|




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‡ What do we mean by retail market strategy?

‡ Why should retail companies adopt planning?

‡ Problems likely to occur due to lack of Planning

‡ Purpose of a Market Plan

‡ Structure of Market Plan

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‡ Retail strategy identifies:
± Target Market
± Format of stores
± Unique Differentiator for sustaining competitive advantage
‡ Target Market is a group of consumers with similar needs and
buying behavior. These could be serviced by a retail outlets of
similar formats
± Map your customers needs and create a niche based on
demand
± Have a Target Group which you think will respond to your
USP
± Every communication every time should talk about the same
positioning
 |






± Avoid multiple channels of communication. Choose the ones
with which your customers engage the most. It will also help in
measuring the success of your marketing mix.

± Monitor constantly through interaction with customers the

success of your sales pitch. You could go terribly wrong thinking
all the while that you have been able to grab more heart and
mind share than your competition.

± You may not be able to measure success instantly but you can
keep looking for signals which will tell you if you are headed in
the right direction.
 |






Vuilding a sustainable Competitive Advantage




Collective strength of these  
Forces determine the ultimate 



profit potential of any industry





 






 






 











 |






  
 
‡ Rivalry amongst existing competitors
‡ Degree of concentration in the industry
‡ Number and relative size of competitors
‡ Fight for market share if growth is slow
‡ Extent and nature of product differentiation
‡ Are costs high
‡ Are products of perishable nature
‡ Characteristics of demand
‡ Capacity in relation to demand
‡ Are exit barriers very high to prevent players from
exiting despite low or negative returns?
 |






  
 
‡ Vargaining Power of Vuyers
‡ Degree of concentration relating to the relative
importance of demand from the customer in
comparison with those of the competing suppliers
‡ Relative significance of the product to the customers
in terms of quality, cost and service
‡ Switching costs
‡ Amount of info with the buyers
‡ Ability of buyers to backward integrate
‡ Profit levels of the buyers
‡ The extent to which differentiation is sought by the
buyers
 |






  
 
‡ Vargaining Power of suppliers
‡ Structure of the supplier side relative to the producer
‡ Degree of product differentiation and substitutability
‡ Potential for forward integration
‡ Relative importance of the industry demand to
suppliers
‡ Feasibility and cost of producers switching suppliers
 |






  
 
‡ Vargaining Power of suppliers
‡ Structure of the supplier side relative to the producer
‡ Degree of product differentiation and substitutability
‡ Potential for forward integration
‡ Relative importance of the industry demand to
suppliers
‡ Feasibility and cost of producers switching suppliers
 |






  
 
‡ Threat of new entrants
‡ Extent of economies of scale
‡ Capital infusion to
‡ Capture Customer Loyalty
‡ Create Vrand identity
‡ Towards inventories
‡ Start up costs
‡ The learning curve benefits which lower costs
experienced by existing companies
‡ Switching costs
‡ Government and legal limitations and barriers
 |






  
 
‡ Threat of substitutes
‡ Availability of substitutes
‡ Willing of buyers to purchase substitute products
‡ Impact on profit of close substitutes
‡ Impact of comparative price and quality of substitutes
 |









 
  
  

 


‡ Customer Loyalty
‡ A strong brand for the store or for the store brands
‡ Clear and Precise positioning Strategies
‡ Offer Loyalty programs and create an emotional Vond
‡ Location
‡ HRM
‡ Distribution and Information systems
‡ Unique Merchandise
‡ Vendor relations
‡ Customer service
 |






  
 
 

  

 


‡ Different operational areas based on the strength and
strategy of the retailer are exploited to work in unison to
gain a competitive advantage

Coffee Day and Tanishq in the Indian

scenario
 |






!  "
‡ Pace of change in the retail industry is
highly unrestrained
‡ Need to create successful changes in the
market place
‡ Remain competitive
‡ Approach problem solving in a systematic
way
 |






! 

