Marketing bán hàng - Chapter 5: Retail marketing strategy

Chapter 5Retail Marketing Strategy 5-2Retailing StrategyRetail Market Strategy Chapter 5Financial Strategy Chapter 6Retail Locations Chapters 7,8Human Resource Management Chapter 9Information and Distribution Systems Chapter 10Customer Relationship Management Chapter 11 5-3“Strategy” Is Over UsedRetailers Talk About A Lot of Different “Strategies”Sales StrategyAdvertising StrategyMerchandise StrategyLocation Strategy Strategy Is Not Just Another Term for  A Management Decision 5-4Strategic vs. Tactical DecisionsStrategic TacticalDirection ImplementationStrategy statement Annual planBroad Specific, detailedUnstructured StructuredProblem solving Problem solvingCreativity AnalyticalExternal focus Internal focusIrregular RegularLong-term Short-termDifficult to evaluate Easy to evaluateNote: Success Comes for Having a Good Strategy and Executing It Well 5-5Elements in Retail Strategy Target Market Customer Needs Retail Format Method for Satisfying Needs Bases for Building Sustainable Competitive Advantage Defending Position Against Competitors© image100 Ltd 5-6Analyzing McDonalds’ Retail Strategy What Is McDonalds’:-Target market? -Retail offering (format)? -Bases for competitive advantage? What Threats Might McDonald’s Face in the Future?The McGraw-Hill Companies, Inc./John Flournoy, photographer 5-7Examples of Retail Strategies Starbucks Kohls Restoration Hardware Ukrop’sWhat is the target market, retail offering, and source of competitive advantage for each retailer? 5-8Chico’s StrategyTarget Market Woman 35 to 55 Who Want Comfortable, Casual, But Stylish ApparelRetail Format Specialty Apparel Stores in Malls and Strip Centers Selling Private Label, Coordinated OutfitsBases for Building Sustainable Competitive AdvantageUnique Merchandise Sized 0,1,2,3 5-9Strategy for Looking for a Job Determine Your Target MarketArea of CountryType of CompanyType of Position Assess and Exploit Your Competitive AdvantageUnique Skills, Experience, KnowledgePhotodisc/Punchstock 5-10Why Does a Retailer Need to Focus on a Specific Target Market?Why Not Sell to Everyone? 5-11Retail Market Opportunities for Women’s Apparel 5-12Criteria For Selecting A Target MarketAttractiveness -- Large, Growing, Little Competition More ProfitsConsistent with Your Competitive AdvantagesRim Light/PhotoLink/Getty Images 5-13Can A Retailer Develop a Sustainable Competitive Advantage by:Building a Store at the Best Location?Deciding to Sell Some Hot Merchandise?Increasing Your Level of Advertising?Attracting Better Sales Associates by Paying Higher Wages?Providing Better Customer Service?Dropping the Price of Your Merchandise?PhotoLink/Getty Images 5-14How to Develop a Sustainable Competitive Advantage 5-15Internal and External Bases for Competitive AdvantageRetail FirmLow CostLarge SizeEfficient Distribution, Operations Unique Knowledge Loyal EmployeesSources ofCapitalVendors, SuppliersCustomers 5-16Sources of Competitive AdvantageMore SustainableLocationCustomer LoyaltyCustomer Service Exclusive Merchandise Low Cost Supply Chain ManagementInformation SystemsBuying Power with VendorsCommitted EmployeesLess SustainableBetter ComputersMore EmployeesMore MerchandiseGreater AssortmentsLower PricesMore AdvertisingMore PromotionsCleaner Stores 5-17What does loyalty mean?Is It the same as liking a store?Going to the store frequently?LoyaltyDigital Vision / Getty Images 5-18How Retailers Build LoyaltyDevelop a strong brand for the store or the store brandsDevelop clear precise positioning strategiesCreate an emotional attachment with customers through loyalty programsRoyalty-Free/CORBIS 5-19Approaches for Building Customer LoyaltyUnique PositioningCustomer ServiceInformation About Customers (Database)Unique MerchandiseLocation 5-20Example of Positioning 5-21Creating Store LoyaltyMental and Emotional AttachmentsElements in a Strong BrandTop of the Mind AwarenessAssociations with Brand/Store NameMethods Used to Develop a Strong BrandMassive ExposureSymbols to Reinforce ImageConsistent Positioning Creating Strong AssociationsLimited Brand Extensions 5-22Distribution and Info SystemsFlow of InformationVendorDistribution CenterStore-Better services-Increase in breadth and depth-Decrease in pricesBy decreasing costs here, the is more money available to invest in:StockTrek/Getty Images 5-23Private LabelsSears’ Kenmore -- appliancesFederated’s Inc. – fine apparelKmart’s Martha Stewart -- homeJCPenney’s Arizona -- jeansJules Frazier/Getty ImagesRob Melnychuk/Getty ImagesJacobs Stock Photography/Getty