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Retail Marketing Retail Marketing Strategy Strategy  Vivek  Viv ek Anan d  Anand

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Retail MarketingRetail Marketing

StrategyStrategy Vivek Vivek Anand Anand

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DETERMINING THE COMPETITORS

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I. POSITIONING: SHOPPERS¶ STOP

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WestsideWestside

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END OF SEASON SALE

depicted on a bright red background along with the sale periodduration as well as maintaining its position of being a fashionable store..

IV. PROMOTION: LIFESTYLE

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The Retail Marketing strategy is similar toThe Retail Marketing strategy is similar to

Marketing strategyMarketing strategy

Marketing strategy is an integralMarketing strategy is an integralcomponent of corporate strategy, definingcomponent of corporate strategy, defining

how t he organization will successfullyhow t he organization will successfullyengage wit h customers, prospects, andengage wit h customers, prospects, andcompetitors in t he market arena.competitors in t he market arena.

It is derived from broader corporateIt is derived from broader corporateStrategies, corporate missions, andStrategies, corporate missions, andcorporate goalscorporate goals

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The various strands of t he strategy , which The various strands of t he strategy , which 

include advertising, In storeinclude advertising, In storecommunication, internet Marketing,communication, internet Marketing,promotions and public relations can bepromotions and public relations can beorchestrated.orchestrated.

Many companies cascade a strategy, byMany companies cascade a strategy, bycreating strategy tactics t hat t hen becomecreating strategy tactics t hat t hen becomestrategy goals for t he next level or group.strategy goals for t he next level or group.Each group is expected to take t hat Each group is expected to take t hat 

strategy goal and develop a set of tacticsstrategy goal and develop a set of tacticsto achieve t hat goal. This is why it isto achieve t hat goal. This is why it isimportant to make each strategy goalimportant to make each strategy goalmeasurablemeasurable

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K ey elements K ey elements

Map your customers needs.Create a niche based on demand.Map your customers needs.Create a niche based on demand.

 You will have price sensitive customers and you will have customers You will have price sensitive customers and you will have customerswho are willing to pay extra for Qualitywho are willing to pay extra for Quality

Remmember you cannot make sense for everyt hing to every body.Remmember you cannot make sense for everyt hing to every body.Have a Target Group which you t hink will respond toHave a Target Group which you t hink will respond to youryour USPUSP

Every communication Every time should talk about t he sameEvery communication Every time should talk about t he samepositioning else it will be difficult for t he customers to relate to youpositioning else it will be difficult for t he customers to relate to you

as a retailer and as a businessas a retailer and as a business  Avoid multiple channels of communication. Choose t he ones wit h  Avoid multiple channels of communication. Choose t he ones wit h 

which your customers engage t he most. It will also help inwhich your customers engage t he most. It will also help inmeasuring t he success of your marketing mix.measuring t he success of your marketing mix.

Monitor constantly t hrough interaction wit h customers t he successMonitor constantly t hrough interaction wit h customers t he successof your sales pitch. You could go terribly wrong t hinking all t heof your sales pitch. You could go terribly wrong t hinking all t hewhile t hat you have been able to grab more heart and mind sharewhile t hat you have been able to grab more heart and mind sharet han your competition.t han your competition.

 You may not be able to measure success instantly but you can keep You may not be able to measure success instantly but you can keeplooking for signals which will tell you if you are headed in t he right looking for signals which will tell you if you are headed in t he right direction.direction.

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Marketing PlanMarketing Plan

Marketing is more t han just selling and advertising.Marketing is more t han just selling and advertising. It's about what youIt's about what youneed to do to capture and keep your customers over time.need to do to capture and keep your customers over time.

 Your marketing plan needs to answer t he question: Your marketing plan needs to answer t he question:Why am I in business ?Why am I in business ?What do customers want ?What do customers want ?and Why will customers buy from me and not my competitors?and Why will customers buy from me and not my competitors?

Developing your marketing plan covers four main aspects:Developing your marketing plan covers four main aspects: Market research.Market research. Marketing goals.Marketing goals.

Marketing strategies.Marketing strategies. Monitor and control.Monitor and control.

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Market ResearchMarket ResearchBefore you develop your marketing goals and strategies you need to identify what Before you develop your marketing goals and strategies you need to identify what are t he most promising Retail opportunities you should pursue.are t he most promising Retail opportunities you should pursue. You need to You need to

consider:consider:

 Your Products and Service Your Products and Service

It may seem obvious, but you will benefit from analyzing your product/serviceIt may seem obvious, but you will benefit from analyzing your product/serviceoffering from t he customer point of view.offering from t he customer point of view. Ask yourself what: Ask yourself what:

benefits are you offering your customers?benefits are you offering your customers?

which

ones will bewhich

ones will be most valued by customers?most valued by customers? Do customers look for a wider choice or a sharper price in your context ?Do customers look for a wider choice or a sharper price in your context ? What constitutes Quality as in Consumers perception ?What constitutes Quality as in Consumers perception ? How much more t hey are willing to pay for Exceptional Service? Can I differentiateHow much more t hey are willing to pay for Exceptional Service? Can I differentiate

wit h Better Service ?wit h Better Service ?

