PRESENTED BY: LAXMI SAGAR ROUT SANTOSH KUMAR MISHRA AVINASH MOHANTY

The key aspects of retail marketing is an attitude of mind. The essence of retail marketing is developing merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits.

The Retail Marketing strategy is similar to Marketing strategy Marketing strategy is an integral component of corporate strategy, defining how the organization will successfully engage with customers, prospects, and competitors in the market arena.  It is derived from broader corporate Strategies, corporate missions, and corporate goals

The various strands of the strategy , which include advertising, In store communication, internet Marketing, promotions and public relations can be orchestrated. Many companies cascade a strategy, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable

 Map the customer needs. Create a niche based on demand.  There are price sensitive customers and as well as customers who are willing to pay extra for Quality  Retailers cannot make sense for everything to every body. They should focus on Target Group who will respond to their USP  Every communication Every time should talk about the same positioning else it will be difficult for the customers to relate to you as a retailer and as a business  Avoid multiple channels of communication. Choose the ones with which customers engage the most. It will also help in measuring the success of your marketing mix.  Monitor constantly through interaction with customers the success of the sales pitch.  Retailers may not be able to measure success instantly but they can keep looking for signals which will tell you if you are headed in the right direction.

Marketing is more than just selling and advertising. It's about what retailers need to do to capture and keep their customers over time. Retailer’s marketing plan needs to answer the question: Why am I in business ? What do customers want ? and Why will customers buy from me and not my competitors? Developing the marketing plan covers four main aspects:  Market research.  Marketing goals.  Marketing strategies.  Monitor and control.

Before developing the marketing goals and strategies retailers need to identify what are the most promising Retail opportunities they should pursue. They need to consider: Products and Service Retailers should analyze their product/service offered from the customer point of view. Ask themselves what: benefits are they offering to customers? which ones will be most valued by customers? Do customers look for a wider choice or a sharper price in their context ? What constitutes Quality as in Consumers perception ? How much more they are willing to pay for Exceptional Service? Can they differentiate with Better Service ?

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Market Understand the market and identify factors which will impact on the business. Aspects to consider:  What is its size and is it growing or shrinking?  Where are the target customers located?  What are its characteristics, eg. gender, aspirations, ability to pay?  Whether changing social trends and attitudes could affect the business?

Customers Once retailers have researched the market they can define the specific segments where intend to target. Market segments are groups of customers who share similar attributes and attitudes      Purchasing power location (distance, Neighborhood type) gender ethnic identity ( South Indians, Bengalis, Expatriates) attitudes ( frequent shoppers ,treasure hunters, discount seekers) and  attributes (Washing Machine owners, car owners)  Shopping trip Retailers need to understand the factors that will drive their customers to buy products at your store

Competitors
Identify both direct competitors (those selling the same products in similar retail format) and indirect competitors (those offering same products but in different format). Information they need to know about competitors includes: What exactly they offer their customers ? How well established they are and their reputation? Their strengths and weaknesses and what makes them successful? Their pricing? Their Promotion strategies What’s the level of service customers get at your competitors store

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Market Research Sources       Competition Shopping Market Survey Consumer research Exit interviews at competitor locations Published data Discussions with Suppliers

SWOT Analysis Using the information collected retailers should undertake a SWOT analysis to help them determine their marketing goals. SWOT involves assessing:     Strengths you should build on Opportunities you should exploit Weaknesses you need to overcome Threats you need to manage

The marketing goals build on your broader business objectives and specify:     What product/service you will offer for which market segments ? What key benefits you will offer – Customization, Service, Ambience? How you will gain a competitive advantage – Price, Quality, design ? What specific targets you aim to meet over what time frame- market share, revenue, Footfalls ? The marketing goals should pass the SMART test:

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S - Specific M - Measurable A - Achievable R - Realistic T - Time bound

Based on Market Dominance
 Leader  Challenger  Follower

Based on Competitive Advantage
 Price leadership  Product differentiation  Market segmentation

Based on Innovation
 Pioneers  Followers

To put the goals into action retailers need to develop specific strategies to achieve them. Key aspects that need to be covered regardless of what the strategy is :  Product The product offering including width of assortment, quality, packaging, guarantees, after-sales service.

 Price The pricing policy – cost plus or consumer facing, target margins including mark downs The pricing should be based on a realistic assessment of all your costs and taking into account what the market will bear and the image you are trying to create.
 Promotion The approach will depend on the nature of your business and can include new arrivals, buy one get one, flat discounts selling, cross category promotions, loss leaders, competition based.  Place How you will advertise – Posters, Banners, In Store Communication, Print or electronic Media, Newspaper Flyers. It is important to use the correct medium irrespective of the cost. There is no point using a medium with which your customers do not relate as there will be no impact of such communication.

 Marketing is a necessary cost to the business and retailers should set a marketing budget, including monthly cash flow, as part of their business plan.  Measuring the results of the marketing activities will ensure to get value for the marketing investment.  Assessing an increase in revenue or customer numbers as a result of promotional activities allows retailers to decide what activities give them the best return.

Ander and Stern’s book Winning at Retail puts forward a model designed by Norm McMillan and Sid Doolittle, that can steer a retailer towards success. The cornerstone of this new model is the Est model of retail success. The Est model guides retailers towards making their firms the best in one of five essential areas:  1. Cheap- Essentially: Winning with Price  2. Big- Essentially : Winning with Dominant Assortments  3. Hot- Essentially: Winning with Fashion  4. Easy- Essentially: Winning with Solution –Oriented Service  5. Quick- Essentially : Winning with Fast Service

 Market Identification  Determining the Market Potential  Identify Alternate Sites  Select the Best Site

Step-1: Market identification-

Identify the market in which to locate the store

Step-2: Determining the Market Potential-

 Demographic Features of Population
    Characteristics of households in the Area Competition & Compatibility Laws & Regulations Trade Area Analysis

Step-3: Identify Alternate Sites & select the Site Traffic
 Accessibility of the Market  Total No. of Stores & the Type of Stores in the Area

 Amenities Available  To Buy or to Lease  Product Mix offered

CENTRAL PLACE THEORY SPATIAL INTERACTION THEORY LAND VALUE THEORY

IT WAS CREATED BY GERMAN GEOGRAPHER WALTER CHRISTALLER IT IS A GEOGRAPHICAL THEORY THAT SEEKS TO EXPLAIN THE NUMBER, SIZE AND LOCATION OF HUMAN SETTLEMENT IN AN URBAN SYSTEM SETTLEMENT SIMPLY FUNCTION AS CENTRAL PLACE PROVIDING SERVICES TO SURROUNDING AREAS.

Threshold

Market Range

HUFF WAS FIRST TO THIS THEORY DISCARD ASSUMPTION MADE BY CENTRAL PLACE THEORY OF CENTRAL PLACE. LAW OF RETAIL GRAVITATION

ALSO KNOWN AS BID RENT AND URBAN RENT THEORY. DEVELOPED BY ALONSO IN1964 LOCATION OF VARIOUS RETAIL FORMATS DEPED ON THE COMPETITIVE BIDDING FOR A PARTICULAR SITE.