abhishreshthaa
Abhijeet S
four major variables that retailers can play with when trying to create a USP include:
PRODUCT
This refers to the category mix, and within each category – the width and depth of merchandise on offer, and its quality related selection. It can also refer to the choice of merchandise – if it is on the leading edge or trailing edge of innovation or fashion.
SERVICE
This refers not only to the commonly assumed parameter of “how many sales people are there to serve” or “if tea or a cola is served to customers” but to operational parameters such as “availability” of the promised merchandise at all times – in expected sizes, shapes, colors, assortment et al. Service can also refer to policies such as “returns” or “exchanges”, “warranties and guarantees”, availability of qualified personnel to assist customer queries or request for information.
EXPERIENCE
This is a crucial intangible and can be a function of several factors e.g. overall store ambience; ease of shopping in terms of layout of merchandise, labeling, check-out convenience and speed, access to the store itself including parking, customer relationship effort from the store management etc.
PRICE
Finally, this is the fourth major variable for creating the USP. Low price itself can be the most important parameter in some instances, but more importantly, it can also imply the “appropriate price” as perceived by the consumer after subjectively assessing the impact of the other three variables mentioned above. As far as India is concerned, there have been relatively few start-ups with a clearly defined USP.
Most have, so far, tried to offer all of product, service, experience and price without realizing that compromises have to be made on one or more if the business itself has to be financially and operationally viable. From a consumer’s perspective, she would obviously like the maximum choice with exceptional service and a wonderful experience – all at the lowest price!
PRODUCT
This refers to the category mix, and within each category – the width and depth of merchandise on offer, and its quality related selection. It can also refer to the choice of merchandise – if it is on the leading edge or trailing edge of innovation or fashion.
SERVICE
This refers not only to the commonly assumed parameter of “how many sales people are there to serve” or “if tea or a cola is served to customers” but to operational parameters such as “availability” of the promised merchandise at all times – in expected sizes, shapes, colors, assortment et al. Service can also refer to policies such as “returns” or “exchanges”, “warranties and guarantees”, availability of qualified personnel to assist customer queries or request for information.
EXPERIENCE
This is a crucial intangible and can be a function of several factors e.g. overall store ambience; ease of shopping in terms of layout of merchandise, labeling, check-out convenience and speed, access to the store itself including parking, customer relationship effort from the store management etc.
PRICE
Finally, this is the fourth major variable for creating the USP. Low price itself can be the most important parameter in some instances, but more importantly, it can also imply the “appropriate price” as perceived by the consumer after subjectively assessing the impact of the other three variables mentioned above. As far as India is concerned, there have been relatively few start-ups with a clearly defined USP.
Most have, so far, tried to offer all of product, service, experience and price without realizing that compromises have to be made on one or more if the business itself has to be financially and operationally viable. From a consumer’s perspective, she would obviously like the maximum choice with exceptional service and a wonderful experience – all at the lowest price!