Observation assignment #2

Why Would I Buy? A Lesson on Observation of Various Saipan Businesses

By Kanae Quinn

A Course on Creativity

Assignment #2

Less likely to patron

More likely to patron

Saipan, a US territory, is a tiny island located in the Northern Mariana

Islands. The only industry is tourism which attracts approximately 350,000

visitors per year primarily from Japan, Korea, Russia & Guam. There are only

40,000 residents so many of the stores cater specifically to tourists. I

realized that as a resident, I viewed these stores differently than as a tourist.

Certain elements were more important in determining my desire to patron

the store.

Less likely to patron

More likely to patron

Target Market: Tourist ~ chain store based in Hawaii

• Location, in strip mall, within walking distance to hotels

• Japanese swimsuit contest video on display

• Neat racks of clothes with techno music in the background

• Unfriendly sales person who appeared to be older than the types of suits sold

• INSIGHT: This store sells swimsuits for tourists and the sales person didn’t pay attention to me as I was not her target customer. As such, I will not buy anything there in the future. Her unpleasant attitude changed my future purchase decision.

• HIDDEN OPPORTUNITIES: Local residents would be more inclined to purchase items if the store advertised, offered off season or local discounts, hired a friendly local sales person or offered “Buy 1 get ½ Off 2nd on certain merchandise.

Loco Boutique Women’s Swimwear

Target Market: Tourist & Resident ~ chain store from USA

3 signs posted in English on the door ~ intended for residents. Signage in Japanese, Chinese, Korean would have targeted tourists.

Cramped clothing racks, not in organized system of color or function

Backlit shoe display was too dim and didn’t feature the shoes well

Two salespeople never approached me

INSIGHT: Overall messy store. Didn’t appear to be up to franchise standards. Salespeople were there to collect paychecks, not to sell.

HIDDEN OPPORTUNITIES: Owners should refer to franchise standards to remodel store to be brighter, more inviting like bottom right image.

The Athlete’s Foot Sports shoes, clothing, gear

Target Market: Tourist & Resident

Located in the back of Athlete’s Foot. Didn’t realize that it was a separate store as there is no outside signage.

It’s even messier and disorganized than the Athlete’s Foot. There was junk on tables, walls and even a Sauna Suit priced at $39 (vs. $18.77 @ Walmart)

INSIGHT: It looked more like a garage sale with lots of equipment, even a $1800 pool table in the back. There is nothing special about the store.

HIDDEN OPPORTUNITIES: This store was truly hidden as I didn’t know it existed as a separate entity. They need signage on the front of the building as well as in Athlete’s Foot with an arrow showing customers that there’s a big store in the rear. The layout of the store was awful. It needs someone to re-organize: feature new items in front with sale items in back. They could add a flat screen TV to show some major sports to attract customers.

All Star Sporting Goods Sports & Athletics clothes & gear

Target Market: Tourist & Resident

This store connects to Athlete’s Foot & All Star Sports through an awkward side entrance, not visible from the front.

This is Saipan’s version of a Kmart with souvenirs for tourists, groceries, limited clothing, toiletries, detergent, greeting cards, small bakery.

The aroma from the roast chicken wafted through the air. It made me want to shop for food.

INSIGHT: There’s nothing special about the store but because they sell essential items with decent prices, they will continue to retain customers.

HIDDEN OPPORTUNITIES: Needs facelift to modernize the look with updated displays, signage. They have a good Asian food section where they can hire staff to offer cooking demonstrations to customers using a mixture of local/Asian ingredients to appeal to all markets.

Joeten Hafadai Shopping Center Grocery Store plus Souvenir Shop

Target Market: Resident

This store is the largest office supply store on island and offers much more than just paper, pens and folders.

Aisles are way too narrow and there’s a section of office furniture that customers can’t get to because it’s blocked by boxes and more furniture which poses an OSHA hazard.

