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The Salvation Army's background and mission can be summarized as:
The Singapore Salvation Army is a Christian non-profit organization that was established in 1935 by William Booth, a London minister. Booth founded the organization in 1865 and successfully expanded it globally.
The Salvation Army aims to help everyone equally, without any discrimination. Its main objective is to promote the teachings of Jesus Christ and meet the needs of all people, regardless of their race. This mission is encapsulated in their motto "Heart to god, hand to men".
The Red Shield Industries Family Thrift Store is a place where you can find great deals on a variety of items.Established in 1996, The Red Shield Industries (RSI) Family Thrift Store is a social enterprise dedicated to helping individuals who struggle to meet their basic needs. RSI operates by selling items donated by the public through Salvation Army family thrift stores. The proceeds generated from these sales are used to support Salvation Army social services and community programs.
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It is worth noting that for every dollar spent, 90 cents directly goes towards assisting those in need. Aside from managing its thrift store, RSI actively engages in fundraising activities, disaster relief efforts, and seeking donations and sponsorships from supportive organizations. As stated in The Salvation Army's 2011 annual report, RSI receives an average of 10 tonnes of donated items daily. To sustain its social services and community programs, The Salvation Army allocates more than $16.2 million annually.
The SWOT Analysis is the second aspect to consider.
Strengths
Weaknesses
Opportunities and Threats
Observation 3.
Observation method is a highly valuable approach for conducting thorough research, as it complements the information collected through Secondary Research.
The purpose of observation in this research is to understand and determine the current marketing mix of Salvation Army, identify any existing problems, and provide recommendations on what and how Salvation Army should do to increase traffic and sales in Singapore's market.
On February 24th, 2012 at 11am, the researchers of the group conducted an observation at Bukit Merah Family Thrift Store. During this observation, they went to the retail store and observed their surroundings. They documented their findings by taking notes and pictures as evidence.
3.1 Findings: 1. Product: The Salvation Army accepts donations of a variety of products from individuals, regardless of their condition. Some products are in good shape and can be sold again, while others may be completely new and still in their original packaging. The selection of available products is vast and encompasses but is not limited to:
The shop offers a variety of clothing choices, including both brand new and gently-used items in categories such as dresses, bottoms and tops, shoes, bags, and underwear.
Home Furnishing encompasses a range of objects such as paintings, decorations, bowls, plates, spoons, cups, forks, chairs, books, dolls and toys for children.
The Salvation Army has received a donation of instruments, including both usable ones in good condition and others that may be broken or have faulty keys or tones.
Organs, Piano, Guitar
2. Location and Design: Salvation Army stores were situated in an unfavorable location, far from the bustling city of Upper Bukit Timah. Additionally, the store's exterior design was lacking, failing to effectively portray its purpose and entice potential customers.
3. Promotion: Salvation Army offers various promotions to attract customers to make purchases in-store. These promotions include: * "Buy 1 Get 1 FREE" for Toys and CD/DVD products. * "Renovation Sale" with a 50% discount on electronic items. * The "Friend of Salvation Army" Loyal Membership card, which provides a 40% discount on purchases of $40 or more from the retail price.
4. Price: The Salvation Army does not have a set pricing rate for the products they sell. Some products do not have labeled or stated prices. For apparel, casual wear usually costs between $3 and $10, while gowns cost $50 and above. As for home furnishing:
Painting
Decoration: $3 - $5
Bowl, plates, spoon, cup, forks, chair: $3 - $5
Books: $5 - $8
Dolls and Toys for kids: for the dolls cost $5 for each and $8 - $10 for the toys.
* The new brand of Piano is priced at $1200. The old time piano is sold for $888. * The cost of a normal guitar is $100 or more, while the electric guitar is $200 or more. The prices for these products were not clearly stated. * The Organ instrument has a price range of $300 - $400.
4.2 Problem identified Product: Poor Quality Products. The products donated to Salvation Army were of low quality, with some items being brand new but used. This poor product quality could potentially affect sales performance.
2. There is no product filtering.
The Salvation Army accepts any donations from the community without preselecting them before selling them in their store.
3. Product organization is lacking.
The Salvation Army does not arrange products according to specific categories, making it difficult for customers to find what they want as the products are randomly located.
Price:
The Salvation Army store has an excess of products, some of which are missing price tags and others have two price tags with different prices. This can lead to confusion and difficulties for customers.
Promotion: Salvation Army offers an in-store promotion, but the signage and information provided are unclear, leaving customers confused about how the promotion works.
Place: Salvation Army's store lacks visual merchandising and organization, which fails to attract potential customers and encourage purchases.
2. Insufficient Store design. Salvation Army's store lacked attractiveness both in terms of interior and exterior, failing to inform people about their store and encourage them to shop. The store's visual representation plays a crucial role in establishing their brand image.
Our recommendation is to follow the guidelines given in section 3.3.
