direct effect on your
organisation's bottom line?
a. Yes

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b. No
c. Don't know

10. All employee applicants are screened with a test to determine their desire to serve customers.

11. We offer an unconditional 100% guarantee of satisfaction for everything we sell or service--
we make it easy for customers to return anything, without hassle.

12. We trust the judgment of the company’s employees and empower them to resolve customer
complaints on the spot.

13. We believe that the company’s employees and associates are the best ambassadors of the
company’s brand.

14. We measure customer satisfaction several times throughout the year.

15. Every employee and sales associate always greets customers by their names whenever we
speak to them.

16. Our customers can always talk to a "real" person.

Sales Staff Training Evaluation


Employee Surveys at Agrana Fruit: as an Excel file: Part_N.2.3
1. When did you start in your current position?
2. Were you given formal sales training with the company before you started your job?
3. Have you been given continuous sales training?
4. When was the last time you attended a training course?
5. Was the course arranged and conducted in-house, or has it conducted by an outside training
company.

6. Overall, how satisfied were you with your last training course:
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Extremely Dissatisfied
7. with the materials you received before the course and their value in preparing you to more
fully participate in the sessions?
8. with the "skill-based" training that emphasises interaction and participation?
9. with applying the business process to a specific product line?
10. with your ability to apply the knowledge and skills from the sessions?
11. with the overall logic and consistency to the series of sessions you attended?
12. that you received at least one specific skill or tool that will enable you to become more
effective in selling company products?
13. with the tools you have been provided to improve the satisfaction rating with your customers?
14. that there was a sufficient amount of time allocated to cover the content in the individual
sessions?

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15. that the information and skill building were relevant to your learning needs?
16. that the sessions changed your behaviour and enhanced your effectiveness in launching new
products?
17. that the information and skill building activities on maintaining and developing accounts were
relevant to your learning needs?
18. that you are incorporating the use of your existing sales analysis tools frequently enough in
calling on your existing accounts?
19. that you are focusing on providing Total Customer Satisfaction with every customer by
soliciting their problems and needs which are not being met?

Store Manager’s View of Brand Perception by Customers


Employee Surveys at Agrana Fruit: as an Excel file: Part_N.2.4
The Brand Test
1. Do you know, from your customers' perspective, what the most distinctive attributes are that
differentiate your brand from competitors?
2. Does your organisation have a brand promise, mission or vision statement?
3. Do you know your customers' perspectives regarding how they view your brand when
compared to your closest competitor?
4. Is your organisation’s leadership responsible for the brand’s success as opposed to the
marketing department?
5. In general, can most employees recite the brand promise, mission, vision statement, or their
key messages?
6. When important decisions need to be made regarding the brand, does someone represent
the customer's viewpoint?
7. Do you place a priority on being perceived by consumers--first and foremost--as a "friend"?

8. How familiar are your customers with the product(s)?


a. Never heard of it
b. I am aware but have never used it
c. Use it only sometimes
d. Use it on a regular basis

9. Which of these listed product Brands have your customers used?

10. How did your customers first hear about the product(s)?
a. TV
b. Radio
c. Magazine
d. Newspaper
e. Internet
f. Friend/relative/associate
g. Haven't heard of it before
h. Not sure

11. Overall, how do your customers rate the quality of the product(s)?

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a. Poor
b. Fair
c. Good
d. Very Good
e. Excellent

12. What is it that you personally would most like to change about the product(s)?

13. Would your customers recommend the product(s) to a friend or associate?


a. Definitely Not
b. Probably Not
c. Not sure
d. Probably
e. Definitely

14. When was the last time you personally used the product(s)?
a. Under 1 month
b. 1 to 6 months
c. 6 months to 1 year
d. Not sure

Retailer Survey on their e-Commerce


This survey is designed to obtain a better understanding of the retailer and their e-commerce
operations:

Employee Surveys at Agrana Fruit: as an Excel file: Part_N.2.5


1. What is the main retail category that your brick-and-mortar store(s) operates in?

Retail Brand on the Internet:


2. Compared to your online competitors, how would you rate the strength of your company's
retail brand on the Internet?
3. Overall, compared to other brands in your retail category, how would you rate the level of
awareness of your retail brand name on the Internet?
4. Overall, compared to other brands in your retail category, how would you rate the level of
quality associated with your retail brand name on the Internet?
5. Overall, compared to other brands in your retail category, how would you rate the level of
favourability associated with your retail brand name on the Internet?
6. Overall, rate the level to which your brand is recognised with its retail category on the Internet.

Distribution Operations:
7. Relative to the company’s competitors, products are consistently available in inventory.
8. Compared to the company’s competition, the time between receiving and shipping orders is
shorter.
9. Our company relies on supplier drop shipments to consumers to satisfy online orders.
10. Our company's distribution system can handle the volume of online orders.

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11. Relative to the company’s competition, online orders are filled from the company’s existing
inventory.
12. Compared to the company’s competition, the company’s relies heavily on backorders.

International Markets:
13. Before we started the company’s primary Web site, some people in the company had
experience in international markets.
14. My company knows how to market products in other countries.
15. Few people in my company's primary Web site operations are knowledgeable about foreign
markets.
16. Our e-commerce strategy considers differences between the home market and foreign
markets.

Internal Organisational Culture:


17. In general, the company’s e-commerce top managers favour a strong emphasis on marketing
tried and true products.
18. In the past year, my firm has marketed many new lines of products on the Web site.
19. In dealing with competitors, the company’s e-commerce approach is to respond to actions
which competitors initiate.
20. In dealing with competitors, the company’s e-commerce approach is to pursue an aggressive,
competitive posture.
21. In general, the company’s e-commerce top managers favour low-risk projects (i.e., projects
with certain rates of return).
22. In general, the company’s e-commerce top managers believe that bold, wide-ranging acts are
necessary to achieve the firm's objectives.
23. When confronted with decision-making situations involving uncertainty, the company’s e-
commerce approach is to adopt a cautious, "wait-and-see" posture.
24. Satisfying the company’s customers is the company’s most important business objective.
25. We constantly communicate the company’s commitment to serving customer needs.
26. We share information about the company’s successful and unsuccessful experiences across
all business functions.
27. Our strategy for competitive advantage is based on the company’s understanding of
customers' needs.
28. We measure customer satisfaction infrequently.
29. We have regular performance measures of customer service.
30. Our competitors are more customer focused than we are.
31. I believe that the company’s business exists primarily to serve customers.
32. Data on customer satisfaction are disseminated at all levels in the company’s e-commerce
unit on a regular basis.

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Channel Issues:
33. We find it difficult to change established procedures to cater to the needs of e-commerce
customers.
34. We can easily change the manner in which we carry out tasks to fit the needs of e-commerce.
35. This firm will not aggressively pursue an e-commerce strategy that causes existing
investments to lose value.
36. We are willing to sacrifice sales from existing channels in order to improve sales on the
company’s primary Web site.

Supplier Relations:
37. There is open communication between the company’s e-commerce business and the
company’s most important supplier.
38. Our e-commerce business and the company’s most important supplier share common
objectives.
39. Our most important supplier makes it difficult for the company’s e-commerce business to do
its job.
40. Our most important supplier does not like many of the things the company’s e-commerce
business does.
41. The products we get from the company’s most important supplier can also be purchased by
end-users on the company’s most important supplier's Web site.
42. Our most important supplier does not offer products to end-users on their Web site.
43. There is an overlap in products offered to end-users on the company’s Web site and the
company’s most important supplier's Web site.

