RETAIL STRATEGY

DEFINITION
It is a clear and definite plan outlined by the retailer to tap the market.
A plan to build a long-term relationship with the consumers.
Process of strategy formulation in retail is the same as that for any other
industry. It starts with the retailer defining or stating the mission for the
organization.
Outlines mission, goals, consumer market, overall and specific activities,
and control mechanisms
The overall plan or framework of action that guides a retailer
BUILDING A SUSTAINABLE COMPETITIVE ADVANTAGE
Green Movement is becoming the buzzword of today’s business world. Across the
world businesses are developing green strategies and thereby are working towards
developing a low carbon landscape. Retailing is as old as business, trade and
commerce and currently has revolutionized into new forms and formats. As the retail
sector is quite energy intensive, retailers are left with no choice but to consider and
adopt eco-friendly practices.
The retailers serve as strategic touch point between producers and consumers and
own the responsibility of offering green products and the greening of consumption.
Green Retailing (GR) refers to the management approach that pursues environmental
protection to improve the retail value chain through eliminating waste, increasing
efficiency and reducing costs.
Designing retail supply chains to integrate the concepts of Radio Frequency
Identification (RFID), Efficient Consumer Response (ECR) and visibility presents
opportunities for sustained competitive advantage.
The Retailers would sustainable competitive advantage only if its resources
and skills are valuable, rare, irreplaceable and difficult to imitate.
VRIO - To lead to a sustainable competitive advantage, a resource or
capability should be valuable, rare, inimitable (there are no substitutes), and
possessed by the organization despite it being costly to imitate in terms of
time or money or both.
GROWTH STRATEGIES
Market Penetration
It implies increasing the share in the existing markets with the current product or
service range. This strategy is build on established capabilities and does not require
the organization to venture into unchartered territories.
The market penetration strategy can be executed in a number of ways:
Decreasing prices to attract new customers
Increasing promotion and distribution efforts
Acquiring a competitor in the same marketplace
2. Product Development
In a product development strategy, the firm plans to develop new products to cater
to the existing market. This usually implies extensive research and development and
expanding the range of the firms products and services. The product development
strategy is employed when firms have a strong understanding of their current market
and are able to provide innovative solutions to meet the needs of the existing
market.
It can be implemented in a number of ways:
Investing in R&D to develop new products to cater to the existing market
Acquiring a competitor’s product and merging resources to create a new product
that better meets the need of the existing market
Forming strategic partnerships with other firms to gain access to each partner’s
distribution channels or brand
3. Market Development

This strategy involves offering existing products and services to new markets. This
expansion into new markets may suggest expanding into new geographies or new
customer segments and can very successful when

The firm owns proprietary technology that it can leverage into new markets
Potential consumers in the new market are profitable as they possess disposable
income
Consumer behavior in the new markets does not deviate too far from that of
consumers in the existing markets
4. Diversification

In a diversification strategy, the firm enters a new market with a new product.
Although such a strategy is the riskiest, as both market and product development are
required, the risk can be mitigated somewhat through related diversification.
RETAIL LOCATIONS
Choosing a retail store location is one of your most important
decisions when starting a retail business. The site can make or
break a store. So, for a long-lasting existence in the market,
we need to choose the location wisely.
Retail locations are places where businesses sell their goods in
person. It is essential to locate your retail store in an area
where most of your potential customers shop, whether in a
traditional brick-and-mortar store or a mall space.
RETAIL SITE LOCATION
While setting retail marketing strategies, you should also consider the retail store’s location.
Here are some of the reasons why choosing the right Retail Location is very important for a
business:

