Unit 16 Assignment 1 Part B.
The two businesses which I have decided to write about are Tesco and Topshop.
Tesco is a ‘multinational groceries and general merchandise retailer’. It is known to be one
of the largest food retailers in the world, with approximately 2,318 stores which all together
employ around 326,000 workers. Tescos products/services target all ages, and as stated by
the ‘Business Research Methodology (BRM)’, ‘Tesco products and services represent cost-
conscious individuals who are interested in bargains and sales and value a variety of choices.
Other customer segments in the UK are targeted by different supermarket chains.’
https://research-methodology.net/tesco-segmentation-targeting-and-positioning-2/
#:~:text=However%20in%20general%2C%20target%20customer,targeted%20by
%20different%20supermarket%20chains.
In contrast, Topshop is a ‘dynamic’ clothing retailer who focuses on connecting its
worldwide audience with the ‘newest’/latest, next upcoming fashion, style and culture.
Topshop offers its products/services in over 168 stores and 94 franchises located in over 24
countries. As stated by the business itself, “Our 10,000+ employees across head office and
stores embody every part of what we do – we dare to lead where others follow.”
https://www.linkedin.com/company/topshop-topman#:~:text=Our%2010%2C000%2B
%20employees%20across%20head,are%20creative%2C%20driven%20and%20passionate.
Lastly, Topshop’s target audience/market is directed at 16-30 year olds, which compared to
other clothing retailers e.g. Primark is very restrictive.
Psychological Factors.
Psychological factors are quite simply factors which affect a customer ‘psychologically’.
These factors tend to influence a person's mental state, and direct the person into making
certain decisions/purchases. Shops i.e Tesco and Topshop will use psychological
factors/techniques to influence their customers purchase decisions e.g. setting up a ‘shelf-
layout’ so that the most profitable products are eye level with the customer. Following this,
I will be writing about some of these psychological techniques and how they affect modern
day customers.
Fixtures Positioning.
Tesco loves to place the best valued products on eye level, this way their most profitable
items will have a higher chance of being purchased. It's proven that an effectives shelf
layout can increase sales up to 5%, and changing a shelf layout tends to increase volume of
a category up to 14% https://casestudies.storetrials.com/how-does-the-layout-of-your-
shelf-affect-sales-4be54aafe52 Therefore in the long-run this would boost Tesco’s profit
, gains. In addition to this, Tesco also likes to place kids at the lower shelves e.g. chocolate,
toys etc. These items which are placed lower on the shelf tend to be more popular at the
counter. This is because the parent doesn't want to waste any time and probably wants to
leave the store quickly when at the counter, and the quickest way to fix the problem with
their kid is to quit simply purchasing the product. The reason why these types of products
get shelved at the bottom shelf is because even if the parents don’t see it, their kid has a
good chance at spotting it, and will be drawn towards it. What Tesco is hoping to gain from
this is for the kid to be so attracted to the product that it will eventually force them to beg
their parents, resulting in a ‘final’ purchase. Overall Tesco places ‘adult products’ more often
on eye level than lower shelves, as studies have shown that ‘products receive 35% greater
attention than those at lower shelves. It is perfect for placing products with a high profit
margin.’ https://medium.com/@giaphualihua/eye-level-is-buy-level-the-principles-of-visual-
merchandising-and-shelf-placement-5f2fd8f7f298
Equally to Topshop, the business also focuses heavily on shelf layout. Most popular products
tend to be put on mannequins (this makes the product look more high value and look more
appealing to the customers. As a result the customer will believe that this is a ‘must have’
product’, since its the latest trending item in the clothing industry, and ‘everyone’ has it)
Additionally manikins seem to be more of an effectives way to promote clothing than a
model, it's said that ‘a mannequin is actually better at showing off a piece’s features. Up-
close shots of gorgeous fabrics and patterns are eye-catching, piquing a customer’s interest’
https://www.intelligencenode.com/blog/model-vs-mannequin-which-produces-more-sales/
We do see Topshop use models as a way to promote their latest fashion wear, however…
models are not all that effective, studies have proven that a mid-tier all the way to a high
tier model will increase the sale of a specific product by 1-5%, which isn't really effective
since the model is already probably eating up around 10% of the companies budget.
https://www.intelligencenode.com/blog/model-vs-mannequin-which-produces-more-sales/
Additionally at the front of the store, best selling products are advertised through a window
display (this way when people walk past the store, the store will have a good chance at
turning passers-by, into paying customers) Windows displays have been proven to attract
the customers attentions very quickly, Lyn Falk, President of US-based branding, design and
consulting firm RetailWorks Inc. says “it should attract attention quickly, within 3 seconds,
and hold one’s interest long enough to move the person to action, to enter the store”. By
window displaying Topshop can ensure that even if not many customers walk into the store,
they have a pretty good chance at enticing new customers through the displays which they
have at the front of the store.The way in which the Topshop window is displayed is through
the showcases of their latest clothing which is ‘worn’ by the mannequins. Not only would
you see clothing on the window display, but Topshop would also display ‘price discounts’
e.g. ‘clearance’. In addition, Topshop will sometimes have ‘cool’ fonts saying ‘summer sales’
on their windows, this is mainly only seen throughout their sales of seasonal clothing lines.
These techniques are used in all Topshop stores in hopes of attracting people walking by.
The ‘vibrant’ colours used on the fonts, and the limited clothing lines displayed with the
addition of a big red sales tag, should hopefully be enough to attract people into coming in,
and checking out the store. These interactions between the window display and new
potential customers, will play a huge part in generating greater revenue for the company.
Not only this, but it will grow Topshop's brand awareness due to the continuous increase of
