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RETAIL STRATEGIC PLANNING. W. Frank Dell II, CMC September, 2004. AGENDA. INTRODUCTION STRATEGY TACTICS OPERATIONS. Objectives. Define Retail Strategic Document components and elements Describe the development process Identify common mistakes. Strategy Definition.

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retail strategic planning

RETAIL STRATEGIC PLANNING

W. Frank Dell II, CMC

September, 2004

agenda
AGENDA

INTRODUCTION

STRATEGY

TACTICS

OPERATIONS

DELLMART & COMPANY

objectives
Objectives
  • Define Retail Strategic
  • Document components and elements
  • Describe the development process
  • Identify common mistakes

DELLMART & COMPANY

strategy definition
Strategy Definition

A plan, method or series of maneuvers for obtaining a specific goal or result

DELLMART & COMPANY

overview
Overview

DELLMART & COMPANY

time horizon
Time Horizon

DELLMART & COMPANY

maslow theory
Maslow Theory

DELLMART & COMPANY

agenda1
AGENDA

INTRODUCTION

STRATEGY

TACTICS

OPERATIONS

DELLMART & COMPANY

what business
What Business?

DELLMART & COMPANY

business goals
Business Goals
  • Sales
    • 1 million
    • 5 million
    • 100 million
    • 1 billion
  • Geographic
    • City/Region
    • Country
    • Continent
    • World

Market

Business

Competition

DELLMART & COMPANY

consumer is king
Consumer is King

The Golden Rule

He who has theGold (consumer) rules

DELLMART & COMPANY

which consumer
Which Consumer?

Buyer

User/Customer

DELLMART & COMPANY

define the target market
Define the Target Market
  • Sex
  • Age
  • Education
  • Income
  • Life Style
  • Ethnicity

DELLMART & COMPANY

target market sex
Target Market - Sex

Household

Female

Male

DELLMART & COMPANY

target market age
Target Market - Age
  • Infant – 1 to 3
  • Junior – 3 to 8
  • Youth – 8 to 12
  • Teen – 12 to 19
  • Young Adult – 19 to 30
  • Middle Age Adult – 31 to 55
  • Senior Adult – 55 to 100

DELLMART & COMPANY

target market education
Target Market - Education
  • No education
  • Elementary School
  • High School
  • College / University
  • Advanced Degree

DELLMART & COMPANY

target market income
Target Market - Income
  • Person Vs Household
  • Income
    • 2,100 Rubles per month
    • 3,500 Rubles per month
    • 7,000 Rubles per month
    • 10,500 Rubles per month
    • 14,000 Rubles per month
    • 17,500 Rubles per month
    • 17,501 + Rubles per month

DELLMART & COMPANY

target market life style
Target Market – Life Style
  • Vegetarian
  • Diabetic
  • Over-weight
  • Health nut
  • Active

DELLMART & COMPANY

target market ethnicity
Target Market - Ethnicity
  • Geographic region
  • Race
  • Religion

DELLMART & COMPANY

target market
Target Market

DELLMART & COMPANY

factor in trends
Factor in Trends
  • Aging population
  • Growing Middle Class
  • Changing Health & Life Style

DELLMART & COMPANY

elements format size
Elements – Format Size
  • How many formats & what size?

DELLMART & COMPANY

elements merchandise
Elements - Merchandise
  • Reason for the store
  • Department / Category / Sub-Category
    • Match target customers needs & wants
    • Interest secondary consumers
  • Depth and Breath of presentations
    • Brands
    • Sizes
    • Flavors / Styles

DELLMART & COMPANY

elements merchandising
Role

Destination

Routine

Occasional / Seasonal

Convenience

Quality

Good

Better

Best

Elements - Merchandising

DELLMART & COMPANY

elements decor
Elements - Decor
  • Fixtures
  • Lighting
  • Flooring
  • Signage