"
‡ For merchandise
‡ Inventory and logistics control
‡ Information systems
‡ Pricing and promotional campaigns
‡ Store location and layout
‡ Expansion plans
In short on every functional activity to stay
competitive ± Market planning is a key Function.
 |







 

  
 |
 

‡ Failure to take advantage of potential growth
markets and new marketing opportunities
‡ Erosion of market and mind share
‡ Customer¶s expectations not being met
‡ Demand and supply issues
‡ Level of awareness
‡ Low brand image
Will result in lack of support and motivation
among the suppliers and employees
 |







 

 
‡ To provide a clear direction to the overall
retailing operation
‡ To coordinate the resources of the company
‡ To benchmark targets for effective evaluation
‡ To minimise risk through analysis of the external
and internal environment
‡ To assess progress relating to target segments
‡ To focus on long term retail plan
 |






#  "
‡ Weak support from the senior management
‡ Lack of coherence between plans
‡ No clear timelines
‡ Undefined responsibility Matrix
‡ Plans are highly rigid and lack course correction
in case of crisis
‡ More of an annual ritual
‡ Data integrity issues
 |












 
‡ The corporate mission and goals
‡ External and internal Audit
‡ Vusiness situation analysis
‡ Creating Objectives
‡ Providing an effective marketing mix
‡ Monitor the Plan
 

 
‡ Marketing is more than just selling and advertising. It's about what
you need to do to capture and retain your customers over time.

Your marketing plan needs to answer the question:

Why am I in business ?
What do customers want ?
and Why will customers buy from me and not my competitors?

Developing your marketing plan covers four main aspects:

‡ Market research.
‡ Marketing goals.
‡ Marketing strategies.
‡ Monitor and control.
 

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5
‡ A clear mission statement enables a retailer to focus
on his core business objectives and what is to be
accomplished
‡ It is a confirmation of the business the retailer is in
from a consumers viewpoint
‡ Acts as a guide to employees to know the purpose of
the business and provides a direction
‡ It represents the overriding goal and the means to
achieve it

O




 

 





 
 
 
 



 
 




 |






.+





This is normally done using the following
analysis
± Political : Taxes and duties, statutory regulations,
rules, government policies

± Economical: Market environment, infrastructure

± Social: Geodemographic,Cultural lifestyle

± Technological: Innovations, current trends and

advancements to assist business
 |






 

 
(O 

Using the information you have collected you can

undertake a SWOT analysis to help you determine your
marketing goals. Your SWOT involves assessing:

‡ 
    

‡  
 
 
‡ 








‡ O 




You need to develop strategies to deal with each

identified issue.
 |






Management of life cycle position based on market strength/weakness
Stages/competitive Virth Growth Maturity Decline
position

Dominant Fast business Defend position Aggressively Continue to

growth expected and build in defend position defend position
due to strategy of cost and renew efforts
competitive leadership an of leadership Find way to
strength and technological strategies and relaunch retail
focus superiority taking share concept
Favorable Need to develop Need to improve Ensure focus and Plan turnaround
strengths of total business to marketing is
differentiation, ensure growth maximizing Retrench
cost control, and within the industry returns by
focus. sector attacking leaders¶ Divest
weaknesses

Control costs
Weak Improve to Require a major Start to harvest Harvest
ensure growth will turnaround or returns or plan
occur new focus of the improvements Withdraw
business
Find niche Take quiet route
 |









 6 
 

Define a clear roadmap for the organisation in

terms of
± Sales and revenue targets
± Product or service differentiation
± Technology Adoption
± Customer service

Objectives need to be a balance between

aspirational and realistic
 |






5

6 
 
A retailer may pursue one of the four types of strategies

Market Penetration

Market Development

Product Development

Diversification
 |









 5



An objective to increase sales by incorporating

one or more levels of the supply chain into the
business would be based on integrated growth
The three areas of integrated growth are
± Forward Integration
± Vackward Integration and
± Horizontal Integration
Retailers have the greatest competitive
advantage when they engage in opportunities
with synergy in their existing business.
 Retail Market Strategy

Last but not the least



$$

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