How the Campustown Redwood and Ross Store

Can Increase Sales to

University of Illinois

Undergraduate Men

Prepared for

Mark Hoover Manager Campustown Redwood and Ross Champaign, Illinois

Prepared by

Deanna Chapman Champaign, Illinois

December 10, 2001

December 10, 2012

Mr. Mark Hoover
Manager
Campustown Redwood and Ross
519 East Green Street
Champaign, IL 61820

Dear Mark:

Here is the report you asked for September 25 about ways Redwood and Ross could increase its sales to University of Illinois undergraduate men.

To increase sales, you should

• Train all salesclerks to be more helpful, friendly, and courteous to the customers. • Target sales to fraternity members and freshmen.

• Run ads in The Daily Illini on Fridays stressing the style and quality of Redwood and Ross's products and stating the store hours and campus location.

• Advertise special sales so that price-conscious students will go into the store and become familiar with the products and store qualities.

If Redwood and Ross continues its present promotional activities and fits the new advertising strategy into the program, awareness will increase, which will lead to greater sales in the long run.

I enjoyed having the chance to apply marketing theory to a real problem. If you have any questions about the material in this report, please call me.

Sincerely,
[pic]
Deanna Chapman

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Table of Contents

Letter of Transmittal i
Executive Summary iii
Introduction 1 Purpose 1 Scope 1 Methodology 2 Limitations 3 Assumptions 4
Redwood and Ross's Campustown Store 4 Redwood and Ross's Product Line 4 Redwood and Ross's Prices 4 Redwood and Ross's Advertising 5 Problems Facing Redwood and Ross 5
Reasons for Redwood and Ross's Low Sales 5 Campustown Market Potential for Men's Clothes 6 Perceptions of Redwood and Ross's Products 7 Competitive Advantages 8 Importance of Service, Atmosphere, and Location 9 Redwood and Ross's Rating on Service, Atmosphere, and Location 10 Awareness of Redwood and Ross 11 Name Recognition 12 Awareness of Redwood and Ross's Characteristics 12
Potential Markets for Redwood and Ross 12 Fraternity Members 12 Freshmen 13
Advertising Strategies for Redwood and Ross 13
Recommendations 16
Note 17
Appendix A Clothing Store Questionnaire 18
Appendix B Tally of Responses to Questionnaire 20
Appendix C Responses to Open-Ended Question 26

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List of Illustrations

Table 1 Clothes Cost Twice as Much at Redwood and Ross 5
Figure 1 Quality Matters Most to Undergraduate Men 7
Table 2 Most Students Depend on Parents for Income 9
Figure 2 Students Prefer Buying Clothes at Home or in the Mall 11
Table 3 Students Rely on Newspapers for Ads 14
Figure 3 Most Students Read The Daily Illini at Least Once a Week 15

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How the Campustown Redwood and Ross Store Can Increase Sales to University of Illinois Undergraduate Men

Executive Summary

The Campustown Redwood and Ross store can increase sales to University of Illinois undergraduate men by training all salesclerks to be more helpful, friendly, and courteous; by targeting sales to fraternity members and freshmen; by running ads in The Daily Illini on Fridays stressing the style and quality of Redwood and Ross's products and stating the store hours and location; and by advertising special sales so that price-conscious students go into the store and become familiar with it.

The sales potential for campustown men's stores is high. Only four stores share the area, approximately 70% of the men I surveyed shopped for clothes in the C-U area in the past year. Seventy percent of the undergraduate men on campus represents a potential market of 14,000 students.

The students I surveyed like the style and quality of Redwood and Ross's clothing, though they believe that prices are too high. Men rate Redwood and Ross as only "average" on service, a quality that is important in determining where they shop.

Fraternity members are a good target market for Redwood and Ross because they buy more clothes, are already familiar with Redwood and Ross, and presently shop there more often than do non-fraternity members. Freshmen should be the thirdary market because Redwood and Ross could establish a four-year relationship with them. However, few freshmen are currently aware of Redwood and Ross, so an ad campaign is needed.

Redwood and Ross should advertise in The Daily Illini on Fridays, the day with the highest readership. Ads should stress style and quality of Redwood and Ross's products, since these are the qualities that appeal to fraternity men. The ads should also state the store hours and location to make it easy for freshmen to find the store.

Redwood and Ross should also have advertised sales. All the men I surveyed were price-conscious, and many believe that they cannot afford to buy at Redwood and Ross. Specials would encourage people who are not regulars to come into the store. Once they are familiar with it, they are more likely to return throughout the year.

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INTRODUCTION

Purpose

The purpose of this study is to recommend to Redwood and Ross on campus what product lines, store image, and advertising strategies can increase sales to University of Illinois male undergraduate students.

Scope

The four main foci of this report are 1. Clothing preferences of U of I men, 2. Qualities of a store men look for when they choose a clothing store, 3. U of I males' buying behavior, and 4. Appropriate advertising media for Redwood and Ross.

