3. Retail strategy
Definition
A marketing plan that details how a
business intends to offer its products
or services to consumers and influence
their purchases. For example, a typical
retail strategy might illustrate how
best to place and display a company's
products in retail outlets and how to
attract optimal consumer interest at
those locations with such things as
price discounts, placement, retailer
incentives and signs.
4. We know the definition but do we know the
meaning of it….???
5.
6. The concept of retail
• Retail is the sale of goods and services from individuals
or businesses to the end-user. Retailers are part of an
integrated system called the supply chain. A retailer
purchases goods or products in large quantities from
manufacturers directly or through a wholesale, and then
sells smaller quantities to the consumer for a profit.
Retailing can be done in either fixed locations like stores
or markets, door-to-door or by delivery. Retailing
includes subordinated services, such as delivery. The
term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such
as for the public
7.
8. Retail market strategy
• A retail marketing strategy refers to how a store and its
products sell goods to its target customers.
• Each type of retail business has to make decisions about
all the details of its marketing mix.
• A marketing mix consists of the product, price, place,
promotion and packaging
• Internet marketing strategies and those for stores that
people shop at in person must be developed to meet the
needs of potential customers.
• A retail marketing strategy is first outlined in a business
plan.
9. Retail market strategy
• A business plan contains information about the intention
and goals of the company. It's created before a business
opens.
• Business plans include research about who are the
company's potential customers and what are their needs
and wants
• A retail marketing strategy should be a part of the
business plan. It should include decisions about the
marketing mix approach, such as how customers will get
the products.
12. Starbucks Coffee shops are almost always strategically
placed to ensure a competitive advantage.
13. Competitive advantage
meaning
• Firms can obtain a competitive advantage by implementing value-
creating strategies, not simultaneously being implemented by any
current competitor. These strategies need to be rare, valuable, and non-
substitutable.
• Sustainable, competitive advantages are advantages that are not
easily copied and, thus, can be maintained over a long period of time.
The competition must not be able to do it right away or it is not
sustainable.
• Developing a sustainable, competitive advantage requires customer
loyalty, a great location, unique merchandise, proper distribution
channels, good vendor relations, a reputation for customer service, and
multiple sources of advantage.
14. The link of strategic advantage with
competitive Advantage
• The strategic advantage one business entity has over
its rival entities within its competitive industry. Achieving
competitive advantage strengthens and positions a
business better within the business environment.
• It is an advantage (over the competition), and must have
some life; the competition must not be able to do it right
away, or it is not sustainable.
15. The superior performance
• It is an advantage that is not easily copied and, thus, can
be maintained over a long period of time
• competitive advantage is a key determinant of superior
performance, and ensures survival and prominent
placing in the market.
• Superior performance is the ultimate, desired goal of a
firm; competitive advantage becomes the foundation.
• It gives firms the ability to stay ahead of present or
potential competition and ensure market leadership.
16. Sustainable competitive
advantage
• Customer Loyalty: Customers must be committed to buying
merchandise and services from a particular retailer. This can be
accomplished through retail branding, positioning, and loyalty
programs. A loyalty program is like a "Target card." Now, when the
customer uses the card as a credit card, Target can track all of their
transactions and store it in their data warehouse, which keeps track of
the customer’s needs and wants outside of Target. This will entice
Target to offer products that they do not have in stock. Target tracks all
sales done on their cards. So, Target can track customers who use their
card at other retailers and compete by providing that merchandise as
well.
• Location: Location is a critical factor in a consumer's selection of a
store. Starbucks coffee (shown here Figure 1) is an example. They will
conquer one area of a city at a time and then expand in the region.
They open stores close to one another to let the storefront promote the
company; they do little media advertising due to their location strategy.
17. Sustainable competitive
advantage
• Distribution and Information Systems: Walmart has killed
this part of the retailing strategy. Retailers try to have the
most effective and efficient way to get their products at a
cheap price and sell them for a reasonable price.
Distributing is extremely expensive and timely.
• Unique Merchandise: Private label brands are products
developed and marketed by a retailer and available only
from the retailer. For example, if you want Craftsman
tools, you must go to Sears to purchase them.
18. Sustainable competitive
advantage
• Vendor Relations: Developing strong relations with
vendors may gain exclusive rights to sell merchandise to
a specific region and receive popular merchandise in
short supply.
• Customer Service: This takes time to establish but once
it's established, it will be hard for a competitor to a
develop a comparable reputation.
• Multiple Source Advantage: Having an advantage over
multiple sources is important. For example, McDonald's
is known for fast, clean, and hot food. They have cheap
meals, nice facilities, and good customer service with a
strong reputation for always providing fast, hot food.
19. Strategic retail planning
process
Developing
the mission
R
Establishing
objectives
E
Situational
analysis
T
Identifyng
strategic
alternative
A
Selecting
the target
market
I
Obtaining
resources
needed to
compete
L
