THE RUN FOR "SUCCESS" [1] ,
hard work to win the heart of Cali
ORIGINS In 1949 the commerce of the city of Medellin was concentrated in the center historical and busiest area was between the railway station and market place, and called the National Palace, a building where agglutinated judicial offices. In this area were located warehouses and stores that served both the people of Medellín and the traders of the peoples of Antioquia which supplied goods these establishments.
In this sector of the city opened Almacenes Exito, a Saturday in March of that year. It was a small local 4X4 meters located behind the National Palace. The business was established by a family company with a capital of 15,000 pesos, so that each partner contributed the sum of 5,000 pesos.
The warehouse was opened adjacent to one of the most recognized in the industry, which had to pay a bonus of 4,800 pesos, or nearly a third of the capital. The monthly lease fee is agreed and furniture 88 pesos to 150 pesos. Initially the store was dedicated to the sale of scraps, some clothing Popular related products and apparel and textile industry. The first assortment of goods is the amount invested in 4519 dollars.
Some of the first domestic suppliers were Fabrics, Baratillo Colossal Cash León, among others, one of which consigned wool blankets and cotton quilts were displayed at one side of the warehouse, to create in its clientele sensation of having abundant supply of goods. It is interesting to note from the outset sought suppliers. Months later he initiated contacts with the city of Barranquilla and silks and began arriving in the city courts. It is clear
Accounting notebook first year of work, the busiest days were Monday and Tuesday, as buyers came to stock up people to serve customers on weekends, which were market days in most populations. Wednesday was relatively good, it was the day he won fair held in Medellin and many traders took the opportunity to make their purchases of cattle and purchases for their stores. Saturdays were the days of least motion. The schedule was from 7:00 am to 7:00 pm The early efforts were initiated to serve customers coming from the people and should return the same day to their place of origin. Desde sus comienzos, el área de influencia del almacén ha sido regional, pues desde un principio, buena parte de su clientela proviene de poblaciones ubicadas a varias horas por carretera de Medellín. Otros importantes clientes iniciales fueron los denominados “pacotilleros” que con su maleta iban de pueblo en pueblo y de casa en casa vendiendo cortes de telas, hilos, botones y todo lo necesario para la confección casera.
Transcurrido un año de la apertura del almacén, los negocios prosperaron y los socios decidieron formalizar la sociedad. El 24 de marzo de 1950 se constituyó formalmente la firma Gustavo y Cia. Ltda. Almacenes Éxito. Es interesante observar que desde un principio se habla de “almacenes”. Despite working in a small space, since the founders were aware that soon he would be insufficient and that the name recorded in the plural: Almacenes Exito.
The store grew quickly and there was no need for goods on consignment, on the contrary lacked space for more shelving for fabric. Since its inception the company employed instilled in their two principles to achieve compliance with business objectives, "Do not trust and buy it to sell well and pay well." This sentence is summarized the philosophy that has guided the company for 50 years: clarity and fulfillment in relationships with suppliers; respect for the customer and their needs, kindness and encouragement to employees. The store was short with the number of customers who visited him, as was the need to expand.
began this process in an adjacent room called "The Branch" The store sales grew in number of employees and especially in the public acceptance of price and quality of service imposed by its founders, little by little spread throughout the block where the store worked mother. But the competition was revamped and other stores incorporating new marketing techniques, for this reason the partners were forced to travel and to bring new ideas and trends that remain at the forefront of the business. THE SELF
In November 1965, opened in the basement of one of the local street store self Alhambra. The system meant a change in corporate culture Almacenes Exito, employees leaving the counter and place the goods available to customers.
In this new business model fears arose that the quality of service, the company's undoubted strength is lost to the impersonality of the merchandise abandoned to their fate on a shelf. Others felt that the opening of the exhibition was an incitement to theft. Despite these fears the system worked like a charm and the clientele was adapted to the new scheme. Thereafter, in the Yellow Pages telephone directory Almacenes Exito disappears from the "fabric" and enter the group of "miscellaneous goods." From this moment the company focuses its efforts on retail sales. EXPANSION
4x4 meters space with the launch of the business became one of 1500 square meters and still insufficient to meet demand. It became necessary to find new premises to continue the expansion of the company. In November 1970, Business Success Center opened in the middle of the building which formerly belonged to the foreign firm Sears. Again, the public welcomed the store and sales exceeded expectations. In 1972 the family business owner consider the incorporation of new members, to promote the visibility of the company and looking for new ideas and oxygenation to the business, this meant valuing the assets of the company. With the growth of the company, in 1975 he decided to transform the character of society Ltd., known from that year as Almacenes Exito SA
In this period and before the overflow of sales growth, the partners decided to open a second center mall located in the Barrio El Poblado, which soon became a center for development of high-income sector, while maintaining its philosophy of offering low prices, superb quality care and excellent services.
