Omni-channel Retail Marketing Report: Glassons Case Study, 156.339

This report delves into the realm of omni-channel retail marketing, examining its significance and evolution in the current business landscape. The report utilizes Glassons, a New Zealand women's fashion retailer, as a case study to assess the company's current channel utilization and omni-channel performance. It explores the distinctions between multiple and omni-channel approaches, emphasizing the integration of various channels like physical stores, online platforms, mobile applications, and social media. The report identifies the importance of a mobile-first strategy, the use of beacon technology, and the impact of pricing and promotion strategies. It also reviews literature on retail mix elements, offering recommendations for improving Glassons' omni-channel performance, merchandise assortment, and customer service. Furthermore, it addresses the challenges and opportunities presented by the increasing pressure from online retailing, suggesting strategies to enhance customer experience, personalize shopping, and adapt to emerging retail trends. The report concludes with a call to action for Glassons to refine its retail strategy and capitalize on the evolving digital landscape to ensure continued success.

Running Head: MARKETING 1
Omni-channel Retail Marketing
University Name:
Student Name:
Date: 7 June 2019

MARKETING 2
Omni-channel is considered as the retailing future, and there is no way to get out of it.
It’s exactly what customers were expecting and where they spend their amount (Jones, 2016).
The marketing through Omni-channel is referred to as when the retailers make use of various
channels to meet the customers, for the purpose of creating the seamless as well as much
more holistic experience of retailing (Brown, 2014).
In the ongoing race of physical stores vs online shopping, there is no one who will
win. The sales numbers of retailing are also highly dwindling for several years, where else
online sales figures are also rapidly increasing (Brown, 2014). In specific, Amazon has
achieved the highest growth chunk, and through making the current Whole Food purchase, it
seems to appear that marketing through Omni-channel for the retailers around the world is
advantageous (Brown, 2014).

MARKETING 3
Warehouse Stationery has adopted Omni-channel marketing a long time back. It has
taken this strategy for strengthening the position of e-commerce through enhancing online
sales fulfilment (Jaravaza & Chitando, 2013). Its journey is ongoing by making use of E-bay
Ship to store and Company in-store pickup. They are also making use of new paths that
initiate them to make use of a single system of selling for the interaction with customers
(Levy, Weitz & Grewal, 2018). In the present environment of business, the capabilities of
Omni-channel begin the involvement of core shoppers with the retailers and make them visit
the physical store (Jaravaza & Chitando, 2013).
Warehouse Stationary ‘multiple channel’ / ‘multi-channel (Omni-channel)
Warehouse Stationery has adopted the Omni-channel approach, in order to make the
people shop in the way they want to, whether it's from home, store or the mobiles, through
the help of Warehouse stationary direct catalogue (Pope, Lane & Stein, 2012). The company
has various formats of the shop, which meet the requirement of customers (12 forecasts for
the retail industry in 2017, 2017). Few drives towards the large stores, other than to do the
shopping for fresh foods over the local high street, where else few find it easy to do the
shopping from online sources and order the shopping straight to their home (Pope, Lane &
Stein, 2012). Nevertheless, Warehouse stationery provides the facility of online shopping;
consumers are able to easily make the low trips to Warehouse stationery for stocking up the
day to day requirements (Levy, Weitz & Grewal, 2018). The service is referred to as
something that can go hand in hand for the busy ladies, as it initiates the consumers to do
shopping comfortably from their home (Pope, Lane & Stein, 2012).
Currently, Warehouse stationery has stayed as a successful company under Omni-
channel retailers with the increase in online sales (Pope, Lane & Stein, 2012). In the 2010
yearly report, it was mentioned that Warehouse stationery had reported that there the

