Making a strategy for the welfare of the business would be one of the basic parts of any business plan which most of us are very familiar with. As a retailer, it is must for us to design strategies that would serve as the backbone of all of the actions that the business will go to execute as the operation goes on. Retail strategy covers all of the aspects from the basic selling of goods in the market down to the most complex part that even books cannot discuss completely-consumer behaviour. Prediction is one of the most important skill that retailers must have in order for their business to be more successful. At this point in time, let us determine the necessary elements of a retail strategy. Without a strong and realistic retail strategy, there is a big possibility that your business might not perform well in the market which could cause undesirable consequences to the welfare of the company (Malik 1).
Product Selection
This only suggests that in order for the owner of the business to become successful in their operation in the market, they must have the wide range of product that they will offer to their target consumers (Ic.gc.ca 3). If one could observe, this section does not only applicable to retailing business but also to other type of businesses. There are actually two kinds of product selection; the first one would be that owner might dominate the market place through having the largest and the widest selection of product category imaginable (like Wal-Mart and other successful retail stores that currently operates in the market) and the last one would be to have the merchandise that is so unique up to the extent that people will be the one to look for you. In other words, to dominate the retailing market, it is a must for individual to determine the product line that they will display into the shelves of their store (ERA 67). There are also time wherein you have to improve and innovate your product line in order to make it more appealing to its target customers like what happened in Good Year India wherein they made the necessary improvements on their product line just to attract more customers thus increasing their sales and profits (Thehindubusinessline.com 1). Consider the case of Wal-Mart, they offer a wide range of products from clothing down to house-wares and food supplies and even offer them to various medium of distribution like over the internet [Wal-Mart online Stores], (“Product Selection for Online Business.” 1). Through this they were able to manage entertaining large number of customer everyday since they have the wide range of products that the latter needs for their daily consumption. Another point that must raised here would be, if a consumer firstly think of your store every time they need from any of your product category, then, one could say that your successful in dominating the retail industry based from Product Selection.
Convenience
It is not enough for a retailer to have only the widest product available in the market. To some extent, considering the convenience of the customers is a vital factor in successful penetration of the target market (Russel & Valencia 1). Some stores were able to get competitive advantage over their competitor through establishing their store in a strategically located position. Like for instance, the store is situated inside the city where a large number of potential customers are available for sure this store will make more profit than with those located from the outside of the city. Another factor that must be considered would be the ease of accessing the store; there are times wherein customers prefer accessible stores even if it is not offering high quality and at the same time wide category of goods. This case usually happens in busy cities where people are most of the time in a hurry and can’t afford to drive a few extra minute just to visit your store and buy their needed goods. Furthermore, the length of store hours could also affect the success of the store. There are stores who offers 24 hours of service which eventually able to entertain those people working in night shift. If your store offers more of food supplies, then, you might consider operating 24 hours a day. There are also times wherein consumers buy goods even if it is not included on their list of goods. Like for instance, even if the consumer’s first intention is to buy food supplies in the store, after seeing the new set of designer’s clothes displayed in one of the corners of the store they might also buy it even if it is not their original reason why they were inside the store. In other words, retailer must also consider offering goods that has a high possibility of attracting customers even if the latter has no intention of purchasing it in the first place. The last but not the least factor to consider under convenience would be the shopping experience that customers will derive every time they shop at your store.
Shopping Experience
Oftentimes shopping is boring and if only retailer could make the shopping experience of their customers memorable and enjoying up to the extent wherein customers will not fell any dull moment even in a split of second from the time they set their foot into the store, then, there is a possibility the said customers will surely shop again to that store (Ic.gc.ca 1). It would be better if the said customers would pass their wonderful experience to their friends and other family members through word of mouth and this for sure would improve the number of customers that are visiting to your store and so your sales and profit. There are a lot of ways to give customers with memorable experience while shopping. The store could provide recreational facilities where families could make bonding with each other; they could also establish coffee shops and other relaxing stores like spa that will relieve the stress of the customers; or the management must offer exceptional entertainment and service through well trained employees. Through the said strategies, customers will surely visit back your store and this time might bring more potential customers.
Price
This is self explanatory element of how retail store might create a strategy for their successful penetration of their target market. Consumer behaviour, most of the times, is driven by the price level of a certain good (Bergen, Davis & Rao 1). Especially during nowadays wherein most of the consumers earn less income as compared to the previous year, they tend to become more price conscious this should be consider by the management of any retail store when planning for their pricing scheme for the next period (Bernan & Evans 1). Retailers are known for offering goods that are of low price like Wal-Mart which has been loved by consumers and become successful for it offers the cheapest products in town. If possible, lower down the price of your goods in order to attract more customers since price serves to be the basis of consumer behaviour (Li, Sexton & Xia 1). The reason why Wal-Mart has been able to offer the lowest price in the market is due to the fact that they purchase goods form their suppliers in great volumes giving them the power to huddle for a discount from their suppliers that gives an avenue for them to offer it to lower prices as compared to their competitors. Wal-Mart also has strategically located distribution centers that lower down their operational costs. Having a strategically located distribution channels would help any company to lower down their operational costs (Gerth 1).
Goal Setting
Just like any other businesses operating in the market, in order to guide the management in making strategies and policies for their store, it is a must for them to identify first the goal that they want to achieve after a given time. This would give them the direction of where the store is going to and help them to structuralize their strategies and plans for the welfare of the entire company (So 4-6). Identifying the target market is included in this section as well as the profit, sales and employees of the store are discussed in here. In other words, most of the vital elements of operation of the retail store depends in this section for this gives an idea to the management as to what are the requirements in order to accept an applicant, as to how to establish their pricing scheme, as to what to prioritize on their operation and which supplier will they accept based from the goals that top managers set for the guidance of the entire store in planning and executing strategies (Wares 1).
Operational Expansion
By the time the business is going well and the economy recovers from its instability, then, it is a must for retailers to expand their operation domestically and internationally just like Wal-Mart and other top retail stores in the market (Jones 1). This assures the company of additional market to deal with and at the same time serves as the avenue for their impressive growth (Vargas 1). If the company will not dare to expand their business, they will remain stagnant and less progressive and time will come other retailers will run over them so that is why they really have to establish plans of expanding their operations to other market or increase the size of their firm to accommodate more customers (Ipsen 1).
Works Cited
- Bergen, Mark E., Davis, Scot & Rao, Akshay R. “How to Fight A Price War: Analyzing the Battleground.”
- Bernan, Barry & Evans, Joel R. “Pricing and Small Retailers: Questions to Consider.” 2002.
- Gerth, David “Unit 13: Channels of Distribution, Logistics, and Wholesaling.” 2000. Nscc.edu.
- Ipsen, Erik “Oil Firms Refine Retail Strategy.” 1 October 1993. International Gerald Tribune.