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Elements of Retail Strategy

This document outlines the key elements of developing a retail strategy, including: 1) Conducting a situation analysis to evaluate opportunities and challenges, define the organization's mission and values, and determine the appropriate goods/services to offer. 2) Identifying target consumer groups through market segmentation and setting objectives around sales, profits, and stakeholder satisfaction. 3) Developing an overall strategy that considers controllable factors like location, operations, and pricing alongside uncontrollable external factors. 4) Implementing specific strategic activities and responding dynamically to the changing retail environment through ongoing evaluation and adjustment of the strategy.

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Shagufta Khan
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7K views27 pages

Elements of Retail Strategy

This document outlines the key elements of developing a retail strategy, including: 1) Conducting a situation analysis to evaluate opportunities and challenges, define the organization's mission and values, and determine the appropriate goods/services to offer. 2) Identifying target consumer groups through market segmentation and setting objectives around sales, profits, and stakeholder satisfaction. 3) Developing an overall strategy that considers controllable factors like location, operations, and pricing alongside uncontrollable external factors. 4) Implementing specific strategic activities and responding dynamically to the changing retail environment through ongoing evaluation and adjustment of the strategy.

Uploaded by

Shagufta Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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ELEMENTS OF RETAIL

STRATEGY
Mission, Ownership & Mgt.Alt, Goods & service category
SITUATION ANALYSIS

Sales , Profit , satisfaction


Objective of Publics, Image

Mass Mktg. ,Mkt. Segmentation, Multiple segmenttation


Identification of
consumers

Overall Controllable & uncontrollable variables


Strategy

Specific Daily &short term operations


Response to Env.
Activities

Control

Evaluation , Adjustment
SITUATION ANALYSIS
Evaluation of the opportunities & Potential
Problems facing a prospective or existing
retailer.
It seeks to answer two general questions:
What position or status is the firm now? In
which direction should it be heading?
For a retailer it means defining the Org.
Mission ,evaluation of ownership & Mgt.
options, and outlining the goods & service
category to be sold.
Organization Mission

It reflects the firms attitude to


consumers, employees, competitors,
Govt. & others.
A firms mission includes a long term
commitment to a type of business & a
place in the market.
One key decision is whether to base its
business around goods & services sold
or around customer needs.
Second major decision for a retailer is whether
it wants a place in the market as a leader or
follower.
Third important decision involves a retail firm’s
market scope. Although a large chain can
seek a broader customer base
( because of its resources & recognition), it is
usually best for a small retailer-and most start
ups – to focus on a narrow customer base.
By concentrating its efforts, a small company
can usually compete quite effectively with
larger firms.
OWNERSHIP & MGT.
ALTERNATIVES
A very essential part of situation
analysis is the assessment of
ownership and management
alternatives.
Sole proprietorship
Partnership
Corporation.
GOODS & SERVICE CATEGORY
Automotive Group

Durable Goods store Furniture, Appliances.


Jewelry , Hardware etc.

Apparel Group
Nondurable goods Food Group
store General merchandise group
Eating & Drinking place
Petrol pump
Drug store
Liquor store.
SERVICE CATEGORY
Laundries & Dry-cleaning
Beauty/Barber shops
Photographic studies
Funeral services
Personal services Health-care services.

Movie theatres
Dance halls
Amusement services Golf course
Skating rinks
Amusement parks
Coin-operated game arcades

Automobile repairs
Repair services Car washes
Consumer electronic repairs
Appliance repairs
Watch & jewelry repairs

Hotel services
Hotels
Motels
Camps.
OBJECTIVES

Sales objectives : Volumes


Profit
Satisfaction of Publics (stack holders,
consumers, suppliers, employees and
Govt.).
Image (Positioning)
IDENTIFICATION OF CONSUMER

The customer group that a retailer


seeks to attract and satisfy is called
the target market.
Mass Mkt.
Market segment
Multiple segment.
OVERALL STRATEGY

Uncontrollable Variables:
Consumers
Controllable variables:
Store location Retail Competition
Managing a business Technology
Merchandise Mgt. & Pricing Strategy
Communication with customer Economic conditions
Seasonality
Legal restrictions.
Choosing a store location

Competitors
Transportation access
Population density
Type of neighborhood
Nearness to suppliers
Pedestrian traffic and
Store composition.
Managing a business

Involves two major elements:


The Retail Organization & The HR Mgt.
Operations Mgt.: efficiently & effectively
performing the task.
Tasks, Policies, resources, authority,
responsibility and rewards are outlined
via a retail organization structure.
Merchandising Mgt. & Pricing

The General qty. of the goods and/ or


services offered must be determined.
Decisions about width & depth of
assortment.
Decision about level of inventories.

PRICING :Leader/ follower, cost plus/


demand oriented etc.
Strategy
To attain and maintain a long run success ,
a retail firm’s strategy must anticipate and
plan for the changing env. In particular , the
firm should carefully identify the
opportunities & threats that are evolving.
SWOT.
Strategic Planning in retailing: Trends in
the consumer demographic , consumer
lifestyles, ethics & social responsibility,
technology, retail institutions and the
international dimensions of retailing are
discussed.
Demographics
Population Size & Age Distribution
No. of Households
Population Mobility
Location of Mobility
Working Women
Income
Life style trends
Gender Roles
Consumerism
Technology

E-Banking
Video Ordering system
Retail Strategies
Defining the business of the firm.
Setting short term & long term objectives
Identifying the target Mkt
Deciding the broad direction
Implementing an integrated plan that
encompasses all aspects of retailing like
pricing, location, and channel decision.
Evaluating and revising the plan depending
on the nature of the internal & external env.

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