Week 7 #2 Get new and retain old
Retail Market Strategy It is critical for the retailer to keep its
consumers. Retailers can get new
A retail strategy is the method through consumers through advertising and
which you produce and market your items marketing initiatives, but the emphasis
or services to clients. should also be on maintaining existing
This strategy includes several components, customers.
including as site, shop,
merchandise/assortment, visual #3 Know your business
merchandising, staff, service, mass media Understanding the retail industry is also
and communications, and price. essential in developing a retail strategy. It is
Source: Retail Management: A Strategic critical that the retailer examine the nature
Approach (13th Edition) Barry R. Berman, of the business as well as the type of the
Joel R. Evans items offered.
A detailed marketing plan related to the of
the business, its targets and ways and #4 Know the competition
methods to achieve it, in relation to retail is Retail store has numerous rivals in the
known as retail strategy. neighborhood, and it is critical that the
Source: https://www.marketing91.com retail business be aware of its competition
and their distinct products.
Factors to consider while designing a retail
strategy Retail strategies to boost sales
Many elements that impact the retail Several techniques have been implemented
industry must be considered while creating by various retailers in order to increase the
a retail strategy. number of sales in the business. Although
The retailer should examine these variables most retail organizations differ from one
while keeping the cell project in mind another on a regular basis, they all use the
before designing the retail strategy. following basic tactics to improve sales.
#1 Partnerships
#1 Know thy customers
This relationship can be mutually agreed
Because the customer is the one who will upon for a fee based on the conditions of
purchase the material, understanding the business. Every client recommendation may
customer entails knowing the customer's be charged by the other merchants, or the
likes and dislikes, the preferences and tastes retailer may return the favor by referring
of various sorts of consumers, and current consumers to his reference when they
market trends. inquire about a product that the retailer
does not stock.
#2 Social media Sources of Competitive Advantage
The easiest way to reach a particular set of More Sustainable
the targeted audience is social media.
Location
With the help of social media, unwanted
Customer Loyalty
advertising expenses can be avoided, and
Customer Service
only specifically filtered customers can be
Exclusive Merchandise
targeted, and the store can be positioned.
Using Facebook has become very common Low Cost Supply Chain Management
to promote a business. Information Systems
Buying Power with Vendors
#3 Referral campaigns Committed Employees
Referral campaigns are similar to word-of- Less Sustainable
mouth marketing in that they promote two
distinct consumers by current customers, Better Computers
but the difference is that in More Employees
recommendation campaigns, customers are More Merchandise
compensated for each successful referral, Greater Assortments
which is not the case with word-of-mouth Lower Prices
efforts. More Advertising
More Promotions
#4 Instore advertising Cleaner Stores
Many retail shops have excellent in-store BUILDING A SUSTAINABLE COMPETITIVE
advertising that quickly converts walk-in
ADVANTAGE
customers. These shops use big displays of
items in their windows to attract window Three Approaches for Developing a Sustainable
shoppers by emphasizing special discounts Competitive Advantage
and the finest of their wares.
building strong relationships with
Elements of retail strategy customers,
building strong relationships with suppliers,
Target Market achieving efficient internal operations.
the market segment(s) toward which the Customer Loyalty
retailer plans to focus its resources and
retail mix customers are committed to buying
merchandise and services from a particular
Retail Format retailer.
the nature of the retailer’s operations—its More than simply liking one retailer over
retail mix another
Customers will be reluctant to patronize
Sustainable Competitive Advantage competitive retailers
an advantage over the competition Retailers Build Loyalty By:
Developing a strong brand image
Having a clear and consistent Unique Merchandise
positioning
It is difficult for a retailer to develop
Providing outstanding customer
customer loyalty through its merchandise
service
offerings because most competitors can
Undertaking Customer Relationship
purchase and sell the same popular national
Management (CRM) programs.
brands.
Retail Branding PRIVATE-LABEL BRANDS (AKA store brands
or own brands) products developed and
Can create an emotional tie with customers
marketed by a retailer and available only
that build their trust and loyalty
from that retailer.
Facilitates store loyalty because it stands for
a predictable level of quality Customer Service
Brand Image Retailers also can develop customer loyalty
by offering consistent excellent customer
Retailers build customer loyalty by
service.
developing a well-known, attractive image
“WOW Stories”—true stories of employees
of their brand, their name.
who have gone above and beyond
Strong brand images facilitate customer
conventional customer service expectations.
loyalty because they reduce the risks
associated with purchases. Growth Opportunities and Competitive
They assure customers that they will receive Advantage
a consistent level of quality and satisfaction
from the retailer. MARKET PENETRATION GROWTH
The retailer’s image can also create an OPPORTUNITIES have the greatest chances
emotional tie with a customer that leads of succeeding because they build on the
the customer to trust the retailer. retailer’s present bases of advantage and
don’t involve entering new, unfamiliar
Positioning markets or operating new, unfamiliar retail
formats.
A retailer’s brand image reflects its
When retailers pursue MARKET EXPANSION
positioning strategy.
OPPORTUNITIES, they build on their
The design and implementation of a retail
advantages in operating a retail format and
mix to create an image of the retailer in the
apply this competitive advantage in a new
customer’s mind relative to its competitors.
market.
PERCEPTUAL MAP is frequently used to
represent the customer’s image and Growth Opportunities and Competitive
preferences for retailers. Advantage
developed so that the distance between
two retailers’ positions on the map indicates A retail format DEVELOPMENT
how similar the stores appear to OPPORTUNITY builds on the retailer’s
consumers. relationships and loyalty of present
customers.
Even if a retailer doesn’t have experience
and skills in operating the new format, it
hopes to attract its loyal customers to IT
Retailers have the least opportunity to
exploit a competitive advantage when they
pursue DIVERSIFICATION OPPORTUNITIES.