Market:
44. Customers' preferences change frequently.
45. Our customers rarely request new products.
46. Customer needs are becoming more predictable.
47. Customer loyalty is decreasing.
48. On the Internet, the rate of firm failure is high in this retail category.

For the most recent annual fiscal period for your primary Web site:
49. Approximate revenue growth (%)
50. Approximate total online sales (in US $)
51. Percentage of Web site customers that were repeat purchasers (%)
52. Advertising dollars as a percentage of sales dedicated to e-commerce (%)
53. Percentage of sales generated from affiliate program (%)
54. Approximate advertising budget (in US $)
55. Percentage of sales generated from outside the headquarters' country (%)

56. Indicate the extent to which your company's Web site has achieved the following outcomes
relative to its original objectives for the most recent annual fiscal period.
a. objectives Met
b. objectives Well above
c. objectives Well below

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57. Total sales


58. Profitability
59. Market share
60. Sales growth
61. Number of new customers
62. Customer service

General inquiries into your e-commerce operations, focussed on your company's primary e-commerce
Web site.
63. Indicate when your company entered the online market, relative to the competition, in the
online retail category you specified at the beginning of the survey.
64. Indicate your current job title.
65. How many Web sites does your company currently operate?
66. How many of the Web sites you specified in question #1 are e-commerce sites (i.e., allow
online purchases)?
67. What is the main retail category that your Web site operates in?

For your company's primary e-commerce Web site:


68. How many people are employed for your Web site operations?
69. Where is your Web site headquartered?

Brick-and-Mortar Operations:
Regarding your brick-and-mortar operations (i.e., retail store(s) operating in the physical
marketplace):
70. Does your company operate one or more brick-and-mortar retail stores?

Brick-and-Mortar Retail Brand:


71. Compared to your brick-and-mortar competitors, how would you rate the strength of your
company's retail brand in the physical marketplace?
72. Overall, compared to other brands in your retail category, how would you rate the level of
awareness of your retail brand name in the physical marketplace?
73. Overall, compared to other brands in your retail category, how would you rate the level of
quality associated with your retail brand name in the physical marketplace?
74. Overall, compared to other brands in your retail category, how would you rate the level of
favourability associated with your retail brand name in the physical marketplace?
75. Overall, rate the level to which your brand is recognised with its retail category in the physical
marketplace?

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Affiliate / Partner Program:


An affiliate or partner is defined as a Web site that is linked to the site and receives a commission,
fee, or other benefit for sales generated from the link:
76. Does your primary Web site have an affiliate program?
77. How many affiliates are currently enrolled in your affiliate program?
78. How long has your affiliate program been in operation?

79. How many marketing agreements does your company have with search engines and portals
for its primary e-commerce Web site?
a. 1-3
b. 4-9
c. 10-19
d. 20-49
e. 50 or more
f. Do not know
80. On average, how many unique visitors does the primary e-commerce Web site receive each
month?
81. Is your primary e-commerce Web site the result of a joint venture or partnership with another
company?
82. Is your primary e-commerce Web site maintained by an outside firm?

Company Web Building Activities


Corporate demographics and investigation of web building expenditures and activities.

Employee Surveys at Agrana Fruit: as an Excel file: Part_N.2.6


1. Which of the following best describes the decision makers’ position within the company?
a. Owner
b. Chief Executive
c. Partner
d. Senior executive in charge of advertising, marketing, brand.
e. Executive in charge of advertising, marketing, brand.
f. Professional consultant
g. Finance/accounting/purchasing
h. Marketing
i. Office manager
j. Outlet / Site manager
k. Administrative assistant
l. Technical or IT professional
m. Sales professional
n. Other

2. In which City, State / Country is your office located?

3. How many employees work at this location?


a. 1 to 7
b. 8 to 19
c. 20 to 49
d. 50 to 99
e. 100 or more
f. Don't know/Not sure

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4. What are the main product categories sold by your company?

5. Select the range that is closest to the approximate annual sales for your company, at this
location:
a. Less than 100,000
b. $100,000 to $499,999
c. $500,000 to $999,999
d. $1 million to $5 million
e. $5 million or greater
f. Don't know

6. What was your involvement is in the website development and maintenance process?
a. Determine need to purchase
b. Evaluate various products/vendors
c. Authorise/approve purchase
d. Determine where to purchase
e. Place orders
f. Other

7. Establish the domain


a. Determine need to purchase
b. Evaluate various products/vendors
c. Authorise/approve purchase
d. Determine where to purchase
e. Place orders
f. Other

8. Has your company purchased any of these service in the past 6 months:
a. We did not purchase
b. Developing a Website
c. Registering a domain name
d. Web Hosting Services

9. How much would you estimate your company spent in the past 6 months on the following web
related activities (at this location)?
a. Did not purchase
b. Don't Know
c. $1,500 to $5,000
d. $5,000 to $10,000
e. $10,000 to $25,000
f. $25,000 or more
g. For Developing a Website
h. For Web Hosting Services & Maintenance

10. Does your company plans to purchase this service in the next 6 months:
a. Developing a new Website
b. Registering a new domain name
c. Web Hosting Services

11. Which of the following best describes your company's website?


a. Informational/advertising site that describes the business or displays products
b. E-commerce site that has credit card processing ability
c. Fully integrated site with credit card and order processing capability
d. No website but plan to have one
e. No website and no plans in the near future to develop one.
f. Other

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12. How satisfied are you with the overall quality, look, feel, and functionality of your website?
a. Very satisfied
b. Somewhat satisfied
c. Neutral
d. Somewhat dissatisfied
e. Very dissatisfied

13. Which one of the following business sectors best describes your core business?
a. Communications/transportation/utilities
b. Banking/finance/insurance/real estate/legal
c. Retail
d. Value added information service provider
e. Government
f. Data processing/computer
g. Education
h. Business services
i. Other

14. What best describes your role in your organisation?


a. Owner, partner, principal
b. CFO / CIO / CTO
c. Director/manager
d. VP
e. Professional
f. Other corporate management
g. Project manager
h. Customer service
i. Other

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SECTION 2

Competitive Environment

Agrana Fruit
Agrana Fruit - United States

Competitive Environment

Monthly Consumer Spending

Other spending &


Health & Beauty

Leisure Goods

Luxury Goods
Food & Drink

Investments
Furnishings

Footwear
Durables
Clothing

Medical
% % % Home
% % % % % % %

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Disposable Income and Discretionary Spending (together with the consumers’ own assessment of future trends)
is measured during Consumer Surveys when consumers were asked specific psychometric questions which
tested and cross-checked the issues mentioned here. The data above is derived from statistically accurate social
/ income group, and full age spectrum, surveys.

Whereas in developed countries the Value Proposition of many brands have suffered in recent years
for a variety of reasons, in many developing country markets the Value Proposition of many branded
products have survived intact. Many consumer durables have seen their perceived worth diminished
during the last decade or so in North America and Europe. This is due to both the popularization of
the brands which make them less exclusive, and because they are perceived to be less costly to
manufacture and less durable. Some formerly high end brands have suffered for these reasons.

