D&M Shop

Group 2

Tuesday March 8th

4-7 PM

Valerie Laub

Amanda Hinkelman

Liang Yu

Rhea Wadhwa

TARGET MARKET

Target Market Demographic:

Our primary target market was professionals working in the Philadelphia area between the ages of

30-40. The price point of the majority of the products ranged from $50-$175. Working professionals can

comfortably shop and afford to make purchases at this price point. Our primary target market has jobs in

the area such as professors, college faculty, and staff. These professionals have an income of $60,000 and

above, and they live in the area in which they work. Many of these professionals are supporting families and

spouses with their income. In their spare time, they enjoy visiting art museums, shopping for design pieces,

and enjoying the city life. They are interested in handmade and locally designed products to cultivate the arts

in the Philadelphia area. These professionals are hard working, savvy, and know what they want when making

a purchase. This primary market has careers within University City and can come to the D&M Shop during

or after their work hours. Our secondary target market was college students and young professionals from the

Drexel and Penn area. This target market is between the ages of 18-28. This secondary target market enjoys

instant gratification and feeling like they have received something for their time. Their income comes from their

parents or an entry-level position of around $30,000. The majority of college students and young professionals

are also interested in handmade products that allow them to have one of a kind items as well as supporting local

designers.

Selection of Target Market:

We chose our primary target market based on the price points of our products. We wanted to have

a customer that would be willing to spend their money on higher priced, handmade items. There are many

professionals working in the area around Drexel’s campus. Our time slot allowed us to market to them during

the daytime, so that they can come visit the shop in the afternoon or after work hours. For our secondary target

market, we chose the college and young professional age range because they are well educated and interested

in the type of products the shop sells. They are willing to support local artists and businesses when making a

purchase. While this market makes smaller price point purchases then our primary target market, they still are a

valuable market to the shop.

GUERILLA MARKETING STRATEGY

Timeline:

Our guerilla marketing strategy was based on the customer receiving a free drink card from Joe Coffee

with a purchase. We received 20 free drink cards from the manager of Joe Coffee to hand out during the shop

opening. For our marketing strategy, we went with the hook: “The D&M Shop Loves You A Latte!” This hook

connected the shop with Joe Coffee.

From this catchphrase, we designed our marketing materials. We created flyers, small tabletop stands,

and large posters in shapes of coffee cups to be placed around campus. The large coffee cup posters were

created out of cardboard and the lettering was laser cut for the audience to clearly and visibly read it from a

distance.

At 9:30 am on the morning of our shop, we placed the marketing materials around Drexel and Penn’s

campus. These flyers and posters were placed at this time to catch the morning rush of people who were coming

onto campus and going to work in the area. We put 100 tabletop stands advertising the shop around campus in

the DAC, URBN Center, Lebow, Bossone, Main Building, Creese, Joe Coffee on Chestnut Street, and on tables

on Penn’s campus. The large coffee shop posters were placed around Drexel’s campus in locations where people

would easily see them. They were placed by the Drexel shuttle, the Dragon on Market Street, two on Lancaster

walk, in front of the URBN Center, on Penn’s campus in front of Piper Boutique, and on Market street. Once all

of the coffee cup posters and table stands were placed in visible and prominent locations, our group handed out

flyers to people walking around.

Before our shop opened, our group made an open Facebook event page and invited 400+ students and

alum in the Drexel area. The group posted multiple times on the event page to reach our secondary target market

and inform customers when the shop would be opening.

During our shop, we had freshman students stand outside of the shop wearing a sign made out of two

large coffee cup posters. They handed out flyers and greeted customers walking into the door. They gained

traffic from the street into the shop by explaining that customers would receive a free drink with purchase.

