This document outlines key elements of developing an effective retail strategy, including: conducting a situation analysis using tools like PEST, SWOT, and Porter's Five Forces; defining the target market and retail format; identifying sources of competitive advantage; and considering growth strategies like market penetration, expansion, and international growth. An effective retail strategy provides thorough analysis, outlines goals, and allows differentiation from competitors through appealing product offerings.

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. 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. Elements of retail strategies
• The target Market
• Retail format
• Sustainable competitive advantage

4. The Retail planning process

5. The Retail planning process

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. Situation analysis
• PEST Analysis
• SWOT Analysis
• BCG Matrix
• Porter’s five forces

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. Growth Strategies
• Market Penetration
 Cross selling
• Market Expansion
• Retail format development
• Diversification:
 Related
 Unrelated

10. Value Chain

11. Retail as pentagon player
• Product
• Place
• Value
• People
• Communication

12. Retail as Triangle player
• Systems
• Logistics
• Suppliers

13. International Expansion-A growth
strategy
• 1)Export
• 2)Franchising/licensing
• 3)Acquisition and mergers
• 4)Joint venture
• 5)Organic Growth

14. Bases of Sustainable Competitive
Advantage
1. Customer Relationship : Loyalty , Positioning
2. Location
3. Vendor Relationships
4. Information Systems and Logistics

15. Bases of Sustainable Competitive
Advantage
5. Effective Employees
6. Low Cost Operations
7.Multiple Sources of Advantage
8.Unique Merchandise (Private Label Brand)

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. Figure A3-1: Factors to Consider When Engaging in
Global Retailing