Retail Selling Strategy Administration - Assignment Example

Retail Marketing Strategy Management and Section # of RETAIL MARKETING STRATEGY MANAGEMENT EXAM QUESTION 1: RETAIL STORE POSITIONING AND IMAGE BUILDING Introduction Brand positioning is an important factor in order to market the products and increase sales revenues. Positioning of a retail store is also very important and also it is important to know how to position a retail store in order to gain competitive advantage. Also it is important to know that hat type of an image would a retail store project for its customers in the target segment harbor and what Retail Market Strategy needs to be applied. Discussion and Analysis Positioning of a retail store is important because usually people are buying brands when they come in a particular retail store. The products are completely associated with the retail stores at which they are available. Through positioning your retail store builds a certain image of your products in the minds of the people which ultimately generates the volume of customers for your retail store. Retail stores in Singapore are extremely cosmopolitan, complex and sophisticated with nearly every international retailer present there. These retail stores usually depend on high volume of customers for generating their sales. Therefore in order to position the retail store in Singapore in order to gain competitive advantage, there is a need to focus on the market niches and increase sales through regionalization. Strategic allies can also be formed with the international retailers in order to gain competitive advantage. The type of image that a retail store would project for its customers in the target segment harbor should be such that their products and not just the brand it carries should be positioned. The image of a retail store should be that of a brand that adds value to the purchase of the shoppers. Conclusion Brand positioning is highly important for retail stores at Singapore because the competition is increasing and new competitors are arriving in the market with more efficient strategies. Therefore, in order to gain competitive advantage, brand positioning can be done by: Focusing on the market niches Regionalization The image that a retail store should build in the target segment harbor, should that be of: A brand adding value to the purchase of the shoppers so that they are willing to spend more A retail store selling products and not just the brand EXAM QUESTION 2: INTERNATIONAL CONSUMERS' MARKET IN SINGAPORE Introduction The retail marketplace at Singapore is highly saturated with a number of international players. The population of Singapore also consists of a number of tourists and foreigners as Singapore is one of the best tourism spot. Therefore the retail market for international consumers in Singapore is full of opportunities. Since the international consumers have high spending patterns, therefore, targeting this market niche can result in a number of prospective sales. Discussion and Analysis Singapore is a tourism spot for a number of international visitors. At every time in the year, you will find a considerable amount of international consumers in the country. Therefore, the market of the international consumers, if properly targeted and positioned, can generate great retail business and attract a high volume of consumers. The international consumers are usually unaware of the prices and therefore make purchases through the retail stores which they know of and which are mostly international retail stores. The Singaporean retail stores should also target the international consumers due to the increased competition and also because a large population in Singapore comprises of international consumers. The attractiveness of the market for international consumers is evident from the fact that the retail marketplace in Singapore is highly competitive with each retailer targeting specific market niches. Therefore, the market for international consumers is another market segment from which high volume of customers and large number of sales can be generated. Conclusion In a nutshell, the international consumers are an attractive market to pursue in Singapore due to the following reasons: There is a high volume of international consumers in the Singapore retail market A number of international retail brands are present in Singapore and many of them making their space in the market as Singapore has a highly enriched retail market The international consumers are generally willing to spend more than the national consumers, due to: Their buying behaviors Unawareness of the market prices EXAM QUESTION 3: HOW TO ATTRACT INTERNATIONAL CONSUMERS Introduction Since there is a volume of international consumers in Singapore who are also high spenders, it is therefore important to attract this target market. Thus, there is a need to market the retail store services for the international consumers that high volumes are attracted which will ultimately result in achieving a competitive advantage. The most important aspect that the retail stores in the saturated retail marketplace of Singapore should consider is providing better customer service. This is because all stores offer almost similar products with almost similar prices; therefore, there is a need to compete on adding value to the products and providing better customer service. Discussion and Analysis In order to attract international consumers, the retail stores need to offer value-added services to the customers, adding value to their purchases and providing the best customer service in the market. Retailers need to compete on better customer service which can be provided by hiring sales staff that not just sells products but also understands what the customer wants and assist in getting the customer what he actually wants, promoting and advertising the brand in such a way that attracts consumers and forming strategic alliances with international retailers, tourism and travel agencies in order to understand the international consumer demands. Conclusion The ways in which the retailers can provide better customer service for target markets include: Store Layout: The arrangement of the products at the retail store should be from the customers' perspective and should also be user-friendly in order to provide convenience to the customers. Tourism: Working closely with the tourism board, travel agencies and Retailer Associations. Training: The company could engage degree-holders sales personal or well trained customer services staff or by providing extensive retail services