The first focus of this study, men's clothing preferences, will reveal what style of clothing men prefer to wear. Redwood and Ross carries classically styled clothing, so I must determine if there is a demand for this. Specific brand names will not be mentioned.

I also want to know what is important to male students when they select a clothing store. What makes a man go to one store rather than another? Many factors influence this decision; the ones I will discuss are atmosphere, product quality, product style, location of store, price, service (personnel), and advertising.

Once I determine what influences a man's decision to buy from one store rather than another, I will see how Redwood and Ross rates on these characteristics. This will show if Redwood and Ross offers what the college man wants. Redwood and Ross's competitors will not be rated on these factors.

Another major emphasis of this study is on men's buying behavior. This includes how often they shop, where they shop, and with whom they shop. I will not discuss why men shop, if they like to shop, and why they do not shop (time constraints, no need for new clothes).

The final factor I will examine is the most effective advertising for Redwood and Ross. Radio, television, circulars, and word-of-mouth-advertising will be considered, but newspaper advertising will be the primary medium I discuss. The Champaign-Urbana News Gazette, The Daily Illini, and The Chicago Tribune will be considered as potential newspapers in which to advertise. What the ad should stress to get the population's attention and when the ads should be run are topics I will examine.

I will not discuss Redwood and Ross's advertising budget or the costs of advertising.

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Methodology

My main source of information is a survey of 113 U of I male students. Approximately 50 were contacted by random telephone survey while the others were contacted through nine randomly selected fraternities.

I conducted a systematic random telephone survey of fifty male undergraduate U of I students on November 4. To get the desired number in the sample, I estimated that 150 phone numbers would have to be dialed. The current Student-Staff Telephone Directory was chosen as the sampling frame. Using a random digit table, I selected the first phone number from the book. The people who appeared every other page in the same row and column as the first phone number composed my sample.

I dialed the numbers in the order selected; if a male answered the phone, I said, "Hello. My name is Deanna Chapman. I'm conducting a survey for a Business and Technical Writing Class I have. Could you please answer a few questions for me?" From there I proceeded to ask the questions in the order shown on the survey in Appendix A. Each of the respondents' answers were recorded on a separate copy of the questionnaire. At the end of the survey, I thanked the respondent for his time and proceeded to the next telephone number. If a female answered the phone, I said, "Hello. My name is Deanna Chapman. I'm conducting a survey for a Business and Technical Writing class I have. Is there a male University of Illinois student living in your household that I may speak to?" Generally, there was not, so I would thank her for her time and hang up. If there was, I would go through the speech for males.

If no one answered the phone or if the line was busy, I hung up and did not call the number again. If one phone number was in the list more than once, which sometimes happened with men in fraternities who use the house number, I called only one time because the same person would be answering the telephone.

Using this random survey method caused a major problem. There was a disproportionate number of freshman and sophomore non-fraternity males in the sample as a result of using the 1987-88 telephone directory. The same university numbers are used every year, but a large proportion of non-University numbers are disconnected or not in service from one year to the next. To compensate for this uneven distribution, I selected nine fraternities at random with fifteen questionnaires delivered to each house.

My sample is composed of 55% fraternity men and 45% non-fraternity men. This does not accurately represent the U of I male student population because only 15% are actually fraternity members. But I was particularly interested in this group's buying characteristics because I thought it might be a potential target market for Redwood and Ross. I got a better understanding of this group's characteristics as I sampled more fraternity members. So the sample is not representative of the male student population, but it allows me to accurately analyze the group I am interested in.

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Limitations

With every survey, biases will be present. With this one, two biases were possible: sample bias due to non-response, and interviewer error.

Sample bias results from some people refusing to answer the questionnaire or some people not being home when the calls were made. Because I did not call back those people who did not answer the phone, some error does exist.

If the men who would not answer the questions or who were not home when the survey was taken are different in any way from those who were home and answered the questions, then my sample will not be representative. Those people who did answer the questionnaire probably are more concerned with their clothing, so the sample may not fairly represent men who do not care about their clothing.

The outdated sampling frame (telephone book) I used could also result in a biased sample. As I already mentioned, I had to take another survey of fraternity men to obtain a more representative sample.

The third source of bias, interviewer error, results from the interviewer changing the style of asking questions. The accuracy of the answers will decrease if the interviewer probes to varying degrees, listens to and interprets responses differently, or establishes varying degrees of rapport with respondents.

I tried to guard against this bias by being consistent when asking questions and interpreting the responses given to me. But even if I did remain consistent, my actions were open to interpretation by the respondents. This source of error probably did not significantly affect the accuracy.

The final limitation of this study is that the recommendations are based on current clothing preferences and buying behavior. These recommendations will be useful as long as preferences and buying behavior remain relatively unchanged.

Assumptions

I am assuming that Redwood and Ross is willing and can afford to spend the money necessary to implement the strategy.

I am also assuming that year in school reflects the amount of time the person has lived on campus. For example, if someone is a freshman, I assume he has been on campus less than a year. This assumption is necessary when I recommend the advertising strategy Redwood and Ross should follow.

