What is a Strategy Strategy is a plan, a “how,” a means of getting from here to there. Strategy is perspective, that is, vision and direction.
Retail Strategy A clear and definite plan that the retailer outlines to tap the market and build a long- term relationship with the consumers.
Mission of Mc Donald’s – QSCV Mission of Wal-Mart –”To give ordinary folk the chance to buy the same thing as rich people”
Key Tasks in StrategicRetailing Define & Select a Target Market Develop the “Six Ps” Retail Marketing Strategy
Selecting a Target Market • Retailers analyze demographic, geographic, and psychographic profiles to segment and select potential markets
Product Place Price Personnel Promotion Presentation Choosing the Retailing Mix • STEP 2: • Choose the Retailing Mix
Product Offering The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.
Merchandising Strategy • Planograms: Diagrams of how to exhibit selections of merchandise within a store
The Battle for Shelf Space • Stock keeping unit (SKU): specific product offering within a product line that is used to identify items within the line • Slotting allowances: fees paid by manufacturers to secure shelf space from retailers for their products
Customer Service Strategy • Retailers must decide on the variety of services they make available for shoppers • Examples include gift wrapping, return privileges, electronic shopping, and delivery and installation • Objectives are to enhance shopper comfort and attract and retain customers
Customer Management Strategies Customer Relationship Marketing Loyalty Programs
Location / Distribution Strategy • Planned shopping center: A group of retail stores planned, coordinated, and marketed as a single unit
Freestanding Store Shopping Center Tenant Mall Location Decisions
Retail Promotion Strategy Advertising Public Relations Publicity Sales Promotion Retail Promotion Strategy
Factors in Creating Store’s Atmosphere Employee Type Merchandise Type Fixture Type Sound Odors Visual Factors Presentation of the Retail Store
Shopper’s Stop • Positioning Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its mission, vision and values. • Target Market • Man, Woman, youngsters and children Who Want Comfortable, Casual, But Stylish Apparel, upper-class and upper middle class. • between the age group of 16 years to 35 years
Examples of Retail Strategies • Big Bazaar • Reliance Malls • McDonalds • What is the target market, retail offering, and source of competitive advantage for each retailer?
Positioning • Is se Accha aur profitable kahin nahi', • Target • Middle class
Competitive Advantage • 1) Offering discounts ranging from 5 per cent to 60 % as discount stores is still a nascent concept in India • competence in providing products at lowest prices and great quality in an ambience much better than what the customers except. • 2) Offering products and services such as a photography shop, a bakery, automobile accessories, bicycles, electrical hardware, among other items, the range is vast and fulfils practically every need of the consumer under one roof
Reliance Industries will try to give consumers a complete shopping experience
Company’s retail venture will cater to almost all major sectors like apparel and footwear, FMCG, consumer durable, home furnishing, farm product, entertainment and leisure.
Creating Store LoyaltyMental and Emotional Attachments • Elements in a Strong Brand • Top of the Mind Awareness • Associations with Brand/Store Name • Methods Used to Develop a Strong Brand • Massive Exposure • Symbols to Reinforce Image • For e.g. :- Mac Donalds.
Theories of retail development. • Environmental theory Darwin’s theory --- survival of the fittest. The retailers who successfully adapt technological, demographic, economic changes , can only grow and prosper.
Low-end strategy • Low prices • Limited facilities and services • Price-sensitive consumers • Medium strategy • Moderate prices • Improved facilities • Broader base of value- and service-conscious consumers • High-end strategy • High prices • Excellent facilities and services • Upscale consumers Wheel of Retailing Theory