Daviss Retail Strategy - Assignment Example

The Comprehensive Case – E. A. Davis Discussion Questions Define E.A. Davis’s retail strategy (in terms of its target market, retail format, and positioning strategy). Answer E.A. Davis’s retail strategy when it comes to target market is based entirely on the need to identify specific market segment. The company specifically focused on specific market segments and those consumers are belonging to the upper socio-economic group (Sieloff 3-4).This group is particularly composed of generations of original discerning customers from first up to fourth generation. The main point of E.A. Davis’s is to cater customers of various ages starting from young children up to adult. One of the reasons why E.A. Davis is successful is due to the fact that it considers its target market applying the focus strategy in order to substantially cater the needs of its chosen target market. E.A. Davis’s retail format is one of a kind considering that it specifically created an impression for its customers through the way it serves them. In order to serve their customers in the best possible way, E.A. Davis tried to understand the competition through brand strategy, right employees handle the right customers and hands on monitoring on what brands are selling (Sieloff 3). E.A. David’s positioning strategy is clear. It specifically tried to create an image for itself as a branded clothing store (Sieloff 4). Due to this positioning strategy, E.A. Davis’s learned to rely on well-known brands that have significant impact on the lives of customers. 2. Critically evaluate E.A. Davis’s retail strategy as a single-owner department store in the face of intensive competition as described in the case. Or specifically, what are its most telling competitive advantages and disadvantages? State your assessment and give your rationale. Answer As a single-owner department store, there was a clear hands-on experience for E.A. Davis especially on being focus on what aspect to consider in the business. The first focus was on its location (Siellof 2). Clearly, the location aspect was an integral part of its success due to accessibility and proximity to other business establishments that customers are looking forward to. Location is an important aspect for the success of E.A. Davis because it directly associates to the volume of customers that it can cater. Everything will follow if the right location has been chosen and this is strongly justified in the case of E.A. Davis. E.A. Davis also tried to differentiate its customer service through its product offering and services which can be substantiated how the company greatly treated its customers (Siellof 3). Its exclusive merchandise that is creating a significant impact in the market is a great advantage of E.A. Davis. The successful product positioning of E.A. Davis is its great competitive advantage on why it gained significant recognition in the market. The disadvantage of E.A. Davis is its very basic strategy especially in the other aspects in marketing. Its current state of expansion is very slow. Its offered services and products are strongly accepted in the market due to the right location was taken into consideration (Siellof 2). This only proves that E.A. Davis is only dependent on its location for its product strategy. However, a little portion is only given to more sophisticated marketing strategies that could maximize its ability to gain more customers. E,A Davis could have done much better if good marketing strategies are integrated further in its whole system of operation. 3. Assuming the role of a consultant, what key suggestions would you give Skolnick on how to refine E.A. Davis’s strategy to stay relevant in the increasingly volatile retail environment? Give detailed answers and justify your recommendations. Answer The idea of carrying branded products is so far what makes E.A. Davis leading in the competition (Siellof 4). This is the specific area where there is a need to go for more refinement considering that it is the firm’s sustainable competitive advantage. This area can be particularly defined by adding more important product brands by understanding significant market trends. This can only be implemented through marketing research activities. In this way, customers’ needs and their trends can be maximized in full potential. This is particularly important in retail because through this, E.A. Davis will be able to display product brands that matters most to customers based on the current trend, lifestyle and all other related aspects affecting the current market needs. There is a need to enhance further customer loyalty by trying to go for more important and innovative retail strategies. One particular strategy that could further enhance customer loyalty is the inclusion of company branding strategy. This does not only promote reliable and branded products but this will emphasize further the ability of company to cater the needs of its customers by understanding what they exactly want in a market where there is a substantial pattern for customers’ need and demand. 4. Evaluate whether E.A. Davis can replicate the strategy at the Hingham location. Answer Hingham location is closed to customers belonging to the upper socio-economic group (Siellof 9). In this case, since this is the specific market segment that E.A. Davis is trying to cater in the market, there is a good chance that it can replicate its strategy into Hingham location. The absence of its target market is clearly what would make E.A. Davis to be unable to achieve the same strategy it applied particularly into a new location. It is important therefore that E.A. Davis should have necessary and sufficient data as its basis in implementing its original strategy into a new designated location. After all, it is the customers who could actually prove the success of E.A. Davis in the market. Another important consideration is the inclusion of its branded products and offerings since E.A, Davis is already known for this strategy. In this case, it is important to consider the perceived notion of brands. E.A. Davis is on the right tract to further include more brands in its offerings because this is one of the possible ways that customers will be further given enough choices. This would also help E.A. Davis further explore important brands that needed to be added on the list of its offerings. 5. Should Skolnick go ahead with the Hingham store? Why or why not? If you recommend his going, should he go with or without Lilly Pulitzer? Answer Location has been the major source of E.A. Davis’s competitive advantage and this is now a good chance to consider Hingham a suitable place for expansion due to the presence of the company’s target market segment. Personally, Skolnick should go ahead with the Hingham store because this will definitely be the start of its aggressive approach to go for expansion. This is going to be the first attempt and it is only in this way the company will be able to monitor the extent at which E.A. Davis is accepted in the market. This will just mark the beginning of an expansion strategy and everything about the original strategies of the company should be included in the plan. Furthermore, it would also be important to add more important strategies in the expansion program. To be specific, the inclusion of Lilly Pulitzer should be included in the whole plan (Siellof 5). This is also a good opportunity for Lilly Pulitzer to explore further the current trends and wants of the customers. In doing this, E.A. Davis’s effort to go for marketing research in line with monitoring customers’ needs or demand for branded products will be minimized. This is another way of saying that E.A. Davis and Lilly Pulitzer should go hand in hand in establishing the former into a new location. Reference Siellof, Susan F. E.A. Davis and Company Read More