MARKETING 4
company profits were rolled by around 10.1% to around £3.4bn, along with £136m through
the increase in online sales (Pope, Lane & Stein, 2012). It was noted that by 2011 end, the
company had recorded that online sales were increased by 15% (Pope, Lane & Stein, 2012).
The Omni-channel approach adopted by Warehouse stationery was the essential
formula behind the success of the company, and therefore, the company provides the key
example for showing how the successful retailers can efficiently work or operate their both
offline and online services, and also integrate, in order to complement one another (Pope,
Lane & Stein, 2012). Indeed, the formula behind the success of Warehouse stationery seems
to look towards the future. It's published in one of the Deloitte reports that shopping future
exists in the digital era and the options it offers to their customers (Levy, Weitz & Grewal,
2018). As per Deloitte, Omni-channel shoppers spend around 82% higher for every
transaction they made, in comparison with the one who makes buy-in-store (Pope, Lane &
Stein, 2012). It is analysed that the distribution channel includes various stages relying on
how different company are engaged in it (12 forecasts for the retail industry in 2017, 2017).
Warehouse Stationery has also introduced their F plan, which includes the complete
cages, trucks as well as containers, which go a few miles and raise the economy of fuel
(Pope, Lane & Stein, 2012). The plan of the company is supporting them in attaining the
goals related to distribution emissions for every product delivered by 2012 (Winter, 2018).
It's known as the stepping stone towards the retailer's final objective to meet the carbon
neutral by the year 2050 (Jaravaza & Chitando, 2013). The problems initiated are related to
Warehouse Stationary optimisation of the network to assist the growth in business as well as
efficiency improvements (Levy, Weitz & Grewal, 2018). Warehouse Stationery has also
reduced the various distribution centres from around 36 to around 26 that are located
strategically (Winter, 2018).

MARKETING 5
Through regular ensuring that centres of distribution are near to the store network and
hold growth capacity, it has supported Warehouse stationery to minimise the vehicle miles
they travel; reduce the store trip length; enhance the utilisation of assets; reduce lead time,
and decrease carbon and cost (Winter, 2018). The strategy of Warehouse stationery has
helped in creating a comprehensive network, which is more efficient by answering the
sustainable requirements of business and saving cost needs (Winter, 2018).
Weak Retail mix elements of Warehouse Stationary
Pricing
The Warehouse stationary profits were severely impacted through the decision taken
over the low cost to their customers (Jaravaza & Chitando, 2013). In the result of this, the
profits decreased by 15% to around $35.2 million calculated after the tax in January, to
around $41.6 in a similar year (Wyers, 2014). This profit slump happened because of the
various major changes taking place in business, which also includes hi-lo strategy towards the
strategy of everyday low cost in the Warehouse Stationary (Wyers, 2014). The changes take
place in the Warehouse stationary pricing strategy has led to the less average price of sales,
but it was expected to get high, in place of offset through the high margin of profits, when the
discontinued ranges of clearance get completed (Levy, Weitz & Grewal, 2018). Along with
this, the Warehouse stationary had also faced various process and internal system challenges
(Wyers, 2014).
Promotion
It is analysed that the Warehouse Stationary feedback mechanism is weak (12
forecasts for the retail industry in 2017, 2017). As it was explored that the company hold little
knowledge or idea about the changes taking place in customer preferences and tastes, and the
company is still working as per last century (Wyers, 2014). The current system, Warehouse

MARKETING 6
stationery hold little to no control on the items which they sold out (Jaravaza & Chitando,
2013). In the context of the intermediaries margins, the wholesaler’s margin varies from one
variety to the other, along with gross margin, was more in the metropolitan market areas
(Wyers, 2014). It was analysed that the company net profits under the percentage of working
capital of Warehouse stationery are around 15% to approximately 20%. Where else the
retailer’s percentage is about 3% to 4% (Wyers, 2014).
Besides this, the distribution of the product by the help of co-operative stores of
Warehouse stationery is explored to have less importance (Levy, Weitz & Grewal, 2018). It
is noted that in case the co-operative institutions hold capable distribution instruments and the
way of stabilising the price, then the activities need to strengthen and increased with the extra
credits as well as managerial resources should be provided to them (Wyers, 2014).
Most of the retailers were feeling unsatisfied through the existing schemes that
Warehouse stationery is offering to them (Levy, Weitz & Grewal, 2018). They had
recommended that there are no schemes which should be left out. Other aspects that are
highlighted are related to the company, that didn’t work well in the area of promotion (Wen-
Yeh, Schrank & Dubinsky, 2004). Warehouse stationery failed in offered the banners or
stands for the purpose of displaying on shops, through which they can gain attention and
emphasise more on customers, who could not be tapped easily (Wen-Yeh, Schrank &
Dubinsky, 2004). Many retailers have recommended that Warehouse stationery should come
up with new product lines, under the range with enough availability of similar things, so that
Warehouse stationery can move into the race under the category of price (Wen-Yeh, Schrank
& Dubinsky, 2004).
Literature review on two retail mix elements: what appears to work in theory, and/or
what seems to be best practice internationally?

