1. Strategic Planning in Retailing
Dr. Shilpa Sindhu

2. Retail Strategy
Retail Strategy is the overall plan or framework of action that guides a retailer.
A firm determines how to differentiate itself from competitors and develop and offering that appeals to a group of customers.

3. Elements of a Retail Strategy
Situation Analysis
- Organizational Mission
- Ownership and Management Alternatives
- Goods/Service Category.
Objectives
- Sales
- Profit
- Satisfaction of customers
- Image
Identification of Customers
- Mass Marketing
- Concentrated Marketing
- Differentiated Marketing

4. Contd… Overall Strategy - Controllable Variables
- Uncontrollable Variables
Specific Activities
- Daily and short term operations
- Responses to environment
Control
- Evaluation
- Adjustment

5. Situation Analysis
Situation analysis is a candid evaluation of the opportunities & threats facing a prospective or existing retailer.
Organizational Mission
An organizational mission is a retailer’s commitment to a type of business and to a distinctive role in the marketplace. It is reflected in the firm’s attitude toward consumers, employees, suppliers, competitors, government, and others.
1.- around products sold
- around consumer needs
2. – Leader or follower
3. – Market Scope

6. Situation Analysis (Contd..)
b. Ownership and Management Alternatives An essential aspect of situation analysis is assessing ownership and management alternatives, including whether to form a sole proprietorship, partnership, or corporation—and whether to start a new business, buy an existing business, or become a franchisee.

7. Contd… c. Goods/Service Category A line of Business
to specify both a general goods/service category and a niche within that category. Jaguar dealers are luxury auto retailers catering to upscale customers.
A potential retail business owner should select a type of business that will allow him or her to match personal abilities, financial resources, and time availability with the requirements

8. Objectives
Sales
Some Retailers may put more emphasis on sales growth, expanding their business, less emphasis on short run profits.
Profit
Retailer seeks minimum profit level
Satisfaction of Public
Image (Positioning)
An image represents how a given retailer is perceived by consumers and others. A firm may be seen as innovative or conservative, specialized or broad-based, discount-oriented or upscale.
Through Positioning, a retailer devises its strategy in a way that projects an image relative to its retail category and its competitors and that elicits a positive consumer response.

9. Identification of customers
Mass Marketing
Concentrated Marketing – particularly one market segment
Differentiated Marketing – aiming two or more distinct consumers groups with different retailing approaches for each group

10. Overall strategy a. Controllable variables
Store location- competitors, transportation access, nearness to suppliers, population density.
Managing a Business- Human resource management, operations management
Merchandise Management & pricing – width & depth of products, prices decided
Communicating with the customers – image creation, atmosphere of the store & surrounding area, layouts, displays.

11. Overall strategy contd…
b. Uncontrollable variables
Consumers
Competition
Technology
Economic conditions
Seasonality
Legal restrictions

12. Specific Activities Daily and short term operations
Responses to environment

13. Control
Evaluation
Adjustment