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There are psychological reasons which currently make developing country markets more durable
1
than, for example, the United Sates or the United Kingdom markets and that is the general neurotic
(and sometimes psychotic) psychology of fashion and luxury goods consumers in some countries.
The increasingly neurotic nature of some of these customer bases is tending to divert expenditure
away from fashion into other neurotic activities.
In, for example the United Sates and the United Kingdom, neurotic behaviour patterns have
increasingly led sections of the population to succumb to eating disorders (which has led to obesity)
and impulsive disorders like drinking alcohol to excess. This has caused a rapid rise in over-weight
people (over 50% of the adult female population in the United Sates and the United Kingdom are
over-weight) and clinical obesity (over 35% of the adult female population in the United Sates and
over 25% of the adult female population in the United Kingdom are clinical obese). This means that
these individuals find it increasingly difficult to interact and interface with fashion products and as a
consequence they do not perceive themselves to be capable of engaging with much of the fashion
industry.
Neuroses play an important part in the purchasing behaviours of consumers, especially with fashion
and luxury goods, and these neuroses represent both opportunities and threats to fashion product
manufacturers and retailers.
The good news for fashion product manufacturers and retailers is that a neurotic customer base
makes it relatively easier for retailers to loosen the purses of buyers; the bad news is that a neurotic
customer base has a short attention span and is prone to be irrationally diverted to other neurotic
activity.

1
The terms neurosis and psychosis are used in their clinical context. The symptoms as described as follows:-
There are many forms of neurosis: obsessive-compulsive disorder, anxiety neurosis, hysteria, and a very wide variety of
phobias as well as obsessions. Effects of neurosis can involve anxiety, sadness or depression, anger, irritability, mental
confusion, low sense of self-worth, et cetera; behavioural symptoms such as phobic avoidance, vigilance, impulsive and
compulsive acts, lethargy, et cetera; cognitive problems such as unpleasant or disturbing thoughts, repetition of thoughts and
obsession, habitual fantasizing, negativity and cynicism, etc. Interpersonally, neurosis involves dependency, perfectionism,
feelings of isolation, socio-culturally behaviours, et cetera.
Individuals who score high on neuroticism are more likely than the average to experience such feelings as anxiety, anger, envy,
guilt, and depressed mood. They respond more poorly to environmental stress, and are more likely to interpret ordinary
situations as threatening, and minor frustrations as hopelessly difficult. They are often self-conscious and shy, and they may
have trouble controlling urges and delaying gratification. Neuroticism is a risk factor for the "internalizing" mental disorders such
as phobia, depression, panic disorder, and other anxiety disorders (traditionally called neuroses). Research has found that a
wide range of clinical mental disorders are associated with elevated levels of neuroticism compared to levels in the general
population. Disorders associated with elevated neuroticism include mood disorders, such as depression and bipolar disorder,
anxiety disorders, eating disorders, schizoaffective disorder, dissociative identity disorder, and hypochondriasis. Mood
disorders tend to have a much larger association with neuroticism than these other disorders. The remaining personality
disorders had either modest positive or non-significant (in the case of narcissistic and histrionic) associations with neuroticism.
Research has consistently found that on average, women score moderately higher than men on neuroticism. A study
examining gender differences in big five personality traits in 55 nations found that across nations the most pronounced gender
difference in personality was in neuroticism. In 49 of the 55 nations studied, women scored significantly higher in neuroticism
than men. In no country did men report significantly higher neuroticism than women, although in Botswana and Indonesia, men
were slightly higher than women. Gender differences in neuroticism within nations ranged from very small to quite large. The
differences were moderate to large in 17 countries, and small to moderate in 29 countries. In only seven countries -
Bangladesh, Tanzania, Ethiopia, Greece, Japan, Botswana, and Indonesia - were they negligible. African and Asian/South
Asian world regions tended to have smaller sex differences in personality overall than did western world regions (Europe, and
North and South America). Differences in the magnitude of sex differences between world regions were due to differences
between men in these respective regions. That is, men in western world regions were lower on neuroticism compared to men in
African and Asian/South Asian world regions. Women, on the other hand tended not to differ in neuroticism across regions.
Gender differences were also positively associated with measures of human development, that is, a long and healthy life,
access to knowledge and education, and decent standards of living. Sex differences became more pronounced in countries
with higher levels of human development. It is speculated that resource poor environments (that is, countries with low levels of
development) may inhibit the development of gender differences, whereas resource rich environments facilitate them. This may
be because males require more resources than females in order to reach their full developmental potential. Evolutionary
theories suggest that gender differences in neuroticism developed because men have evolved to be more risk taking whereas
women have evolved to be more cautious and hence more anxious and avoidant when faced with danger.

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Market Opportunity

Analysis of the development of the retail trade and its life cycle

The choice of route to the market has opportunities and pitfalls, product and brand superiority is an
obvious competitive advantage which can be re-enforced through firm control of the retail channels.
However products and brands superiority is a medium and long-term strategy which can be unstable
and may be subject to short-term set-backs. Clearly strong brands with real product benefits have the
best competitive advantage, and for this reason the long-lived brands have consistently invested in
brand equity.
The low transaction cost routes to the market have clear benefits, but may suffer from sustainability
problems as the concept adopted is easy and inexpensive to replicate by competitors. The majority of
foreign brands operating in any one country tend to choose the Medium Added Value and Medium
Transaction Costs routes to the market as these are tested and known. However the use of novel and
innovative channels of distribution are being increasingly explored by the brand leaders. Newcomers
are less inhibited (than the entrenched brands) in trying and testing new distribution channels and
often new brands can achieve improved market penetration through imaginative distribution policies
and tactics.
The task of any brand seeking to enter these markets is to achieve an alignment with the distribution
and a synergy with consumer buying behaviours and expectations.
 Analyse consumer buying behaviours
 Evaluate consumer ‘Shopping Experience’ criteria
 Identify consumer channel preferences
 Correlate consumer channel usage with purchasing criteria
 Provide flexible and adaptable retail channel options
 Observer changes in consumer buying behaviours
 Adapt and respond to consumer buying behaviours

The above considerations are of course an analogy of the life cycle of particular channels. Failure to
respond and adapt in the above manner will inevitably result in the premature shortening of the life
cycle of any particular channel.
The purchasing criteria of consumers will be recognisable, and have been specified in other sections
of this study. The basic criteria are inevitably the same in most of the countries:-
 Price
 Availability
 Brand
 Quality
 Shopping experience
 Store Personnel
 Store appeal
 Promotional actions
 Et cetera

How these criteria then interact with particular channels is the important issue; as is how these criteria
and the individual channel can be correlated and manipulated to maximise Added Value and minimise
Transaction Costs.

276
Agrana Fruit - United States

Added Value and Transaction Costs across the Supply Chain

Retail Franchising

Multi-Brand Retail
Owned Exclusive

Consumer Party

Social Network
Direct Selling to
National Brand

Telemarketing
Sales Tactics
Brand Stores

Independent

eCommerce
Distributors
Selling via
Licensing

Exclusive

Retailers
Stores

Plan
Markets AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC AV TC

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

AV = Added Value : TC = Transaction Costs : H = High : M = Medium : L = Low

277
Agrana Fruit - United States

Retailers per 10,000 inhabitants

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Store Revenue per Square Meter per annum (US$)


2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

278
Agrana Fruit - United States

Average Revenue per Store per annum (‘000)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

Average Store Sales Area (Square Meters)


2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

279
Agrana Fruit - United States

Existing Distribution Channels

Wholesale - Domestic

Wholesale - Foreign
owned & controlled

owned & controlled


Retailer - Domestic
Wholesale - Other

Retail – Internet &


Wholesale - Joint

Retailer - Foreign

Retailers - Joint
controlled

controlled
Ventures

Ventures

Others
Markets % % % % % % % %

Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

280
Agrana Fruit - United States

New Distribution developments

Multiple-Channel Development
Developing a Multi-Channel approach to the consumer is often very effective and allows:-
 Efficient access to each market segment
 Increased market coverage
 Lower channel cost
 Opportunities for targeted and customised selling
 More precise control of channels
 The introduction of Complementary Channels, each of which targets different product or
consumer segments.
 Competitive Channels where more than one channels competes for the same consumer
segment. This permits dynamic pricing tactics, promotional opportunities and better inventory
management mechanisms.

