center23002311409410012100center818008227695941009200center7000070408809410010000center300003017520UNDERSTANDING BUYER AND CONSUMER BEHAVIOURASSIGNMENT
9410036300UNDERSTANDING BUYER AND CONSUMER BEHAVIOURASSIGNMENT
PERFUMES GUYANA- ‘Your Fragrance Destination’
Spotting a niche market for luxury cosmetics, Perfumes Guyana was founded by sole proprietor Doerga in the year 2000. Operating on a local level, the retail outlet serves 4 regions throughout Guyana with its prime location at 122 Parade St, Kingston, Georgetown having a strong command of the population.
The company stresses the uniqueness and distinctiveness of their product offerings and depth of selection ranging from authentic designer fragrances, exotic and soothing lotions and mists. It offers perfumes, colognes, gift sets and products for kids. Iconic global brands such as Calvin Klein, Issey Miyake, Versace, Victoria Secret and Bath & Body Works.
Incorporating the Marketing mix strategies they focus directly at satisfying the needs of a limited but homogeneous market segment including working professionals, Beauty Shops and Gift centers while targeting fashion conscious individuals.
Through diligence and focus on luxury, Perfumes Guyana success spiraled upwards and presently employs 10 staff who are constantly trained to provide a knowledgeable and quality customer service experience.
Existing rivals such as Perfume Dazzle and Giftland Officemax competes strongly with similar products at competitive prices. E-commerce is strongly impacting the sales activity since it provides opportunities for sales 24 hours a day, a wider variety of products, different geographic location and at competitive prices. CITATION Doe18 l 1033 (Doerga, 2018)Bibliography
BIBLIOGRAPHY Doerga, V., 2018. Company profile Interview (29 04 2018).
BIBLIOGRAPHY Doerga, V., 2018. Company profile Interview (29 04 2018).
Business Background Questionnaire
What type of sector the business operate?
Professional Service ??Manufacturing ? Retail ??Wholesaler/Distributor
Where is the company located?
What type of products and/or services the business offers?
In what year the business was registered?
How the business came into existence?
? Started ?Bought existing ? Franchised ? Inherited
Who are considered the company’s main targets?
Why would a customer buy from you and not your competition? What makes you unique?
How many employees, the company currently employs?
??Small (less than 50) ? medium (from 50 to 249) ? Large (greater or equal to 250)
Who are considered the company’s main competitors?
Where the company gets its goods/services to provide for its customers?
8077205969000BATH & BODY WORKS LOTIONS
BATH & BODY WORKS MIST
CITATION Ver181 l 1033 (Anon., n.d.)
CITATION Ver182 l 1033 (Anon., n.d.)
CITATION Cal18 l 1033 (Anon., n.d.)
An internal and external scan was executed as part of Perfumes Guayna strategic analysis to determine the strenght, weakness, opportunities and threats. The results assesses the company’s capabilities to that of the competitive environment. From the analysis, the following information were gathered:
STRENGTH: These factors builds a strong foundation for the company while distinct it from its competitors.
Skilled and experienced work force
Wide variety of products
Use of retail Point of Sale system
Excellent customer service
Prompt delivery service
Company situated in a populated region
WEAKNESSES: These factors can be improved strategically, if not the company can loose competitive advantage.
Small customer database
Slow decision making process
Poor pricing strategy
Hight overhead cost
Inconsistent re-order level of products
Limited/poor marketing strategy
As part of this strategic analysis, strengths and weaknesses are internally, while opportunity and threat are external to the company.
OPPORTUNITY: Theses factors offer solutions to growth.
Benefit from lower import taxes
New location outlet due to expansion of shopping mall
Competitors exhibit no marketing stratgeies
Introduce and delveop E-commerce
Utilise ATM machines to facilitate card payment
Expand and offer wider collection of products on demand
THREATS: These factors give the impression in the external environment threatening
Counterfeit in fragrances
Increasing online shopping
Businesses are undergoing digital transformational changes with technology as the main contributing factor.These technological advancements are implemented in business models and operational systems creating competitive advantages among competitors.Large businesses applying these digital elements poses implications and challenges for existing small businesses including Perfumes Guyana. As such this report further highlights and examine the above mentioned:
With digital technology incorporated strategically within the affairs of the company it paves effective and maximum output level. The use of internet, social media and other communication plathform to market products and services to a wider geographic location driving growth, increase revenue and performance in ways that were impossible with traditional models. By incorporating the marketing mix strategy and using appropriate channels such as websites, SMS, social media sites eg. Facebook, Twitter, Instagram the message can be delivered consistenly.