opened in 1981 in Envigado fourth store, now 9000 square meters, with the same success as others. Three years later, when the company celebrated its 35 year history, its directives make a momentous decision: quit the Medellín and build a store in the city of Bogotá of 13,000 square meters of sales area and store and 10,000 square feet for stores, 600 parking spaces and 103 points of payment, store which opened on 21 February 1989. In this way and aiming at further expansion, the board is studying the possibility of exploring new markets in other cities.
SUCCESS COMES TO SANTIAGO DE CALI
As planned, the city should continue the expansion of Almacenes Exito was Santiago de Cali. The capital of Valle del Cauca is a major center of western Colombia, near the port of Buenaventura and industrial and commercial empire.
In the construction began in early 1996, major integrated technological, logistical and conceptual allowed to conclude the work with a budget savings of 8% and within the time specified in the schedule. Simultaneously put into operation a large distribution center in the nearby town of Yumbo.
San Fernando's warehouse has a usable area of \u200b\u200b10,000 square feet on one floor and 600 parking spaces, 421 of which are indoors. In this building were incorporated into the latest security techniques such as seismic accelerometer sensor sophisticated electronic releases all emergency exits, smoke alarms, security products and advanced electronic surveillance systems. Also included in the design of the basic criteria of the new store format with large circulation spaces and new sections such as bakery complete new presentation of the section of fruit and vegetables, prepared foods section, bigger and better presence of fish, seafood and frozen section organized by lifestyle apparel, presentation of lines of appliances, books and music.
As had happened with the arrival in Bogotá, in order to reach the new position was not to build a building similar to existing ones, but provide a service equal to or better than he offered in other stores, this involved an enormous effort to train staff in service culture that distinguishes the company. The San Fernando store opened its doors on February 18, 1997 and received immediate public reception that broke all expectations. Thus, the company characterized by excellent customer service, hinted at the human qualities that had stood for 50 years. This business establishment was more successful than expected.
Given the magnificent reception, the board decided to begin studies to build the new plant store in Northern Cali, on land that belonged to the factory Plegacol. As planned work started in November 98 and its opening became a sign of confidence in a city hit by a deep crisis. To Cash Success was proud become one of the largest generators of jobs in the Sultana del Valle during the 90's.
THE EASY WAY IS NOTHING
Despite the excellent results obtained by the chain paisa from their arrival at Valle del Cauca, the policies they knew they would face a giant playing in local supermarket's 14.Este, traditional in the region and was preferred by the Cali due to its affordable prices and excellent range. "In the 14 is from a car to a needle" are comments often heard among the people of the region. It is and has always been considered the supermarket of "all and for all." As of December 1997, before the first success opened its doors in Cali, The 14 enjoyed about 70% of market share amounting to 7'000 million pesos. The remaining 30% is distributed among the smaller chains such as Olympic, Law, and Comfandi Carulla, among others.
DILEMMA
Against this background, Almacenes Exito knew the challenge was not easy and had to apply an appropriate strategy to position itself strongly in the city. The first year of operation, differential and innovative tactics of customer service that marked a milestone in the form of address in supermarkets in the city, the channel reached a not inconsiderable 15% market share, compared with 65% of the 14 and 10% of other supermarkets in Cali. These results
chain managers expected to continue removing a significant portion of market share to its main rival, equal and even surpass it in less than three years. However things were not as expected. After the first year of operation of the store, there was a market survey that measured consumer perceptions and found that the marked success, especially in Cali, failed to create emotional attachment and sense of belonging to the Cali. The store was not perceived as their own, as something they want, which is owned and makes special part of your life. It was simply a business establishment in the city, and this was far from the position that the network wanted to achieve.
this situation and concerned about their image, Almacenes Exito created a local strategy, which spread to other cities and subsequently launched throughout the country. "This at Home" emerged as a way of approaching the Cali community to generate roots and belonging to the brand, just as seeking to generate a greater impact on other cities of Colombia where the chain has a presence.
was necessary to establish an identity brand that customers identify with the company. After several market research studies, clients of Cali, said that what hope of success was that it was "a supermarket as it should be." This refers to an establishment that not only are the products and basic services and good care, but also lead to strong bonds of familiarity that goes beyond simple buying and selling process.