INSIGHT: Due to its low prices and minimal competition on island, this store gets by because it sells so much stuff from candy, luggage, toothpaste, batteries, toys.

HIDDEN OPPORTUNITIES: Needs aisle content signage and friendly, helpful staff. They should advertise their weekly specials using social media.

National Office Supply Office Supply, Holiday Decorations, Cleaning Supplies

Target Market: Tourist & Resident

One of three Thai restaurants in a mile radius, but located most conveniently for tourists.

Large garden is underutilized for outdoor dining due to weather and limited seating.

INSIGHT: Great, inexpensive, quality Thai food surpasses cheap décor, plastic bowls, handwritten menu, mediocre service and “hole in the wall” atmosphere.

HIDDEN OPPORTUNITIES: Offer Thai cooking classes for tourists & residents (like Bali). Create social media page to upload lunch buffet information and advertise catering / outdoor banquets.

Spicy Thai Noodle Place Authentic Thai Cuisine

Target Market: Resident

Features tasty, homemade cupcakes in a variety of flavors. Also serves coffee, floats, shakes, ice cream and made-to-order gourmet caramel apples.

Indoor setting is similar to a stateside coffee shop feel with nice décor, background soft jazz music, aromatic coffee smell. This is the nicest shop out of the seven.

INSIGHT: Need to expand to tourist market to grow business. Create “cupcakes to go” with Saipan packaging with a mix of 4 flavors that can be sold at hotel gift shops. Offer promo to patrons of Thai House (another Thai restaurant) which is located nearby.

HIDDEN OPPORTUNITIES: Offer catering menu on coffee tables. Create “Happy Hour” for parents/kids after school pricing. Use social media to introduce new flavors & obtain customer feedback. Use gorgeous outdoor garden as venue for birthday parties/ baby showers.

Sweet Escape Coffee & Cupcakes

My Stores - in order of patronage

1 • Joeten Hafadai Shopping for weekly groceries

2 • National Office Supply for variety of goods from paper, ink, decorations

3 • Spicy Thai Noodle Place for great Thai food (once a month)

4 • Sweet Escape for tasty cupcakes (once a month) as gifts or eat in with friends

5 • The Athlete’s Foot – never purchased anything but may someday buy a gift

6 • All Star Sporting Goods – never purchased anything but may buy golf gear someday

7 • Loco Boutique – never purchased anything but won’t return due to rude sales person

Tourist’s Stores - in order of patronage

1 • Joeten Hafadai Shopping for large selection of souvenirs, food, toiletries

2 • Loco Boutique for swimwear in Asian sizes, perfect for the beach and pool

3 • The Athlete’s Foot – American brands like Nike, Crocs, Reebok at reasonable prices

4 • Spicy Thai – convenient, good Thai cuisine within walking distance to hotels

5 • All Star Sporting Goods – large range of golf supplies for tourists

6 • Sweet Escapes – great coffee shop, but poor location and no tourist ads

7 • National Office Supply – too far for tourists offering unnecessary merchandise

Purchasing choices are reflected not only by an individual’s tastes,

but function & location play an integral role. I choose to regularly

buy from certain stores because they offer a basic staple I need or

want. The tourist’s main draw is to purchase something she desires,

located in a place that is easily accessible.

The décor, ambience, pricing were secondary factors. The tourist

and I happen to choose the Joeten Hafadai Shopping Center as our

primary store because it caters to both residents and visitors,

offering groceries and souvenirs in one convenient location. If

Joeten were located a mile south or north, it would not be

frequented by the tourists.

Our second choices vastly differ as an expensive swimsuit ranks

low on my needs list, especially since the salesperson was

unfriendly. To a Japanese visitor, the salesperson may have been

much warmer and offered to assist with sizes and styles. A swimsuit

is something that is useful when visiting a tropical island, especially

with the favorable dollar-yen exchange rate. As a businessperson, I

know that this particular store’s sales are quite good so their large

inventory and styles are attractive.