Retailer’s commitment to a type of business and to a distinctive role in the marketplace.
Eg: Shoppers Stop
‘To be an inspirational and trusted brand,
transforming customer's lives through fashion and delightful shopping experience every time.’ EXCELLENCE - "We will have an environment that encourages development & excellence." OPENNESS - "The obligation to dissent and an environment conducive to openness." CARE - "We will have a willingness to apologize and forgive." INTEGRITY – "We will be fair and not take what is not ours." INNOVATIVE – "We will have an environment of innovation and growth." SOCIALLY RESPONSIBLE – "We will respect our customers’ rights and be socially responsible." • Sole proprietorship • Partnership • Corporation Goods Stores: – Automotive group – Furniture and appliances group – Lumber, building, and hardware group – Jewelry stores – Apparel group – Food group – General merchandise group – Gasoline service stations Service Establishments (Personal): Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services Service Establishments (Amusement): Movie theaters Bowling alleys Dance halls Golf courses Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs Service Establishments (Hotel): Hotels Motels Trailer parks Camps • Mass merchandising • Niche retailing • Three techniques Mass marketing Concentrated marketing Differentiated marketing Strategic Mass Concentrated Differentiated Implications Marketing Marketing Marketing Retailer’s location Near a large Near a small or Near a large population medium population population base base base Goods and service Wide selection Selection geared to Distinct mix of market segment— goods/services medium- high- or low-quality aimed at each quality items items market segment Promotion efforts Mass Direct mail, E-mail, Different for each advertising and segmented segment subscription social media Price orientation Popular prices High or low High, medium, and low—depending on market segment Strategy One general One specific Multiple specific strategy for a strategy strategies, each large directed at a directed at homogeneous specific, limited different (similar) group group of customers (heterogeneous) of consumers groups of consumers Controllable Variables: Uncontrollable Variables: • Store location • Consumers • Managing business • Competition • Merchandise • Technology management and pricing • Economic conditions • Communicating with • Seasonality customer • Legal restrictions • Well-thought out private labels (Trader Joe’s, Target, King Arthur flour, etc.) • Hiring right employees (value-profit chain) • Empowering employees • Use of a fun atmosphere • “Little things that mean a lot” • Money-back guarantees Sally’s is a small, independently owned, high- fashion ladies clothing shop located in a suburban strip mall. It is a full-price, full-service store for fashion-forward shoppers. Sally’s carries sportswear from popular designers, has a personal shopper for busy executives, and has an on- premises tailor. The store is updating its strategic plan as a means of getting additional financing for an anticipated expansion. Please click URL to view: https://youtu.be/Ir1b-ez2x5g https://youtu.be/qhCM0F81vEg 1. Situation analysis 2. SWOT Analysis (Current & Long term) 3. Objectives 4. Identification of Consumers 5. Overall strategy 6. Specific Activities 1. Daily & Short term Operations 2. Responses to environment 7. Control 1. Evaluation 2. Adjustment Sally’s is a small, independently owned, high-fashion ladies clothing shop located in a suburban strip mall. It is a full-price, full-service store for fashion-forward shoppers. Sally’s carries sportswear from popular designers, has a personal shopper for busy executives, and has an on-premises tailor.
The store is updating its strategic plan as a means of
getting additional financing for an anticipated expansion. The shaving industry is cut-throat with fierce rivalries between Schick, Gillette, Unilever, and P&G. A few years ago, Unilever bought Dollar Shave Club for more than $1 billion. The deal gave Unilever access to a new market of online consumers for men’s grooming products. Last year, Procter & Gamble bought Walker & Co. which markets Bevel, a shaving brand focused on black consumers.
Not to be left behind, Schick has now announced a similar type of
deal, buying shaving company Harry’s for $1.37 billion. Harry’s has roughly 2.6% of the men’s shaving industry, with Schick at 10% and Dollar Shave Club at 8.5%.
Harry’s differs from Dollar Shave Club as it has retailers such as
Target and Walmart stocking its products on their shelves in addition to online sales. Harry’s also launched Flamingo as a new women’s grooming brand.
Dollar Shave Club and Harry’s built a direct-to-consumer business
model which has been enthusiastically embraced by shoppers. Prices are lower, and connections are more easily built between the brands and the shoppers. View Schick’s Web site: https://www.schick.com/ View Harry’s Web site: https://www.harrys.com/en/us View Flamingo’s Web site: https://www.shopflamingo.com View Bevel’s Web site: https://getbevel.com/ each team analyze the one of the shaving Web sites. What are the points of difference? Key messages? Target market?