Running head: Kenyon Stores and the Balanced Scorecard

Kenyon Stores and the Balanced Scorecard

A large clothing retailer, Kenyon Stores, is working on determining who the customers that frequent their stores are and developing a strategy to keep them happy and returning. In an effort to develop their strategy, Kenyon Stores determined who their core shoppers would be. The shopper that they pictured was female, educated with a college degree, works full-time in a

Kenyon Stores and the Balanced Scorecard

professional position. Their ideal shopper is also confident and fashionable and is typically 20 to 40 years old. Kenyon Stores made sure to reach out to their target customers with advertisements as well as promotions that where held inside the Kenyon stores. Doing this enabled Kenyon to reach out to current, as well as future customers that could picture themselves purchasing and wearing the clothing sold by Kenyon Stores. Kenyon was also able to reach a population of potential customers that envisioned themselves having a certain image that Kenyon could help them attain (Kaplan & Atkinson, 1998). When Kenyon began the process of determining their target customers, Kenyon also developed a strategy, which included concepts such as increasing the amount of articles in a womans wardrobe that come from Kenyon Stores and they wanted to do this by creating customers who return to Kenyon for most, if not all of their clothing needs. Kenyon also understands that in order to attain the position Kenyon must create an environment that customers would enjoy shopping in and would want to return to. Kenyon also knows that their stores would need to carry merchandise that the customer would want to wear now but could also wear as their careers progressed. Based on Kenyons strategy of being the store that their core shoppers rely on for their clothing needs, Kenyon developed the following customer focused measures: attributes of the products, relationships with the customers and the brand image of the Kenyon Stores chain. The product attributes that Kenyon Stores identified that relate to consumer satisfaction includes merchandise that is priced in accordance with a range that the customer is comfortable with and is willing to pay. Another attribute of the merchandise is its quality. The consumers of Kenyons core demographic are well-informed shoppers and want the most for their money.

Kenyon Stores and the Balanced Scorecard

Finally, in addition to monitoring price and quality, Kenyon Stores need to stay on top of current fashion trends. The women in Kenyons target group are also likely to purchase fashion magazines and are on top of the latest fashion trends. Kenyon has a much greater likelihood of developing customer loyalty if their stores carried good quality items at a reasonable price for fashions that are current with todays trends and fit the consumers life styles. In addition to the attributes of the products that Kenyon Stores carried, it is also important for Kenyon Stores to develop a relationship with its customers so that the shopping experience that they have in a Kenyon store is enjoyable and one that they will want to repeat (Kang, 2008). This can be achieved by having bright and clean stores that are well stocked and easy to navigate. The sales associates of Kenyon Stores have to be friendly, approachable and knowledgeable but should be careful not to hover over the consumer creating an awkward feeling. Additionally, Kenyon needs to be clear with its prices and its sales promotions. Not doing so would only frustrate the consumer and create an effect that is opposite than what Kenyon wants to accomplish. Kenyon could also cause damage to the reputation of their stores by adding restrictions to the sales promotions or by doing a bait and switch with the marketing materials and the products that are actually available in the stores. Finally, Kenyon Stores also needs to be conscience of itself and the image that its own brand projects. Kenyon put a great deal of effort into determining who their ideal shopper was. Equally important is the ideal Kenyon store. To keep the loyalty of their ideal shopper, Kenyon Stores must work to acquire a significant amount of the market share of the key items that their ideal shopper wants and cannot find anywhere else. By controlling a significant portion of the market, Kenyon can solidify being the number one choice for their ideal shopper.

Kenyon Stores and the Balanced Scorecard

In addition to the customer perspective, Kenyon also developed measures by which their internal process could be observed. The measures for their internal processes included fashion leadership and to be a leader in the relationship that Kenyon Stores had with their venders and to be mindful of where and how they obtain their sources from. Kenyon also wanted to ensure that the shopper would enjoy their time in a Kenyon store. To be a leader in fashion, Kenyon would have to work to ensure that they have an inside edge as to what is currently fashionable or is about to be fashionable. By staying on top of current and immerging trends, Kenyon could see to it that their stores where the first to carry the latest items. Kenyon would be able to track their success with the merchandise that they selected by monitoring and recording the sales figures, Kenyon could determine if their efforts were successful and if they are on top of the trends. Being on top of the latest trends would only be possible with the right sources. Kenyon would need to work closely, and develop a relationship with its vendors to ensure that their stores receive the merchandise in a timely manner (Kaplan & Norton, 2002). The vendors would need to notify Kenyon of any issues or delays that would hinder getting the newest products on the shelves before anyone else did. Kenyon would also have work with the vendors to keep prices in line so that their stores resell the item at a price that their core shopper would be willing to pay. If the vendor price gets too high, it would reduce the profit that Kenyon would make. Passing the increase in price on to the customer could be risky in that it could not only lose the one sale but the shopper could decide to look elsewhere for their other needs. Slight increase in prices might be overlooked if Kenyon is able to provide its customers with a shopping experience that they enjoy. An enjoyable experience could lead to return visits as well as recommending the store to their friends and coworkers. Carrying the latest items are

Kenyon Stores and the Balanced Scorecard

not the only way to keep customers happy. As stated above, Kenyon also need to have clean, bright stores that are easy to shop in with signage that is easy to understand. The sales staff is equally important, as they should also be available and friendly. One way that companies see to it that all of their stores are following the companys guidelines is with the use of secret shoppers or people that pose as shopper and report their findings back to the companys management. A secret shopper would provide insight as to a stores operations better than any visit from a companys headquarters as the staff of the store are unaware as to when secret shopper is in the store. It is a secret shoppers report that gives insight as what their core shopper experiences inside one of Kenyons stores. Kenyon can achieve their goals of being the retailor that their core customer turns to and their goal of creating the perfect shopping experience. By focusing on the needs of the customer as well as monitoring their own internal operations, Kenyon Stores could attain their goals of long term prosperity.

References:

Kenyon Stores and the Balanced Scorecard

Kang, G. (2008). Balanced scorecards: an experimental study of the effects of linking the evaluators' and subordinates' balanced scorecards on performance evaluations. (Doctoral dissertation). http://digital.library.unt.edu/ark:/67531/metadc9767/m1/1/high_res_d/dissertation.pdf Kaplan, R., & Atkinson, A. (1998). Advanced management accounting. (3 ed.). Upper Saddle River: Prentice Hall. Kaplan , R., & Norton, D. (2002, December 23). Partnering and the balanced scorecard. Retrieved from http://hbswk.hbs.edu/cgi-bin/print/3231.html