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REDWOOD AND ROSS'S CAMPUSTOWN STORE

Twenty-one Redwood and Ross stores are located throughout the midwest with stores in Illinois, Indiana, Michigan, and Wisconsin. This chain is privately owned with main headquarters in Kalamazoo, Michigan.

The University of Illinois campustown store was founded in 1957 and is located at the corner of Green Street and Sixth Street, the heart of campustown.

Redwood and Ross wants to maintain a consistent image across all stores; every Redwood and Ross store carries the same style and quality of products. To insure uniformity, the advertising and pricing policies are controlled by managers at the main headquarters in Michigan.

Redwood and Ross's Product Line

Both quality and style are important components of Redwood and Ross's product line. Redwood and Ross stores carry only high-quality, well-known name brands.

Redwood and Ross's Prices

Prices are higher than average at Redwood and Ross. As Figure 1 shows (page 5), Redwood and Ross's prices are higher than those at Sears, a favorite store among U of I college men--over twice as high on wool blazers and sweaters. The design of the product is similar at the two stores.

Redwood and Ross wants the customer to feel that high quality, stylish clothing is worth the extra money. Mark Hoover, manager of Redwood and Ross on campus, believes that "clothes are an investment." If the man buys good clothes, he saves money in the long run because the clothes last longer and will be in style longer. Redwood and Ross emphasizes that its clothes are a good value because of the styling and workmanship.

Table 1. Clothes Cost Twice as Much at Redwood and Ross

Item Cost at Redwood and Ross Cost at Sears

Wool Blazer $180 $75 Wool Crewneck Sweater 30-80 24 Striped Dress Shirt 34 18

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Redwood and Ross's Advertising

Redwood and Ross does not believe that extensive advertising is consistent with its image; therefore, it relies mainly on its reputation as a fine clothing store to attract new customers. Word-of-mouth testimony from existing satisfied customers is the most effective form of promotion, according to Mr. Mark Hoover. The only form of media advertising Redwood and Ross currently uses is newspaper ads with pictures of the clothing and text emphasizing "classic versatility." Most of the ads are placed in The Champaign-Urbana News-Gazette while a few similar ads are in The Daily Illini.

Redwood and Ross uses brochures more often than media advertising. The brochures enhance the image as a high quality retail store. The colorful pictures and informative description of each product provide information about the style, quality, design, and price of the products. Redwood and Ross also promotes its image with phrases such as "traditional excellence," "classic collection," and "life style of good taste and lasting tradition."

Problems Facing Redwood and Ross

Redwood and Ross's basic problem is that sales of its product lines have not been as high as management would like. Redwood and Ross in campustown has been profitable, but management feels that sales have not reached their potential.

REASONS FOR REDWOOD AND ROSS'S LOW SALES

Four possible causes of the low sales level are

1. The demand for men's clothing is not great enough to support the men's clothing stores which currently exist.

2. The demand for classically styled clothing is not great enough to support Redwood and Ross.

3. Redwood and Ross does not have the differentiating characteristics which are important when choosing a clothing store.

4. The male student population is unaware of Redwood and Ross and is unfamiliar with its products and characteristics.

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My research shows that of these possible reasons, only the last is a serious problem. A thirdary problem is that while men like the clothing Redwood and Ross carries, they believe that the prices are too high.

Campustown Market Potential for Men's Clothes

The sales potential for all campustown men's clothing stores is high. My survey shows that approximately 70% of the undergraduate male students have shopped in the C-U area for clothes in the past year. This represents about 14,000 of the 20,000 undergraduate male U of I students. Obviously, 14,000 men is a sizable market for a campustown store.

Most of the men (65%) shop less than once a month while 32% shop from one to three times a month. These statistics show that men do shop quite often.

There are currently four men's clothing stores on campus--Get Your Shirt Together, Goldsmith's, Redwood and Ross, and Shumaker's--trying to satisfy this demand for men's clothes. This shows that campustown competition is not that great. If a student wants to shop on campus, he does not have a variety of choices. Almost half of the men surveyed believe that campustown does not have enough men's clothing stores.

Most men prefer to shop off campus, but location does not seem to be a hindrance for Redwood and Ross; over 68% of the sample think Redwood and Ross has an excellent location, as I will discuss in more detail later. My research shows that even though men may prefer to shop off campus, Redwood and Ross is conveniently located if they must shop in campustown.

Redwood and Ross has the potential to capitalize on the student market. With 14,000 men shopping each year and only four stores on campus attempting to meet the demand, Redwood and Ross has great sales potential.

Perceptions of Redwood and Ross's Products

Another of the potential causes of the low sales problem is that there is no demand for the style, quality, or price of clothing Redwood and Ross offers. The men who responded to my survey were satisfied with the product style and quality, but most of them felt that the prices were too high.

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Whether or not a man likes the style, quality, and price of a particular store's product is extremely important to him when he chooses a clothing store. These are the three most important factors to him when he selects a store. In the survey, I asked each respondent to rate product style, quality, and price as being either "Very Important," "Important," or "Not Important" when he chooses a store. Of the men who answered this question, 73% rate quality as very important; style was the third most important factor with 67% rating it as very important. Forty percent believe that price is very important, while 98% rate it as very important or important.

