Retail Market Strategy

Retail strategy

The overall plan or framework of action that guides a retailer

Strategic Direction Strategy statement Broad Unstructured Problem solving Creativity External focus Irregular Long-term Difficult to evaluate Note: Tactical Implementation Annual plan Specific, detailed Structured Problem solving Analytical Internal focus Regular Short-term Easy to evaluate

Success Comes for Having a Good Strategy and Executing It Well

What goes in the strategy ?

Elements in Retail Strategy

On a high level Retail strategy discusses Increase bottom line Target Market in terms of Customer Needs Retail Format as Method (how) for Satisfying Needs Bases for Building Sustainable Competitive Advantage

Why Does a Retailer Need to Focus on a Specific Target Market? Why Not Sell to Everyone?

Retail Market Opportunities for Womens Apparel

Methods for Segmenting Markets

Buying Situations Geographic

Benefits Sought

Lifestyle, Psychographics Demographics

Criteria For Selecting A Target Market

Attractiveness -- Large, Growing, Little Competition More Profits Consistent with Your Competitive Advantages

Market Attractiveness/Competitive Position Matrix

High
Maximum investment

Medium
Invest to challenge leader

Low
Opportunities investment Build strength or exit

Market Attractiveness

Consolidate position

Selective investment
Build on strengths Protect position Manage for cash generation

Cautious investment

Harvest or divest

Aggressi ve investme nt Cautious investme nt

Harvest or divest

Harvest or divest

Minimal investme nt Competitive Position