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8/13/2019 BBPG Retail Strategic Dell
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RETAIL STRATEGIC PLANNING
W. Frank Dell II, CMCSeptember, 2004
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DELLMART & COMPANY 2
AGENDA
INTRODUCTIONSTRATEGY
TACTICS
OPERATIONS
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Objectives
Define Retail StrategicDocument components and elements
Describe the development process
Identify common mistakes
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Strategy Definition
A plan, method or series of
maneuvers for obtaining a
specific goal or result
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DELLMART & COMPANY 5
Overview
Corporate
Goals
Strategic
Plan
Tactical
Plan
OperationsPlan
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Time Horizon
DESCRIPTION 1 2 3 4 5 6 7 8 9 10
Corporate Goals
Strategy
Tactics
Operations
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Maslow Theory
Self-
Actualization
Esteem
Love, affection &
belonging, safety
Physicological
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AGENDA
INTRODUCTION
STRATEGY
TACTICS
OPERATIONS
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What Business?
Business
Products Type
Industrial Consumer Service Wholesale Retail
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Business Goals
Sales 1 million
5 million
100 million
1 billion
Geographic
City/Region
Country Continent
World
Business
Market
Competition
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Consumer is King
The Golden Rule
He who has theGold(consumer) rules
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Which Consumer?
Buyer User/Customer
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Define the Target Market
SexAge
Education
Income
Life Style
Ethnicity
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Target Market - Sex
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Target Market - Age
Infant1 to 3Junior3 to 8
Youth8 to 12
Teen12 to 19
Young Adult19 to 30
Middle Age Adult31 to 55
Senior Adult55 to 100
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Target Market - Education
No educationElementary School
High School
College / University
Advanced Degree
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Target Market - Income
Person Vs HouseholdIncome
2,100 Rubles per month
3,500 Rubles per month 7,000 Rubles per month
10,500 Rubles per month
14,000 Rubles per month 17,500 Rubles per month
17,501 + Rubles per month
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Target Market Life Style
VegetarianDiabetic
Over-weight
Health nut
Active
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Target Market - Ethnicity
Geographic regionRace
Religion
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Target Market
Sex M F H
Age I J Y T YA MAA SA
Education No ES HS C/U AD
Income 2.1 3.5 7 10.5 14 17.5 18+
Life Style V D OW H A
Ethnicity R R R
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Factor in Trends
Aging populationGrowing Middle Class
Changing Health & Life Style
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Elements Format Size
How many formats & what size?Receiving & Backroom Processing
Merchandise Display
Office Customer Service & Checkout
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Elements - Merchandise
Reason for the storeDepartment / Category / Sub-Category
Match target customers needs & wants
Interest secondary consumers
Depth and Breath of presentations
Brands
Sizes Flavors / Styles
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DELLMART & COMPANY 24
Elements - Merchandising
RoleDestination
Routine
Occasional / SeasonalConvenience
Quality
Good
BetterBest
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Elements - Decor
FixturesLighting
Flooring
Signage
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Elements - Services
Checkout Cash
Credit & Debit card
Sales assistance
Returns
Lay-A-Way
Gift Registry
DemonstrationsSampling
Delivery
Installation
Education
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Brick Vs Click
PositivesAdditional Sales
Brand building
Reach larger targetmarket
Lower investment
NegativesDifferent business
Delivery
Divides resources
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Operating & Capital Models
Sales- Cost of Goods
= Gross Margin
- Labor & Benefits- Utilities
- Rent
- Advertising
- Taxes
= Profit
Site+ Store Construction
+ Fixtures
+ Merchandise= Capital Cost
Payback
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Validation
Target
Customer
Market
Strategy Competition
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AGENDA
INTRODUCTIONSTRATEGY
TACTICS
OPERATIONS
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Overview
Advertising
(ABC)
Advertising
(ABC) PricePrice DiscountDiscount
DisplayDisplay POPPOP SeasonSeason
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AdvertisingTelevision
MagazineRadio
NewspaperInternet
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Pricing
Hi Lo
Everyday Low Price
Seasonal
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Categories
Traffic Building - High share, frequent purchase
Transaction Building - Higher price, impulse buy
Profit Contribution - High gross margin, turns
Cash Generation - High turn, frequent purchase
Excitement CreatingImpulse, lifestyle
Image CreatingFrequent purchase & promotion
Turf DefendingCustomer draw
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Promotions
TypesUnlimited Price off
Buy one get one
Continuity
Coupons
Joint SKU
Match target consumers desires
Support strategic imageIncorporate Frequent Shopper Program
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Location, Location, Location
Where Work
Live
PlayTravel mode
Walk
Drive Public transportation
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AGENDA
INTRODUCTIONSTRATEGY
TACTICS
OPERATIONS
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Introduction
A Strategic Plan that is or can not beexecuted is only a dream
Each Department must define anaction plan to achieve the strategy
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Human Resources
AttractEducate and Train
Evaluate
Retain
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Logistics
Inbound Store Vs Warehouse Delivery
Method (truck, rail, water)
Storage & Processing Number warehouse by commodity
Location and size
Outbound Frequency, distance, temperature
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Information Technology
Hardware Processing power
Security & back up
Software
Transaction processing
Management control & reporting
Analysis and planning
Network Volume
Distance
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Commercial
Selection Categories, Sub-Categories & Items
Pricing & Promotion
Inventory TurnsMerchandise in-stock
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Finance & Accounting
Manage cashMaintain budgets and controls
Secure sufficient capital
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Summary
Corporate
Goals
StrategicPlan
Tactical
Plan
Operations
Plan
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Fatal Sins of Strategic Planning
Have a weekend retreat once a year totalk about strategy
Viewing Strategy as a diet
Develop vision, mission and/or valuestatements as fluff
Vision without action
Failing to involve all in developing an
action plan
Failing to integrate planning
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Fatal Sins of Strategic Planning
Conducting business as usual afterstrategic planning
Lacking a scorecard or measurement
Doing what is easy rather than what isimportant
Neglecting to benchmark against
competitors
Failing to make tough choices
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DELLMART & COMPANY 49
W. Frank Dell II, CMCPresident
DELLMART & Company
125 Hardesty Road
Stamford, CT 06903 USA
Tel: 203-968-8609
Fax: 203-968-8613e-mail: [email protected]
Web Site: www.Dellmart.com