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Chapter  3 Strategic Planning in Retailing RETAIL  MANAGEMENT: A STRATEGIC APPROACH ,   10th Edition BERMAN   EVANS
Chapter Objectives <ul><li>To show the value of strategic planning for all types of retailers </li></ul><ul><li>To explain...
Chapter Objectives (cont.) <ul><li>To examine the individual controllable and uncontrollable elements of a retail strategy...
Retail Strategy <ul><li>The overall plan or framework of action that guides a retailer </li></ul><ul><ul><li>One year in d...
Figure 3-1: Elements of a  Retail Strategy
Benefits of Strategic  Retail Planning <ul><li>Provides thorough analysis of the requirements for doing business for diffe...
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 <ul><li>A   sole proprietorship   is an unincorporated retail firm owned by one pers...
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 Durable Goods Stores: Automotive group Furniture an...
Figure 3-5b: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Personal): Laundry and dry ...
Figure 3-5c: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Repair): Automobile repair ...
Image and Positioning An  image  represents  how a given retailer is  perceived by consumers and others
Positioning Approaches <ul><li>Mass merchandising  is a positioning approach whereby retailers offer a discount or value-o...
Figure 3-6: Niche Retailing by Hear Music
Figure 3-7: Selected Retail  Positioning Strategies
Target Market Selection <ul><li>Three techniques </li></ul><ul><ul><li>Mass marketing </li></ul></ul><ul><ul><li>Concentra...
Figure 3-8: Jean-Philippe Patisserie: A Shop of Distinction
Strategic Implications of Target Market Techniques <ul><li>Retailer’s location </li></ul><ul><li>Goods and service mix </l...
Figure 3-9: Developing an Overall Retail Strategy <ul><li>Controllable  </li></ul><ul><li>Variables: </li></ul><ul><li>Sto...
Table 3-4a: Legal Environment and Retailing  <ul><li>Store Location </li></ul><ul><ul><li>zoning laws </li></ul></ul><ul><...
Table 3-4b: Legal Environment and Retailing  <ul><li>Merchandise Management and Pricing </li></ul><ul><ul><li>trademarks <...
Table 3-4c: Legal Environment and Retailing  <ul><li>Communicating with the Customer </li></ul><ul><ul><li>truth-in-advert...
Table 3-6: Sample Strategic Plan <ul><ul><li>Sally’s is a small, independently-owned, high fashion ladies clothing shop lo...
Additional Concerns for  Global Retailing <ul><li>In addition to the strategic planning process: </li></ul><ul><ul><li>ass...
Factors Affecting the Success of a Global Retailing Strategy <ul><li>Timing </li></ul><ul><li>A balanced international pro...
Figure A3-1: Factors to Consider When Engaging in Global Retailing
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Berman Rm10 Ppt 03

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Fashion, apparel, textile, merchandising, garments