 The location of a business is a unique factor that competitors cannot replicate. Thus, it can
give a competitive advantage.
 Long-term capital investment is required.
 The outlet must be located in an excellent area to attract customers.
 A well-located store makes supply and distribution easier.
 The location of a business can influence the buying habits of customers.
 Retail location selection is a long-term decision. So, choosing the right site becomes very
crucial to the business.
TYPES OF RETAIL SITE LOCATIONS
1. The Brick-And-Mortar Store
It represents the most
traditional type of physical
location. A freestanding store
also called an anchor store, is
a building used by retailers to
connect with their customers.
2. Space In Shopping Mall
Shopping malls are places
where people go shopping.
Usually spanning thousands and
millions of square feet, such
centres feature many stores
under one roof, from big box
retailers to independent
boutiques.
3. Shopping Centres:
Another retail location is a
shopping centre, also
known as a strip mall,
which is a busy building
where people come to
shop solely.
It covers around 20
physical stores- including
restaurants in a single
area.
4. Business Parks:
Business parks are often used as
headquarters by businesses.
On some of them, you’ll find
industrial plants and warehouses.
However, these units can be an
excellent retail location for
expanding your retail business.
5. Downtown
Downtown is the leading
business and commercial district
in a city or town.
Retail units are often located
beneath high-rise apartments,
combining retail with residential.
6. Home Based
Locating a retail location involves a lot
of work.
You can set up your business in your
home if you’re still unsure about what is
best for your business.
RETAIL ORGANIZATION AND HRM
Human resource management is more important in retail organizations than in any
other firm. Take, for example, manufacturing companies: they’re capital intensive,
meaning that they require more investment for machines and equipment to manage
merchandise.
On the other hand, retail companies are labor-intensive, therefore requiring more
trained employees for development.
A poorly functioning human resources department will likely result in employee
conflict, inadequate training, and an unfavorable work environment.
Due to its unique strategic challenges, retail companies require HR skills such as the
ability to work in a fast-paced environment and confidence in handling large volumes
of recruitment. HR professionals in this branch must be incredibly flexible and fast-
thinking in order to keep up with the pace of this rigorous industry.
GAINING COMPETITIVE ADVANTAGE THROUGH
CRM
Streamlining customer service and utilizing data through a CRM
provides the best opportunity to retain and gain customers, and
savvy organizations will recognize that those who are leaders in
customer service are more frequently finding success.
As customer attitudes continue to change and expectations climb, it
will be binding on decision-makers to ensure that they have the
right technologies in place so that they can effectively offer a
great customer experience.
RETAIL COMMUNICATION MIX: METHODS OF
COMMUNICATING WITH CUSTOMERS
The retail communication mix refers to the various elements and strategies that
retailers use to communicate with their target audience and promote their products or
services. It includes a combination of traditional and digital marketing channels to
effectively reach and engage customers.
The key components of the retail communication mix typically include:
Advertising: This involves paid promotional messages through various media channels
such as television, radio, print, and online platforms to create awareness and
generate interest in the retailer's offerings.
Personal Selling: This involves direct interaction between the retailer's sales
representatives and customers to provide personalized product information, address
queries, and persuade customers to make a purchase.
Sales Promotion: This includes short-term incentives and offers such as discounts,
coupons, loyalty programs, contests, and giveaways to encourage immediate sales
and customer loyalty.
Public Relations: This involves managing the retailer's image and reputation through
activities such as media relations, press releases, sponsorships, events, and community
involvement to build trust and enhance brand perception.
Direct Marketing: This includes targeted communication through channels like email,
SMS, direct mail, and catalogs to reach specific customer segments and promote
products or services directly.
Digital Marketing: This encompasses various online strategies such as search engine
optimization (SEO), social media marketing, content marketing, influencer
collaborations, and online advertising to reach and engage customers in the digital
space.
Store Atmosphere: This refers to the physical environment and ambiance of the retail
store, including factors like store layout, visual merchandising, music, lighting, and
scent, which contribute to the overall customer experience and communication of the
retailer's brand.
By utilizing a mix of these communication elements, retailers can effectively convey
their brand message, attract customers, and drive sales. It is important for retailers to
carefully plan and integrate these components to create a cohesive and impactful
communication strategy.
Thank you