Flyer Hand Out

Tabletop Stand Front Tabletop Stand Back

Tabletop Stands Tabletop Stand Placement

Poster in front of URBN Center Poster on Penn’s Campus

Poster on Lancaster Poster by shuttle stop

How this marketing strategy appeals to our target market:

This marketing strategy appealed to our target market because both our primary and secondary target

markets enjoy coffee. Having the free coffee posters promoted both Joe Coffee and the D&M Shop. We gained

traffic from loyal Joe Coffee customers in the area as well as students, young professionals, professors, and

college administrators during the shop hours. Joe Coffee is a recognizable and popular brand in the area and

people were attracted to the free aspect of our marketing plan. This was seen as a perk to many people who have

previously shopped at the D&M shop. For gaining traffic from on the street, people were enticed to come see

what products we had to offer so that they could receive the free coffee card.

Poster on LancasterPoster by Dragon

BUDGET

Our team used a lot of resources and supplies that we had already owned in order to keep within the

$20 budget. The majority of the items we used in this project we figured out how to get for free such as the

cardboard and printing. The printing was done at the Evo print center in Valerie’s apartment building for free.

The cardboard was received from Trader Joes and the URBN Center. This enabled us to stay below our budget

and only purchase materials we did not have, such as the blue spray paint.

MERCHANDISING

STORE DESIGN

Description of chosen store design:

The store design we used for our shop was center pad. We placed both wall bays in the center of the

store to create drive aisles on either side of the shop. The center pad allowed for our customers to have a starting

point to shop from and then move around the store layout. This center pad created sections of merchandise for

the customers to look at and the merchandise placed on it allowed customers to easily transition from one side

of the shop to the other.

SketchUp Rendering of Grid Layout:

Aerial View of Layout

Front view of empty store, signage in place

Front View of Layout

Photos of store arranged according to store layout and design:

Left view of empty store Right view of empty store

Drive aisles within store layout

STORE LAYOUT

Description of store layout and why it was chosen:

The store layout we chose to use for our shop was grid. This store layout allowed us to have multiple

aisles in order for the customers to easily access the products. The center pad store design created two main

drive aisles within the grid store layout. This layout allowed the customer to walk in a line and see the

merchandise from fixture to fixture. The grid layout essentially guided our customer through the store. This

layout was beneficial because it allowed our team to merchandise by product category and allow for a clean

simplistic fixture layout, which aided consumers in understanding how to maneuver throughout the store.

SketchUp rendering of the store layout showing how customer travels the shop:

Traffic plan created:

The traffic plan we created was having the customer walk in the shop from fixture to fixture in a line.

The grid layout kept the customer on track, following a path to easily move to each section of merchandise.

FLOOR MAP

When assessing our products before the shop opening, our team realized the magnitude of jewelry

products compared to other product categories in the shop. Due to this, our team decided to dedicate two

separate table fixtures to jewelry. From there, we broke down the percentages of each product category in

the store and decided how much of this category we had in inventory and if we wanted to make it a focused

category on the floor. Our floor map depicts which sections we decided were most important and which sections

had a lower footprint on the floor.

Our approach to get customers to transition from section to section was to place product categories that

related to each other adjacent from each other. For example, we put the giftables and home goods near each

other in order for customers to seamlessly go from one section to the next.

MERCHANDISING STRATEGY

The merchandising strategy that our group used was product grouping. The merchandise was placed

by product category and then by designer of that product. This strategy allowed the customer to visibly see

the variety of products in a clear context by grouping them by product type. The product categories we used

for our shop were jewelry, apparel, footwear, home goods, leather goods, bath and body, giftables, and totes.

Merchandising by product category worked the best because it allowed the customer to move through the

different sections of merchandise that was grouped with a clear sense of where items in each category were.

ADJACENCIES

The customer entering the store would move from jewelry into scarves and apparel. From apparel, they

would move into footwear, hat, and socks on the right hand side of the store. On the left hand side of the shop,

the customer would move from bath and body into giftables then home goods with the wall bay connecting

keychains and small leather goods to giftables and home.

SketchUp Rendering With Merchandising Adjacencies

PHOTOS OF THE STORE

Front Store View, entering URBN Center.

