MKTG 308 RETAIL

STRATEGY
SESSION 4: RETAIL INSTITUTIONS BY
STORE-BASED STRATEGY MIX

Lecturer: Dr. KWAME ADOM, UGBS

Contact Information: kadom@ug.edu.gh

College of Education
School of Continuing and Distance Education
2017/2018 – 2021/2022
 Session Objectives
• To describe the wheel of retailing, scrambled merchandising,
and the retail life cycle and to show how they can help
explain the performance of retail strategy mixes

• To discuss some ways in which retail strategy mixes are

evolving

• To examine a variety of food-oriented retailers involved with

store-based strategy mixes

• To study a range of general merchandise firms involved with

store-based strategy mixes
KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 2
 Retailer Strategy Mix

• A strategy mix is the firm’s particular combination of:

• store location
• operating procedures
• goods/services offered
• pricing tactics
• store atmosphere
• customer services
• promotional methods

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 3

 Earning Destination Retailer Status

Destination retailer: where consumers view the company as

distinctive enough to be come loyal to it and go out of their
way to shop there.

• Some combination of price-oriented and cost efficient,

innovative or exclusive merchandise, and superior customer
service

• Wide or deep merchandise strategy

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 4

 The Wheel of Retailing

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 5

 Lessons of the Wheel of Retailing

• Do not lose sight of your prime customer ’ s price

consciousness

• Beware of the dangers in upgrading target markets– Old

segment gets “sticker shock” and new segment does not
accept retailer’s revised positioning

• Do not create opening for new cost-conscious retailer to

emerge

• Employ customer benefit costing to weigh the cost and

benefits of specific service upgrades

• Use unbundled pricing to separately charge for select

services such as delivery, installation etc.

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 6

 Scrambled Merchandising

A situation where a retailer offers a mix of unrelated products

that do not reflect the company's original focus. Scrambled
merchandising often reflects a scattered product
management approach and can make a negative impression
on consumers since they might not be sure what sort of
products the retailer offers.

2017-09-14 KWAME ADOM PhD, Dept of Mktg & Entre 7

 Scrambled Merchandising by a Shoe Store

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 8

 Why Scrambled Merchandising?
(Format Blurring)
• Desire for one-stop shopping format.

• Concern to adopt “hot” products to increase store traffic

• Looking to increase store sales per square foot and same store sales
especially in a recessionary period

• Computer electronic retailers need to offset maturity of businesses and

reduced price levels

• Looking to make up for lost sales due to Web

• Desire for cross selling opportunities

• Looking for high gross profit businesses

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 9

 Retail Life Cycle

• Retail institutions pass through identifiable life stages

• Introduction

• Growth

• Maturity

• decline

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 10

 The Retail Life Cycle

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 11

 THANK YOU

KWAME ADOM PhD, Dept of Mktg & Entre 2017-09-14 Slide 12