INTRODUCTIONINTRODUCTION Home odyssey Records is the country’s largest, most innovative, most Home odyssey Records is the country’s largest, most innovative, most

geographically dispersed and comprehensive retailer of CD’s, tapes, geographically dispersed and comprehensive retailer of CD’s, tapes, videos and audio/video accessories. videos and audio/video accessories.

TRADE NAME: Music Exchange Incorporated TRADE NAME: Music Exchange Incorporated FRANCHISED: Single unit franchise FRANCHISED: Single unit franchise CATEGORY: Retail store CATEGORY: Retail store

OBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDY To identify the outlet’s market segmentation, retail format and the To identify the outlet’s market segmentation, retail format and the

strategy in satisfying their customers and to catch potential strategy in satisfying their customers and to catch potential customers.customers.

To learn how to understand consumer’s buying decision, how to To learn how to understand consumer’s buying decision, how to segmentize a market and its importance in the business.segmentize a market and its importance in the business.

HISTORY OF THE COMPANYHISTORY OF THE COMPANY The fist store of Odyssey Records was opened in 1977 in The fist store of Odyssey Records was opened in 1977 in

Greenhills Shopping Center. Greenhills Shopping Center. First or pioneer record store which introduced rack-First or pioneer record store which introduced rack-

jabbing as a store feature started in early part of its jabbing as a store feature started in early part of its operations. operations.

From just one store in 1977, Odyssey has grown to more From just one store in 1977, Odyssey has grown to more than 60 stores nationwide including 6 XL stores that offer than 60 stores nationwide including 6 XL stores that offer customers the widest selection of music products housed customers the widest selection of music products housed in an exciting, forward looking store concept. in an exciting, forward looking store concept.

Odyssey branches are located in major cities nationwide Odyssey branches are located in major cities nationwide including 3 stores in Cebu, in Bacolod and Iloilo, 2 in including 3 stores in Cebu, in Bacolod and Iloilo, 2 in Davao city and 1 in Cagayan De Oro and more in key cities Davao city and 1 in Cagayan De Oro and more in key cities in Luzon and Metro Manila including their outlets in mall .in Luzon and Metro Manila including their outlets in mall .

Their outlet in Robinson Metro East was opened in year Their outlet in Robinson Metro East was opened in year 2001 when the mall also opened. 2001 when the mall also opened.

VISION: To serve the market: Filipino music lovers of all VISION: To serve the market: Filipino music lovers of all ages through establishing more milestones and more ages through establishing more milestones and more trailblazing efforts in the years to come.trailblazing efforts in the years to come.

MISSION: To be customer-oriented, innovative and to be MISSION: To be customer-oriented, innovative and to be operational excellent.operational excellent.

RETAIL FORMATRETAIL FORMATOdyssey is a specialty store of music and home videos. They also sell accessories Odyssey is a specialty store of music and home videos. They also sell accessories

for audio/ video.for audio/ video. RETAIL MIXRETAIL MIX

Merchandise assortmentMerchandise assortment – Odyssey provide limited and one product line but deep in assortment. – Odyssey provide limited and one product line but deep in assortment. Their products are CD’s tapes, videos, audio and video accessories. product assortment is very Their products are CD’s tapes, videos, audio and video accessories. product assortment is very deep because they have lot of categories like Rated A, R, X and General Patronage for movies. deep because they have lot of categories like Rated A, R, X and General Patronage for movies. Classic, love songs, R & B, band songs/rock and other songs by different songs. They also offer Classic, love songs, R & B, band songs/rock and other songs by different songs. They also offer religious songs and for health conscious.religious songs and for health conscious.

Customer ServiceCustomer Service - Provide good customer service because salespeople in the store is always - Provide good customer service because salespeople in the store is always assisting their valued customer with a happy service. They provide trials and also give warranty. assisting their valued customer with a happy service. They provide trials and also give warranty. The company also entertains reservations of item. The company also entertains reservations of item.

Store DesignStore Design – The outlet has sections/ category for different assortment of merchandise. They – The outlet has sections/ category for different assortment of merchandise. They provide clear sign ages for each category of cd/vcd (either music or video).provide clear sign ages for each category of cd/vcd (either music or video).

LocationLocation - Odyssey outlet is low in location. Because first, their outlet is small and second, their - Odyssey outlet is low in location. Because first, their outlet is small and second, their competitor ASTROVISION is located in front of their outlet with attractive store design and wider competitor ASTROVISION is located in front of their outlet with attractive store design and wider than their store. than their store.

PricePrice – Odyssey offers average price because of being affordable in terms of music and video – Odyssey offers average price because of being affordable in terms of music and video products and accessories. products and accessories.

