Randall’s Department Stores
Group : 7 Date: 23/6/2012
Members: Ashim Sarkar Vaidya Nachiket Vasant Rizurekh Saha Aravind G Boddepalli Satish Chandra Deepika Nenavath (Ms)
What is the nature of customer behaviour that is pertinent to Randall’s pricing decision?
* The profile of the majority of the customers at Randall’s: Age – 25+; Household income: $25,000+; region – Billingsville & its suburbs
* Customers are attracted by discounts & sales promotions and are moving towards a stage where only higher discounts are considered as best bet.
* Since the brand loyalty of customers is less, the buying behaviour is driven mostly by price. So customers prefer cheapest price among alternatives. However customers do not always look at prices in absolute terms, framing of prices plays an important role in buying behaviour.
* The sales discount and the EDLP (Everyday low price) are not communicated clearly to the customers thereby leading to confusion & ambiguity while purchasing.
* Customers look for variety in Jewellery, Children’s apparel & Shirts category.
* In Children’s apparel, the value proposition to customers is shifting towards fashionable items.
* Customers expect a large variety to choose from
* Discounts are very much expected during special occasions & weekends
Evaluate the advantages and disadvantages of EDLP versus price discounting on the current pattern for Randall for men’s suits, children’s clothing and fine jewellery.
* Children’s Apparel: EDLP successful
1. Consumers are aware of the EDLP and it is well communicated to them. The competitors also follow the same pricing policy.
2. EDLP has also helped in clearing the stock. The inventory turns in this segment is driven mostly by EDLP policy.
* Fine jewellery: EDLP unsuccessful
1. In this segment, the quality cannot be checked by the customer. So...