Multi-Marketing & Social Networking


Developing a Multi-Marketing & Social Networking approach to the consumer can help access niche
markets:-
 Direct selling an Party Plan to access specific demographics (Married women, Older women,
women in rural locations)
 Telemarketing which can access Housewives and women at their work place.
 Social Network integration with mobile applications to promote specific events and ‘shopping
experiences’ for the younger demographics.

e-Commerce & M-Commerce


The effective application of e-Commerce and then Mobile Applications will increasing become very
important in the marketing mix of all brands.

281
Agrana Fruit - United States

Online Shopping – Purchases per month

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
Trade Area #1

Trade Area #2
Trade Area #3
Trade Area #4

Trade Area #5

Trade Area #6
Trade Area #7
Trade Area #8

Trade Area #9
Trade Area #10
Trade Area #11

Trade Area #12


Trade Area #13

Trade Area #14


Trade Area #15

The data above is derived from statistically accurate social / income group, and full age spectrum,
surveys.

282
Agrana Fruit - United States

Distribution Policies & Strategies

Distribution Strategies for consideration

Exclusive Distribution advantages include:

convenience to independent retailers

Intensive Distribution to independent


 Maximised control over service level

Direct supply to Selected Retailers


 Control of costs

Intensive Distribution to provide


Selected Wholesale Distribution
 Enhanced brand equity
 Enhanced margins
 Control of tied retailers

Multi-channel Distribution
Non-Exclusive Distributor

 Improved independent retailer loyalty


 Improved ERP and inventory control
Exclusive Distributor

 Improved merchandising controls


 Improved forecasting and market
reaction time
 Market power and influence

retailers
Exclusive Distribution disadvantages:
 Risk in reliance on an exclusive
distribution system
 Mainly geared to big brand, high price,
high margin and low volume products
Trade Area #1
Trade Area #2
Intensive Distribution advantages include:-
Trade Area #3  Potentially increased retailer sales
 Wider consumer recognition
Trade Area #4  Enhanced product exposure
Trade Area #5
Trade Area #6 Intensive Distribution disadvantages:-
 Applicable to low price, low-margin
Trade Area #7 high street brands
Trade Area #8  Products require constant refreshing
and high stock turn
Trade Area #9  Difficulty controlling brand image

Trade Area #10


Trade Area #11 Selective Distribution advantages:
 Better market coverage than exclusive
Trade Area #12 distribution
 More control and less cost than
Trade Area #13 intensive distribution
 Concentration on productive outlets
Trade Area #14
 Carry full product line
Trade Area #15  Provide superior services

Selective Distribution disadvantages:


 May not cover the market adequately
The above distribution strategies are used by the current
players in each of the country markets. Each distribution
 Potential errors in distributor selection
method needs to be analysed in depth to understand the
implications.

283
Trade Area #9
Trade Area #8
Trade Area #7
Trade Area #6
Trade Area #5
Trade Area #4
Trade Area #3
Trade Area #2
Trade Area #1

Trade Area #15


Trade Area #14
Trade Area #13
Trade Area #12
Trade Area #11
Trade Area #10
Better knowledge of Consumer buying habits

Better attention to Customer expectations


Agrana Fruit - United States

More attention to Competitor’s product offerings

Better selection of retail outlets & locations

depth to understand the implications.


Strategies

Improvement of ‘Store Experience’

More attention to Brand Equity


Adaption of Distribution

Increase volume level of sales

284
More attention to the Marketing Mix

Vertical Marketing System (VMS)

ERP methodology

Firm central coordination

Professional Management

Programmed network systems

Use of innovative marketing channels


Channel Control Strategies

Definitions of corporate, administrative and contractual


VMS
Horizontal Marketing System

The Trading Areas marked with an X indicate the need for the distribution strategies to be analysed in
Symbiotic marketing
Agrana Fruit - United States

Purchasing power

Independent Wholesalers

Independent Retailers
Regional Wholesalers
National Wholesalers

Regional Retailers
Agents & Jobbers

National Retailers

Mail Order

Catalogue

Online
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None

Purchasing power is defined by the relative discounts and terms of payment achieved that each level
of the supply chain can achieve when negotiating with their suppliers. In general the distribution and
retail buyers can usually negotiate more advantageous terms with suppliers from Asia than with
suppliers from North America or Europe.

285
Agrana Fruit - United States

Retail Trade Life Cycle and Developments

Brand Development in the Retail Trade

Retailers’ Own Brands

Unbranded & Generic

Mail Order Brands

Catalogue Brands
Discount Brands

Regional Brands
National Brands
Global Brands

Online Brands
Trade Area #1 Niche Brands
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

S = Substantial : M = Moderate : L = Limited : N = None

286
Agrana Fruit - United States

Future Prospects and Development of the Retail Trade

The future of the Retail Trade in shown in the market research data for United States and the various
markets covered.

City and Town analysis

The Research focuses on the Retailers in the Major Cities in the country (United States). A full list of
the cities and towns in the database can be found here:

http://www.dg-di.eu/BASE_FOLDERS/World_Cities/US.html

The overall Market Data covers each of the United States major towns and cities can be found here:
Market Data Major Towns

Detailed Market Data covers each of the United States major towns and cities can be found here:
Detailed Market Data Major Towns

287
Agrana Fruit - United States

Wholesaler, Trade Buyer, Retailer and Store Performance Surveys

Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT

288
Agrana Fruit - United States

Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Trading Area
1 United States of America
2 California
3 New York
4 Florida
5 Illinois
6 Pennsylvania
7 Michigan
8 Georgia
9 North Carolina
10 New Jersey
11 Virginia
12 Arizona
13 Massachusetts
14 Tennessee
15 Missouri

289
Agrana Fruit - United States

Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

http://www.dg-di.eu/BASE_FOLDERS/MarketResearch/MR_SURVEY_DEFI.htm

Distribution Channel Surveys

Surveys of Supply Chain & Distribution Channels Members:

Distribution Channel Surveys

Buyers & Consumers Distribution Channel Surveys Decision Makers

Competitors Distribution Channel Surveys on Competitors

Operations Distribution Channel Surveys on Operations

Products Distribution Channel Surveys on Products

Trading Area Distribution Channel Surveys for the Trading Area

290
Agrana Fruit - United States

Decision Makers Surveys

Surveys of Trade and Consumer Decision Makers:

Decision Makers Surveys

Buyers & Consumers Decision Makers Surveys

Competitors Decision Makers Surveys for Competitors

Operations Decision Makers Surveys for Operations

Products Decision Makers Surveys for Products

Trading Area Decision Makers Surveys for Trading Area

Industry Performance

Surveys of Industry & Retailer Performance:

Industry Performance

Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers

Competitors Industry & Retailer Performance Surveys on Competitors

Operations Industry & Retailer Performance Surveys on Operations

Products Industry & Retailer Performance Surveys on Products

Trading Area Industry & Retailer Performance Surveys for the Trading Area

The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions

291
Agrana Fruit - United States

Value by Product Sectors

United States Market Values in US$ - Historic from 1997. Forecast to 2028

Market Values at Producer Prices

United States Market in US$ - Historic from 1997. Forecast to 2028

Market Sectors at Producer Prices

City / Town Market Value

The overall Market Data covers each of the United States major towns and cities can be found here:
Market Data Major Towns

