CHICAGO - Don Goodman, former president and CEO of Rose Auto Stores, Hialeah, FL, was the keynote speaker at a September seminar sponsored by Lindsey-Kaufman Executive Seminars and Aftermarket Business. The theme of the seminar was "Partnering for Profits. Why & How Retailers and Vendors Must Integrate Marketing and Merchandising."

Goodman told a crowd of industry people that customer satisfaction is "obviously the key to our success." He said retailers must understand their customers' expectations and use their store design, displays and in-store merchandising to define and focus on those expectations.

"The more consistently you do that the higher your level of customer satisfaction," Goodman said.

If retailers aren't sure what customers' satisfactions are, Goodman said they should ask them. "If you don't like the answers, ask them what needs to be changed," he added.

Goodman said retailers who work with vendors can create a more effective selling environment for the retailer, more product sales for both and a shift from the "What-will-you-do-for-me-this-quarter" mentality which benefits the vendor.

Goodman also stressed that retailers must provide quality products.

"If there was ever a problem begging for a synergistic, partnered approach, it is providing quality in today's retail environment," he said.

The Changing Customer - Harold Parkison, Jr., vice president of Kmart automotive service and accessories, told attendees that today's changing consumer is redefining the worldwide shopping experience.

"Being a smart, value-oriented shopper is back in style," Parkison said. "The '90s signal a time when less is more."

Parkison said consumer expectations are continuously increasing. They are frugal, yet they want quality products and services, as well as convenience.

He pointed out that consumers are willing to select the retailer who can best serve its needs, noting that store loyalty is declining.

Parkison said that Kmart is committed to building strategic partnerships with suppliers. He said retailers can't be successful without supplier partnerships and that retailer/supplier partnerships help ensure quality.

"Strategic partners provide critical information and are an integral part of our merchandise flow process," Parkison said, adding that partnerships are very important to Kmart's Automotive Service and Accessories.

He announced that Kmart is getting in the quick-lube business, and cited that the retailer's recent agreement with Texaco is a strong example of a partnership. Parkison said Kmart will not pretend to know everything when it comes to the quick-lube business and the retailer will rely on direction from Texaco.

"(Texaco) has more experience with quick-lube operations," he said.

In conclusion, Parkison stated that strategic partnerships are in the best interest of retailers, suppliers and most importantly, consumers.

In-Store Marketing - Stephen Alexander, president of Automotive In-Store Marketing, Pittsburgh, said what was referred to as "point-of-purchase" has evolved into "in-store marketing."

Alexander said what happens in-store can serve to enhance brand name, help to build brand image and assist retailers in capitalizing on established brand recognition. He stated that 64.9 percent of all purchases are in-store buying decisions. In the aftermarket, he said studies show that an average of 60% of consumers who make an initial primary purchase will make an unplanned impulse purchase, solely on the basis of an in-store merchandising stimulus.

"In-store marketing involves the interaction between three very distinct groups who come together at the point of sale: the retailer, the consumer and the manufacturer," Alexander said.

Alexander outlined the process of developing a sound strategic in-store marketing plan. He said a strategic direction is developed from an analysis of brand, industry, trade and consumer data. A customer-designed research project is then developed to define in-store marketing realities and clarify shopper perceptions and the in-store decision-making process.

Alexander pointed out that the research phase culminates in the development of creative brand enhancing in-store marketing concepts. He said the concepts should be based upon sound business judgments and supported by clear marketing rationales and selling strategies.

Simple But Powerful - Retailers looking for an attractive store design would be wise to keep it simple, said Greg Kolligian, principal and managing director of SelameDesign, Boston.

"Don't think as an artist," Kolligan said. "Think as a contractor. Make a statement and stand for something."

He used the following example: SelameDesign helped The Pep Boys with its latest store design. For starters, Kolligan said it was important to give Pep Boys' founders Manny, Moe and Jack a new identify by making their caricature look more dignified.

"They shouldn't be used as cartoon characters," Kolligan said. "They were the founders of the company. They should be treated with a little dignity."

Overall, Kolligan said it was important to bring Pep Boys' store environment into the '90s and beyond. The Pep Boys signature was "cleaned up." It was italicized and a red pennant was placed above it.

Stores received planograms. Kolligan said the idea was to get all interior signs to conform to the exterior signature. The service department and the retail floor were given identities, but they were not separate identities. Kolligian said it was important to utilize cross-selling techniques between the two departments.

Making It Work - Space management is a science that has come into its own in the past two years, said Ted Gladson, president of Gladson & Associates, Lisle, IL.

Gladson has developed electronic space management programs for manufacturers, and chain and independent retailers, among others. He said a properly implemented space management system acts as a traffic cop for a store.

A proper system begins with a database of images and dimensions of all the products planned for display on a shelving unit. The database must be accurate and consistent. A retailer can design a database or purchase an existing one.

A retailer building its own database must purchase personal computers, software and video-capture equipment for photographic output. Gladson said a retailer can invest as much as $150,000 in its first year with such a project. There are additional costs, such as maintenance and training of personnel.

The most economical way to create planograms through space management is to acquire an existing database, Gladson pointed out. When it is acquired, scanner data needs to be analyzed with software to determine a product's market share, select a shelf position and assign a percent of shelf space.

A challenge that retailers face today is chain distinction. Gladson said a chain can achieve that through signature merchandising, a tactic that prevents a retailer's displays from looking generic. Overall, Gladson stated that space management is about being pro-active, not reactive.