STRATEGIC RETAIL MANAGEMENT

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Presentation Transcript

STRATEGIC RETAIL MANAGEMENT : 

STRATEGIC RETAIL MANAGEMENT

STRATEGIC RETAIL MANAGEMENT : 

STRATEGIC RETAIL MANAGEMENT What is retail management and retail strategy Steps in strategic planning Creating the desired market position

Strategic Retail Management : 

Strategic Retail Management Is both an art and science Requires both creative and analytical skills Involves an overall framework of action Is intended to help: The retail manager step back and take a fresh look at the business Create the desired position or image in the marketplace

STRATEGIC RETAIL MANAGEMENT PROCESS INVOLVES : 

STRATEGIC RETAIL MANAGEMENT PROCESS INVOLVES Planning the organization Implementing strategic and tactical decisions at all organizational levels Controlling all the firm’s activities. Retailing is such a nitty-gritty business it is often difficult to“see the forest for the trees”

Slide 5: 

Retail Strategy: is an overall plan to gain a competitive advantage through the use of a distinctive retail mix to capture the patronage of one or more target markets

STEPS IN STRATEGIC PLANNING : 

STEPS IN STRATEGIC PLANNING 1.Develop Mission Statement 2.Establish Objectives 3.Conduct A Situation Analysis 4.Select Markets In Which To Compete 5.Obtain Resources Needed To Compete 6.Develop A Positioning Strategy 7.Implement Strategy 8.Evaluate Results

THE MISSION STATEMENT : 

THE MISSION STATEMENT Defines the retail concept Is a generalized, yet meaningful expression of the firms future direction Often reflects the organization’s values or corporate culture It should: Identify both the business and the customer domains Identify the organization’s responsibilities to stakeholders Provide a general blueprint for accomplishing the mission

MISSION STATEMENT SOBEYS INC. : 

MISSION STATEMENT SOBEYS INC. “We are and will continue to be a leading progressive food retailer providing excellent service, quality and value to our customers through dedicated people while aggressively developing new markets.”

ORGANIZATIONAL OBJECTIVES : 

ORGANIZATIONAL OBJECTIVES Market Objectives are aimed at securing customer patronage and achieving competitive positions within the general marketplace Financial Objectives are directed at ensuring that the retail organization operates profitably and productively Social Objectives are concerned with identifying the firm’s relationships with and reactions to social, cultural, and ethical environments that are both internal and external to the firm’s operations

MARKET OBJECTIVES : 

MARKET OBJECTIVES Customer Patronage Sales Objectives Customer Traffic Customer Loyalty

MARKET OBJECTIVES : 

MARKET OBJECTIVES Competitive Position Market Share Retail Image Vendor Relations

FINANCIAL OBJECTIVES : 

FINANCIAL OBJECTIVES Profitability Targeted Returns Earning Per Share Stockholder Dividends

FINANCIAL OBJECTIVES : 

FINANCIAL OBJECTIVES Productivity Labor Space Merchandise

SOCIETAL OBJECTIVES : 

SOCIETAL OBJECTIVES Social Responsibility Corporate Values

CONDUCT A SITUATION ANALYSIS : 

CONDUCT A SITUATION ANALYSIS Complete a Retail Audit Determine retail strengths and weakness Evaluate market opportunities and threats Conduct a Competitive Analysis

DEVELOP A POSITIONING STRATEGY : 

DEVELOP A POSITIONING STRATEGY Positioning: Refers to the position the company occupies in the market relative to the competition Explains how the company will differentiate itself from other organizations competing for the same customers Gives the retailer’s reason for being Involves selling the store; not the merchandise Gives the customer a reason to shop at your store rather than the competitor’s store

HOW DO YOU CREATE THE DESIRED POSITION IN THE MARKET : 

HOW DO YOU CREATE THE DESIRED POSITION IN THE MARKET Create an environment conducive to exchange Match your retail mix to consumer expectations Perceptual mapping can be useful to identify market gaps

What does the retailer provide in the exchange? : 

What does the retailer provide in the exchange? products / services transfer of ownership temporary use of store facilities point of purchase information image / prestige credit delivery other

What does the customer provide in the exchange? : 

What does the customer provide in the exchange? money time and effort word of mouth advertising hope of repeat patronage Retailer must meet or exceed customer expectations! Retailer must put together the retail program that the customer wants, that is different from the competition!!

RETAIL IMPLEMENTATION INVOLVES…. : 

RETAIL IMPLEMENTATION INVOLVES…. People Money Time

RETAIL CONTROL : 

RETAIL CONTROL Check to see that objectives are achieved Evaluate strategies and tactics to see if they are still relevant and effective Set new performance targets and plans as required