Page 118 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 6: Retail Planning and Environment

Notes
Example: Marketing policy decisions should provide guidelines for marketing
management in accordance with the chosen strategy, providing the overall direction of business.
While corporate and business level strategies are concerned with “doing the right thing”,
functional strategies stress on “doing things right”.

6.3 Strategic Planning Process

This text developing and applying retail strategy, retailers are required to follow a step-by-step
procedure or planning process. The planning process involves the present stage of business, the
formulation, lists of available strategic options, and the implementation of the selected strategies.
Considering the importance of strategic decisions for the future success of the business, a
systematic approach is essential. The strategic planning process, after considering the HR potential
and the unique selling proposition (USP) of a particular store takes proper shape.
Strategic retail planning process divided into the following steps:

(a) Deciding the store’s mission and objectives
(b) Situation analysis
(c) Formulation of retail strategy

(d) Implementation and control of strategy
Deciding the Store’s Mission and Objectives

The retail strategic planning process starts with the identification of a store’s mission for its
existence, and hence the scope of the retail store. The mission of a store is identifying the goods
and services that will be offered to customers. It also deals with the issue of how the resources
and capabilities of a store will be used to provide satisfaction to customers and how the store can
compete in the target market vis-à-vis its competitors.
The mission also involves the way of the store’s functioning. How a store will work and
accomplish its day-to-day operations. What is the emergency planning? All these questions are
answered in the store’s mission statement.

Example: Big Bazaar, they have philosophy of customer satisfaction through
‘manufacturing retailing’.
This reflect not only the way it tends to treat its customers but discuss secret of its competitive
advantage, i.e. the profit saved from absence of intermediaries like agents and brokers, the
profit saved is thus, distributed to the customers by way of low price items.

Once the organization mission has been determined, its objectives the desired future positions
that it wishes to reach, should be identified. A store’s objectives are defined as ends that the store
seeks to achieve by its USP and operations.
The store’s objectives may be classified into two parts:
(a) External store objectives are those objectives that define the impact of store on its
environment.

Example: To develop high degree of customer confidence by providing quality goods at
affordable price.

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