Brand Personality wanted to institutionalize the chain was that of a traditional supermarket, Friendly, Dedicated, Honest, Colombian Workers. For this we wanted a character who meet all the characteristics that should be marked success and who came closest to that profile, according to market research agency that handled campaign advertising was Paola Turbay.
The strategy should be complemented with emotional benefits as familiarity, calm and pleasant experiences in the point of sale, get the customer to enjoy memorable experiences during his visit to the stores. Also special attributes that the business had always told, should be strengthened: Service, quality and variety, offering customers a friendly and respectful to allow them to retain their leadership in the field and a broad portfolio of innovative products and high quality. For this performed retrained staff on duty at all levels, thus ensuring that the essence of the strategy "make the client feel at home", was internalized and appropriated by employees in the first instance, then be transmitted to customers. Upgraded the quality policies and made it easier to process changes of merchandise, not just what they do not comply with quality standards but which does not meet the expectations of the customer.
Together with the above, the mark should make known key values \u200b\u200bsuch as Colombian heritage, social participation and commitment to community, to complement the success of the campaign. Therefore strengthened in product and communication (advertising) the events of Colombia, as institutionalized by the network for the month of July. They also began to advertise all projects support and donations from the Foundation for Success Cali and Valle del Cauca, which annually exceed 1000 million pesos through Goticas Solidarity Program, which provides food and children with limited study resources and financial support to nonprofit institutions like hospitals, schools and foundations that benefit disadvantaged populations.
"This at Home": Success or failure
True Success has made a great effort and invested a considerable sum of money to get close to the heart of Cali, to be recognized especially for its comfort and excellent service. However, according to studies, the 14 is still stronger in range, price and coverage. Which of these attributes can win the battle by taking the first place, managed to generate bonds of familiarity?
Although we can not yet determine the success or failure of the campaign, the truth is that the dilemma of this case forced the chain to work harder for the city, to play an important role in social and economic development of the same , likewise stiff competition contested by hypermarkets in Cali, makes every day to generate more and better services, in the end only result in consumer needs Cali.
hard work to win the heart of Cali
ORIGINS In 1949 the commerce of the city of Medellin was concentrated in the center historical and busiest area was between the railway station and market place, and called the National Palace, a building where agglutinated judicial offices. In this area were located warehouses and stores that served both the people of Medellín and the traders of the peoples of Antioquia which supplied goods these establishments.
In this sector of the city opened Almacenes Exito, a Saturday in March of that year. It was a small local 4X4 meters located behind the National Palace. The business was established by a family company with a capital of 15,000 pesos, so that each partner contributed the sum of 5,000 pesos.
The warehouse was opened adjacent to one of the most recognized in the industry, which had to pay a bonus of 4,800 pesos, or nearly a third of the capital. The monthly lease fee is agreed and furniture 88 pesos to 150 pesos. Initially the store was dedicated to the sale of scraps, some clothing Popular related products and apparel and textile industry. The first assortment of goods is the amount invested in 4519 dollars.
Some of the first domestic suppliers were Fabrics, Baratillo Colossal Cash León, among others, one of which consigned wool blankets and cotton quilts were displayed at one side of the warehouse, to create in its clientele sensation of having abundant supply of goods. It is interesting to note from the outset sought suppliers. Months later he initiated contacts with the city of Barranquilla and silks and began arriving in the city courts. It is clear
Accounting notebook first year of work, the busiest days were Monday and Tuesday, as buyers came to stock up people to serve customers on weekends, which were market days in most populations. Wednesday was relatively good, it was the day he won fair held in Medellin and many traders took the opportunity to make their purchases of cattle and purchases for their stores. Saturdays were the days of least motion. The schedule was from 7:00 am to 7:00 pm The early efforts were initiated to serve customers coming from the people and should return the same day to their place of origin. Desde sus comienzos, el área de influencia del almacén ha sido regional, pues desde un principio, buena parte de su clientela proviene de poblaciones ubicadas a varias horas por carretera de Medellín. Otros importantes clientes iniciales fueron los denominados “pacotilleros” que con su maleta iban de pueblo en pueblo y de casa en casa vendiendo cortes de telas, hilos, botones y todo lo necesario para la confección casera.
