RETAIL MANAGEMENT

Prof. Anton Bautista

Objective
To show value of Strategic
planning for all types of
retailers
To explains the steps in
Strategic Planning
To examine controllable and
uncontrollable elements

Benefits of Strategic
ProvidesPlanning
analysis of

requirements
Outlines goals
Differentiation amongst
competitors
QuickTime and a
decompressor
Know General Environment
are needed to see this picture.
Total efforts
coordinated
Crises are anticipated

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Situation Analysis
Candid evaluation
of the
opportunities and
threats
What is the firms
current status?
Which direction
should it be
heading?

QuickTime and a
decompressor
are needed to see this picture.

Situation Analysis
QuickTime and a
decompressor
are needed to see this picture.

Being guided by:

1. Organization Mission
2. Evaluating Ownership
and Management
Option
3. Outlining the goods
and service category
to be sold

QuickTime and a
decompressor
are needed to see this picture.

QuickTime and a
decompressor
are needed to see this picture.

Situation Analysis
QuickTime and a
decompressor
are needed to see this picture.

QuickTime and a
decompressor
are needed to see this picture.

Opportunities
- marketplace openings that exist
because other retailers have not
yet capitalized on them
Threats
- environmental and marketplace
factors that can affect retailers
if they do not react to them

Situation Analysis
QuickTime and a
decompressor
are needed to see this picture.

Late response = missed

opportunities
Right to be ambitious and
aggressive
Overestimating ones abilities
and prospects may be harmful

QuickTime and a
decompressor
are needed to see this picture.

Our mission is to be a
respected leader in the
food service and
hospitality industries. We
guarantee our customers
quality products that
provide real commitment
value, with
Retailers
to a
the service they expect, in
type of
business and
clean pleasant
distinctive
in the
surroundings. role
We dedicate
ourselves to sound
marketplace
management practices and
Beeffective
a leader
a follower
humanor
relations,
while returning maximum
Know your
market
scope
earnings to our
stockholders.

Organization Mission


1.
2.
3.

1.
2.
3.

Owned by 1 person
Owned
by to
2 or
more
Simple
form
Each
has financial
interest
Fully
controlled
Formally
incorporated
Share
benefits,
profits,
Operationally
flexible
Under
state
law
Risks,
costs
Easy
to and
dissolve
Funds
raise
through
Binds
all
partners
liable
Subject
to single
taxation
Acquiring
an
established
sale
of
stock
Being
entrepreneurial
Combine
independent
Whether to
operate
as:
Company
name,
etc.
Ownership
transfer
is
easy
Strategy
fully
tailored
Ownership
with
franchisor
Less
flexibility
in
Sole Proprietorship
FacesContract
more
rulings
To
thegovernment
owners
desire
on standards,
Developing
and
Partnership Royalties,
advertising
Enacting
strategies
Fees,
limit
products
Corporation
As well as whether to:
Start a new business
Buy an existing business
Become a franchisee

Ownership and
Management
Alternatives

Jaguar dealers are

luxurious auto retailers
catering to upscale
customers

Goods / Services
Category

Quic kTime and a

dec ompressor
are needed to see this pic ture.

Wendys is an eating and

The line of
business in
drinking chain famous
for its quality fast
which to operate
food, with a menu
emphasizing on burgers
To specify both a general
goods / service category
Hotel
Sogo
isniche
a hotel chain
and
a
within that
whose forte is inexpensive
rooms with few frills
category

Quic kTime and a

dec ompressor
are needed to see this pic ture.

QuickTime and a
decompressor
are needed to see this picture.

Goods / Services
Category
Personal Abilities
Depends on individual aptitude
Education and experience

Financial Resources
Financial Capacity to open and to
operate

Time Demands
Consumer patters
Off-hour and Store activities

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Retail X Objectives:
Team Members: People are our most important asset.
Our team members: (1) exhibit passion toward their
work; (2) uphold
core
values;
(3) take pride of
Sales - our
Volume
of goods
and services.
ownership
in the
long-term
of retail
X brand;
Sales
growth
as value
top
priority
The
long-run
and
short-run
performance
Expand
increase practices.
revenues
& (4)
haveoperations
ethical and
business
targets
Investment in the present to yield profit in
Customers:
Create superior brand loyalty by: (1)
1. Sales - growth,
the future
stability, and market
authentic, superior quality products; (2) legendary
share
customer service;
(3) designation
exceptional community
Profit
2. Profit - level,
return on investment,
service.
Relationship
between
company profits
and
Public includes stockholders,
consumers,
&
efficiency
investment
in capital
items
Franchisees:
create
continued
opportunity
for
suppliers,
employees
and government
Satisfaction
of publics
- stockholders
Total
Retail proven
Experience
for values
consumers
growth3.
to:
(1)
adhere
core
& systems;
relationship
with
andUnderstand
consumers
(2) exhibit
passion and
in good
running
the business;
(3)
suppliers
take
ownership
pride
4. Image
- customer
industry
Good employee
morale &
= less
absenteeism,
Shareholders:
produce
long-term
for
perceptions
better treatment
of customers,
low value
turnover
Image - represents how a retailer is perceived
rateand others
by shareholders
consumers

