CHP……. O3
RETAIL MARKET STRATEGY.
What is retail strategy.
A retailer strategy is a statement identifying(1)
the retailer target market (2) the format the
retailer plan to use to satisfy the target
market.(3) the basis upon which the retailer
plan to build to a sustainable competitive
advantages.
• Strategy toward the target market. Is the
market segment toward which the retailer
plan to focus it resources.
•Retailer format
• Retailer format strategy suggest the type of
retailer mix(nature of merchandising and
services offering)
• Sustainable competitive adventages,is an
advantages over the competition that is not
easily copied and thus can be maintain over a
long period of time.
Building a sustainable competitive
advantages
Any legal business activities that a retailer
engage for the basis for a competitive
advantages. There are some important
opportunity for a retailer to develop a
sustainable competitive these are,
• Customer loyalty. Customer loyalty means that
customer are committed to buying
merchandising and services from a particular
retailer .
(b) Brand quality
Competitive advantages can also be taken to
offer quality product ,most retailer which they
develop private brand with his own name they
focus to provide augmented brand.
(c) Loyalty programs. loyalty program are the
part of an overall customer relationship
management
© location
Location is critical for the retailer competitive
advantages point of view. many retailer select
location according to the availability of customer
as well as according to their need .
(d) Distribution and information system
competitive advantages a retailer can be taken if
they provide product to different location and
also taken information from different vendor as
well as different location employees.
(d) Unique merchandising.
• Competitive advantages can also be taken by
offering unique quality product. which
distinguish to other competitor. such as using
niche marketing concept. unique merchandising
provide more benefits to retailer. Because
these niche marketing customer can pay high
prices to fulfill our need.
What is growth strategies.
Retailer used growth strategy for the purpose of
expansion of business .these strategy are,
(1) Market penetration strategies. Market
penetration strategies involves realizing
growth by directing efforts to opening more
store in the target market and keeping existing
stores open for a longer hours.
(2) Retail format development
• A retail format development growth strategies as
a strategies which a retailer develop a new retail
format offering different retailer mix.
(3) Diversification. Diversification strategy is one in
which a retailer introduce a new retail format
directed toward a market segment. It means
change the location of the business.
Diversification strategy either related
diversification as well as unrelated diversification.
What is key factor to success retailer
business.
There are three important point which retailer can
success our business. These are(1) Global
competitive advantage (2) Adaptability.(3)
financial resources. One by one we can explain it.
(1) Global competitive advantage…Entry in to
nondomestic market is most successful when the
expansion opportunity is consistent apply it. an
non domestic market retailer can take advantages
when they charge low price and perform efficient
business operation.
(2) Adaptability.
While successful global retailer build on their
core competencies, they need to recognize
culture difference and adapt their core
strategy to the need of the local market. For
example in china white is the color of
mourning and brides wear red dresses. Food
his also the greatest diversity of tastes around
the world.
(3) Financial resources.
The third key factor which retailer can success
our business is the financial resources
financial resources include capital of the
retailer as well as different types of assets of
the retailor.financial resources can support
business activities.
What is The entry strategy.
Two approaches retailer used it when they enter
in non domestic as well as domestic market.
(1) Direct investment approach. Direct
investment retailer firms invest our capital to
domestic market as well as non domestic
market. this strategy of entry require highest
level of investment and it also involve highest
risk.
(2) Joint venture
• A joint venture strategy a retailer used it to
enter a market in invest our resources to local
retailer firms. which introduce a new firms.
and which ownership control and profit
sharing it.