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Berman Rm10 Ppt 03

  1. 1. Chapter 3 Strategic Planning in Retailing RETAIL MANAGEMENT: A STRATEGIC APPROACH , 10th Edition BERMAN EVANS
  2. 2. Chapter Objectives <ul><li>To show the value of strategic planning for all types of retailers </li></ul><ul><li>To explain the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback </li></ul>
  3. 3. Chapter Objectives (cont.) <ul><li>To examine the individual controllable and uncontrollable elements of a retail strategy, and to present strategic planning as a series of integrated steps </li></ul><ul><li>To demonstrate how a strategic plan can be prepared </li></ul>
  4. 4. Retail Strategy <ul><li>The overall plan or framework of action that guides a retailer </li></ul><ul><ul><li>One year in duration </li></ul></ul><ul><ul><li>Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms </li></ul></ul>
  5. 5. Figure 3-1: Elements of a Retail Strategy
  6. 6. Benefits of Strategic Retail Planning <ul><li>Provides thorough analysis of the requirements for doing business for different types of retailers </li></ul><ul><li>Outlines retailer goals </li></ul><ul><li>Allows retailer to determine how to differentiate itself from competitors </li></ul><ul><li>Allows retailer to develop an offering that appeals to a group of customers </li></ul><ul><li>Offers an analysis of the legal, economic, and competitive environment </li></ul><ul><li>Provides for the coordination of the firm’s total efforts </li></ul><ul><li>Encourages anticipation and avoidance of crises </li></ul>
  7. 7. Organizational Mission Retailer’s commitment to a type of business and to a distinctive role in the marketplace
  8. 8. Figure 3-2: The Focused Organizational Mission of Frisch’s Restaurants
  9. 9. Ownership and Management Alternatives <ul><li>A sole proprietorship is an unincorporated retail firm owned by one person </li></ul><ul><li>A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest </li></ul><ul><li>A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers </li></ul>
  10. 10. Figure 3-3: Checklist to Consider When Starting a New Business
  11. 11. Figure 3-4: Checklist for Purchasing an Existing Retail Business
  12. 12. Figure 3-5a: Selected Kinds of Retail Goods and Service Establishments Durable Goods Stores: Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations
  13. 13. 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
  14. 14. Figure 3-5c: Selected Kinds of Retail Goods and Service Establishments Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs Service Establishments (Hotel): Hotels Motels Trailer parks Camps
  15. 15. Image and Positioning An image represents how a given retailer is perceived by consumers and others
  16. 16. Positioning Approaches <ul><li>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 </li></ul><ul><li>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 </li></ul>
  17. 17. Figure 3-6: Niche Retailing by Hear Music
  18. 18. Figure 3-7: Selected Retail Positioning Strategies
  19. 19. Target Market Selection <ul><li>Three techniques </li></ul><ul><ul><li>Mass marketing </li></ul></ul><ul><ul><li>Concentrated marketing </li></ul></ul><ul><ul><li>Differentiated marketing </li></ul></ul>
  20. 20. Figure 3-8: Jean-Philippe Patisserie: A Shop of Distinction
  21. 21. Strategic Implications of Target Market Techniques <ul><li>Retailer’s location </li></ul><ul><li>Goods and service mix </li></ul><ul><li>Promotion efforts </li></ul><ul><li>Price orientation </li></ul><ul><li>Strategy </li></ul>
  22. 22. Figure 3-9: Developing an Overall Retail Strategy <ul><li>Controllable </li></ul><ul><li>Variables: </li></ul><ul><li>Store location </li></ul><ul><li>Managing business </li></ul><ul><li>Merchandise </li></ul><ul><li>management </li></ul><ul><li>and pricing </li></ul><ul><li>Communicating </li></ul><ul><li>with customer </li></ul><ul><li>Uncontrollable </li></ul><ul><li>Variables: </li></ul><ul><li>Consumers </li></ul><ul><li>Competition </li></ul><ul><li>Technology </li></ul><ul><li>Economic </li></ul><ul><li>conditions </li></ul><ul><li>Seasonality </li></ul><ul><li>Legal restrictions </li></ul>Retail Strategy
  23. 23. Table 3-4a: Legal Environment and Retailing <ul><li>Store Location </li></ul><ul><ul><li>zoning laws </li></ul></ul><ul><ul><li>blue laws </li></ul></ul><ul><ul><li>environmental laws </li></ul></ul><ul><ul><li>direct selling laws </li></ul></ul><ul><ul><li>local ordinances </li></ul></ul><ul><ul><li>leases and mortgages </li></ul></ul><ul><li>Managing the Business </li></ul><ul><ul><li>licensing provisions </li></ul></ul><ul><ul><li>personnel laws </li></ul></ul><ul><ul><li>antitrust laws </li></ul></ul><ul><ul><li>franchise agreements </li></ul></ul><ul><ul><li>business taxes </li></ul></ul><ul><ul><li>recycling laws </li></ul></ul>
  24. 24. Table 3-4b: Legal Environment and Retailing <ul><li>Merchandise Management and Pricing </li></ul><ul><ul><li>trademarks </li></ul></ul><ul><ul><li>merchandise restrictions </li></ul></ul><ul><ul><li>product liability laws and lemon laws </li></ul></ul><ul><ul><li>sales taxes </li></ul></ul><ul><ul><li>unit-pricing laws </li></ul></ul><ul><ul><li>collusion laws </li></ul></ul><ul><ul><li>sale prices </li></ul></ul><ul><ul><li>price discrimination laws </li></ul></ul>
  25. 25. Table 3-4c: Legal Environment and Retailing <ul><li>Communicating with the Customer </li></ul><ul><ul><li>truth-in-advertising and selling laws </li></ul></ul><ul><ul><li>truth-in-credit laws </li></ul></ul><ul><ul><li>telemarketing laws </li></ul></ul><ul><ul><li>bait-and-switch laws </li></ul></ul><ul><ul><li>inventory laws </li></ul></ul><ul><ul><li>labeling laws </li></ul></ul><ul><ul><li>cooling-off laws </li></ul></ul>
  26. 26. Table 3-6: Sample Strategic Plan <ul><ul><li>Sally’s is a small, independently-owned, high fashion ladies clothing shop located in a suburban strip mall. It is a full-price, full-service store for fashion-forward shoppers. Sally’s carries sportswear from popular designers, has a personal shopper for busy executives, and has an on-premises tailor. The store is updating its strategic plan as a means of getting additional financing for an anticipated expansion. </li></ul></ul>
  27. 27. Additional Concerns for Global Retailing <ul><li>In addition to the strategic planning process: </li></ul><ul><ul><li>assess your international potential </li></ul></ul><ul><ul><li>get expert advice and counseling </li></ul></ul><ul><ul><li>select your countries </li></ul></ul><ul><ul><li>develop, implement, and review an international retailing strategy </li></ul></ul>
  28. 28. Factors Affecting the Success of a Global Retailing Strategy <ul><li>Timing </li></ul><ul><li>A balanced international program </li></ul><ul><li>A growing middle class </li></ul><ul><li>Matching concept to market </li></ul><ul><li>Solo or partnering </li></ul><ul><li>Store location and facilities </li></ul><ul><li>Product selection </li></ul>
  29. 29. Figure A3-1: Factors to Consider When Engaging in Global Retailing

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