Retail Experience - Fairprice Xtra Singapore

RETAIL

EXPERIENCEFAIRPRICE XTRA

PRIMARY RESEARCH

64.5

55%

16.5

14%

25.5

22%

10

9%

Observation Hours

General

Observations

Primary Data

Collection

General Mapping

Time

Detailed Process

mapping

AGENDA

Summary of observations

Target Consumer

Priority of Issues

Process mapping

Scope

Solutions

WHY FAIRPRICE

Over 400 essential products

priced lower than competitors

LinkPoints Loyalty Program

WHY FAIRPRICE

Has over 50% market share, 240 sale outlets

(Source: Fifth ISO Chairs’ Conference International Conference Center Geneva)

WHY FAIRPRICE XTRA

WHY FAIRPRICE XTRA

35.25 min

145152.1 min

327

Total Checkout Time

(weekday)

Items bought

Supermarket

XTRA hypermarket

CATEGORIZING ISSUES

IssuesBefore Entry

Carriers

In the Store

Checkout Counter

After

Exit

0

2

4

6

8

10

12

14

1 2 3 4 5 6

Fre

qu

en

cy

Income Range

MONTHLY INCOME

MONTHLY

INCOME

TARGET CONSUMER

1 = < $2000

2 = $2000-$3000

3 = $3001-$4000

4 = $4001-$5000

5 = $5001-$6000

6 = > $6000

Primary

Secondary

Based on interview of total 30 people at FairPrice Serangoon and Hougang

0

2

4

6

8

10

12

14

5 10 15 20 25 30 35 40 45

Fre

qu

en

cy

Number of minutes

DISTANCE FROM MARKET

(in terms of minutes)

TARGET CONSUMER

Time in

Minutes

Majority living within 5 minutes from market


TARGET CONSUMER

4 Visits monthly i.e. Once every week

VISITS PER MONTH


7

1

5

0

17

7

14

3

0

6

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5

FR

EQ

UEN

CY

TRANSPORTATION

TRANSPORT TO MARKET

TRANSPORT FROM

MARKET

TARGET CONSUMER

1 = Car

2 = Cab(From Store)

3 = Bus

4 = MRT

5 = Walking(To Store)

MODE OF TRANSPORTBased on interview of total 30 people at FairPrice Serangoon and Hougang

CONSUMER PROFILE

Jojo & Jason Puah

Pragmatic

Strict schedules, well-organized

Value savings but willing to

spend on quality long term

investment

Time saving & cost-effectiveness

Anna Cheng

o Sourcing high-quality food

o Fresh fruits and vegetables

staples of her shopping trips

o Travels the distance for best fresh

food outlet

o Healthy & fresh solutions

CONSUMER PROFILE

Sandra & John Lee

Tech enthusiasts

Will pay for the latest gadgets

Make an impact, still looking for

practicality

Stylish convenience

Ong-Si-Hui

o Being independent

o Active lifestyle

o Doing groceries on her own

every other Thursday

o Comfort and usability

PROCESS MAPPING

Total Process map of a person chosen at Random at FairPrice Xtra Serangoon

PROCESS MAPPING

Total Process map of a person chosen at Random at FairPrice Xtra Ang Mo Kio

PROCESS MAPPING

Total Process map of a person chosen at Random at FairPrice Xtra Hougang

PROCESS MAPPING

ISSUES IDENTIFIED

Time taken from supermarket exit to

parking/taxi stand/bus stand is longer

than any other process.

Queuing time is longer than the checkout

time.

Moving around aisles looking for products

is time taking.

PROCESS MAPPING

08 min – 3 people

10 min – 3 people

14 min – 3 people

Total time taken for 15 observations : 2 hours

PROCESS MAPPING

4 people waited

for 7 min


PROCESS MAPPING

6 people waited

for 6 min


PROCESS MAPPING

6 people waited

for 4 min


PRIORITY OF ISSUES

PRIORITY OF ISSUES

PRIMARY ISSUE

To increase efficiency of checkout by reducing long

queues/eliminating current payment system.

PRIORITY OF ISSUES

SECONDARY ISSUE

To design a solution that reduces difficulty of

carrying products home after purchase

PRIORITY OF ISSUES

TERTIARY ISSUES

To speed up the staff process of restocking products.

