Strategy is a plan, a “how,” a means of getting from here to there.

Strategy is perspective, that is, vision and direction.

What is a Strategy

Retail Strategy

A clear and definite plan that the retailer

outlines to tap the market and build a long-

term relationship with the consumers.

Mission of Mc Donald’s – QSCV

Mission of Wal-Mart –”To give ordinary folk the chance to buy the same thing as rich people”

Retail Marketing Strategy

Develop the “Six Ps”Develop the “Six Ps”

Define & Select a Target Market

Define & Select a Target MarketKey Tasks Key Tasks

in in StrategicStrategicRetailingRetailing

Key Tasks Key Tasks in in

StrategicStrategicRetailingRetailing

• Selecting a Target MarketSelecting a Target Market– Retailers analyze demographic, geographic,

and psychographic profiles to segment and select potential markets

six P’s

Choosing the Retailing Mix

ProductProduct

PricePrice

PromotionPromotion

PlacePlace

PersonnelPersonnel

PresentationPresentation

• STEP 2:• Choose the

Retailing Mix

• STEP 2:• Choose the

Retailing Mix

Product Offering

The mix of products

offered to the

consumer by the

retailer; also called

the product

assortment or

merchandise mix.

• Merchandising StrategyMerchandising Strategy

– Planograms: Diagrams of how to exhibit selections of merchandise within a store

• The Battle for Shelf SpaceThe Battle for Shelf Space– Stock keeping unit (SKU): specific product

offering within a product line that is used to identify items within the line

– Slotting allowances: fees paid by manufacturers to secure shelf space from retailers for their products

• Customer Service StrategyCustomer Service Strategy– Retailers must decide on the variety of

services they make available for shoppers

• Examples include gift wrapping, return privileges, electronic shopping, and delivery and installation

• Objectives are to enhance shopper comfort and attract and retain customers

Customer Management Strategies

Customer Relationship Marketing

Customer Relationship Marketing

LoyaltyProgramsLoyalty

Programs

• Location / Distribution StrategyLocation / Distribution Strategy

– Planned shopping center: A group of retail stores planned, coordinated, and marketed as a single unit

Location Decisions

Freestanding StoreFreestanding Store

Shopping Center Tenant

Shopping Center Tenant

Mall Mall

Retail Promotion Strategy

RetailRetailPromotion Promotion

StrategyStrategy

RetailRetailPromotion Promotion

StrategyStrategy

AdvertisingAdvertising

Public RelationsPublic Relations

PublicityPublicity

Sales PromotionSales Promotion

Presentation of the Retail Store

Employee Type Employee Type

Merchandise Type Merchandise Type

Fixture Type Fixture Type

SoundSound

OdorsOdors

Visual FactorsVisual Factors

Factors Factors inin

CreatingCreatingStore’sStore’s

Atmosphere Atmosphere

Factors Factors inin

CreatingCreatingStore’sStore’s

Atmosphere Atmosphere

Target Market & Positioningfor Shopper’s StopShopper’s Stop

Shopper’s StopShopper’s Stop

• Positioning Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its mission, vision and values.

• Target Market– Man, Woman, youngsters and children

Who Want Comfortable, Casual, But Stylish Apparel, upper-class and upper middle class.

– between the age group of 16 years to 35 years

Examples of Retail Strategies

• Big Bazaar • Reliance Malls• McDonalds• What is the target

market, retail offering, and source of competitive advantage for each retailer?

• Positioning

• Is se Accha aur profitable kahin nahi',

• Target

• Middle class

• Competitive Advantage • 1) Offering discounts ranging from 5 per cent to 60

% as discount stores is still a nascent concept in India

• competence in providing products at lowest prices and great quality in an ambience much better than what the customers except.

• 2) Offering products and services such as a photography shop, a bakery, automobile accessories, bicycles, electrical hardware, among other items, the range is vast and fulfils practically every need of the consumer under one roof

Reliance Industries

will try to give

consumers a

complete shopping

experience

Company’s retail venture will cater to

almost all major sectors like apparel and

footwear, FMCG, consumer durable,

home furnishing, farm product,

entertainment and leisure.

Creating Store LoyaltyMental and Emotional Attachments

• Elements in a Strong Brand– Top of the Mind Awareness– Associations with Brand/Store Name

• Methods Used to Develop a Strong Brand– Massive Exposure– Symbols to Reinforce Image– For e.g. :- Mac Donalds.

Theories of retail development.

1) Environmental theory

Darwin’s theory --- survival of the fittest.

The retailers who successfully adapt technological, demographic, economic changes , can only grow and prosper.

Cyclic or wheel of retailing.

Wheel of Retailing Theory

High-end strategy• High prices• Excellent facilities and services

• Upscale consumers

Low-end strategy• Low prices• Limited facilities and services

• Price-sensitive consumers Medium strategy

• Moderate prices• Improved facilities• Broader base of value- and service-conscious consumers