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Retail Strategy is a overall plan to gain a competitive advantage through the use of distinctive retail mix to capture the patronage of one or more targets markets.
Plans are usually different for each strategic business unit ( often a chain with a separate name) within the overall retail organization
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3-Identify strategic opportunities 4-Evaluate strategic alternatives 5-Establish specific objectives and allocate resources 6-Develop a retail mix to implement strategy 7-Evaluate performance and JITENDRA KUMAR DIXIT make adjustment
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Organization Mission
All employees of a retailer (from top to bottom) need to know the organizations future direction, its core business, its core customers, its philosophy of operation. These should be able to be concisely summarized in a short mission statement. The mission statement must consider: the Retail Environment the Organizations Resources any Distinctive Competencies and Management Preferences
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Organizational Objectives
If a mission statement states what a retailer wants to be, its objectives state its measurable goals Objectives can be categorized as Market Objectives Financial Objectives Societal Objectives Personal objectives
It should be noted that the above categories of objectives are often in conflict with each other -- e.g. A goal of high sales volume is difficult to achieve with high sales margins
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Retail Objectives
Sales Volume Profitability
Market Share
Productivity
Personal Objectives
Consumer Choice
Equity
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Target Market Selection Three techniques Mass marketing Concentrated marketing Differentiated marketing
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Strategic Implications of Target Market Techniques Retailers location Goods and service mix Promotion efforts Price orientation Strategy
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Societal Objectives
Social responsibilities are becoming more important The amount of social responsibility that comes from a true concern for society versus the amount that is triggered by the desire for positive publicity and promotion (Drug store health fairs) is unknown Societal concerns often are at the expense of financial objectives
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Personal Objectives
Self-Gratification - Owners, managers, and employees will probably choose working in a retail environment they enjoy Status and Respect - Managing a store or being an employee of the month adds to individuals status and self-respect Power and authority - Retail employment usually provides for more responsibility than factory employment
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SWOT Analysis
Strengths W - What competitive advantages Weakness do our competitors have over us?
es
S-
O-
What favorable environmental trends exist that may benefit our firm? trends exist that may hurt our future performance?
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Retail Strategies
Get consumers into Store Convert potential consumers into loyal consumers Keep operating costs low while maintaining appropriate level of customer service
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Retail Strategies
Differentiate Physical difference of product Different selling process Post-purchase satisfaction specialized location never out of stock
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Mission
Social and Legal Environment: Socioeconomic Environment, State of Technology, Legal System, Ethical Behavior
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Profit
High Performance Retailing
Target Market(s) Location(s) Retail Mix Merchandise Pricing Advertising & Promotion Customer Service & Selling ,Store Social and Legal Environment: Layout & Socioeconomic Environment, State of Technology, Legal System, Ethical Behavior Design
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Controllable Variables:
Store location Managing business Merchandise management and pricing Communicating with customer
Uncontrollable Variables:
Consumers Competition Technology Economic conditions Seasonality Legal restrictions
Retail Strategy
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Growth Strategies
Target Markets Existing New
Retail Format
Existing
Market Penetration
Market Expansion
New
Format Development
Diversification (unrelated/related)
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