The steps in planning and enacting a retail

strategy
1. Situation Analysis
2. Objectives
3. Identification of Consumers
4. Overall strategy
5. Specific activities
6. Control

SOLE PROPRIETORSHIP
Is an unincorporated retail firm owned by
one person. All benefits, profits, risks, and
costs accrue to that individual.
PARTNERSHIP
Is an unincorporated retail firm owned by
two or more persons, each with a financial
interest. Partners share benefits, profits,
risks, and costs. Advantages include the
following: Responsibility and expertise are
divided among multiple principals, there is a
greater capability for raising funds than with
a proprietorship, the format is simpler to
form than a corporation, and it is subject to
single taxation by the government.
CORPORATION
Is a retail firm that is formally incorporated
under state law. It is a legal entity apart from
individual officers (or stockholders).

Selected kinds of retail goods and Service

Establishments

Personal Abilities
Financial Resources
Time Demands

Retailer objectives
Sales
Profit
Satisfaction of Publics
Image Positioning
three aspects of a value-oriented retail
strategy
EXPECTED RETAIL STRATEGY -
represents the minimum value chain
elements a given customer segment store
cleanliness, convenient. hours,
well-informed employees, timely service,
popular products in stock, parking, and
return privileges.
AUGMENTED RETAIL STRATEGY -
includes the extra elements in a value chain
that differentiate one retailer from another.
The following are often augmented
elements: exclusive brands, superior
salespeople, loyalty programs, delivery,
personal shoppers and other special
services, and valet parking
POTENTIAL RETAIL STRATEGY -
comprises value chain elements not yet
perfected by a competing firm in the
retailer’s category. For example, what
customer services could a new upscale
apparel chain offer that no other chain
offers?
CLASSIFYING CUSTOMER SERVICES
-basic -extended -above and beyond
five types of reward categories
1. Economic rewards include price
reductions and purchase vouchers.
These rewards attract price-sensitive
customers and induce them to buy
more. Dunkin Donuts DDPerks
program members receive a free
beverage after earning 200 Points
2. Hedonistic rewards include things
such as points that can be
exchanged for spa services or
participation in games or
sweepstakes. These rewards have
more emotional value and will attract
people who shop for pleasure.
3. Social-relational rewards include
things such as mailings about
special events or the right to use
special waiting areas at airports.
Consumers who want to be
identified with a privileged group will
value these kinds of rewards.
4. Informational rewards include things
such as personalized beauty advice
or information on new goods or
services. These rewards will attract
consumers who like to stick with one
brand or store.
5. Functional rewards include things
such as access to priority checkout
counters or home delivery.
Consumers who want to reduce the
time they spend shopping will value
these most
Customer satisfaction occurs when the
value and customer service provided
through a retailing experience meet or
exceed consumer expectations. If the
expectations of value and customer service
are not met, the consumer will be
dissatisfied.
There are three basic kinds of service
retailing:
Rented-goods services, whereby
consumers lease and use goods for
specified periods of time. Tangible goods
are leased for a fixed time, but ownership is
not obtained and the goods must be
returned when the rental period is up
Owned-goods services, whereby goods
owned by consumers are repaired,
improved, or maintained. In this grouping,
the retailer providing the service never owns Selected Kinds of Retail Goods and Service
the good involved. Establishments
● Personal abilities
Nongoods services, whereby intangible ● Financial resources
personal services are offered to consumers ● Time Demands
who then experience the services rather
than possess them. The seller offers Objectives
personal expertise for a specified time in SALES
return for a fee; PROFIT
SATISFACTION OF PUBLICS
Unique characteristics IMAGE POSITIONING
Intangibility
Inseparability
Perishability
Variability

social responsibility acts in the best

interests of society—as well as itself. The
challenge is to balance corporate citizenship
with a fair level of profits for stockholders,
management, and employees.

Consumerism involves the activities of

government, business, and other
organizations to protect people from
practices infringing on their rights as
consumers

One major law is the Americans with

Disabilities Act (ADA),

Checklist to start a new business

● Self assessment and business
choice
● Overall retail plan
● Financial plan
● Organized detailed plan