Retail Strategy 1

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Retail Strategy 1

  1. 1. Retail strategy• A clear and definite plan that the retailer outlines to tap the market and build a long term relationship with the consumer.• Retail Mix:• 1)Store location• 2)Merchandising• 3)Pricing• 4)Marketing
  2. 2. Developing an Overall Retail Strategy Controllable Uncontrollable Variables: Variables: •Store location •Consumers•Managing business •Competition •Merchandise •Technology management Retail •Economic and pricing Strategy conditions •Communicating •Seasonality with customer •Legal restrictions
  3. 3. Elements of retail strategies• The target Market• Retail format• Sustainable competitive advantage
  4. 4. The Retail planning process
  5. 5. The Retail planning process
  6. 6. Mission statement• Wal-Mart: To give the ordinary folk the chance to buy same thing as rich people.• McDonald’s: Quality,service,convenience and value• Shopper,s stop: To be a global retailer in India and to maintain the NO.1 position in the Indian market in the department store category.
  7. 7. Situation analysis• PEST Analysis• SWOT Analysis• BCG Matrix• Porter’s five forces
  8. 8. Matrix to evaluate opportunities for strategic investments• Define Strategic opportunities to be evaluated• Identify key factors determining Market attractiveness and competitive positions• Assign weights to each factor.• Rate each strategic opportunity on 1-10 scale• Multiply the weights by each factors rating and add across factors• Plot each opportunity on the matrix
  9. 9. Growth Strategies• Market Penetration Cross selling• Market Expansion• Retail format development• Diversification: Related Unrelated
  10. 10. Value Chain
  11. 11. Retail as pentagon player• Product• Place• Value• People• Communication
  12. 12. Retail as Triangle player• Systems• Logistics• Suppliers
  13. 13. International Expansion-A growth strategy• 1)Export• 2)Franchising/licensing• 3)Acquisition and mergers• 4)Joint venture• 5)Organic Growth
  14. 14. Bases of Sustainable Competitive Advantage1. Customer Relationship : Loyalty , Positioning2. Location3. Vendor Relationships4. Information Systems and Logistics
  15. 15. Bases of Sustainable Competitive Advantage5. Effective Employees6. Low Cost Operations7.Multiple Sources of Advantage8.Unique Merchandise (Private Label Brand)
  16. 16. Benefits of Strategic Retail Planning Provides thorough analysis of the requirements for doing business for different types of retailers Outlines retailer goals Allows retailer to determine how to differentiate itself from competitors Allows retailer to develop an offering that appeals to a group of customers Offers an analysis of the legal, economic, and competitive environment Provides for the coordination of the firm’s total efforts Encourages anticipation and avoidance of crises
  17. 17. Figure A3-1: Factors to Consider When Engaging in Global Retailing

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