This research on Salvation Army has reached its conclusion, as we have conducted an in-depth analysis of the marketing mix and identified the organization's problem. To improve the sales of their products, we recommend implementing the following suggestions:
Product Selection.
Salvation Army accepts donations of various items, regardless of their condition. They assess each product's quality to determine whether it can be resold or should be recycled. This selective process helps them offer high-quality products in their stores and ultimately improves their sales performance.
* Product Organization.
The products were scattered and disorganized. To facilitate customer search, Salvation Army should categorize and sub-categorize the products. For instance, organize Women’s Tops into separate racks according to sub-categories (Tank tops, t-shirts, shirts), sizes, and colors. This would make it easier for customers to navigate through the products without confusion.
Price Tag.
Clear pricing information was not provided on certain products, so it is recommended that the Salvation Army ensures that each product has an accurate price tag. This will make it easier for customers to know the prices without having to ask the staff for assistance.
In-store promotion.
It is an advantageous occurrence that the Salvation Army has implemented a promotion. However, there is room for improvement in regards to the promotion. Instead of simply displaying a sign that reads 'BUY 1 GET 1 FREE' adjacent to the product, it would be beneficial to enhance the sign by providing additional information on how the promotion operates.
The Salvation Army should consider updating the exterior of their store by painting the walls, adding props and a logo that represent the Salvation Army Family Thrift Store. They should also use visual merchandising techniques to attract attention. Renovating the store layout and rearranging everything will create a more appealing atmosphere. Changing the floor, wall, and lighting to a brighter white color will have a significant impact on product sales as it makes products look more appealing. When products appear attractive, customers are more likely to desire and purchase them.
Benchmarking: IKEA
IKEA is a well-known and respected brand in the retail industry for home furnishings. Their success lies in their ability to sell large quantities of products through their retail stores. One of IKEA's main strategies is offering low prices, which attracts customers looking for affordable furniture. In addition to affordability, IKEA also offers a wide range of beautifully designed products. This effective selling point has contributed to IKEA's impressive annual sales figure of 21.2 Billion Euros. In conclusion, IKEA stands out for providing budget-friendly and stylish furniture.
This renowned global furniture brand is popular among consumers of all ages.
IKEA is renowned for its commitment to providing affordable products of high quality. They offer a diverse selection of options and designs for customers to choose from. IKEA has successfully achieved a balance between quality, design, variety, and cost. Moreover, IKEA is globally recognized for its sustainable practices that involve the reuse of source materials. The OGLA chairs exemplify this approach as they are constructed from reclaimed wood, reducing the demand for new solid wood in production. To ensure competitive prices and exceptional quality, IKEA establishes enduring partnerships with local suppliers and procures larger quantities of products to negotiate advantageous deals.
IKEA saves on transport costs by using source material that is geographically close to their suppliers. This allows them to deliver products directly from local suppliers to local IKEA stores. As a result, handling costs and road miles are reduced, and the prices of products remain the same or may even be lowered.
Implications:
Strong Brand Image or Personality and Well-Known. IKEA has built a worldwide reputation for its home furnishings. When people think about buying new furniture, they instantly recall IKEA and opt to make their purchase there. Strategic Store Location. The store's location plays a crucial role in boosting sales and influencing the brand. In today's world, people favor conveniently located stores positioned in towns or cities.
Recycling or reusing products is an effective way to save on production costs. Any leftover material can be utilized to create different types of products, and unsold items should be recycled and transformed into something new.
Recommendation:
Create a distinct and recognizable brand image for the Salvation Army by leveraging its most popular product.
The location of Salvation Army's store needs improvement. The store is currently located far away from the city, which deters people living in the city or other areas from visiting it. Therefore, it is suggested that Salvation Army opens a branch store in the city. Having a store in the city would increase its selling potential as people pass through the city area on a daily basis.
Salvation Army should prioritize assessing and selecting donated products to prevent any potential issues. They currently do not consider whether items can still be sold. It would be beneficial for Salvation Army to improve this aspect by implementing a filtering system. Products that are not in good condition should be recycled to produce something better.
References: no author. (2007). Modul Services to IKEA Components. Available: http://www.ikea-components.com/web/History.aspx. Last accessed 7th March 2012. no author. (2007). History - How it all began. Available: http://www.ikea.com/ms/en_GB/about_ikea/the_ikea_way/history/index.html#. Last accessed 7th March 2012. no author. (2010). IKEA awarded Norske Skog as best supplier of the world's largest publication. Available: < ahref="http://www.norskeskog.com/People-and-press/Press-room/Articles/IKEA-awarded-Norske-Skog.aspx">http://www.norskeskog.com/People-and-press/Press-room/Articles/IKEA-awarded-Norske-Skog.aspx. Last accessed 7th
The Salvation Army: Mission and Impact. (2017, Jan 09). Retrieved from https://studymoose.com/salvation-army-essay
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