Store based strategy mix

Retailer strategy mix 

The strategy mix is the firm of particular combination of store location, The store location based on the retailer chosen location. Its also consist operating procedures, for example the operating procedures such as operating hours just like 10.a.m. to 10 p.m. The strategy good of services offered are the variety of the that the retailer have offered to the customer. The pricing tactics consist skimming pricing strategy and penetration pricing strategy.The retailer also have a good customer service to attract more customer. The promotional methods such as clearance sales or price off discount.

The wheel of Retailing



The wheel of retailing is the strategy that retailer uses for their shops. In common the low-end strategy uses low prices to compete to other retailer. They have put their comparative advantage in low price in customer mind. For example Daiso shop have their low price as RM5 for every single product in therir strategy.The facilities in daiso are low and the customer service are also low because they have sell their product in cheap .



For the medium strategy, the retailer use the moderate prices to offered to the customer. They also have improved facilities and broader base of value and service conscious customer . For example Tesco is the retailer that use moderate prices offer and they have much better facilities.

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The high end strategy is the high prices offered to the customer . They have excellent facilities and services .The target market for these retailer are upscale people which very rich people. Usually they sold the branded item . For example Gucci store.



The lesson of the wheel of retailing are do not lose sight of your prime customers price consciousness and beware of the danger in upgrading target markets. The retailer also do not create opening for new cost-conscious retailer to emerge . They have also to employ customer benefit costing to weigh the cost and benefits of specific services upgrades. They also use unbundled pricing to separately charge for select services such as delivery , installation and etc.

Method of cost containment 

The standardizing procedures, store layouts, store size and the product offering . The using of the secondary use locations placing stores in smaller communities. The using plainer fixtures and displays .Next the joining cooperatives buying and advertising programs and the self service operation. The method also can reduced product proliferation .
For example the owner of Ikea uses the paper that have been used to reduced stationery cost . Ikea also make their concept as sell in the warehouses.



Scrambled merchandising .

Scrambled merchandising involves offering several unrelated product in one store.




Why scrambled merchandising because it is desire for one stop shopping format. Concern to adopt hot product to increase store traffic. The scrambled merchandising looking to increase store sales per square foot and same store sales especially in a recessionary period. Next it will desire for cross selling opportunities and looking for high gross profit businesses. For example Mesra Shop at Petronas station have use the scrambled merchandising to enhanced the one stop shopping format.


Retail Life Cycle

Retail institutions pass through identifiable life stages that is introduction, growth , maturity and decline.



The retail institutions are evolving

-Mergers , diversification and downsizing
-Cost-containment and value-driven retailing

The merger are the combination of separately owned firms . For example Sony and Ericson.

The diversification . The retailer become active in businesess outside their normal operations.

Downsizing . The unprofitable stores are closed or divisions are sold of.