4.

Retail Strategy
Strategy- The Retail Perspective

A retail strategy can be defined as ‘a clear and definite

plan that the retailer outlines to tap the market and
build a long-term relationship with the customers.’
Steps Involved In Strategy Development
Establish Mission

Analyse situation

Identify options

Set objectives

Obtain and allocate resources

Develop the strategic plan

Implement the strategy, evaluate and control

 Step I- Define Organization's Mission
 A mission statement is a brief description of why a company or
nonprofit organization exists. In one to three sentences, it explains
what the company does, who it serves, and what differentiates it from
competitors.
 It’s used to provide focus, direction, and inspiration to employees
while it tells customers or clients what to expect from the business.

 Retailer’s mission statement normally highlight-

- The products and services that will be offered
- The customers who will be served
- The geographic areas that the organization chooses to operate in
-The manner in which the firm intends to compete in its chosen
markets
 Mission Statement: Examples
 Amazon: To be Earth's most customer-centric company where people can find and
discover anything they want to buy online.

 Wal-Mart:We save people money so they can live better.

 IKEA:To create a better everyday life for the many people.

 Starbucks: Establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising principles while we grow.

 Hyatt: To provide authentic hospitality by making a difference in the lives of the

people we touch every day
Step II- Conduct A Situational Analysis

• PESTLE analysis
- Political, Economic, Social,Technological factors etc.

• Porter’s Five Forces

- Entry barriers, suppliers, customers, substitute products
and industry rivalry
Step III- Identifying Options/ Strategic
Alternatives
 Step IV- Set Objectives
Sales Volume

Market Share

Retail Expansion

Profitability

Liquidity

Returns on Investment

Good objectives are measurable, are specific to time and indicate the
priorities for the organisation
Step V- Obtain And Allocate The
Resources Needed To Compete

Human Resources

Financial Resources
Step VI- Develop The Strategic Plan

 Segmentation
 Targeting
 Positioning
 Retail Marketing Mix
Step VII- Implement the Strategy,
Evaluate and Control
For implementation
- Focus on target market
- Single minded merchandising
- Appealing displays
- Advertising in sync
- Personnel empathy
- Customer service as per target customer
To evaluate
- Periodic evaluation
- Decision about future changes

All this helps in maintaining control

International Expansion- A Growth Strategy
Thank you.