Retail Marketing
strategy &
Merchandise
Management
Overview
Resources:
• https://studylib.net/doc/25876772/retailmanagement
• https://mmimert.edu.in/images/books/modern-dayretail-marketing-management.pdf
• https://s3.amazonaws.com/lumenlearning/success/
Master+PDFs/Waymaker/RetailManagement_2-619.pdf
SU1-The World of Retailing
Learning Outcomes
• Examine various retailing activities
• Realise the importance of retailing in world
economies
• Recognise the opportunities for you in
retailing
• Understand the strategic retail management
process
• Classify the various types of food retailers
• Differentiate between merchandise retailers and
service providers
LO1, Retailing activities
• involves all activities required to
market consumer goods and services to
ultimate consumers who are purchasing
for individual or family needs. dayto-day actions, tactics, or practices
that reps and sales management take
part in. Over time, these activities
lead to results, like winning a big
opportunity or exceeding a sales
quota.
• E.g. selling goods and services,
managing inventory, and developing
sales strategies
• Activity examples: Daily CRM sales
management, Strategic assignment of
sales territory, examine sales data,
Source: https://www.linkedin.com/pulse/10-high-impact-sales-activities-2021-spotio
schedule follow-up activities, focus
on best prospects, segment lead
management activities (cold vs warm
leads), use a sales tracker to id
bottlenecks, nurture customer
LO2, 3 Importance & Opportunities
1, Almost all product channel structures
conclude with a
retailer. This means that no matter where a
product starts its journey, it almost always
ends up at a retailer, retailers are the
connection to the consumers.
2, Retail offers an immense number of job
opportunities
LO4, Elements of a retail
strategy
LO5, The Retail Industry
LO6, The Retail industry and
categories
• Department stores carry many different types of merchandise
(hardware, clothing, appliances), E.g.
• Chain stores are large and buy large quantity merchandise at
discounted prices. Chain stores are easily accessible at
convenient locations, E.g.
• Supermarkets are large and provide self-service stores with
central check-out facilities, approach to the distribution of food
and household cleaning and maintenance products is to offer large
assortments these goods at each store at a minimal price.
• Discount retailers-price is the main sales appeal
• Warehouse retailers
• Franchises
• Malls and shopping centers
• Online retailing
• Catalogue retailing
• Non-store retailing
*Find examples of these in the South-African context
Students to complete questions in the lumenlearning retail
management textbook
LO 6-7
SU2- Retail Marketing Strategy
• Define retail strategy
• Illustrate how retailers build a sustainable
competitive advantage
• Classify the different strategic growth
opportunities retailers pursue
• Examine issues that arise as domestic retailers
become global retailers
• Model the steps retailers go through to develop
a strategic plan
LO1, 5 Retail Strategy
-a plan that helps a store decide
how to sell products and services
to customers
Steps:
1. Market analysis (current market
& customer behaviour)
2. Set Goals (short & long-term
objectives)
3. Create strategies (develop plan
for customer attraction, product
development and customer
retention / loyalty)
4. Implement strategies
https://courses.lumenlearning.com/wm-retailmanagement/chapter/retail5. Monitor Performance (analyse Source:
mix/
sales and feedback to improve
strategy)
LO2, Retail strategy &
sustainable competitive
advantage
*Key points about a retail
strategy for sustainable
competitive advantage:
• Uniqueness: distinct value
proposition that sets the
retailer apart from
competitors, appealing to
specific customer needs
• Durability: advantage should be
difficult to imitate by other
retailers.
• Customer Focus: Building
loyalty through exceptional
Source: https://fastercapital.com/topics/developing-a-sustainablecompetitive-advantage.html
LO3, Strategic growth
opportunities
• Customer acquisition and retention through loyalty
programs
• Market penetration by expanding product offerings
• Market development into new regions
• Product development to cater to evolving customer needs
• Competitive analysis to identify differentiation points
• Data-driven customer analysis to understand behavior
• Optimizing pricing strategies
• Leveraging online presence
• Enhancing customer experience
• Investing in operational efficiency to reduce costs and
improve profitability.
*Within a South-African context, How?
LO4, Issues that arise as
domestic retailers become
global retailers (refer to
online reviews of the company
below)
SU3-Managing the Merchandise
Planning Process
• Examine the merchandise management organisation
and performance measures
• Differentiate between the merchandise management
processes for staple and fashion merchandise
• Predict sales for merchandise categories
• Summarise the trade-offs for developing
merchandise assortments
• Illustrate how to determine the appropriate
inventory levels
• Analyse merchandise control systems
• Interpret how multistore retailers allocate
merchandise to stores
• Evaluate the performance of retailer’s merchandise
management decisions
INTRODUCTION-Merchandise
planning
• must
reflect target market desires, the retailer’s intended
marketplace positioning, etc.
Merchandising: consists of the activities involved in acquiring
particular goods and/or services and making them available at the
places, times, and prices and in the quantity that enable a
retailer to reach its goals. Merchandising decisions can
dramatically affect performance.
1, The biggest competitive advantages of an independent retailer is
its ability to focus on and adapt to consumer needs
2, Department stores have typically appealed to consumers with
broad product assortments
based on demographics in their trading areas and relied on apparel
as the traffic generator
for their stores. Today, however, department stores are facing
significant challenges due to
declines in spending on apparel as a proportion of discretionary
spending and consumers
migrating to E-commerce and off-price retailers.
LO1, Merchandise management
Management organisation
Performance measures
Source: https://www.elevatiq.com/post/top-kpis-for-inventory-manage
Defining the buying
organisation
Devising merchandising Plans
• Forecasts
Devising merchandising plans
Omni buyer vs Digital
merchant
Factors to consider
• Assortment
What types of brands are
these?
LO2, Merchandise management
For staple items- consistently maintaining optimal
inventory levels of essential, frequently purchased goods
by utilizing a continuous replenishment system, relying
heavily on accurate sales data to predict demand and
prevent stockouts while minimizing overstocking, as staple
items typically have predictable and steady sales patterns.
For fashion-involves planning, buying, and presenting
products to customers.
LO3, Predict sales for
merchandise categories
LO4-7, Self-study
Thank you!
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