elements of retail strategy
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ELEMENTS OF RETAIL STRATEGY
SITUATION ANALYSIS
Identification of consumers
OverallStrategy
Control
Objective
Specific
Activities
Mission, Ownership & Mgt.Alt, Goods & service category
Sales , Profit , satisfaction of Publics, Image
Mass Mktg. ,Mkt. Segmentation, Multiple segmenttation
Controllable & uncontrollable variables
Daily &short term operationsResponse to Env.
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
Durable Goods store
Nondurable goods store
Automotive Group
Furniture, Appliances.
Jewelry , Hardware etc.
Apparel GroupFood Group
General merchandise groupEating & Drinking place
Petrol pumpDrug store
Liquor store.
SERVICE CATEGORY
Personal services
Amusement services
Repair services
Hotel services
Laundries & Dry-cleaningBeauty/Barber shopsPhotographic studies
Funeral servicesHealth-care services.
Movie theatresDance hallsGolf course
Skating rinksAmusement parks
Coin-operated game arcades
Automobile repairsCar washes
Consumer electronic repairsAppliance repairs
Watch & jewelry repairs
HotelsMotelsCamps.
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
Controllable variables:Store location
Managing a businessMerchandise Mgt. & Pricing
Communication with customer
Retail
Strategy
Uncontrollable Variables:
Consumers
Competition
Technology
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 objectivesIdentifying the target MktDeciding the broad directionImplementing 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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