Transcurrido un año de la apertura del almacén, los negocios prosperaron y los socios decidieron formalizar la sociedad. El 24 de marzo de 1950 se constituyó formalmente la firma Gustavo y Cia. Ltda. Almacenes Éxito. Es interesante observar que desde un principio se habla de “almacenes”. Despite working in a small space, since the founders were aware that soon he would be insufficient and that the name recorded in the plural: Almacenes Exito.
The store grew quickly and there was no need for goods on consignment, on the contrary lacked space for more shelving for fabric. Since its inception the company employed instilled in their two principles to achieve compliance with business objectives, "Do not trust and buy it to sell well and pay well." This sentence is summarized the philosophy that has guided the company for 50 years: clarity and fulfillment in relationships with suppliers; respect for the customer and their needs, kindness and encouragement to employees. The store was short with the number of customers who visited him, as was the need to expand.
began this process in an adjacent room called "The Branch" The store sales grew in number of employees and especially in the public acceptance of price and quality of service imposed by its founders, little by little spread throughout the block where the store worked mother. But the competition was revamped and other stores incorporating new marketing techniques, for this reason the partners were forced to travel and to bring new ideas and trends that remain at the forefront of the business. THE SELF
In November 1965, opened in the basement of one of the local street store self Alhambra. The system meant a change in corporate culture Almacenes Exito, employees leaving the counter and place the goods available to customers.
In this new business model fears arose that the quality of service, the company's undoubted strength is lost to the impersonality of the merchandise abandoned to their fate on a shelf. Others felt that the opening of the exhibition was an incitement to theft. Despite these fears the system worked like a charm and the clientele was adapted to the new scheme. Thereafter, in the Yellow Pages telephone directory Almacenes Exito disappears from the "fabric" and enter the group of "miscellaneous goods." From this moment the company focuses its efforts on retail sales. EXPANSION
4x4 meters space with the launch of the business became one of 1500 square meters and still insufficient to meet demand. It became necessary to find new premises to continue the expansion of the company. In November 1970, Business Success Center opened in the middle of the building which formerly belonged to the foreign firm Sears. Again, the public welcomed the store and sales exceeded expectations. In 1972 the family business owner consider the incorporation of new members, to promote the visibility of the company and looking for new ideas and oxygenation to the business, this meant valuing the assets of the company. With the growth of the company, in 1975 he decided to transform the character of society Ltd., known from that year as Almacenes Exito SA
In this period and before the overflow of sales growth, the partners decided to open a second center mall located in the Barrio El Poblado, which soon became a center for development of high-income sector, while maintaining its philosophy of offering low prices, superb quality care and excellent services.
opened in 1981 in Envigado fourth store, now 9000 square meters, with the same success as others. Three years later, when the company celebrated its 35 year history, its directives make a momentous decision: quit the Medellín and build a store in the city of Bogotá of 13,000 square meters of sales area and store and 10,000 square feet for stores, 600 parking spaces and 103 points of payment, store which opened on 21 February 1989. In this way and aiming at further expansion, the board is studying the possibility of exploring new markets in other cities.
SUCCESS COMES TO SANTIAGO DE CALI
As planned, the city should continue the expansion of Almacenes Exito was Santiago de Cali. The capital of Valle del Cauca is a major center of western Colombia, near the port of Buenaventura and industrial and commercial empire.
In the construction began in early 1996, major integrated technological, logistical and conceptual allowed to conclude the work with a budget savings of 8% and within the time specified in the schedule. Simultaneously put into operation a large distribution center in the nearby town of Yumbo.
San Fernando's warehouse has a usable area of \u200b\u200b10,000 square feet on one floor and 600 parking spaces, 421 of which are indoors. In this building were incorporated into the latest security techniques such as seismic accelerometer sensor sophisticated electronic releases all emergency exits, smoke alarms, security products and advanced electronic surveillance systems. Also included in the design of the basic criteria of the new store format with large circulation spaces and new sections such as bakery complete new presentation of the section of fruit and vegetables, prepared foods section, bigger and better presence of fish, seafood and frozen section organized by lifestyle apparel, presentation of lines of appliances, books and music.
As had happened with the arrival in Bogotá, in order to reach the new position was not to build a building similar to existing ones, but provide a service equal to or better than he offered in other stores, this involved an enormous effort to train staff in service culture that distinguishes the company. The San Fernando store opened its doors on February 18, 1997 and received immediate public reception that broke all expectations. Thus, the company characterized by excellent customer service, hinted at the human qualities that had stood for 50 years. This business establishment was more successful than expected.
