Complete Nutrition
Indhold
Retail mix: .......................................................................................................................................................... 2
Type of merchandise and services offered: .................................................................................................. 2
Pricing policy.................................................................................................................................................. 4
Growth opportunities .................................................................................................................................... 5
Customer Service and Loyalty ....................................................................................................................... 6
Positioning – Perceptual map: ................................................................................................................... 7
Multichannel retailing ................................................................................................................................... 8
Store design and visual merchandising ......................................................................................................... 9
Planogram................................................................................................................................................ 11
Location ....................................................................................................................................................... 13
Target market: ............................................................................................................................................. 17
Competitive advantage: .............................................................................................................................. 18
Retail mix:
Figur 1: http://incurio.us/retailing/wp-content/uploads/2010/03/retail-mix.png (11.03.15)
Type of merchandise and services offered:
At Complete Nutrition it’s not only about losing weight, maintain health or gain mass. Through the
understanding of hard work and dedication, we want to help consumers building a better version
of them. That’s why our goal is to inspire consumers and enable them to push themselves to
places they never thought possible.1
We build around success and our staff members are certified personal trainers, strength coaches,
experienced fitness professionals2, nutritionists or other people with experience in the fitness and
health supplement retail industry3, because they know what it takes to live a healthy lifestyle4.
This makes us able to provide customers with: 5
1

Valuable, knowledgeable advice on which products will best suit their needs

The most effective fitness program to help reaching their goals

New products to the market and the latest information on health trends6
https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
3 https://www.completenutrition.com/about/ (11.03.15)
4 https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
5 https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
6 https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
2
“At Complete Nutrition, we focus on four ideals: hydration, supplements, balanced diet and
exercise. We want to help provide everything you need to make a personal commitment to these
ideals. Once you make that commitment, we can help you accelerate results by continuing to
provide education on how to live a healthy lifestyle.”7
We meet this approach with a narrow variety of merchandise and within this variety a deep
assortment of merchandise8.
Overall we provide merchandise under the categories Weight Loss, Sports Nutrition and General
Health.9 Within these categories we have merchandise such as:
Figur 2: https://www.completenutrition.com/products/ (11.03.15) - Hold your mouse over the category "PRODUCTS"
Within each of these categories there is a deep assortment of Stock Keeping Units (SKU) 10 but
since “Featured Products” and “Sale Items” are categories that promotes selected products these
want be mentioned.
General Health (32 SKU’s)
Vitamins (11 SKU’s)
Oils & Omegas (4 SKU’s)
Sleep Aids (5 SKU’s)
7
Protein (6 SKU’s)
Sports Nutrition (36 SKU’s)
Muscle Building (5 SKU’s)
Mass Gainers (5 SKU’s)
Pre-Workout (9 SKU’s)
Post-Workout (5 SKU’s)
Toning & Definition (4 SKU’s)
High School Athletes (6 SKU’s)
Condition Specific (6 SKU’s)
Healthy Aging (9 SKU’s)
Digestive Health & Cleansing (3 SKU’s)
Weight Loss (34 SKU’s)
https://www.completenutrition.com/about/why-complete-nutrition/ (11.03.15)
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 2, Page 37
9 https://www.completenutrition.com/products/ (11.03.15)
10 Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 2, Page 37
8
Energy (6 SKU’s)
Endurance (2 SKU’s)
In time we will take more brands into our store since there already are several brands on the
Danish market offering products similar to ours. To attract more customers to our specialized
store with guidance in the product range we will seek out the possibilities to incorporate other
brands into our store. This could be brands like Maxim11, Nutramino12 and Bodylab13 that are all
sells specialized products but without having any physical stores which means they will not be able
to deliver the same services as we can in the physical stores. A good reason to choose these
products is their high value on the market as seen below.
Figur 3: Euromonitor: Sports Nutrition in Denmark, Category Briefing | 04 Mar 2015
Pricing policy
When we set our prices we need to consider that our merchandise are luxury goods and therefore
price elastic, so the quantity sold will fall relatively more than prices increase.