 Your Market Your Market

Understand your market and identify factors t hat will impact on yourUnderstand your market and identify factors t hat will impact on yourbusiness.business. Aspects to consider: Aspects to consider:

What is its size and is it growing or shrinking?What is its size and is it growing or shrinking? Where are your target customers located?Where are your target customers located? What are its characteristics, eg. gender, aspirations, ability to pay?What are its characteristics, eg. gender, aspirations, ability to pay? What changing social trends and attitudes could affect your business?What changing social trends and attitudes could affect your business?

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 Your Customers Your Customers

Once you have researched your market you can define t he specific segments you intend toOnce you have researched your market you can define t he specific segments you intend totarget.target. Market segments are groups of customers who share similar attributes and attitudesMarket segments are groups of customers who share similar attributes and attitudes --

Purchasing powerPurchasing power location (distance, Neighborhood type)location (distance, Neighborhood type) gendergender et hnic identity ( Sout h Indians, Bengalis, Expatriates)et hnic identity ( Sout h Indians, Bengalis, Expatriates) attitudes ( frequent shoppers ,treasure hunters, discount seekers) andattitudes ( frequent shoppers ,treasure hunters, discount seekers) and attributes (Washing Machine owners, car owners)attributes (Washing Machine owners, car owners) Shopping tripShopping trip

 You need to understand t he factors t hat will drive your customers to buy products at your store You need to understand t he factors t hat will drive your customers to buy products at your store

 Your Competitors Your Competitors

Identify bot h direct competitors (t hose selling t he same products in similar retail format) andIdentify bot h direct competitors (t hose selling t he same products in similar retail format) andindirect competitors (t hose offering same products but in different format).indirect competitors (t hose offering same products but in different format).

Information you need to know about competitors includes:Information you need to know about competitors includes: What exactly t hey offer t heir customers ?What exactly t hey offer t heir customers ? How well established t hey are and t heir reputation?How well established t hey are and t heir reputation? Their strengt hs and weaknesses and what makes t hem successful?Their strengt hs and weaknesses and what makes t hem successful? Their pricing?Their pricing? Their Promotion strategiesTheir Promotion strategies Whats t he level of service customers get at your competitors storeWhats t he level of service customers get at your competitors store

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Market Research SourcesMarket Research Sources

Competition ShoppingCompetition Shopping Market SurveyMarket Survey Consumer researchConsumer research Exit interviews at competitor locationsExit interviews at competitor locations Published dataPublished data Discussions with SuppliersDiscussions with Suppliers

 Your SWOT Analysis Your SWOT Analysis

Using t he information you have collected you can undertake a SWOT Using t he information you have collected you can undertake a SWOT analysis to help you determine your marketing goals.analysis to help you determine your marketing goals. Your SWOT involves Your SWOT involvesassessing:assessing:

Strengths you should build onStrengths you should build on Opportunities you should exploitOpportunities you should exploit Weaknesses you need to overcomeWeaknesses you need to overcome Threats you need to manageThreats you need to manage

 You need to develop strategies to deal wit h each identified issue. You need to develop strategies to deal wit h each identified issue.

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Setting Your Marketing GoalsSetting Your Marketing Goals

 Your marketing goals build on your broader business objectives and Your marketing goals build on your broader business objectives andspecify:specify:

What product/service you will offer for which market segments ?What product/service you will offer for which market segments ? What key benefits you will offerWhat key benefits you will offer   Customization, Service, Ambience?Customization, Service, Ambience?

How you will gain a competitive advantageHow you will gain a competitive advantage   Price, Quality, design ?Price, Quality, design ? What specific targets you aim to meet over what time frameWhat specific targets you aim to meet over what time frame-- market market share, revenue, Footfalls ?share, revenue, Footfalls ?

 Your marketing goals should pass t he SMART test: Your marketing goals should pass t he SMART test:

SS -- SpecificSpecific MM -- MeasurableMeasurable  A A -- Achievable Achievable RR -- RealisticRealistic T T -- Time boundTime bound

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Marketing StrategiesMarketing Strategies

Based on Market DominanceBased on Market Dominance LeaderLeader

ChallengerChallenger

FollowerFollower

Based on Competitive AdvantageBased on Competitive Advantage Price leadershipPrice leadership

Product differentiationProduct differentiation

Market segmentationMarket segmentation

Based on InnovationBased on Innovation PioneersPioneers

FollowersFollowers

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To put your goals into action you need to develop specific strategies toTo put your goals into action you need to develop specific strategies toachieve t hem.achieve t hem. K ey aspects t hat need to be covered regardless of what K ey aspects t hat need to be covered regardless of what your strategy is :your strategy is :

ProductProduct  Your product offering including widt h of assortment, quality, Your product offering including widt h of assortment, quality,packaging, guarantees, afterpackaging, guarantees, after--sales service.sales service.