Jewelry Fixture

This fixture was merchandised by grouping various styles of necklaces in a triangle shape on the fixture.

Jewelry Table

This fixture was merchandised by type of jewelry and the designer of the jewelry.

Apparel Four Way Front Side

This side of the fixture was merchandised by

designer and style of women’s apparel and scarves.

Apparel Four Way Back Side

This side of the fixture connects to the front with

more scarves and additional apparel.

Back View of Left Side of Shop

This shows how the customer moves from jewelry into apparel and scarves and then into footwear and socks.

Footwear, Sock, and Hat Table

This fixture was merchandised by type of shoe with a distinction between heeled sandals and flat shoes. The

socks were organized by design. The hat adds a transitional piece between the socks and shoes.

Wall Bay Side 1

This side of the wall bay was merchandised by weight, designer, and style, and connected back to the adjacent

apparel and scarf four way.

Left side of Wall Bay Right side of Wall Bay

Wall Bay Side 2

This side of the wall bay was merchandised with small bags, leather goods, and keychains. The merchandise

was placed by visual weight.

Left side of Wall Bay Right side of Wall Bay

Bath and Body Cart

Bath and Body Cart

This was merchandised by product type and scent.

Giftables Table

This table was merchandised by product type and then designer. The left hand side of the table displayed

stationary items with cards in the back and the right hand side displayed coasters and wood blocks.

Close Up View of Giftables Table

Bags and Totes Fixture

The bags and totes fixture was merchandised by designer. Each arm displayed a different style from select

designers.

Home Goods Table

The home goods table was merchandised by product type. The majority of the home goods came from the same

designer, so we placed the items by category and weight.

View of the back of the store

Close Up View of Home Goods Table

SIGNAGE

SIGNAGE STRATEGY

How signage strategy connects and enhances the marketing strategy:

Our signage was created using the Joe Coffee colors and the font of their website and logo. The signage

connected to our marketing strategy because it visibly connected to our flyers, posters, and tabletop coffee

stands. The colors were recognizable with the Joe coffee brand allowed our marketing and merchandising to

connect. The signage enhanced our marketing strategy by reminding customers that there was an overall theme

and free drink card with purchase while shopping.

Language of signage strategy and how it connects to visual strategy:

The size of the signage was 3.5x5 and the smaller signs were placed on the tables to indicate product

category. The signs on top of the four ways were 7.5x5 and they were placed so that the customer could see

clearly what product was placed together. The font used was Helvetica, which is the font used by Joe Coffee

for their website, menus, and flyers. The colors were taken from the Joe Coffee logo. The font size was large

and readable from a distance, using a size 65 to 70 font. The style of the signage was simplistic and visually

interesting with a layering of boxes in the Joe Coffee colors.

SketchUp rendering of the store with markers for signage placement:

SIGNAGE EXAMPLES

Apparel Signage

Bags and Totes Signage

Apparel Signage In Store

Bags and Totes Signage In Store

Bath and Body Signage Bath and Body Signage In Store

Footwear Signage Footwear Signage In Store

Giftables Signage Giftables Signage In Store

Home Goods Signage Home Goods Signage In Store

Jewelry Signage Jewelry Signage In Store

SALES STRATEGY

Outline of Strategy:

After our guerilla marketing was set in place, our team expected our traffic level to be high. Giving

customers an incentive to shop with a free coffee with purchase, we predicted to reach our sales goal. Our

marketing drove traffic through the door in multiple ways. First, customers became aware of the shop opening

and our marketing hook by the use of our large coffee signage and smaller coffee signs that were placed around

campus. Additionally, handing out flyers before and during shop hours gained traction into the shop. For

example, we had three guest customers from off the street who were directed into the shop by our freshman

volunteer handing out flyers outside. When people entered the store space, we had one team member on the

floor to greet them, welcome them to the shop, and assist them around the store. Team members on the floor

were diligent in asking if customers needed assistance and informing them about the products on the floor.

