retail market strategy 5.1 key issues what is retail strategy statement how does it differ from...
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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
Retail Market Strategy 5.2
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
Retail Market Strategy 5.3
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
Retail Market Strategy 5.4
E.g., McDonald’s Retail Strategy
What is McDonald’s …Target marketRetail formatBases for competitive advantageWhat threats might it face in the future?
Retail Market Strategy 5.5
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
ControllableVariables
Store Location Store Format & Layout
Merchandise Management Pricing
Communications
UncontrollableVariables
Consumers Competition Technology
Economic Conditions Seasonality
Legal Restrictions
Retail Market Strategy 5.6
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
Retail Market Strategy 5.7
Sources of Sustainable Competitive Advantages
More Sustainable Less Sustainable
Retail Market Strategy 5.8
Evaluate Performance,Make Adjustments
Develop aRetail Mix
Establish Objectives, Allocate Resources
Evaluate StrategicAlternatives
Identify Strategic Opportunities
SituationAudit
Process of Retail StrategyDefine the
Mission
Retail Market Strategy 5.9
Situation Analysis
Define theMission
Organizational Mission StatementOrganizational Mission Statement
Ownership & ManagementOwnership & Management
Product CategoryProduct Category
SWOT AnalysisSWOT Analysis
Retail Market Strategy 5.10
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
Retail Market Strategy 5.11
Situation Analysis
Define theMission
Organizational Mission StatementOrganizational Mission Statement
Ownership & ManagementOwnership & Management
Product CategoryProduct Category
SWOT AnalysisSWOT Analysis
Retail Market Strategy 5.13
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
Retail Market Strategy 5.14
Process of Retail Strategy
SituationSituationAnalysisAnalysis
CorporateObjectives
Sales & Profit
Satisfaction of Publics
Image & Positioning
IdentifyConsumers
As a result of theSituation Analysis
Retail Market Strategy 5.15
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%
Retail Market Strategy 5.16
Suggest Objectives for:
Krispy KreemKrispy Kreem Wal-MartWal-Mart Burger KingBurger King
Retail Market Strategy 5.17
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
Retail Market Strategy 5.18
Finalizing Retail Strategy
SituationSituationAnalysisAnalysis
CorporateCorporateObjectivesObjectives
IdentifyIdentifyConsumersConsumers
OverallStrategy
SpecificActivities(Tactics)
Retail Mix Variables
Uncontrollable Variables
Short-term operations
Response to theenvironment
Retail Market Strategy 5.19
Monitoring Retail Strategy
SituationSituationAnalysisAnalysis
CorporateCorporateObjectivesObjectives
IdentifyIdentifyConsumersConsumers
OverallOverallStrategyStrategy
SpecificSpecificActivitiesActivities
(Tactics)(Tactics)
Control(Monitoring)
Retail Mix Var’s
Uncontrollable Var’s
Short-term operations
Response to environ.
Evaluation
Adjustment
Retail Market Strategy 5.21
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
UncontrollableVariables
The economyJob availability
The “competition”Etc.
UncontrollableVariables
The economyJob availability
The “competition”Etc.
ControllableVariables
Your educationJob history
SkillsInterests
CommitmentAbility to distinguish
yourself
ControllableVariables
Your educationJob history
SkillsInterests
CommitmentAbility to distinguish
yourself
Retail Market Strategy 5.22
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”
Retail Market Strategy 5.23
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?
Retail Market Strategy 5.24
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
Retail Market Strategy 5.25
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
Retail Market Strategy 5.26
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?
Retail Market Strategy 5.27
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