RETAIL STRATEGY

• TARGET AUDIENCE
• FORMAT
• SUSTAINABLE COMPETITIVE ADVANTAGE
 CLASSIFICATION

Food
Retailers Retailing Type of
Ownership

General
Merchandize Non-Store
Retailers Retailers
 FOOD RETAILERS –
CLASSIFICATION
Supercentres

Supermarkets A C Hypermarkets

FOOD
RETAILERS

Convenience E D Warehouse
Stores Clubs
 FOOD RETAILERS

SUPERMARKETS
• Self Service Food Store
• 70-80% of sales comes from Food Products
• 20000-30000 sq ft Size
• Limited assortment Supermarkets: Stock lesser
number of SKU’s than conventional supermarket;
Limited variety and assortment of brands
• Example: Food Bazaar
 FOOD RETAILERS

SUPERCENTRES
• Combines a supermarket and a full line discount
store
• Broad Assortment
• One stop shopping experience
• Usually outside the city, customers have to travel
distances
• 150000-220000 sq ft in size
 FOOD RETAILERS

HYPERMARKETS
• Combination of Food (60-70%) and General
Merchandize stores (30-40%)
• Carry larger proportion of food items than
supercentres with high emphasis on Perishables
• Stock fewer SKU’s than supercentres
• 100000-300000 sq ft in size
• Example: Big Bazaar
 FOOD RETAILERS

WAREHOUSE CLUBS
• Offers a limited and irregular assortment of food and
general merchandize
• Low Prices for the small Businesses
• Equivalent to Wholesalers in India
• 100000-150000 sq ft in Size
 FOOD RETAILERS

CONVINIENCE STORES
• Convenient Location near residential areas
• Limited variety and assortment
• Easy access, storefront parking, quick in and out
access are key benefits
• Open for long hours, seven days a week
• Modern version of conventional mom and pop
stores
• Example: In & Out
 GENERAL MERCHANDIZE RETAILERS

DEPARTMENT STORES
• Broad Variety and Deep Assortment
• Offer Customer Services
• Not very convenient as usually located inside large
malls and not the local neighborhood
• Example: Shoppers Stop

FULL LINE DISCOUNT STORES

• Broad Variety of Merchandize
• Limited Service
• Low Prices
• Offer private labels and National Brands
• Example: Target
 GENERAL MERCHANDIZE RETAILERS

SPECIALITY STORES
• Offer a limited number of complimentary
merchandize categories
• Focus towards very specific market segment
• Offer deep but narrow assortment
• Example: Archies Gallery, Planet M

DRUGSTORES
• Concentrate on Health and Personal Grooming
merchandize
• Pharmaceuticals represent over 50% of sales
• Highly fragmented market in India
• Example: 98.4, Apollo Pharmacies
 GENERAL MERCHANDIZE RETAILERS

CATEGORY SPECIALISTS
• Discount Stores with narrow but deep assortment of
merchandize
• Also known as “category killers” for offering very low
prices in the category they operate in

EXTREME VALUE RETAILERS

• Small full line discount stores
• Offer limited merchandize assortment at very low
prices
• Example: The Dollar Store,
 GENERAL MERCHANDIZE RETAILERS

FACTORY OUTLETS
• Sell Branded Merchandize at discounted price
• Located away from conventional shopping places
 NON STORE RETAILERS
CHANNEL MODE OF COMMUNICATION FEATURES
Electronic Dramatically changed the
Internet
traditional retailing
General and specialty catalog
Catalog Catalog
retailers
Successful with rural customers
Direct Mail
Letters and Brochures who lacked access to retail
stores. Compete with CRM
Direct selling Party plan system , Multi level
Salespeople
network
Television Home Customers watch TVB program Cables channels
Shopping and then place orders for the Infomercials
merchandise by telephone Direct response advertising
Automated Services are stores in machine
Vending machine placed at
Machine and dispensed to customers
convenient ,high traffic locations
Retailing when they deposit cash/credit
primarily contain snacks or drinks
card