Images 5-24Vendor RelationshipsLow Cost - Efficiency Through CoordinationElectronic Data Interchange (EDI)Collaborative Planning and Forecasting to Reduce Inventory and Distribution CostsExclusive Sale of Desirable BrandsSpecial TreatmentEarly Delivery of New StylesShipment of Scare Merchandise 5-25High Quality Customer ServiceDifficult to AchievePeople Are Not Machines -- InconsistentRetail Sales Associates At Bottom of Labor PoolGoes Beyond Hiring Good People at High Wages and Training Them -- Organizational Culture 5-26Critical Tradeoff In Developing Strategic AdvantageFocus Leads to Developing A Competitive AdvantageButFocus Reduces FlexibilityLow Cost, Consistent Image, Vendor Relationships Reduces FlexibilitySimilar to Dating and Marriage – Commitment to a Relationship (Vendor) Reduces Flexibility 5-27Growth OpportunitiesMarket PenetrationMarket ExpansionRetail Format DevelopmentDiversification Related vs. UnrelatedRyan McVay/Getty Images 5-28Growth Opportunities 5-29Market PenetrationAttract customers from target market – Walgreens “on every corner”Get current customer to visit store more often or buy on each visit Cross Selling – sales associates in one department sell complimentary merchandise from other departments Example: Manicurist sells services plus hand lotion or nail polishExample: Salesperson sells leaf blower directs customer to electrical department to purchase a 100 foot extension cord. 5-30International Growth Opportunities Europe China Mexico Latin America JapanSteve Cole/Getty Images 5-31Why Do Category Killers and Supercenters Succeed Globally?Developed operating expensesScale economies for buying merchandise globallyUnique systems and standardization formats that facilitate control over multiple storesUnderstand that consumers are willing to forego service for lower pricesRyan McVay/Getty Images 5-32Key to Success inGlobal RetailingDomestic market leadership – strong baseExploiting core competencies – competitive advantageLow cost - Wal-Mart, CarrefourFashion Reputation - The Gap, Zara, H&MCategory dominance – Best Buy, Office DepotUnique Image, Brand – Disney, IKEA, StarbucksAdaptabilityGlobal CultureLong-term commitment 5-33Succeeding InternationallyAdaptabilityGlobal cultureFinancial resources Global sustainable competitive advantagePhotoLink/Getty Images 5-34International Market Entry Strategies Direct InvestmentJoint VenturesStrategic AlliancesFranchising Lawrence Lawry/Getty Images 5-35Steps in the Strategic Retail Planning Process1. Define the business mission2. Conduct a situation audit:  Market attractiveness analysis Competitor analysis Self-analysis3. Identify strategic opportunities5. Establish specific objectives and allocate resources7. Evaluate performance and make adjustments6. Develop a retail mix to implement strategy4. Evaluate strategic alternatives 5-36Elements in a Market AnalysisMARKET FACTORSCOMPETITIVE FACTORSENVIRONMENTAL FACTORSANALYSIS OF STRENGTHS & WEAKNESSESBarriers to entryBargaining power of vendorsCompetitive rivalryThreat of superior new formatsTechnologyEconomicRegulatorySocialSizeGrowthSeasonalityBusiness cyclesManagement capabilitiesFinancial resourcesLocationsOperationsMerchandiseStore ManagementCustomer loyalty 5-37Market FactorsMarket size – large markets attractive to large retail firmsGrowing markets – typically more attractive than mature or decliningBusiness cycles – retail markets can be affected by economic conditions – military base townsSeasonality – can be an issue as resources are necessary during peak season only 5-38Questions for Analyzing the EnvironmentNew developments or changes -- technologies, regulations, social factors, economic conditions Likelihood changes will occur Key factors determining change Impact of change on retail market  firm, competitors 5-39Competitive FactorsCompetitiveRivalryBargaining Power of VendorsBarriers to EntryLarge CustomersThreat of Substitution 5-40Competitive RivalryLarge number of competitors all about the same sizeSlow growthHigh fixed costsLack of perceived differences between competing retailersRoyalty-Free/CORBIS 5-41Performing a Self-AnalysisAt what is our company good?In which of these areas is our company better than our competitors?In which of theses areas does out company’s unique capabilities provide a sustainable advantage or a basis for developing one? Stockbyte/Punchstock Images 5-42Strengths and Weaknesses AnalysisManagement Capability: Capabilities and experience of top managementDepth of Management--capabilities of middle managementManagement’s commitment to firmFinancial