Download - Retailing Strategy & Retailing Mix Final
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Retailing Strategy & Retail Marketing mix
Presented by - Group No 6
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• 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
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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.
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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.
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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
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Strategy
• Three value disciplines to form basis of
strategy by Treacy and Wierseman are
– Operational Excellence
– Customer Intimacy
– Product Leadership
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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”
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Strategy- The Retail Perspective
• Primary areas whose strategy is based on
Retail Strategy are:
• Store Location
• Merchandising
• Pricing
• Communication
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Steps involved in developing a Retailing Strategy
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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
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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
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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
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Ansoff Model Market Segment
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Set Objectives
• Objective should be: • Measurable • Time bound• Specific
• Two important areas for determining Objectives:• Market performance • Financial Performance
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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
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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
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Presentation
7 P’s of Retailing
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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
•
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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
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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
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Promotion
• Key elements of promotion includes– Developing promotional mixes– Advertising management– Sales promotion– Sales management– Public relations– Direct marketing
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Presentation
• This includes:• Store layout • Ambience• Visual Merchandising
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Customer service (Process)
• Key elements include – Order processing– Database management– Service delivery– Queuing system– Standardisation– Credit policy
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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
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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.
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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
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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.
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Retail Value Chain
– This includes:• Inbound Logistics• Operations• Outbound Logistics• Marketing and Sales• Service• Procurement• Technology development• Human Resource Management
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Group Members Manoj Ailani 6Yashwant Baviskar 16Amit Dhar 26Mun Mun Gentle 36Abhijit Jaktdar 46Atul Lamane 56Rahul Mudaliar 66Deepak Patil 76Bhupen Prajapati 86Maithili Sawant 96
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Thank you