Strategic Retail Planning Process: Submitted by Vaibhav Deshmukh - 62071 Prachi Parab - 62095 Rajesh Chaudhari - 62066

Strategic Retail Planning
Process
Submitted By
Vaibhav Deshmukh – 62071
Prachi Parab – 62095
Rajesh Chaudhari - 62066
Definition
 The Strategic Retail Planning Process is the set of steps

a retailer goes through to develop a strategy and plan.
 It includes how the retailers select a target market,
determine the appropriate retail format, and buisl
sustainable competitive advantages.
It includes:
 Defining the overall mission or purpose of the company
 Deciding on objectives that management wants to
achieve
 Developing a plan to achieve these objectives
The strategies will be implemented through pricing,

promotion, and physical facility plans in order to
accomplish the overall mission of the firm.
Define the business mission
 The mission of the business may be defined as the

fundamental and unique purpose that sets a business
apart from other firms of its type.
 It is a broad description of retailer’s objective and scope
of the operations in terms of product, market and
technology.
 The statement should embody the following elements-
— The basic product or the service to be offered, the primary

market or customer group to be served and the technology
to be used in production or delivery.
— The fundamental concern for the survival through sustained

growth and profitability
— The public image to be sought
— The managerial philosophy in terms of basic philosophy,

values, aspirations and philosophical priorities
— The ‘self concept’ that people affiliated should have of the

firm, which may include management style and work ethics.
Conduct a Situation Audit
 After developing a mission and setting the objective, the

next step in the strategic planning process is to conduct
a situation audit, an analysis of the opportunities and
threats in the retail environment and strengths and
weaknesses of the retail business relative to its
competitors.
 Elements in the situation analysis-
 Market factors- size, growth, seasonality, business cycles
 Competitive factors- barriers of entry, competitive rivalry and
bargaining power of vendors
 Environment factors- economic, social, technological and
regulatory
 Analysis of strengths and weakness- it indicates how well the
business can seize opportunities and avoid harm from threats in
the environment. Some issues to be considered in performing a
strength and weakness analysis
 Management capabilities
 Financial resources
 Locations
 Operations
 Merchandise
 Store management
 Customer loyalty
Identifying the strategic
opportunities
 After completing the situation audit, the next step is to

identify the opportunities for increasing sales.
 Growth strategies
 Entry strategies
Growth strategies
Market Penetration Market Development
Existing Increase number of Reach newsegments with  The vertical axis

customers existing formats indicates the synergies
Increase quantity Expand markets between the retailer’s
purchased bycustomers
Increase purchase
present retail mix and
frequency retail mix of the growth
Retail opportunities.
format
Retail Format Diversification  The horizontal axis
Development indicates the synergies
New Offer newretail formats to Develop newretail
between the retailer’s
existing customers formats targeted at new
segments present market and the
retail mix of the growth
Existing New opportunity.
Market segment
1. Market penetration
 It targets existing market segments with existing

formats, seek a differential advantage over competition
by a strong market presence that borders on saturation.
 Market penetration is often used by retailers because it
builds on the firm's existing strengths, which include
knowledge of current customers and their preferences
and the firm's familiarity with the merchandising lines.
 Such a strategy is designed to increase:
(1) the number of customers
(2) the quantity purchased by customers
(3) purchase frequency.
 Increase the number of customers
 It is one way of increasing sales and profitability. Adding
stores and modifying in-store offerings can lead to more
customers.
 The use of the retailing mix variables to ensure:
1. The lowest price lines and the lowest prices within the market
area.
2. Extensive width and depth of consumer goods such as health
and beauty aids and housewares.
3. Aggregate convenience including location, parking, hours, and
ease of purchase; features such as supermarket-like front
ends, total merchandise display, wide aisles, easy-to-see-and-
locate merchandise groups, shopping carts, and usually a
single display floor.
 Increase the quantity purchased
 Improving the store layout and merchandise presentation
can help to create an atmosphere that is conducive to more
spending.
 Encourage salespeople to cross-sell: Cross-selling involves
salespeople from one department attempting to sell
complementary merchandise from other departments to
their customers
 For example, a salesperson who has just sold a pair of dress
pants to a customer would take the customer to the shirt
and tie area to sell the customer a shirt and tie that
complements the pants.
 Increasing the frequency of custmers
 Capitalise festive seasons
 High impulse items leads to high traffic
Thank You

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Strategic Retail Planning

 The Strategic Retail Planning Process is the set of steps

The strategies will be implemented through pricing,

 The mission of the business may be defined as the

— The basic product or the service to be offered, the primary

— The fundamental concern for the survival through sustained

— The public image to be sought

— The managerial philosophy in terms of basic philosophy,

— The ‘self concept’ that people affiliated should have of the

 After developing a mission and setting the objective, the

 After completing the situation audit, the next step is to

Existing Increase number of Reach newsegments with  The vertical axis

 It targets existing market segments with existing

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