MARCHANDISING STRAGET
A
SNAP
SHOT
Merchandising strategy is all about
targeting the right people with right
merchandise at the right time at right
place.
6/28/2011
ORIGIN OF STRATEGY
• The word “ STRATEGY” comes from ancient Greece. A
“STRATEGOS” was an army general, and his post was a
“STRATEGIA”.Over times it means a craft of generalship
instead of just the job. The word spread to French as
“STRATEGIE” and evolve as STRATEGY in 1810.The term
has to do with stratagems by which a general sought to
deceive his enemy. Today this kind of similar war is
apparent in consumer market place. If one replace the
concept of troops in the military with the concept of
resources within the organization, the concept of
strategy begins to take shape. In business as in the
military strategy bridge the gap between ends &
means.
WHAT IS STRATEGY....??????
• A STRATEGY DEFINES A COMPANY’S POSITION
TO OPTIMIZE PROFIT BACKED BY A MODEL OF
SUCESSFUL OPERATION.
COMPONENT
• Where is the business trying to get to in the longterm…..(DIRECTION)
• Which markets should a business compete in and what
kind of activities are involved in such markets?....
(MARKET SCOPE)
• How can the business perform better than the
competition in those markets?..... (ADVANTAGE)
• What resources (skills, assets, finance, relationships,
technical competence, facilities) are required in order
to be able to compete… (RESOURCE)
• What external, environmental factors affect the
businesses' ability to compete….( ENVIORMENT)
• What are the values and expectations of those who
have power in and around the business…
(STAKEHOLDERS)
TYPE Vs PROFILE
LEVEL
• Corporate Strategy - is concerned
with the overall purpose and scope of the
business to meet stakeholder expectations.
Corporate strategy is often stated explicitly in a
"mission statement.
• Business Unit Strategy - is
concerned more with how a business competes
successfully in a particular market. Products,
meeting needs of customers, gaining
advantage over competitors, exploiting
or creating new opportunities etc.
• Operational Strategy - is concerned
with how each part of the business is organized
to deliver the corporate and business-unit level
strategic direction. Operational strategy
therefore focuses on issues of resources,
processes, people etc.
ONUS
 SENIOR
MANAGEMENT

MEDIL LEVEL
MANAGEMENT
 LOWER LEVEL
MANAGEMENT
How Strategy is Managed - Strategic
Management
• FORMATION
STRATEGIC
ANALYSIS
STRATEGIC
IMPLEMENTATION
STRATEGIC
CHOICE
BUSINESS
STRATEGY
Where is the business trying to get to
in the long-term…..(DIRECTION)
Which markets should a business
compete in and what kind of activities
are involved in such markets?....
(MARKET SCOPE)
How can the business perform better
than the competition in those
markets?..... (ADVANTAGE)
What resources (skills, assets, finance,
relationships, technical competence,
facilities) are required in order to be
able to compete… (RESOURCE)
What external, environmental factors
affect the businesses' ability to
compete….( ENVIORMENT)
What are the values and expectations
of those who have power in and
around the business…
(STAKEHOLDERS)
FLOW OF RETAIL STRATEGY
PRODDUCT
TO BE
SOURCE
METHOD
OF
PACKAGING
MERCHANDISING
STRATEGY
PRICE
TERM &
CONDITION
OF
VENDORS
DESCRIPTION
• A CLEAR AND DEFINITE PLAN THAT THE
RETAILER OUTLINES TO TAP THE MARKET &
BUILD A LONG TERM RELATIONSHIP TO THE
CUSTOMERS.
• IT IS THE FUNDAMENTAL TO THE EXISTANCE
OF RETAIL ORGANISATION.
• THE ELEMENTRY RETAIL STRATEGIES ARE……
A) STORE LOCATION B) MERCHANDISING
C) PRICING
D) MARKETING
STEPS
•
•
•
•
•
•
•
ESTABLISH MISSION
ANALYSE SITUATION
IDENTIFY OPTIONS
SET OBJECTIVES
OBTAIN & ALLOCATE RESOURCES
DEVELOP IMPLEMENTATION PLAN
MONITOR PROGRESS & CONTROL
CHOICE & IMPLEMENTATION
ANALYSIS
• PEST Analysis
• Scenario Planning
• Five Forces Analysis
• Market Segmentation
• Directional Policy Matrix
• Competitor Analysis
• Critical Success Factor
Analysis
• SWOT Analysis
CHOICE & IMPLEMENTATION
Strategic Choice
This process involves understanding the
nature of stakeholder expectations (the
"ground rules"), identifying strategic
options, and then evaluating and
selecting strategic options
Strategy Implementation
Often the hardest part. When a
strategy has been analyzed
and selected, the task is then
to translate it into
organizational action
IDENTIFY OPTIONS
• Ansoff’s Matrix focus on present, potential in
the existing and emerging markets….
MARKET PENETRATION
MARKET DEVELOPMENT
RETAIL FORMAT DEVELOPMENT
DIVERSIFICATION
OBJECTIVE
•
•
•
•
•
•
SALES VOLUME TARGET
MARKET SHARE TARGETS
RETAIL EXPANSION TARGETS
PROFITABILITY TO BE ACHIEVED
LIQUIDITY
ROI
IMPLEMENTATION,EVALUATION &
CONTROL
•
•
•
•
•
DEVELOP THE STRATEGIC PLAN
MEASURABLE
ACCESSIBLE
ECONOMICALLY VIABLE
STABLE
CASE STUDY
ALIGNMENT OF ITS MARCHANTS WITH KEY PRODUCT
AREAs EACH WITH IDENTIFIED CUSTOMERS
SEGMENTS.
FOCUSED ON FIVE DIVISION…
GROCERY,ENTERTAINMENT,APPARELS & HOME……
REPORTS TO FLEMING.
PHARMACY & OPTICAL REPORTS TO............ BILL
SIMON
THREE –YEAR PLAN TO INCRESE THE COMPANY’S SALES
AND PROFITABILITY.THIS PLAN HAS MORE FOCUSE ON
BECOMING MORE RELEVENT TO CUSTOMERS DIVERSE
SEGMENTS.RESEARCH TO DETERMINE CUSTOMER NEED
AND IMPLEMENTATED A FIELD ORGANIZATIONAL
STRUCTURE TO FACILITATE NEW MERCHANDISING
INITIATIVES.