Session: 6 Prof:Yasmin
Strategic Planning
Is the process by which a retailer plans the future actions of a firm by anticipating the environment changes and business patterns Is futuristic in nature and tends to prepare the firm for future challenges
Strategic Planning
A retailer who focuses on specific targets can provide a superior offering to a specific group of customers. Saify and Metro are two shoe stores situated side by side in a plush market area. Both provide footwear of leading Indian and international brands. In early summer just as the end of examinations, Saify advertised clearance sale of international brand shoes with 50% discount, put a big banner with balloons near an ice cream parlor and distributed newspaper inserts on Thursday. The following weekend there was heavy rush in the store. Encouraged by the Saify sale metro too put a banner and announced a sale with 50% discount but there was no crowd. Can you think of the reasons? Did Metro strategically plan its activities? #
Yasmin
Develop a Mission Establish objectives Conduct situational analysis Identify strategic alternatives Select markets to compete in Obtain resources needed to compete Develop positioning strategy Implement strategy Evaluate results
Yasmin #
Develop a Mission
Reflects the basic purpose for its existence Would include details of the product and services to be offered, scope of business, target customers, growth plans, the kind of customer service to be provided and the attributes for competitive advantage The mission statement distinguishes one firm from the other Reflects the philosophy of the top management and also guides the corporate culture Its the basic foundation of the whole planning process
6 Yasmin #
Establishing Objectives
Statement of what the firm seeks to achieve in terms of sales volume, profitability, market share, quality levels, etc. Profit is the main objective still firms incorporate social objectives as well Short term objectives are specific and set for a year or two Long term objectives do not stretch beyond five years owing to highly fluid market dynamics Objectives should be SMART
9 Yasmin #
Situational Analysis
A retailer should have a clear understanding of the internal and external environment SWOT- can make the use of information collected from employee surveys, customer complaints, accounting reports, focus groups, customer surveys, supplier surveys etc.
Special attention should be paid to financial aspect while assessing strengths
PEST
Economic condition- the economic condition of the country determines the purchase that consumers make and the amount of money they are ready to spend. Stagnant economy (no chance for the growth of sales)
10 Yasmin #
Situational Analysis
Technological developmentstelemarketing, e-marketing, EFT, minimum inventory, smart carts- are shopping carts equipped with technology which helps them track the contents added to the cart and total the amount of the purchase automatically with every element being added to the cart
Competitive environment the number of stores is constantly increasing while the sales per store is decreasing
11 Yasmin #
Retail Format
New
Diversification
17
Yasmin
18
Yasmin
Positioning Map
19
Yasmin
20
Yasmin
Strategy Implementation
The implementation process involves developing action plans and assigning the ownership, establishing critical paths and linking the action plans to operating plans The main objective of all these strategies is to create value for customers The practices of the firm should be customer oriented The merchandise sold should be attractive Advertising and promotion appealing Salesperson and other stores personnel should be knowledgeable and friendly
21 Yasmin #
22
Yasmin
Assignments
What is the best possible retail formats you propose for the following product categories on account of type of location and merchandise variety for a semi urban township and a metro city?
Books Cosmetics Personal computers
Design the retail marketing strategy for launching an e-retail store for traditional gold jewellery to tap the NRI customers
23 Yasmin #