Helping customers pick out products, such as jewelry and bath and body products, were big areas of customer

service. Once the customer was satisfied with their product selection, employees would walk them over to the

cash wrap to ring up their items.

All four of our group members were on the sales floor during shop hours. Amanda worked the cash wrap

and aided in customer service when other team members on the floor were busy assisting customers. Valerie

was in charge of greeting customers once they entered the store and helped direct them to specific product

categories. Rhea and Liang were floating sales associates. Our group selected Amanda to be on cash wrap

because she had previously worked the register during another shop opening and felt confident in her abilities

to run this section of the store. Valerie was chosen as our primary sales associate because she is personable and

knowledgeable about the products and designers in the store. Rhea and Liang were chosen as floating sales

associates to help Valerie and Amanda when they needed assistance in aspects of their roles or to help with

customer service when there were multiple customers who needed assistance.

Before our shop opening, our team analyzed our sales goal and calculated that on average we needed to

make $200 an hour. If we wanted to make our stretch goal, we needed to make an average of $220 an hour. We

predicted that the beginning two hours of our shop opening would be much more profitable than the last hour of

the shop due to the time of day. Therefore, we aimed to make around $250 the first hour, $260 the second hour,

and $130 the last hour. Overall, after our shop opening we found that our predictions were accurate and the first

two hours of the shop were the most profitable time slots. Although our sales goals for each hour may have not

been exactly what we predicted, we were able to exceed our stretch goal.

EFFECTING SALES

Weather Conditions:

The weather was the first very warm day in March. It was sunny, around high 60s to 70 degrees outside. Many

people were outside walking on the street, sitting outside, and enjoying the weather with friends. The warm

weather brought in a lot of traffic to the store because many people were out and about and they were willing to

stop inside the shop. The warm weather potentially enhanced our overall sales by having people take the flyers

from the freshman marketing outside and enter the shop.

Traffic:

Demographic Counts:

2: Alumni of Goodwin College

1: Chemical Engineer

4: College of Health & Sciences Students

3: Guests

3: Lebow Students

1: Westphal Faculty

7: Westphal Students

Total number of shoppers: 21

Before the store opening our team predicted that Westphal Faculty and students would be the main

contributors of sales to the shop. After our shop closing our demographic tallies that, as predicted, Westphal

students made the majority of purchases. Surprisingly, Westphal faculty was at the bottom of our list with only

one purchase. Another surprising element to our demographic is the amount of Health & Science students who

made purchases. Additionally, 5 customers were added to the mailing list.

Sales Summary

Description of Sales:

Before opening the shop, our team predicted our average UPTS would be 2 items and our average dollar per

transaction to be $60 per transaction. On average our predictions were correct with the exception of a few

outlier purchases. There were three people whom skewed our average to a higher UPT and average dollar

per transaction. These few individuals purchased over five produts each and spent between $100-250 on their

transaction. Due to these high profit purchases, we were able to exceed our reach goal by approximately 1.09%.

SUMMARY

We were successfully able to create a center pad store design with a grid layout. The customers that

came into the shop followed our drive aisles and moved with ease from fixture to fixture. The adjacencies that

the shop created allowed our customer to move into different categories of product that related to one another.

CRITIQUE

As a whole, our group learned a lot about the visual merchandising process from this hands on

experience. Our greatest success of the entire process was our marketing strategy. This strategy created a lot of

traffic in the door from customers off the street and customers who were familiar with or fans of Joe Coffee.

Customers really appreciated our guerilla marketing campaign around campus and loved that they were able to

get a free coffee with their purchase. Many customers felt the incentive to spend money on a product to receive

the free drink card.

The signage we used in the store united our marketing with our layout by using similar elements such

as the colors and design aesthetic of Joe Coffee. Another success for our shop was our customer service and

sales. Each customer was greeted upon entering the shop by one of our team members and asked if they needed

any assistance. Our team was knowledgeable about the product and was able to help customers in any way they

needed. Most of our group members had friends or relatives come into the shop and we were able to steer them

to products that suited their needs and produced a purchase around 90% of the time. Additionally, our team

made and exceeded both our sales goal and reach goal with an overall profit of $698.50.

