Class Retail 2
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|''Goals & Objectives'' (interchangable terms) ''What'' the retailer wants to accomplish: Specific and measurable. Financial (profit, productivity), Societal (Employment, taxes, benefactor, consumer choice, equity), Personal, Market Performance (market share, sales volume)||''Goals & Objectives'' (interchangable terms) ''What'' the retailer wants to accomplish: Specific and measurable. Financial (profit, productivity), Societal (Employment, taxes, benefactor, consumer choice, equity), Personal, Market Performance (market share, sales volume)|
|+||[http://www.dunnhumby.com/us/about-us-what-we-do dunnhumby (p63)]|
|Strategic Profit Model:||Strategic Profit Model:|
Revision as of 14:50, 14 February 2012
Adapting resources of the firm, to environmental Opportunities and Threats. (SWOT)
Consists of: Mission > Goals & Objectives > SWOT Analysis > Strategies
Mission: simple, broad: examples. Includes, How to use resources, how to adapt to change (transport business, or train business), preservation of values Man on a Mission
Borders Failure ? Focus on buying at stores.
Goals & Objectives (interchangable terms) What the retailer wants to accomplish: Specific and measurable. Financial (profit, productivity), Societal (Employment, taxes, benefactor, consumer choice, equity), Personal, Market Performance (market share, sales volume)
Strategic Profit Model:
Net Profit Margin (Net Profit / Total Sales) x Asset Turnover (Total Sales / Total Assets)
Return on Assets (Net Profit / Total Assets) x Financial Leverage (Total Assets / Net Worth)
Return on Net Worth (Net Profit / Net Worth)
Stockouts, risk from lower inventory levels.
Productivity Objectives: Space; Labor; Merchandise
Three Broad Strategies (How the retailer plans to accomplish its goals):
1. Get shoppers in the store
2. Convert shoppers in store to customers
3. lowest cost, while maintaining customer service levels
Tactics are the details used, to execute on the strategies.
Strengths (internal), major competitive advantages, what are we good at, customer perceptions
Opportunities (external), what environmental trends benefit us, competition ?, other underdeveloped businesses
Threats (external), technology shifts ?
(Threats and opportunities can be interchanged, depending on the retailer's perspective)
Develop Strategies > product differentiation, location, sales process, after sales service
Should include: specific target market(s), location, retail mix, retailer's value proposition
Retail mix includes: merchandise, price, promotions, location, customer service levels, store layout and design
Value proposition: as it relates to your customers, what are they receiving for shopping at the store
Execute on the plan. How things are actually done. Day to day management
Customer satisfaction: focuses on the total experience, which includes customer services
Relationship between Consumer expenditure and satisfaction.
Market Segmentation: identifying customer groups with similar characteristics
Social Trends, Economic Trends and Population Trends, all impact consumer behavior.
Population Trends: growth, age, ethnic makeup, geography
Growth allows retailer growth without focus on increasing market share, store productivity, or margins.
Examine differences between Boomers, Gen Xers, and Gen Ys How do these differences impact their consumer behavior ?
How does age impact the retail experience ?
Ethnic trends, and how they are shifting. How do those shifts impact the retail environment ? Why is the hispanic population in the US growing faster than the African American population ? What are the implications ? Look at how this becomes concentrated in specific geographic areas.
Geography, also look at location of customers, how do they travel to the store etc.
Social Trends, Education, state of marriage, household makeup, work. How do each impact the retail environment ?
Economic Trends, income, savings, women in labor force (more income in household, need more convenient shopping hours), use of credit. How do each impact the retail environment ?
Disposable income versus discretionary income.
Consumer Shopping and Purchasing Model
Stimulus > Problem Recognition > Information Gathering > Evaluate Alternatives > Purchase > Post Purchase Evaluation
Degree of Consumer Problem Solving:
Retailer Preference: Strong versus Weak
Strong Brand Preference: Habitual Problem Solving; Limited Problem Solving
Weak Brand Preference: Limited Problem Solving; Extended Problem Solving