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:
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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.