RS is the overall plan or frame work of action that guides retailer. Ideally, it will be at least one year & outline the retailers mission, goals, consumer market, overall & specific activities & control mechanism.

It provides a thorough analysis of the requirements for doing business for different types of retailers It outlines retailers goals A firm determines how to differentiate itself from competitors & develop an offering that appeals to group of customers Study of environment A firms total efforts are coordinated Crises are expected & avoided

Organizational mission Ownership & management alternatives Goods/service categoryS

Situational analysis

Sales

Profit

Satisfaction of stakeholders

Objectiv es Identification of customers

Image Mass marketing Concentrated Marketing

Differentiated Marketing

Controllable variables

Overall strategy

Uncontrollable variables

Daily & short run operations Responses to environment Evaluation Adjustment

Specific activities Feedback

adustmet

Control

Opportunities & Threats to be analyzed Organizational mission: Retailers commitment to the type of business & to a distinctive role in the marketplace Attitude towards consumers, employees, competitors, government & others Major decisions-Goods or services sold or customer needs-Leader or follower-Market scope (large customer base or narrow)

A sole proprietor ship A partner ship A corporation

Select goods/service retailing on the basis of: Personal abilities Financial resources Time demands-owners involvement

Sales objectives: Volume, growth, stability & market share are some sought after sales goals Profit: Satisfaction of different Stakeholders: shareholders, customers, suppliers, government & employees Image(positioning): A specialty store, discount store, a departmental store etc; Mass merchandising (Wal-mart)or niche retailing(plus sized women fashions, children stores)

Target market: Three techniques 1.Mass marketing(Super markets with large assortments target mass marketing) 2.Concentrated Marketing(Zeroing it on one specific group) 3.Differentiated Marketing(two or more specific groups)

Strategic implication Retailers location

Mass Marketing Near a large population base Wide selection of medium quality items Mass advertising

Concentrated Marketing Near a small or medium population base Selection geared to market segmenthigh or low quality items

Differentiated Marketing Near a large population base Distinct goods/service aimed at each market segment

Goods & service mix

Promotion efforts

Direct mail, e-mail, Different media & subscription messages for each segment High or low High-medium-low depending upon the segment Multiple specific strategies, each directed at different groups of customers

Price

Popular prices

Strategy

One general strategy for a large homogenous group of customers

One specific strategy directed at a specific group, limited group of customers

Controllable variables:

Store location Managing a business-Retail org & HRM & Ops Mgt Merchandise Management & Pricing Communicating with the customers-Inside layout,displays, colors,lighting,music etc. Customer services & community relations

Uncontrollable variables

Consumers Competition Technology Economic conditions Seasonality Legal restrictions

Tactics or short run decisions Must be responsive to the uncontrollable environment- Few tactical moves

Store location Managing the business Merchandise Management & pricing Communicating with customers

Review-The strategies & tactics are assessed against the business mission- Retail audit, analyzing the performance of a retailer Evaluation & Adjustment FEEDBACK

Store image & target customersThe way business is carried out The location from where business is being operated The physical appearance of the store Consumers views depend on: Location, size, newness, type of fixtures, displays Type (age, reputation, social status, grooming) of sales people, employees, their behaviour, merchandise knowledge, quality, general atmosphere of store

Customers loyalty Location Vendor relationship Management information & distribution Low cost operations

Positioning Providing good customer service Offer unique merchandise

A nice customer

I am a nice customer. You will know me. The one who never complains, no matter what kind of service I get.2/22/2010 1

A critical factor in customers choice of store Some examples? Consider the location of some retail stores

By developing strong relations with vendors,

retailers may gain exclusive rights to sell merchandise in a particular region To buy merchandise at a lower price or on a better terms than competitors To receive merchandise in short supply To develop in other regions where vendor is operating

Another Key area-MIS to gather information related to the target market, merchandise, buying, assortments breadth & depth, market trends etc Distribution or supply chain management Wal-Marts distribution an advantage over Kmart & others

Large operations Economy of scale Very large that become unmanageablediseconomy of scale

Place Convenience Dcor & location Product Merchandise breadth Quality & fashion level customer Promotion Service Excitement & change Price

Target