[pic] Figure 1 Quality Matters Most to Undergraduate Men

Each of these three factors influences where a man decides to shop. So, if Redwood and Ross is not offering the style, quality, or price undergraduate men want, sales will suffer. I asked the respondents to rate Redwood and Ross's products on these three characteristics to see if they are satisfied. The results show that the men like the style and quality, but they believe prices are too high. Seventy-one percent rate quality as excellent; sixty-six percent believe the style is excellent, and fifty-three percent say the prices are too high. The sales potential does exist if Redwood and Ross can combat the dissatisfaction with its prices.

In general, male students are very price-conscious about clothes. In the survey, 73% agreed that clothing prices were too high.

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Some of the people who wrote comments on the questionnaire expressed strong feelings about the high price of clothes. Some typical comments were

Bring the prices down a bit and you'll see me much more often! I like buying clothes (nice clothes) and would like to do so more often if it was affordable. Remember students are on a limited budget.

I really enjoy nice clothes, but seldom can afford them.

In relation to how much money I have, men's clothing prices are too high.

I'm on a tight budget during the school year. Tell the University to lower tuition and fees and the rest of campustown to lower prices.

A survey conducted for The Daily Illini by Belden Associates, a marketing and communications research and counselling firm, shows where students get their money. Most students are at least partially dependent upon their parents. Another major source is part-time and summer employment. (See Table 2, page 9.)

This research also shows that students have a limited money supply; they must pay for tuition, housing, food, books, and any other items from the money they get from their parents, employment, scholarships, and loans. The money earned by employment, especially part-time and summer, is restricted, as is scholarship and loan money. Also, the money received from parents is limited unless the parents can afford and are willing to give unlimited amounts to their child.

This information about price sensitivity has an important implication for Redwood and Ross: unless Redwood and Ross can lower prices, sales of its clothing will not increase.

Competitive Advantages

Competitive advantages are qualities which differentiate one store from another. These characteristics are unique to a store and may include the store personnel, atmosphere, and location. Product quality, style, and price are not competitive advantages because the same products and prices can be found at a number of stores in the C-U area. For example, Baskins, Carson Pirie Scott, and Kuhn's all carry a classically designed product at prices comparable to Redwood and Ross's.

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Table 2 Most Students Depend on Parents for Income

Percentage Who Receive Income Source from This Source Parents 37% Part-time Employment 27% Summer Employment 19% Loan 15% Scholarships 10% Full-time Employment 5% Other 13%

Note: Percentages total more than 100% because multiple answers were permitted.

Source: Belden Associates, College Newspaper Audience (Champaign, Illini Publishing Company, 1985), p. 20.

According to my survey, service, atmosphere, and location influence where men shop. Redwood and Ross is judged to be average on service and atmosphere, the two most important characteristics, and excellent only on location, which is considered least important.

Importance of Service, Atmosphere, and Location

Service was by far the most important characteristic with 80% of the respondents believing it to be either very important or important. But what do men want the service to be like? Do they want the sales clerk's opinion, or would they rather that the sales clerk left them alone to shop? A majority (60%) want someone's opinion when they shop, but, according to some of the comments on the questionnaires, men do not like pushy or overly helpful salespeople. One respondent wrote, "I don't like them to drag out a bunch of clothes for me to try on. All they want to do is make a sale." Men prefer helpful, but not pushy, salesclerks.

Atmosphere was also an important advantage with 65% rating it as an important factor when they choose a store. I found that men prefer a bright, friendly, warm, informal atmosphere rather than a dark, quiet, formal one. The store decor can create an uninviting or even intimidating look by seeming unfriendly, dark, or too formal.

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A good location is the least important competitive advantage a men's retail clothing store can have. Over half of the sample rated location as not at all important to them.

Redwood and Ross's Rating on Service, Atmosphere, and Location

In my survey, Redwood and Ross rated average on service and atmosphere, the two most important characteristics, and excellent on the least important quality, location.

Redwood and Ross's service could be improved. A majority rate it as being just average. One man was so dissatisfied with the service that he stopped shopping there. He commented, "The personnel were so snobby that I won't go in there any more." This is an isolated example, but it demonstrates that people can be negatively affected by snobby or rude personnel.

The personnel should be helpful by approaching every customer and asking if he needs help. If he answers "No", the salesclerk should still watch him to see if he needs help later. The salesclerk should never flatter the customer and say he looks good in everything. The salespeople should be friendly, honest, available, and willing to help.

Ninety-nine percent of the people who know about Redwood and Ross's atmosphere rate it as either good or excellent. This terrific response cannot be accepted at face value because half of the respondents have no perception of the atmosphere. This may be a real problem because the people who responded "No perception" may be the ones who would not like the atmosphere if they did know about it.

