Retail Market Stratetegy final 5th july.pdf

7/29/2019 Retail Market Stratetegy final 5th july.pdf

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Retail Market

Strategy


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Strategy

Retailers Talk About A Lot of Different

Strategies

Sales Strategy

Marketing/Advertising Strategy

Merchandise Strategy

Location Strategy


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What is Strategic Planning?

It is the managerial process that helps to develop a

strategic and viable fit between the firms objectives,

skills, resources with the market opportunitiesavailable.

It helps the firm deliver its targeted profits and

growth through its businesses and products.


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Strategic Planning calls for

Action in three key areas?

1. Managing a company's businesses as an

investment portfolio.2. Assessing each business's strength by considering

the market's growth rate and the company's

position and fit in that market.

3. Establishing a strategy For each business.


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Developing Marketing

Strategies and Plans

A strategy is a theory about how to gain competitive

advantages. A good strategy is a strategy that

actually generates such advantages.

Strategic management is the process of specifying

an organizations objectives, developing policies and

plans to achieve these objectives, and allocating

resources so as to implement the plans.


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Strategic Goals and Plans

Strategic Goals

Where the organization wants to be in the future

Pertain to the organization as a whole

Strategic Plans

Action Steps used to attain strategic goals

Blueprint that defines the organizational activitiesand resource allocations

Tends to be long term


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Levels of a Marketing Plan

Strategic

Target marketing

decisions

Value proposition

Analysis of marketing

opportunities

Tactical

Product features

Promotion

Merchandising

Pricing

Sales channels

Service


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The Central Role of Strategic Planning

Companies should have the capabilities to:

1) understanding customer value,

2) creating customer value,

3) delivering customer value,

4) capturing customer value, and

5) sustaining customer value.


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Elements in Retail Strategy

Target Market

the market segment(s) toward which the

retailer plans to focus its resources and retail

mix Retail Format

the nature of the retailers

operationsits retail mix Sustainable Competitive

Advantage

an advantage over the competition


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Criteria For Selecting A Target

Market

Attractiveness -- Large, Growing, Little

Competition More Profits

Consistent with Your CompetitiveAdvantages

C A R il D l


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Can A Retailer Develop aSustainable

Competitive Advantage by: Dropping the Price of Your Merchandise?

Building a Store at the Best Location?

Deciding to Sell Some Hot Merchandise? Increasing Your Level of Advertising?

Attracting Better Sales Associates by Paying

Higher Wages?

Providing Better Customer Service?


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More attention to long-term

strategic planning than ever

before Due to the emergence of

New competitors New formats

New technologies

Shifts in customer needs


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Sources of Competitive

Advantage

More Sustainable

Location

Customer Loyalty

Customer Service

Exclusive Merchandise

Low Cost Supply Chain

Management

Information Systems

Buying Power with Vendors

Committed Employees

Less Sustainable

Better Computers

More Employees

More Merchandise

Greater Assortments

Lower Prices

More Advertising More Promotions

Cleaner Stores


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Customer Loyalty

More than simply liking one retailer over

another

Customers will be reluctant to patronize

competitive retailers Retailers build loyalty by:

Developing a strong brand for the store or

store brands Developing clear and precise positioning

strategies

Creating an emotional attachment with

customers through loyalty programs


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Retail Branding

Retail brand

Can create an emotionaltie with customers that

build their trust and

loyalty

Facilitates store loyaltybecause it stands for a

predictable level of quality

Stores use brand (stores name and store brands privatelabel brands) to build customer loyalty


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Approaches for Building

Customer Loyalty

Brand Image

Proposition

Unique Merchandise

Customer Service

Customer Relationship Management

Programs


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Creating Store Loyalty

Mental and Emotional Attachments

Elements in a Strong Brand

Top of the Mind Awareness

Associations with Brand/Store Name

Methods Used to Develop a Strong Brand

Massive Exposure

Symbols to Reinforce Image

Consistent Positioning Creating StrongAssociations

Limited Brand Extensions


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Vendor Relationships

Low Cost - Efficiency Through Coordination

Electronic Data Interchange (EDI)

