MM151 RETAIL MANAGEMENT
 MALL OPERATIONS / TENANT RELATIONS
 LEASING
 MARKETING
 DEPARTMENT STORE OPERATIONS
 STORE CONSIGNOR
 OUTRIGHT
 MERCHANDISING (CORPORATE)
 RAND OPERATION
 BUSINESS DEVELOPMENT
 RETAIL OPERATIONS
 MARKETING
 SALES
 PRODUCTION
 ACCOUNTING
UNIT 1 – AN OVERVIEW OF STRATEGIC RETAIL
MANAGEMENT
• An introduction to Retailing
• Building and Sustaining Relationship in Retailing
• Strategic Planning in Retailing
• At the end of the unit, the students must have:
1. Defined retailing, consider it from various perspectives,
demonstrate its impact, and note its special characteristics
2. Explained what value means and highlight its pivotal role in
retailers’ building and sustaining relationships
3. Discussed the steps in strategic planning for retailers:
situation analysis, objectives, identification of consumers,
overall strategy, specific activities, control, and feedback
WORLD OF RETAILING
 Retailing is a global, high-tech industry that plays a
major role in the global economy.
The Philippine Gross Domestic Product (GDP)
posted a growth of 7.4 percent in the second
quarter of 2022.
The main contributors to the second quarter
2022 growth were: Wholesale and retail trade; repair of
motor vehicles and motorcycles, 9.7 percent;
Construction, 19.0 percent; and Transportation and
storage, 27.1 percent.
RETAIL MANAGEMENT
 The various processes which help the customer to
procure the desired merchandise from the retail
store for their end use.
 It includes all the steps required to bring the
customers into the store and fulfill their buying
needs.
 Makes shopping a pleasurable experience and
ensures the customers leave the store with a smile.
 It helps customers shop without any difficulty
WHAT IS RETAILING?
 Most common form of doing business.
 It consists of selling merchandise from a permanent
location (a retail store) in small quantities directly to
the consumers.
 These consumers may be individual buyers or
corporate.
 Retail purchases goods of merchandise in bulk from
manufacturers directly and then sells in small
quantities.
 Shops may be located in residential areas, colony
streets, community centers or in modern shopping
arcades/malls.
MEANING OF RETAILING
 According to KOTLER: “Retailing includes all the
activities involved in selling goods or services to the
final customers for personal, non business uses.
 A process of promoting greater sales and customer
satisfaction by gaining a better understanding of the
consumers of goods and services produced by a
company.
CHARACTERISTICS OF RETAILING
 Direct interaction with customers/end customers.
 Sale volume large in quantities but less in monetary
value.
 Customer service plays a vital role.
 Sales promotions are offered at this point only.
 Retail outlets are more than any other form of business
 Location and layout are critical factors in retail business.
 It offers employment opportunity to all age.
TYPES OF RETAILERS
FOOD RETAILERS
- a place of business where consumers can purchase food
and take it with them to be consumed off-premise.
Retail food is basically food obtained through a business
transaction with an organization that is not a restaurant
A. CONVENIENCE STORE
This store format is based upon the idea of, as the
name suggests, convenience. These are small stores
that offer limited assortment of products.
B. WAREHOUSE CLUB
• These are large stores which aim to provide
products in a larger volume to small
businesses/small retailers and individuals.
• A warehouse club is a retailer, not a wholesaler,
but is extremely economical in terms of price among
all the retailers types.
CHARACTERISTICS
Store Size : 100,000-150,000 sq ft
Location : Far off places where real estate is
cheaper
Number of SKUs: 20000-30000
 Percentage of Food: 60%
Prices : Lowest
Gross Margin : Lowest (10-12%)
C. SUPERMARKET
• These are bigger than the convenience stores and
carry a number of SKUs and deeper assortments
than the convenience.
• These are pretty much like convenience stores that
operate in a much large store size.
CHARACTERISTICS
Store Size : 70000-90000 SQ FT
Location : Near Residential Areas
Number of SKUs: 30000-40000
Percentage of Food: 70%
Prices : Average
Gross Margin : High (18-20%)
D. HYPERMARKET
• Hypermarkets or what you may also call
Supercenters are really big shopping stores. If you
can visualize a big SM Supermarket then you know
how a hypermarket looks like.
• The difference between Hypermarket and
Supermarkets is in terms of food assortment.
• A hypermarket has a lower percentage of food
compaged to a supermarket.
• A concept of everything under one roof and it
brings together a supermarket and a department
store.
CHARACTERISTICS
Store Size : 160000-200000 SQ FT
Location : In commercial areas
Number of SKUs: 100000-150000
Percentage of Food: 40%
Prices : Low
Gross Margin : Low (15-20%)
GENERAL RETAILERS
General Retailers is a method of classification and it
also may comprise stores that carry food items
A. DISCOUNT STORES
o Any store that positions itself as a discount
player falls into the category of Discount
Stores. Big Bazaar should have crossed your
mind when you read that. Big Bazaar
certainly is an example of a discount store.
o As I mentioned, the defining point is the
discount. For that purpose, discount stores
usually are no frills store, with extremely
less customer service. This is done to ensure
that the costs are down.
B. SPECIALTY STORES
o These are stores that specialize in servicing
a particular segment of customers. For that
purpose, they will keep a deep range of
complementary items and would target the
customer accordingly.
o Apple store is a specialty store. It does
target an extremely specific segment and
keeps all the complementary products like
iPhone, iPads, Macs and even the