I found that a positive relationship exists between the importance of the atmosphere and Redwood and Ross's rating on it. Redwood and Ross should not change its atmosphere because those people who think it is important are satisfied with Redwood and Ross.

The final and least important competitive advantage is the location of the store. Redwood and Ross received excellent ratings on this factor. Of the people who answered this question, 75% rate Redwood and Ross as excellent. Research by Belden Associates shows that 68% of the students shop in campustown at least once a month. So students do spend time and money on campus.

I had also asked "Where do you prefer to shop?" Only 16% said they preferred campustown. A majority would rather shop in their home towns. Figure 2 shows where U of I men prefer to buy clothing.

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"Where do you prefer to buy clothes?” [pic]

Figure 2 Students Prefer Buying Clothes at Home or in the Mall

The two research results seem to contradict each other. One question shows that 75% think Redwood and Ross's campustown location is convenient while only 16% prefer to shop there. A possible explanation is that men really do prefer to shop in their home towns, but if they need clothes and they cannot go home to buy them, then Redwood and Ross is easily accessible.

Since service and atmosphere are important when men choose a clothing store, Redwood and Ross can improve its service by having friendly, helpful salesclerks who are not too pushy. The atmosphere should not be changed because those people who think the atmosphere is important are satisfied with Redwood and Ross's present atmosphere. Location is not an important factor when men choose a clothing store. Most men think Redwood and Ross is conveniently located even though they may not prefer to shop on campus.

Awareness of Redwood and Ross

Awareness is Redwood and Ross's most serious problem. The research I have done shows that a significant majority of U of I men have never heard of Redwood and Ross and are unfamiliar with its products and characteristics.

Name Recognition

Thirty percent of my respondents had never heard of Redwood and Ross. Freshmen are the least aware with 67% never having heard of the store; 86% of the seniors have heard about Redwood and Ross which makes this group the most aware.

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Whether the person has ever heard of Redwood and Ross is also related to fraternity membership. Eighty-two percent of the fraternity members have heard of it while only 57% of the others know about the store.

Awareness of Redwood and Ross's Characteristics

The survey shows that half of the sample has no perception of Redwood and Ross's product lines, atmosphere, service, prices, or location.

POTENTIAL MARKETS FOR REDWOOD AND ROSS

The best target market for Redwood and Ross is fraternity members and freshmen.

Fraternity Members

Fraternity members should be Redwood and Ross's primary target market for several reasons. First, these men buy clothes more often, and, as I mentioned in a previous section, fraternity members are presently more aware of Redwood and Ross. Frat members like the atmosphere, product lines, service, location, and prices at Redwood and Ross more than non-members do.

The research shows that almost half of the frat men buy clothes from one to three times a month, compared to only 24% of non-members buying that often. This leaves 76% of non-Greeks shopping less than once a month. If Redwood and Ross could get these frat members to shop at this store, the sales potential would be greater than if non-members shopped there because Greeks buy more clothing than the others do.

Redwood and Ross would not have to increase the awareness of its store among frat members as much as it would have to among non-members. This is because most Greeks already know of Redwood and Ross. Cross tabulations of the research data show that whether the person has heard of Redwood and Ross is significantly related to fraternity membership. Eighty-two percent of the Greeks have heard of the store, compared to 57% of non-Greeks.

Fraternity members presently buy more clothes at Redwood and Ross than non-members do. This means that they are more familiar with the product lines and that they like the product and store qualities. Thirty-two percent of frat members have bought clothes from Redwood and Ross in the past year, compared to 8% of non-members.

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The final reason frat members should be the primary target market is that not only do they shop there more often, but they also like the products and store qualities more than the others do. The research data supports this, and it follows from their shopping at Redwood and Ross more often. If they did not like the products, it is logical to assume that they would not shop there.

The research I have done shows that 70% of fraternity members like the style and quality while 62% of the others like these features of Redwood and Ross. The biggest difference between fraternity members and non-members occurs in their perceptions of the prices. Thirty-nine percent of the Greeks perceive the prices as high, while 80% of non-Greeks think prices are too high.

In conclusion, fraternity members represent a better target market than non-members because they shop more often, are more aware of Redwood and Ross, and like the present store characteristics.

Freshmen

Freshmen, in contrast to fraternity members, buy fewer clothes and are less aware of Redwood and Ross. But, if Redwood and Ross could get men's patronage while they were freshmen, a four-year clientele relationship could be established. In the long run, Redwood and Ross could benefit from the effort to reach freshmen.

There are about six thousand freshmen who go to school at the U of I. Almost half, or three thousand, have shopped in the C-U area for clothing since they came to school. This is a sizable market which has potential for growth.

Redwood and Ross must somehow increase its awareness among freshmen. Approximately 75% do not know what product style or quality Redwood and Ross carries. If Redwood and Ross is to successfully make freshmen a target market, then Redwood and Ross must develop strategies for increasing awareness.

ADVERTISING STRATEGIES FOR REDWOOD AND ROSS

Advertising can serve several purposes for a retail clothing store. First of all, advertising gives people information about product lines, prices, store hours, and store location. Also, advertising can help a store create an image. If the ad is sophisticated and portrays a sophisticated image of the store, people will get the impression that the store is sophisticated. Successful advertising can create any type of image the store desires.

