| Question |
Answer |
| ELEMENTS IN RETAIL MARKETING |
Target Market & Retail Offering/Format |
| TARGET MARKET |
The market segments toward which the retailer plans to focus its resources retail mix. |
| RETAIL OFFERING/FORMAT
|
Developing sustainable competitive advantage (advantage over the competition). |
| CRITERIA FOR SELECTING ATTRACTION
|
Attractiveness: large, growing, little competition
"consistent with your competitive advantage" |
| OPPORTUNITIES FOR RETAILERS TO DEVELOP SUSTAINABLE COMPETITIVE ADVANTAGE |
1.Customer loyalty
2.Location
3.HR Management
4.Distribution & IS
5.Unique merchandise
6.Vendor Relations
7.Customer Service |
| CUSTOMER LOYALTY |
Retailers build loyalty by:
-developing strong brand
-developing clear and precise positioning strategies
-creating loyalty programs
|
| HOW TO BUILD RETAIL BRANDING? |
Retailers build an emotional tie with customers and have a concise predictable level of quality. |
| HOW TO BUILD LOYALTY PROGRAMS? |
-Part of an CRM [Customer Relationship Management]
-Save purchase behaviors of members of loyalty programs
-Develop personalization marketing effort to customers |
| LOCATION |
Location is a competitive advantage
(the 3 most important things in retailing) |
| HUMAN RESOURCES |
"Employees are key to build sustainable competitive advantage"; develop a positive organization culture; strategies for recruiting and retaining; employee branding. |
| DISTRIBUTION AND INFORMATION SYSTEMS |
vendor>distribution center>store; by decreasing cost in these three you can decrease price, increase breath and depth, and give better services |
| UNIQUE MERCHANDISE [PRIVATE LABELS] |
EX: SEAR'S= KENMORE APPLIANCES; Kmart= Martha Stewart |
| VENDOR RELATIONSHIP |
Low-cost efficiency: EDI [electronic data interchange]; Collaborative Planning and Forecasting to reduce inventory and distribution cost. "special treatment"=early delivery and shipment of scarce merchandise |
| CUSTOMER SERVICE |
Difficult to achieve since people are very inconsistent, goes beyond just hiring and training; its about your organizational culture. |
| GROWTH STRATEGIES |
A)Market Penetration B)Market Expansion C)Retail Format Development D)Diversification |
| MARKET PENETRATION |
Existing retail format for existing customers, to make existing customer to visit store more often; Cross-selling ex)when sales-person from one department sells from another! |
| MARKET EXPANSION |
Existing retail format for new customers ex)Dunking Donuts at their stores and gas stations |
| RETAIL FORMAT DEVELOPMENT |
New retail format with a different retail mix, for the same target market ex) Tesco Expres, Tesco Extra, Tesco Metro etc... |
| DIVERSIFICATION |
New retail format for new target market: 1)Related diversification 2)Unrelated Diversification |
| IMPORTANT STAGE IN STRATEGIC PROCESS? |
2ND STAGE: Conduct a situation analysis,a market attractiveness analysis,competitor analysis, and a self-analysis. |
| TWO IMPORTANT ELEMENTS IN SITUATION ANALYSIS? |
Market factors & Competitive factors
|
| MARKET FACTORS |
Size ( large markets attract large firms), growth (more attractive then mature or declining stage), seasonality (resources are needed more during peak time), business cycle (economy) |
| COMPETITIVE FACTORS |
Barriers to entry, bargaining power of vendors(less attractive if few vendors control the merchandise sold within), competitive rivalry (frequency and intensity of reactions undertaken by competitors) |
Poultry