To improve the navigation and aisle labels for

consumers

SCOPE

What is Possible

RFID system

NFC technology

Portable/collapsible carrier

Improvement of home delivery

Restocking shelf support

Bag deposited counter

SCOPE

What is not Possible

Drivable trolleys

Self scanning

Parking space layout

Cash Payment

CARRIER: THE COMPETITION

COMPETITOR 1

Strengths

Easier to stroll around

Can use as basket or trolley

- Weaknesses

- Too deep

- Not durable

Cost = $45 SGD (Single piece)


COMPETITOR 2

Strengths

Carries 2 baskets at a time

Lighter then shopping trolley

Weaknesses

- trolley would be useless without baskets



COMPETITOR 3

Strengths Affordable

Pull shopping items home

Weaknesses

-not durable

-hard to pull up stairs


CARRIER: OUR CONCEPTS

CONCEPT 1

Strengths Fold-able

2 in 1

Light weight material

Weaknesses

- Not durable

Estimated Cost = $170 SGD


CONCEPT 2

Strengths For elderly Can be metal walker and

shopping trolley Basket can be taken out

Has 4 wheels easy to navigate

Weaknesses-cannot store a lot of things

Estimated Cost - $65 SGD


CONCEPT 3

Strengths Can store lots of things

Unique design

Weaknesses

-bulky to push home

-expensive



CONCEPT 4

Strengths- Don’t have to push home- Unique design- Durable

Weaknesses- cannot carry a lot of things- expensive- Use electric

Estimated Cost = $7,000 SGD


CONCEPT 5

Strengths- Retractable

- Multi purpose

- Affordable

Weaknesses

- weak joints



CONCEPT 6

Strengths

- Durable

- Retractable basket

Weaknesses

- Expensive

- Uses electricity

Estimated Cost = $6,200 SGD


Necessity ___________ Luxury

Bike

Push Home

TrolleyElderly Trolley Multi Purpose Retractable

basketSegwaytrolley

CARRIER: QUALITY VS VALUE

Low Value

High Quality

High Value

Low Quality

RFID/NFC: WHAT IS IT?

IBM is keenly working with RFID/NFC

Solutions for the Supermarket

They have teamed up with

METROGROUP, one of the biggest

international retailers in the world.

Their Proposal for 2015:

RFID/NFC: WHAT’S OUT THERE

METRO STORE

StrengthsNFC Mobile Shopping for consumers, RFID for inventory.

No need to scan products at checkout aisle

WeaknessesRequires cellphone.

Barcode scanning

Self Checkout kiosks

Approx Cost: $20,000

RFID/NFC: WHAT’S OUT THERE

SHELFX

StrengthsNFC Card Shopping for consumers, RFID for inventory.

No lines at all

Optional App to track purchases.

WeaknessesCurrently in testing.

Approx Cost: $40,000

RFID/NFC: ANSWERING ISSUES

CAN I SPY ON PEOPLE WHO BUY RFID PRODUCTS?

Kill code ensures RFID cannot be scanned after

checkout.

ISN’T IT TOO EXPENSIVE TO USE RFID TAGS?

An RFID tag currently costs minimum $0.035 SGD.

WHO KEEPS THE SHOPPER PURCHASE DATA?

The supermarket retains rights to all the purchase

data. They already keep track of it through orders.

RFID/NFC: BUSINESS PLAN

Innovative

business designs

that sharpen focus

and accelerate

growth

Integrated, end-to-end business processes based on

real-time customer data.

An IT operating

environment

optimized for

flexibility and

resilience

On DemandOperating

Environment

BusinessTransformation

RFID/NFC: OUR PROPOSAL

Integrating at least 2 counters having an extension of ShelfX technology in FairPrice Xtra.

A new and simplified system of Shopping

NO CASHIERS

NO QUEUES

NO SCANNING

RFID/NFC: COST VS FUNCTION

Low Functionality

High Cost

High Functionality

Low Cost

OVERALL SOLUTIONS

Less Prosperous

DIFM

MY WAY

FROM ME TO YOU

SELL IT TO ME

I’M IN YOUR HANDS

Most prosperous

DIY

RFID

Portable

Carrier

NFC

Food Counter

Takeaway

Carrier

Bag Counter

Improved

Delivery

Improved

restocking supply

BUDGET

PROTOTYPING MATERIALMATERIALS: 90$ - 180$TOOLS: 10$ - 30$

TOTAL: 100$ - 210$

(35% - 44% of the budget)

FINAL SHELF: 20$ - 30$ FINAL MODELS: 70$ - 100$PRINTING STICKERS: 20$ - 25$PRINTING CASH CARDS: 10$ - 15$

PRINTING BOARDS: 50$ - 55$PRINTING BOOKS: 30$ - 50$

TOTAL: 200$ - 275$(65% - 56% of the budget)

TOTAL BUDGET: 300$ - 485$

485$35$

FOR GRADUATION

Three A1(84x60cm) boards summarizing our

concept.

Two Booklets showing a detailed process of

our research

One Video animation that will explain the

RFID/NFC process.

Design

Retail Experience - Fairprice Xtra Singapore