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
Retail Market Strategy 5.1
Strategy vs Tactics
Strategy
Tactics
Planning, Direction
Implementation
Broad
Specific, detailed
Unstructured
Structured
Problem solving
Problem solving
Creative
Analytical
External focus
Internal focus
Irregular
Regular
Long-term
Short-term
Difficult to evaluate
Easy to evaluate
Success comes from having a good strategy
& executing it well
Retail Market Strategy 5.2
The Building Blocks of Retail Strategy
Controllable
What areVariables
the elements
of the retail mix?
 Store Location
 Store Format & Layout
 Merchandise Management
 Pricing
 Communications
Retail Market Strategy 5.3
Uncontrollable
What are the
Variables
environmental
variables?
 Consumers
 Competition
 Technology
 Economic Conditions
 Seasonality
 Legal Restrictions
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?
Retail Market Strategy 5.4
Developing an Overall Retail Strategy
Retail Marketing Mix:
Controllable Factors
Controllable
Variables
 Store Location
 Store Format & Layout
 Merchandise Management
 Pricing
 Communications
What’s the
3rdTarget
element
of retail
Market
Strategy?
Retail
Strategy
Competition & Environment:
Uncontrollable Factors
Uncontrollable
Variables
 Consumers
 Competition
 Technology
 Economic Conditions
 Seasonality
 Legal Restrictions
The main focus:
Bringing harmony between the controllable
variables and the uncontrollable ones.
Uncontrollable variables drive the controllable ones!
Retail Market Strategy 5.5
Which are Sustainable
Competitive Advantages?






Retail Market Strategy 5.6
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
Sources of Sustainable
Competitive Advantages
More Sustainable
Retail Market Strategy 5.7
Less Sustainable
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
Retail Market Strategy 5.8
Situation Analysis
Organizational Mission Statement
Define the
Mission
Ownership & Management
Product Category
SWOT Analysis
Retail Market Strategy 5.9
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
Retail Market Strategy 5.10
Situation Analysis
Organizational Mission Statement
Define the
Mission
Ownership & Management
Product Category
SWOT Analysis
Retail Market Strategy 5.11
Window of Opportunity
Strong
Weak
High
Window
of
Opportunity
Low
High
Retail Market Strategy 5.12
Low
SWOT Analysis
SWOT Analysis is a
systematic approach
to optimizing the fit
between external &
internal var’s
Strengths
Retail Mix … plus
Management capabilities
Financial Resources
Overhead Cost Structure
Merchandising Capabilities
Store Management Capabilities
Store Locations
Loyalty of Customers
Weaknesses
Retail Mix … plus
Management capabilities
Financial Resources
Overhead Cost Structure
Merchandising Capabilities
Store Management Capabilities
Store Locations
Loyalty of Customers
Opportunities
Consumer Trends
Competitiion
Economic Conditions
Seasonality
Legal Restrictions
Threats
Consumer Trends
Competition
Economic Conditions
Seasonality
Legal Restrictions
Retail Market Strategy 5.13
Identify the
Strategies
here
Process of Retail Strategy
Situation
Analysis
Sales & Profit
Corporate
Objectives
Identify
Consumers
Retail Market Strategy 5.14
Satisfaction of Publics
Image & Positioning
As a result of the
Situation Analysis
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%
Retail Market Strategy 5.15
Suggest Objectives for:
 Krispy Kreem
 Wal-Mart
 Burger King
Retail Market Strategy 5.16
Finalizing Retail Strategy
Situation
Analysis
Sales & Profit
Satisfaction of Publics
Corporate
Objectives
Image & Positioning
Identify
Consumers
Overall
Strategy
Retail Market Strategy 5.17
Image = how a retailer
wants to be perceived by
consumers
Positioning = the strategy
to project this image
Finalizing Retail Strategy
Situation
Analysis
Corporate
Objectives
Identify
Consumers
Overall
Strategy
Specific
Activities
(Tactics)
Retail Market Strategy 5.18
Retail Mix Variables
Uncontrollable Variables
Short-term operations
Response to the
environment
Monitoring Retail Strategy
Situation
Analysis
Corporate
Objectives
Identify
Consumers
Retail Mix Var’s
Overall
Strategy
Uncontrollable Var’s
Specific
Activities
(Tactics)
Control
(Monitoring)
Retail Market Strategy 5.19
Short-term operations
Response to environ.
Evaluation
Adjustment
E.g., Chevron’s Control Mechanisms
Retail Market Strategy 5.20
Developing an Overall Job Strategy
Your “Marketing Mix”:
Controllable Factors
Controllable
Variables
 Your education
Job history
Skills
Interests
Commitment
Ability to distinguish
yourself
What’s
Yourthe
rd
3 element
Target
of retail
Strategy?
Jobs
Job
Strategy
Competition & Environment:
Uncontrollable Factors
Uncontrollable
Variables
The economy
Job availability
The “competition”
Etc.
The main focus:
Bringing harmony between the controllable
variables and the uncontrollable ones.
Uncontrollable variables drive the controllable ones!
Retail Market Strategy 5.21
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”
Retail Market Strategy 5.22
What Firms Want
%
50
54
49
Specific Business
Concentration
40
33
30
20
10
31
21
17
16
Being a
Bus. Major
8
0
Critically
Retail Market Strategy 5.23
22
Relevant Work
24
Experience
21
16
21
12
10
9
16
GPA
How Important is this Characteristic?
Extremely
Very
Somewhat
14
10
1
Not
What Firms Want
Attribute
Retail Market Strategy 5.24
% Critically
Important
Integrity
Strong work ethic
96.7
86.9
Professional demeanor
Initiative
85.2
83.6
Emotional maturity
Self confidence
80.3
79.0
Leadership ability
Personable
78.7
62.9
Creativity
55.0
E.g., Interpreting a Mission
Action
Skill Derived
Knocking on doors
Self-motivation, self-discipline,
handling rejection, creativity
Teaching Contacts
Training, interpersonal skills, selfconfidence, goal setting
Missionary Training
Leadership, time management,
planning, communications
Learning a 2nd Language
Learning skills, adaptability to
new concepts, perseverance
Living in a Foreign Culture
Ability to work with a new culture,
tolerance
Dedication & hard work
Working Long Hours
Retail Market Strategy 5.25
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?
Retail Market Strategy 5.26
Selling Yourself
Preparation & Interview
Practice
Network Interviews
Cover Information
letter/ Interviews
Resume
SelfTesting Resume Evaluation
Placement Alumni InfoTrac,
Center Database Lexis/Nexis,
Library
Internet
SelfKnowledge
Employer
Knowledge
A Career Position
Retail Market Strategy 5.27
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
Retail Market Strategy 5.28