training. Promotion and Advertising: Develop a marketing programs or events such as the Great Singapore Sales etc to promote or advertise. E-tailing: Through online retail services, customers can compare the products in a couple of seconds but for the actual purchase they come to the store. Therefore, online services should be provided to facilitate the customers. Staff: Hire staff at the retail stores who are willing to help the customer buy the product that he desires EXAM QUESTION 4: FRANCHISING -ADVANTAGES AND DISADVANTAGES Introduction Franchising is becoming very common in retailing. This is because the concept of franchising is less risky. Franchises are a way to get into business swiftly, with a brand name, established processes of operation and a support structure. Franchises are ubiquitously. Familiar names include Dunkin' Donuts, KFC, McDonalds, etc to name a few. Singapore specific franchises include Giordano, 7-eleven etc. Discussion and Analysis Franchises offer both advantages as well as disadvantages. Franchising has become so common in retailing due to the fact that through franchising, you get an already built brand name. The marketing and operations simplify to a great extent and there are more volumes of customers attracted of a particular area. For example, 7-eleven has targeted a separate market through franchising and regionalization. Where it has a number of advantages, there are also demerits of franchising. There is a high initial cost associated with franchising and also monthly fixed costs are associated. The franchisor monitors the franchises and the franchises can sell only those products that it is authorized to sell. For example, the franchises of Giordano can only sell those products that they are authorized to and cannot add or delete any product based on the customer demands. Therefore it is important that a cost benefit analysis is done including a market research and forecast of customer demands, before moving on to the franchising business. Conclusion The advantages of franchises include: Brand name and recognition Less risk involved as you are starting up an established business Assistance in marketing, training, site selection and other support The disadvantages of franchises include: High initial capital investment High monthly costs Regulations on the selling of products: Franchises can only sell those products that they are authorized to sell Strict rules due to which a franchise would have to be closed down if it's not meeting the standards. The last disadvantage is also a positive aspect as this assures quality. If a franchise is not working according to the prescribed standards, its operations are abandoned. In this way quality service can be maintained throughout the franchising business. EXAM QUESTION 5: OLINE VS. PHYSICAL RETAILING -THE NEW VALUE EQUATION Introduction The retail scene is shifting. Consumers have mastered the ability of 'trading up' and are now moving into a period of value. Consumers rate 'value' as the most significant aspect in determining where they shop and how much they spend. But, what does value really mean It is extremely important to know the true essence of value and the new value equation. Discussion and Analysis Value is a lot more than just price; it's an intricate metric encircling all the retail essentials that impact consumers' perception and predisposition to purchase. Value is a blend of quality, convenience, experience and price, all multi-dimensional drivers. Therefore, retailers focusing only on price to convey value are missing and trailing out on the whole scenario. The four drivers of the value equation are quality, convenience, experience and price. In virtual retailing the quality of the online services provided, the convenience with which the consumer can browse and buy products, the experience that meets the customer requirements and the online prices of the product make up the value equation for the online retailing. Whereas, in physical retailing; the quality of the products and services, the shopping convenience offered to the customer through sales staff, the entire environment and layout of the store and the pricing of the products determine the value equation for the physical stores. Conclusion From the quality point of view, physical retailing offers more challenges to the retailers. Through online retailing, the quality of the interface and the browsing capabilities can provide quality to customer at lower costs. From the convenience point of view, customers are offered more convenience through the online services as they can easily compare products online and also make purchases. While at the physical store the convenience to the customer can be provided by assigning sales representative to each customer to facilitate his shopping experience. From the experience point of view, the layout of the entire physical store and its environment is although difficult to maintain but this is what attract customers the most. In virtual stores, value through experience can be added by designing user-friendly interfaces according to the perceptions of the customers. From the pricing point of view, the prices can be kept low at virtual stores as costs associated with the physical store, sales staff and other costs are no more. The pricing at the physical stores is usually high as the costs of operating a physical business is high. This is balanced through adding value through environment and convenience. References 1. Collins, J., (2001),"Good to Great: Why Some Companies Make the Leap... and Others Don't" Collins; 1 edition, pp. 123-132 2. Corinne Yap (1996) Retailing and the retail space market in Singapore. Volume 24, Issue 8, pg 17 - 24. International Journal of Retail & Distribution Management. MCB UP Ltd 3. Davenport, T.H., and Harris, J. G., (2007), "Competing on Analytics: The New Science of Winning", Harvard Business School Press; 1 edition, pp. 109-113 4. Gilbert, D., (2002), "Retail Marketing Management", Prentice Hall, 2nd Edition. 5. Kevin Keller (2007) Strategic Brand Management, 3rd Edition. Pearson Education 6. Levy M., Weitz, BA., (2004). Retailing Management. 5th edtion. New York: McGraw-Hill Irwin. pp. 142-149 7. McGoldrick, P., (2002),"Retail Marketing", McGraw-Hill Higher Eductaion, 2nd Edition. 8. Richard Hammond (2003) Smart Retail: How to Turn Your Store into a Sales Phenomenon. Prentice Hall 9. Rupert M. Barkoff (1997) Fundamentals of Franchising. New York: American Bar Association 10. Stanton, Emms & Sia (2006) Agri-Food Trade Service: Singapore Retail Market Update Report-May 2006. Read More