34
Retail Market Strategy ~Eden Clifford

Retail Market Strategy

  • Upload
    edenc08

  • View
    269

  • Download
    2

Embed Size (px)

DESCRIPTION

CH 5: Retail Market Strategy

Citation preview

Page 1: Retail Market Strategy

Retail Market

Strategy~Eden Clifford

Page 2: Retail Market Strategy

What is a

Reta

il

Stra

tegy?

Sustainable Competitiv

e Advantage

Retail Forma

t

Target Market

Page 3: Retail Market Strategy

Targ

et M

arke

t &

Reta

il Form

at

Retail Concept

Retail Market

Fashion Segments

Retail

Formats

Conservative Traditional Fashion-Forward

Specialty Store

Fashion Bug The Gap The LimitedTalbots

BebeUrban Outfitters

H&M

Department Store

JCPenneyKohl’s

Saks Fifth Ave.Bloomingdale’sNeiman Marcus

Discount Store

Family Dollar

Dollar General

Off-Price Store

Ross Stores T.J. Maxx SteinmartBluefly.com

KmartWalmart Target

Macy’s

Page 4: Retail Market Strategy

Build

ing a

Susta

inable

Com

petitive

Adva

nta

ge

Relationship w/ Customers

Customer Loyalty

Page 5: Retail Market Strategy

Custo

mer

Loya

ltyBrand Image

Positioning

Unique Merchandise

Customer Service

CRM Programs

Page 6: Retail Market Strategy

Rela

tionsh

ips

with

Supplie

rsVendor Relations

Page 7: Retail Market Strategy

Effi

ciency o

f

Inte

rnal O

pera

tions

Human Resource

Management

Distribution & Information

Systems

Page 8: Retail Market Strategy

Loca

tion

Starbucks creates a competitive

advantage by picking multiple good

locations that saturate an area

Page 9: Retail Market Strategy

Multip

le S

ource

s

of A

dva

nta

ge

McDonald’s long-term success is based on providing

customers with a good value that meets their expectations,

having good customers with a strong brand name, and

offering convenient locations

By pursuing all these strategies effectively, McDonald’s has

developed a strong competitive position in the quick-service

restaurant market

Page 10: Retail Market Strategy

Gro

wth

Stra

tegie

s

Market Penetration

Market Expansion

Retail Format Development

Diversification

Growth Opportunities & Competitive

Advantage

Target Markets

Retail

Format

Existing New

Existing

Market Penetration Market Expansion

New

Format DevelopmentDiversification

(unrelated/related)

Page 11: Retail Market Strategy

Marke

t

Penetra

tion

Market Penetration growth

opportunity

Can involve either attracting

new consumers from the

retailer’s current target

market who don’t patronize

the retailer currently

Cross-Selling

Ex. BBW

Page 12: Retail Market Strategy

Marke

t

Exp

ansio

nMarket Expansion Growth

Opportunity

Ex. Dunkin’ Donuts has

been opening new stores

outside its traditional target

market in the northeastern

United States.

Page 13: Retail Market Strategy

Reta

il Form

at

Deve

lopm

ent

Retail Format

Development Growth

Opportunities

Ex. The UK based retailer

Tesco has employed a retail

format development growth

strategy by operating

several different food store

formats that all cater to

essentially the same target

market.

Page 14: Retail Market Strategy

Dive

rsifica

tion

Diversification Growth

Opportunity

Related vs. Unrelated

Vertical Integration

Page 15: Retail Market Strategy

Gro

wth

Opportu

nitie

s

& C

om

petitive

Adva

nta

ge

When retailers pursue

market expansion

opportunities, they build

on their advantages in

operating a retail format

& apply this competitive

advantage in a new

market.

Page 16: Retail Market Strategy

Glo

bal G

row

th

Opportu

nitie

sOf the 50 largest retailers

in the world, only 12

operate in one country

In India, men’s ready-

made apparel generates

about 2-3 times more sales

than women’s apparel

Page 17: Retail Market Strategy

Attra

ctiveness o

f

Inte

rnatio

nal M

arke

ts

Factors The potential size of the retail

market in the country

The degree to which the country does & can support the entry of foreign retailers

Country Potential Country Support

Population (+) Market share of modern retailing (+)

Population growth rate (+) Quality of infrastructure, transportation & communications (+)

GDP (+) Urban population (+)

GDP per capita (+) Market share of leading domestic retailers (-)

Retail sales (+) Ease of doing business (+)

Growth rate in retail sales (+)

Business-friendly laws & regulations (+)

Retail sales per capita (+) Political stability (+)

Income distribution (+) or (-)

Age distribution (+) or (-)