Collaborative Planning and Forecasting to

Reduce Inventory and Distribution Costs

Exclusive Sale of Desirable Brands

Special Treatment

Early Delivery of New Styles Shipment of Scare Merchandise


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Human Resources

Management

Employees are key to build a sustainable

competitive advantage

Strategies for Recruiting and Retaining Talented

Employees

Employee Branding

Develop positive organizational culture


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Distribution and Info

Systems

Flow of Information

Vendor

Distribution Center

Store-Better services

-Increase in breadth and

depth-Decrease in prices

By decreasing costs here, the is

more money available to invest

in:


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Ansoffs Product-Market GridCurrent products New products

Current Mkts

New Mkts

Mkt penetrationstrategy

Mkt development

strategy

Product developmentstrategy

Diversification

strategy


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Growth Strategies

Market Penetration

Market Expansion

Retail Format Development Diversification

Related vs. Unrelated


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Market Penetration

Attract customers from target market

Get current customer to visit store more often orbuy on each visit

Cross Selling sales associates in onedepartment sell complimentary merchandisefrom other departments


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Market Expansion

Market expansion growth opportunity involves

using the existing retail format in new market

segments

Caf Coffee day new stores Abercrombie & Fitch (for college students)

opens lower-priced chain Hollister Co. for high

school students


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Retail Format Development

Develops a new retail format with a different retailmix for the same target market

Multi-channel retailing

UK based TESCO

Tesco Express: small stores located close to wherecustomers live and work

Tesco Metro: bring convenience to city centerlocation by specializing in ready-to-eat meals

Tesco Superstores: traditional stores

Tesco Extra: one-stop destination with the widestrange of food and non-food products


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Diversification

Introduces a new retail format toward a market

segment that is not currently served by the

retailer

Related diversification Unrelated diversification

Vertical integration into wholesaling or

manufacturing


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Stages in the Strategic

Retail Planning Process


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Elements in a Situation Audit


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Market Factors

Market size Large markets attractive to large

retail firms

Growth Typically more attractive than mature

or declining Seasonality Can be an issue as resources are

necessary during peak season only

Business cycles Retail markets can be affected

by economic conditions


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Competitive Factors

Barriers to entry

Scale economies of big box retailers

Service and unique, high-end products of small

retailers

Bargaining power of vendors

Markets are less attractive when only a few

vendors control the merchandise sold within it


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Questions for

Analyzing the Environment

New developments or changes --

technologies, regulations, social factors,

economic conditions

Likelihood changes will occur

Key factors determining change

Impact of change on retail market firm,

competitors


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Performing a Self-Analysis

At what is our company good?

In which of these areas is our company

better than our competitors?

In which of these areas does our companys

unique capabilities provide a sustainable

advantage or a basis for developing one?


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SWOT Analysis

Strengths

Weaknesses

Opportunities Threats


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Slide 2-34

Ben & Jerrys: a SWOT analysis to get it growing again


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Strategic Marketing Process

Process whereby an organization allocates it

marketing mix resources to reach its target

markets.

Planning

Implementation

Evaluation


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Planning PhaseSituation Analysis

This is a complete analysis of the firmssituation which assesses internal strengths andweaknesses and external threats and

opportunities (SWOT) Internal analysis (controllable factors) assess

the firm itself to identify strengths andweaknesses

External analysis (uncontrollable factors)assess the firms external environment toidentify opportunities and threats


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Planning PhaseMarketing Objectives

Specific levels of performance desired for

a product or product line to be achieved

by a given date.

Stated in terms of market share, sales,

profit

Should be measureable, attainable,

specific, and consistent with organizational

objectives


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Planning Phase: Product Positioning

The process where marketers try

to create a product image or

identity in the minds of theirtarget market relative to

competitive products.


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Implementation Phase

Process of putting the marketing

plan into action.

Involves great attention to detail


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Evaluation

Involves measuring the results of the actions

from the implementation phase and comparing

them with goals set in the planning phase.

sales analysis

market share analysis

expense to sales analysis

Documents

Retail Market Stratetegy final 5th july.pdf