Stratesy lix Chapter 5
Chapter 5
Objectives Describe Wheel of Retailing Scrambled Merchandising Retail Life Cycle Discuss Retail Strategy Evolution Examine Store-Based Retail Strategies Food-Oriented General Merchandise
• Describe – Wheel of Retailing – Scrambled Merchandising – Retail Life Cycle • Discuss Retail Strategy Evolution • Examine Store-Based Retail Strategies – Food-Oriented – General Merchandise
Strategy Mix Location Operating Procedures Goods/Services Offered Pricing Tactics Atmospherics Customer services Promotional methods
• Location • Operating Procedures • Goods/Services Offered • Pricing Tactics • Atmospherics • Customer Services • Promotional Methods
Establishing Destination Retailer Status Be Price-Oriented and Cost-Efficient Be Upscale Be Convenient Offer Dominant Assortment Offer Superior Customer Service Be Innovative or Exclusive Provide A Unique Way of Operating
• Be Price-Oriented and Cost-Efficient • Be Upscale • Be Convenient • Offer Dominant Assortment • Offer Superior Customer Service • Be Innovative or Exclusive • Provide A Unique Way of Operating
Wheel of Retailing Medium Strategy Moderate prices Improved Facilities High-Ended Strategy Broader Base of High Prices Value. and service. Excellent Facilities Conscious Consumers and Services Upscale Customers LOW-End Strategy Low Prices Limited Facilities and services Price Sensitive Consumers
Low-End Strategy • Low Prices • Limited Facilities and Services • Price Sensitive Consumers Medium Strategy • Moderate Prices • Improved Facilities • Broader Base of Value- and ServiceConscious Consumers High-Ended Strategy • High Prices • Excellent Facilities and Services • Upscale Customers
Retail Strategy Alternatives LOW-Ended Strategy High-Ended Strategy Low Rental location-- Side Street High Rental Shopping Center or Central Business District Location No Services or Services Charged Elaborate Services Available at Additional Fee(or Services Included in Price, Such As May Be Limited to Credit and Credit Decorating Returns Delivery Gift Wrapping Alterations Layaway Spartan Fixtures and Displays Elaborate Fixtures and Displays Simple Retail Personnel Organization Elaborate Retail Personnel Organization Price Emphasis in Promotion No Price Emphasis in Promotion Self-Service or High Sales per Store Product Demonstrations, Low Sales Personnel ratio Per Store Personnel ratio Crowded Store Interior Spacious Store Interior Most Merchandise Visible Most Merchandise in Backroom
Low-Ended Strategy High-Ended Strategy No Services or Services Charged at Additional Fee (or Services May Be Limited to Credit and Returns Elaborate Services Available Included in Price, Such As: Credit Decorating Delivery Gift Wrapping Alterations Layaway Spartan Fixtures and Displays Elaborate Fixtures and Displays Simple Retail Personnel Organization Elaborate Retail Personnel Organization Price Emphasis in Promotion No Price Emphasis in Promotion Self-Service or High Sales per Store Personnel Ratio Product Demonstrations, Low Sales Per Store Personnel Ratio Crowded Store Interior Spacious Store Interior Most Merchandise Visible Most Merchandise in Backroom Low Rental location -- Side Street High Rental Shopping Center or Central Business District Location
Merchandising Original Merchandise Mix
Original Merchandise Mix
Scrambled Merchandising oO0 e Scrambled Handbags Merchandise
Scrambled Merchandise Mix
Retail Life Cycle Accelerated Innovation Development Maturity Decline
Innovation Maturity Decline Accelerated Development
Retail Life Cycle Number of Competitors Accelerated Innovation Development Maturity Decline ery Few Moderate Many Direct Moderate Direct Moderate Indirect Many Indirect
Innovation Maturity Decline Accelerated Development Number of Competitors Very Few Very Few Moderate Many Direct Moderate Direct Moderate Indirect Many Indirect