MindMap Gallery Retail Strategy - Strategic Retail Planning Process in 7 Steps
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Retail Strategy - Strategic Retail Planning Process in 7 Steps
For my class. Two mind maps on seperate pages. Page 1: The first mind map is about retail strategy. Page 2: The second mind map is about strategic retail planning process (7 steps).
Edited at 2021-02-01 06:12:20
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- Outline
Retail Strategy
Target Market
Needs/Wants
Satisfaction
Retail Format (Marketing Mix)
Product
Price
Promotion
Place
People
Processes
Physical Design
Target MarketNeeds & WantsSatisfaction
Basis for sustainablecompetitive advantage(Unique Selling Proposition)
Strong Relationships
Customers
Loyalty
Brand
Consistent Satisfaction
Consistent Quality
Guarantees
Trust
Clear, DistinctivePositioning
Convenient Locations
Loyalty Programs
CRM
Data Warehouse
Types of Merchandise& Services Desired
Targeted Ads
More FocusedMerch Mix
Customer Service
Motivation
Training
Culture
Unique Merchandise
Private-Label(Store) Brands
Suppliers
Supply-ChainEfficiency
Sales rights fora specific region
Specialpurchasing terms
Receiving exclusive or popularmerch in short supply.
SWOTAnalysis
Micro-Environment
Macro-Environment
Efficient Operations
Economies of scale
HR Management
Employees ContributeTo Customer Loyalty
Long-Term EmployeesAre More Efficient
Retention
Incentives
Culture
ManagingDiversity
Data / Information
Blockchain
Sharing sales datawith suppliers
Smart contracts
Customer purchases
better merchandiseassortments
tailored promotions
Retail Analytics (RA)helps identify...
number & value ofaverage orders
most popular products
most effective staff
most valuable customers
busiest hours
Cost Leadership
Location
Important for convenience products(e.g., fast food) to have lots of locations.
Strategic RetailPlanning Process
1. Define the Business Mission
What do we do? (scope)
Who do we do it for?
How do we do it? (secret sauce)
What do we want to accomplish?
2. Conduct a Situation Audit (SWOT Analysis)
Market Attractiveness Analysis
Market Size
Market Growth
Growing markets offer better margins & fluid customers(haven't yet developed loyalty to any brand).
Sales Cyclicality / Seasonality
Competitor Analysis
Barriers to Entry
Economies of Scale
Customer/Brand Loyalty
Availability of Great Locations
Bargaining Power of Vendors
Unattractive when merch is controlled by an oligopoly that dictates prices & terms.
Degree of Competitive Rivalry
High rivalry usually occurs where there is...
Large number of similar-sized competitors
Slow growth
High fixed costs
Lack of perceived differences btwn competitors
- Price wars- Expensive ads- Low profits
Macro-Environmental Analysis
Technological
Economic
Value-oriented retailers are less elastic than premium retailers.
Retailers w/ lower levels of service are less impacted by low unemployment levels (i.e., fewer employees to pay higher wages to)
Regulatory / Legal
Taxes & gov't red tape can make entering a market less appealing, if not impossible.
Social Trends
Demographics
Lifestyles
Attitudes
Values
Self-Analysis (Strengths & Weaknesses)
Management Capabilities
Experience/Ability of top management
Depth of management - capabilities of middle managment.
Management's commitment to the firm
Financial Resources
Cash flow from existing business.
Ability to raise debt or equity financing.
Current liquid assets.
Locations
Operations
Overhead cost structure.
Quality of operating systems.
Distribution capabilities.
Management information systems.
Loss-prevention systems.
Inventory control systems.
Merchandise
Knowledge/skill of buyers
Relationships w/ vendors
Capabilities in developing private brands.
Advertising & promotion capabilities
Store Management
Management capabilities
Quality of sales associates
Commitment of sales associates to firm.
Customer Loyalty
3. Identify Strategic Opportunities
Market Penetration
Market Expansion
Retail Format Development
Diversification
May involve redefining the mission statement.
4. Evaluate Strategic Alternatives
Market Attractiveness
Competitive Position
High if the strategic opportunity would use theretailer's strengths & area of competitive advantage.
Greatest investments should be made in opportunitieswhere the retailer has a strong competitive position.
5. Establish Specific Objectives and Allocate Resources
The retailer's overall objective is included in the mission statement.
Specific objectives are goals which progresstoward the overall objective can be measured.
Three components:
The performance sought (including a numericalindex against which progress may be measured)
A time frame within which the goal is to be achieved.
The level of investment needed to achieve the objective.
6. Develop a Retail Mix to Implement Strategy
7. Evaluate Performance and Make Adjustments
If the retailer fails to meet its objectives, re-analysis is needed.
Starts with re-viewing the implementation programs
May indicate the strategy (or mission statement) needs to be reconsidered.
Would require a new planning process, including a new situation audit.
Actual planning processes have interactions among the steps.