Retail Market Strategy

Unit 3

Retail strategic planning process

Organizational mission Situation Ownership & management analysis alternatives Goods/service category Sales Objective Profit s Satisfaction of public Image Mass marketing Identification Concentrated marketing of consumers Differentiated marketing Controllable Overall variables Uncontrollable strateg variables y Specifi Daily & short term operations c activiti Responses to environment es Evaluatio Contro n Adjustme l nt

Retail strategic planning process

Overall strategy: A. Controllable variables: Store location Managing business Merchandise mgmt & pricing Communicating with customer B. Uncontrollable variables: Consumers Competition Technology Economic conditions Seasonality Legal restrictions

Strategic Positioning
The three positions that retailers use as strategy are:
Variety based positioning Need based positioning Access based positioning

Competitive advantage through effective HRM

This is because: Effective mgmt of employees can help retailers to

gain cost advantage, for labor costs make up significant percentage of retailers total expenses. Since employees are actively involved in selecting merchandise, provide information & assistance to customers, they can give that added touch to differentiate retailers offering from their competitors. Since employees behavior while interacting with customers is unique & intangible this gives retailer potential advantage which will be difficult for competitors to duplicate.