It signifies the on-site design and physical layout of a retail store, which shapes consumer’s in-store journey. Atmospherics is an important marketing decision for retailer because it affects how the value is delivered to the target market. Successful retail atmospherics are consistent with its targeting and positioning strategy, increase spending level and generate more revenue. For example, IKEA (Taiwan) offers retail atmospherics appealing to each of its target markets.
| Value proposition[1] | “to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them” | ||||
| What to convey | a wide range of well-designed, functional home furnishing products | as many people as possible will be able to afford them | a better everyday life for the many people | ||
| Target
market |
furniture customers | customers looking for a particular item | DIY-minded customers | grocery customers | café customers |
| How IKEA does with the atmosphere | A loop walking past every real rooms, toilets, and kitchens furnished with IKEA products | Short-cut between areas and to cashier | Warehouse featuring self-pick-up area | A separate supermarket after furniture cashier | Short-cut to café where Swedish food and beverage are served |
| Result | Easy shopping environment, higher spending level; more items bought; higher loyalty | Efficient shopping experience; higher frequency and thus, loyalty | More items bought because customers put small items in cart before arriving at the warehouse | Higher revenue from frozen item, snack, and bottle drinks | Higher frequency and restaurant revenue |
[1] https://www.ikea.com/in/en/this-is-ikea/ikea-values-pubde9f0571