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Marketing
Activity 1 |
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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.
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Marketing
Activity 2 |
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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.
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Marketing
Activity 3 |
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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.
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Compare
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Anniversary |
Gift coupon |
Happy GO
Card |
Co-branded card holders |
Sale of each seasons |
FED
|
○ |
○(bills
of lading) |
○ |
╳ |
○ |
SOGO |
○ |
○ |
○ |
╳ |
○ |
SKMD |
○ |
○ |
╳ |
○ |
○ |
Future
Operation |
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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.
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