Nama : Rohmat

Hidayat

NIM : C0D008021

Differentation about retail business

In his 1960 book, Reality in Advertising, Rosser Reeves, a respected US

advertising executive, introduced the world to the concept of the Unique Selling
Proposition, USP for short.

Rosser defined USP in an advertising context:

1. Each advertisement must make a proposition to the consumer: buy this

product and you will get this benefit.

2. The proposition must be one that the competition either cannot or does
not offer.

3. The proposition must be so strong that it changes consumer behaviour.

In the 1960s and 1970s, the concept of a unique selling proposition evolved from
being essential to advertising to being essential in business. Finding your
business USP was considered mission critical to businesses, retailers especially.
Businesses drifted however and forgot about the importance of a USP.

Jack Trout told us just a few years ago that it was as relevant today. In 2000, he
said that a Unique Selling Proposition was mission critical in business in his aptly
titled book Differentiate or Die.Differentiate of Die. There is no doubt about the
call to action in the title, no doubt about the consequences of inaction.Yet many
retailers, for the most part, have remained still in the face of an onslaught of
competition.Retail is tough today. The differences between competitors fewer.
Retailers are surrounded by competition and it grows by the day. Yet many have
remained still and done nothing.Smart retailers are re-acquainting themselves
with the writings of Reeves and Trout and and leaning about the mission critical
imperative of having a Unique Selling Proposition.

Differentiation could be service, products or location or a combination of these.

Differentiation will most likely not be price as anyone can match this easily. Price
is, after all, the last line of defense in any business battle. That said, there are
some major price-focused success stories - Wal Mart for example. It is rare in an
independent retail situation.

To develop your USP, engage with your employees and other stakeholders. Take
your time. Determine what you and your business stand for. Following open and
honest discussion and debate, the USP around which everyone in the business
can willingly congregate will emerge.

A good USP will not require an advertising campaign to communicate. It will

become obvious through actions and decisions. By living the USP in every facet
of the business you soon become seen as unique by shoppers and this can drive
excellent word of mouth and success for the business.

While differentiation in retail is more important today than ever thanks to today's
economic conditions, the approach to the challenge is the same as in the 1960s.

Case diferentiation retail business

The first Target Store was opened in 1962 by
the Dayton Company. Though there were other
discount chains in the US at that point of time,
many of them do not exist today. Target was
able to adapt itself to the changing environment
and by 2002, it was the second largest discount
retailer in the US. The case examines the entry
of Target into the discount retailing sector and
its growth path.

It looks at how Target differentiated itself from

other discount retailers. The case also elaborates
on the merchandising, advertising, and branding
efforts of Target, which helped to create a
unique image for it in the minds of the
customers and to maintain a steady increase in
revenues through the years.

Issues:
» How a new entrant can differentiate itself from existing players in the discount retailing
industry.

» The role of branding in successful positioning in the discount retailing industry.

» How pricing is not the only way to compete successfully in the discount retailing industry.

» How a company can continue to differentiate itself as it grows and maintain its unique
image in the eyes of the customers.

» The role of merchandizing in the success of a retail store.