Module 2
Module 2
Module 2
Customer Service
Merchandise Assortment
Retail Strategy
Pricing Location
Communication Mix
Retailing Strategy
Retail Locations Human Resource Management
Tactical Implementation Annual plan Specific, detailed Structured Problem solving Analytical Internal focus Regular Short-term Easy to evaluate
Target Market
Customer Needs Retail Format Method for Satisfying Needs Bases for Building Sustainable Competitive Advantage Defending Position Against Competitors
Raymond Strategy
Target Market
Specialty Apparel Stores in Malls and Strip Centers Selling Private Label, Coordinated Outfits
Bases for Building Sustainable Competitive Advantage
What Is McDonalds:
-Target market?
World of Titan and Tanishq Reliance Fresh KFC What is the target market, retail offering, and source of competitive advantage for each retailer?
Vendors, Suppliers
Customers
Sources of Capital
Loyalty
What does loyalty mean? Is It the same as liking a store? Going to the store frequently?
Methods Used to Develop a Strong Brand Massive Exposure Symbols to Reinforce Image Consistent Positioning Creating Strong Associations Limited Brand Extensions
Vendor Relationships
Low Cost - Efficiency Through Coordination
Electronic Data Interchange (EDI) Collaborative Planning and Forecasting to Reduce Inventory and Distribution Costs
Goes Beyond Hiring Good People at High Wages and Training Them -- Organizational Culture
Growth strategies
Market Penetration
Market Expansion
Growth Opportunities
Business Mission
In developing the mission statement, managers need to understand five questions: what business are we in? what should be our business in future? who are our customers? what are our capabilities? what do we want to accomplish? Goals and Objectives
COMPETITIVE FACTORS
ENVIRONMENTAL FACTORS
Barriers to entry Bargaining power of vendors Competitive rivalry Threat of superior new formats
Competitive Rivalry
Large Customers
Threat of Substitution
Financial Resources:
Cash flow from existing business Ability to raise debt or equity financing
Operations:
Overhead cost structure Quality of operating systems Distribution capabilities Management information systems Loss prevention systems Inventory control system
Locations
Merchandising Capabilities:
Knowledge and skills of buyers Relationships with vendors Capabilities in developing private capabilities
Customers
Loyalty of customers
Mission
SWOT
Operations Management
Social and Legal Environment: Socio economic environment, State of technology, Legal system, Ethical behavior
Target Market Men and Women Looking for Gifts between Rs 300- Rs 30,000 Strong Customer Loyalty Based on Knowing What Customers Want, Providing Good Customer Service Low Turnover Among Associates
Banglore is an attractive market. (+) Relatively expensive gifts are not affected much by the economy. (+) Gifts are highly seasonal. (-)
Competitive Factors
Many in area. Primary department stores, craft galleries, catalogs, and Internet retailers (-) Lack of large suppliers, customer (+) Opportunities for differentiation (+) Limited competitive rivalry. (+)
Market Expansion
Open gift stores outside Bangalore area Sell lower priced gifts in present stores
Diversification
Manufacture craft gifts Open an apparel store targeting teenagers Open a category killer store selling a broader assortment of gifts
Market Expansion
Open gift stores outside Bangalore area new geographic segment (medium) Sell lower priced gifts in present stores new benefit segment (medium)
Diversification
Manufacture craft gifts (High) Open an apparel store targeting teenagers (High) Open a category killer store selling a broader assortment of gifts (High)
Market Expansion
Open gift stores outside Bangalore area (Low) Sell lower priced gifts in present stores (low)
Diversification
Manufacture craft gifts (Low) Open an apparel store targeting teenagers (Low) Open a category killer store selling a broader assortment of gifts (Low)
Medium
Invest to challenge leader
Low
Opportunities investment Build strength or exit
Market Attractiveness
Aggressive investment
Cautious investment
Harvest or divest
Build on strengths
Protect position Manage for cash generation Harvest or divest Harvest or divest
Cautious investment