Detailed Market Data covers each of the United States major towns and cities can be found here:
Detailed Market Data Major Towns

292
Agrana Fruit - United States

Consumer Attitudes

Products
Product Group #1
Product Group #2
Product Group #3
Product Group #4
Product Group #5
Product Group #6
Product Group #7
Product Group #8
Product Group #9
Product Group #10
Product Group #11
Product Group #12
Product Group #13
Product Group #14
Product Group #15

Operations
1. Brand Management
2. Product Management
3. Marketing & Selling Activity
4. Store Presentation & Merchandising
5. Product Offering Specifications & Characteristics
6. Product Quality Control
7. Design Research & Development
8. Customer Handling
9. Product Sourcing & Control
10. Financial Controls
11. Staff Training / Control & Relations
12. Product Throughput Capacity & Control
13. Supply System Control & Development
14. Distribution Control
15. Product Handling Systems & IT

293
Agrana Fruit - United States

Buyers &
Consumers
1. Wholesalers
2. Trade Buyers
3. Retailers
4. Consumers
5. Consumers Age: <19
6. Consumers Age: 19-24
7. Consumers Age: 25-34
8. Consumers Age: 35-44
9. Consumers Age: 55-54
10. Consumers Age: 55-64
11. Consumers Age: 65+
12. Consumers Social Group: AB
13. Consumers Social Group: C1
14. Consumers Social Group: C2
15. Consumers Social Group: DE

Trading Area
1 United States of America
2 California
3 New York
4 Florida
5 Illinois
6 Pennsylvania
7 Michigan
8 Georgia
9 North Carolina
10 New Jersey
11 Virginia
12 Arizona
13 Massachusetts
14 Tennessee
15 Missouri

294
Agrana Fruit - United States

Competitors
Competitor #1
Competitor #2
Competitor #3
Competitor #4
Competitor #5
Competitor #6
Competitor #7
Competitor #8
Competitor #9
Competitor #10
Competitor #11
Competitor #12
Competitor #13
Competitor #14
Competitor #15

These surveys cover the Markets, Products, Competitors, Operations and Product Flows in terms of
the Suppliers, Distributors, Retailers, and End Users. Please read the Definition & Notes first.

Consumer Surveys

Surveys of Consumers and Buyers:

Consumer Surveys

Buyers & Consumers Consumer Surveys Decision Makers

Competitors Consumer Surveys on Competitors

Operations Consumer Surveys on Operations

Products Consumer Surveys on Products

Trading Area Consumer Surveys for the Trading Area

295
Agrana Fruit - United States

Industry Performance

Surveys of Industry & Retailer Performance:

Industry Performance

Buyers & Consumers Industry & Retailer Performance Surveys Decision Makers

Competitors Industry & Retailer Performance Surveys on Competitors

Operations Industry & Retailer Performance Surveys on Operations

Products Industry & Retailer Performance Surveys on Products

Trading Area Industry & Retailer Performance Surveys for the Trading Area

The surveys are best viewed as a graphic representation and users should use the normal facilities in
Excel to render the Excel spreadsheets as a graphic.
To understand the format and structure of these Surveys please consult the following schematic and
Survey Definitions

296
Agrana Fruit - United States

Competitive Factors

Retail Brands

The Survey results in this report cover the following Retail Brands in United States:-

Brand Research

% Market Share
Data Available

Selling Space
Competitive

Revenues
Stance

Stores
Type

SqM
Retailers
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10
Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

LB = National Brand : RB = Regional Brand : GHS = Global High Street : GLux = Global Luxury
G/DS = Generic brands

297
Agrana Fruit - United States

Brands Price Differentials

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15


Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9
Retailers % % % % % % % % % % % % % % %

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The Price Differentials shown here are Purchasing Power Parity weighted.

How to interpret this data


Price differentials do not entirely depend on the actual monetary price of a product, but more on the
Purchasing Power Parity. This means that the actual monetary cost of the product in any particular
country has to be weighted with the average wage levels in that country to thereby produce the
average purchasing power parity. The data shows that in order to purchase a particular product a
consumer in low wage rate country will have to expend a greater proportion of his purchasing power
than a consumer in a high wage rate country. Another way to interpret the data is to consider that
there is a demographic shift whereby in lower wage rate countries the purchasing demographic of any
particular product move further up the social scale when compared with high wage rate countries. In
addition in lower wage rate countries the products will take longer to achieve the same level of market
penetration as is found in high wage rate countries. As an extension of this one can see the relative
price differential of the brands when sold in other countries.

298
Agrana Fruit - United States

Product Price Differentials

Trade Area #10

Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15


Trade Area #1

Trade Area #2

Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9
Product
Groups
Product Group #1

Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15

The Price Differentials shown here are Purchasing Power Parity weighted.

299
Agrana Fruit - United States

Product Value Positioning

Product Groups

Product Group #10

Product Group #11

Product Group #12

Product Group #13

Product Group #14

Product Group #15


Product Group #1

Product Group #2

Product Group #3

Product Group #4

Product Group #5

Product Group #6

Product Group #7

Product Group #8

Product Group #9
Retailers
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

Ranking: Upscale 1-2  Mainstream 3-6  Economy 7-9

300
Agrana Fruit - United States

Product Pricing

Price Market Median


Low Price High Price
Discounting Price

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

301
Agrana Fruit - United States

Product Quality

Premium
Basic Quality Median Quality High Quality
Quality

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

302
Agrana Fruit - United States

Product Specifications

Low Product Undifferentiated High


Differentiated
Specification Product Specification

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

303
Agrana Fruit - United States

Product Target Audiences

No Target Specific
Some Targeting Highly Targeted
Audience Audience

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

304
Agrana Fruit - United States

Product Volumes

Median Restricted
High Volume Low Volume
Volumes Volume

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

305
Agrana Fruit - United States

Product Utility

Necessity Common Discretionary


Luxury Product
Product Product Product

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

306
Agrana Fruit - United States

Product Maintenance

Frequent Average Infrequent Specialist


Cleaning Cleaning Cleaning Cleaning

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

307
Agrana Fruit - United States

Product Merchandising

Simple Display Complex


Featured
Merchandising Merchandising Proposal

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

308
Agrana Fruit - United States

Product Advertising

Basic Feature Target Complex


Advertising Advertising Advertising Advertising

Retailers
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Brand Positioning Tactics & Strategy

Current Tactical Brand Model

Price Product Place Promotion

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Strategic Brand Objectives

Shopping
Brand name Product Design Advertising
experience

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Functional Positioning - Symbolic Positioning - Experiential Positioning

Functional Symbolic Experiential Unknown

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys..

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Customer Value Propositioning

Benefits Differentiation Resonance Experience

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Value Concept & Positioning

Average Value Good Value Excellent Value Unspecified

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Brand Differentiation Propositions

Some
Me Too Different Unique
difference

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Key Selling Messages

Value Product Brand Status

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from trade surveys.

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Communications Tactics

Sales General Direct


Public relations
promotions advertising marketing

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from trade surveys.

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Advertising Tactics

Price Product Inclusiveness Exclusivity

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from trade surveys.

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Media & PR Tactics

Brochures &
Press releases Audio-Video Press Kits
print

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from trade surveys.