Advertising and PromotionsAdvertising and Promotions – Odyssey has no advertisements which recognized by the people – Odyssey has no advertisements which recognized by the people but they have sales promotions like midnight sale, buy one take one, and discounts which only but they have sales promotions like midnight sale, buy one take one, and discounts which only occurs seasonally. occurs seasonally.

ADDITIONAL INFORMATIONADDITIONAL INFORMATION OUTLET’S COMPETITIONOUTLET’S COMPETITION

The competitor of Odyssey is the Astro Vision, and they The competitor of Odyssey is the Astro Vision, and they are both having outlets in Robinsons Metro East. And are both having outlets in Robinsons Metro East. And based on the retail mix, Astro Vision is better then based on the retail mix, Astro Vision is better then Odyssey in terms of location and wide area because they Odyssey in terms of location and wide area because they could capture more customers if we based on their store could capture more customers if we based on their store design and location. But even if Odyssey has lower rate in design and location. But even if Odyssey has lower rate in retail mix, they still operating because, since Robinsons retail mix, they still operating because, since Robinsons Metro East started, their outlet is there. It means that Metro East started, their outlet is there. It means that they are the first music store establish in the location than they are the first music store establish in the location than its competitor. its competitor.

COMPANY’S NEW FEATURE COMPANY’S NEW FEATURE Odyssey has new feature of store ; the Odyssey XL Odyssey has new feature of store ; the Odyssey XL Odyssey XL provides lot of extras: extra space, extra stuff Odyssey XL provides lot of extras: extra space, extra stuff and extra large. The XL stores have DJ booths from where and extra large. The XL stores have DJ booths from where Odyssey DJ’s do love mixing and playing of music hits. Odyssey DJ’s do love mixing and playing of music hits. There are separate classical and jazz rooms with piped in There are separate classical and jazz rooms with piped in music and video displays. There are state of the art music and video displays. There are state of the art Vidiwalls and Giant Video screens playing the latest Vidiwalls and Giant Video screens playing the latest videos. There is also space for mini in store concerts. But videos. There is also space for mini in store concerts. But Odyssey outlet in Robinsons Metro East has not yet Odyssey outlet in Robinsons Metro East has not yet applied this new feature could which build sustainable applied this new feature could which build sustainable competitive advantage over Astro Vision.competitive advantage over Astro Vision.

MARKET SEGMENTMARKET SEGMENT BY TERRITORY : Robinsons Metro East is located at Dela Paz Marcos BY TERRITORY : Robinsons Metro East is located at Dela Paz Marcos

Highway, Pasig City. It is strategically launched along Marcos Highway Highway, Pasig City. It is strategically launched along Marcos Highway corner Imelda, crossroads to the major population centers of the following:corner Imelda, crossroads to the major population centers of the following:

AREAS TOTAL POPULATION

ESTIMATED MARKET/ CUSTOMER

(%)

PRIMARY MARKET

CAINTA 242, 511 35%

PASIG 505,058 25%

MARIKINA 479,394 20%

SECONDARY MARKET

ANTIPOLO 470,866 10%

SAN MATEO 135, 603 5%

MONTALBAN 115, 167 5%

TOTAL 100%

The primary markets are the areas The primary markets are the areas near the mall and the secondary market is far near the mall and the secondary market is far from malls but engage in their market radius. from malls but engage in their market radius. We estimated that Cainta has the highest We estimated that Cainta has the highest percentage of market or possible customer percentage of market or possible customer because it is near in Robinson and their only because it is near in Robinson and their only competitor in that place is the Sta. Lucia. Even competitor in that place is the Sta. Lucia. Even though, Robinson is place at Pasig City, we though, Robinson is place at Pasig City, we rank the area in second place because Pasig rank the area in second place because Pasig City is a very large area with several malls, so City is a very large area with several malls, so it means that they have a lot of competitor. The it means that they have a lot of competitor. The third one in the primary market is the Marikina third one in the primary market is the Marikina because it is also near the Robinson compare because it is also near the Robinson compare from the secondary market.from the secondary market.