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Advertising makes the audience more aware of products and prices a store offers. People can get an idea of the quality, style, atmosphere and price available at the clothing store. Advertising, by creating awareness, can increase sales.

Belden Associates' research on advertising in Champaign-Urbana shows that the most effective medium is newspapers. The respondents to the questionnaire were asked to choose the one source of advertising they relied upon most. As Table 3 shows, newspapers are by far the most popular source with students.

Table 3 Students Rely on Newspapers for Ads

Newspapers 73%

Radio 9%

Circulars 6%

Television 4%

Word-of-mouth 4%

Yellow Pages 2%

Other 2%

Source: Belden Associates, College Newspaper Audience (Champaign, Illini Publishing Company, 1985), p. 10.

Besides being the advertising medium students rely upon most, newspapers offer several other advantages to Redwood and Ross: newspaper advertising is flexible, gets quick results, and can increase Redwood and Ross's prestige.

First, newspaper advertising can be tailored to fit the needs of a certain locality or market. Because the U of I student market is unique, Redwood and Ross needs the flexibility in content and appearance of the ad. What works for Redwood and Ross's other, more mature, markets will not work for the student population. Newspaper advertising will allow Redwood and Ross to display the products suited to a campus audience.

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The third advantage of newspaper ads is that they get quick results. The Bureau of Advertising reported that "the entire atmosphere of the newspaper is one of speed and action and timeliness. That is why so many advertisers use newspapers to get sales quickly."1

In addition, newspaper advertising will allow Redwood and Ross to retain its image. One reason management now uses this type rather than any other form of advertising is that Redwood and Ross can enhance its image by manipulating the content and appearance of the ad.

The best newspaper for Redwood and Ross's ads is The Daily Illini. As Figure 3 shows, an overwhelming 88% of college students read The Daily Illini at least once a week. None of the other newspapers comes close to matching The Daily Illini's following.

[pic]

Figure 3 Most Students Read The Daily Illini at Least Once a Week

Source: Belden Associates, College Newspaper Audience (Champaign, Illini Publishing Company, 1985), p. 10.

Ann Guggemos, the business manager of The Daily Illini, says that the Friday edition is the most widely read for several reasons. Television listings for Thursday through Monday, as well as the Spectrum, a popular supplement to The Daily Illini, appear in Friday's paper. People tend to save this edition and refer to it until Tuesday since no paper is printed on Sunday or Monday, and Saturday's paper is usually small.

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For Redwood and Ross to have maximum exposure, it should advertise in Friday's The Daily Illini.

To attract the attention of the target markets, the ads must stress the style, quality, and price of the products because these are the aspects which the target markets thought were important when choosing a clothing store. A picture of a product would be a good way to stress the design and quality offered at Redwood and Ross.

RECOMMENDATIONS

After examining the research that has been done by myself and others, I have recommendations to make concerning Redwood and Ross's personnel, target markets, and advertising strategy.

Because so many students were dissatisfied with Redwood and Ross's personnel, I recommend that Redwood and Ross train all salesclerks to be more helpful, friendly, and courteous to the customers. They should ask each customer if he needs help, and they should be honest when he does ask for assistance. For example, if the person were trying on a suit that was too big for him, the salesperson could offer to get him another size or to have the suit altered, but the clerk should never say that the suit fits him well if it does not.

The third recommendation is that fraternity members should be Redwood and Ross's primary target market. The research shows that these men represent greater sales potential than non-members because they buy more clothes, are already familiar with Redwood and Ross, and presently buy more clothing there than others do.

Freshmen should be the thirdary target market because Redwood and Ross could establish a four-year relationship with them. If they bought from Redwood and Ross while they were freshmen, they would have been familiar with the store for four years. The problem with freshmen being a market is that they have been on campus for less than a year and, therefore, are mainly unaware of Redwood and Ross. A vigorous advertising campaign aimed at these men will increase awareness of Redwood and Ross among freshmen.

The final recommendation to Redwood and Ross is an advertising strategy which will provide information, increase awareness, promote Redwood and Ross's image, and, in the long run, increase sales.

Most students rely upon newspaper advertising, particularly The Daily Illini, as a source of advertising. Redwood and Ross should advertise in this paper on Friday because this edition has the highest readership.

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To attract fraternity men's attention, the ad should stress the style and quality of Redwood and Ross's product. Also, to inform the freshmen, the ad should state the store hours and campus location.

I also recommend that Redwood and Ross should hold advertised sales. All male students were price-sensitive, and many believe that they cannot afford to buy from Redwood and Ross. With specials, more people would go into Redwood and Ross and become familiar with the products and store qualities. People prefer to shop in a store they are familiar with. Sales levels will increase not only during the special but also throughout the year as a result of people's becoming familiar with the store.