Complete Nutrition use a High/Low Pricing strategy since we are a specialized store where
customers often are willing to pay a higher price and by this strategy the high prizes will attract
customers who are not price-sensitive as well as price-sensitive customers when the merchandice
are sold on sale. To avoid that customers get used to buy our merchandise on sale this only
happens occasionally.14
Complete Nutrition makes use of Second-degree price discrimination in form of Coupons,
Multiple-Unit Pricing, Price Bundling and Promotional Markdowns.
11
http://www.maxim.dk/ (12.03.15)
http://nutramino.com/ (12.03.15)
13
http://www.bodylab.dk/shop/frontpage.html (12.03.15)
14
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 14, Page 388-389
12
Coupons are used for first time customers. By showing the Coupon or using the Coupon-code
online, they will get a 22 %-discount.
We will sometimes make use of Multiple-unit Pricing to increase the amount of merchandise
bought during a store visit and the same goes for Price Bundling which also increases customers
willingness to try something new.
Promotional Markdowns will mainly be used two times a year – in the beginning of spring and
autumn. These periods are chosen based on knowledge of when those who train on a higher level
normally will look for specific merchandise. In Spring they starting thinking of losing weight and
will be needing products from categories such as Protein and Toning & Definition and in autumn
they will need products for Muscle Building and Mass Gainers.
Odd Pricing will be used in general since customers can be price sensitive with our merchandise,
and this price strategy can give a positive price image.
In time we will start using the price lining strategy but it want be relevant until we get more
brands in the store.15
Another thing to take into considerations is the price difference between American and Danish
consumer prizes, which following the Big Mac Index16 is a price difference on 12 %. In this case the
danish consumer prices are 12 % higher than american. This is important since we franchice an
american concept and the merchandice we lead in the store are importet from the US.
Growth opportunities
Complete Nutrition will serve the market with an already present product on an existing market
which means we will be market penetrators. Though the already existing retailers doesn’t look like
us and aren’t competitors placed close to us, this still means we will have to focus even more on
promoting ourselves and tell how we differ from the competitors.
In time when we implement new products, we will still focus on market penetration by adding
new already existing brands to our current merchandise. But the Headquarter of Complete
15
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 14, Page 405-408
16
http://www.economist.com/content/big-mac-index (12.03.15)
Nutrition is always trying to develop new products so Product development is an underlying
strategy in the organization.17
Figur 4: http://www.marketingteacher.com/image/content/Ansoff_lesson.gif (11.03.15)
Customer Service and Loyalty
To create customer loyalty Complete Nutrition will be built on offering excellent customer service.
This requires a lot of training and will take considerable amounts of time and effort to create a
tradition and reputation for excellent customer service. But it will be highly important to make the
experience consistently.
To build a good foundation on creating this excellent service, we will create a Loyalty Club. We will
entice customers to join this club by offering rewards based on their amount of merchandise
purchased and the use of this membership will give us data on each customers shopping behavior.
This knowledge provide us with insights that enable us to build and maintain loyalty be giving
services specialized for the individual customers preferences. But since it’s not given that
customers become loyal by becoming a part of the loyalty club we need to focus on this every day.
To get to know the customers even better and to build a community we will be using social media.
Initially we will be using Facebook, Instagram and Youtube. It enables us to involve customers by
17
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 5, Page 135 - 137
encouraging them to be active on these sites and share information with each other. This will lead
to a greater emotional feeling and loyalty toward us as a retailer.18
To make sure we always keep the service standards high there will be at set of service goals to
motivate the employees to always deliver a highly personalized service.19
-
We will always make sure that all merchandise is on stock
-
We will deliver dependably and accurately service
-
We will look out for what is best for the customer
-
We will give caring and individualized attention to the customer
-
We want to help and provide prompt service
-
We will react to complaints quickly20
Positioning – Perceptual map:
Since we are not on the market yet this is how we want customers to think of us. So this will be
considered on the promotion strategy.
