Retail Institution by Store based

Strategy mix

Dr. Gopal Thapa

Tribhuvan University
Email:thapazee@gmail.com
Retail Institutions by Store Based
Strategy Mix
 Consideration in Planning a retail strategy mix
 The wheel of retailing
 Scrambled merchandising
 The retail lifecycle
 Merger, diversification, downsizing
 Categorized
Consideration in Planning a retail
strategy mix
 Store location
 Operating procedure
 Goods/services offered
 Pricing tactics
 Store atmosphere and customer services
 Promotional methods
Store Location
 Use of store or non-store format
 Placement in a geographical area
 Kind of site (such as shopping center)
Operating Procedures
 Kinds of personnel employed
 Management style
 Store hours
 Others
Goods/ services offered
 Several product categories or just one
 Quality: low, medium, high
Pricing
 Prestige pricing: High quality and image
 Competitive pricing: at the level of rivals
 Penetrated pricing: underpricing
Store Atmosphere and Customer
Service
 Physical facilities
 Personal attention
 Return policies
 Delivery
 Others
Promotional Methods
 Advertising
 Displays
 Personal selling
 Sales promotion
Destination Retailer
 Retailer should strive to be dominant in some way
 Destination retailer status – whereby consumers
view the company as distinctive enough to
become loyal to it and go out of their way to shop
there
Ways to be a destination retailer
 Be price oriented or cost efficient to attract price
sensitive customers
 Be upscale to attract full-service, status conscious
customers
 Be convenient to attract those wanting shopping
ease, nearby location or long hours
 Offer a dominant assortment to attract variety
seeking customers
 Offer superior customer service to attractive
service oriented customer
 Be innovative or exclusive and provide a unique
Wheel of Retailing
 Retail innovator often first appear as low-price
store with low cost and low profit margin .
 Over time, they upgrade the product and improve
facilities and customer service and the price rise.
 As innovators mature, they become vulnerable to
new discounters with low costs
 Low price - high price – low price
 Focused on Product quality, prices and customer
services
Wheel of Retailing
 Low-end strategies: low price, limited service and
facilities, price sensitive customers
 Medium strategies: Moderate price, improved
facilities, broader base of value and service
conscious consumers
 High-end strategies: High prices, excellent
facilities and services, upscale consumers
Scrambled Merchandising

 When a shop/retailer sells products in his shop

which do not belong to the usual assortment of
products he keeps or sells it is called scrambled
merchandizing. A retailer may opt for scrambled
merchandizing to boost his top line/bottom line
and also for better space utilization. Scrambled
merchandizing indicates scattered product
management and can leave a negative image in the
mind of the customer being unsure of what the
retailer sands for.
Scrambled Merchandising

 It occurs when a retailer adds goods and services

that may be unrelated to each other and to the
firm’s original business.
 Reasons for Scrambled merchandising
▪ Increase overall revenue
▪ Fast-selling
▪ Highly profitable goods
▪ Impulse purchase
▪ One stop shopping
▪ Different target market
▪ Impact of seasonality and competition
Retail Life Cycle
 Retail institution pass through identifiable life
stages;
 Introduction
 Growth
 Maturity
 Decline
Mergers, Diversification,
Downsizing
 Merger involve the combination of separately
owned retail firms
 Merger for: to jointly maximize resources, to
enlarge customer base, improve productivity and
bargaining power, limit weaknesses, and gain
competitive advantages.
 This is a way for resourceful retailers to grow
more rapidly and for weaker ones to enhance their
long-term prospects for survival
Diversification and Downsizing
 With diversification, retailors become active in
business outside their normal operation and adds
stores in different goods/service categories

 In downsizing, unprofitable store are closed or

divisions are sold-off by retailers unhappy with
performance
Any Queries?

Thank You

4/11/2018 Copy right reserved 19