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Web & Online Tactics

Not really
Very visible Visible Unspecified
visible

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Point of Sale Tactics

Average POS Good POS Excellent POS Unspecified

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Merchandising

Average Good Excellent


Unspecified
Merchandising Merchandising Merchandising

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Product Display

Average Good Product Excellent


Unspecified
Product Display Display Product Display

Retailers % % % %
Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Competitor #7

Competitor #8

Competitor #9

Competitor #10

Competitor #11

Competitor #12

Competitor #13

Competitor #14

Competitor #15

The data above is derived from consumer surveys.

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Market Entry Management Factors

Distribution

Brands differentiate themselves in terms of price, quality and design. For the purposes of the rest of
this section branded products will be categorised as:
 High priced brands: These global brands are committed to luxury, style, and quality.

 Middle range brands: These brands bring trends to the high street; they are design-led and
are sold at high street prices.

 Low cost brands: Low cost brands offer contemporary designs and current trends at low
prices, especially distributed in department stores and supermarkets.

Retail Level

There are three types of retailers: Vertically-integrated Retailers; Independent Retailers; and
Department Stores.
 Vertically-integrated retailers operate wholly-owned retail outlets and sell only the brands
selected by that company. Vertically-integrated retailers tend to have an international
presence. Many high range designer brands, middle range high street brands and low cost
brands are vertically integrated. They are located on main streets and in shopping centres; in
addition high range brands and middle range high street brands sell their ranges in
department stores.

 Independent retailers sell a selection of brands and are independent of the brands they sell.
Independent retailers can take many forms. Their stores tend to sell middle range high street
brands, however some may sell high range designer brands. Independent retailers tend to
specialise in one type of product category, and generally provide their customers with more
choice and variety for those categories. Independent retailers may own and operate a chain
of stores under a common fascia and are typically known as “branded resellers”. Other
independent retailers may be small local boutiques. Independent stores are mainly located on
the main shopping street in towns and cities and in shopping centres.

 Department stores are quite different. They sell a wide variety of products from clothing to
home-wares, and electrical appliances to cosmetics. In terms of branded products,
department stores tend to sell high range brands and/or middle range high street brands; low
cost brands are rarely sold in department stores. Department stores are generally located in
central locations in cities and large towns.

A department store is a hybrid retailer. As detailed in subsequent paragraphs, branded


products are available in their stores from vertically-integrated companies locating in the store
through a “concession” arrangement and/or is “own-bought” and resold by the stores
themselves. A few department stores also sell own-brand labels.

Concession arrangements occur where vertically-integrated branded companies have an


agreement to sell in a dedicated area of a department store. Many of these are the same
brands sold in high street vertically-integrated stores. In effect, the department store is the

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concessionaire’s landlord and earns a rent or commission from the concession. Therefore,
the department store has less risk as it does not own the concessionaire’s stock, i.e., it is not
a reseller. However, a department store’s commission is affected by fluctuations in sales. The
actual stock and the profit from sales, excluding the commission, belong to the “concession”,
i.e., the vertically-integrated brand.

Own-bought products are branded items purchased by the department store from the
manufacturer or its agent or distributor for resale. For own-bought products the department
store bears the risk. Own-bought retailing is therefore similar to the arrangement described for
independent stores, where a selection of brands is sold in the same store; the difference
being that independent stores typically specialise in one type of product category, whereas
department stores sell different types of product categories.

Although products may be retailed through department stores under different arrangements, it
is not obvious to the consumer which brands operate under each arrangement, i.e., whether
the brand is sold under a concession or own-bought arrangement, as their presentation is
seamless. The percentage of branded products that is own-bought versus concession varies
across department stores.

Brand Competition

At the retail level brand competition tends to differ by type of retailer. Vertically-integrated international
brands compete at a high level by promoting their branded product internationally.
Independent retailers and department stores compete through the range of brands and products they
stock in their stores, and by building store image. In order to get the brands they want into their store,
department stores further compete on the commission rate, location in store and merchandising.
Branded reseller chains, for example, sports retailers, also compete on store reputation through store
advertising and promotions etc. Department stores compete on store image by creating a “shopping
experience” and through promotional activity to attract footfall.
The past decade has seen a big increase in the number of brands available, especially in terms of the
location density of the global brands.

Value

Retailers within the same product categories compete on value, i.e., the combination of price, design
and quality. Retail competition tends to start with competition among different brands within the same
range, be it high range, middle range or low cost. Once a brand positions/markets itself within one of
the product categories, it competes mostly with other brands within the same range by pricing at a
level that reflects the quality, design and brand image that has been created.
In terms of pricing, vertically-integrated retailers operate a system of national pricing and thus at a
retail level compete more on quality of service, shop fit etc. Vertically-integrated brands are
increasingly also offering on-line shopping.
Low cost brands primarily compete on price by offering contemporary designs at low prices. The
ultimate goal of these brands is to set their prices low. Consumers are looking for value for money
when purchasing these brands.

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Location

Location is of critical importance in retail. In most countries, despite the growing number of out of town
shopping centres, the main street is still a major draw for retailers. Thus, there is demand and
competition among all retailers for prime main street locations.
Vertically-integrated international brands sold throughout the world and the outlets of these brands
are similar in design and layout. Independent retailers and department stores can differ somewhat in
different areas.
Although the international brands enjoy economies of scale, local conditions in each country are often
quite different, and local retailers can often profit by being more orientated to local markets. Retailers
operating in some countries tend to have larger selling areas and therefore can offer a broader
product range.

Supply Chain

The supply chain and, in particular, distribution for each type of retailer and supplier, tends to vary.
Vertically-integrated branded companies supply products internally to retailers, while other brand
companies supply products through wholly-owned wholesalers, agencies or third party distributors.
Products are typically designed by the brands themselves and manufactured mostly in the Far East,
and sometimes in Europe or South America. In certain instances, the manufacturer is owned and
operated by the brand and in other instances it is outsourced by the brand. Some brands use buying
teams or groups to source their products around the world and are not aligned to, or contracted, with
any manufacturer; they may also have different buying teams for different markets. Occasionally,
brands outsource part of their manufacturing operations to distributors.
Vertically-integrated branded retailers and concessions in department stores source their product
from their parent company. Vertically integrated brands internalise the supply, wholesale and retail
aspects of their supply chains. The retailers and wholesalers are part of the branded company and
operate under the instruction of the parent company. The brand supplies its products to its stores and
concessions in department stores. There is no intermediary or third party involved in the supply chain.
Own-bought product suppliers to independent stores and department stores, use wholly-owned
distributors, agencies and/or third party distributors in each country. Which avenue a supplier takes
ultimately depends on how the branded company wishes to operate its distribution and the benefits or
service each distribution type can offer.
Large multinational brands tend to have wholly-owned wholesalers based in the larger countries.
Some brands have two separate wholly-owned wholesalers for each Trading Area; others have one
wholly-owned wholesaler for the two jurisdictions. In some cases, rather than an office, the brand has
a country representative, an employee of the brand, to manage the supply. Most wholly-owned
wholesalers use selective distribution arrangements, i.e., supply to a number of different independent
stores and department stores. For example, a wholly-owned wholesaler may supply that brand’s retail
chain plus to other distribution chains. In the case of some brands, there may be an exclusive
distribution arrangement whereby one retailer and its stores, or a chain, receives exclusivity for the
product in the country.
Some brands distribute through independent agents. The agent places the order to the brand on
behalf of the retailer and receives a commission in return for placing the order. The agent does not
buy the product and, therefore, in some sense the agent is an arm of the brand. Retailers may
negotiate terms and prices either with the agent or the branded supplier; at what level the retailer
negotiates terms varies depending on retailer size. Most agents distribute more than one brand.
Branded companies and retailers tend to prefer not to deal with a “middle man”, therefore, these types
of agency agreements are rarely found in the market.
Some brands distribute their product through third party distributors. Third party distributors buy
products from the brand and resell it to retailers in the country, i.e., they are the customers of the
brand and have an account with them. Therefore, third party distributors take on a business risk. For
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example, Distribution downstream to the retail level can be either an exclusive or selective
arrangement. However, given the preference of not dealing with a “middle man” distributors are rarely
found in the market. Most of the brands sold through third party distributors are lesser known brands.

