1. Key Issues What is retail strategy statement
How does it differ from “mission” and “tactics”
Career-search “strategy”
The building blocks of retail strategy
Process of developing retail strategy
The characteristics of a “window of opportunity”
SWOT analysis

2. Success comes from having a good strategy & executing it well
Strategy vs Tactics
Strategy Tactics
Planning, Direction
Broad
Unstructured
Problem solving
Creative
External focus
Irregular
Long-term
Difficult to evaluate
Success comes from having a good strategy & executing it well
Implementation
Specific, detailed
Structured
Problem solving
Analytical
Internal focus
Regular
Short-term
Easy to evaluate

3. The Building Blocks of Retail Strategy
Controllable Variables
Store Location
Store Format & Layout
Merchandise Management
Pricing
Communications
Uncontrollable Variables
Consumers
Competition
Technology
Economic Conditions
Seasonality
Legal Restrictions
What are the environmental variables?
What are the elements of the retail mix?

4. E.g., McDonald’s Retail Strategy
What is McDonald’s …
Target market
Retail format
Bases for competitive advantage
What threats might it face in the future?

5. Developing an Overall Retail Strategy
Target
Market
What’s the
3rd element
of retail
Strategy?
Retail Marketing Mix:
Controllable Factors
Competition & Environment:
Uncontrollable Factors
Controllable Variables
Store Location
Store Format & Layout
Merchandise Management
Pricing
Communications
Uncontrollable Variables
Consumers
Competition
Technology
Economic Conditions
Seasonality
Legal Restrictions
Retail
Strategy
The main focus:
Bringing harmony between the controllable
variables and the uncontrollable ones.
Uncontrollable variables drive the controllable ones!

6. Which are Sustainable Competitive Advantages?
Dropping prices
Building a store at the best location
Selling hot merchandise
Increasing advertising
Attracting better sales associates by paying higher wages
Providing better customer service

7. Sources of Sustainable Competitive Advantages
More Sustainable
Less Sustainable

8. Process of Retail Strategy
Define the Mission
Situation Audit
Identify Strategic Opportunities
Evaluate Strategic Alternatives
Establish Objectives, Allocate Resources
Develop a Retail Mix
Evaluate Performance, Make Adjustments

9. Situation Analysis Define the Mission Organizational Mission Statement
Ownership & Management
Product Category
SWOT Analysis

10. Form for Mission Statement
A mission statement should include:
The product/service to be delivered
The store’s claim (USP)
Other important claims
Identification of the target segment
What the segment will get
What the segment must give up

11. Situation Analysis Define the Mission Organizational Mission Statement
Ownership & Management
Product Category
SWOT Analysis

12. Window of Opportunity Strong Weak High Window of Opportunity Low High

13. Identify the Strategies here SWOT Analysis Strengths Weaknesses
SWOT Analysis is a systematic approach to optimizing the fit between external & internal var’s
Retail Mix … plus
Management capabilities
Financial Resources
Overhead Cost Structure
Merchandising Capabilities
Store Management Capabilities
Store Locations
Loyalty of Customers
Retail Mix … plus
Management capabilities
Financial Resources
Overhead Cost Structure
Merchandising Capabilities
Store Management Capabilities
Store Locations
Loyalty of Customers
Opportunities
Identify the
Strategies
here
Consumer Trends
Competitiion
Economic Conditions
Seasonality
Legal Restrictions
Threats
Consumer Trends
Competition
Economic Conditions
Seasonality
Legal Restrictions

14. Process of Retail Strategy
Situation
Analysis
Sales & Profit
Corporate
Objectives
Satisfaction of Publics
Image & Positioning
Identify
Consumers
As a result of the Situation Analysis

15. Objectives Statement
Any objective must be clear, concise, and realistic. Objectives are often based on profit, market share, growth, etc.
E.g., “…to get a 15% market share and maintain a profit margin of 25% by the end of the fiscal year” for a particular store. Or, “to increase comp store sales by 15% by end of the year.”
Note that each objective must have a time frame.
15%

16. Suggest Objectives for:
Krispy Kreem
Wal-Mart
Burger King

17. Finalizing Retail Strategy
Situation
Analysis
Sales & Profit
Corporate
Objectives
Satisfaction of Publics
Image & Positioning
Image = how a retailer wants to be perceived by consumers Positioning = the strategy to project this image
Identify
Consumers
Overall
Strategy

18. Finalizing Retail Strategy
Situation
Analysis
Corporate
Objectives
Identify
Consumers
Overall
Strategy
Retail Mix Variables
Uncontrollable Variables
Short-term operations
Specific
Activities
(Tactics)
Response to the
environment

19. Monitoring Retail Strategy
Situation
Analysis
Corporate
Objectives
Identify
Consumers
Overall
Strategy
Retail Mix Var’s
Uncontrollable Var’s
Short-term operations
Specific
Activities
(Tactics)
Response to environ.
Evaluation
Control
(Monitoring)
Adjustment

20. E.g., Chevron’s Control Mechanisms

21. Developing an Overall Job Strategy
Your Target
Jobs
What’s the
3rd element
of retail
Strategy?
Your “Marketing Mix”:
Controllable Factors
Competition & Environment:
Uncontrollable Factors
Controllable Variables
Your education
Job history
Skills
Interests
Commitment
Ability to distinguish yourself
Uncontrollable Variables
The economy
Job availability
The “competition”
Etc.
Job
Strategy
The main focus:
Bringing harmony between the controllable
variables and the uncontrollable ones.
Uncontrollable variables drive the controllable ones!

22. Your Own “Product” Strategy
Determine your target market
Area of country
Type of company
Type of position
Assess & exploit your competitive advantage
Unique skills
Experience
Knowledge
Develop then present yourself as a desirable “product”

23. What Firms Want How Important is this Characteristic? Critically% 8 12 16 54
Specific Business Concentration 50 16 9 24 1 49
GPA 40 17 10 33 31
Relevant Work Experience 30 21 22 14
Being a Bus. Major 20 10
How Important is this Characteristic?
Critically
Extremely
Very
Somewhat
Not

24. % Critically Important
What Firms Want
% Critically Important
Attribute
Integrity 96.7
Strong work ethic 86.9
Professional demeanor 85.2
Initiative 83.6
Emotional maturity 80.3
Self confidence 79.0
Leadership ability 78.7
Personable 62.9
Creativity 55.0

25. E.g., Interpreting a Mission
Action
Skill Derived
Knocking on doors Teaching Contacts
Missionary Training
Learning a 2nd Language
Living in a Foreign Culture
Working Long Hours
Self-motivation, self-discipline, handling rejection, creativity
Training, interpersonal skills, self-confidence, goal setting
Leadership, time management, planning, communications
Learning skills, adaptability to new concepts, perseverance
Ability to work with a new culture, tolerance
Dedication & hard work

26. What Is the Interviewer Really Asking?
Tell me about yourself
Why are you interested in this position?
What are your geographical requirements?
What are your salary requirements?
Tell me a story!
Do you have any questions?

27. Selling Yourself Preparation & Interview
Network
Practice
Interviews
Cover
letter/
Resume
Information
Interviews
Testing
Resume
Self-
Evaluation
Placement
Center
Library
Alumni
Database
InfoTrac,
Lexis/Nexis,
Internet
Self- Knowledge
Employer Knowledge
A Career Position

28. Telling the Same Thing …
Should we tell the same story to every interviewer?
Should we customize our presentation?
… our resume?
… our cover letter?
Why? (Or why not?)
For the same reasons, retailers must focus their strategy on their target market