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Retail Module1

The document outlines the 7 steps in a strategic retail planning process: 1. Define the business mission by answering questions about the business, customers, capabilities, and goals. 2. Conduct a situation audit analyzing market, competitive, and environmental factors as well as strengths and weaknesses. 3. Identify strategic opportunities like market penetration, expansion, format development, and diversification. 4. Evaluate identified strategic opportunities to focus on utilizing strengths and competitive advantages. 5. Establish specific, measurable objectives with timeframes and investment levels needed to achieve goals. 6. Develop a retail mix to implement the strategy and control/evaluate performance. 7. Evaluate strategy results and performance, making adjustments as needed.

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47 views13 pages

Retail Module1

The document outlines the 7 steps in a strategic retail planning process: 1. Define the business mission by answering questions about the business, customers, capabilities, and goals. 2. Conduct a situation audit analyzing market, competitive, and environmental factors as well as strengths and weaknesses. 3. Identify strategic opportunities like market penetration, expansion, format development, and diversification. 4. Evaluate identified strategic opportunities to focus on utilizing strengths and competitive advantages. 5. Establish specific, measurable objectives with timeframes and investment levels needed to achieve goals. 6. Develop a retail mix to implement the strategy and control/evaluate performance. 7. Evaluate strategy results and performance, making adjustments as needed.

Uploaded by

Kumar Gaurav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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RETAIL

MARKET
STRATEGY
Module 1
Strategic retail planning process
Strategic retail planning process entails the set of steps
a retailer goes through to develop a strategic retail
plan.

It descries how retailers select target market segments,


determine the appropriate retail format, and build
sustainable competitive advantages.
Strategic retail planning process
i. Define the business mission
ii. Conduct a situation audit: market attractiveness
analysis, competitor analysis, self analysis
iii. Identify strategic opportunities
iv. Evaluate strategic alternatives
v. Establish specific objective and allocate resources
vi. Develop a retail mix to implement strategy
vii. Evaluate performance and make adjustments
Step 1: define the business mission
The mission statement is a broad description of a
retailer’s objectives and the scope of activities it plans to
undertake.
In developing mission statement, managers need to
answer 5 questions:
i. What business are we in?
ii. What should be our business in future?
iii. Who are our customers?
iv. What are our capabilities?
v. What do we want to accomplish?
Examples
Wal-Mart's mission is to help people save money so that
they can live better.
McDonald's: (QSCV) Quality, Service, Convenience, and
Value.
Shoppers’ Stop’s mission : "Nothing but the best".
Eaton's: Satisfaction guaranteed or your money refunded.
To become a world class automotive engineering and
product development centre, and enable Tata Motors to
become a world class automotive company.
Step 2: conduct a situation audit
-an analysis of the opportunities and threats in the
retail environment and the strengths and weakness of
the retail business relative to its competitors.
The elements in the situation analysis are
i. Market factors
ii. Competitive factors
iii. Environmental factors
iv. Analysis of strengths and weakness
Step 3: Identify strategic opportunities
-identify opportunities for increasing retail sales

Market penetration, market expansion, format


development, diversification
Step 4: Evaluate strategic opportunities
-evaluate opportunities that have been identified in
the situation audit.
Retailer must focus on opportunities that utilize its
strengths and its competitive advantage.
Step 5: Establish specific objectives and
allocate resources
-specific objectives are goals against which progress
toward the overall objective can be measured.
These specific objectives have 3 components:
i. The performance sought, including a numerical
index against which progress may be measured
ii. A time frame within which the goal is to be achieved
iii. The level of investment needed to achieve the
objective.
Step 6: Develop a retail mix to implement
strategy

-develop a retail mix for each opportunity in which an


investment will be made and control and evaluate
performance.
Step 7: Evaluate performance and make
adjustments

The final step in the planning process is to evaluate


the results of the strategy and implementation
program.
“The real
secret to
success is
enthusiasm."
- Walter Chrysler
Exercise
GO SHOPPING Visit two stores that sell similar
merchandise categories and cater to the same target
segment(s). How are their retail formats (the elements
in their retail mixes) similar? Dissimilar? On what
bases do they have a sustainable competitive
advantage? Explain which you believe has a stronger
position.

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