strategic planning in retailing

Topics: Retailing, Strategy, Shopping mall Pages: 5 (695 words) Published: April 5, 2014
Strategic Planning in Retailing RETAIL MANAGEMENT: A STRATEGIC APPROACH, 10th Edition
Chapter Objectives
To show the value of strategic planning for all types of retailers To explain the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback To examine the individual controllable and uncontrollable elements of a retail strategy, and to present strategic planning as a series of integrated steps To demonstrate how a strategic plan can be prepared

Retail Strategy
The overall plan or framework of action that guides a retailer One year in duration
Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms Figure 3-1: Elements of a
Retail Strategy

Benefits of Strategic
Retail Planning
Provides thorough analysis of the requirements for doing business for different types of retailers Outlines retailer goals
Allows retailer to determine how to differentiate itself from competitors Allows retailer to develop an offering that appeals to a group of customers Offers an analysis of the legal, economic, and competitive environment Provides for the coordination of the firm’s total efforts

Encourages anticipation and avoidance of crises
Organizational Mission
Retailer’s commitment
to a type of business
and to a
distinctive role in the marketplace
Figure 3-2: The Focused Organizational Mission of Frisch’s Restaurants

Ownership and Management Alternatives
A sole proprietorship is an unincorporated retail firm owned by one person A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers

Figure 3-3: Checklist to Consider When Starting a New Business

Figure 3-4: Checklist for Purchasing an Existing Retail Business

Figure 3-5a: Selected Kinds of Retail Goods and Service Establishments

Figure 3-5b: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Personal):
Laundry and dry cleaning
Beauty/barber shops
Funeral services
Health-care services
Service Establishments (Amusement):
Movie theaters
Bowling alleys
Dance halls
Golf courses
Image and Positioning
An image represents how a given retailer is perceived by consumers and others Positioning Approaches
Mass merchandising is a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities Niche retailing occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market Figure 3-6: Niche Retailing by Hear Music

Figure 3-7: Selected Retail
Positioning Strategies

Target Market Selection
Three techniques
Mass marketing
Concentrated marketing
Differentiated marketing
Figure 3-9: Developing an Overall Retail Strategy
Uncontrollable Variables:
Consumers
Competition
Technology
Economic conditions
Seasonality
Legal restrictions
Controllable Variables:
Store location
Managing business
Merchandise management and pricing
Communicating with customer
Table 3-4a: Legal Environment and Retailing
Store Location
zoning laws
blue laws
environmental laws
direct selling laws
local ordinances
leases and mortgages
Managing the Business
licensing provisions
personnel laws
antitrust laws
franchise agreements
business taxes
recycling laws
Table 3-4b: Legal Environment and Retailing
Merchandise Management and Pricing
trademarks
merchandise restrictions
product liability laws and lemon laws
sales taxes
unit-pricing laws
collusion laws
sale prices
price discrimination laws
Table 3-4c: Legal Environment and Retailing
Communicating with the Customer
truth-in-advertising and selling laws...
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