Retail strategy-

-sustainable competitive advantage-strategic retail planning process

Retail strategy

Retail strategyDefinitionA marketing plan that details how a business intends to offer its products or services to consumers and influence their purchases. For example, a typical retail strategy might illustrate how best to place and display a company's products in retail outlets and how to attract optimal consumer interest at those locations with such things as price discounts, placement, retailer incentives and signs.

We know the definition but do we know the

meaning of it….???

The concept of retail• Retail is the sale of goods and services from

individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as for the public

Retail market strategy• A retail marketing strategy refers to how a store

and its products sell goods to its target customers.

• Each type of retail business has to make decisions about all the details of its marketing mix.

• A marketing mix consists of the product, price, place, promotion and packaging

• Internet marketing strategies and those for stores that people shop at in person must be developed to meet the needs of potential customers.

• A retail marketing strategy is first outlined in a business plan.

Retail market strategy• A business plan contains information about the

intention and goals of the company. It's created before a business opens.

• Business plans include research about who are the company's potential customers and what are their needs and wants

• A retail marketing strategy should be a part of the business plan. It should include decisions about the marketing mix approach, such as how customers will get the products.

A place where all 4 p’s of marketing can be

seen

Retail marketing mix

Starbucks Coffee shops are almost always

strategically placed to ensure a competitive

advantage.

Competitive advantage meaning

• Firms can obtain a competitive advantage by implementing value-creating strategies, not simultaneously being implemented by any current competitor. These strategies need to be rare, valuable, and non-substitutable.

• Sustainable, competitive advantages are advantages that are not easily copied and, thus, can be maintained over a long period of time. The competition must not be able to do it right away or it is not sustainable.

• Developing a sustainable, competitive advantage requires customer loyalty, a great location, unique merchandise, proper distribution channels, good vendor relations, a reputation for customer service, and multiple sources of advantage.

The link of strategic advantage with competitive Advantage

• The strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

• It is an advantage (over the competition), and must have some life; the competition must not be able to do it right away, or it is not sustainable.

The superior performance

• It is an advantage that is not easily copied and, thus, can be maintained over a long period of time

• competitive advantage is a key determinant of superior performance, and ensures survival and prominent placing in the market.

• Superior performance is the ultimate, desired goal of a firm; competitive advantage becomes the foundation.

• It gives firms the ability to stay ahead of present or potential competition and ensure market leadership.

Sustainable competitive advantage• Customer Loyalty: Customers must be committed to buying

merchandise and services from a particular retailer. This can be accomplished through retail branding, positioning, and loyalty programs. A loyalty program is like a "Target card." Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer’s needs and wants outside of Target. This will entice Target to offer products that they do not have in stock. Target tracks all sales done on their cards. So, Target can track customers who use their card at other retailers and compete by providing that merchandise as well.

• Location: Location is a critical factor in a consumer's selection of a store. Starbucks coffee (shown here Figure 1) is an example. They will conquer one area of a city at a time and then expand in the region. They open stores close to one another to let the storefront promote the company; they do little media advertising due to their location strategy.

Sustainable competitive advantage• Distribution and Information Systems: Walmart

has killed this part of the retailing strategy. Retailers try to have the most effective and efficient way to get their products at a cheap price and sell them for a reasonable price. Distributing is extremely expensive and timely.

• Unique Merchandise: Private label brands are products developed and marketed by a retailer and available only from the retailer. For example, if you want Craftsman tools, you must go to Sears to purchase them.

Sustainable competitive advantage• Vendor Relations: Developing strong relations with

vendors may gain exclusive rights to sell merchandise to a specific region and receive popular merchandise in short supply.

• Customer Service: This takes time to establish but once it's established, it will be hard for a competitor to a develop a comparable reputation.

• Multiple Source Advantage: Having an advantage over multiple sources is important. For example, McDonald's is known for fast, clean, and hot food. They have cheap meals, nice facilities, and good customer service with a strong reputation for always providing fast, hot food.

Strategic retail planning process

Developing the

mission

R

Establishing

objectives

E

Situational analysis

T

Identifyng strategic alternativ

e

A

Selecting the target

market

I

Obtaining resources needed to compete

L

Retail planning process

step 1 developing mission

Step 2 establishing objective example of reliance fresh

Step 3 situational analysis example the swot analysis

Step 4 identifying strategic alternatives

Step 4 identifying target market

Target market

Step 5 obtaining resources needed to compete