Retail Strategic Planning

Submitted to Submitted byProf. Yamini Jaiswal Gajraj S Pawar Prabhjot S Luthra Shubham Ahuja MBA(BE)IV Sem

Contents

• Introduction

• Steps involved in retail strategic planning

• Individual step discussion

• Practical implication of those strategies in Wal-Mart

Retail Planning

• A clear and definite plan outlined by the retailer to tap the market

• A plan to build a long-term relationship with the consumers

• Process of strategy formulation in retail is the same as that for any other industry

• It starts with the retailer defining or stating the mission for the organization

• The mission is at the core of the existence of the retailer• Other aspects of the strategy may change over a period

of time or vary for different markets

Steps In Designing Retail Strategy

Objectives

Objectives helps mould a strategy and translates the organizational mission into action.These objectives can be:• Sales (growth, market share)

• Profit (level, ROI, efficiency)

• Satisfaction of publics (stockholders and consumers)

• Image (customer and industry perception).

Identification of Consumer Characteristics & Needs

Strategic Mass Concentrated DifferentiatedImplications marketing Marketing Marketing

Retailer’s near a large near a small or medium near a largeLocation population base population base population baseGoods/ wide assortment deep assortment of high distinct goods/services Services of medium quality quality or low quality items aimed at each segment

itemsPrice popular prices High or Low High, Medium and Orientation Low Strategy General Specific SpecificPromotion mass advertising Direct mail/ Different Media for Efforts subscription each segment

Overall Strategy

Controllable Variables•Store location•Managing business•Merchandise mgmt.•Pricing•Communicating withcustomer

Uncontrollable Variables•Consumer•Competition•Technology•Economic conditions•Seasonality•Legal restrictions

Retail Strategy

Retail Strategy

Retail

Formats

Market Segments

Specific Activities

In store management:Width and depth of merchandise, quality of goods & services offered, buying decisions, budgeting, forecasting, retail accounting, level of inventory.Pricing techniques, range of price.

Communicating with Customers:Building & maintaining image as well as promotional techniques.Store exteriors, layouts, displays, wall and floor colors, lights, music, smell, temperature, kind of sales personnel, customer service.Flyers, ad campaigns, sales promotion.Free publicity through stories written, televised or broadcast.

Control

Elements are coordinated to have a consistent, integrated strategy and to systematically account for uncontrollable variables.

Control

Retail audit

Feedback

Wal-Mart strategy

Wal-Mart’s Retail Mix

Retail Strategy

Customer Service

Location

MerchandiseAssortment

PricingCommunication Mix

Store DesignAnd Display

Wal-Mart’s Retail Mix

Free-standing Stores

Customer Service

MerchandiseAssortment

PricingCommunication

Mix

Store DisplayAnd Design

Location Strategy

Wal-Mart’s Retail Mix

Location

PricingCommunication

Mix

Store Design and Display

Customer Service

Large Number of Categories

Few Items in Each Category

Assortment Strategy

Wal-Mart’s Retail Mix

Location

Communication Mix

Store Design and Display

Customer Service

Merchandise Assortment

Low, EDLP

Pricing Strategy

Wal-Mart’s Retail Mix

Communication Mix

TV and NewspaperInsert Ads

Location

Pricing

Store Design and Display

Customer Service

Merchandise Assortment

Wal-Mart’s Retail Mix

Store Design and Display

Basic, Special Displays

for Products

Customer Service Location

Merchandise Assortments

PricingCommunication

Mix

Wal-Mart’s Retail Mix

Customer Service

Limited

Location

Merchandise Assortment

Pricing

Communication Mix

Store Design and Display