accessories. Same is the case with Victoria’s
Secret store.
C. CATEGORY SPECIALISTS
o Better known as ‘Category Killers’, these
stores focus on just one product category
and really kill in that! Well, that means that
their product assortment depth in that
category is just unbeatable.
D. DEPARTMENT STORES
o Departmental Stores as a store which has
many departments
o a departmental store can be visualized as a
store that is departmentalized where each
of those departments can be seen as a
separate store.
o A departmental store is extremely large in
size and therefore has a high number of
SKUs
E. OFF-PRICE RETAILERS
o These are retailers that offer inconsistent
items of a brand or multiple brands at
prices as low as 40-60% of the Maximum
Retail Price. This is because Off-price
retailers buy the stock which other retailers
don’t want to sell or can’t sell.
The reasons why off-price retailers
sell at such a low price is because of the
following reasons:
 Limited period items: These are
close-out items which means that
these items were available only for
a limited period of time and the
primary retailers won’t sell it after
that time period
 Seasonal items: Similarly, those
could be items that will not be sold
in the next season. This usually
applies to apparels and products in
the fashion industry
 Irregular items: These are the
items that have a minor defect in
them and therefore are sold by the
primary retailers at a low price.
F. VALUE RETAILERS
o These are the retailers who offer items that
have a low price.
o Discount stores offer discounts on products
however Value retailers offer inherently
 low-priced products. Naturally, such stores
should and are located in areas with
customers who like to buy low prices
products.
Nonstore Retailing
 Direct Marketing
 Direct Selling
 Automatic Vending
UNIT 1. CHAPTER 1 BUILDING AND SUSTAINING
RELATIONSHIPS IN RETAILING
CHAPTER OBJECTIVE
 To explain what “value” really means and highlight
its pivotal role in retailer’s building and sustaining
relationships.
 To describe how both customer relationships and
channel relationships may be nurtured in today’s
highly competitive marketplace.
 To examine the differences in relationship building
between goods and services retailers.
 To discuss the impact of technology on relationships
in retailing.
 To consider the interplay between retailers’ ethical
performance and relationships in retailing.
WHAT IS VALUE?
o THE BOTTOMLINE
o Consumers will demand more for less from the
shopping experience.
o They will spend less time shopping
o They will split the commodity-shopping trip from the
value-added shopping trip
o CHANNEL PERSPECTIVE
o Value is a series of activities and processes – the
value chain – that provides a certain value for the
consumer.
o CUSTOMER PERSPECTIVE
o Value is the perception that the shopper has of the
value chain.
o It is the view of all the benefits from a purchase
versus the price paid.
RETAIL VALUE CHAIN
o Represents the total bundle of benefits offered to
consumers through a channel of distribution.
o Store location and parking, retailer ambience,
customer service, brand/products carried, product
quality, retailer’s in-stock position, shipping, prices,
image and other elements
THREE ASPECT OF A VALUE-ORIENTED RETAIL STRATEGY
o Expected retail strategy – represents the minimum
value chain elements a given customers segment
expect from a type of retailer (a mid-price apparel
retailer)
o Augmented retail strategy – includes the extra
elements in value chain that differentiate one
retailer from another.
o Potential retail strategy – comprises value chain
elements not yet perfected by a competing firm in
the retailer’s category.
POTENTIAL PITFALLS TO AVOID IN PLANNING A VALUE-
ORIENTED RETAIL STRATEGY
o Planning value with just a price perspective.
o Providing value-enhanced services that customers do
not want or will not pay extra for
o Competing in the wrong value/price segment
o Believing augmented elements alone create value
o Paying lip service to customer service.
A VALUE-ORIENTED RETAILING CHECKLIST
o Is value defined from a consumer perspective?
o Does the retailer have a clear value/price point?
o Is the retailer’s value position competitively
defensible.
o Are channel partners capable of delivering
valueenhancing services.
o Does the retailer distinguish between expected and
augmented value chain elements?
o Has the retailer identified meaningful potential value
chain elements?
o Is the retailer’s value-oriented approach aimed at a
distinct market segment?
o Is the retailer’s value-oriented approach consistent?
o Is the retailer’s value-oriented approach effectively
communicated to the target market?
o Can the target market clearly identify the retailer’s
positioning strategy?
o Does the retailer’s positioning strategy consider
trade-offs in shales versus profits?
o Does the retailer set customer satisfaction goals?
RETAILER RELATIONSHIP
o Customers Relationships – loyal customers are the
backbone of a business
o Customer Base – retailers must regularly analyze
their customer base in terms of population and
lifestyle trends attitudes toward and reasons from
shopping, levels of loyalty and the mix of new versus
loyal customers
CUSTOMER SERVICES
o Expected Customer Service – is the service level that
customers want to receive from any retailer such as
basic employee courtesy.
 o Augmented Customer Service – includes the
activities that enhance the shopping experience and
give retailers a competitive advantage.
CLASSIFYING CUSTOMER SERVICES
COST OF OFFERING THE CUSTOMER SERVICE
HIGH LOW
o What customer services are expected and
what customer services are augmented for
a particular retailer?
o What level of customer service is proper to
complement a firm’s image?
o Should there be a choice of customer
services?