MARKETING 7
Pricing retail mix element
At the base, pricing is considered as the rate of exchange for the values that one offer.
It also acts as an intermediary among what the business produce and what the customers are
interested in paying (Wen-Yeh, Schrank & Dubinsky, 2004). Here comes the idea that pricing
is the most significant part of the business (Brown, 2014). It not only leads to 1%
enhancement in optimising price results, but it also increases the profits by 11% (Wen-Yeh,
Schrank & Dubinsky, 2004). But everything one does from the task of marketing to the sale
of a product; it works towards buttressing the various number assigned to the item (8 realistic
customer service trends for 2017, 2016).
A few instances, changes in prices can achieve success; for example, sales increased
for PepsiCo in North America after making changes in prices (Levy, Weitz & Grewal, 2018).
At other instance, changes in prices are not correctly received, which Warehouse stationery
explored after implementing the rise of 9%, which drive the customers towards cheaper
brands (8 realistic customer service trends for 2017, 2016). Later on, the company refer to
this step as a misstep and reduce the cost by 6% (Wen-Yeh, Schrank & Dubinsky, 2004).
Pricing can move all over the place, including many SKUs and much individual product price
lists, which can negatively impact the finances of the company (Wen-Yeh, Schrank &
Dubinsky, 2004).
The organisation is facing hardships due to the price inconsistency, whether it’s over
the discounting, promotion of retailing, and the problem is that organisations don’t know
what customers are actually giving for purchasing the item (Wen-Yeh, Schrank & Dubinsky,
2004). There is an absence of visibility, control and finally, there is a lack of confidence not
in terms of products, but it’s in the process that is set and the cost that customers are
interested in paying for purchasing the product (Wen-Yeh, Schrank & Dubinsky, 2004).

MARKETING 8
Pricing is referred to as the key to create the top line revenue, but at the same time, effective
strategy of pricing consider the full range of potential reactions of customers and operational
factors (Manthei, 2016).
Promotional retail mix element
Developing promotional plan budget- Developing promotional plan budget is considered as
the technical part (Massey Business School, 2016). The retailers should try to allocate the
finances in the manner that one can achieve the full benefits out of it by applying fewer
revenues. The planned budget at the starting of the year goes to the end of the year (Proctor,
2014). When one launches new items like stationery items at the starting of the year, they will
require a lot of promotional and advertising activities, in order to create awareness about the
product among customers (Proctor, 2014).
For making the promotional plan, the company should advertise the items in
newspapers and magazines (Massey Business School, 2016). The company can even promote
their products over the television through providing the contract to an advertising agency for
making it look attractive, and this will help in attracting the customers when they will watch
the ad on TV (Proctor, 2014). The company can even distribute the sample items to multiple
retailers (Massey Business School, 2016). The company can also make the brushes, posters
and distribute in all the possible areas, in which it’s easily visible by people (Jaravaza &
Chitando, 2013). The company can even purchase the billboard in a specific area, which is
near to the traffic signal so that people can easily view the ads while standing at a red light
signal (Proctor, 2014).
Developing communication goals by applying DAGMAR theoretical approach- DAGMAR is
known as “Defining advertising goals for measuring the advertising results” (Massey

MARKETING 9
Business School, 2016). This theory is related to advertising planning, and it works like a
method for choosing the goal and to use the goals for the purpose of measuring the
performance (Michon, Chebat & Turley, 2005). It intends towards creating awareness,
imparting the details and developing an attitude (Jaravaza & Chitando, 2013). DAGMAR
theory includes four stages, such as, the awareness that is used for creating customer
awareness of the company existing brand; comprehension is made customers learn about
product usage; conviction is referred as persuading the consumers to purchase an item; an
action that refers to making consumers to buy the product (Michon, Chebat & Turley, 2005).
Showing how activities of the promotional plan are planned, managed and organised-
the company can plan as well as manage the promotional activities by categorising the task
between the staff so that every task is completed in the right way. In this way, it wouldn’t
create any burden on anyone (Michon, Chebat & Turley, 2005). For showing ads on TV, the
company can analyse the right advertising agency, so that they can create more attractive ads
(Michon, Chebat & Turley, 2005). The company can even offer the items on the discounted
rates in comparison with competitors (Massey Business School, 2016). For example,
Warehouse stationery can offer the items at a different office, hotels, colleges, so that people
can purchase their products (Michon, Chebat & Turley, 2005). In this manner, they can
collect feedback from customers and try to improve the items accordingly.
Best practice internationally
Among promotional and pricing strategies, pricing is more critical for any business
(Nath, 2009). It’s the only way in which companies can understand at what price they can
provide the product, while simultaneously maintaining the right profit margin and going with
the competition (Nath, 2009). The organisation can pick from different pricing strategies, and
its selection relies on various factors. Todorova (2015) mentions that the business can

