ACTIVITY 2: STRATEGIC PLANNING

1. Describe how the special characteristics or retailing offer unique opportunities and
problems for local gift shops?

Retailing has special characteristics. These are (a) the retailer's interface with the
customer is service-based, (b) retailers sell small quantities of items on a regular basis, (c)
customers feel comfortable because the retailers provide convenience in terms of shop location,
types of payment and different credit facilities for purchasing, range of merchandise and after-
sales support, and so on, and (d) retailers offer-selection an assortment of merchandise related to
the target market in order to provide choice. These special retail characteristics may serve as a
guideline to improve the marketing strategy of local gift shops. Based on Lise Heroux and Nancy
J. Church's research "Marketing Strategies of Gift and Souvenir Shops in Canada and the United
States: A Comparative Exploratory Study," they evaluated the marketing strategies used by three
distinct gift shops in Ontario, New York, and Quebec. The findings show that there are
differences in the marketing strategies of gift and souvenir shops across the three areas studied.
Product, pricing, promotion, and place marketing strategy scores were consistently higher for
Ontario souvenir/gift shops, followed by New York souvenir/gift shops, and finally Quebec
souvenir/gift shops.

The qualitative findings shed some light on the precise factors that lead to these
differences. Ontario stores had superior product assortments and brand options, as well as more
responsive and tailored services, in terms of items and services. They also had more accessible
placements on main roads and in attractive structures. Lighting, music fixtures, and signage were
used to improve the retail atmosphere and match the products. Their prices were lower, and they
offered discounts and coupons. For advertising, Ontario souvenir/gift shops tended to provide
more regular special offers, employ/train their sales employees to better approach clients,
provide helpful information, and also make the sale. In this study, the majority of the weakest
marketing strategy variables in Quebec souvenir/gift shops were related to the promotion
component of the marketing mix. This would imply that souvenir/gift shops in this region should
consider increasing their effort in store advertising. For example, there may be chances to run
special deals tied to a theme or local events, to employ outside signs to enhance sales volume, or
to provide tourist vouchers for special discounts or a free gift for visiting the business. We may
conclude from this study that special retailing features can give beneficial marketing strategies
for local gift shops if appropriately executed.

2. What is the purpose of developing a formal retail strategy? How could a strategic plan
be used by a restaurant chain?

Strategic planning includes establishing a firm's mission and vision, as well as creating
objectives and developing a strategy to fulfill the firm's purpose and vision in its operations. A
retail strategic planning may help a restaurant chain establish its type of business, mission,
vision, short- and long-term objectives, target market, build an overall, long-term plan,
implement an effective plan, and measure results. Strategic planning is vital in every business
and may help you gain a better understanding of what you excel at and which aspects of your
restaurant need to be improved. It keeps you informed about a restaurant's internal landscape as
well as what your competitors are up to. Restaurants should use strategic planning techniques to
lay the groundwork for their business.

3. One retailer wants to be part of a selective distribution channel. Another wants to be

part of an exclusive distribution channel. What might be the reasons for these choices?

Selective distribution channels target certain outlets. This is frequently focused on a

specific product and its fit inside a store. This enables manufacturers to select a pricing point that
targets a certain group of consumers, resulting in a more customized shopping experience. The
number of places in a given area is limited by selective distribution. Selective distribution entails
a producer selling items through a restricted number of retailers in a geographical area. One
advantage of this method is that the producer may focus efforts on the most appropriate or best-
performing outlets. Selective distribution works best when consumers are willing to "shop
around," that is, when they have a preference for a specific brand or price and will seek out the
outlets that supply it.

Channel relations are often easy with exclusive distribution since suppliers engage in
agreements with only one or a few retailers. This reduces pricing rivalry for retailers, allows
them to give complete service to their clients, and fosters collaboration between retailers and
their suppliers. This might range from exclusive premium brands to limited-edition collections
accessible only in specific locations or businesses. This strategy aids in the preservation of a
brand's image and product uniqueness. This is a frequent method of distribution for items and
brands that want to project a high level of prestige, such as Chanel or Ferrari.