BASES FOR MARKET SEGMENTBASES FOR MARKET SEGMENT

DEMOGRAPHICDEMOGRAPHICMARIKINAMARIKINA

AGE PERCENTAGE TOTAL POPULATION TARGET MARKET

KIDS (5–12 YEARS OLD) 10% 103,166 10,316.6

YOUTH (13 – 19 YEARS OLD)

50% 52,154 26,077

ADULT (20 – 40 YEARS OLD)

25% 176,764 44,191

OLDIES(40 – 50 YEARS OLD)

15% 43,817 65,72.55

PASIGPASIGAGE PERCENTAGE TOTAL POPULATION TARGET

MARKET

KIDS (5–12 YEARS OLD) 10% 91,951 9,755.1

YOUTH (13 – 19 YEARS OLD)

50% 48,746 24,377

ADULT (20 – 40 YEARS OLD)

25% 189,838 47,459.5

OLDIES(40 – 50 YEARS OLD)

15% 54,662 8,199.3

PASIGPASIG

GENDER PERCENTAGE TOTAL POPULATION TARGET MARKET

MALE 50% 179665 89832.5

FEMALE 50% 218430 109215

TOTAL 100%

MARIKINAMARIKINA

BY GENDERBY GENDER

GENDER PERCENTAGE TOTAL POPULATION TARGET MARKET

MALE 50% 189983 9499.5

FEMALE 50% 201247 100623.5

TOTAL 100%

BY EDUCATION – Odyssey also offers BY EDUCATION – Odyssey also offers discovery videos and other educational discovery videos and other educational programs on discs.programs on discs.

BY LOCATIONBY LOCATIONDENSITY (URBAN) – Because DENSITY (URBAN) – Because Odyssey outlet which was identified in Odyssey outlet which was identified in this study is located at Robinsons this study is located at Robinsons Metro East, most of their customer is Metro East, most of their customer is came from urban areas because the came from urban areas because the market radius of the Robinson is market radius of the Robinson is dominantly urban areas. dominantly urban areas.

BY RELIGION – Odyssey’s target BY RELIGION – Odyssey’s target market in terms of religion is the market in terms of religion is the Christian because most of their Christian because most of their religious videos and soundtracks are religious videos and soundtracks are for Christian.for Christian.

BY FAMILY – They also offer their BY FAMILY – They also offer their movies for family. Comedy and drama movies for family. Comedy and drama movies targets the family and love movies targets the family and love stories target the couples.stories target the couples.

PSYCHOGRAPHPSYCHOGRAPHICIC

Odyssey’s market Odyssey’s market segment are the segment are the “HIGH SPIRITS”“HIGH SPIRITS” which are the most vibrant and which are the most vibrant and fun loving people. Because fun loving people. Because Odyssey provides entertainment Odyssey provides entertainment and accessories, they focus on and accessories, they focus on the customers who want the customers who want improvement in their appearance improvement in their appearance or image and to be in with the or image and to be in with the crowd. High Spirit people want to crowd. High Spirit people want to be entertained and to have be entertained and to have uplifting experience which was uplifting experience which was fulfilled by having cool fulfilled by having cool accessories for their gadgets and accessories for their gadgets and entertainment by the movies and entertainment by the movies and songs.songs.

NEED SEGMENTNEED SEGMENT YOUTH SEGMENT – Because the “in YOUTH SEGMENT – Because the “in

demand” innovation is MP$ and other demand” innovation is MP$ and other audio and video player, youth are the audio and video player, youth are the dominant customer for audio and video dominant customer for audio and video accessories like earphones, headsets etc.accessories like earphones, headsets etc.

NEED FOR ENTERTAINMENT – Odyssey NEED FOR ENTERTAINMENT – Odyssey offer products which can satisfy the need offer products which can satisfy the need of the people to be entertain and fight of the people to be entertain and fight boredom. boredom.

EDUCATIONAL NEEDS – These are EDUCATIONAL NEEDS – These are some customers which nee some videos some customers which nee some videos to educate themselves and sometimes to educate themselves and sometimes requirement for school. requirement for school.

LIFESTYLELIFESTYLE – Odyssey offer VCD’s for – Odyssey offer VCD’s for health and body conscious like aerobics health and body conscious like aerobics and exercise movements on video.and exercise movements on video.

BEHAVIORALBEHAVIORAL Loyalty status: Odyssey offers Loyalty status: Odyssey offers

soundtracks pf the latest album soundtracks pf the latest album and songs of singers and their and songs of singers and their customer for that are the loyal fan customer for that are the loyal fan of the singers. And because of the singers. And because Odyssey first came in the mall than Odyssey first came in the mall than its competitor, they could have its competitor, they could have loyal customers which really trust loyal customers which really trust the quality of the products that they the quality of the products that they offer. offer.

Purchase frequency: customer Purchase frequency: customer only buy occasionally, because the only buy occasionally, because the product offered is not a basic product offered is not a basic commodity and only need for commodity and only need for entertainment and fight boredom. entertainment and fight boredom. Consumer only buys if they have Consumer only buys if they have time to go on shopping.time to go on shopping.

