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Retailing Strategy &

Retail Marketing mix

Presented by - Group No 6

Welingkar Institute of Management Studies


Content

• Executive Summary
• Definition of Strategy
• Strategy from Retail perspective
• Strategic planning process
• Growth strategy
• Concept of Branding
• Concept of Retail Branding
• Retail Value Chain

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Executive Summary
– Strategy which involves the plan of
action to achieve the target.
– The steps involved in strategic
planning – defining the mission,
analyzing the situation, identifying
the options, setting objectives,
obtaining and allocating the
resources and developing and
implementing the plan.
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Executive Summary
– The Retail Marketing Mix - 7 P’s of
Retailing These are the Product, the Price,
the Place, the Promotion, the Presentation,
the Process, the People
– The importance of retailing, its expansion/
growth opportunities, branding, and
developing the retail value chain.

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Strategy
• The word Strategy comes from ancient Greece,
A strategos means an Army General
• Strategy refers to a plan of action designed to
achieve a particular goal
• “Strategy is about being different, It means
deliberately choosing a different set of activities
to deliver unique mix of value”- Michel Porter

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Strategy

• Three value disciplines to form basis


of strategy by Treacy and Wierseman
are
– Operational Excellence

– Customer Intimacy

– Product Leadership
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Strategy- The Retail
Perspective
• Retail strategy is defined as- “A clear
and definite plan that the retailer
outlines to tap the market and build
a long term relationship with the
consumer”

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Strategy- The Retail
Perspective
• Primary areas whose strategy is
based on Retail Strategy are:
• Store Location

• Merchandising

• Pricing

• Communication

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Steps involved in developing
a Retailing Strategy

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Establish Mission
• Mission statement is a statement of long term purpose of the
organization, describes what retailer wishes to accomplish and
market in which he chooses
• Mission statement normally highlights following elements
- The products and services that will be offered
- Customer who will be served
- Operational geographic area
- Manner in which firm intend to compete
• Eg- Café coffee day- To be the best café chain in the country
by offering world class coffee experience at affordable price

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Analyze situation
• Once the mission statement is defined organization
has to look on for its strength weakness and the
competitive environment around
• There are various models which has been developed
by experts for situation analysis they are
- PEST analysis
- SWOT analysis
- BCG matrix
- Porter 5 forces Model

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Identifying options/Strategic
Alternatives
• This involves evaluating various alternative by
using Ansoff matrix.
• Ansoffs matrix involves following options:
- Market Penetration
- Market Development
- Retail Format Development
- Diversification

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Ansoff Model
Market Segment

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Set Objectives
• Objective should be:
• Measurable
• Time bound
• Specific
• Two important areas for determining
Objectives:
• Market performance
• Financial Performance

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Obtain and Allocate
Resources
• Major resources to be obtained are:
• Financial resources - Rent, Salaries
Payments to vendors, etc
• Human resources – Recruiting,
Selecting, Trainning, Compensating and
Motivating

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Develop & Implement the
Plan
• Involves setting of objectives in
Target Market and Retails Mix for
servicing the target customer
• Target Market – Segment of consumer
market which retailer decides to serve
• Segment - Measurable, Accessible,
Economically Viable & Stable
• Retail Mix – Includes Merchandising mix,
Pricing policy, Location, Services offered
and communication platform

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7 P’s of Retailing

Presentat
ion
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Product
• Product is termed as Merchandise
– Merchandise line consist of group of product
closely related, intended for same end use & sold
to same customer group
– Variety - Number of different lines that retailer
stocks
– Assortment - Number of different brands in
merchandise line
– Depth - is referred to average no of stock keeping
units with in each brand of merchandise line

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Price
• Pricing policy depends on:
• Customer profile
• Range of products
• Uniqueness
• Key elements for pricing are
• Costs
• Profitability
• Value for money
• Competitiveness
• Incentives
• Quality
• Status

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Place
• Key elements for selecting a place are
– Target market
– Channel structure
– Channel management
– Retailer image
– Retail logistics
– Retail distribution
– However now place is no more a prime factor in
retailing mix as new technologies like internet
retailers are going for click and mortar approach

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Promotion
• Key elements of promotion includes
– Developing promotional mixes
– Advertising management
– Sales promotion
– Sales management
– Public relations
– Direct marketing

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Presentation
• This includes:
• Store layout
• Ambience
• Visual Merchandising

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Customer service (Process)
• Key elements include
– Order processing
– Database management
– Service delivery
– Queuing system
– Standardisation
– Credit policy

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People
• The people at front end are face of the
organization - Their attitude, behavior
,manners and product knowledge play a
very important role in the long term
relationship with customer
• The key elements are
• Staff capability
• Efficiency
• Availability
• Effectiveness
• Customer interaction

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Evaluate and control
• Evaluation is done to :
• Measure Success of the strategy
• To measure effectiveness of the
strategy periodically
• This evaluation guarantees the firm’s
plan does not degenerate in fragments
and
• Efforts are in harmony with overall
competitive strategy of business.

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Growth Strategy
• Method of Growth for a retailer:
– Export- selling domestic product internationally
– Franchising/Licensing
– Acquisition and Merger
– Joint Venture
– Organic Growth- replicating the retail format in
the non domestic market, within the regulatory
framework of new market

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Branding
– Brand is a name, term, design, symbol,
or combination to identify the goods or
services
– Branding is a total experience a
customer has with a product or service
– It is every single contact that occurs
between any product and Human
representative with a customer or
potential customer.

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Retail Value Chain
– This includes:
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Service
• Procurement
• Technology development
• Human Resource Management

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Group Members
Manoj Ailani       
6
Yashwant Baviskar
16
Amit Dhar
26
Mun Mun Gentle
36
Abhijit Jaktdar
46
Atul Lamane
56
Rahul Mudaliar  
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Thank
you
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