retail market strategy 5.1 key issues what is retail strategy statement how does it differ from...

Retail Market Strategy 5.1

Key Issues

What is retail strategy statement How does it differ from “mission” and

“tactics” Career-search “strategy” The building blocks of retail strategy Process of developing retail strategy The characteristics of a “window of

opportunity” SWOT analysis


Strategy vs Tactics

Planning, Direction

Broad

Unstructured

Problem solving

Creative

External focus

Irregular

Long-term

Difficult to evaluate

Success comes from having a good strategy& executing it well

Strategy TacticsImplementation

Specific, detailed

Structured

Problem solving

Analytical

Internal focus

Regular

Short-term

Easy to evaluate


The Building Blocks of Retail Strategy

What are the elementsof the retail mix?

What are theenvironmental

variables?

ControllableVariables

Store Location Store Format & Layout

Merchandise Management Pricing

Communications

UncontrollableVariables

Consumers Competition Technology

Economic Conditions Seasonality

Legal Restrictions


E.g., McDonald’s Retail Strategy

What is McDonald’s …Target marketRetail formatBases for competitive advantageWhat threats might it face in the future?


RetailStrategy

The main focus:The main focus:Bringing harmony between the controllableBringing harmony between the controllable

variables and the uncontrollable ones.variables and the uncontrollable ones.Uncontrollable variables drive the controllable ones!Uncontrollable variables drive the controllable ones!

Developing an Overall Retail Strategy

Retail Marketing Mix:Retail Marketing Mix:Controllable FactorsControllable Factors

Competition & Environment:Competition & Environment:Uncontrollable FactorsUncontrollable Factors

What’s the3rd element

of retailStrategy?

TargetMarket


Store Location Store Format & Layout

Merchandise Management Pricing

Communications


Consumers Competition Technology

Economic Conditions Seasonality

Legal Restrictions


Which are SustainableCompetitive Advantages?

Dropping prices Building a store at the best location Selling hot merchandise Increasing advertising Attracting better sales associates by

paying higher wages Providing better customer service


Sources of Sustainable Competitive Advantages

More Sustainable Less Sustainable


Evaluate Performance,Make Adjustments

Develop aRetail Mix

Establish Objectives, Allocate Resources

Evaluate StrategicAlternatives

Identify Strategic Opportunities

SituationAudit

Process of Retail StrategyDefine the

Mission


Situation Analysis

Define theMission

Organizational Mission StatementOrganizational Mission Statement

Ownership & ManagementOwnership & Management

Product CategoryProduct Category

SWOT AnalysisSWOT Analysis


Form for Mission Statement

A mission statement should include:

• The product/service to be delivered

• The store’s claim (USP)

• Other important claims

• Identification of the target segment

• What the segment will get

• What the segment must give up


Situation Analysis

Define theMission

Organizational Mission StatementOrganizational Mission Statement

Ownership & ManagementOwnership & Management

Product CategoryProduct Category

SWOT AnalysisSWOT Analysis


Window of Opportunity

Weak

Strong

Windowof

Opportunity

High

LowHigh Low


SWOT AnalysisStrengths Weaknesses

Opportunities

Threats

Identify theStrategies

here

SWOT Analysis is a systematic approach to optimizing the fit between external & internal var’s

Retail Mix … plusManagement capabilities

Financial ResourcesOverhead Cost Structure

Merchandising CapabilitiesStore Management Capabilities

Store LocationsLoyalty of Customers

Retail Mix … plusManagement capabilities

Financial ResourcesOverhead Cost Structure

Merchandising CapabilitiesStore Management Capabilities

Store LocationsLoyalty of Customers

Consumer TrendsCompetitiion

Economic ConditionsSeasonality

Legal Restrictions

Consumer TrendsCompetition

Economic ConditionsSeasonality

Legal Restrictions


Process of Retail Strategy

SituationSituationAnalysisAnalysis

CorporateObjectives

Sales & Profit

Satisfaction of Publics

Image & Positioning

IdentifyConsumers

As a result of theSituation Analysis


Objectives Statement

Any objective must be clear, concise, and realistic. Objectives are often based on profit, market share, growth, etc.

E.g., “…to get a 15% market share and maintain a profit margin of 25% by the end of the fiscal year” for a particular store. Or, “to increase comp store sales by 15% by end of the year.”

