Retail Marketing Strategy

Chapter 5
Levy Weitz

Basharatullah Malik

What to Cover?
Retail Strategy?
Building Sustainable Competitive
Advantage
Steps- Developing a Strategy?
Different Strategic Opportunities?
Strategic Retail Planning Process

Retail Market Strategy

A Retail Market Strategy is the
ways through which a Retail
Company plans activities to
identify its target market, the
retail format to be used for
satisfying the needs of the target
market and building sustainable
competitive advantage

Retail Market Strategy

1-Target Market- a specific
segment or number of segments
clubbed together because of their
similar attributes, needs and likely
response towards the Retailers
offerings and advertising
messages(Self defined by BM)
Target market is the market
segment/s towards which the retailer
plans to focus its resources and

Retail Market Strategy

2-Retail Format- Retail Mix, Nature of
Merchandise Services offered, Pricing Policy,
Advertising & Promotion Program, Store Design,
Visual Merchandising and Location
3-Sustainable Competitive AdvantageSuperior advantage over competitors, that can be
maintained for a longer period.
Examples Retail Strategy
Saleem Hardware
Gourmet, Nirala, Cakes and Bakes and Shezan,
HKB, ALFateh, NM stores, vs Utility store, CSD

Target Market
A Retail Market is a group of Consumers
with similar needs (market Segment) and a
group of Retailers (sellers) using similar retail
format to satisfy those consumer needs
All potential buyers of Computers in Lahore
with desire to buy, supported with buying
power and all the sellers of Computers
selling from their Retail shops, Homes o, online or any other form is the Retail Market
for Computers

Nirala
Assortme
nt
Positionin
g
Availabilit
y/
Number
of Outlets
Positionin
g
Pricing
Breadth
Depth
Ambiance
CRM

Gourmet

Cakes &
Bakes

Shezan

Retail Format
Nirala

Gourmet

Cakes &
Bakes

Shezan

Assortme Sweets
nt
Positionin
g

Bakery

Bakery

Bakery

Availabilit Rare
y/
Number
of Outlets

Extensive

Good

Rare

Positionin Hi
g

Hi

Med

Med

Pricing

Hi

Moderate

Low

Moderate

Breadth

Low

Hi

Med

Med

Depth

Hi

Med

Med

Med

HI

Med

Med

Ambiance Lo

Sustainable Competitive
Advantage
Action like Breadth and Depth of
assortment, Lowering of Prices etc
are not likely to sustain
Advantages
Minimize Competitive Pressure
Increase Profits for a Longer time
Key to Long Term Financial
Performance

Sustainable Competitive
Advantage
7 Opportunities ( Explained in next
slides)
1- Customer Loyalty
2- Location
3- Human resource Management
4- Distribution and Information System
5- Unique Merchandise
6- Vendor Relations
7- Customer Service

Sustainable Competitive Advantage

Opportunities
Customer Loyalty
Loyalty is more than simply liking one Retailer
over the other
It is customers Reluctance to patronize
competitive Retailer
Customer is Committed to buying from the specific
store
When Customer can come next time to buy a brand
from the store
Travel a distance to visit the store

It is Customers Loyalty

Sustainable Competitive Advantage

Opportunities
Factors Supporting Customer Loyalty
Develop Clear and Precise Positioning Strategies
Create Emotional attachment with Customer through Loyalty Programs

Positioning is the design and Implementation of a Retail Mix to

create an image of the Retailer in the customers mind relative to
its Competitors
Positioning of Jahangir Sons from Stationary Shop to Family
Store
Positioning of Fresh Store as Open always, Variety and
Reasonable Priced
Positioning of Nirala as a Primarily Sweets shops compared to
Gourmet which is a Bakery although they keep sweets also
Positioning of Saleem Hardware, Gulberg
Saleem Fabrics

Sustainable Competitive Advantage

Opportunities

Factors Supporting Customer Loyalty

Loyalty Programs
Location
HRM
Distribution and Information System
Unique Merchandise
Vendor Relations
Customer Service

Strategic Retail Planning

Process
1-Define
1-Define Business
Business Mission
Mission

77- Evaluate
Evaluate Performance
Performance and
and
Make
Make Adjustments
Adjustments

Strategic Retail Planning

Process
1-Define
1-Define Business
Business Mission
Mission
22- Conduct
Conduct Situation
Situation Audit
Audit
Market
Market Attractiveness
Attractiveness
Competitor
Competitor Analysis
Analysis
Self
Self Analysis
Analysis
33- Identify
Identify Strategic
Strategic
Opportunities
Opportunities
44- Evaluate
Evaluate Strategic
Strategic
Alternatives
Alternatives
55- Establish
Establish Specific
Specific
Objectives
Objectives
Allocate
Allocate Resources
Resources
6Develop
6- Develop Retail
Retail Mix
Mix to
to
Implement
Implement Strategy
Strategy
77- Evaluate
Evaluate Performance
Performance and
and
Make
Make Adjustments
Adjustments