BUYING DECISIONBUYING DECISION

Retail outlet performance can affect the buying decision of the Retail outlet performance can affect the buying decision of the customers. Reaching their target market doesn’t end in recognizing their customers. Reaching their target market doesn’t end in recognizing their needs and wants but in satisfying them. In case of the Odyssey outlet, they needs and wants but in satisfying them. In case of the Odyssey outlet, they might successfully reach the target market even if they are low in location might successfully reach the target market even if they are low in location and store design and display. Because, they actually successful in and store design and display. Because, they actually successful in recognizing the needs of the customer and provide clear information to the recognizing the needs of the customer and provide clear information to the customers by means of salespeople and clear navigational aids. Also they customers by means of salespeople and clear navigational aids. Also they offer deeper and complete assortment of merchandise than their competitor offer deeper and complete assortment of merchandise than their competitor so that even if the competitor got the location and store design, customers so that even if the competitor got the location and store design, customers will purchase in Odyssey. And satisfaction exists in the customer because will purchase in Odyssey. And satisfaction exists in the customer because they can assure that they will purchase good and quality merchandise by they can assure that they will purchase good and quality merchandise by testing it before purchasing.testing it before purchasing.

BUYING DECISION BUYING DECISION PROCESSPROCESS

NEED RECOGNITIONNEED RECOGNITION Odyssey is classified in psychological Odyssey is classified in psychological

needs. Odyssey provides the customers needs. Odyssey provides the customers personal gratification feeling.personal gratification feeling.

Customers always find entertainment Customers always find entertainment and something cool most especially the and something cool most especially the youth segment; usually they feel gratified youth segment; usually they feel gratified and enhance their image through having and enhance their image through having cool music/ audio accessories.cool music/ audio accessories.

Customers are music lovers and love to Customers are music lovers and love to sing so Odyssey offers “WOW” magic sing so Odyssey offers “WOW” magic sing for those people who want to sing for those people who want to entertain themselves through videoke entertain themselves through videoke singing as past time. singing as past time.

Odyssey stimulates customers with the Odyssey stimulates customers with the use of background music and visual use of background music and visual displays and at the same time they displays and at the same time they provide learning about new trends and provide learning about new trends and ideas by using of emerging new trends ideas by using of emerging new trends and artists.and artists.

INFORMATION INFORMATION SEARCHSEARCH

The retailer’s objective is to limit the The retailer’s objective is to limit the customer’s information search. It means customer’s information search. It means that they need to provide a good that they need to provide a good selection of merchandise, so customers selection of merchandise, so customers can find something to satisfy their needs can find something to satisfy their needs within the store. within the store.

The outlet of Odyssey in Robinson The outlet of Odyssey in Robinson provides deep assortment of the product provides deep assortment of the product and these are latest and updated and these are latest and updated releases of movies and soundtracks. releases of movies and soundtracks. The outlet has “Top 10 Recommended” The outlet has “Top 10 Recommended” category of CD’s and VCD’s. Also the category of CD’s and VCD’s. Also the service offered by the store is great service offered by the store is great because the salespeople can provide because the salespeople can provide the information needed by the the information needed by the customers.customers.

EVALUATION OF EVALUATION OF ALTERNATIVEALTERNATIVE

Odyssey provides good performance Odyssey provides good performance on the importance of attribute to the on the importance of attribute to the customer. For the customers it is customer. For the customers it is important to be entertained and stay important to be entertained and stay away from boredom and Odyssey away from boredom and Odyssey satisfies them because of its satisfies them because of its merchandise offered. Also, they offer merchandise offered. Also, they offer merchandise which is not offered by merchandise which is not offered by their competitor like movies of their competitor like movies of Warner Brothers.Warner Brothers.

CHOICE OF CHOICE OF ALTERNATIVEALTERNATIVE

Customers sometimes don’t practice Customers sometimes don’t practice the evaluation of alternatives as the evaluation of alternatives as suggested in multi attribute attitude suggested in multi attribute attitude model. They just buy the model. They just buy the merchandise which satisfies their merchandise which satisfies their needs and wants and good on one needs and wants and good on one attribute.attribute.

Astro Vision has greater advantage Astro Vision has greater advantage to Odyssey in terms of location and to Odyssey in terms of location and store design so the outlet create store design so the outlet create good performance through offering good performance through offering merchandise which the competitor merchandise which the competitor haven’t offer and good customer haven’t offer and good customer service.service.

PURCHASING THE PURCHASING THE MERCHANDISEMERCHANDISE

Having good evaluation the store’s Having good evaluation the store’s performance can lead to customer’s performance can lead to customer’s purchase. But they don’t always purchase a purchase. But they don’t always purchase a brand or item wit the highest evaluation. brand or item wit the highest evaluation. Because the item which the customer find Because the item which the customer find may not be available in the store.may not be available in the store.