Objectives

Following government rules to avoid charges

Positioning - projects an image relative to
their chosen category

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

QuickTime and a
decompressor
are needed to see this picture.

QuickTime and a
decompressor
are needed to see this picture.

Quic kTime and a

dec ompressor
are needed to see this pic ture.

Identification of
Consumers
Three Techniques
1. Mass Marketing - Selling of
goods/services to a broad spectrum of
consumers
2. Concentrated Marketing - zeroing in
on one specific group
3. Differentiated Marketing - aiming at
two or more distinct consumer groups,
with different approaches per group.

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Overall Strategy

Involves two
components
1. Controllable
variables
2. Uncontrollable
variables

QuickTime and a
decompressor
are needed to see this picture.

QuickTime and a
decompressor
are needed to see this picture.

1. Store or Non-store
2. General Location and Site
3.1. Competitors,
transportation
Retail Organization
Access,
population,
typecategories
of
1.
of product
2. Number
Human
Resource
Neighborhood,
nearness to
carried
Management
Suppliers
2.
Variety
of products
carried in
(Task,
policies,
resources,
4.Authorities,
Tenancy
(rent)
a
given
category
rewards, operation
Controllable Variables
3.
Buying decisions
management
1. Store Location
4. Chooses several pricing
2. Managing atechniques
Business

Overall Strategy

1. Right
use of promotional
3. Merchandise
management
&
techniques
pricing 2. Store layouts and displays
4. Communicating with customers

Overall Strategy

Cannot alter demographic trends

Retailers success encourage
or life-style
patterns
Uncontrollable
Variables
new frims
Consumers1. Advancing rapidly
2.
Increasing efficiency
Unemployment,
interest rates,
Competition
tax levels, GDP
Technology
Timely demands, seasonality,
Economic conditions
weather
Legal environment
Seasonality

1.
2.
3.
4.
5.
6. Legal restrictions

Integrating Overall
Strategy
The Retailer has finished:
1. Analyze Situation
2. Chosen Organization Mission, ownership and
management style, Goods/service category.
3. Sensible long and short run goals set
4. Consumer market designated, its attributes
and needs studied
5. General decision been made (store location,
managing the business, merchandise
management and pricing and communication

Integrating Overall
Strategy
These elements must be
coordinated to have a
consistent, integrated
strategy and to
systematically account
for uncontrollable
variables

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Specific Activities
TACTICS:
It encompasses a retailers
daily and short-term
operations
QuickTime and a
decompressor
are needed to see this picture.

Clear
chain
command
Trading
areaofanalysis
Assortments
Appropriate
org structure
Level
of saturation
Space
allocation
Storefront
and
display
Personnel
supervision
Nearby
retailers
observed
Purchase
terms and
windows
Operating
procedures
New outlets
suppliers
negotiation
Gain
enthusiasm
adjusted
Facilities
modified
Price
alternatives
Ads at proper time
Location Adaptive
actions

Tactics

Store
Managing the business
Merchandise management and
pricing
Communicating with the
customer

Specific Activities
Building a sound strategy
Fine-tuning
QuickTime and a
decompressor
are needed to see this picture.

QuickTime and a
decompressor
are needed to see this picture.

Organizational Mission

Situation
Analysis

Ownership & management alternatives

Goods & Services Category
Sales
Profit

Objectives
F
E
E
D
B
A
C
K

Satisfaction of Publics
Image

Mass Marketing

Identification of
Consumers

Concentrated Marketing
Differentiated marketing

Overall
Strategy

Controllable Variables
Uncontrollable Variables

Specific
Activities

Daily & Short-Term operations

Responses to Environment

Control

Evaluation
Adjustment

Control
A firms strategy
and tactics should
be evaluated and
and a
revised continually QuickTime
decompressor
are needed to see this picture.
SWOT analysis
Consistency with
objectives

Feedback
QuickTime and a
decompressor
are needed to see this picture.

Signals
Positive
High sales, No problem with
government, low employee
turnover

Negative
Falling sales, government
sanctions, high turnover rate