BUS620: Managerial Marketing
Prof. Adebowale Onatolu
October 31, 2011
Retail Business Analysis
“Payless ShoeSource, Inc. is the largest footwear retailer in the United States. Payless has built its success by offering a large selection of shoes at very low prices, most selling for less than $15 as of 2004” (fundinguniverse.com, N/D, para. 3). Payless ShoesSource has implemented generic and segmentation marketing strategies in order to market their products successfully. This paper will analyze how the company has implemented these strategies and will discuss how these assessed strategies could be improved to impact the successful marketing of the product. Generic Marketing Strategies
According to Mullins & Walker (2010), Robert Miles and Charles Snow identified four generic business strategies: prospectors, defenders, analyzers, and reactors. A prospector business strategy is primarily concerned with attaining growth through aggressive pursuit of new product-market opportunities. Next, an analyzer business strategy is concerned with strong core business; actively seeking to expand into related product- markets with differentiated offerings or low-cost offerings. On the other hand, a defender business strategy focuses on maintaining a differentiated or low-cost position in mature markets. Finally, a reactor business strategy has no clearly defined product-market development or competitive strategy. Payless ShoesSource’s Generic Marketing Strategy
Payless ShoeSource has implemented a defender business strategy. They have implemented this strategy because they compete in an industry where the basic technology is not very complex and where it is well developed and unlikely to change dramatically over the short term. Payless has located and maintained a secure position in a relatively stable product area and offers a limited range of products compared with its competitors. Payless ShoeSource only offers value-priced footwear...