Patronage Patronage Solidifiers FUNDAMENTAL DECISIONS 2

Builders The “low-cost little o Should customer services be free?
High-cost activities things” that increase o How can a retailer measure the benefits of
HIGH that are the loyalty. providing customer services against their
primary factors e.g. courtesy (referring costs?
VALUE OF behind customer to the customer by
o How can customer services be terminated?
THE loyalties. name and saying that
CUSTOMER e.g. Transaction you), suggestion selling
speed, credit, gift TYPICAL CUSTOMER SERVICES
SERVICE TO o Credit
registry
THE o Delivery
Disappointers Basics
SHOPPER Expensive activities Low-cost activities that o Alterations/Installations
that do not real are “naturally o Packaging/Gift Wrapping
good. expected”. They don’t o Complaints/Return Handling
LOW
e.g. weekday build patronage, but o Gift Certificates
deliveries for two- their absence could o Trade-ins
earner families, reduce patronage.
o Trial purchases
home economists e.g. free parking, in-
store directories o Special sales
FUNDAMENTAL DECISIONS o Extended store hours
o Mail and phone orders

MISCELLANEOUS CUSTOMER SERVICES

o Bridal Registry PRINCIPLES OF CATEGORY MANAGEMENT
o Interior Designers o Retailers listen more to customers
o Personal Shoppers o Profitability is improved because inventory matches
o Ticket outlets demand more closely.
o Parking o By being better focused, each department is more
o Water fountains desirable for shoppers
o Pay phone o Retail buyers are given more responsibilities and
o Baby strollers accountability for category results
o Restrooms o Retailers and suppliers must share data and be more
o Restaurants computerized
o Baby-sitting o Retailers and suppliers must plan together
o Fitting rooms ELEMENTS CONTRIBUTING TO EFFECTIVE CHANNEL
o Beauty salons RELATIONSHIPS
o Fur storage EFFECTIVE RELATIONSHIPS
o Shopping bags - Final consumer orientation
- Common Positioning goals
o Information
- Input into channel decisions
- Truest
TURNING AROUND WEAK CUSTOMER SERVICE
- Fairness
1. FOCUS ON CUSTOMER CONCERNS
- Reliability
2. EMPOWER FRONT-LINE EMPLOYEES
- Communication
3. SHOW THAT YOU ARE LISTENING
- Coordination
4. EXPRESS SINCERE UNDERSTANDING
- Consistency
5. APOLOGIZE AND RECTIFY THE SITUATION
 - Activities performed
- Proper lead time
- Equitable profit distribution
- Marketing support
- Timeliness of payments
- Inventory planning
3 KINDS OF SERVICE RETAILING
o Rented Goods Services – whereby consumers lease
and use goods for specified period of time. Tangible
goods must be returned when due.
o Owned Goods Services – whereby goods owned by
consumers are repaired, improved or maintained. In
this grouping, the retailer providing the service never
owns the good involved.
o Non-good services – whereby intangible personal
services are offered to consumers who then
experience the service rather than possess them.
The seller offers personal expertise for specified time
in return for a fee; tangible goods are not involved
FOUR CHARACTERISTICS OF SERVICES RETAILING
o INTANGIBILITY
o INSEPARABILITY
o PERISHABILITY
o VARIABILITY
CHARACTERISTICS OF SERVICE RETAILING
o INTANGIBILITY
 No patent protection possible
 Difficult to display/communicate service
benefits
 Service prices difficult to set
 Quality judgment is subjective
 Some services involve
performances/experiences
o INSEPARABILITY
 Consumer may be involved in service
production
 Centralized mass production difficult
 Consumer loyalty may rest with employees
o PERISHABILITY
 Services cannot be inventoried
 Effects of seasonality can be severe
 Planning employee schedules can be
complex
o VARIABILITY
 Standardization and quality control hard to
achieve
 Services may be delivered in locations
beyond control of management
