ELEMENTS OF RETAIL STRATEGY

Mission, Ownership & Mgt.Alt, Goods & service category SITUATION ANALYSIS

Objective

Sales , Profit , satisfaction of Publics, Image

Identification of consumers

Mass Mktg. ,Mkt. Segmentation, Multiple segmenttation

Overall Strategy

Controllable & uncontrollable variables

Specific Activities

Daily &short term operations Response to Env.

Control

Evaluation , Adjustment

SITUATION ANALYSIS
Evaluation of the opportunities & Potential Problems facing a prospective or existing retailer. It seeks to answer two general questions: What position or status is the firm now? In which direction should it be heading? For a retailer it means defining the Org. Mission ,evaluation of ownership & Mgt. options, and outlining the goods & service category to be sold.

Organization Mission It reflects the firms attitude to consumers. competitors. employees. . One key decision is whether to base its business around goods & services sold or around customer needs. & others. A firms mission includes a long term commitment to a type of business & a place in the market. Govt.

a small company can usually compete quite effectively with larger firms.Second major decision for a retailer is whether it wants a place in the market as a leader or follower. it is usually best for a small retailer-and most start ups – to focus on a narrow customer base. Although a large chain can seek a broader customer base ( because of its resources & recognition). Third important decision involves a retail firm’s market scope. By concentrating its efforts. .

. Sole proprietorship Partnership Corporation.OWNERSHIP & MGT. ALTERNATIVES A very essential part of situation analysis is the assessment of ownership and management alternatives.

Nondurable goods store Apparel Group Food Group General merchandise group Eating & Drinking place Petrol pump Drug store Liquor store. Hardware etc.GOODS & SERVICE CATEGORY Automotive Group Durable Goods store Furniture. . Jewelry . Appliances.

.SERVICE CATEGORY Personal services Laundries & Dry-cleaning Beauty/Barber shops Photographic studies Funeral services Health-care services. Amusement services Movie theatres Dance halls Golf course Skating rinks Amusement parks Coin-operated game arcades Repair services Automobile repairs Car washes Consumer electronic repairs Appliance repairs Watch & jewelry repairs Hotel services Hotels Motels Camps.

OBJECTIVES Sales objectives : Volumes Profit Satisfaction of Publics (stack holders.). consumers. Image (Positioning) . suppliers. employees and Govt.

IDENTIFICATION OF CONSUMER The customer group that a retailer seeks to attract and satisfy is called the target market. . Market segment Multiple segment. Mass Mkt.

Strategy . & Pricing Communication with customer Consumers Retail Competition Technology Economic conditions Seasonality Legal restrictions.OVERALL STRATEGY Uncontrollable Variables: Controllable variables: Store location Managing a business Merchandise Mgt.

.Choosing a store location Competitors Transportation access Population density Type of neighborhood Nearness to suppliers Pedestrian traffic and Store composition.

responsibility and rewards are outlined via a retail organization structure. resources. authority.Managing a business Involves two major elements: The Retail Organization & The HR Mgt. Operations Mgt. Policies.: efficiently & effectively performing the task. . Tasks.

Merchandising Mgt. of the goods and/ or services offered must be determined. PRICING :Leader/ follower. . cost plus/ demand oriented etc. Decision about level of inventories. Decisions about width & depth of assortment. & Pricing The General qty.

Strategy To attain and maintain a long run success . consumer lifestyles. Strategic Planning in retailing: Trends in the consumer demographic . ethics & social responsibility. . technology. a retail firm’s strategy must anticipate and plan for the changing env. In particular . the firm should carefully identify the opportunities & threats that are evolving. SWOT. retail institutions and the international dimensions of retailing are discussed.

Demographics .

Population Size & Age Distribution .

of Households .No.

Population Mobility .

Location of Mobility .

Working Women .

Income .

Life style trends .

Gender Roles .

Consumerism .

Technology E-Banking Video Ordering system .

.

. Evaluating and revising the plan depending on the nature of the internal & external env.Retail Strategies Defining the business of the firm. Setting short term & long term objectives Identifying the target Mkt Deciding the broad direction Implementing an integrated plan that encompasses all aspects of retailing like pricing. location. and channel decision.

Sign up to vote on this title
UsefulNot useful