Target market
The target market is the market segment toward which retailer plans to focus its resources and retail mix. The retailer must know the audience by selected the target market.
Retail Format
The nature of the retailer's operation and its retail mix- the location, pricing ,upscale or downscale.
Sustainable competitive advantage
The retailer must have their competitive advantage to compete in the market which is an advantage towards the competition.
For example
Mcdonald's
The target market for mcdonalds are the youngster and the family with the moderate income, the retail offering for mcdonal's is the fast food retaurant .The competitive advantage for the mcdonald are their burger are much cheap compare to other company.
Criteria for selecting a target market
It will be attractiveness with large growing and little competition in the market.There will more profit so the retailer can consistent the competitive advantages of them.
Opportunities for retailer to develop sustainable competitive advantages
- Customer loyalty
- Location
- Human Resource Management
- Distribution and information systems
- Unique merchandise
- Vendors relations
- Customer services
There are 3 approaches for sustainable competitive advantage
Build strong relationship with customer
Build strong relationship with supplier
Efficient internal operations
Build strong relationship with customer
Its consists brand image. For example mcdonalds have tiers their customer emotional when the customer look at their brand they have thinking about the burger at their places. The unique positioning , how's the retailer position their retailer brand onto customer mind and the customer perceive or not the retailer purpose. For example Starbucks have apply their coffee shop as a high price shop with a high quality. The retailer also have good customer service to attract the customer much better. Customer relationship management also have to analyze the shopping behavior by compile the data and make a research and development.
Build strong relationship with suppliers
The retailer must make supplier as a partner to smooth the nice transaction among them.The retailer must share the info about the sales data for supplier know the pattern of the stock to fulfill the demand on the market .The retailer must pay on time.
Efficient internal operation
The internal operation is the management such as HR,Logistic Management information system that must follow the standard of the procedure.
After that the retailer must have the strategic process to ensure the business must be smooth all the time
Strategic Retail Planning Proces
1)Identify business mission
.
At first stage the retailer must have a broad description of a retailer's objectives & scope of activities to take.
2)Conduct situation analysis
The retailer must have market attractiveness analysis, competitor analysis and self analysis. The can use the SWOT analysis ,porter five models. The retailer must know the barriers of entry, barriers of subtitute, bargaining power of supplier and bargaining power of customer
3)Identify strategic opportunities
The retailer must know the strategic opportunities to increase sales in general .
4)Evaluate strategic alternatives
The retailer must establish the competitive advantage, evaluate based on the SWOT analysis to evaluate.
5)Establish specific objectives & allocate resources
The characteristic of objectives must be measurable in the time frame based on the business plan and the marketing plan. The level of investment.
6)Develop retail mix to implement strategy
The retailer must develop retail mix for each opportunity the investment that have been made.The advertising , the promotion and so on.
7)Evaluate the performance & make adjustment
The retailer must evaluate the result of the strategy & implementation program, If the objectives met, don't do the adjustment but if not met the objectives the retailer must do the adjustment to ensure the objective are on the right track.
No comments:
Post a Comment