1. Background and mission of The Salvation Army:
The Singapore’s Salvation Army. a Christian non-profit organisation. was established during 1935. It was foremost founded by William Booth ; a London curate in 1865 and subsequently distribute itself around the universe.
Redemption Army chief motivation is to assist the world without racism. Its mission is “to preach the Gospel of Jesus Christ and to run into human demands in His name without discrimination” with a motto of “Heart to god. manus to men” .
Red Shield Industries Family Thrift Shop:
They launched the Red shield Industries ( RSI ) Family Thrift Store. a societal endeavor in 1996. making out to many different people in the society that are fighting to do ends meet. RSI helps to re-sell the contributions point that are donated by the populace through the 5 Salvation Army household thrift shop. The sum that is generated will be given out to assist Salvation Army societal service and community programmed. For every dollar spent. 90 cents will travel the destitute people. Other than this. RSI is besides actively involved in fund-raising. assisting catastrophe alleviations and having contributions or sponsorship from supportive organisation. Harmonizing to Salvation Army 2011 one-year study. RSI received 10 metric tons of donated points day-to-day and that The Salvation Army had spent over $ 16. 2 million to run its societal service and community programmed. ( The Salvation Army. 2011 )
2. SWOT Analysis
Strengths * Affordable monetary value ( low monetary value ) . * Selling assortment merchandises. * Have a biggest shop infinite among the other thrift shop. * Money raised given to charity. | Weakness * Disorganization of the shop show. * Products weren’t that attractive. * Inconvenient shop that barely to be reached by people. * Lack of direction. selling. and retailing. * There’s no attractive ocular selling. | Opportunities * New employee being trained good before go a lasting employee. * Have an online shopping system. * Money and assistance from other organisation aid. | Threats * High outlook of contributions from donator. * Put a high hope on the merchandises quality from the donator. * Amount of the contributions will be depends on every season. * Mostly of the merchandises weren’t able to utilize it in modern epoch like ; now. * Other local Charity Thrift shop competition. * Lack of loyal clients. |
Observation method is a really utile method for in-depth research. this Primary Research may assist to clear up the information that gathered from Secondary Research.
Purpose of Observation:
The chief intent of this research:
* To understand and find the current selling mix of Salvation Army.
* Identified the jobs.
* Give a recommendation what and how should Salvation Army do to increase the traffic sell in the Singapore’s market.
The group’s research workers went to the retail shop to detect by taking notes and image as the proofment information.
* Date and Time:
The observation was conducted on the 24th February 2012. 11am.
Bukit Merah Family Thrift Store to carry on the observation.
3. 1 Findingss:
Redemption Army receives any sort of merchandises as the contribution from people. The merchandises donated weren’t in a good. satisfactory and resell able status but some may be in a good status to sell and trade name new material with the original battalion. There’re many assortment of merchandises. such as ;
* Apparel ; some are trade name new and been worn. They carry few classs of dress. such as ;
* Bottoms and Tops
* Home Furnishing such as ;
* Bowl. home bases. spoon. cup. forks. chair
* Dolls and Toys for childs
* Salvation Army gets a instruments contribution. the instrument merchandises were in a good status and can be usage but some may interrupt or some cardinal tone weren’t working any longer. Instrumental such as ;
* Variety meats
2. Topographic point:
Salvation Army shops weren’t located in a strategic topographic point and far from the metropolis. Upper Bukit Timah. The store’s exterior itself wasn’t designed good to stand for and pull people to come in.
Redemption Army has an in-store publicity. Promotions are one signifier of marketing intent to pull people to purchase. There’re assortment publicities:
* Buy 1 Get 1 FREE for Toys and CD/DVD.
* Renovation Sale 50 % OFF for electronic use.
* Loyal Membership card called ‘Friend of Salvation Army’ . this rank card can be use when you’re buying $ 40 and above to acquire 40 % OFF from the retail monetary value.
4. Monetary value:
Redemption Army doesn’t have a specific pricing rate for the merchandises selling. Some products’ monetary values weren’t labeled or stated in the merchandises. * For dress largely cost for $ 3- $ 10 ( insouciant wear ) but for the gown it cost $ 50 and supra. * For the place trappings:
* Decoration: $ 3 – $ 5
* Bowl. home bases. spoon. cup. forks. chair: $ 3 – $ 5
* Books $ 5 – $ 8
* Dolls and Toys for childs: for the dolls cost $ 5 for each and $ 8 – $ 10 for the plaything.
* For Instrumental ;
* Piano. the new trade name and with a good status they put a monetary value $ 1200 and for the old clip piano they sell for $ 888.
* Normal guitar cost $ 100++ and the electric guitar cost $ 200++ . The monetary values weren’t stated clear in the merchandises.
* The Organ instrument cost $ 300 – $ 400.
4. 2 Problem identified
1. Poor Quality Products.
Salvation Army’s merchandises were donated from people which some are still trade name new and been used. The quality of the merchandise was hapless. This fact may impact the merchandising public presentation.
2. No Product Filtering.
Redemption Army accepts whatever been donated from society or public. They ne’er truly went through and choose the contributions before to set it up on shop for gross revenues.
3. Lack of Product Organizing.
Redemption Army locates the merchandise indiscriminately. Redemption Army ne’er organizes the merchandises consequently to the specific class. It makes the clients barely to look for what they want.
1. Price ticket.
Redemption Army carries excessively much merchandises in the shop but some of the merchandises don’t have the monetary value ticket and some merchandises have 2 monetary value ticket with a different monetary values. It may drive confusion and troubles to the clients.
