CHAPTER 3: RETAIL INSTITUTION BY STORE BASED STRATEGY MIXED

Hi,

For chapter 3 are more focused to offline retailers. This chapter might be interesting because offline retailers are traditional market. So, happy reading peeps.

Strategy is fundamental to the success and sustainability of any organization. There are some strategy that affecting retailing such as store location, operating procedures, services offered, pricing tactics, store atmosphere, customer services and promotional methods.

Picture above shows the wheel of retailing. Some lessons that I learn from this wheel retailing is don’t lose sight of your prime costumer’s price consciousness.  Besides, beware of the dangers in upgrading target markets such as old segment gets “sticker shock” and new segment does not accept retailer’s revised positioning. Next, do not opening for new co-conscious retailer to emerge .I also learn to not employ customer benefit costing weigh the cost and benefits of specific service upgrades. Lastly, use unbundled pricing to separately charge for select services such as delivery and installation.

There are methods of cost containment like standardizing procedures, store layouts, store size, and product offerings. Example: centralized buying. By using secondary use locations that  includes existing store fixtures, storefronts and carpeting , placing stores in smaller communities and using inexpensive construction materials also can controlling the cost. Also, you should use plain fixtures and displays or reusing fixtures from closed stores to cut the cases. Besides, you can join cooperative buying and advertising programs like increased use of the Web versus traditional advertising and catalogs. Self-service operations such as increased use of part-time personnel help a lot too. Lastly, you can reduce product proliferation.

Why there’s scrambled merchandise? Because this is desire for one stop shopping format .It’s concern to adopt “hot” products to increase store traffic. Besides, looking to increase store sales per square foot and some store sales especially in a recessionary period.

There are four phase in retailing life cycle. Starting with introduction .Followed by growth and maturity and ended up with decline.

As the conclusion of this chapter are we had learned the wheel of retailing which shows of price consciousness and methods of cost containment.

Finish of chapter 3, I will meet you guys on next chapter!!!