 Customers may perceive variability even
when it does not actually occur
SELECTED FACTORS AFFECTING CONSUMER PERCEPTIONS
OF SERVICE RETAILING
OVERALL CONSUMER PERCEPTIONS OF SERVICE
RETAILING
- Retailer understanding of consumer needs
- Reliable self-service technologies
- Readiness to respond to a customer request
- Services performed right the first time
- Dependability in handling problems
- Services provided as promised
- Respectful contact with customers
- Information about the service
- Quality of employees
- Service quality and reliability
- The service environment
- Clarity of service benefits
- Promptness of service
- Convenience of service
SELF-CHECKOUT STATION
ADVANTAGES
o Shorter lines
o Increased speed
o Privacy
UNIT 1. CHAPTER 2 STRATEGIC PLANNING IN RETAILING
RETAIL STRATEGY
A Retail strategy would mean a clear and definite plan that
the retailer outlines to tap the market and build a long-term
relationship with the consumer.
WHY RETAIL STRATEGY?
• It provides rough analysis of requirement for different types
of
retailing.
• It outlines the goals of the retailer.
• Firm learns how to differentiate
• Retailer studies the legal, economic and competitive
environment
• Firm’s total efforts are coordinated
• Crises are anticipated and often avoided.
STEPS INVOLVED IN DEVELOPING A RETAIL STRATEGY
1. Define the business missions
2. Conduct a situation audit: Market attractiveness
analysis, competitor analysis, self-analysis
3. Identify strategic opportunities
4. Evaluate strategic alternatives
5. Establish specific objectives and allocate objectives
6. Develop a retail mix to implement strategies
7. Evaluate performance and make adjustments
STEPS IN DESIGNING RETAIL STRATEGY
I. Situation Analysis
 Organizational mission
  Ownership and management alternatives  Lower Prices
 Good/ service category  More Advertising
II. Objectives  More Promotions
 Sales  Cleaner Stores
 Profit
 Satisfaction of publics
 Image DEFINE THE MISSION OR THE PURPOSE OF THE
ORGANIZATION
III. Identification of consumers The mission statement is a statement of the long term
 Mass Marketing purpose of the
 Concentrated Marketing organization
 Differentiated Marketing A retailer’s mission statement would normally highlight the
IV. Overall strategy following
 Controllable variables elements:
 Uncontrollable variables 1. The products and services that will be offered
V. Specific activities 2. The customer who will be served
 Daily and short-term operations 3. The geographic areas that the retailers chooses to be in
 Responses to environment 4. The manner in which the firm intends to compete in its
VI. Control chosen markets
 Evaluation
 Adjustment
SOME RETAILER’S MISSION STATEMENTS
KEY ELEMENTS IN RETAIL STRATEGY SM SUPERMALLS
• TARGET MARKET MISSION-VISION
 The market segment(s) toward which the SM Supermall aims to become Asia’s most popular mall chain
retailer plans to focus its resources and through constant innovation and partnership with the world’s
retail mix. best retailers.
• RETAIL FORMAT We provide the family fun mall experience that makes every
day better for all
 The nature of the retailer’s operations – its
Together with our partnership and employees, we commit to
retail mix
a better quality of life for the communities we serve by
• SUSTAINABLE COMPETITIVE ADVANTAGE
supporting programs
 An advantage over the competition
ROBINSONs department store
Mission - Provide an exciting shopping experience through
product assortment and customer service that will not only
CRITERIA FOR SELECTING A TARGET MARKET
satisfy but surprise.
• Attractiveness: Large, Growing, Little Competition→ More
Vision -To be THE ENABLER that allows you to enjoy life the
Profits
way you want it
• Consistent with your competitive advantage.

