Retail Positioning Advanced Fashion: Standard 3 Created by: Kris Caldwell Timpanogos High School Retail Positioning • Retail Positioning: Where a store situates itself in the consumer market. Done by: – – – – – Product Price Place Promotion Examples: Some stores are positioned with the lowest possible prices and least amount of service. Others are positioned for the best values for fashion forward career apparel. Target Marketing • Target Marketing: Defining the specialized niche of the market to whom the company wishes to make the greatest appeal. – Retailers do this by: • Merchandise Policies: guidelines the company follows to keep inventory choices on track. • Operational Policies: designed to make customers feel good about shopping at the store. Policies • Merchandising Policies: Specific guidelines established by management for the company to follow to keep inventory choices on track. • Operational Policies: Specific guidelines, established by management, to make the store appealing for the target market through physical appearance and customer services. Buying Motives • Buying Motives: Reasons why people buy what they buy (what motivates them) – Product Motives: based on qualities or images of certain products – Patronage Motives: buy from certain stores Competition • Direct Competition: between 2 or more retailers using the same type of business format. (ex: GAP, Express) • Indirect Competition: between 2 or more retailers using different types of business formats to sell the same type of merchandise. (ex: Dept store/grocery store both sell pantyhose) • Vertical Competition: between businesses at different levels of the supply chain. (ex: company that sells to stores and also has a factory outlet store) Competition • Lifestyle Competition: Rivalry between businesses for consumers’ pastimes and spending money. • Ambiance: Atmosphere, how a store pleases customers’ senses. Product Strategy • Assortment: range of stock or total selection a retailer carries. – Assortment Breadth (width): refers to the number of different item categories or classifications offered by a store. – Assortment Depth: indicates the quantity of each item available in the assortment of goods offered. Price Strategy • Prestige Pricing: Setting high prices on items to attract customers who want quality and status. – Usually in even numbers (ex: $48, not $47.99) • Price Promoting: Advertising special price reductions to bring in shoppers. Can build traffic to buy other items as well. Place Strategy • Site Location: Prime location is important to attracting the right customers. • Types of store clusters: – Central Business Districts: In cities or towns, stores and offices – Neighborhood Shopping Centers: 5-15 stores – Community Shopping Centers: 25-50 stores, with 1 primary store – Regional Shopping Centers: Malls. Draw customers from at least a 10 mile radius. – Super-Regional Centers: Largest malls. 6-8 Anchor stores, 150 specialty stores, eateries. Place Strategy • Market Coverage: The amount of concentration a retailer has in a customer area, such as intensive, selective, or exclusive. • Facilities Design: Store design to create a strong visual identity with the right ambiance for the target market. • Store Exterior: Often creates a customer’s first impression. • Store Interior: Includes selling areas and sales support areas. Should be functional and welcoming for customers.