Developing a retail marketing strategy involves market research, product and promotional mix planning, budgeting, and evaluation. It includes identifying target markets, SWOT analysis, differentiation from competition, location, online and direct marketing, store design, and goal setting.
Developing a retail marketing strategy involves market research, product and promotional mix planning, budgeting, and evaluation. A retail marketing strategy can include a combination of brick-and-mortar stores and traffic generation or delivery online. It also includes store layouts and schematic strategies to stimulate impulse buys.
A solid retail marketing strategy starts with research that identifies your potential target market. The research will also evaluate and uncover how a company is perceived by customers. Businesses will use a special type of analytics to determine how their products compare to the competition. In the process, a firm’s strengths, weaknesses, opportunities and threats (SWOT) are identified, not only in relation to direct competition, but based on general market conditions. This SWOT analysis also includes considerations for certain legal requirements and talent acquisition strategies.
When a business identifies a potential target market, it also collects data about what that customer is looking for. The company then finds a way to position itself or differentiate itself from the competition, particularly if the range of products or services is very similar. For example, when food companies develop a retail marketing strategy, they look for certain qualities and characteristics that their company can specialize in to provide a competitive advantage. Some retail companies may emphasize the need for multiple locations for convenience, while others may achieve higher service levels.
An important aspect of any retail marketing strategy is location. In order to effectively reach the target market, store locations must be placed in neighborhoods where the demographics of the average resident meet the profile of the target customer. These demographics commonly include age, family size, education, and income levels. For example, grocery stores that emphasize a pleasant shopping experience, service, and product quality at a low daily price might find it more advantageous to locate in more affluent neighborhoods or malls.
Some retailers use the Internet and direct marketing to drive store traffic and meet customer needs. This may include the ability to purchase products online and have them delivered or picked up at a store. Part of developing a retail marketing strategy is implementing sales tactics and fulfillment methods that will appeal to customer needs while being cost-effective.
Store design and layout is another important aspect of developing a retail marketing plan. Product mix and shelf layout are typically based on consumer buying habits, preferences, and store-level sales. Sometimes referred to as schematics, product lines are organized into certain groups to draw customers’ attention to particular products and make the layout of the store visually appealing.
Strategies also involve setting goals and ways to measure whether they have been achieved. Goals are usually set for a specific time period and revised as needed. Performance is constantly monitored in order to compare actual results with the company’s objectives.
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