1. In-Store Promotion.
Redemption Army does give an in-store publicity. but some of the publicity mark and info weren’t stated clearly. It makes the client inquiring what and how does the publicity work on.
1. Lack of Visual Merchandising.
Redemption Army’s shop was unorganized. They don’t even have a proper ocular selling that may pull more people to do a purchase.
2. Lack of Store design.
From an Interior and Exterior perceptual experience. Salvation Army’s shop wasn’t attractive plenty to allow people cognize their shop and to shop within. The most of import thing for a shop is the ocular representative that will convey out their trade name image.
3. 3 Recommendation.
This method research has come to the terminal. We have find in-depth of the selling mix and identified the job of Salvation Army. We conclude this research by giving some recommendation to Salvation Army how to better the traffic selling merchandise.
* Product Selection.
Since Salvation Army receives anything from contribution whether it’s still can be use and resell or it’s in the hapless quality status. To able sell a good quality merchandise. Salvation Army needs to look into the merchandise status. so choice and make up one’s mind which need to be sell in the shop and which need to be recycle. By selling a good quality merchandise. it can impact the thrust gross revenues public presentation.
* Product Organizing.
The merchandises were placed here and at that place. in a mussy status or unorganised. To do it easier for clients search on what they looking. Salvation Army should form the merchandises in the ain class and sub-category. Example ; Women’s Top form it in 1 rack consequently to the sub-categories ( Tank top. jersey. shirt ) . sizes and colourss. It’ll be easier for the clients to look through the merchandises without confounding themselves.
* Price Tag.
Merchandise pricing wasn’t stated clearly on some merchandise. Salvation Army should set a monetary value ticket right on every individual merchandise. It’ll be easier for the clients to cognize the monetary values without inquiring for the staff’s aid.
* In-store publicity.
It’s a good thing that Salvation Army give a publicity. But there’s a deficiency on the publicity. alternatively of seting a mark ‘BUY 1 GET 1 FREE’ nearby the merchandise. it should be done in a better manner like ; adding more info to the mark on how does the publicity works.
* In term of shop design. * Salvation Army should truly re-design their store’s exterior by painting the wall to looks new set some props and logo to stand for the Salvation Army Family Thrift Store. Besides that. Redemption Army demand to make a ocular selling to drive the attending. * Salvation Army demand to restitute the shop layout and relocate everything in order to do it looks nicer. * The floor. wall. and illuming should be changed in a white colour to do the shop brighter. These 3 constructions conveying an impact to the merchandise gross revenues. A brighter lighting. the merchandise will looks much nicer. When the merchandise looks nice. it became a desire to clients to buy it.
Benchmarking – IKEA
IKEA is a good known place supplying retail merchant. IKEA recognized globally by the consumer. IKEA was successful a trade name in driving a sell through merchandises. IKEA’s retail can be a good illustration of their strength and sell volume. Low monetary values are one of the IKEA’s construct to pull the clients want to purchase their house furniture from IKEA. Their low monetary value scheme covered up with the broad scope and design merchandises. IKEA’s selling point has hit and reached 21. 2 Billion Euros in a twelvemonth which truly affected their merchandising point. IKEA’s strength:
* A strong and well-known planetary trappings trade name which pull different age of consumers.
* IKEA giving a last monetary value with a promise that the merchandise will be in the high quality. * IKEA offering a broad scope of merchandises and designs for clients to take. * IKEA reached the balance point between the quality. design. assortment of merchandises and monetary values. * IKEA besides known as the planetary trade name that re-using the beginning stuff. Example ; the OGLA chairs. this chair is made utilizing otiose wood. by re-using the wasted wood it may assist to cut down the sum of solid wood needed for bring forthing a chair. Volume committednesss ; IKEA making a long term partnership with their local providers in order to accomplish a better trade ; monetary values and quality. IKEA is perpetrating to purchase larger volumes merchandises in order to be able negotiate for a lower monetary values from the providers.
Delivery committednesss ; to salvage the conveyance cost. IKEA utilizing beginning stuff that was near adequate to their provider. Delivering the merchandises straight from the local provider to local IKEA shop. it may assist to cut down the handling costs. route stat mis. and maintain the merchandises monetary value same as before or lower the monetary value if that possible.
* Strong Brand Image or Personality and well-know.
IKEA was really good known worldwide for the place trappings. Whenever people bought new furniture. they’ll spontaneously retrieve IKEA and purchase it at that place. * Strategic Store Location. To be able drive gross revenues. the shop location itself conveying an impact to the trade name. People nowadays prefer a convenient and strategic topographic point which located in the town or metropolis.
* Recycle or Re-using Merchandise.
To salvage the cost of production. the stuff that left over could be use to do another type of merchandises and the merchandises that ne’er been sold should recycle and transform to another merchandises.
* Create a strong Brand Image.
Redemption Army should hold their ain trade name image that can easy recognized by society. Salvation Army could utilize their most marketable merchandise to stand for their image.
* Improvement of the Location.
Redemption Army’s shop was far off from the metropolis. that makes people who live in the metropolis or other location lazy to come all the manner to the shop for store. So. Redemption Army should open a subdivision shop at metropolis. If there’s a shop at the metropolis. it’ll be able acquire a higher merchandising point because mundane people ever pass by the metropolis country.
* Recycle the merchandise.
Redemption Army ne’er focus on the choice of the merchandise after people donating. Whether it still can be sold or non. they’ll put it up at the shop. Salvation Army should acquire rid of this job by choosing and filtrating the merchandises. The merchandises which aren’t in a good status should be recycle to make a better merchandise.
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