The specials must be advertised to let those people who are not regular customers know about the sale. The main purpose of having the specials is to let more people know about Redwood and Ross which means new customers must be attracted to the store.

If Redwood and Ross follows these recommendations, sales will increase. The advertising strategy should be one part of the entire promotional program Redwood and Ross undertakes. If Redwood and Ross continues its present promotional activities and fits the new advertising strategy into the program, awareness will increase, which will lead to greater sales in the long run.

NOTE

1. Belden Associates, College Newspaper Audience (Champaign: Illini Publishing Company, 1985), 10.

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Appendix A Clothing Store Questionnaire

The following questionnaire is designed to determine your attitudes and habits concerning shopping for men's clothing. We hope the results of this survey will enable us to better serve your shopping needs. Please listen to the following questions and choose the answer that reflects your feelings. All responses will be kept confidential. Thank you!

1. Have you shopped in this area for men's clothing in the past year? ο Yes ο No Skip to question 7 if the answer is "No."

2. On average, how many times a month do you buy men's clothing? ο less than once a month ο 1-3 times a month ο more than 3 times a month

3. Please indicate the extent you agree or disagree with each of the following statements by placing an X in the appropriate box. Agree Neutral Disagree I feel most comfortable in jeans. ο ο ο I like someone's opinion when I shop. ο ο ο This area doesn't have enough stores carrying the style of clothes I like. ο ο ο I like to wear the most recent fashions. ο ο ο Clothing prices are too high. ο ο ο Clothes are not important to me. ο ο ο

4. When selecting a clothing store, how important is each of these factors to you? Place an X in the appropriate box.

Very Not Important Important Important Atmosphere ο ο ο Service (personnel) ο ο ο Style of clothing ο ο ο Quality of clothing ο ο ο Price ο ο ο Location of store ο ο ο Advertising ο ο ο

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5. Do you prefer to shop for clothing (check one that applies) ο near campus ο at a shopping center ο in your home town ο other (specify)

6. When buying men's clothing, do you prefer to go (check one that applies) ο alone ο with a parent ο with a male friend ο with a female friend ο other (specify)

7. Have you ever heard of Redwood and Ross clothing stores? ο Yes ο No

8. Have you been in Redwood and Ross in the past year? ο Yes ο No If yes, which store(s) have you been in?

9. Have you bought clothing from Redwood and Ross in the past year? ο Yes ο No

10. How would you rate Redwood and Ross on the following characteristics? Place an X in the appropriate box. Excellent Average Poor Perception Product quality ο ο ο ο Product style ο ο ο ο Location of store ο ο ο ο Service (personnel) ο ο ο ο Advertising ο ο ο ο Price ο ο ο ο

11. Now, I would like to ask you some questions about yourself. What year in school are you?

ο Freshman ο Sophomore ο Junior ο Senior ο Other

12. Do you now belong to a fraternity? ο Yes ο No

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Any comments about this questionnaire or the topic of men's clothing would be appreciated.

THANK YOU FOR YOUR COOPERATION!!!!

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Appendix B Tally of Responses to Questionnaire

(Note: "Adjusted Frequency" recalculates percentages after eliminating any blank cells or missing answers.)

Absolute Relative Adjusted Freq. Freq. % Freq. %

Q1: Yes 81 71.7 71.7 No 32 28.3 28.3 Total 113 100.0 100.0

Q2: How many times? Less than once 53 46.9 65.4 1-3 26 23.0 32.1 More than once 2 1.8 2.5 Blank 32 28.3 Missing Total 113 100.0 100.0

Q3a: Jeans Disagree 13 11.5 16.0 Neither 18 15.9 22.2 Agree 50 44.2 61.7 Blank 32 28.3 Missing Total 113 100.0 100.0

Q3b: Someone's opinion Disagree 15 13.3 18.5 Neither 18 15.9 22.2 Agree 48 42.5 59.3 Blank 32 28.3 Missing Total 113 100.0 100.0

Q3c: Number of stores Disagree 18 15.9 22.2 Neither 24 21.1 29.6 Agree 39 34.5 48.1 Blank 32 28.3 Missing Total 113 100.0 100.0

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Q3d: Recent fashions

Disagree 26 23.0 32.1 Neither 30 26.5 37.0 Agree 25 22.1 30.9 Blank 32 28.3 Missing Total 113 100.0 100.0

Q3e: Prices Disagree 3 2.7 3.7 Neither 19 16.8 23.5 Agree 59 52.2 72.8 Blank 32 28.3 Missing Total 113 100.0 100.0

Q3f: Importance Disagree 58 51.3 71.6 Neither 19 16.8 23.5 Agree 4 3.5 4.9 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4a: Atmosphere Very Important 10 8.8 12.3 Important 43 38.1 53.1 Not Important 28 24.8 34.6 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4b: Service Very Important 20 17.7 24.7 Important 45 39.8 55.6 Not Important 16 14.2 19.8 Blank 32 28.3 Missing Total 113 00.0 100.0