OUR VISION
SOURCES OF COMPETITIVE ADVANTAGE
Gaisano Capital envisions itself to be a quality retail chain of
(MORE SUSTAINABLE)
stores of goods and products, reasonably priced and with the
• Location
value for money, catered to the community it serves taking
• Customer Loyalty
into consideration their convenience and comfort in the
• Customer Service
shopping of their needs in the store(s)..
• Exclusive Merchandise
• Low Cost Supply Chain Management
• Information Systems MARKET FACTORS
• Buying Power with Vendors o Market Size – Large markets attractive to large retail
• Committed employees. firms.
(LESS COMPETITIVE) o Growth – Typically more attractive than mature or
 Better Computers declining.
 More Employees o Seasonality – can be an issue as resources are
 More merchandise necessary during peak season only.
 Greater Assortments
 o Business cycles – retail markets can be affected by o New retail formats directed at new market segments
economic conditions by developing new products

COMPETITIVE FACTORS SET OBJECTIVES

o Competitive Rivalry
o Defines the frequency and intensity of reactions to
actions undertaken by competitors
o Conditions leading to intense rivalry: a large number
of same size retailers, slow growth, high fixed costs,
a lack of perceived differences between competing
retailers
o Objectives helps mold a strategy and translates the
organizational mission into action.
These objectives can be
Sales (growth, market share)
Profit (level, ROI, efficiency)
Satisfaction of publics (stockholders and consumers)
Image (Customer and industry perception)

QUESTIONS FOR ANALYZING THE ENVIRONMENT POSITIONING APPROACHES

o New Developments or changes – technologies,
regulations, social factors, economic conditions
o Likelihood changes will occur
o Key factors determining change
o Impact of change on retail market firm, competitors
PERFORMING A SELF-ANALYSIS
o At what is our company good?
o In which of these areas is our company better that
our competitors?
o In which of these areas does our company’s unique
capabilities
o provide a sustainable advantage or a basis for
developing one?
o Mass Retailer is a positioning approach whereby
retailers offer a discount of value-oriented image, a
wide or deep merchandise selection and large store
facilities.
o Differentiated Retailer positioning approach is when
retailer segments the customers in cluster and targets
each segments with a different approach.
o Niche Retailer approach is when retailers identify
specific customer segment and deploy unique strategies
to address the desires of these segment than the mass
market
IMAGE AND POSITIONING
o An IMAGE represents how a given retailer is
perceived by consumers and others.

SELECTED RETAIL POSOTIONING STRATEGIES

MARKET PENETRATION
o Increase the basket size
o Increase the customers
o Increase the purchase frequency

MARKET DEVELOPMENT
o New Market segments with existing formats
o New customer base

