Chapter 3

Retail Strategies

Faiza Nasir

1
 Retail Management
Define the Mission

Set Company’s objectives and goals

Design the Business portfolio

Plan Strategies

2
 Strategies to gain
Competitive edge
 Operational Excellence

 Product differentiation
Pricing strategy
(Leader pricing, Loss leader pricing)

 Customer Intimacy
Store Location
(Location, Location, Location)
3
 Pricing – Product differentiation

Price
High Medium Low
Premium strategy High-value strategy Super-value
High strategy

Quality Medium Over charging Medium-value Good-value

strategy strategy strategy
Low Rip-off strategy False economy Economy
strategy strategy

4
 Market entry strategies

 Penetration / Skimming

 Entry barriers

 Exit barriers

5
 Market Expansion Strategy

Product
Existing New

New Market Development Diversification

Market
Existing Market Penetration Product Development