Note that each objective must have a time frame.

15%


Suggest Objectives for:

Krispy KreemKrispy Kreem Wal-MartWal-Mart Burger KingBurger King


Finalizing Retail Strategy

SituationAnalysis

CorporateObjectives

Sales & Profit

Satisfaction of Publics

Image & PositioningImage = how a retailer wants to be perceived by consumersPositioning = the strategy to project this image

IdentifyConsumers

OverallStrategy


Finalizing Retail Strategy


CorporateCorporateObjectivesObjectives

IdentifyIdentifyConsumersConsumers

OverallStrategy

SpecificActivities(Tactics)

Retail Mix Variables

Uncontrollable Variables

Short-term operations

Response to theenvironment


Monitoring Retail Strategy


CorporateCorporateObjectivesObjectives

IdentifyIdentifyConsumersConsumers

OverallOverallStrategyStrategy

SpecificSpecificActivitiesActivities

(Tactics)(Tactics)

Control(Monitoring)

Retail Mix Var’s

Uncontrollable Var’s

Short-term operations

Response to environ.

Evaluation

Adjustment


E.g., Chevron’s Control Mechanisms


JobStrategy

The main focus:The main focus:Bringing harmony between the controllableBringing harmony between the controllable

variables and the uncontrollable ones.variables and the uncontrollable ones.Uncontrollable variables drive the controllable ones!Uncontrollable variables drive the controllable ones!

Developing an Overall Job Strategy

Your “Marketing Mix”:Your “Marketing Mix”:Controllable FactorsControllable Factors

Competition & Environment:Competition & Environment:Uncontrollable FactorsUncontrollable Factors

What’s the3rd element

of retailStrategy?

YourTargetJobs


The economyJob availability

The “competition”Etc.


The economyJob availability

The “competition”Etc.


Your educationJob history

SkillsInterests

CommitmentAbility to distinguish

yourself


Your educationJob history

SkillsInterests

CommitmentAbility to distinguish

yourself


Your Own “Product” Strategy

Determine your target market Area of country Type of company Type of position

Assess & exploit your competitive advantage Unique skills Experience Knowledge

Develop then present yourself as a desirable “product”


What Firms Want

Critically Extremely Very Somewhat Not0

10

20

30

40

50

8

12

16 16

54

Specific BusinessConcentration

17

10

3331

10

Relevant WorkExperience

16

9

24

1

49

GPA

21 22 2121

14

Being aBus. Major

%

How Important is this Characteristic?


What Firms Want

Integrity 96.7

Strong work ethic 86.9

Professional demeanor 85.2

Initiative 83.6

Emotional maturity 80.3

Self confidence 79.0

Leadership ability 78.7

Personable 62.9

Creativity 55.0

% CriticallyImportantAttribute


E.g., Interpreting a Mission

Knocking on doors

Teaching Contacts

Missionary Training

Learning a 2nd Language

Living in a Foreign Culture

Working Long Hours

Self-motivation, self-discipline, handling rejection, creativity

Training, interpersonal skills, self-confidence, goal setting

Leadership, time management, planning, communications

Learning skills, adaptability to new concepts, perseverance

Ability to work with a new culture, tolerance

Dedication & hard work

Action Skill Derived


What Is the Interviewer Really Asking?

Tell me about yourself Why are you interested in this position? What are your geographical requirements? What are your salary requirements? Tell me a story! Do you have any questions?


Selling YourselfPreparation & Interview

Network PracticeInterviews

Coverletter/

Resume

InformationInterviews

Self-Knowledge

EmployerKnowledge

A Career Position

TestingTesting ResumeResume Self-Self-EvaluationEvaluation

PlacementPlacementCenterCenterLibraryLibrary

AlumniAlumniDatabaseDatabase

InfoTrac,InfoTrac,Lexis/Nexis,Lexis/Nexis,

InternetInternet


Telling the Same Thing …

Should we tell the same story to every interviewer?

Should we customize our presentation? … our resume? … our cover letter?

Why? (Or why not?)

For the same reasons, retailers must focus their strategy on their target market

retail market strategy 5.1 key issues what is retail strategy statement how does it differ from...

Documents

retail market strategy

retail strategy statement

mcdonalds retail strategy

retail mix

rd element of retail

good strategy

mission slide

strategy vs tactics