While we had many successes during this project, we also had a few areas for improvement. During the shop

opening we rushed to bring products to the floor and half of our team was not prepared on what product went

where and our overall merchandising strategy. This caused our merchandising aspect of the project to not be as

strong as our marketing side. Due to our rocky start with setting up the shop, it caused our clean up and closing

to be very difficult. Although our group ultimately struggled with communication and effectively dividing

up the work, we were all able to benefit from this class in different ways and develop a greater skill set and

knowledge of visual merchandising.

If we could do the shop again, our group would go over the merchandise strategy as a whole multiple

times before the shop opening in order to make sure every group member is on the same page. Additionally, we

would assign each group member specific product categories to merchandise in order to make everyone’s time

more efficient and effective. We also would implement more merchandising strategies such as making sure the

fixtures did not have too much product on them or too little. Balancing out the weight among each fixture and

section of the store is an additional aspect that would be improved. To improve how the overall merchandising

appears, we would implement triangular and circular motion when merchandising product on each fixture. Also,

the use of more props on our tables in order to create different heights to draw the customer’s eye around the

fixture would be utilized if we had the opportunity to do the store again.

Visual merchandising is an intensive and hands on subject that requires one to think quickly on their

feet and adjust to any sudden change. As a whole, our group learned that merchandising takes time and

consideration into making each fixture work, and inevitably for the entire store layout to work. We learned the

importance of movement, that different shoppers prefer various types of store layouts and designs, and that

one has to consider how men prefer to shop versus how women prefer to shop. Additionally, we understand

the importance of being detail oriented in every aspect of the job and that trial- and- error is always an option.

This class and this project taught us the importance of how elements such as flooring, fixtures, props, lighting,

signage, and sound can all affect the visual merchandising approach and how a customer experiences the store

as a whole. We understand the importance of balancing fixtures and the different ways to merchandise products

such as product category, like we chose to utilize for our shop. We gained knowledge of understanding how the

visual team plays a part in the corporate world and a short glimpse of what is like to own a small store.

Understanding the importance of customer service and knowing the products on the floor was something

that this group as a whole became more aware of. Sales improve with customer service, which is evident in our

team exceeding our reach goal. We discovered that customers respond well to incentives with purchases because

it makes their experience extraordinary and fun. Customer traffic has many elements that contribute to the turn

out in the store ranging from the weather outside and time of day to the location of the store. Customers are

drawn in by effective marketing and make a purchase due to friendly and knowledgeable customer service and

product offering. An aspect that this project reinforced that can be applied to any situation in life is that as much

as you plan and are prepared for something, it may not go the way you expect it to. The D&M Shop assignment

displayed that it is important to understand how to adjust to different situations quickly and effectively.

Our customer demographic that came into the store surprised our group. Especially the fact that there

was a very low number of Westphal faculty who came into the store and only one faculty member made a

purchase. We were hoping to make our sales goal and were happily surprised when we exceeded our reach goal.

On the other hand, we were not surprised on the amount of time and effort it took to complete this project from

marketing the shop to creating this presentation.

We believe that it would have been beneficial if there were an exercise in between the first Valentine’s

Day Shop and the final Spring shop, other than VR. For instance, Kristen could have students do an exercise

where she gives each student a few product categories with props and they have to figure out how to

merchandise them on their own. Then Kristen could critique each person’s strategy with the class to explain the

strengths and weaknesses and how to improve when merchandising on your own. This exercise would allow

students to get another hands on experience and give them the option to fail without it having such high stakes,

like the final shop does. Another aspect that would be helpful is if during the Valentine’s Day Shop set up,

Kristen took the class around to each fixture and explained how it was merchandised and why. While the class

gained exposure of how to merchandise multiple fixtures, some of the product categories were not shown to

each student in the class due to the shop opening and customers coming in.