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Unit II - Strategic Planning in Retailing

The document provides an overview of strategic planning in retailing. It discusses key elements of strategic planning including situation analysis, identifying consumer characteristics and needs, setting objectives and specific activities. It also discusses the importance of developing a clear mission and vision statement to guide the strategic plan. Specific activities that may be part of the strategic plan are discussed like store location, managing operations, merchandise management and pricing, and communicating with customers. The document emphasizes the importance of control and reviewing performance against the strategic plan through a retail audit. Finally, it briefly discusses some current trends in global retailing like leveraging social media and ecommerce and the need for traditional retailers to adopt smart retail technology and omnichannel strategies.

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puspa Raj upadhayay
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448 views24 pages

Unit II - Strategic Planning in Retailing

The document provides an overview of strategic planning in retailing. It discusses key elements of strategic planning including situation analysis, identifying consumer characteristics and needs, setting objectives and specific activities. It also discusses the importance of developing a clear mission and vision statement to guide the strategic plan. Specific activities that may be part of the strategic plan are discussed like store location, managing operations, merchandise management and pricing, and communicating with customers. The document emphasizes the importance of control and reviewing performance against the strategic plan through a retail audit. Finally, it briefly discusses some current trends in global retailing like leveraging social media and ecommerce and the need for traditional retailers to adopt smart retail technology and omnichannel strategies.

Uploaded by

puspa Raj upadhayay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT II

Contents

Strategic Planning in Retailing


Objectives, Situation Analysis, Identification of consumer characteristics
and Needs, Specific Activities, Control, Template for Retail
Management, Global exposure in Retailing
Strategic Planning
• Involves adapting the resources of the firm
to the opportunities and threats of an ever
changing retail environment.

• It relies on developing a clear corporate


mission, supporting objectives, creating a
sound business portfolio, and coordinating
functional strategies.
Corporate Level Planning
• Retail management should plan which business the
retailer should stay in and which new areas to pursue.

• Design the retail organisation to withstand shocks.

• Adapt the organisation to take advantage of market


opportunities.
Mission Statement
• A strategic plan should begin with a mission statement.

• A mission statement is a statement of the retail organization’s


purpose, what it wants to achieve in the large environment.

• It guides people in the retail organization so that they can


work independently and yet collectively towards overall
organizational goals.
DIFFERENCE BETWEEN

Mission Statement
&
Vision Statement
Vision Mission
• It answers the question, “Where do we aim • It answers the question, “What do
to be?” we do? What makes us different?”
• A Vision statement outlines WHERE you • A Mission statement talks about
want to be. Communicates both the HOW you will get to where you
purpose and values of your business want to be.
• Defines the purpose and primary
• A Vision statement talks about your Future.
objectives related to your customer
needs and team values.
• As your organization evolves, you might • A Mission statement talks about the
feel tempted to change your vision.
present leading to its future.
• However, Vision statements explain your
organization's foundation, so change • Your mission statement may
should be kept to a minimum. change, but it should still tie back to
your core values, customer needs
and vision.
Elements of a Retail Strategy
Situation Analysis
• Situation analysis is the straight evaluation of Opportunities and Threats.
Opportunities are marketplace openings that exist because other
retailers have not yet not capitalized on them.Ikea does well because it is
the pioneer firm in offering a huge selection of furniture at discount
prices.
• Threats are environmental and marketplace factors that can adversely
affect retailers if they do not react to them .
• It looks at the firm’s marketplace current position and where it should be
heading.
• It seeks to answer two general questions: (1) What is the firm’s
current status? (2) In which direction should it be heading? Situation
analysis means being guided by an organizational mission, evaluating
ownership and management options, and outlining the goods/service
category to be sold.
Objectives
• A firm may pursue one or more of these objectives:

 Sales (growth, stability, and market share)

 Profit (level, return on investment, and efficiency)

 Satisfaction of publics (stockholders, consumers, and


others), and

 Image/positioning (customer and industry perceptions).


Identification of Consumer Characteristics & Needs

• The customer group sought by a retailer is called the target market.


• In selecting its target market, a firm may use one of three techniques:
Mass Marketing, selling goods and services to a broad spectrum of
consumers; Concentrated Marketing, zeroing in on one specific group;
or Differentiated Marketing, aiming at two or more distinct consumer
groups, with different retailing approaches for each group.
 Some highlight key consumer characteristics such as:
• gender
• age
• occupation
• disposable income
• residential location
Identification of Consumer Characteristics & Needs
Specific Activities
• Store location: Trading-area analysis gauges the area from which a firm draws its customers. The
level of saturation in a trading area is studied regularly. Relationships with nearby retailers are
optimized. A chain carefully decides on the sites of new outlets. Facilities are actually built or
modified.
• Managing the business: There is a clear chain of command from managers to workers. An
organization structure is set into place. Personnel are hired,trained,and supervised. Asset management
tracks assets and liabilities. The budget is spent properly. Operations are systemized and adjusted as
required.
• Merchandise management and pricing: The assortments within departments and the space allotted
to each department require constant decision making. Innovative firms look for new merchandise and
clear out slow-moving items. Purchase terms are negotiated and suppliers sought. Selling prices
reflect the firm’s image and target market. Prices offer consumers some choice. Adaptive actions are
needed to respond to higher supplier prices and react to competitors 'prices.
• Communicating with the customer: The storefront and display windows, store layout, and
merchandise displays need regular attention. These elements help gain consumer enthusiasm, present
a fresh look, introduce new products, and reflect changing seasons. Ads are placed during the proper
time and in the proper media. The deployment of sales personnel varies by merchandise category and
season
CONTROL
• In the control phase, a review takes place,as the strategy and
tactics are assessed against the business mission, objectives, and
target market .
• This procedure is called a retail audit, which is a systematic
process for analyzing the performance of a retailer.
• In retail audit the strengths and weaknesses of a retailer are
revealed as performance is reviewed.
• The aspects of a strategy that have gone well are continued; those
that have gone poorly are revised, consistent with the mission,
goals, and target market. The adjustments are reviewed in the
firm’s next retail audit.
Global Exposure in Retailing
Global Exposure in Retailing
Ecommerce features by Facebook, Instagram, and Tiktok to boost the number of social
shoppers..

Smart Retail Market Size Worth $58.23 Billion By 2025 | CAGR: 23.9%

In present day retail industry, conventional bricks-and-mortar stores are facing intense
competition from rapidly expanding e-commerce sector.

Therefore, traditional retailers need to incorporate smart retail technology to bring back
their customers.
Visual commerce can stand for many different things, from tracking hash tags on social media
platforms, collecting user-generated content. ecommerce brands of all verticals are leveraging
customer photos to drive higher online conversion, increase average order value, and online
engagement
Global
Exposure in OMNICHANNEL Strategy
Retailing
THANK YOU

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