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Marketing Activity 1
 

Event:Anniversary Celebrations
l Department Stores Involved:Far East Department Store、Shin Kong Mitsukoshi Department Store、Pacific SOGO Department Store


 Analyses:
Anniversary celebrations are the activities for sale promotions that every department store must hold in the fourth season. It is also the best time of the year for the department stores to gain profit. Different stores will have diverse activities for sale promotions.
As far as Pacific SOGO is concerned, for its 2006 anniversary, it put much stress on cost management. Besides, for sale promotions, members of Pacific Sogo are allowed to purchase“Only SOGO”products. It also has a special sale on female products and household appliances.
As for Far East Department Store, during the period of anniversary celebrations, female products, such as cosmetics and clothing, are particularly on sale in order to keep the original customers and attract new ones. Concerning its members, Far East Department Store also has some member- only promotions. Overall, the marketing strategy of Far East Department Store was quite conservative for its 2006 anniversary celebrations.
As to Shin Kong Mitsukoshi Department Store, 2006 anniversary is the first time that all branches had promotional activities at the same time to surpass other department stores during this period. In addition to providing satisfying discounts, Shin Kong Mitsukoshi Department Store attracts customers by giving them free gift certificates if their purchases amount to a certain sum.


Ascendancy:
(1)Customers are greatly benefited by such activities, and are thereby attracted to shop there.
(2)Each department store has its excusive products and promotions to attract a certain part of customers and to create a new market for business.
(3)The member only activities help maintain the original customers of each department store, and keep a stable business.


 Shortcomings:
(1)As anniversary celebrations are held almost at the same period, every department store has to fight with each other for attracting more customers.
(2)Compared to other department stores, Pacific SOGO Department Store purposefully cuts down its cost for promotional activities. Besides, its new promotional strategy will be critically tested by customers. Compared to its past strategies, there are risks involved this time.
(3)All department stores consider discounts on cosmetics the motivation for business, thus those who don’t provide satisfying discounts will lose customers to some extent.


Perspectives from High School Students:
Looking from high school students, anniversary promotions attract more female students than male students because the discounts on female clothing are more attractive than that on sports products. If department stores can hold different kinds of promotions according to different ages, then they can catch attention from students of all ages.
Using anniversary celebrations as promotional strategy seem to become a fixed pattern. If a department store cannot develop its distinguishing features of anniversary celebrations, it will be hard to broaden its market.

 

Marketing Activity 2
 

Event:Sale of Gift Certificates
l Department Stores Involved:Far East Department Store、Shin Kong Mitsukoshi Department Store、Pacific SOGO Department Store


Analyses:
Sale of gift certificates is one of the marketing strategies that department stores generally adopt. By means of gift certificates, they hope to motivate customers to shop, and expect to have a stable market for business.
As far as Far East Department Store is concerned, there are two sorts of sale of certificates: gift certificates and bills of lading. On some occasions, Far East Department Store will give customers gift certificates for free if their purchases amount to a certain sum. Not only are customers benefited from such an activity, but the department store also gains much from it. As for the bills of lading, it is the cooperation between department stores and other companies. The employees possessing the bills of lading become the stable customers of Far East Department Store. In Sanduo Shopping District, Far East Department Store is the only one that issues the bills of lading, which becomes the characteristics of Far East Department Store.
As far as Shin Kong Mitsukoshi Department Store and Pacific SOGO Department Store are concerned, the pattern of sale of gift certificates makes no difference from that in Far East Department Store. Some customers gain free gift certificates in promotional activities, and some buy gift certificates for presents. Overall, gift certificates can attract more customers and help increase the sales.
Even cyber shops use gift certificates for promotions. Some cyber shops hold promotions, such as point collection and free gift certificates, to increase its business. By doing so, these cyber shops also help advertise the department store that issues the gift certificates.

Ascendancy:
(1)Customers are able to gain the benefits which are only bestowed on special occasions.
(2)It is a good idea to advertise the department store to attract customers.


Shortcomings:
(1) Because of restrictions on gift certificates, not all customers will be attracted.
(2) As the development of the company will affect the circulation of gift certificates, some risks are involved. Whether the company develops in stability determines the value of the gift certificates.
l Perspectives from High School Students:
A special discount is bestowed only when the gift certificates you bought achieve to a large amount. For high school students, the use of gift certificates is impractical. Students’ transactions are rarely through large denominations, thus, the purchase and use of gift certificates is unprofitable. Meanwhile, as for students, the promotional method of gift certificates cannot cater for all needs.
Yet, the promotion of gift certificates is good for advertising. Those who do not know the department store will be enthralled. Customers thus shop more in this department store, which allows the department store to gain a lot of profit.

 

Marketing Activity 3
 

Event:Happy Go Points Card
l Department Stores Involved:Far East Department Store、Pacific SOGO Department Store


 Analyses:
The idea of Points Card is created by the Far East Corporation. As long as your purchases are from the Far East Corporation, you can collect points and exchange those points for free gifts. In Sanduo Shopping District, Far East Department Store and Pacific SOGO Department Stores are subordinate to Far East Corporation. Thus, members of the Happy Go Points Card can enjoy benefits from both department stores.
During the period of anniversary celebrations or other promotional events, there are benefits granted only to members possessing the Happy Go Points Card. The application for membership is very easy; only by offering some personal information can one become a member. Without limitations in membership, consumers thus gain a lot of profit


Ascendancy:
(1)Transactions in Far East Department Store and Pacific Sogo Department Store are thus stimulated.
(2)Consumers are able to enjoy double benefits: point collection and discount.
(3)By advertising its exclusive promotion, promotional activities will not be overlapped with those of other department stores.
(4)There is no limitation for one to apply for membership.

 
Shortcomings:
(1) Because of the exceeding generality, how to define the qualification for a member will be confronted with doubts.
l Perspectives from High School Students:
As far as high school students are concerned, such unlimited application for membership, on the one hand, provides customers with convenience and advantages. On the other hand, the boundary between members and nonmembers becomes so ambiguous that there will be no more difference between them.
But in general, students still gain much from such service. By applying for membership, students are able to profit from discounts as well as point collection.

 

Compare

 

 

Anniversary

Gift coupon

Happy GO

Card

Co-branded card holders

Sale of each seasons

FED

 

bills of lading

SOGO

SKMD

Future Operation
 

In the past several years, business of department stores pushes forward the development of Sanduo Shopping District, which changes along with the rise and fall of the business. The development of the business is quite a legend. In the past, there was none. Now there are three of them. We can tell that considerable scale and plans are required if a department store intends to stand still in this shopping district.


The development of department stores also expend along with the overall internationalization of Kaohsiung. Besides, Kaohsiung is going to hold The World Games 2009. Transformation of Kaohsiung forces the business to aim at internationalization as well.


In addition to that, department stores in Sanduo Shopping District place importance on the integration. On one hand, every one of them has its individual promotion feature; on the other, they have mutual discussion on business development. 
Each department stores’ operation policies will become one of the important indexes of Sanduo Shopping District’ future development, which has never been paid attention to in the past. In all aspects, the business of Sanduo Shopping District nowadays will make the most efforts and create a perfect Commercial Circle of Department Stores.