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1、McGraw-Hill/Irwin Retailing Management, 7/e 2008 by The McGraw-Hill Companies, All rights reserved.Chapter 5Retail Marketing Strategy12Retailing StrategyRetail Market Strategy Chapter 5Financial Strategy Chapter 6Retail Locations Chapters 7,8Human Resource Management Chapter 9Information and Distrib
2、ution Systems Chapter 10Customer Relationship Management Chapter 113Questions What is a retailing strategy? How can a retailer build a sustainable competitive advantage? What steps do retailers go through to develop a strategy? What different strategic growth opportunities can retailers pursue? What
3、 retailers are best positioned to become global retailers?4More attention to long-term strategic planning than ever beforeDue to the emergence of New competitors New formats New technologies Shifts in customer needs5Elements in Retail Strategy image100 Ltd Target Marketnthe market segment(s) toward
4、which the retailer plans to focus its resources and retail mix Retail Formatnthe nature of the retailers operationsits retail mix Sustainable Competitive Advantagenan advantage over the competition6Analyzing McDonalds Retail Strategy Target market? Retail offering (format)? Bases for competitive adv
5、antage?What Threats Might McDonalds Face in the Future?The McGraw-Hill Companies, Inc./John Flournoy, photographer7Examples of Retail StrategiesSteve & BarrysChicosCurvesMagazine LuizaStarbucksWhat is the target market, retail offering, and source of competitive advantage for each retailer?8Steven &
6、 Barrys Target MarketnValue and quality conscious consumers for university sportswear Retail Formatnstores are in middle-market malls nextreme low prices, quality private-label merchandise, upscale surroundings (“Old Navy on steroids”) Bases for Building Sustainable Competitive AdvantagenNo advertis
7、ingnAggressive incentives from mall ownersnCreative approaches to working with vendors9Chicos Strategy Target MarketnWoman 35 to 55 Who Want Comfortable, Casual, But Stylish Apparel Retail FormatnSpecialty Apparel Stores in Malls and Strip Centers Selling Private Label, Coordinated Outfits Bases for
8、 Building Sustainable Competitive AdvantagenUnique Merchandise Sized 0,1,2,310Why Does a Retailer Need to Focus on a Specific Target Market?Why Not Sell to Everyone?Target Market11Target market and retail format: Retail Market Opportunities for Womens Apparel12Question? If TARGET decides to focus up
9、on a limited set of markets for womens apparel, which should it pursue? What should the retail strategy be for that target market?13Criteria For Selecting A Target Market Attractiveness - Large, Growing, Little Competition More Profits Consistent with Your Competitive AdvantagesRim Light/PhotoLink/G
10、etty Images14Opportunities for retailers to develop sustainable competitive advantages Customer Loyalty Location Human Resource Management Distribution and Information Systems Unique Merchandise Vendor Relations Customer ServicePhotoLink/Getty Images15Can A Retailer Develop a Sustainable Competitive
11、 Advantage by: Dropping the Price of Your Merchandise? 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?16Sources of Competitive AdvantageMo
12、re Sustainable Location Customer Loyalty Customer Service Exclusive Merchandise Low Cost Supply Chain Management Information Systems Buying Power with Vendors Committed EmployeesLess Sustainable Better Computers More Employees More Merchandise Greater Assortments Lower Prices More Advertising More P
13、romotions Cleaner Stores17Internal and External Bases for Competitive AdvantageRetail Firm Low Cost Large Size Efficient Distribution, Operations Unique Knowledge Loyal EmployeesSources of CapitalVendors, SuppliersCustomers18What does loyalty mean?Is It the same as liking a store?Going to the store
14、frequently?Loyalty19Customer Loyalty More than simply liking one retailer over another Customers will be reluctant to patronize competitive retailers Retailers build loyalty by:nDeveloping a strong brand for the store or store brandsnDeveloping clear and precise positioning strategiesnCreating an em
15、otional attachment with customers through loyalty programs20Retail BrandingRetail brand Can create an emotional tie with customers that build their trust and loyalty Facilitates store loyalty because it stands for a predictable level of qualityStores use brand (stores name and store brands private label brands) to build customer loyalty21Loyalty Programs Part of an overall Customer Relationship Management (CRM) program Purchase behaviors of members of loyalty programs nAre identified when they buy because they use some type of loyalty cardnSaved in Data Warehouse What they buy When they buy H