18
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 5, Page 130 - 132
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 18, Page 517 - 537
20
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 18, Page 537
19
Figur 5: Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 5, Page 129
By this positioning map it might seem that we will have a hard time on the market but since we do
have the highest level of service and that our employees all have a big knowledge within the area
and we don’t have the highest prices, we will be able to separate us from the competitors.
Multichannel retailing
It will be possible to shop at Complete Nutrition through the already existing webpage that will
need to get some improvements. First there will be made a Danish version where you can chose
the option to get your merchandise shipped to Denmark. By making a log-in function we will make
reservations for the price differences in the US and Denmark. The prices on the webpage and in
stores will be the same since we don’t want people only to use our store as a showroom but we
also want to make it possible for consumers living in other areas than Lyngby to buy our
merchandise.21
21
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 3, Page 68 - 69
By using a webshop we will be able to offer a greater selection of products, gather even more
information about customers with the log-in function that we can be used to improve the
shopping experience across all channels22
The store gives the customers the possibility to use their senses when purchasing. They can touch,
see and feel the products and besides that they can get personal service. At the same time it gives
us the possibility to product solve problems faster if customers experience any problems with the
merchandise. The customers will be able to use the purchased merchandise immediately which
also gives the possibility for last-minute purchases. For some people it’s more stimulating to be
able to go around, browse and be inspired, and for some it’s important that you can pay with
cash.23
Store design and visual merchandising
The layout in the store is a Free-Form. The fixtures and aisles are arranged in an asymmetric
pattern. This provides an intimate and relaxing environment that invites customers to browse
around the store, which is what we want to achieve. Customers should enter our store and walk
around and get inspired of the different merchandise and what they can achieve by using these.
This design has a utilitarian benefit since it enables customers to locate and purchase products in
an efficient and timely manner with a minimum of hassle, which signs in the store also will help
with. Another thing this design contributes with is that fewer employees are needed since there is
a good overview of the store and the cashier stands next to the storage so it will be quick and easy
to collect missing merchandise to the store.
There will be use signage to identify the location of merchandise categories. These signs will be
standing on the top shelves where they have a high visibility.
Promotional signs with for example merchandise on sale or new merchandise will be placed in the
store windows to entice customers into the store. This merchandise will be placed on fixtures in
the featured areas to get the customers attention while in the store. But the featured areas will
also be used for seasonal merchandise.
22
23
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 3, Page 75 - 79
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 3, Page 72 - 74
On the end caps there will be placed higher margin-, demand-, impulse- and sale merchandise to
attract customers to the back of the store.
Complementary categories will normally be placed next to each other.
Near the entrance and the cash wrap there will be placed impulse buys such as small accessorizes
for the more expensive merchandise.
There will be placed 3D figures around the store, of people who have reached good results with
products like ours, to create a desire with the customers.
As presentation techniques, we will use:
-
Price lining
-
Item and size presentation
-
Vertical merchandising
-
Tonnage merchandise (large quantities displayed together)
-
Frontal presentation (shows as much of the product as possible)
The atmosphere will be supported by energy-efficient lighting, the colors Orange, White, Green,
Grey, Black, music playing in the background and occasionally small product samples.24
24
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 17 , Page 484 - 510
Planogram
Figur 6: http://www.realmaeglerne.dk/erhverv/emnevisning.aspx?sag=146-6067 (11.03.15) / http://s3media1.fl.yelpcdn.com/bphoto/bPcdDnLIxbrSpUZUeaAxdw/ls.jpg (11.03.15)
Figur 7: http://media.mlive.com/businessreview/western_impact/photo/11611587-large.jpg (11.03.15)
Figur 8: http://www.franchisechatter.com/wp-content/uploads/2011/11/4.jpg (11.03.15)
Figur 9: http://thehrubygroup.com/site/wp-content/uploads/2013/05/CompleteNutrition-3.jpg (11.03.15)
Location
The location is urban and placed in a Central Business District, where there are a high level of
pedestrian traffic and many nearby living residents,25 and it’s rented with a Fixed-Rate lease.