Nature of Competition

Ultimately suppliers compete for consumer demand by building brand awareness and through
interactions with retailers. However, some suppliers compete mostly at the brand level. Brand
competition is a critical feature of competition at supply level. Brands compete by establishing a brand
that reflects the image and category in which they wish to operate; high range, middle range or low
cost. They will also price their product in a way that reflects the category and brand image they have
created. Where they sell through independent retailers and department stores, they generally choose
retailers whose own image is aligned to that of the brand’s image.

 High range brands compete with each other by establishing a desirable brand through
expensive image building mechanisms.

 Middle range brands compete with each other through advertising.

 Suppliers to low cost retailers (i.e. manufacturers in the Far East and South America etc.)
compete on price.

 Agencies compete by providing competitive commissions to the brands. Third party


distributors also compete with each other, by the services they offer, guaranteed sales
volume and other commercial activities.

 Suppliers also compete in their interactions with retailers, in terms of space, commission, and
location in the store. For example, concessions in department stores will compete for the best
location in the store, i.e., where there is the most footfall. Suppliers also compete to have their
products sold in the signature stores in a city.

Supplier Price Differentials

There are some supplier price differentials in each county and these are usually in the range 1-10%.
This suggests that, despite the rising cost of doing business, the level of competition in most countries
(as well as the expansion in the volumes sold) kept prices from rising relative to other countries
except when the exchange rates changed significantly.
The 2008 recession and the depreciation of some currencies, coupled together, have significantly
impacted upon the retail business. Retail sales declined in many countries. Increasing numbers of
retail chains have gone into administration in some areas, due largely to the global economic crisis.
The effect of the price gap between some countries has been that footfall and same brand sales in
some countries have reduced significantly due to consumers changing their behaviour, where the
effect is not so significant in other countries.
Consumers’ shopping behaviour has changed in a number of ways: Consumers are reducing the
volume of purchases they are making. Consumers are increasingly buying from discount suppliers.
Consumers are switching. Low cost branded stores do not appear to have been as negatively
affected as other stores; what they have lost in terms of consumers reducing purchases overall, they
have gained from consumers switching from mid-range to their low price/high value stores. In
addition, Retailers contend that consumers are switching to retailers that source their product in
currencies less impacted by the exchange rate.

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Retailer Reaction

The exchange rate fluctuations and the global recession have occurred simultaneously and it is
therefore not clear how much of the decline in sales is attributable to the recession and how much to
the exchange rates.
In response, retailers have tried to cut costs by reducing the cost of doing business and the cost of
product. They have reduced the cost of doing business by reducing opening hours, working hours and
pay.
With respect to cost of product, retailers can either try to renegotiate a price with their supplier, switch
supply by switching brands, or by-pass the current branded supplier and source product from an
alternative supplier.
The extent of exchange rate pressure and reduced footfall has driven retailers to go back to their
suppliers, be it the manufacturer, wholly owned wholesalers, third party distributors or an agency,
requesting price reductions. Renegotiating prices with suppliers may be difficult due to the seasonality
of retailing and limited buyer power of stores in some countries.
Generally, retailers organise their stock for at least the following two seasons, or perhaps even for the
coming year. Thus retailers decide on their stock and volume of purchases between six months to a
year in advance; simultaneously price for the product is agreed typically in US$. In addition, in order
to minimise currency risk, some retailers may hedge their currency at that time. Thus, due to these
agreed prices and volumes, retailers are finding it difficult to renegotiate price with their suppliers.
Retailers will, at the time of agreeing price with their supplier, set their retail prices. Given that this
may be done a number of months in advance, by the time product appears on the shelf, exchange
rates may have changed. This effect should diminish as retailers purchase the next round of stock
which will be based on more recent exchange rates.
The ability of a retailer to negotiate price reductions will depend also on its importance to the supplier,
i.e., the extent of its buyer power. National retailers are often small in international terms.
Switching brands may not be a possible option if the brand is a “must have” brand for the retailer, for
example, consumers expect all sports stores to have certain international sports brands. It will
negatively affect the retailer’s image if it does not have the must have brands for certain categories of
products.
Retailers, independent stores and department stores contend that sourcing product by by-passing the
current source of supply, i.e., the wholly-owned wholesaler, third party distributor or agency, is
difficult. They state that the head office or equivalent regional distributor will direct the retailer back to
the designated national distributor. Most international brands use wholly-owned wholesalers, thus the
alternative source of supply is simply a different arm of the same company. In some cases retailers
have been successful in renegotiating the currency in which they pay, but in most cases this has been
refused.
Retailers’ attempts to get better prices following currency depreciation may be more difficult in some
countries. Some retailers that operate in several countries may be able to benefit from sourcing
product for their stores in one country through their supply chain in another country. Thus, any
potential benefits arising from the changes in one currency may be spread across that retailer’ outlets.
For department stores and independent retailers, alternative sources of supply, such as the grey
market, may be an option. However, products from the grey market are seldom the latest design and
may be limited in the range and options it comes in. It also has limitations in terms of consistency of
supply, and thus may not be an adequate option.
The individual stores of vertically-integrated middle range retailers do not have any alternative option
to source product, as they must source their product internally. Prices in these stores are not set by
the retailer but the head office of the brand and therefore they are constrained by the controlled
supply channel in which they operate. These vertically-integrated brands are large international
brands that operate on a large scale. Any national market is likely represents only a small portion of
their overall business.

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Some low cost retailers are not experiencing as much difficulty in switching sources of supply as
independent stores or department stores. This is due to the fact that they tend to be vertically-
integrated and are not aligned with any one supplier but instead they source manufactured product
from the Far East based on the best price, design, quality and range. These low cost retailers market
themselves on price.
Despite the constraints faced by some retailers, they are reacting by re-pricing products, increasing
sales/discounts and promotions, and trying to source new products that have more attractive price
and quality characteristics.

Supplier Reaction

Suppliers’ responses to increased pressures from retailers to reduce prices will depend on their ability
and willingness to reduce prices.
Distributors of brands under pressure from retailers to reduce prices will themselves be limited in their
ability to reduce prices to the extent that they can renegotiate a price reduction with their upstream
supplier. Brands source product directly from their own, or contracted, manufacturers. This is often
done in the Far East or other countries and therefore they operate in a number of currencies. Supplier
costs are therefore largely in various exchange rate susceptible currencies. In reality, national
suppliers may have a small portion of costs in their own currency and may not be able to pass on the
current “expectation” that exists in the market.
In addition, brand companies tend to be vertically integrated upstream through contracted
manufacturers and downstream through wholly-owned retailers and/or distributors; due to this tight
distribution arrangement, the seasonality, and likely hedging aspects of suppliers’ operation, the
extent to which they can quickly react to changes in currency fluctuations will be limited.
Overall, suppliers are being negatively affected by falling sales and the depreciation of operating
currencies and therefore they do not want to lose revenue in the market as well. Some retailers stated
that the currency depreciation warranted a price increase in their country but that branded companies
would find it difficult to increase prices in that country because of recessionary pressures.
The bigger the market, the riskier it is to increase prices. In addition, branded companies tend to
operate across a number of countries.