RETAIL FORMAT DEVELOPMENT

o Introducing new formats for exiting customers
IDENTIFICATION OF CONSUMER CHARACTERISTICS AND
o Develops a new retail format with a different retail
NEEDS
mix
STRATEGIC MASS CONCENTRATE DIFFERENTIATE
for the same target market IMPLICATIONS MARKETIN D MARKETING D MARKETING
o Multi-channel retailing G
RETAILER’S Near a Near a small Near a large
DIVERSIFICATION LOCATION large or medium population
 population population base
base base
GOODS/ Wide Deep Distinct
SERVICES assortmen assortment of goods/Services
t of high quality or aimed at each
medium low quality segment
quality items
items
PRICE Popular High or low High, Medium
ORIENTATIO prices and low
N
STRATEGY General Specific Specific
PROMOTION Mass Direct mail/ Different
EFFORTS advertising subscription media for each
segment
LOCATION
RETAIL MIX o What are the three most important things in retailing?
Retail strategy o Location, Location, Location!
- Location o Location is a competitive advantage
- Merchandise Assortment o A high density of starbucks stores
- Pricing o Creates a top-of-mind awareness
- Communication Mix o Makes it very difficult for a competitor to enter
- Store Design and Display a market and find a good location
- Customer Service
OVERALL STRATEGY
OBTAIN AND ALLOCATE RESOURCES NEEDED TO COMPETE CONTROLLABLE VARIABLES
o HUMAN AS WELL AS FINANCIAL o Store Location
o Managing Business
VENDOR RELATIONSHIPS o Merchandise Management
o Low Cost – Efficiency through coordination o Pricing
o Electronic Data Interchange (EDI) o Communicating with customers
o Collaborative Planning and Forecasting to o Consumer
Reduce Inventory and Distribution Costs o Competition
o Exclusive Sales of Desirable Brands o Technology
o Special Treatment o Economic Conditions
o Early Delivery of New Styles o Seasonality
o Shipment of Scare Merchandise o Legal Restrictions
o Store Location – General location and specific site,
HUMAN RESOURCES MANAGEMENT competitors, transportation access, population
o “Employees are key to build a sustainable density, type of neighborhood, nearness to
competitive advantage” suppliers. Build/Buy/Rent
o Strategies for Recruiting and Retaining Talented o Managing Business – Human resource management
Employees. and operations management
o Employee Branding o Employee hiring, training, compensation,
o Develop positive organizational culture supervision, rewards
o Financial dynamics involve asset management,
budgeting, resource allocation
o Store size and format, personnel use, store
maintenance, energy management, store
security, insurance, credit management,
computerization and crisis management
o Merchandise Management and Pricing
o Width and depth of merchandise
o Quality of goods and services offered
 o Buying decisions  Availability of desirable areas and sites
o Budgeting, forecasting, retail accounting, level of  Leasing/ purchase terms
inventory  Level of transportation facilities
o Pricing techniques and range of price.  Hours of operation
 Operations Factors
LEGAL ENVIRONMENT AND RETAILING  Availability and caliber of personnel
 STORE LOCATION  Appropriate management style
 Zoning laws  Facilities (e.g. availability of Air-
 Environmental laws conditioning)
 Direct selling laws  Expected pilferage rates
 Local ordinances  Merchandising factors
 Leases and mortgages  Width and depth of assortment
 Merchandise quality
 Level of innovativeness
 MERCHANDISE MANAGEMENT AND PRICING  Availability and caliber of suppliers
 Trademarks  Inventory control
 Merchandise restrictions  Pricing factors
 Product liability laws and sales taxes  Level
 Sale prices  Use of set pricing versus negotiable
 MANAGING THE BUSINESS pricing
 Licensing provisions  Typical purchase terms
 Personnel laws  Image and promotion factors
 Antitrust laws  Store atmosphere
 Franchise agreements  Interior layout and displays
 Business taxes  Advertising
 Recycling laws  Personal selling
 COMMUNICATING WITH THE CUSTOMER
 Truth-in-advertising and selling laws GLOBAL GROWTH OPPORTUNITIES
 Truth-in-credit laws • Increasing operating costs
 Telemarketing laws • Lack of managerial talent
 Labeling laws • Underdeveloped and inefficient supply chain
• Prefers small family-owned stores
FACTORS TO CONSIDER WHEN ENGAGING IN GLOBAL • Restricts foreign investments
RETAILING
INTERNATIONAL RETAILING STRATEGY KEY TO SUCCESS IN GLOBAL RETAILING
 Institutional Factors • Globally sustainable competitive advantage
 Ownership form • Low Cost, Efficient operations
 Goods/service category • Strong private label brands
 Existing channels of distribution • Fashion reputation
 Level of competition • Category dominance
 Level of technology (e.g. media, • Adaptability
transportation network) • Global culture
 Government restrictions • Financial resources
 Desirability of a standardized approach
 Consumer Factors
 Retailing preferences INTEGRATING OVERALL STRATEGY
 Population trends Elements are coordinated to have a consistent, integrated
 Predominant language strategy and to systematically account for uncontrollable
 Level and distribution of income variables.
 Level of literacy/ education
CONTROL
 Cultural values and life-style patterns
RETAIL AUDIT
 Store Location Factors
FEEDBACK