The trading area for the physical store will be as big as the map shown below, but the webpage
will be reached from customers from all over the country.
Figur 10: http://map.krak.dk/?q=lyngby%20hovedgade%2015F (12.03.15)
25
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 7, Page 184 - 186
Figur 11: http://www.statistikbanken.dk/statbank5a/default.asp?w=1366 (12.03.15)
Figur 12: http://www.statistikbanken.dk/statbank5a/default.asp?w=1366 (12.03.15)
As the diagrams shows the prognosis for the population level in North Zealand is steady in the
coming years until 2020, for both men and women.
Figur 13: http://www.statistikbanken.dk/statbank5a/default.asp?w=1366 (12.03.15)
The disposable income in North Zealand, in the years 2010 until 2013, has seen a rise from
234.464 DKK – 255.995 DK. That’s an increase on ((255.995/234.646*100)-100=) 9 %. Since it’s a
steady rising curve it’s reasonable to assume that the disposable income level want fall the next
couple of years.
The level of competition is relatively low based on the differences between us and our
competitors mentioned in the positioning map.
Since this is a specialized store customers wants to travel for the target market is spread out to
nearby cities.
The traffic flow is high since Lyngby has many gateways from nearby cities and its easy accessible
with car, bus and train.
There are many nearby parking facilities as shown on the map below.
Complete Nutrition
Figur 14: http://map.krak.dk/?q=lyngby%20hovedgade%2015F (12.03.15)
There is a high visibility from the street as people will be able to recognize the colors from a far
distance as well as it’s an open area when you’re near the store.26
Complete Nutrition
Figur 15: https://www.google.dk/maps/@55.772223,12.501223,3a,75y,22.22h,70.09t/data=!3m4!1e1!3m2!1sISBImkWALtBF0YenPmt1A!2e0 (12.03.15)
26
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 8, Page 209 – 230
Figur 16:
https://www.google.dk/maps/@55.77208,12.501417,3a,75y,355.89h,76.57t/data=!3m4!1e1!3m2!1sCW2Hr41hS5kr3fXAFh1IHQ
!2e0 (12.03.15)
Target market:
Complete Nutrition is a specialized store where customers go to with a specific goal. Either they
know exactly what they are going to purchase or else they get there with a goal they need
professional help to reach. This means customers want accept a substitute and are loyal to brands
and/or retailers. This also means that customers are willing to pay more and spend an extra effort
if necessary to get exactly what they want.
The target markets density in the area is high since there are three different gyms nearby, as
shown on the map. The longest distance is between the store and Twin Spirit where the distance is
1.7 kilometers.
The uniqueness of the store is high since the store is specialized and it’s the only kind of this in
North Zealand. The nearest specialized store is in Copenhagen 17 kilometers and that’s the only
other city with similar stores.27
Competitive advantage:
Complete Nutrition only hires comitted employees to give the best possible service. To the
employees this is a lifestyle and they are highly skilled within the filled and have a personal
experience with the products. Keeping the service on a high level is highly prioritized since this it
what really defines us from the competitors and it will give us a positive word-of-mouth.
The possibility to enter a physical store and get personalized help is also a competitive advantage
as well as the location that are highly visible from the street, with a high level of pedestrian traffic
and four gyms placed in the near areas that can create a top-of-mind awareness.
For Complete Nutrition its also an advantage that we have our own brand that makes it possible to
deliver speciallized developed products for the customers. These advantages are all sustainable
27
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 7, page 199 - 202
since it will be difficult for the competitors to do the exact same things but it requires that we
maintain the high level of service and keep it consistent.28
28
Levy et al. Retailing Management 9th edition, McGraw-Hill International Edition, Chapter 5, Page 134