Presentation on theme: "By: Megan, Shayla & Angela. Final element in a retail strategy Retailer builds a wall around its position in a retail market By building a high thick."— Presentation transcript:
Final element in a retail strategy Retailer builds a wall around its position in a retail market By building a high thick wall retailers sustain their advantage, minimize competitive pressures, and boost profits for a longer time Sustainable Competitive Advantage is the key to positive long-term financial performance
Customer Loyalty Location Human Resource Management Distribution and Information Systems Unique merchandise Vendor Relations Customer Service
Customers are committed to buying merchandise and services from a particular retailer. Having customer loyalty is an important method of sustaining an advantage over competitors Ways to build loyalty Develop a strong brand image Develop a clear and precise positioning strategy Create an attachment with customers through loyalty programs Less Sustainable Habitual repeat purchasing Repeat purchases because of limited competition in the local area More Sustainable Building a brand image with an emotional connection with customers Uses a database to develop and utilize a deeper understanding of customers
Location is the critical factor in consumers’ selection of a store More Sustainable Convenient locations Example: Once Walgreens has put a store at the best location at an intersection, CVS is relegated to the second best location. People are more likely to shop by where they live and by what is more convenient for them.
Successful companies know that to be successful you must have a strong employee base because they play a major role in providing services for customers and building customer loyalty. Knowledgeable and skilled employees committed to the retailers objectives are critical assets that support the success of many companies Less Sustainable More employees More Sustainable Committed Knowledgeable employees
The use of sophisticated distribution and information systems offers opportunity for retailers to achieve efficiencies. Less Sustainable Bigger warehouses Automated warehouses More Sustainable Shared systems with vendors
Less Sustainable More merchandise Greater assortment Lower price Higher advertising budgets More sales promotions More Sustainable Exclusive merchandise Private Label Brands (store brands) Products developed and marketed by a retailer and available only from that retailer
Less Sustainable Repeat purchases from vendor due to limited alternatives More Sustainable Coordination of procurement efforts Ability to get scarce merchandise Develop strong relations with vendors, retailers may gain exclusive rights to 1. Sell merchandise in a specific region 2. Obtain special terms of purchase that are not available to competitors who lack such relationships 3. Receive popular merchandise in short supply Retailer and vendor relationships are developed over a long period of time
Less Sustainable Hours of operation More Sustainable Knowledgeable and helpful salespeople Excellent customer service Hard to build a good customer service reputation Takes considerable time and effort with customers
Retailers typically do not rely on a single approach, such as low cost or excellent service They need multiple approaches to build as high a wall around their position as possible. Good value Good customer service Brand name Great locations
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