Calssification by retail strategy mix
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Calssification by retail strategy mix

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Calssification by retail strategy mix Calssification by retail strategy mix Presentation Transcript

  • Retail Institutions by Store-Based Strategy Mix
  • Retailer Strategy Mix • A strategy mix is the firm’s particular combination of: store location, operating procedures, goods/services offered, pricing tactics, store atmosphere, customer services, and promotional methods5-2
  • Earning Destination Retailer Status  Be price oriented and cost efficient  Be upscale  Be convenient  Offer a dominant assortment  Offer superior customer service  Be innovative or exclusive5-3 View slide
  • Figure 5.1 The Wheel of Retailing5-4 View slide
  • Three Basic Strategic Positions Low end Medium High end5-5
  • Figure 5.2 Retail Strategy Alternatives5-6
  • Figure 5.3 Scrambled Merchandising by a Shoe Store5-7
  • Retail Life Cycle • Retail institutions pass through identifiable life stages introduction growth maturity decline5-8
  • Figure 5.4 Retail Life Cycle5-9
  • How Retail Institutions are Evolving  Mergers, Diversification, Downsizing  Cost-Containment and Value-Driven Retailing5-10
  • Mergers, Diversification, and Downsizing  Mergers: combination of separately owned firms.  Diversification: retailers become active in businesses outside their normal operations.  Downsizing: unprofitable stores are closed or divisions are sold off.5-11
  • Methods for Cost Containment  Standardizing procedures, store layouts, store size, and product offerings  Using secondary locations  Placing stores in smaller communities  Using inexpensive construction materials  Using plainer fixtures and displays  Buying refurbished equipment  Joining cooperative buying and advertising  Creatively financing inventories5-12
  • Table 5.1 Store-Based Retail Strategy Mixes Food Oriented General Merchandise  Convenience store  Specialty store  Conventional  Traditional department supermarket  Full-line discount store  Food-based superstore  Variety store  Combination store  Off-price chain  Box (limited-line)  Factory outlet store  Membership club  Warehouse store  Flea market5-13
  • Convenience Store Strategy Mix Prices: Location: Average to Neighborhood Above average Atmosphere and Merchandise: Services: Medium width Average and low depth of assortment; Promotion: average quality Moderate5-14
  • Conventional Supermarket Strategy Mix Location: Prices: Neighborhood Competitive Merchandise: Atmosphere and Extensive width Services: and depth Average of assortment; Promotion: average quality; Heavy use of manufacturer, newspapers, flyers, private, and generic brands and coupons5-15
  • Food-Based Superstore Strategy Mix Location: Prices: Community shopping Competitive center or isolated site Atmosphere and Services: Merchandise: Average Full assortment plus health and beauty aids and Promotion: general merchandise Heavy use of newspapers, flyers5-16
  • Combination Store Strategy Mix Location: Prices: Community shopping center Competitive or isolated site Atmosphere and Services: Merchandise: Average Full assortment plus health and beauty aids and Promotion: general merchandise Heavy use of newspapers, flyers5-17
  • Box Store Strategy Mix Location: Prices: Neighborhood Very low Atmosphere and Merchandise: Services: Low width and depth of Low assortment; few perishables; few national Promotion: brands Little or none5-18
  • Warehouse Store Strategy Mix Location: Prices: Secondary site, often in Very low industrial area Atmosphere and Merchandise: Services: Moderate width and Low low depth of assortment; emphasis on manufacturer brands Promotion: bought at discount Little or none5-19
  • Specialty Store Strategy Mix Location: Prices: Business district or Competitive to shopping center Above average Atmosphere and Merchandise: Services: Very narrow width and Average to excellent extensive depth of assortment; average to Promotion: good quality Heavy use of displays Extensive sales force5-20
  • Traditional Department Store Strategy Mix Location: Prices: Business district, shopping Average to center or isolated store Above average Atmosphere and Merchandise: Services: Extensive width and Good to excellent depth of Promotion: assortment; average to Heavy ad and catalog good quality use; direct mail; personal selling5-21
  • Full-line Discount Store Strategy Mix Location: Prices: Business district, shopping Competitive center or isolated store Atmosphere/ Services: Merchandise: Slightly below Extensive width and average to average depth of assortment; average to Promotion: good quality Heavy on newspapers; price-oriented; selling5-22
  • Variety Store Strategy Mix Location: Prices: Business district, shopping Average center or isolated store Merchandise: Atmosphere/ Services: Good width and Below average some depth of assortment; below-average Promotion: to average quality Use of newspapers5-23
  • Off-Price Chain Strategy Mix Location: Prices: Business district, shopping Low center or isolated store Merchandise: Atmosphere/ Services: Moderate width and Below average poor depth of assortment; Promotion: average to good quality; Use of newspapers; low continuity brands not advertised; limited selling5-24
  • Factory Outlet Strategy Mix Location: Prices: Out of the way site Very Low or discount mall Atmosphere/ Services: Merchandise: Very low Moderate width and poor depth of assortment; Promotion: low continuity Little5-25
  • Membership Club Strategy Mix Location: Prices: Isolated store or Very Low secondary site Atmosphere/ Services: Merchandise: Very low Moderate width and poor depth of assortment; Promotion: low continuity Little; some direct mail5-26
  • Flea Market Strategy Mix Location: Prices: Isolated store Very Low Merchandise: Atmosphere/ Services: Extensive width and Very low poor depth of assortment; low continuity; Promotion: variable quality Limited5-27