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Strategic Retail Management Guide

Learn the importance of strategic planning in retailing, key elements of a retail strategy, ownership options, target market selection techniques, and positioning approaches.

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Strategic Retail Management Guide

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  1. Chapter 3 RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS Strategic Planning in Retailing 1 1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  2. Retail Strategy • The overall plan or framework of action that guides a retailer • It should be at least one year long and contain a series of sequential steps. • Without a defined and well-integrated strategy, a firm may be unable to cope with the marketplace. 2 2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  3. Retail Strategy • A retail strategy has several attractive features. • It provides a thorough analysis of the requirements for doing business for different types of retailers. • It outlines retailer goals. • It enables a firm to differentiate itself from competitors. • The legal, economic, and competitive environment is studied. • It coordinates a firm’s total efforts. • It helps to anticipate and avoid crises. • . 3 3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  4. Figure 3-1: Elements of a Retail Strategy 4 4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  5. Organizational Mission Retailer’s commitment to a type of business and to a distinctive role in the marketplace. 5 5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  6. Figure 3-2: The Focused Organizational Mission of Frisch’s Restaurants 6 6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  7. Ownership and Management Alternatives • Sole proprietorshipis an unincorporated retail firm owned by one person • A partnershipis an unincorporated retail firm owned by two or more persons, each with a financial interest • A corporationis a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers 7 7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  8. Figure 3-3: Checklist to Consider When Starting a New Business 8 8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  9. Figure 3-4: Checklist for Purchasing an Existing Retail Business 9 9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  10. Figure 3-5a: Selected Kinds of Retail Goods and Service Establishments Durable Goods Stores: Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations 10 10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  11. Figure 3-5b: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Personal): Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services Service Establishments (Amusement): Movie theaters Bowling alleys Dance halls Golf courses 11 11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  12. Figure 3-5c: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs Service Establishments (Hotel): Hotels Motels Trailer parks Camps 12 12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  13. Image and Positioning An image represents how a given retailer is perceived by consumers and others. 13 13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  14. Positioning Approaches • Mass merchandising is a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities. • Niche retailing occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market. 14 14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  15. Figure 3-7: Selected Retail Positioning Strategies 15 15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  16. Target Market Selection • Three techniques • Mass marketing • Concentrated marketing • Differentiated marketing 16 16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  17. Strategic Implications of Target Market Techniques (Table 3-3) • Retailer’s location • Goods and service mix • Promotion efforts • Price orientation • Strategy 17 17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  18. Figure 3-9: Developing an Overall Retail Strategy • Controllable • Variables: • Store location • Managing business • Merchandise • management • and pricing • Communicating • with customer • Uncontrollable • Variables: • Consumers • Competition • Technology • Economic • conditions • Seasonality • Legal restrictions Retail Strategy 18 18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  19. Table 3-4a: Legal Environment and Retailing • Store Location • zoning laws • blue laws • environmental laws • direct selling laws • local ordinances • leases and mortgages • Managing the Business • licensing provisions • personnel laws • antitrust laws • franchise agreements • business taxes • recycling laws 19 19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  20. Table 3-4b: Legal Environment and Retailing • Merchandise Management and Pricing • trademarks • merchandise restrictions • product liability laws and lemon laws • sales taxes • unit-pricing laws • collusion laws • sale prices • price discrimination laws 20 20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  21. Table 3-4c: Legal Environment and Retailing • Communicating with the Customer • truth-in-advertising and selling laws • truth-in-credit laws • telemarketing laws • bait-and-switch laws • inventory laws • labeling laws • cooling-off laws 21 21 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  22. Additional Concerns for Global Retailing • In addition to the strategic planning process: • assess your international potential • get expert advice and counseling • select your countries • develop, implement, and review an international retailing strategy 22 22 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  23. Factors Affecting the Success of a Global Retailing Strategy • Timing • A balanced international program • A growing middle class • Matching concept to market • Solo or partnering • Store location and facilities • Product selection 23 23 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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