The influence of technology on consumer purchasing behaviour has changed over the years resulting in a decrease in sales. Regular monitoring indicates consumers read reviews, source competitors and compare prices before final purchase. Consumer purchasing behaviour includes actions, reactions and consequences that occur before the consumer goes through a decision-making process, makes a final decision then eventually uses the product.
Implications of increasing digital consumer puchasing behaviour for the marketing department includes:
Competition -Online shopping is dominating the market reducing foot traffic in Perfumes Guyana showroom. The growth of the digital economy allows consumers to familiarize themselves with digital services and products which allows time saving and cost effective ways in doing business.Colognes and perfumes are easily accessed with a click away considering Pefumes Guyana do not offer online shopping and has a formidable online presence. No market research is conducted to analyse the trends of audience. This result in strong competition with existing rivals.
Perfumes Guyana uses Point of Sale program within its operation. Reports can be generated within 1 minute. This system automatically stores and organizes information for easier and time efficient access. True meaningful information depends on the person entering the data. Customers querying on a particular product expects reliable and honest feedback. Due to outdated soft ware and poor internet connectivity provided the main server freezes often and interrup daily operations. Experiencing these drawbacks results in lost of customer loyalty.
The challenges Perfumes Guyana Marketing department experiences with increase in digital puchasing behaviour contributes
Perfumes Guyana offer both products and services satisfying the physiological and psychological needs of its customer by delivering high quality products and excellent customer service complimenting the process. Marketing plays an important role in building awareness and as such a variety of media channels are used to target various audience. This report analyses the main distinct features differences of consumer preferences and marketable strategies applicable to increase awareness of intangibles.
An element of the marketing mix is Product. A product can be defined as anything that we can offer to a market for attention, acquisition, use or consumption that could satisfy a need or want CITATION Max15 l 1033 (Claessens, 2015).
Perfumes Guyana offers tangible products such as colognes and perfumes which can be held, seen, felt and smell and satisfies the needs of the user. Customers purchasing these products can return the item for an exchange if he or she is not satisfied either because they purchase a wrong fragrance or it’s damaged. Upon completion of payment, the item is owned by the customer since ownership is transferred the moment transaction is completed. These products are considered perishable having a long life and can be stored for later use. They offer a wide variety of authentic designer fragrances for both male and female, mists and soothing lotions.
Inseparability- services cannot be separated from their providers since they can be consumed at the same time they are offered. On the other hand, a product can be separated from the owner once the purchase has been completed.
Quality- quality of products can be compared since these are physical features that can be held. However, it may be difficult to compare the quality of the services rendered by different service providers.
Returnability- it is easier to return a product to the seller if the customer is not satisfied about it. In turn, the customer will get a replacement of the returned product. However, a service cannot be returned to the service provider since it is something that is intangible.
Value perspective- the value of a service is offered by the service provider while the value of the product is derived from using it by the customer. Value of a service cannot be separated from the provider while the value of a product can be taken or created by the final user of the product offered on the market.
Shelf line- a service has a shorter shelf line compared to a product. A product can be sold at a later date if it fails to sell on a given period. This is different with regard to a service that has a short shelve line and should be sold earlier.
Table showing the differences between a product and service
CnclusionTough the terms product and service are often used interchangeably, it can be observed that they significantly differ. The major difference noted between the two is that a product is physical in nature and it is tangible. On the other hand, it can be seen that a service is intangible and it cannot be held therefore cannot be separated from the provider. Quality of the product is determined by the customer while the quality of a service is determined by the provider. A product can be stored for future use or sale and it can be returned to the buyer if the need arises. However, a service can be consumed the moment it is offered and cannot be stored for future use. A service cannot be returned to the service provider for any reason since it is jot tangible.
The term “Big Data” may have been around for some time now, but there is still quite a lot of confusion about what it actually means. In truth, the concept is continually evolving and being reconsidered, as it remains the driving force behind many ongoing waves of digital transformation, including artificial intelligence, data science and the Internet of Things. But what exactly is Big Data and how is it changing our world?
The astonishing growth of Big Data
It all starts with the explosion in the amount of data we have generated since the dawn of the digital age. This is largely due to the rise of computers, the Internet and technology capable of capturing data from the world we live in. Data in itself isn’t a new invention. Going back even before computers and databases, we had paper transaction records, customer records and archive files – all of which are data. Computers, and particularly spreadsheets and databases, gave us a way to store and organise data on a large scale, in an easily accessible way. Suddenly, information was available at the click of a mouse.
