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Mobile Computing in Retail Stores - Term Paper Example

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This paper will explore how consumers owning modern mobile phones with internet connectivity will affect Agfa’s supermarket and how the traditional brick and mortar retail environments like that of Agfa’s can use mobile marketing to promote and sell their products…
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Mobile Computing in Retail Stores
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 «Mobile Computing in Retail Stores» Introduction: Mobile phones are home to more than 4 billion people round the globe. This means, more than half the world possesses them. The trend has become such that people have now given up on ordinary mobile phones and more rapidly own smart phones. These phones are just as powerful as computers. Consumers are making use of these phones for a wide variety of functions. These include creating and storing shopping lists, scanning product bar codes to compare characteristics of different products, and to analyze coupons and promotions. This is only the tip of the iceberg as there is a huge array of the kind of services that can be availed. Physical retailers and those involved in product manufacturing have now the opportunity to capitalize on these technologies and avail the consumer experience to the utmost. (Underhill, 1999, np) Today terms like mobile commerce and mobile marketing have generated a lot of hype all over. If business could figure out a way to get to their customers at anytime in the day and anywhere they wish to be, the dynamics of the way businesses are conducted would fundamentally change. However mobile technology has not been completely implemented today. It represents a tiny channel for most companies. A research conducted by Juniper claimed that most consumer products companies spend less than 1 % of their overall advertising budget on mobile marketing. Things are expected to change and they will change dramatically, given the fact that more than 4 billion people use mobile phone today. The success of Apple’s application stores, explains the way technology is making way into people’s lives and that too this rapidly. The paper will throw light on Agha super market and the way they can use mobile computing to enhance their industry’s value chain. Agha’s super market is located in a posh locality in Defense. It has high end urbane customers, who frequent the shop for grocery shopping, makeup shopping and shopping for various other types of goods. It is a retail store and can cash in on mobile computing to create more value for its customers. It will also explore how consumers owning modern mobile phones with internet connectivity will affect Agfa’s super market and how the traditional brick and mortar retail environments like that of Agfa’s can use mobile marketing to promote and sell their products. Some of the things that the paper will answer would be what consumer needs can be met and chalked out using mobile phones in retail environments, how will mobile phones give consumers a richer, enjoyable more meaningful shopping experience to customers, and what changes should be made in the retail stores to help support this. (Lavine, nd, np) Most experts claim that retailers tend to change their point-of-sale terminal installations every 5-7 years. This means that mobile computing must be compatible with the current infrastructure for it to be accepted by retailers and any current investments made by retailers should have a long, far-reaching impact. A research was conducted by RIS in 2009 and it demonstrated that as little as only 30% of retailers had mobile e-commerce strategy in place. Brands and retailers need to have the right amount of business and technical information to strategize their decisions around mobile and also for the mobile industry to be able to comprehend where the retail sector intends to take mobile. (Gershman, 2000, np) Advantages of mobile computing for consumers: Most retail stores like Agha are home to very complex environments. These environments have evolved and developed gradually in the past five decades. The complexity is there at two levels. First the shift towards to the self service format from the service format. This was a huge change in the retail world as for consumers self service denoted choice, value and convenience. However, retailers have also tried to find a way about their new environment. They have learned to devise environments that would best look after their consumers needs and bring sales home. Moreover the technical infrastructure that supports retail stores has shown a lot of improvement too. Today, complex IT systems have been created as retailers cash in on automated processes to drive efficiency and to collect data to be able to better handle information decisions. The biggest development in this regard as the wide spread use of the point-of sale terminal alongside its integrated bar code reader and its ability to take care of a myriad of payment methods. It is most likely to appease customers. As a result of these developments and advancements, consumers are getting what they want, rather easily, efficiently and quickly. Mobile computing is very lucrative and advantageous for both consumers and businesses like. Agha’s super market can make a lot of value for their customers by capitalizing on mobile computing. They can use this technology to make the life of their customers easier. They can do self-scanning and mobile payment easily. Moreover they can also use this technology to get what they want quickly. There are a myriad of other advantages associated with mobile computing. The customers can make their own shopping lists, manage it and decide accordingly what to buy using mobile computing. (Hewagamage, 2000, np) Consumer life becomes more meaningful using mobile computing. It will give them complete command over the kind of information and tools that they should have to make the best choice for themselves. There are various other services offered with the mobile that are offered to the customer in sync with mobile computing. Mobile services such as extended packaging can be offered by Aghas. They will help consumers align products with other values such as health and well being, and various other environmental and ethical choices. (MIT, 1996, np) Mobile computing will prove to be just as good for the business interests of Agha’s super market too. They would be using mobile technology to cater to consumer demands for information and services. In this way they would be able to increase sales. There is a direct relation