MARKETING 10
establish the process for increasing the profitability of every unit, which is sold in the market.
They can even set up the price for stopping the competition to enter the market, or either they
can raise the market share by staying in the market (Todorova, 2015).
Pricing is considered as one of the most significant elements in terms of developing
marketing strategies (Nath, 2009). Pricing is considered as the first thing, which is noticed by
the customers, and this comes up as the factor on which decision is taken to whether to
purchase the product or not (Parsons, 2011). However, it can be mentioned that market
competition is increasing at a constant phase, especially with the increase in online shopping
popularity (Parsons, 2011). This implies that it has become significant for the businesses to
keep their eye over the behaviour of competitors, while establishing the cost, for the purpose
of making the required market competitive edge (Parsons, 2011). While making a comparison
between the online prices has become easier and customers are also aware of the monetary
product values. All such factors are termed as important by referring while establishing the
product or service prices (Parsons, 2011).
Application of two elements in retailer to make them Omni-channel
The ecommerce future is Omni-channel, as it offer the retailers with an opportunity to
place the points of conversion right at the place, where shoppers are present today. The
question is how the pricing work, where sales channels is expanding every day in world
(Eaton, 2018). There are three main pricing strategies of Omni-channel, which needs to be
referred while pricing the products over the store, website, Google shopping or any other, and
one should know everything while selecting the right one (Eaton, 2018).
Omni channel pricing- the pricing is referred as the practice of applying common
product cost at each channel (Eaton, 2018). The method of pricing exist with the approach of
Omni-channel for retailers to sellers for offering unified experience of shopping, regardless

MARKETING 11
of which channel is used by customers at Warehouse stationary, such as brick and mortar
store, social media, website, and online marketplace (Eaton, 2018).
Hybrid pricing- it’s similar to Omni-channel pricing, but it includes exceptions. For example,
the customer at Warehouse stationery has viewed the particular product on the website
different times, but it always left without purchasing anything (Augmented reality, 2017).
Through adopting the approach of hybrid pricing, one should try to show the advertisement to
shoppers providing the 10% discount for the items, which they have seen the website of the
company (Augmented reality, 2017). Hybrid pricing is quite handy if the store on which
product is sold include different pricing rules for sainted, Warehouse stationary mention that
marketplace list prices are equal or less than the channel pricing (Augmented reality, 2017).
Channel-Specific Pricing- it exists on the channel instead of customers. Retailers
can experience different pricing on various online and outlets (Heneghan, 2015).
That’s why shoppers should analyse the mixed cost of the brand over the website
and social media (Jaravaza & Chitando, 2013). It looks stimulating the scenario of
India retailers planning to build new technologies investment and capabilities
(Heneghan, 2015).
Anticipated timeframe for achieving improvements
Adoption of Omni-channel, as well as execution and its integration with several cross
channels system of sales, the platform of agile technology that helps in freeing the brands,
will emphasize more on customer involvement and offer the experience of seamless shopping
(Heneghan, 2015). The platform of agile technology requires to hold a capability to offer a
consolidated view of real-time of inventory through the disparate system into the individual
system, as well as organizational view around the selling channels (Heneghan, 2015).
Offering real-time brands access to information existing around the disparate system, along

MARKETING 12
with the capability to create challenging real-time decisions exist over the available
information is considered as necessary while evaluating the platform values and timeframe
for achieving the improvements (Heneghan, 2015).
How retailer / store change and adapt in the next 5 years
Sometime back, online shopping has impacted the brick and mortar business of
retailers in the highly devastating manner (Duckworth, 2017). But after five years, the way in
which consumers do the shopping or either communicate with the brands will entirely be
revolutionised through the experience of Omni-channel as well as through mobile app of e-
commerce (Jaravaza & Chitando, 2013). In the context of what will come next in retailing,
the experience of online shopping is just referred to as the starting of entirely disrupted
industry (Bannister & Hogg, 2004). In the current Nielsen survey, it was analysed that 60%
of the consumers explore the internet before going for the in-store purchase (Duckworth,
2017). This type of phenomenon is considered as web-rooming (Jaravaza & Chitando, 2013).
There are only 51% that work in such manners, such as show-rooming for exploring the in-
store and purchasing online (Duckworth, 2017). It is also reported in Accenture that around
88% of them go for virtual shopping and has purchased physically, where else, there were
73%, who look over the products in store before making an online purchase (Duckworth,
2017). It is analysed that the retail future exists in the highly integrative customer experience
mobilisation. This will bring the revolution in both the customer experience and operations.
In the coming years, robots will bring change in the experience of customers for
centuries. By applying the tracking technology, it will become easy to track robots for every
product in the store (Duckworth, 2017). This will help in creating an excellent customer
experience and will also enhance the inefficiencies of operations. The cost of opportunity for
satisfying the customers along with tracked products will reduce the cost through GPS

