Retailing Strategy & Retailing Mix Final

Welingkar Institute of Management Studies

Retailing Strategy & Retail Marketing mix

Presented by - Group No 6


• Executive Summary• Definition of Strategy • Strategy from Retail perspective• Strategic planning process • Growth strategy • Concept of Branding• Concept of Retail Branding• Retail Value Chain

Content


Executive Summary

– Strategy which involves the plan of action to achieve the target.

– The steps involved in strategic planning – defining the mission, analyzing the situation, identifying the options, setting objectives, obtaining and allocating the resources and developing and implementing the plan.


Executive Summary

– The Retail Marketing Mix - 7 P’s of Retailing These are the Product, the Price, the Place, the Promotion, the Presentation, the Process, the People

– The importance of retailing, its expansion/ growth opportunities, branding, and developing the retail value chain.


Strategy

• The word Strategy comes from ancient Greece, A

strategos means an Army General

• Strategy refers to a plan of action designed to

achieve a particular goal

• “Strategy is about being different, It means

deliberately choosing a different set of activities

to deliver unique mix of value”- Michel Porter


Strategy

• Three value disciplines to form basis of

strategy by Treacy and Wierseman are

– Operational Excellence

– Customer Intimacy

– Product Leadership


Strategy- The Retail Perspective

• Retail strategy is defined as- “A clear and

definite plan that the retailer outlines to tap

the market and build a long term relationship

with the consumer”


Strategy- The Retail Perspective

• Primary areas whose strategy is based on

Retail Strategy are:

• Store Location

• Merchandising

• Pricing

• Communication


Steps involved in developing a Retailing Strategy


Establish Mission

• Mission statement is a statement of long term purpose of the organization, describes what retailer wishes to accomplish and market in which he chooses

• Mission statement normally highlights following elements

- The products and services that will be offered- Customer who will be served- Operational geographic area- Manner in which firm intend to compete

• Eg- Café coffee day- To be the best café chain in the country by offering world class coffee experience at affordable price


Analyze situation

• Once the mission statement is defined organization has to look on for its strength weakness and the competitive environment around

• There are various models which has been developed by experts for situation analysis they are

- PEST analysis - SWOT analysis - BCG matrix- Porter 5 forces Model


Identifying options/Strategic Alternatives

• This involves evaluating various alternative by using Ansoff matrix.

• Ansoffs matrix involves following options: - Market Penetration - Market Development - Retail Format Development - Diversification


Ansoff Model Market Segment


Set Objectives

• Objective should be: • Measurable • Time bound• Specific

• Two important areas for determining Objectives:• Market performance • Financial Performance


Obtain and Allocate Resources

• Major resources to be obtained are:• Financial resources - Rent, Salaries Payments to

vendors, etc • Human resources – Recruiting, Selecting,

Trainning, Compensating and Motivating


Develop & Implement the Plan

• Involves setting of objectives in Target Market and Retails Mix for servicing the target customer• Target Market – Segment of consumer market

which retailer decides to serve• Segment - Measurable, Accessible, Economically Viable

& Stable

• Retail Mix – Includes Merchandising mix, Pricing policy, Location, Services offered and communication platform


Presentation

7 P’s of Retailing


Product• Product is termed as Merchandise

– Merchandise line consist of group of product closely related, intended for same end use & sold to same customer group

– Variety - Number of different lines that retailer stocks– Assortment - Number of different brands in

merchandise line– Depth - is referred to average no of stock keeping

units with in each brand of merchandise line

•


Price• Pricing policy depends on:

• Customer profile • Range of products • Uniqueness

• Key elements for pricing are • Costs• Profitability• Value for money• Competitiveness• Incentives• Quality• Status


Place

• Key elements for selecting a place are – Target market– Channel structure– Channel management– Retailer image– Retail logistics– Retail distribution

– However now place is no more a prime factor in retailing mix as new technologies like internet retailers are going for click and mortar approach


Promotion

• Key elements of promotion includes– Developing promotional mixes– Advertising management– Sales promotion– Sales management– Public relations– Direct marketing


Presentation

• This includes:• Store layout • Ambience• Visual Merchandising


Customer service (Process)

• Key elements include – Order processing– Database management– Service delivery– Queuing system– Standardisation– Credit policy


People

• The people at front end are face of the organization - Their attitude, behavior ,manners and product knowledge play a very important role in the long term relationship with customer

• The key elements are • Staff capability• Efficiency• Availability• Effectiveness• Customer interaction


Evaluate and control

• Evaluation is done to :• Measure Success of the strategy• To measure effectiveness of the strategy

periodically • This evaluation guarantees the firm’s plan does

not degenerate in fragments and • Efforts are in harmony with overall competitive

strategy of business.


Growth Strategy

• Method of Growth for a retailer:– Export- selling domestic product internationally– Franchising/Licensing– Acquisition and Merger – Joint Venture – Organic Growth- replicating the retail format in

the non domestic market, within the regulatory framework of new market


Branding

– Brand is a name, term, design, symbol, or combination to identify the goods or services

– Branding is a total experience a customer has with a product or service

– It is every single contact that occurs between any product and Human representative with a customer or potential customer.


Retail Value Chain

– This includes:• Inbound Logistics• Operations• Outbound Logistics• Marketing and Sales• Service• Procurement• Technology development• Human Resource Management


Group Members Manoj Ailani 6Yashwant Baviskar 16Amit Dhar 26Mun Mun Gentle 36Abhijit Jaktdar 46Atul Lamane 56Rahul Mudaliar 66Deepak Patil 76Bhupen Prajapati 86Maithili Sawant 96


Thank you

Documents

Retailing Strategy & Retailing Mix Final