In case of Odyssey, this outlet offer deep In case of Odyssey, this outlet offer deep assortment than its competitor. These are assortment than its competitor. These are the assortment which is not offered by their the assortment which is not offered by their competitor like the movies of Warner competitor like the movies of Warner Brothers.Brothers.

POST PURCHASE POST PURCHASE EVALUATIONEVALUATION

After the customer avail the product they After the customer avail the product they evaluate whether they are satisfied or not. evaluate whether they are satisfied or not. There are customers who satisfied in their There are customers who satisfied in their consumption and some are not. Though, consumption and some are not. Though, before customer actually purchase the before customer actually purchase the product, they test it if will operate properly, product, they test it if will operate properly, but there are some situation that the but there are some situation that the CD/VCD that they purchase is not operate CD/VCD that they purchase is not operate properly with their player. And to provide properly with their player. And to provide good customer service, Odyssey gives one good customer service, Odyssey gives one week warranty in their product. And the week warranty in their product. And the evaluation of store performance depends on evaluation of store performance depends on the customers.the customers.

RETAIL MARKET STRATEGYRETAIL MARKET STRATEGY

RETAIL MARKETRETAIL MARKET

Odyssey has lack of competitive Odyssey has lack of competitive advantage in location and store design which advantage in location and store design which are factors of having sustainable competitive are factors of having sustainable competitive advantage. But the store has advantage in advantage. But the store has advantage in other aspect like in building customer loyalty. other aspect like in building customer loyalty. They offer assortment of their merchandise They offer assortment of their merchandise which Astro Vision don’t have. They also which Astro Vision don’t have. They also give good and happy service which can be give good and happy service which can be the asset of the outlet. the asset of the outlet.

Despite of being low in location Despite of being low in location and wider area which can affect the outlet in and wider area which can affect the outlet in competition negatively, there’s a reason also competition negatively, there’s a reason also why the outlet is still there and competing why the outlet is still there and competing with Astro Vision and it is because of being with Astro Vision and it is because of being the first outlet came in the mall.the first outlet came in the mall.

SUSTAINABLE COMPETITIVE SUSTAINABLE COMPETITIVE ADVANTAGEADVANTAGE

LOCATION LOCATION –Based upon the location of the –Based upon the location of the retailer we’ve chose, they don’t have any retailer we’ve chose, they don’t have any sustainable advantage against its competitor sustainable advantage against its competitor Astro Vision in terms of location. Although Astro Astro Vision in terms of location. Although Astro Vision selected the best location for its store Vision selected the best location for its store which is basically can be seen upon entering the which is basically can be seen upon entering the mall and usually where people passes by. mall and usually where people passes by. However, they are the first one which put up an However, they are the first one which put up an outlet on that location. As of today, Odyssey is outlet on that location. As of today, Odyssey is still out there competing against Astro Vision.still out there competing against Astro Vision.

LOW COST OPERATIONLOW COST OPERATION – As we observe, the – As we observe, the area of Odyssey in Robinson is small so that it area of Odyssey in Robinson is small so that it pays smaller amount of rent than Astro Vision pays smaller amount of rent than Astro Vision which has wider area. It means that the sacrifice which has wider area. It means that the sacrifice the location to provide much average price to the location to provide much average price to their customer.their customer.

CUSTOMER LOYALTYCUSTOMER LOYALTY – Odyssey offer “unique – Odyssey offer “unique merchandising” because they have assortment merchandising” because they have assortment of product which can avail only in their store. of product which can avail only in their store. And that is the Warner Brothers product.And that is the Warner Brothers product.

RECOMMENDATIONRECOMMENDATION Renovation of the store and application of Renovation of the store and application of

New Diversification of the company (Odyssey New Diversification of the company (Odyssey XL) in the outlet in order to attract more XL) in the outlet in order to attract more customers and to have a very close customers and to have a very close competition with Astro Vision.competition with Astro Vision.

Odyssey has new growth strategy which can Odyssey has new growth strategy which can be classified as “related diversification”. The be classified as “related diversification”. The company extends, develops and adds design company extends, develops and adds design in the store which is common and related in in the store which is common and related in their merchandise. It has a big possibility of their merchandise. It has a big possibility of increasing the sales because of having increasing the sales because of having “Odyssey XL” which can be their sustainable “Odyssey XL” which can be their sustainable competitive advantage and cannot be copy by competitive advantage and cannot be copy by the competitor.the competitor.