Page 18: Retail Market Strategy

Keys to

Succe

ssGlobally Sustainable

Competitive Advantage

Adaptability

Global Culture

Financial Resources

Page 19: Retail Market Strategy

Entry S

trate

gie

sDirect Investment

Joint Venture

Strategic Alliance

Franchising

Page 20: Retail Market Strategy

Stra

tegic R

eta

il

Pla

nnin

g

Proce

ss

Define the Business Mission

Conduct a Situation Audit

- Market Attraction Analysis

- Identify Strategic

Opportunities

- Self-Analysis Competitor Analysis

Evaluate Strategic

Alternatives

Establish Specific

Objectives & Allocate

Resources

Develop a retail mix to

implement strategy

Evaluate Performance &

Make Adjustments

Page 21: Retail Market Strategy

Ste

p 1

: Define

the B

usin

ess

Missio

nMission Statement

Ex. Maxine Clark, founder

& chief executive bear at

Build-A-Bear Workshop, in

discussing her goals for

the company says, “We

also believe strongly that

we need to give back to

communities in which we

have stores.

Page 22: Retail Market Strategy

Ste

p 2

: Conduct

a S

ituatio

n

Audit

Situation Audit

Market Factors

Competitive Factors

Barriers to entry

Scale economies

Bargaining power of vendors

Competitive Rivalry

Environmental Factors

Strengths & Weakness

Analysis

Page 23: Retail Market Strategy

Ste

p 3

: Identify

Stra

tegic O

pportu

nitie

sKelly Bradford presently

competes in gift retailing

using a specialty store

format

See Exhibit 5.4 pg. 137

Page 24: Retail Market Strategy

Ste

p 4

: Eva

luate

Stra

tegic O

pportu

nitie

sBoth the market

attractiveness and the

strengths and weaknesses

of the retailer need to be

considered in evaluating

strategic opportunities

Page 25: Retail Market Strategy

Ste

p 5

: Eva

luate

Perfo

rmance

& M

ake

Adju

stments

Components:

The performance sought may

be measured

A time frame within which

the goal is to be achieved

The level of investment

needed to achieve the

objective

Page 26: Retail Market Strategy

Ste

p 6

: Deve

lop a

Reta

il Mix to

Imple

ment th

e

Stra

tegy

Develop a retail mix for

each opportunity in

which an investment will

be made & control &

evaluate performance

Page 27: Retail Market Strategy

Ste

p 7

: Eva

luate

Perfo

rmance

& M

ake

Adju

stments

Evaluate the results of the

strategy & implementation

program

Page 28: Retail Market Strategy

Stra

tegic P

lannin

g

in th

e R

eal W

orld

Define the Business

Conduct a Situation Audit

Identify Strategic

Opportunities

Evaluate Strategic

Alternatives

Establish specific Objectives

Develop a Retail Mix to

Implement Strategy

Evaluate Performance & Make

Adjustments

Page 29: Retail Market Strategy

Assig

nm

ent 1

Prepare an analysis of a

company, using Glogster.

Identify its direct

competitors, its target

market & positioning, its

strategy w/ respect to its

competitors, its retail format

(the elements in its retail

mix: merchandise variety &

assortment, pricing

locations), and its bases for

developing a competitive

advantage to is competitors.

Page 30: Retail Market Strategy

Assig

nm

ent 2

Pick a company and

outline the retailer’s

strengths, weaknesses,

opportunities & threats

relative to its competitors.

Use Animoto (

www.animoto.com) for

each element of the

SWOT analysis.

Page 31: Retail Market Strategy

Assig

nm

ent 3

Explain & provide an

example of each of the

growth strategies using

Prezi or Photopeach.

Include Market Penetration,

Market Expansion, Retail

Format Development,

Diversification, and

Competitive Advantage

Page 32: Retail Market Strategy

Assig

nm

ent 4

Visit 2 stores that sell similar

merchandise categories and

cater to the same target

segments. How are their retail

formats (the elements in their

retail mixes) similar?

Dissimilar? On what base do

they have a sustainable

completive advantage?

Explain.

Create a podcast or use

blabberize explaining your

findings.

Page 33: Retail Market Strategy

Assig

nm

ent 5

Pick a store that you believe

has an effective customer

loyalty. Explain why you

believe it is so.

Remember to include the

activities that retailers engage

into to build loyalty: (1)

developing a strong brand

image, (2) having a clear &

consistent positioning, (3)

providing outstanding customer

service, (4) unique

merchandise, and (5) customer

Service

Use any media to sum your

explanations.

Page 34: Retail Market Strategy

Assig

nm

ent 6

Using Comic Life choose

a retailer and describe

how it has developed a

competitive strategic

advantage.

Include barriers to entry,

scale economics, customer

loyalty, and the availability

of great locations.