MARKETING 13
tracking devices, and it will be most valuable in the upcoming seamless experience of
customers (Duckworth, 2017).
In the coming years, augmented reality will come up as the technology, which will
superimpose the image of computer generation over the customer perception of the real
world. It will also offer a composite view. It will highly dominate the retail sector for the
coming years, as it will minimise the cost and increase new opportunities for solving practical
problems, instead of showing advertising campaigns (Virtual reality, 2017). There are
different ways to use augmented reality, such as virtual dressing areas; virtual make-up
application, and appliance visualisation.
The future of retail products will help in enhancing the quick smartphone tap on the
products, who move them towards the specific optimised mobile webpage, through the local
level of stock and educational details (Virtual reality, 2017).
It’s highly ridiculous to mention that it’s not a mainstream experience. Instead, digital
markets will require to develop the educational portal for the consumer items (Virtual reality,
2017). It’s mainly a long term investment, which acts as imparting employees training and
enhancing the inefficacies of staff. Keeping the nightmare aside, the coming or launch of
drones will help in improving the satisfaction of customers (Virtual reality, 2017). This
technology is quite surprising, as its efficient and of low cost, and the same will also reduce
the costs in demand for transportation as well as the workforce.
Retailing industry, which is going slow, will adapt to the new technologies, but now
the situation is of doing and die (Virtual reality, 2017). The retailers will only exist, if they
have highly committed resources with technology, which is integrated with the offline
purchasing habits of customers and help in creating an experience of customers fast,
convenient as well as better informed (Virtual reality, 2017).

MARKETING 14
Recommendations for long term changes that Warehouse Stationary should make
Warehouse Stationery has adopted the self-checkout method, and the checkout
supports the employees in helping the customers. Nevertheless, Warehouse stationery has the
checkout through which employees assist (Jones, 2016). In the case of Warehouse stationery,
it is recommended that Warehouse stationery should try to get rid of from the method of self-
checkouts (Jones, 2016). The company includes a wide range of products and through
employees supporting the customers and communicating with them, during scanning the
items and enquiring what they have purchased (Jones, 2016). They also impart the product
knowledge for enhancing the customer service and connect as well as build the relationship
between employees and customers.
Warehouse Stationery has also adopted a wide range of payment methods. It is
analysed that at Warehouse, stationary payment can be made either online, and customers can
also visit the store and pick the items (Girard, 2018). This payment method is referred to as
click and collect. Warehouse stationery also includes the BizReward card for their loyal
customers, and another payment method is not by cash; instead it’s by points collected by
regular customers (Where virtual reality fits into retail, 2017). Warehouse stationery makes
use of EFTPOS version, which includes the capability of Pay Wave cards. The method
payment help in saving the time and also support in making fast payment (Girard, 2018).
It is recommended that Warehouse stationery offer the machine of Pay Wave to their
customers. This help in making the process faster and presently, all the EFTPOS in New
Zealand hold the Pay Wave ability (Girard, 2018).
It is highly recommended that Warehouse stationery should try to leverage the
technology of Smartphones towards digitally innovating the experience of in-store customers
through equipping the customers with personalisation, and knowledge of in-store (Davies,

MARKETING 15
2015). For instance, the Warehouse Stationary App could be increased for offering the
functionality to assist the customers in locating the particular product within the superstores
and for replacing the scanning while shopping devices for the exchange of seamless
experiences of digitalisation through using digital wallets (Davies, 2015). This support in
developing the opportunity of operating model by reducing the in-store cost and headcount.
At last, Warehouse stationery will be able to overcome the challenges, which are faced
through user scanning barcodes in the machine of self-checkouts by making use of innovative
technology that doesn’t need barcodes (Davies, 2015).

MARKETING 16
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