Retail Marketing Strategy Chapter 5 Levy Weitz
Retail Marketing StrategyChapter 5Levy WeitzBasharatullah
MalikWhat to Cover?Retail Strategy?Building Sustainable Competitive
AdvantageSteps- Developing a Strategy?Different Strategic
Opportunities?Strategic Retail Planning ProcessRetail Market
StrategyA Retail Market Strategy is the ways through which a Retail
Company plans activities to identify its target market, the retail
format to be used for satisfying the needs of the target market and
building sustainable competitive advantageRetail Market
Strategy1-Target Market- a specific segment or number of segments
clubbed together because of their similar attributes, needs and
likely response towards the Retailers offerings and advertising
messages(Self defined by BM)Target market is the market segment/s
towards which the retailer plans to focus its resources and Retail
Mix (as per book)
Retail Market Strategy2-Retail Format- Retail Mix, Nature of
Merchandise Services offered, Pricing Policy, Advertising &
Promotion Program, Store Design, Visual Merchandising and
Location3-Sustainable Competitive Advantage- Superior advantage
over competitors, that can be maintained for a longer
period.Examples Retail StrategySaleem HardwareGourmet, Nirala,
Cakes and Bakes and Shezan, HKB, ALFateh, NM stores, vs Utility
store, CSDTarget MarketA Retail Market is a group of Consumers with
similar needs (market Segment) and a group of Retailers (sellers)
using similar retail format to satisfy those consumer needs All
potential buyers of Computers in Lahore with desire to buy,
supported with buying power and all the sellers of Computers
selling from their Retail shops, Homes o, on-line or any other form
is the Retail Market for ComputersNiralaGourmetCakes &
BakesShezanAssortment PositioningAvailability/ Number of
OutletsPositioningPricingBreadthDepthAmbianceCRMLocationRetail
FormatNiralaGourmetCakes & BakesShezanAssortment
PositioningSweetsBakeryBakeryBakeryAvailability/ Number of
OutletsRareExtensiveGoodRarePositioningHiHiMedMedPricingHiModerateLowModerateBreadthLowHiMedMedDepthHiMedMedMedAmbianceLoHIMedMedCRMLoLeastMedHiLocationOKBestModerateOKSustainable
Competitive AdvantageAction like Breadth and Depth of assortment,
Lowering of Prices etc are not likely to sustain AdvantagesMinimize
Competitive PressureIncrease Profits for a Longer timeKey to Long
Term Financial Performance
Sustainable Competitive Advantage7 Opportunities ( Explained in
next slides)1- Customer Loyalty2- Location3- Human resource
Management4- Distribution and Information System5- Unique
Merchandise6- Vendor Relations7- Customer ServiceSustainable
Competitive Advantage OpportunitiesCustomer LoyaltyLoyalty is more
than simply liking one Retailer over the otherIt is customers
Reluctance to patronize competitive RetailerCustomer is Committed
to buying from the specific storeWhen Customer can come next time
to buy a brand from the storeTravel a distance to visit the store
It is Customers LoyaltySustainable Competitive Advantage
OpportunitiesFactors Supporting Customer LoyaltyDevelop Clear and
Precise Positioning StrategiesCreate Emotional attachment with
Customer through Loyalty ProgramsPositioning is the design and
Implementation of a Retail Mix to create an image of the Retailer
in the customers mind relative to its CompetitorsPositioning of
Jahangir Sons from Stationary Shop to Family StorePositioning of
Fresh Store as Open always, Variety and Reasonable
PricedPositioning of Nirala as a Primarily Sweets shops compared to
Gourmet which is a Bakery although they keep sweets alsoPositioning
of Saleem Hardware, GulbergSaleem Fabrics
Sustainable Competitive Advantage OpportunitiesFactors
Supporting Customer LoyaltyLoyalty ProgramsLocationHRMDistribution
and Information SystemUnique MerchandiseVendor RelationsCustomer
Service
Strategic Retail Planning Process 7- Evaluate Performance and
Make Adjustments1-Define Business MissionStrategic Retail Planning
Process2- Conduct Situation AuditMarket AttractivenessCompetitor
AnalysisSelf Analysis3- Identify Strategic Opportunities4- Evaluate
Strategic Alternatives5- Establish Specific ObjectivesAllocate
Resources6- Develop Retail Mix to Implement Strategy7- Evaluate
Performance and Make Adjustments1-Define Business Mission
