3-1,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,1,Chapter 3,Strategic Planning in Retailing,1,RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th EditionBERMAN EVANS,3-2,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,2,Chapter Objectives,To show the value of strategic planning for all types of retailers To explain the steps in strategic planning for retailers: situation analysis, objectives, identification of consumers, overall strategy, specific activities, control, and feedback,2,3-3,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,3,Chapter Objectives (cont.),To examine the individual elements of a retail strategy (both controllable and uncontrollable), and to present strategic planning as a series of integrated steps To demonstrate how a strategic plan can be prepared,3,3-4,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,4,Retail Strategy,The overall plan or framework of action that guides a retailer One year in duration Outlines mission, goals, consumer market, overall and specific activities, and control mechanisms,4,3-5,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,5,Figure 3-1: Elements of a Retail Strategy,5,3-6,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,6,Benefits of Strategic Retail Planning,Provides thorough analysis of the requirements for doing business for different types of retailers Outlines retailer goals Allows retailer to determine how to differentiate itself from competitors Allows retailer to develop an offering that appeals to a group of customers Offers an analysis of the legal, economic, and competitive environment Provides for the coordination of firms total efforts Encourages anticipation and avoidance of crises,3-7,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,7,Organizational Mission,Retailers commitment to a type of business and to a distinctive role in the marketplace.,7,3-8,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,8,Figure 3-2: The Focused Organizational Mission of Frischs Restaurants,8,3-9,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,9,Ownership and Management Alternatives,Sole proprietorship is an unincorporated retail firm owned by one person A partnership is an unincorporated retail firm owned by two or more persons, each with a financial interest A corporation is a retail firm that is formally incorporated under state law; it is a legal entity apart from its officers,9,3-10,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,10,Figure 3-3: Checklist to Consider When Starting a New Business,10,3-11,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,11,Figure 3-4: Checklist for Purchasing an Existing Retail Business,11,3-12,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,12,Figure 3-5a: Selected Kinds of Retail Goods and Service Establishments,Durable Goods Stores: Automotive group Furniture and appliances group Lumber, building, and hardware group Jewelry stores,Nondurable Goods Stores: Apparel group Food group General merchandise group Gasoline service stations,12,3-13,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,13,Figure 3-5b: Selected Kinds of Retail Goods and Service Establishments,Service Establishments (Personal): Laundry and dry cleaning Beauty/barber shops Funeral services Health-care services,Service Establishments (Amusement): Movie theaters Bowling alleys Dance halls Golf courses,13,3-14,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,14,Figure 3-5c: Selected Kinds of Retail Goods and Service Establishments,Service Establishments (Repair): Automobile repair Car washes Consumer electronics repair Appliance repairs,Service Establishments (Hotel): Hotels Motels Trailer parks Camps,14,3-15,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,15,Image and Positioning,An image represents how a given retailer is perceived by consumers and others.,15,3-16,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,16,Positioning Approaches,Mass merchandising is a positioning approach whereby retailers offer a discount or value-oriented image, a wide or deep merchandise selection, and large store facilities. Niche retailing occurs when retailers identify specific customer segments and deploy unique strategies to address the desires of those segments rather than the mass market.,16,3-17,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,17,Figure 3-6: Niche Retailing by Babies “R” Us,17,3-18,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,18,Figure 3-7: Selected Retail Positioning Strategies,18,3-19,Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall,