Retail market Strategy Slide2 Retail Strategy:- The overall plan or framework of action that guides a retailer One year in duration Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms Definition of a strategy defines its business relative to its competitors Elements of a Retail Strategy:-
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Retail market StrategySlide2
Retail Strategy:-
The overall plan or framework of action that guides a retailer
One year in duration
Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms
Definition of a strategy defines its business relative to its competitors
Elements of a Retail Strategy:-
Slide4-
Mission and Purpose:-
• Highlights ….
– Products and services that will be offered
– Customers who will be served
– Geographic areas of operation
– Manner in which it intends to compete
Slide5-
Mission Statements:-
• Wal Mart to give ordinary folk the chance to buy the same thing as the rich
• McDonald’s Quality, Service, Convenience and Value
• CCD to be the best café chain in the country by offering world class coffee experience at affordable prices
• Shoppers Stop To be a global retailer in India, and maintain the no.1 position in the Indian market in the departmental store category
Slide6-
Situation Analysis:-
• PEST Analysis – Political, Economic, Social and Technological
• Here Porters Five Force model can also be used
– Entry barriers
– Suppliers
– Customers
– Substitute Products a
– Industry rivalry
Slide7-
Dimensions of a retail strategy:-
• Location
• Merchandise
• Price
• Service
• Communications
These dimensions are supported by
• Store operations
• Logistics
• Purchasing
• Market research
• Finance
• Technology
Slide8-
Dimensions:-
• Location
– Drawing power – natural ability of the store to encourage customers
• Merchandise
– Store as brand represents the merchandise the retailer carries
• Price
– Margin and turnover figs. represent the perception of retailer among customers
• Service
– Services that provide convenience, services that facilitate sales, auxiliary services
• Communication
– Reach, frequency, content and personalization
Benefits of Strategic Retail Planning:-
Provides thorough analysis of the requirements for doing business for different types of retailers
Outlines retailer goals
Allows retailer to determine how to differentiate itself from competitors
Allows retailer to develop an offering that appeals to a group of customers
Helps coordinate and unify the activities of everyone involved
Offers an analysis of the legal, economic, and competitive environment
Provides for the coordination of the firm’s total efforts
Encourages the anticipation and avoidance of crises
Steps in Retail Planning:-
1. Identifying Market opportunities
2. Determining the Market position
3. Developing a formal Marketing Plan
4. Implementing the Plan
Identifying Market opportunities:-
• Gap Analysis
– Identify where the gap lies between customer desires and other retailer offerings
– SWOT Analysis
Determining the Market position:-
• Success is attained if a retailer
– Believes in innovation
– Is aggressive
– Believe in producing quality products and services
– Believe in looking to people to solve problems
– Adaptable to change
This gives a differential advantage …
Developing a formal Marketing Plan:-
• Setting Objectives
– Survival, growth, market share increase, high returns on investment, and development of a good store image
• Mission Statement
• Budgeting
Wills Lifestyle:-
• ITC’s Wills Lifestyle has been established as a vibrant fashion brand for the premium consumer. Wills Lifestyle offers a complete lifestyle wardrobe for the premium consumer, incorporating the latest fashion trends, comprising - Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, Essenza di Wills range of fine fragrances, bath & body care products and fashion accessories for both men and women. Specially showcased is a range of high end offerings such as Luxurious shirts & trousers, Formal Jackets, Cashmere and Evening dresses.
A nationwide chain of exclusive specialty stores provides the Indian consumer a truly 'International Shopping Experience' through world-class ambience, customer facilitation and clearly differentiated product presentation. Unique CRM initiatives lay emphasis on a high degree of personalization, and with Club Wills, the loyalty programme that is positioned around fine fashion & fine living, Wills Lifestyle enjoys a strong bonding with its consumers.
Currently there are 40 Wills Lifestyle stores in 30 cities across the country, and the brand is making rapid strides in terms of expansion – doubling the number of stores over the next three years. Wills Lifestyle has received wide recognition within the fashion industry including "Most Admired Exclusive Retail Chain of the Year".
Implementing the Plan:-
• Mr Y C Deveshwar, Chairman, ITC Limited said, "Wills Lifestyle is strongly established as a vibrant fashion brand offering premium consumers, both men and women, a complete lifestyle wardrobe. With this association, I see a uniquely synergistic opportunity for the partners of the Wills Lifestyle India Fashion Week to gain global recognition.
Organizational Mission:-
Retailer’s commitment to a type of business and to a distinctive role in the marketplace.
The Focused Organizational Mission of Frisch’s Restaurants:-
Ownership and Management Alternatives:-
Sole proprietorship is an unincorporated retail firm owned by one person
A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest
A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers
Figure 3.3 Checklist to Consider When Starting a New Business:-
Figure 3.4 Checklist for Purchasing an Existing Retail Business:-
Selected Kinds of Retail Goods and Service Establishments:-
Durable Goods Stores:
Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores
Nondurable Goods Stores:
Apparel group
Food group
General merchandise group
Gasoline service stations
Selected Kinds of Retail Goods and Service Establishments:-
Service Establishments (Personal):
Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services
Service Establishments (Amusement):
Movie theaters
Bowling alleys
Dance halls
Golf courses
Service Establishments (Repair):
Automobile repair Car washes Consumer electronics repair Appliance repairs
Service Establishments (Hotel):
Hotels
Motels
Trailer parks
Camps
Kroger’s Goals:-
Increase its identical food store sales growth target
Reduce operating and administrative costs by more than $500 million
Further leverage its size to achieve even greater economies of scale
Reinvest in its core business to increase sales and market share
Image and Positioning:-
An image represents how a given retailer is perceived by consumers and others.
Positioning Approaches:-
Mass merchandising is a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities
Niche retailing occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market
Selected Retail Positioning Strategies:-
Target Market Selection:-
• Three techniques
Mass marketing
Concentrated marketing
Differentiated marketing
Strategic Implications of Target Market Techniques:-
Retailer’s location
Goods and service mix
Promotion efforts
Price orientation
Strategy
Developing an Overall Retail Strategy
Legal Environment and Retailing:-
• Store Location
zoning laws
blue laws
environmental laws
direct selling laws
local ordinances
leases and mortgages
• Managing the Business
licensing provisions
personnel laws
antitrust laws
franchise agreements
business taxes
recycling laws
• Merchandise Management and Pricing
trademarks
merchandise restrictions
product liability laws and lemon laws
sales taxes
unit-pricing laws
collusion laws
sale prices
price discrimination laws
• Communicating with the Customer
truth-in-advertising and selling laws
truth-in-credit laws
telemarketing laws
bait-and-switch laws
inventory laws
labeling laws
cooling-off laws
Additional Concerns for Global Retailing:-
In addition to the strategic planning process:
assess your international potential
get expert advice and counseling
select your countries
develop, implement, and review an international retailing strategy
Factors Affecting the Success of a Global Retailing Strategy:-
Timing
A balanced international program
A growing middle class
Matching concept to market
Solo or partnering
Store location and facilities
Product selection
Factors to Consider When Engaging in Global Retailing:-