Given the magnificent reception, the board decided to begin studies to build the new plant store in Northern Cali, on land that belonged to the factory Plegacol. As planned work started in November 98 and its opening became a sign of confidence in a city hit by a deep crisis. To Cash Success was proud become one of the largest generators of jobs in the Sultana del Valle during the 90's.
THE EASY WAY IS NOTHING
Despite the excellent results obtained by the chain paisa from their arrival at Valle del Cauca, the policies they knew they would face a giant playing in local supermarket's 14.Este, traditional in the region and was preferred by the Cali due to its affordable prices and excellent range. "In the 14 is from a car to a needle" are comments often heard among the people of the region. It is and has always been considered the supermarket of "all and for all." As of December 1997, before the first success opened its doors in Cali, The 14 enjoyed about 70% of market share amounting to 7'000 million pesos. The remaining 30% is distributed among the smaller chains such as Olympic, Law, and Comfandi Carulla, among others.
DILEMMA
Against this background, Almacenes Exito knew the challenge was not easy and had to apply an appropriate strategy to position itself strongly in the city. The first year of operation, differential and innovative tactics of customer service that marked a milestone in the form of address in supermarkets in the city, the channel reached a not inconsiderable 15% market share, compared with 65% of the 14 and 10% of other supermarkets in Cali. These results
chain managers expected to continue removing a significant portion of market share to its main rival, equal and even surpass it in less than three years. However things were not as expected. After the first year of operation of the store, there was a market survey that measured consumer perceptions and found that the marked success, especially in Cali, failed to create emotional attachment and sense of belonging to the Cali. The store was not perceived as their own, as something they want, which is owned and makes special part of your life. It was simply a business establishment in the city, and this was far from the position that the network wanted to achieve.
this situation and concerned about their image, Almacenes Exito created a local strategy, which spread to other cities and subsequently launched throughout the country. "This at Home" emerged as a way of approaching the Cali community to generate roots and belonging to the brand, just as seeking to generate a greater impact on other cities of Colombia where the chain has a presence.
was necessary to establish an identity brand that customers identify with the company. After several market research studies, clients of Cali, said that what hope of success was that it was "a supermarket as it should be." This refers to an establishment that not only are the products and basic services and good care, but also lead to strong bonds of familiarity that goes beyond simple buying and selling process.
Brand Personality wanted to institutionalize the chain was that of a traditional supermarket, Friendly, Dedicated, Honest, Colombian Workers. For this we wanted a character who meet all the characteristics that should be marked success and who came closest to that profile, according to market research agency that handled campaign advertising was Paola Turbay.
The strategy should be complemented with emotional benefits as familiarity, calm and pleasant experiences in the point of sale, get the customer to enjoy memorable experiences during his visit to the stores. Also special attributes that the business had always told, should be strengthened: Service, quality and variety, offering customers a friendly and respectful to allow them to retain their leadership in the field and a broad portfolio of innovative products and high quality. For this performed retrained staff on duty at all levels, thus ensuring that the essence of the strategy "make the client feel at home", was internalized and appropriated by employees in the first instance, then be transmitted to customers. Upgraded the quality policies and made it easier to process changes of merchandise, not just what they do not comply with quality standards but which does not meet the expectations of the customer.
Together with the above, the mark should make known key values \u200b\u200bsuch as Colombian heritage, social participation and commitment to community, to complement the success of the campaign. Therefore strengthened in product and communication (advertising) the events of Colombia, as institutionalized by the network for the month of July. They also began to advertise all projects support and donations from the Foundation for Success Cali and Valle del Cauca, which annually exceed 1000 million pesos through Goticas Solidarity Program, which provides food and children with limited study resources and financial support to nonprofit institutions like hospitals, schools and foundations that benefit disadvantaged populations.
"This at Home": Success or failure
True Success has made a great effort and invested a considerable sum of money to get close to the heart of Cali, to be recognized especially for its comfort and excellent service. However, according to studies, the 14 is still stronger in range, price and coverage. Which of these attributes can win the battle by taking the first place, managed to generate bonds of familiarity?
Although we can not yet determine the success or failure of the campaign, the truth is that the dilemma of this case forced the chain to work harder for the city, to play an important role in social and economic development of the same , likewise stiff competition contested by hypermarkets in Cali, makes every day to generate more and better services, in the end only result in consumer needs Cali.