Resources:Cash flow from existing businessAbility to raise debt or equity financingOperations:Overhead cost structureQuality of operating systemsDistribution capabilitiesManagement information systemsLoss prevention systemsInventory control systemMerchandising Capabilities:Knowledge and skills of buyersRelationships with vendorsCapabilities in developing private capabilitiesStore Management CapabilitiesManagement capabilitiesQuality of sales associatesCommitment of sales associates to firmLocationsCustomersLoyalty of customers 5-43Illustration of the Strategic Retail Planning ProcessKelly Bradford – Owner of Gifts To GoTwo Store Chain in ChicagoTarget Market – Upper Income Men and Women Looking for Gifts between $50 and $500Strong Customer Loyalty Based on Knowing What Customers Want, Providing Good Customer ServiceLow Turnover Among Associates 5-44Mission Statement for Gifts To Go“The mission of Gifts to Go is to be the leading retailers of higher-priced gifts in the Chicago and provide a stable income of $100,000 per year for the owner.”Define growth opportunities will and won’t considerIndicates objective of company 5-45Situation Analysis ofGifts to GoMarket Factors Chicago is an attractive market. (+) Relatively expensive gifts are not affected much by the economy. (+)Gifts are highly seasonal. (-)Competitive FactorsMany in area. Primary department stores, craft galleries, catalogs, and Internet retailers (-)Lack of large suppliers, customer (+)Opportunities for differentiation (+)Limited competitive rivalry. (+) 5-46Situation Analysis ofGifts to Go (continued)Environmental FactorsPotential Threat - Development of electronic channel by traditional bricks and mortar retailers (-)Strengths and WeaknessesManagement Capability – LimitedFinancial Resources – GoodOperations – PoorMerchandise Capabilities – GoodStore Management Capabilities – ExcellentLocations – ExcellentCustomer Loyalty – GoodCustomer Database - Good 5-47Growth Opportunities forGifts to GoMarket PenetrationIncrease size of present storesOpen additional gifts stores in Chicago areaMarket ExpansionOpen gift stores outside Chicago areaSell lower priced gifts in present storesRyan McVay/Getty Images 5-48Growth Opportunities forGifts to Go (continued)Retail Format DevelopmentSell non-gift merchandise to same customers in present or new storesSell similar gifts to same customers through an electronic channelDiversificationManufacture craft giftsOpen an apparel store targeting teenagersOpen a category killer store selling a broader assortment of gifts 5-49Evaluating Growth Opportunities forGifts to GoMarket AttractivenessMarket PenetrationIncrease size of present stores (low)Open additional gifts stores in Chicago area (medium)Market ExpansionOpen gift stores outside Chicago area – new geographic segment (medium)Sell lower priced gifts in present stores – new benefit segment (medium) 5-50Evaluating Growth Opportunities forGifts to Go (continued)Market AttractivenessRetail Format DevelopmentSell non-gift merchandise to same customers in present or new stores (High)Sell similar gifts to same customers through an electronic channel (High)DiversificationManufacture craft gifts (High)Open an apparel store targeting teenagers (High)Open a category killer store selling a broader assortment of gifts (High) 5-51Evaluating Growth Opportunities forGifts to GoCompetitive PositionMarket PenetrationIncrease size of present stores (High)Open additional gifts stores in Chicago area (Medium)Market ExpansionOpen gift stores outside Chicago area (Low)Sell lower priced gifts in present stores (low) 5-52Evaluating Growth Opportunities forGifts to Go (continued)Competitive PositionRetail Format DevelopmentSell non-gift merchandise to same customers in present or new stores (Low)Sell similar gifts to same customers through an electronic channel (Medium)DiversificationManufacture craft gifts (Low)Open an apparel store targeting teenagers (Low)Open a category killer store selling a broader assortment of gifts (Low) 5-53Market Attractiveness/Competitive Position Matrix 5-54Steps in Using Market Attractiveness - Competitive Position Matrix Define strategic opportunities Identify market attractiveness and competitive position factors Assign weight based on importance of factors Rate opportunities on market attractiveness and competitive position Calculate scores and evaluate opportunities 5-55Characteristics of International Markets5-9 5-56Attractiveness Ratings forInternational Growth Opportunities 5-57Competitive Position in International Growth Opportunities