Page 85 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes Considerations for successful market segmentation:
(i) Measurable: The segment should be measurable and identifiable?
(ii) Accessible: Focusing market marketing efforts on a particular market segment
should have a positive impact towards bringing out the desired response.
(iii) Economically viable: The expense and efforts of focusing the marketing efforts
in potential segments should be justified.

(iv) Stable: The consumer characteristics are indicators of market potential. Hence
stable indicators to be considered.
(g) Retail strategy implement the strategy: Implementation is the key to success of any
strategy. Effective implementation of the retailers desired positioning requires.
Every aspect of stores to be focused on the target market. Merchandising must be
single-minded. Displays must appeal to target market. Advertising must talk to the
target market. Personnel must have empathy for the target market. Customer service
must be designed with the target customer in mind.
(h) Evaluate and Control: After implementation, the management needs feedback and
should focus on Performance Effectiveness of long term strategy by periodic
evaluation. Ensuring that the plans do not degenerate into fragmented adhoc efforts.
Ensuring that all efforts are in harmony with he overall competitive strategy of
business. Management can also use the process to decide on. Any future policy
change. Modifications if any, in the plan, to ensure that the combination of the
retailing mix variables support the firms strategy.
Formulation of Retail Strategy: After analyzing the store’s capabilities in terms of HR,
finance, physical and intangible resources, a store manager formulates a retail strategy
with regards to marketing retail positioning and retail mix.

Retail positioning is a plan of the store’s action for how the retailer will enter the target
market and will compete with its main competitors. Retail positioning from a retail
store’s point of view, is a step-by-step plan to create and maintain a unique and everlasting
image of the store in the consumers mind. This process reveals the fact that understanding
‘what the customer wants’ is the success key to retail positioning in the market. Under
retail positioning, a retailer conveys the message that its products are totally different and
as per customer’s requirement. The reason is that its products are attracted towards items
that are new for them with the perception that if it is new, it will have some extra/added
features.
Retail positioning is made possible under these circumstances:
(a) By differentiation of the store’s merchandise from that its competitors.
(b) By offering a high level of service after sales at nominal cost.

(c) By adopting low pricing policies.
Retail mix
The retail mix is the blend of various retail activities that in totally present the whole
concept of retailing. The retail marketing and retail positioning strategies are put into
effect by this retail mix, the set of controllable elements that a retailer can use to satisfy
customer’s needs and to influence their buying behaviour and compete effectively in the
target market. Utmost care is required on the part of retail manager to select the various
elements for a perfect retail mix.

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