2. Definition of Retail Market Strategy
A retail strategy is a statement identifying
(1) The retailer’s target market
(2)The format the retailer plans to use to satisfy
the target market’s needs, and
(3)The bases on which the retailer plans to build a
sustainable competitive .
3. Elements in retailing strategy
1. Target Market
The market segment(s) towards which the
retailer plans to focus its resources and retail mix.
Segments in terms of demographic, lifestyle
buying situation or geographic location.
Ex: Nike and Puma outlets
4. 2. Retail formats:
The format of a retailer is the overall appearance and feel
that it presents to customers, primarily its look and layout,
the sort of range it stocks and the approach taken to
pricing
The retail format describes the nature of retailer’s
operations- its retail mix
Some Types of retail formats:
1. Mom-and-pop stores (Ex: Kirana)
2. Hypermarkets/ Supermarkets (Ex: Big Bazaar.)
3. E-retailers (Ex Amazon.in)
5. 3. Building a sustainable competitive advantage:
Three approaches for developing a sustainable
competitive advantage are:
1. Building strong relationship with customers
2. Building strong relationship with suppliers
3. Achieving efficient internal operations
6. Building strong relationship with
customers
• Customer Loyalty
• Brand Image
• Positioning
• Unique Merchandise
• Customer service
• Customer Relationship Management
7. Relationships with suppliers
Vendors Relation
• By strengthening relationships with each other,
both retailers and vendors can develop mutually
beneficial assets and programs that will give
retailer-vendor pair an advantage over the
competing pair.
8. Efficiency of Internal Operations:
Efficient internal operations enable retailers to
have a cost advantage over competitors or offer
customers more benefits than do competitors at
the same cost.
• Human Resource Management
• Distribution and Information system.
• Location
• Multiple source of advantage
9. The Strategic Retailing planning
process
Stage 1: Define business
mission
Stage 2: Conduct a situation Audit
• Market attractiveness analysis
• Competitors analysis
• Self analysis
Stage 3: Identify
strategic
opportunities
Stage 4: Evaluate
strategic alternatives
Stage 5: Establish specific
objectives and allocate
resources Stage 6: Develop a
retail mix to
implement
strategy
Stage 7:Evaluate performance
and make adjustments