between relevant information provided at the point of sale and eventually purchase definition. In other words, the more information, the consumer has in hand, the better the sales would be. Mobile computing will also help Aghas by improving upon its customer satisfaction and loyalty towards the retail store. Consumes go after those business that give them the most value and are able to best meet their needs for information and other services. Mobile computing gives room for more personalization and looking after consumer needs in an even better way. It also helps to add more value to the physical products and experience via digital services. A consumer ends up spending more time online and these acts as an inevitable link to the physical products while storing it to the digital world. How to integrate mobile technology in retail stores: Most prominent retailers in their business have been trying to make the most out of mobile computing where inventory functions are concerned. However, these retailers are now looking for mobility as the main element in their growth prospects for future. In a report by Aberdeen Group, December 2005, it was said that today every retailer is trying to work on his store environment to stand out in the competition. Clear benefits are evident via customers who go through experiential shopping, are comfortable and informative about what they want and their shopping goals. Store experience and two-way communication between the customer and staff member are central to the entire idea of better execution. This is where mobile computing comes into picture. It helps establish a two way communication instantly between a consumer and the staff member, between consumer to any store manager, or staff member as well as the entirety of the retail organization and all the applications that support it. This relationship via mobile and access completely revolutionalized the dynamics of the way in which retail stores operate. The information circulation will go a full circle instead of a one way push from corporate and storage managers through staff and then to the customers. Moreover it will be real-time which will make communication even more efficient. Similarly at the managerial level too, mobile computing will be of immense help to retailers. They will have complete real time access to store stats, tasks, feedbacks etc. In a recently conducted research it was pointed out that the deployment and utilization of wireless inside retails is on the rise. There is a greater probability that more than 65% of this industry will head in that direction towards the end of next two years. And the usage won’t be limited to just a few devices but there would be emerging applications in various areas such as inventory, receiving, replenishment and ordering. A whole new world of mobile based applications is expected to take over and completely shift the paradigm. This is precisely what will happen if Agha’s super market adopts mobile computing. There are various touch points that most retail stores can capitalize on and make use of mobile technology. These are the points at which consumers tend to interact with the store. In near future, each of these touch points can be used to have a mobile element. Agha’s super market can come up with various mobile applications that will help its shoppers get a richer more convenient interaction experience. These could be: 1. Extended Packaging: Through this application consumers will have access to as much information as they aspire for about the products that they wish to purchase. 2. Coupons: Mobile phones can be used to announce, manage and redeem various coupons and discounts offered on the shop. 3. Loyalty: Mobile phones will get rid of physical loyalty cards. They would now be replaced through personalized mobile services. 4. Advertising and Campaigns: Any promotions, new offers, ads etc can be channeled to the consumer directly through the mobile. 5. Payments: Mobile phones will be able to ensure that the payment can be done anywhere hassle free at any time including any retail checkouts out there. 6. Self-scanning and self-checkout: Consumers in retail stores will be allowed to use mobile phones to scan their products and be able to check out without any help. 7. Store Location: Consumers can use mobile phones to locate where their store is stationed. 8. In-store search: Consumers can use mobile phones to figure out what is located where and at what shelf. 9. Shopping lists: Consumers can build their own shopping lists on the mobile phones and be able to access it while doing shopping. 10. Mobile ecommerce: Consumer can use this technology to browse, look around, order and pay for the products they wish to purchase anytime anywhere. 11. Manager Dashboards: Then there are some applications that can be implemented at the managerial level. One of these is the manager dashboard application. This application will make life for the manager a lot easier. He can easily walk in and out of the store while performing all the needful of the store, read mails, allot tasks, reply to mails, check prices and void transactions from any point in the store. Retail Pocket Office Pro is an example of such an application. It is a back-office application designed to assist managers in his business decision making. Most of the aforementioned applications can be joined with various other channels to bring forth a rich cross channel experience. Consumer way through a mobile-enable store: Mobile computing can enormously transform the entire consumer experience in retail stores by completely digitizing it. Let’s walk through the various phases a consumer is put through in the retail store world on mobile. Before stepping into the stores, at home, consumers can use mobile computing to plan their shopping trip out. They will have the entire shopping list in front of them and they can use mobile phones to add items to their shopping lists by merely scanning bar codes on products. While moving too, they can easily add items on their shopping lists, whenever they think of them. They can forward and share their lists with family members to incase they are unable to make it to the retail store. At the same time, they can also forward requests for any coupons and promotions directly or via outdoor advertising done. Thus mobile computing makes pre-shopping phase truck load easier for consumers. When they are outside the store, the consumers can get information regarding any special offers out there before stepping inside the stores. The consumers can also get information that can shape up their entire shopping trip for instance recipes and recommendations. They can also get coupons