We’ve come a long way since early spreadsheets and databases, though. Today, every two days we create as much data as we did from the beginning of time until 2000. That’s right, every two days. And the amount of data we’re creating continues to increase rapidly; by 2020, the amount of digital information available will have grown from around 5 zettabytes today to 50 zettabytes.
Nowadays, almost every action we take leaves a digital trail. We generate data whenever we go online, when we carry our GPS-equipped smartphones, when we communicate with our friends through social media or chat applications, and when we shop. You could say we leave digital footprints with everything we do that involves a digital action, which is almost everything. On top of this, the amount of machine-generated data is rapidly growing too. Data is generated and shared when our “smart” home devices communicate with each other or with their home servers. Industrial machinery in plants and factories around the world are increasingly equipped with sensors that gather and transmit data.
The term “Big Data” refers to the collection of all this data and our ability to use it to our advantage across a wide range of areas, including business.
What is Big Data? (Video) from Bernard Marr
How does Big Data work?
Big Data works on the principle that the more you know about anything or any situation, the more reliably you can gain new insights and make predictions about what will happen in the future. By comparing more data points, relationships begin to emerge that were previously hidden, and these relationships enable us to learn and make smarter decisions. Most commonly, this is done through a process that involves building models, based on the data we can collect, and then running simulations, tweaking the value of data points each time and monitoring how it impacts our results. This process is automated – today’s advanced analytics technology will run millions of these simulations, tweaking all the possible variables until it finds a pattern – or an insight – that helps solve the problem it is working on.
Until relatively recently, data was limited to spreadsheets or databases – and it was all very ordered and neat. Anything that wasn’t easily organised into rows and columns was simply too difficult to work with and was ignored. Now though, advances in storage and analytics mean that we can capture, store and work with many, many different types of data. As a result, “data” can now mean anything from databases to photos, videos, sound recordings, written text and sensor data.
To make sense of all of this messy data, Big Data projects often use cutting-edge analytics involving artificial intelligence and machine learning. By teaching computers to identify what this data represents– through image recognition or natural language processing, for example – they can learn to spot patterns much more quickly and reliably than humans.
How is Big Data being used?
This ever-growing stream of sensor information, photographs, text, voice and video data means we can now use data in ways that were not possible even a few years ago. This is revolutionising the world of business across almost every industry. Companies can now accurately predict what specific segments of customers will want to buy, and when, to an incredibly accurate degree. And Big Data is also helping companies run their operations in a much more efficient way.
Even outside of business, Big Data projects are already helping to change our world in a number of ways, such as:
Improving healthcare – Data-driven medicine involves analysing vast numbers of medical records and images for patterns that can help spot disease early and develop new medicines.
Predicting and responding to natural and man-made disasters – Sensor data can be analysed to predict where earthquakes are likely to strike next, and patterns of human behaviour give clues that help organisations give relief to survivors. Big Data technology is also used to monitor and safeguard the flow of refugees away from war zones around the world.
Preventing crime – Police forces are increasingly adopting data-driven strategies based on their own intelligence and public data sets in order to deploy resources more efficiently and act as a deterrent where one is needed.
Big Data concerns
Big Data gives us unprecedented insights and opportunities, but it also raises concerns and questions that must be addressed:
Data privacy – The Big Data we now generate contains a lot of information about our personal lives, much of which we have a right to keep private. Increasingly, we are asked to strike a balance between the amount of personal data we divulge, and the convenience that Big Data-powered apps and services offer.
Data security – Even if we decide we are happy for someone to have our data for a particular purpose, can we trust them to keep it safe?
Data discrimination – When everything is known, will it become acceptable to discriminate against people based on data we have on their lives? We already use credit scoring to decide who can borrow money, and insurance is heavily data-driven. We can expect to be analysed and assessed in greater detail, and care must be taken that this isn’t done in a way that contributes to making life more difficult for those who already have fewer resources and access to information.
Facing up to these challenges is an important part of Big Data, and they must be addressed by organisations who want to take advantage of data. Failure to do so can leave businesses vulnerable, not just in terms of their reputation, but also legally and financially.
Looking to the future
Data is changing our world and the way we live at an unprecedented rate. If Big Data is capable of all this today – just imagine what it will be capable of tomorrow. The amount of data available to us is only going to increase, and analytics technology will become more advanced.
For businesses, the ability to leverage Big Data is going to become increasingly critical in the coming years. Those companies that view data as a strategic asset are the ones that will survive and thrive. Those that ignore this revolution risk being left behind.
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