Conclusion

Differences in price level between different national markets have to some extent always been
present, and changes in the differences in price level arise, amongst other reasons, due to currency
movements. Since 2008 branded goods prices in one country have fluctuated in comparison with
other countries. The effect of the pricing changes is driving consumers to change their shopping
behaviour to the detriment of the majority of retailers. Low cost retailers however have not been as
negatively affected; what they may have lost in terms of reduction in consumer spending they have
gained from price conscious consumers switching to them. Among other things, retailers have
responded by increasing sales/discounts and promotions, and in some instances re-ticketing items to
bring down in price.
However, the extent of the response of retailers is limited by the extent to which they can reduce their
costs of doing business, for example, reducing opening hours, and their cost of product. The ability to
reduce cost of product is constrained by three elements; the seasonality of the market, limited buyer
power and the ability to switch sources of supply.
Stocks and prices are determined six to 12 months before they appear in store. In most countries
retailers are relatively small internationally.

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Low cost retailers can easily switch sources of supply, though with a time lag. They are not aligned
with any particular manufacturer and source product based on a mixture of quality and low price. If
they are not happy with supply they will source it from elsewhere.
At the other end, vertically-integrated retailers operating in some overseas countries cannot switch
supply and are constrained by the parent company’s distribution arrangements. The stock available to
these stores is purchased centrally; their ability to switch will depend on how quickly they can
renegotiate price with their manufacturer or find another source of supply elsewhere.
Retailers who resell a range of brands (independent retailers and department stores) also have
limited ability to switch supply and find identical product elsewhere. They have long term relationships
with brands which they need to maintain. They are thus seeking price reductions from suppliers.
The extent to which these retailers can negotiate lower prices is dependent on their buyer power.
Department stores and branded resellers may be able to source supply in favourable currencies
through their international operations. In some instances locally-operated retailers have been able to
switch to paying in a different currency but in the main they have not. Thus locally operated retailers
may be temporarily disadvantaged compared to international retailers.
The instability of the exchange rates has had a significant impact on retailing in many countries.
International brands which manufacture outside the country will likely adjust their forthcoming
seasons’ prices in line with the currency fluctuations.
Brands differentiate themselves in terms of price, quality and design. The products are generally
manufactured in lower cost areas. The depreciation in the value of some currencies and the recession
have led to a fall off in demand for branded products generally, though low cost retailers appear to be
benefiting from consumers switching to them from more expensive brands.
Retailers have responded by increasing sales/discounts and promotions, and in some instances by
re-ticketing items to bring down the price. The extent to which retailers may reduce prices is
dependent upon the extent to which they can reduce their costs.
Their ability to reduce the amount they pay for the products they sell is constrained by three elements;
the seasonality of the market, limited buyer power and the ability to switch sources of supply.

 Seasonality in the Market: The prices paid by retailers to suppliers were set six to twelve
months ago and renegotiating those prices is difficult, though retailers have indicated that
they have had some limited success.

 Limited Buyer Power: The extent to which retailers can negotiate lower prices is dependent
on their buyer power. Stores that have access to stock through related overseas stores have
slightly more scope to access products at lower prices. In some instances retailers have been
able to switch to paying in other currencies but in the main they have not.

 Switching Sources of Supply: The ease with which retailers may switch to alternative better-
value sources of supply depends upon the type of product that they retail. Low cost retailers
can most easily switch sources of supply, though with a time lag (due to seasonality). Such
retailers are not so aligned with any particular manufacturer. The supply chains of the mid-
range retailers who operate wholly-owned retail outlets and sell a single product brand are far
less flexible. These retailers tend to have an international presence; purchasing and
distribution arrangements for the outlets in any particular country are typically determined
centrally. Retailers who resell a range of brands (e.g. supermarkets and department stores)
also have limited ability to switch sources of supply. Such retailers argue that they have long-
term relationships with branded product suppliers which they need to maintain. Alternative
sources for a particular brand cannot be relied on to come in the full range of products or to
be from the current season. A notable feature of retailing is the apparent low level of
alternatives for many retailers. With the exception of low cost products, competition is largely
about branding and image, within a particular price/quality range. Thus, it is difficult for stores
with on-going relationships with brands to switch to alternative brands. As the seasons roll on

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and the seasonal pattern of sales continues, all brands have the opportunity to set national
prices in a way that reflects more recent exchange rates.

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Distributors – Market Entry choices

Distributor – Distributor –
Distributor – Distributor –
Domestic Direct
Joint Ventures other
owned investment

Market % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

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Retail Presence – Market Entry choices

Retail –
Retail – Joint Retail – Direct
Domestic Retail – other
venture investment
owned

Market % % % %
Trade Area #1
Trade Area #2
Trade Area #3
Trade Area #4
Trade Area #5
Trade Area #6
Trade Area #7
Trade Area #8
Trade Area #9
Trade Area #10
Trade Area #11
Trade Area #12
Trade Area #13
Trade Area #14
Trade Area #15

The data above is derived from trade surveys.

333
Agrana Fruit - United States

Distribution Channel: Advantages – Disadvantages

Disadvantages Advantages

Direct investment – High


Direct investment – Risk

Control of Costs, Brand,


Domestic – Little Brand

Domestic – lower start-

Joint Venture – Lower

Joint Venture – Local


Domestic – no direct
Joint Venture – Long
of loss of investment

Direct investment –
Distribution control
Domestic – No

start-up costs

start-up costs
Distribution

Knowledge
investment
term risk

up costs
control

% % % % % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8
Trade Area #9
Trade Area #10

Trade Area #11


Trade Area #12

Trade Area #13

Trade Area #14

Trade Area #15

The data above is derived from trade surveys.

334
Agrana Fruit - United States

Market Entry options for Domestic Brands

Domestic Distributors -

Domestic Distributors -

Domestic Distributors

Retail Joint Venture


– Joint Ventures
Non-exclusive

Direct Retail

Franchisees

Unspecified
Investment
Exclusive
% % % % % % %
Trade Area #1
Trade Area #2
Trade Area #3

Trade Area #4

Trade Area #5

Trade Area #6

Trade Area #7
Trade Area #8

Trade Area #9
Trade Area #10

Trade Area #11


Trade Area #12

Trade Area #13


Trade Area #14

Trade Area #15

The data above is derived from trade surveys.

335
Agrana Fruit - United States

Market Entry options for Established or Global Brands

Domestic Distributors -

Domestic Distributors -

Domestic Distributors

Retail Joint Venture


– Joint Ventures
Non-exclusive

Direct Retail

Franchisees

Unspecified
Investment
Exclusive
% % % % % % %
Trade Area #1
Trade Area #2

Trade Area #3

Trade Area #4
Trade Area #5

Trade Area #6

Trade Area #7

Trade Area #8

Trade Area #9

Trade Area #10


Trade Area #11

Trade Area #12

Trade Area #13

Trade Area #14


Trade Area #15

The data above is derived from trade surveys.

336
Agrana Fruit - United States

Market Entry Features

Competitiveness

Vulnerabilities
Opportunities

Survivability
Dynamism
% % %