DELLMART & COMPANY

elements services
Checkout

Cash

Credit & Debit card

Sales assistance

Returns

Lay-A-Way

Gift Registry

Demonstrations

Sampling

Delivery

Installation

Education

Elements - Services

DELLMART & COMPANY

brick vs click
Positives

Additional Sales

Brand building

Reach larger target market

Lower investment

Negatives

Different business

Delivery

Divides resources

Brick Vs Click

DELLMART & COMPANY

operating capital models
Sales

Cost of Goods

= Gross Margin

Labor & Benefits

Utilities

Rent

Advertising

- Taxes

= Profit

Site

+ Store Construction

+ Fixtures

+ Merchandise

= Capital Cost

Operating & Capital Models

Payback

DELLMART & COMPANY

validation
Validation

DELLMART & COMPANY

agenda2
AGENDA

INTRODUCTION

STRATEGY

TACTICS

OPERATIONS

DELLMART & COMPANY

overview1
Overview

DELLMART & COMPANY

advertising
Advertising

Television

Radio

Magazine

Mail

Newspaper

Internet

DELLMART & COMPANY

pricing
Pricing

Hi Lo

Seasonal

Everyday Low Price

DELLMART & COMPANY

categories
Categories
  • Traffic Building - High share, frequent purchase
  • Transaction Building - Higher price, impulse buy
  • Profit Contribution - High gross margin, turns
  • Cash Generation - High turn, frequent purchase
  • Excitement Creating – Impulse, lifestyle
  • Image Creating – Frequent purchase & promotion
  • Turf Defending – Customer draw

DELLMART & COMPANY

promotions
Promotions
  • Types – Unlimited
    • Price off
    • Buy one get one
    • Continuity
    • Coupons
    • Joint SKU
  • Match target consumers desires
  • Support strategic image
  • Incorporate Frequent Shopper Program

DELLMART & COMPANY

location location location
Location, Location, Location
  • Where
    • Work
    • Live
    • Play
  • Travel mode
    • Walk
    • Drive
    • Public transportation

DELLMART & COMPANY

agenda3
AGENDA

INTRODUCTION

STRATEGY

TACTICS

OPERATIONS

DELLMART & COMPANY

introduction
Introduction
  • A Strategic Plan that is or can not be executed is only a dream
  • Each Department must define an action plan to achieve the strategy

DELLMART & COMPANY

human resources
Human Resources
  • Attract
  • Educate and Train
  • Evaluate
  • Retain

DELLMART & COMPANY

logistics
Logistics
  • Inbound
    • Store Vs Warehouse Delivery
    • Method (truck, rail, water)
  • Storage & Processing
    • Number warehouse by commodity
    • Location and size
  • Outbound
    • Frequency, distance, temperature

DELLMART & COMPANY

information technology
Information Technology
  • Hardware
    • Processing power
    • Security & back up
  • Software
    • Transaction processing
    • Management control & reporting
    • Analysis and planning
  • Network
    • Volume
    • Distance

DELLMART & COMPANY

store operations
Store Operations
  • Consistently execute customer service
  • Merchandise in-stock
  • Train for expansion

DELLMART & COMPANY

commercial
Commercial
  • Selection
    • Categories, Sub-Categories & Items
    • Pricing & Promotion
  • Inventory Turns
  • Merchandise in-stock

DELLMART & COMPANY

finance accounting
Finance & Accounting
  • Manage cash
  • Maintain budgets and controls
  • Secure sufficient capital

DELLMART & COMPANY

summary
Summary

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fatal sins of strategic planning
Fatal Sins of Strategic Planning
  • Have a weekend retreat once a year to talk about strategy
  • Viewing Strategy as a “diet”
  • Develop vision, mission and/or value statements as “fluff”
  • Vision without action
  • Failing to involve all in developing an action plan
  • Failing to integrate planning

DELLMART & COMPANY

fatal sins of strategic planning1
Fatal Sins of Strategic Planning
  • Conducting business as usual after strategic planning
  • Lacking a scorecard or measurement
    • Doing what is easy rather than what is important
  • Neglecting to benchmark against competitors
  • Failing to make tough choices

DELLMART & COMPANY

slide48

Thank You

DELLMART & COMPANY

slide49
W. Frank Dell II, CMC

President

DELLMART & Company

125 Hardesty Road

Stamford, CT 06903 USA

Tel: 203-968-8609

Fax: 203-968-8613

e-mail: Frank@Dellmart.com

Web Site: www.Dellmart.com

DELLMART & COMPANY