Retail Strategy
A statement identifying
(1) the retailer’s target market,
(2) the format the retailer plans to use to satisfy the target market’s needs, and
(3) the bases on which the retailer plans to build a sustainable competitive advantage
A retail strategy
Enclosed, climate-controlled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway. Parking is usually provided around the perimeter.
Mall
Areas within a store that are designed to get customers’ attention.
Feature areas
This approach involves setting the price based on the prices of similar products offered by competitors.
Competitive pricing.
Market segment towards which the retailer plans to focus its resources and retail mix.
Target market
A major retailer within a shopping centre, such as Macy's, Walmart (Macro, Home Market) that attract a significant number of consumers and consequently make the centre more appealing for other retailers.
Anchor
Three most common layout types.
Grid
Free-flow (boutique)
Loop
(alt. Spine)
Compare and contrast cost-plus pricing vs value-based pricing.
Cost-plus pricing is setting the price at a markup above the cost of the product to ensure profit, whereas value-based pricing involves setting the price based on perceived value of the product to the customer, regardless of the cost.
Strategic approach involving selecting the most valuable segments for a business and then developing a marketing mix for each customer group.
STP - Segmentation, Targeting, Positioning.
Downtown business area in a city or town. Due to its daily activity, it draws many people and employees into the area during business hours. It is also the hub for public transportation, and there is a high level of pedestrian traffic. Limited parking and longer driving times are the downsides of this type of location.
Central Business District
Name at least 4 types of fixtures
Gondolas, 4-way fixtures, round-rack (rounder), bulk fixture, straight rack, table, etc
Compare and contrast every-day-low pricing vs high-low pricing strategy.
EDLP - is about maintaining consistently low prices on products without frequent promotions or discounts (ensures customer trust, simplify pricing structures, and compete on value rather than promotional activity)
HLP - is about offering regular prices along with periodic sales, promotions, or discounts (enables premium positioning, encourages customers to make purchases during promotional periods, requires promotional communication).
List 6 elements of retailing mix
Location
Layout and Design
Merchandise Management
Pricing
Communication Mix
Customer Service
Define and evaluate the advantages and disadvantages of free-standing location.
Freestanding sites are retail locations for an individual, isolated store unconnected to other retailers (they might be near other freestanding retailers or a shopping center).
The advantages of freestanding locations are
easy access
parking
high vehicular traffic
visibility
modest occupancy costs
fewer restrictions on signs, hours, or merchandise, as are typically imposed in shopping centers.
Disadvantages:
a limited trade area
typically limited pedestrian traffic
Windows, Entrance, Promotional aisle/area, walls, dressing rooms, Free-standing displays, Mannequins, End Caps, cash wraps
List and describe at least 5 pricing tactics
Discount Pricing - Offering temporary price reductions
Psychological Pricing - Setting prices just below round numbers
Bundling -Grouping related products or services together and offering them at a combined, lower price
Dynamic pricing - Adjusting prices based on demand, competitor pricing, and market conditions
Time-Based Pricing - Varying prices based on the time of day, week, or season
Loyalty Pricing - Offering discounted prices or exclusive deals to loyal customers
Geo-Targeted Pricing, Flash Sales, Price Matching