RETAIL

MARKETING
STRATEGY

1
 BACKGROUND

Retail is one of the chains of distribution channels that play an important role in the delivery of

goods and services to the end customers. According to (Risch,1991) the word 'Retail' is derived

from a French word, retailer, with the prefix re and the verb tailer meaning "to cut again".

Meanwhile, the retail definition by (Gilbert, 2003) is any business that directs its marketing

effort towards satisfying the final customer based upon the organization of selling goods and

service as a means of distribution. Of these terms, retail is a business that becomes the last chain

of the distribution channel.

Retail also can be divided into two categories, the modern retail and the traditional retail

(Tambunan, 2004; Utomo, 2011). Both of the retail categories have different characteristics. In

accordance with (Utami, 2014), some of the characteristics between modern retail and traditional

retail are compared in table. One of the intermediaries in the marketing channel is retailers. A

retailer is a merchant or occasionally an agent or a business enterprise, whose main business is

selling directly to the end consumers for non-business use. The retailer performs many marketing

activities such as buying, selling, grading, risktrading, and developing information about

customer's wants. According to (Sullivan and Dennis, 2002), retailer is a dealer or trader selling

goods in small quantities or more pedantically the one who repeats or relates.

2
The set of business activities that adds value to the products and services sold to consumers for

their personal or family use is called retailing, by (Levy and Weitz, 2007; Berman and Evans,

2007). In this case, the end consumer is the target of a retailing who purchases products for their

own consumption whereas in the retailing business, goods and services or a combination of both

namely products that are sold. Based on (Vinod, 2005), retailing is a very complex business.

Getting the right product to the right store with the right quantity at the right time with the right

price at the lowest cost of delivery is a very challenging task. Retailing also consists of multiple

factors including location selection, pricing and promotions, distribution, market response,

lifetime value of retail customers, merchandising, customer loyalty programs, private labels,

price matching and return policies, new products, e-tailing, retailer–manufacturer interactions,

product assortment and stock-outs, retail branding, and customer satisfaction (Kamakura,

Kopalle, & Lehmann, 2014).

The various processes which help the customers to procure the desired merchandise from the

retail stores for their end use refer to retail management (Sunyoto, 2015). Retail management

includes the all steps required to bring the customers into the store and to fulfill their buying

needs. One thing that needs to be considered, particularly for the small retailer, is effective retail

merchandise management (Staples & Swerdlow, 1978). The effective retail merchandise

management is part of retailing business. Merchandise management can be termed as the

analysis, planning, acquisition, handling and control of merchandise investment of a retail

3
operation. The retailer must be able to plan and budget for the merchandise requirements to

avoid lost sales, lost profits, potential obsolescence, and lost opportunity cost due to a too large,

out-of-date inventory (Staples & Swerdlow, 1978).

Retail is the sales of goods and service from business to and end user (called a customer). Retail

marketing is the process by which retailers promote awareness and interest of their goods and

services in an effort to generate sales from their consumers. There are many different approaches

and strategies retailers can use to market their goods and services. Retailers use various

advertising and communication tools to grow awareness and considerations with future

customers. Finding the right marketing mix can lead to a profitable growth and a higher return on

investment. By considering the right advertising strategy retailers can persuade customers to

choose to do business with their retail brand. The fundamental approach used by modern retailers

in marketing their products is the Four PS of Retail Marketing.

The word “Retail” is derived from a French word with the prefix re and the verb tailer meaning

“to cut again”. Evidently, retail trade is one of that cuts of smaller portions from large lumps of

goods. It is a process through which goods are transported to final consumers. In other words,

retailing consists of the activities involved in selling directly to the ultimate consumer for

personal, non-business use. It embraces the direct-to-customer sales activities of the producer,

whether through his own stores by house-to-house canvassing or by mail-order business.

4
Manufacturers engage in retailing when they make direct-to-consumer sales of their products

through their own stores (as Bata and Carona) shoe companies, D.C.M. Stores, Mafatlals and

Bombay Dyeing) by door-to-door canvass, or mail order or even telephone, Even wholesaler

engages in retailing when sells directly to an ultimate consumer, although his main business may

still be wholesaling.

A retailer is a merchant or occasionally an agent or a business enterprise, whose main business is

selling directly to ultimate consumers for non-business use. He performs many marketing

activities such as buying, selling, risk-trading, and developing information about customer`s

wants. A retailer may sell infrequently to industrial users, but these are wholesale transactions,

not retail sales. If over one half of the amount of volume of business comes from sales to

ultimate consumers.

Obviously, working from home saves independent agents time and money. Not having to invest

in an office space is a huge perk, and not having to commute to work eliminates a lot of stress,

especially if it saves them a drive through rush-hour traffic. But there are a few lesser-known

benefits you`ll get as a home-based business. A lot of people don`t even think about them until

they start experiencing them for themselves.

Home based business can provide a more benefit towards to the owner. Save on gas and have

fewer car troubles. Since you don`t have to commute to work you`ll save money on gas or

whatever your preferred method of transportation is.

5
Snack whenever and as often as you want, without fear of being judged. Besides you don`t have

to make your mess back and forth or spend extra money going out for lunch because you forgot

your lunch at home.

You`ll have complete control over your work environment. This is crucial not only for your

productivity, but for your happiness. Your business can literally be run from your most comfy

chair, or with your favorite playlist playing (when you aren`t on the phone). As a related perk,

you don’t have to worry about dealing with co-workers that might disapprove of your style.