Retail Business Analysis - Research Paper Example

? Retail Business Analysis Task: Retail Business Analysis Generic marketing strategies encompass planning methodologies, which an entity utilizes to enhance performance. Such a strategy is evident in an organization focusing on attaining a viable advantage (Pizam, 2010). Market segmentation strategy is the grouping of consumers with similar needs that an organization can satisfy by tailoring the elements of the marketing mix. Segmentation strategy advances the profit margins thus obtaining an admirable market divide. When markets are declining and the differentiation is at the premium, segmentation can show the disparity separating accomplishment and failure (Weinstein, 2004). A retail establishment that implemented generic marketing and segmentation approaches is a Reebok store. Implementation of segmentation strategy The retail implemented the strategy by separating a big probable market into minor groups, which exude diverse retail needs. The retail started by categorizing their market thus stating the general boundaries of market they intended to segment. This is achievable at the product progress stage. As such, one needs to find information about the intended target. Later on, they established market segmentation drivers for every product, which is achievable basing on age. Furthermore, other determinants incorporate expenditure, likeability of other merchandise, demographic facts, and imbursement methods. After successfully doing that, they chose a critical strategy that defines major segments. In the last stage of the implementation, they prioritized basing on the resources that they could dedicate to their marketing effort and the likely outcome of addressing each segment (Weinstein, 2004). Implementation of Generic market strategy The retailers implemented the strategy by identifying its strengths and weaknesses, uniqueness, advantage, and usual tendencies. After identifying themselves, the organization identified their customers by finding information about them. The organization could not make an assumption about each customer groups, so they had to know their market better than their competitors did. For them to acknowledge their customers, they had to talk and listen to them. By presenting questions to customers, they could find vital information like the reasons attributable to the non-utilization of their products. Moreover, they convinced their consumers to start buying their merchandise (Pizam, 2010). Additionally, they used a present-day date base system to get a relatively cheap and competent marketing tool. This system could record customers’ behaviors and expectations. The information acquired from the system was instrumental in decision-making. In marketing, the amount of sales made is not necessary. However, the important aspect is the profit figure. This is because, in marketing, decisions derive their basis on profit and not on the amount of sales, which is significantly minor. For the organization to respond properly to its marketplace, it linked the customer database with other market information system and business brainpower system (Pizam, 2010). Another implementation step that the retailer employed was the application of differentiation. This enabled them to proffer remarkable benefits to their customers. Applying differentiation enabled them to know the values of their customers so that they could appeal to these values in an effective way than competitors. By differentiation, it is easier to identify their potency and the weaknesses of their rivals. They then developed a clear image of each segment (Pizam, 2010). During the implementation, the Reebok stores avoided to compete with its products in the same segment. The entity was clear in defining its own role and tried to cover all bases to discourage potential competitors. It therefore, built a good correlation with its consumers, while trying to avoid dependence on one customer or any product (Pizam, 2010). Improving implementation of segmented marketing For effective implementations of segmentation approach, the organization should concentrate on the segments instead of the products. If they fail to do this, they cannot attain their goals. Stable segments are the ones that can provide the underlying basis for development of a successful marketing strategy. If the segments to which certain marketing effort is targeted transform their composition or behavior during its implementation, the effort is unlikely to succeed. Companies should focus their organization around clienteles and processes. For example, they should focus on product development, upon comparison to products. They should use a system where they focus on major segments rather than personalized products. While implementing the strategy the organization should consider internal compatibility because it is a criterion, which is used to asses the appropriateness of a final segment (Wedel & Kamakura, 2000). Their marketing unit can operate under the new segment structure on their own thus developing marketing programs accordingly. This is a strategy called effectual segmentation because it has a high level of both customer focus and organizational integration. Moreover, the organization personal segmentation is important because it can win the support and interest of employees thus encouraging them to change any formerly entrenched ways. When conducting an assessment, the organization should focus on materials, examination, expansion, manufacturing, promotion of services. The strategy of an organization requires inventiveness, customer management, operation and regulatory processes to implement (Wedel & Kamakura, 2000). Improving the Implementing of generic market strategy In addition to the methods, Reebok store should find out why people use their competitor’s good and not theirs. They should then consider initiating new merchandise and services, which may magnetize customers who buy from their competitors. Additionally, the organization should consider the cost of implementation. It should select a low cost strategy, which is efficient. An organization, which uses a low cost strategy, should also ensure that its customers understand its strategic position. Furthermore, the price-conscious segment in the market recognizes the price as competitive thus demanding the products. Conclusion For an organization to implement a market strategy properly, it should first identify its competitors. They should then make comparisons of their competitors’ distinctiveness and performance. A company should implement the strategies by identifying its strength and limitations, uniqueness, advantage and customary characteristics. It is important to attract many customers in an organization to achieve profitability. Flourishing expansion strategies depend on building market assets. These assets include processes that provide the knowledge base to recognize opportunities. They also include brands, which the customers value. Loyal customers are assets to an organization since they facilitate growth. The generic market and segmentation strategies are tools that help retain and attract new customers when implemented well. References Pizam, A. (2010). International Encyclopedia of Hospitality Management. Oxford, OX: Butterworth- Heinemann. Wedel, M., Kamakura, Wagner, A. (2000). Market segmentation: conceptual and methodological foundations. New York, NY. Springer. Weinstein, A. (2004). Handbook of market segmentation: strategic targeting for business and technology firms. New York, NY: Routledge. Read More