Retail and Sales

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Developing Sustainable Competitive Advantages: 1. Customer Loyalty: Customers must be committed to buying merchandise and services from a particular retailer. This can be accomplished through retail branding, positioning, and loyalty programs. A loyalty program is like a "Target card." Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer’s needs and wants outside of Target. This will entice Target to offer products that they do not have in stock. Target tracks all sales done on their cards. So, Target can track customers who use their card at other retailers and compete by providing that merchandise as well. Location: Location is a critical factor in a consumer's selection of a store. Starbucks coffee (shown here Figure 0) is an example. They will conquer one area of a city at a time and then expand in the region. They open stores close to one another to let the storefront promote the company; they do little media advertising due to their location strategy. Distribution and Information Systems: Walmart has killed this part of the retailing strategy. Retailers try to have the most effective and efficient way to get their products at a cheap price and sell them for a reasonable price. Distributing is extremely expensive and timely. Unique Merchandise: Private label brands are products developed and marketed by a retailer and available only from the retailer. For example, if you want Craftsman tools, you must go to Sears to purchase them. Vendor Relations: Developing strong relations with vendors may gain exclusive rights to sell merchandise to a specific region and receive popular merchandise in short supply. Customer Service: This takes time to establish but once it's established, it will be hard for a competitor to a develop a comparable reputation. Multiple Source Advantage: Having an advantage over multiple sources is important. For example, McDonald's is known for fast, clean, and hot food. They have cheap meals, nice facilities, and good customer service with a strong reputation for always providing fast, hot food. Analysis of environment and their Implications: Ethical Environment: *What a person thinks is right another may consider wrong. *What is ethical can vary from country to country and from industry to industry. *An ethical principle also can change over time. *Some aspects of difficult situation that the retail manager faces in environmental aspects are: *Should a retailer sell merchandise that it suspects was made using child labour. *Should a retailer advertise that its prices are lowest available in the market, even though some of the items are not. *Should a retailer accept a expensive gift from the vendor. *Should a retail sales person use high pressure sales approach Social Environment: *Includes the people’s status and their life styles. *It eliminates the harmful products and other harmful drugs. *Consumer activist, social workers, mass media, professional groups who impose restrictions on marketing process. *It also comprises of basic beliefs, values, and norms. Competitive environment: There is always a little that retailers can do to limit the entry of competitors. In fact a retailers success may encourage the entry of new firms or cause established competitors to modify their strategies to capitalize on the popularity of a successful retailer. A major increase in competition should lead a company to re-examine its strategy, including its target market and merchandise focus to ensure that it sustains a competitive edge. Economic environment: *They are beyond the control of the retailer. No matter how large it is unemployment, interest rates, inflation, tax levels, and the annual gross domestic product (GDP) are just some economic factors with which the retailers cope. In the controllable part of the strategy, the retailer needs to consider forecast about international, national, state...
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