Retail PositioningAdvanced Fashion: Standard 3

Created by:

Kris Caldwell

Timpanogos High School

Retail Positioning• Retail Positioning: Where a store situates

itself in the consumer market. Done by:– Product– Price– Place– Promotion– Examples: Some stores are positioned with the

lowest possible prices and least amount of service. Others are positioned for the best values for fashion forward career apparel.

Target Marketing

• Target Marketing: Defining the specialized niche of the market to whom the company wishes to make the greatest appeal.– Retailers do this by:

• Merchandise Policies: guidelines the company follows to keep inventory choices on track.

• Operational Policies: designed to make customers feel good about shopping at the store.

Policies• Merchandising Policies: Specific

guidelines established by management for the company to follow to keep inventory choices on track.

• Operational Policies: Specific guidelines, established by management, to make the store appealing for the target market through physical appearance and customer services.

Buying Motives

• Buying Motives: Reasons why people buy what they buy (what motivates them)– Product Motives: based on qualities

or images of certain products– Patronage Motives: buy from

certain stores

Competition

• Direct Competition: between 2 or more retailers using the same type of business format. (ex: GAP, Express)

• Indirect Competition: between 2 or more retailers using different types of business formats to sell the same type of merchandise. (ex: Dept store/grocery store both sell pantyhose)

• Vertical Competition: between businesses at different levels of the supply chain. (ex: company that sells to stores and also has a factory outlet store)

Competition

• Lifestyle Competition: Rivalry between businesses for consumers’ pastimes and spending money.

• Ambiance: Atmosphere, how a store pleases customers’ senses.

Product Strategy

• Assortment: range of stock or total selection a retailer carries.– Assortment Breadth (width):

refers to the number of different item categories or classifications offered by a store.

– Assortment Depth: indicates the quantity of each item available in the assortment of goods offered.

Price Strategy

• Prestige Pricing: Setting high prices on items to attract customers who want quality and status.– Usually in even numbers (ex: $48, not $47.99)

• Price Promoting: Advertising special price reductions to bring in shoppers. Can build traffic to buy other items as well.

Place Strategy

• Site Location: Prime location is important to attracting the right customers.

• Types of store clusters:– Central Business Districts: In cities or towns, stores and

offices– Neighborhood Shopping Centers: 5-15 stores– Community Shopping Centers: 25-50 stores, with 1 primary

store– Regional Shopping Centers: Malls. Draw customers from at

least a 10 mile radius.– Super-Regional Centers: Largest malls. 6-8 Anchor stores,

150 specialty stores, eateries.

Place Strategy• Market Coverage: The amount of

concentration a retailer has in a customer area, such as intensive, selective, or exclusive.

• Facilities Design: Store design to create a strong visual identity with the right ambiance for the target market.

• Store Exterior: Often creates a customer’s first impression.

• Store Interior: Includes selling areas and sales support areas. Should be functional and welcoming for customers.