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- 1. Chapter 3 Strategic Planningin Retailing RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition BERMAN EVANS
- 2. 3-2 Chapter Objectives To showthe value of strategic planning for all types of retailers To explain the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback
- 3. 3-3 Chapter Objectives_2 To examinethe individual controllable and uncontrollable elements of a retail strategy To present strategic planning as a series of integrated steps
- 4. 3-4 Retail Strategy The overallplan or framework of action that guides a retailer One year in duration Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms
- 5. 3-5 Figure 3.1 Elementsof a Retail Strategy
- 6. 3-6 Benefits of StrategicRetail 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
- 7. 3-7 Benefits of StrategicRetail Planning_2 Offers an analysis of the legal, economic, and competitive environment Provides for the coordination of the firm’s total efforts Encourages the anticipation and avoidance of crises
- 8. 3-8 Organizational Mission Retailer’s commitment toa type of business and to a distinctive role in the marketplace.
- 9. 3-9 Figure 3.2 TheFocused Organizational Mission of Frisch’s Restaurants
- 10. 3-10 Ownership and Management Alternatives Soleproprietorship is an unincorporated retail firm owned by one person A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers
- 11. 3-11 Figure 3.3 Checklist to ConsiderWhen Starting a New Business
- 12. 3-12 Figure 3.4 Checklist for Purchasingan Existing Retail Business
- 13. 3-13 Figure 3.5 SelectedKinds of Retail Goods and Service Establishments Durable Goods Stores: Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations
- 14. 3-14 Figure 3.5 SelectedKinds of Retail Goods and Service Establishments Service Establishments (Personal): Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services Service Establishments (Amusement): Movie theaters Bowling alleys Dance halls Golf courses
- 15. 3-15 Figure 3.5 SelectedKinds of Retail Goods and Service Establishments Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs Service Establishments (Hotel): Hotels Motels Trailer parks Camps
- 16. 3-16 Kroger’s Goals Increase itsidentical food store sales growth target Reduce operating and administrative costs by more than $500 million Further leverage its size to achieve even greater economies of scale Reinvest in its core business to increase sales and market share
- 17. 3-17 Image and Positioning Animage represents how a given retailer is perceived by consumers and others.
- 18. 3-18 Positioning Approaches Mass merchandisingis a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities Niche retailing occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market
- 19. 3-19 Figure 3.6 NicheRetailing by American Outpost
- 20. 3-20 Figure 3.7 SelectedRetail Positioning Strategies
- 21. 3-21 Target Market Selection •Three techniques Mass marketing Concentrated marketing Differentiated marketing
- 22. 3-22 Figure 3.8 Albertson’s:Keeping a Competitive Edge
- 23. 3-23 Strategic Implications ofTarget Market Techniques Retailer’s location Goods and service mix Promotion efforts Price orientation Strategy
- 24. 3-24 Figure 3.9 Developingan Overall Retail Strategy Controllable Variables: •Store location •Managing business •Merchandise management and pricing •Communicating with customer Uncontrollable Variables: •Consumers •Competition •Technology •Economic conditions •Seasonality •Legal restrictions Retail Strategy
- 25. 3-25 Figure 3.10 TheSheraton Safari Hotel
- 26. 3-26 Table 3.4a LegalEnvironment and Retailing • Store Location zoning laws blue laws environmental laws direct selling laws local ordinances leases and mortgages • Managing the Business licensing provisions personnel laws antitrust laws franchise agreements business taxes recycling laws
- 27. 3-27 Table 3.4b LegalEnvironment and Retailing • Merchandise Management and Pricing trademarks merchandise restrictions product liability laws and lemon laws sales taxes unit-pricing laws collusion laws sale prices price discrimination laws
- 28. 3-28 Table 3.4c LegalEnvironment and Retailing • Communicating with the Customer truth-in-advertising and selling laws truth-in-credit laws telemarketing laws bait-and-switch laws inventory laws labeling laws cooling-off laws
- 29. 3-29 Additional Concerns for GlobalRetailing In addition to the strategic planning process: assess your international potential get expert advice and counseling select your countries develop, implement, and review an international retailing strategy
- 30. 3-30 Factors Affecting theSuccess of a Global Retailing Strategy Timing A balanced international program A growing middle class Matching concept to market Solo or partnering Store location and facilities Product selection
- 31. 3-31 Figure A3.1 Factorsto Consider When Engaging in Global Retailing