Professional Documents
Culture Documents
Retailing
Chapter Objectives
To show the 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
2
Chapter Objectives (cont.)
To examine the individual
elements of a retail strategy
(both controllable and
uncontrollable), and to
present strategic planning as
a series of integrated steps
To demonstrate how a
strategic plan can be prepared
3
Retail Strategy
The overall plan or framework of
action that guides a retailer
One year in duration
Outlines mission, goals, consumer
market, overall and specific
activities, and control mechanisms
4
Elements of a Retail Strategy
5
Benefits of Strategic Retail Planning
6
Organizational Mission
Retailer’s commitment
to a type of business
and to a
distinctive role in the marketplace.
7
The Focused Organizational Mission of Frisch’s
Restaurants
8
Ownership and Management Alternatives
Sole proprietorship 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
9
Checklist to
Consider When
Starting a New
Business
10
Checklist for
Purchasing
an Existing
Retail
Business
11
Selected kinds of Retail Goods and Service Establishments
12
Selected kinds of Retail Goods and Service Establishments
13
Selected kinds of Retail Goods and Service Establishments
14
Image and Positioning
An image represents
how a given retailer is
perceived
by consumers and others.
15
Positioning Approaches
16
Niche Retailing by Babies “R” Us
17
Positioning Approaches
Differentiated Marketing is a
positioning approach whereby retailer
aim at two or more distinct consumer
groups, with different retailing
approaches for each group.
e.g. Landmark Groups’ Center point:
Splash, Baby Shop, Shoe Mart, Life
Style
Yum! Brands: KFC, Pizza Hut, Taco Bell
18
Selected Retail
Positioning Strategies
19
High Quality
competitor
Low Quality
analysis
Strategic Implications of Target Market
Techniques
Retailer’s location
Goods and service mix
Promotion efforts
Price orientation
Strategy
21
Developing an Overall retail strategy
Controllable Uncontrollable
Variables: Variables:
• Store location • Consumers
• Managing business • Competition
• Merchandise • Technology
Retail
management • Economic
Strategy
and pricing conditions
• Communicating • Seasonality
with customer • Legal restrictions
22
Additional Concerns for
Global Retailing
23
Factors Affecting the Success 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
24
Factors to Consider When Engaging in Global Retailing
25