RETAIL MARKET STRATEGY. CHP……. O3 RETAIL MARKET STRATEGY.

What is retail strategy. A retailer strategy is a statement identifying(1) the retailer target market (2) the format the retailer plan to use to satisfy the target market.(3) the basis upon which the retailer plan to build to a sustainable competitive advantages. Strategy toward the target market. Is the market segment toward which the retailer plan to focus it resources.

Retailer format Retailer format strategy suggest the type of retailer mix(nature of merchandising and services offering) Sustainable competitive adventages,is an advantages over the competition that is not easily copied and thus can be maintain over a long period of time.

Building a sustainable competitive advantages Any legal business activities that a retailer engage for the basis for a competitive advantages. There are some important opportunity for a retailer to develop a sustainable competitive these are, Customer loyalty. Customer loyalty means that customer are committed to buying merchandising and services from a particular retailer .

(b) Brand quality Competitive advantages can also be taken to offer quality product ,most retailer which they develop private brand with his own name they focus to provide augmented brand. (c) Loyalty programs. loyalty program are the part of an overall customer relationship management

© location Location is critical for the retailer competitive advantages point of view. many retailer select location according to the availability of customer as well as according to their need . Distribution and information system competitive advantages a retailer can be taken if they provide product to different location and also taken information from different vendor as well as different location employees.

(d) Unique merchandising. Competitive advantages can also be taken by offering unique quality product. which distinguish to other competitor. such as using niche marketing concept. unique merchandising provide more benefits to retailer. Because these niche marketing customer can pay high prices to fulfill our need.

What is growth strategies. Retailer used growth strategy for the purpose of expansion of business .these strategy are, (1) Market penetration strategies. Market penetration strategies involves realizing growth by directing efforts to opening more store in the target market and keeping existing stores open for a longer hours.

(2) Retail format development A retail format development growth strategies as a strategies which a retailer develop a new retail format offering different retailer mix. (3) Diversification. Diversification strategy is one in which a retailer introduce a new retail format directed toward a market segment. It means change the location of the business. Diversification strategy either related diversification as well as unrelated diversification.

What is key factor to success retailer business. There are three important point which retailer can success our business. These are(1) Global competitive advantage (2) Adaptability.(3) financial resources. One by one we can explain it. (1) Global competitive advantage…Entry in to nondomestic market is most successful when the expansion opportunity is consistent apply it. an non domestic market retailer can take advantages when they charge low price and perform efficient business operation.

(2) Adaptability. While successful global retailer build on their core competencies, they need to recognize culture difference and adapt their core strategy to the need of the local market. For example in china white is the color of mourning and brides wear red dresses. Food his also the greatest diversity of tastes around the world.

(3) Financial resources. The third key factor which retailer can success our business is the financial resources financial resources include capital of the retailer as well as different types of assets of the retailor.financial resources can support business activities.

What is The entry strategy. Two approaches retailer used it when they enter in non domestic as well as domestic market. (1) Direct investment approach. Direct investment retailer firms invest our capital to domestic market as well as non domestic market. this strategy of entry require highest level of investment and it also involve highest risk.

(2) Joint venture A joint venture strategy a retailer used it to enter a market in invest our resources to local retailer firms. which introduce a new firms. and which ownership control and profit sharing it.