Retail

Marketing Strategy
Sumitted By: RMS Group 12
 01

What is Retail Strategy?

DEFINITION

Retail market strategy is a statement identifying:

● Target market- The market segment(s) retailer plans to
focus the resources and retail mix.
● Retail format- describes the nature of the retailer’s
operations and its retail mix.
● Sustainable Competitive advantage- an advantage
retailer has over its competition which is difficult to
mimic or copy

Strategy
Strategy is
is aa Greek
Greek word
word meaning
meaning “art
“art of
of the
the
general”
general”
FEW EXAMPLES:

Magazine Luiza Curves Save-A-Lot

● Targets low income ● Targets female baby
consumers boomers living in small
● Sells consumer towns.
electronics/appliances on ● Members work out on 8-
installment payment 12 hydraulic resistance
plans. machines, stopping
● Installement rate is between stations to
50%lower than other walk/jog.
brazilian retailers ● Monthly fee is
considerably less.
● 13th largest U.S super
market
● Able to provide 40%
lower price than other
super markets as they
offer only most popular
items..
● Offer high quality,
customized, private
labled products.
 02

Target Market & Retail Format

TARGET MARKET
• Market segment towards which retailers plans to focus its resources &
retail mix

• These group shares similar attributes such as demographics, income,

geography, and buying power & these have similar needs

• It helps to gain a better understanding of a company's current and

potential consumer base.

• Once a target market is identified, company can affect a product's price,

promotion, and distribution
RETAIL FORMAT
The format of a retail is the overall appearance and feel that it presents to customers ,
primarily its look and layout, the sort of range it stocks and the approach taken to pricing.

The retail format describes the nature of retailers operation – its retail mix.

Some types of retail formats:

1) Mom and pop stores (e.g.: Kirana stores)

2) Hypermarkets/ Supermarkets (e.g.: Big Bazaar)

3) E-retailers (e.g.: Amazon.inc)

4) Speciality stores (H&M)

RETAIL FORMAT CLASSIFICATION

“ The choice of the retail format depends on the type of product that we are selling and the type of
experience we intend to give to our customers through our stores ”
Its important to take maximum advantage from the retail format that we are opting for our store .
Format

Store Based Non-Store Based

Retailing Retailing

Independent retailer
Based on Chain retailer Direct selling
Ownership Franchise ..etc Mail Order
Telemarketing
Department store Automated vending machine
Based on
merchandise Convenient store
Supermarket ..etc
 03

Building a Sustainable Competitive

Advantage
COMPETITIVE ADVANTAGE
Competitive advantage can be reffered to as a:
 Fortification a retailer does around its position in the market, that is
around its potential and present customers and its competitors.
This makes it difficult for the competitors to enter the target market.
 Some advantages can be sustainable while others can be duplicated
easily.
 Over a period of time all advantages erode due to competitive
forces, hence establishing sustainable competitive advantage is the
key to the positive long term financial performance.
APPROACHES FOR DEVELOPING A
SUSTAINABLE COMPETITIVE
ADVANTAGE

Building strong relationship

with CUSTOMERS

Building strong relationship

with SUPPLIERS

Achieveing efficient
INTERNAL OPERATIONS
METHODS OF DEVELOPING
SUSTAINABLE COMPETITIVE ADVANTAGES
SUSTAINABLITY OF ADVANTAGE
Source of Advantage
Less Sustainable More Susatinable
Customer Loyality Repeat purchase due to less Build a brand image with an
competition emotional connection, using database
to develop and utilize a deeper
understanding of customers

Location Convenient Locations

HRM More Employees Committeed and knowledgeable

employees
 CONTD..
Source of Advantage
Distribution and Information System
Unique Merchandise
Vender Relations
Customer Service
SUSTAINABLITY OF ADVANTAGE
Less Sustainable
Bigger and Automated Warehouses
More merchandise; greater
assortment; lower price; higher
advertising budgets; more sales
promotion
Repeat purchase from vendor due
to limited alternatives
Hours of operations
More Susatinable
Shared system with vendors
Exclusive merchandise
Coordination of procurement efforts;
ability to get scarce merchandise
Knowledgable and helpful sales
people
Thanks!
Submitted By: GROUP 12

Anveshi Sharma – MBA/06/009

Cyriac Martin – MBA/06/016
Harshitha. D. P – MBA/06/020
Rahul. G – MBA/06/035
S. Anirudh Balaji- MBA/06/038