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Q4c: Style Very Important 54 47.8 66.7 Important 25 22.1 30.9 Not Important 2 1.8 2.5 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4d: Quality Very Important 59 52.2 72.8 Important 21 18.6 25.9 Not Important 1 .9 1.2 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4e: Price Very Important 32 28.3 39.5 Important 47 41.6 58.0 Not Important 2 1.8 2.5 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4f: Location Very Important 3 2.7 3.7 Important 34 30.1 42.0 Not Important 44 38.9 54.3 Blank 32 28.3 Missing Total 113 100.0 100.0

Q4g: Advertising Very Important 1 .9 1.2 Important 21 18.6 25.9 Not Important 59 52.2 72.8 Blank 32 28.3 Missing Total 113 100.0 100.0

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Q5: Prefer to shop at? Campus 12 10.6 14.8 Shopping Center 28 24.8 34.6 Hometown 37 32.7 45.7 Other 4 3.5 4.9 Blank 32 28.3 Missing Total 113 100.0 100.0

Q6: Go with whom? Alone 23 20.4 28.4 Parent 3 2.7 3.7 Male friend 14 12.4 17.3 Female friend 37 32.7 45.7 Other 4 3.5 4.9 Blank 32 28.3 Missing Total 113 100.0 100.0

Q7: Heard of R & R? Yes 80 70.8 70.8 No 33 29.2 29.2 Total 113 100.0 100.0

Q8a: Been to R & R? Yes 49 43.4 43.4 No 64 56.6 56.6 Total 113 100.0 100.0

Q8b: Been to Campus store 15 30.6 30.6 Mall store 34 69.4 Total 49 100.0 100.0

Q9: Bought from R & R Yes 24 21.2 21.2 No 89 78.8 78.8 Total 113 100.0 100.0

QlOa: Quality Excellent 42 37.2 37.2 Average 15 13.3 13.3 Poor 2 1.8 1.8 No perception 54 47.8 47.8 Total 113 100.0 100.0

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QlOb: Style Excellent 39 34.5 34.5 Average 15 13.3 13.3 Poor 6 5.3 5.3 No perception 53 46.9 46.9 Total 113 100.0 100.0

QlOc: Location Excellent 47 41.6 41.6 Average 16 14.2 14.2 Poor 1 .9 .9 No perception 49 43.4 43.4 Total 113 100.0 100.0

QlOd: Service Excellent 16 14.2 14.2 Average 33 29.2 29.2 Poor 3 2.7 2.7 No perception 61 54.0 54.0 Total 113 100.0 100.0

QlOe: Advertising Excellent 6 5.3 5.3 Average 25 22.1 22.1 Poor 14 12.4 12.4 No perception 68 60.2 60.2 Total 113 100.0 100.0

QlOf: Price Low 1 .9 .9 Average 26 23.0 23.0 High 31 27.4 27.4 No perception 55 48.7 48.7 Total 113 100.0 100.0

Qll: Year in school Freshman 30 26.5 26.5 Sophomore 28 24.8 24.8 Junior 33 29.2 29.2 Senior 22 19.5 19.5 Total 113 100.0 100.0

Ql2: Fraternity Yes 62 54.9 54.9 No 51 45.1 45.1 Total 113 100.0 100.0

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Appendix C Responses to Open-Ended Question

"At times, guys are afraid of wearing good clothes for fear of being made fun of."

"I wear casual clothes to class."

"I don't like the style of clothes [at Redwood and Ross]."

"I don't like getting dressed up too much. I mainly only wear jeans and sweaters."

"I shop at home."

"I prefer to buy my clothes in Springfield from stores I'm familiar with."

"I would like to see you [Redwood and Ross] stock reasonably priced shirts for school wear."

"Most of the stores around this area lack that certain cosmopolitan atmosphere conducive to quality shopping."

"Personnel are snobs."

"There is just too much variety in clothes that one can never have everything one wants."

"We need more clothing stores out here and with good quality."

"Bring the prices down a bit and you'll see me much more often! I like buying clothes [nice clothes] and would do so more often if it was affordable. Remember, students are on a limited budget."

"I really enjoy nice clothes, but seldom can afford them."

"I work at [a competing clothing store]."

"Mostly wear punk! Sorry! "

"There is not the same selection available for men as for women. Therefore, the greatest majority of my purchases are made in the St. Louis area."

"Mom buys my clothes."

"Bought my clothes at home in Denver."

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"I'm not avidly into fashion. Ask me about stereos, cars, or physics."

"Haven't had time [to shop]."

"Bought all my clothing in the suburban shopping areas near my home."

"No money."

"I shop in Chicago."

"I don't have a chance to get off campus too often, so I do most shopping at home where the stores are better."

"Wasn't in the market to buy. Went in with a friend."

"I live in New York. I know where to go there."

"In relation to how much money I have, men's clothing prices are too high."

"If Redwood and Ross would have more sales, then I would shop there more often. Not only for sale items. As it is now, I rarely go in because your prices are too high."

"Tell the University to lower tuition and fees."

"I don't like for them to drag out a bunch of clothes for me to try on. All they want to do is make a sale."