PricePrice  Your pricing policy Your pricing policy   cost plus or consumer facing, target marginscost plus or consumer facing, target marginsincluding mark downsincluding mark downs

 Your pricing should be based on a realistic assessment of all your costs and Your pricing should be based on a realistic assessment of all your costs andtaking into account what t he market will bear and t he image you are tryingtaking into account what t he market will bear and t he image you are tryingto create.to create.

PromotionPromotion  Your approach will depend on t he nature of your business and Your approach will depend on t he nature of your business andcan include new arrivals, buy one get one, flat discounts selling, crosscan include new arrivals, buy one get one, flat discounts selling, crosscategory promotions, loss leaders, competition based.category promotions, loss leaders, competition based.

PlacePlace How you will advertiseHow you will advertise   Posters, Banners, In Store Communication,Posters, Banners, In Store Communication,Print or electronic Media, Newspaper Flyers.Print or electronic Media, Newspaper Flyers. It is important t hat you use t heIt is important t hat you use t hecorrect medium irrespective of t he cost.correct medium irrespective of t he cost.There is no point using a medium wit h which your customers do not relateThere is no point using a medium wit h which your customers do not relateas t here will be no impact of such communication.as t here will be no impact of such communication.

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Monitor and ControlMonitor and ControlMarketing is a necessary cost to t he business andMarketing is a necessary cost to t he business and

you should set a marketing budget, includingyou should set a marketing budget, includingmont hly cash flow, as part of your business plan.mont hly cash flow, as part of your business plan.

Measuring t h

e results of your marketing activitiesMeasuring t h

e results of your marketing activitieswill ensure you continue to get value for yourwill ensure you continue to get value for yourmarketing investment.marketing investment.

 Assessing an increase in revenue or customer Assessing an increase in revenue or customernumbers as a result of promotional activitiesnumbers as a result of promotional activitiesallows you to decide what activities give you t heallows you to decide what activities give you t hebest return.best return.

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Winning at RetailWinning at Retail Ander and Sterns book Winning at Retail puts forward a model designed by Norm Ander and Sterns book Winning at Retail puts forward a model designed by Norm

McMillan and Sid Doolittle, t hat can steer a retailer towards success. It is a simple andMcMillan and Sid Doolittle, t hat can steer a retailer towards success. It is a simple andstraightforward model t hat has been designed from t he consumers point of view. Thestraightforward model t hat has been designed from t he consumers point of view. Thecornerstone of t his new model is t he Est model of retail success. Thecornerstone of t his new model is t he Est model of retail success. The Est modelEst model guidesguidesretailers towards making t heir firms t he best in one of fiveretailers towards making t heir firms t he best in one of five essentialessential areas:areas:

1.1. CheapCheap-- Essentially: Winning wit h PriceEssentially: Winning wit h Price 2.2. BigBig-- Essentially : Winning wit h Dominant AssortmentsEssentially : Winning wit h Dominant Assortments 3.3. HotHot-- Essentially: Winning wit h FashionEssentially: Winning wit h Fashion 4.4. EasyEasy-- Essentially: Winning wit h SolutionEssentially: Winning wit h Solution  Oriented ServiceOriented Service 5.5. QuickQuick-- Essentially : Winning wit h Fast ServiceEssentially : Winning wit h Fast Service

The retailers must strive to be t he best in t heir segment of specialization, whet her it is lowThe retailers must strive to be t he best in t heir segment of specialization, whet her it is lowprices t hey are offering or superior service or t he most fashionable clot hes. A retailer hasprices t hey are offering or superior service or t he most fashionable clot hes. A retailer hasto decide on how to differentiate t hemselves from all t he ot her stores who provide ato decide on how to differentiate t hemselves from all t he ot her stores who provide asimilar or same service and/or product. Location is often used as a segment specializationsimilar or same service and/or product. Location is often used as a segment specializationbut in recent times t hat has been proven to not be a strong enough reason. It might workbut in recent times t hat has been proven to not be a strong enough reason. It might workin tandem wit h one of t he Est factors but unlikely to do so alone in t he long term.in tandem wit h one of t he Est factors but unlikely to do so alone in t he long term.

To be successful at holding an Est position, a retailer must ensure t hat t he entire companyTo be successful at holding an Est position, a retailer must ensure t hat t he entire companyhas t he same focus. To sell products keeping a low margin, a company must have lowhas t he same focus. To sell products keeping a low margin, a company must have lowoperating costs. Waloperating costs. Wal--Mart is t he perfect example of a retailer in t he CheapMart is t he perfect example of a retailer in t he Cheap--Est position.Est position.The company focuses on its products being t he cheapest and t his position translates intoThe company focuses on its products being t he cheapest and t his position translates intoevery decision t hat t he company makes.every decision t hat t he company makes.