and promotions outside the store. Similarly, mobile computing can also help customers when they are in the aisle or near the shelf. They can use it to scan the products that they wish to purchase by themselves, before adding them to the basket. They can get rather more detailed information of the products that they are willing to buy. They can collect in-store coupons and discounts and avail them. Similarly they can order directly for products that are not in stock. They can add additional items to shopping list and wish list and keep updating it as and when they feel like it. Mobile technology will also aid consumers immensely when they are check out. They can use it to check out themselves, to pay, to identify themselves and gain access to any loyalty scheme benefits. Most of the aforementioned facilities are feasible already. However the full fledged enablement and application of mobile-enabled retail store at Aghas has not been envisioned. This just captures, the way things will work and shape up, if mobile technologies are able to achieve mass consumer penetration in near future. Agha’s super market must begin working on this straight away to pave way for future and so that it is not over ruled by rapid changes. The way things are today and the way they are expected to shape up later on: Most of the services explained and elaborated over in the aforementioned paragraphs can be implemented in real world environments. However, there are a few limitations that must be kept in mind to this affect. Not every consumer will have access to mobile phones or these subscription plans that will help him avail complete advantage of the services described. There will be variations in handsets and networks. This means that the costs incurred would be high to develop such services for a large number of consumers. The situation will be tough initially but it is not unachievable. However if these minor problems are overcome and the brighter side of the picture is sought for , then mobile computing in retail stores like Agha’s super market is not too far away. It is only a matter of time before it is completely implemented in these brick and mortar systems. The world is moving fast and with that the consumer urges to get things done rapidly and efficiently. In such circumstance, mobile computing can immensely help this fast paced world. Conclusion Mobile computing is cheaper if one scales the target audience which can be addressed through this form of marketing in the long run. Retailers can address larger broader audience domains for relatively small fractions of advertising budgets. At the same time, the nature of this medium gives the consumer the freedom of choice and convenience to go about purchasing products and services at their own behest. Ergo, such businesses have an edge over others in the same platforms. It gives the consumers all the time in their hand to go compare, research, try, and look into the product before actually going about and purchasing it. Thus such technology means give the marketers an upper edge promising results quickly Cost-volume-profit analysis and business goals determine the strategy and the overall impact of the marketing approach chosen. Store owners can also trace statistics more easily and inexpensively compared to the counterpart traditional methods. Almost all nuances of an Internet marketing campaign can be traced, tabulated, measured and verified. Retailers can easily make out which of the aforementioned modes appeal more to the audience. At the same time performance and results of promotional campaigns can be easily traced as well. Mobile computing is yet to grown by leaps and bounds. It needs all kind of exposure, response and efficiency of Internet media it promises, it made it easier to track the traditional offline media. Today marketers and their prospect clients are increasingly well informed and more aware of the need to come together and measure collaborative effects of marketing instead of selling each advertising medium. . Under mobile computing goods are sold directly to customers through business to customer approaches or business to business models. In publishing, advertisements are sold which paves way for a convenient income in its own right. It involves a one-to-one approach such that in most cases, target user is browsing and surfing the internet on his own. Ergo, marketing messages can reach him directly and personally. This approach is normally applied in search marketing where most advertisements are based on search engine keywords that have been plugged in by the user himself. Currently with the emergence of Web 2.0, most users can interconnect with each other as “peers. (Story; 2008; n.p) Mobile computing appeals to specific behavior and interests instead of reaching out to a broadly defined demographic. Retailers can thus target their users by categorizing them into groups on the basis of their age, religion, ethnic backgrounds and a myriad of other factors. They can enjoy the luxury of targeting according to activity and relocation. Agha’s super market can benefit immensely as suggested in the aforementioned arguments if they go ahead and invest in mobile computing. The initial cost of investment will be high but in the long run, the advantages associated with such an investment would be manifold. Not only will they increase their customer base, but would produce loyal customers who would keep returning to their retail store to experience the fast pace, enriched version of retail world shopping that Agha’s is providing. It is only a matter of time before they implement this technology and will see the results come home soon. Bibliography BBC-Apple makes it big. (n.d.). Retrieved Mar 01, 2009, from http://news.bbc.co.uk/2/hi/business/7329886.stm Gershman, A. V. (2000). Situated Computing. Hewagamage, K. P. (2000). Situated Computing. A Paradigm to Enhance the Mobile User's Interaction . Lavine. Cognition in Practice. London: Cambridge University Press. MIT. (1996). Context and Consciousness. A Comparison of acitivity theory, situated action, and distributed Cognition . Story, L. a. (2008, Mar 10). "They Know More Than You Think" (JPEG) "To Aim Ads, Web Is Keeping Closer Eye on You". Retrieved Mar 01, 2009, from Ny times: . http://www.nytimes.com/imagepages/2008/03/10/technology/20080310_PRIVACY_GRAPHIC.html. Underhill. (1999). Why we Buy, the science of shopping. NY: Simon and Suchter Press. Why Marketers are not investing online. (n.d.). Retrieved Mar 01, 2009, from http://blogs.mediapost.com/omd_commentary/?p=692 Variety, Ian Mohr Daily. Reed Business Information . 2006. Read More
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