Group :2

Optimizing Business Expansion of Business Redefining the Business Leads to Superior Customer Value Proposition Economic Advantage

Optimizing Business

Expansion of Business

Redefining the Business

Leads to Superior Customer Value Proposition

Economic Advantage

It is the retailers’s responsibility to determine & understand these reasons or needs and ensure that the formats focus on addressing them Buyer purchases for their reasons, not those of a retailer The selling Process that begins only when we earn buyer trust Fortune Institute of International Business

It is the retailers’s responsibility to determine & understand these reasons or needs and ensure that the formats focus on addressing them

Extension Relationship Intensification Diversification Retailing Principles Fortune Institute of International Business

The retail growth opportunities can be classified on the basis of their desired outcome:: Growth Strategy Objectives Growth Levers

The retail growth opportunities can be classified on the basis of their desired outcome::

Growth Strategy Objectives

Growth Levers

Focuses on the existing business Includes Spectrum of : Intensification of the current scope of the business Logical Extension Strategic diversification

Focuses on the existing business

Includes Spectrum of :

Intensification of the current scope of the business

Logical Extension

Strategic diversification

Represents the horizontal axis of the matrix & pertaining to the market opportunities with respect to : Geography/Location Product/Service offered Target customer Format/Channel

Represents the horizontal axis of the matrix & pertaining to the market opportunities with respect to :

Geography/Location

Product/Service offered

Target customer

Format/Channel

INTENSIFICATION Strengthens position in existing markets by increasing market positioning. IMPLICATIONS : Enables the retailer to explore opportunities Fills gaps in existing markets Ex: Walmart

INTENSIFICATION

Strengthens position in existing markets by increasing market positioning.

IMPLICATIONS :

Enables the retailer to explore opportunities

Fills gaps in existing markets

Ex: Walmart

Geographic Extension Expand more with similar market characteristics to reach more customers in target segment. IMPLICATIONS : Retailers facing saturation in major metro markets enter into small & urban markets. Ex: Vishal Mart

Geographic Extension

Expand more with similar market characteristics to reach more customers in target segment.

IMPLICATIONS :

Retailers facing saturation in major metro markets enter into small & urban markets.

Ex: Vishal Mart

Geographic Diversification Expand into new locations with different market characteristics to reach new customers IMPLICATIONS : Opening stores in alternative locations like airports, entertainment venues allows increased shopping frequency amongst the existing customers. Ex : Loreal, Revlon

Geographic Diversification

Expand into new locations with different market characteristics to reach new customers

IMPLICATIONS :

Opening stores in alternative locations like airports, entertainment venues allows increased shopping frequency amongst the existing customers. Ex : Loreal, Revlon

INTENSIFICATION Optimize existing offer to better serve existing customers IMPLICATIONS : Growth can be achieved by capturing the unsatisfied desires in the consumer market place. Ex: Ambience of Lowe’s stores to appeal the females customers

INTENSIFICATION

Optimize existing offer to better serve existing customers

IMPLICATIONS :

Growth can be achieved by capturing the unsatisfied desires in the consumer market place. Ex: Ambience of Lowe’s stores to appeal the females customers

Product/Service Extension Expand existing offers to leverage relationships with existing customers & attract new customers. IMPLICATIONS : Enhances the physical product offer that the retailers seek to create solution-driven concept. Ex: EDLP in WALMART

Product/Service Extension

Expand existing offers to leverage relationships with existing customers & attract new customers.

IMPLICATIONS :

Enhances the physical product offer that the retailers seek to create solution-driven concept.

Ex: EDLP in WALMART

Product/Service Diversification Convert into other sector to create value for new & existing customers in a wholly new area. IMPLICATIONS: Offering new services outside their core competency . Ex: Virgin Atlantic, Reliance.

Product/Service Diversification

Convert into other sector to create value for new & existing customers in a wholly new area.

IMPLICATIONS:

Offering new services outside their core competency . Ex: Virgin Atlantic, Reliance.

Customer Intensfication Build & Maintain customer loyalty & Satisfaction IMPLICATIONS : “ Best Customers” who spend freely Ex: Marketing & Loyalty Programs.

Customer Intensfication

Build & Maintain customer loyalty & Satisfaction

IMPLICATIONS :

“ Best Customers” who spend freely

Ex: Marketing & Loyalty Programs.

Customer Extension Discover areas of uncovered potential to sell more to existing customers Customer Diversification Target new customer Groups in addition to the existing loyal customers.

Customer Extension

Discover areas of uncovered potential to sell more to existing customers

Customer Diversification

Target new customer Groups in addition to the existing loyal customers.

Format Intensification Enhance the shopping experience of existing customers with updated formats. IMPLICATIONS : While the scarcity in the stores leads to quality investing rather than quantity.

Format Intensification

Enhance the shopping experience of existing customers with updated formats.

IMPLICATIONS :

While the scarcity in the stores leads to quality investing rather than quantity.

Format Extension Target customers in shopping situations & satisfy different shopping needs of same customers Format Diversification Embrace creative use of available consumer touchpoints

Format Extension

Target customers in shopping situations & satisfy different shopping needs of same customers

Format Diversification

Embrace creative use of available consumer touchpoints