Tuesday, June 4, 2013

Risk Management Strategies

          Today in class, I had to analyse the risk management strategies of Sidra supermarket in the Student Centre. I was extremely interested in this project and examining the way the store was set up and thus decided to do the same when I went to shop for make up today at 51 East. While I was walking around trying to find all of my favourite items, I was paying close attention to the conventions used by the store and how they appealed to their customers.
          I tried to answer the first question from the worksheet with this new scenario I was in. The standard items I would find in this section was obviously makeup, perfumes, body soap and face creams. I also expected to see organized stands that divide all of the different products, and a colourful displays for every different brand available.

          The second question on the worksheet involved pointing out different risk management techniques used by the business. The first was having well known brands and companies that are known internationally and locally. Their brands included both successful high-end companies and regular ones. Some high end brands also used celebrities as the face of their products. For example, Charlize Theron models for Dior make up and her photo was blown up on the wall of that section. This is considered to be a risk management strategy as Dior hired a prominent figure to be a part of their campaign.

Each brand also sold every make up product they have available. For example, the Chanel stand included eye shadow, blush, lipstick, mascara, perfumes, creams, soaps, nail polish and much more. This is called overproduction where you create more cultural products than the market can sustain in hopes that a few big hits will cover the numerous losses. This concept applied with every brand in the make up section.
Another technique was the use of product placement. At the entrance of the store, the first thing you would see in this section was a massive perfume display for Guerlain. It was a small-elevated stage by the escalator and was designed beautifully. One could not help and stare at the stand if they pass by it. This was intentionally done by the brand in order to promote their latest collection. If one likes it, they’re most likely to look at the other products by the same brand.
Lastly, they included a small coffee shop in the middle of the make up department. This was clever and appealing, especially towards men, as they now get to enjoy a cup of coffee while their wife shops for new make up.
          The last question on the worksheet asked if we saw any examples of glocalization. This is when a product imported from another country has been customized to appeal to the local audience. I personally did not see any examples of glocalization as you cannot modify a lipstick number or blush shade. As this may be inconvenient for the locals who do not speak English, many of the saleswomen spoke Arabic and therefore were taught to deal with this dilemma.

1 comment:

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