MARCHANDISING STRAGET A SNAP SHOT Merchandising strategy is all about targeting the right people with right merchandise at the right time at right place. 6/28/2011

ORIGIN OF STRATEGY Greece STRATEGIESTRATEGY The word “ STRATEGY” comes from ancient Greece. A “STRATEGOS” was an army general, and his post was a “STRATEGIA”.Over times it means a craft of generalship instead of just the job. The word spread to French as “STRATEGIE” and evolve as STRATEGY in 1810.The term has to do with stratagems by which a general sought to deceive his enemy. Today this kind of similar war is apparent in consumer market place. If one replace the concept of troops in the military with the concept of resources within the organization, the concept of strategy begins to take shape. In business as in the military strategy bridge the gap between ends & means.

WHAT IS STRATEGY....?????? A STRATEGY DEFINES A COMPANY’S POSITION TO OPTIMIZE PROFIT BACKED BY A MODEL OF SUCESSFUL OPERATION.

COMPONENT DIRECTION Where is the business trying to get to in the long- term…..(DIRECTION) Which markets should a business compete in and what kind of activities are involved in such markets?.... (MARKET SCOPE) How can the business perform better than the competition in those markets?..... (ADVANTAGE) What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete… ( RESOURCE ) What external, environmental factors affect the businesses' ability to compete….( ENVIORMENT ) STAKEHOLDERS What are the values and expectations of those who have power in and around the business… (STAKEHOLDERS)

TYPE Vs PROFILE LEVEL Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. Corporate strategy is often stated explicitly in a "mission statement. Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. Products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. Operational Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. ONUS SENIOR MANAGEMENT MEDIL LEVEL MANAGEMENT LOWER LEVEL MANAGEMENT

How Strategy is Managed - Strategic Management FORMATION FORMATION STRATEGIC ANALYSIS STRATEGIC IMPLEMENTATION STRATEGIC CHOICE

BUSINESS STRATEGY FLOW OF RETAIL STRATEGY DIRECTION Where is the business trying to get to in the long-term…..(DIRECTION) Which markets should a business compete in and what kind of activities are involved in such markets?.... (MARKET SCOPE) How can the business perform better than the competition in those markets?..... (ADVANTAGE) What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete… ( RESOURCE ) What external, environmental factors affect the businesses' ability to compete….( ENVIORMENT ) STAKEHOLDERS What are the values and expectations of those who have power in and around the business… (STAKEHOLDERS) PRODDUCT TO BE SOURCE MERCHANDISING STRATEGY PRICE TERM & CONDITION OF VENDORS METHOD OF PACKAGING

DESCRIPTION A CLEAR AND DEFINITE PLAN THAT THE RETAILER OUTLINES TO TAP THE MARKET & BUILD A LONG TERM RELATIONSHIP TO THE CUSTOMERS. IT IS THE FUNDAMENTAL TO THE EXISTANCE OF RETAIL ORGANISATION. THE ELEMENTRY RETAIL STRATEGIES ARE…… STORE LOCATION MERCHANDISING A) STORE LOCATION B) MERCHANDISING PRICINGMARKETING C) PRICING D) MARKETING

STEPS ESTABLISH MISSION ESTABLISH MISSION ANALYSE SITUATION ANALYSE SITUATION IDENTIFY OPTIONS IDENTIFY OPTIONS SET OBJECTIVES SET OBJECTIVES OBTAIN & ALLOCATE RESOURCES OBTAIN & ALLOCATE RESOURCES DEVELOP IMPLEMENTATION PLAN DEVELOP IMPLEMENTATION PLAN MONITOR PROGRESS & CONTROL MONITOR PROGRESS & CONTROL

CHOICE & IMPLEMENTATION ANALYSIS PEST Analysis Scenario Planning Five Forces Analysis Market Segmentation Directional Policy Matrix Competitor Analysis Critical Success Factor Analysis SWOT Analysis CHOICE & IMPLEMENTATION Strategic Choice This process involves understanding the nature of stakeholder expectations (the "ground rules"), identifying strategic options, and then evaluating and selecting strategic options Strategy Implementation Often the hardest part. When a strategy has been analyzed and selected, the task is then to translate it into organizational action

IDENTIFY OPTIONS Ansoff’s Matrix focus on present, potential in the existing and emerging markets…. MARKET PENETRATION MARKET PENETRATION MARKET DEVELOPMENT MARKET DEVELOPMENT RETAIL FORMAT DEVELOPMENT RETAIL FORMAT DEVELOPMENT DIVERSIFICATION

OBJECTIVE SALES VOLUME TARGET SALES VOLUME TARGET MARKET SHARE TARGETS MARKET SHARE TARGETS RETAIL EXPANSION TARGETS RETAIL EXPANSION TARGETS PROFITABILITY TO BE ACHIEVED PROFITABILITY TO BE ACHIEVED LIQUIDITY LIQUIDITY ROI ROI

IMPLEMENTATION,EVALUATION & CONTROL DEVELOP THE STRATEGIC PLAN MEASURABLE ACCESSIBLE ECONOMICALLY VIABLE STABLE

CASE STUDY ALIGNMENT OF ITS MARCHANTS WITH KEY PRODUCT AREAs EACH WITH IDENTIFIED CUSTOMERS SEGMENTS. FOCUSED ON FIVE DIVISION… GROCERY,ENTERTAINMENT,APPARELS & HOME…… REPORTS TO FLEMING. PHARMACY & OPTICAL REPORTS TO BILL SIMON THREE –YEAR PLAN TO INCRESE THE COMPANY’S SALES AND PROFITABILITY.THIS PLAN HAS MORE FOCUSE ON BECOMING MORE RELEVENT TO CUSTOMERS DIVERSE SEGMENTS.RESEARCH TO DETERMINE CUSTOMER NEED AND IMPLEMENTATED A FIELD ORGANIZATIONAL STRUCTURE TO FACILITATE NEW MERCHANDISING INITIATIVES.