retail info sys-33

8/7/2019 retail info sys-33

1/33

An Overview of the

Retail Planning andManagement

Process


2/33

3-2

The only constant in the

universe is change!

Dr. J.R. (Doc) Ogden


3/33

3-3

Importance of Planning

Planning the establishment of

objectives, policies, and procedure to

carry out goals.

Provides direction for expenditures

Provides opportunity for integration

Assists decision makers in planning for

specialized areas


4/33

3-4

Mission Statement

If you dont know where you are

goingyou wont get there

Mission statement that describes

business purpose

Why are we in business?

What do we do?

The starting point for retailers thatspeaks of its commitment to customers,

employees, shareholders, and society


5/33

3-5

Mission Statement (contd)

Guides retailer through good and bad

times

Must be known and valued by all

employees

Should be reviewed and updated on a

regular basis


6/33

3-6

Figure 3.1:

Examples ofActual Mission

Statements

Sources: Courtesy of the Procter & Gamble

Company; Courtesy of Ben & Jerrys;

Courtesy ofStarbucks.


7/33

3-7

Vision Statement

Evolves from mission statement butfocuses on future goals

A good vision statement contains

A statement of a desired future for theretailer

A reminder to the retailer of "why we dowhat we do

Values for the retailer to live by Enough information to serve as a

touchstone for making the hard decisionson retail policy


8/33

3-8

Vision Statement Benefits

Promotes alignment of everyone in the

organization

Encourages inspiration and motivation

for employees and stakeholders

Serves as an articulation of retailer

values


9/33

3-9

Retail (Corporate) Objectives

Retail objectives goals that state what

will be accomplished within a given time

period

Mission and vision statements provideguidance in developing these objectives

Objectives should be

Measurable/quantifiable

Realistic

Deadline oriented


10/33

3-10

Examples of Objectives

Bad

To increase sales

To increase publicity

To increase profits by

10%

Good

To increase sales of Xproduct by X amountwithin x time frame.

To increase publicity asmeasure by xpublications by x% in xtime frame.

To increase profits of xby 10% within x timeframe.


11/33

3-11

Situational Analysis

Assessment of the retail environment

Provides:

The history of the retailer

The current position in the marketplace

The product and sales history

Target market information

Involves environmental scanning


12/33

3-12

Figure 3.3: Environmental Scanning


13/33

3-13

Steps in Environmental Scanning

Identify all relevant environments.

Look for relevant changes in theseenvironments.

Understand and evaluate these changes interms of their nature, direction, and

magnitude.

Analyze and forecast the impact and timing ofthe changes; assess the potentialconsequences of the changes.

Create responses to the environmentalchanges through changes in strategy.


14/33

3-14

Where to Look for Environmental

Changes

Secondary data sources

Newspapers

Magazines

Trade journals Conferences

Trade shows

The Internet

Primary Sources Employees

Stockholders

Research


15/33

3-15

Retail Strategy

Provides a framework for current and

future actions

Dictates how objectives will be achieved

Vital Characteristics

Integration is essential

Must be dynamic

Requires strategic thinking

Stems from a desire to create and control

the future


16/33

3-16

Strategic Planning

Tends to be a year in length but can be

prepared for any length of time

Should be reviewed and revised

regularly

Composed of controllable and

uncontrollable variables


17/33


18/33

3-18

Collecting Data


19/33

3-19

Target Marketing

Target market individuals to whom the

retailers plans to aim marketing efforts

After target market is selected, the

retailer decides whether to go afterentire market or to segment the target

market

Segmentation the process of breakingup the target market into smaller

subgroups


20/33

3-20

Target Marketing Approaches

Mass marketing approach

Retailer uses the marketing mix to capture

the entire market

Segmented approach Retailer breaks up the market into

submarkets (segments) and then develops

a unique marketing mix for each segment


21/33

3-21

Useful Target Markets

Characteristics

The ability to purchase the product or

service from the retailer

The willingness to buy the product orservice

A sufficient number of people in the market

to generate profits


22/33

3-22

Understanding Consumer Behavior

Must understand target market behavior

Understanding behavior assist in

developing a marketing mix that will

meet or exceed expectations whilemaking the firm a profit (marketing /

extended marketing concept)

Develop a typical customer profile Describes the target market


23/33

3-23

Market and Location Selection

Involves decisions on market and

physical location as well as channels of

distribution

Decisions include Number of stores

Channels

Brick and mortar Internet

Combination (bricks and clicks)


24/33

3-24

Financial Operations Management

Includes

Preparing financial statements

Resource allocation (budgeting)

Asset management

Payment of bills and collection of accounts

receivable

Financing operations Must be integrated with other areas


25/33

3-25

Merchandise Buying and Handling

Overlaps with other areas such as finance,

pricing, and product management

Consistency with other areas is important,

including Decisions related to logistics and supply chain

management

Decisions on which suppliers to buy from

How much and what types of products topurchase

Stocking and marking products


26/33

3-26

Human Resource Management

Must make sure employees are

Hired/fired

Properly trained

Working toward same overall goals

Experiencing job satisfaction

Achieving objectives


27/33

3-27

Retail Tactics

Tactical executions the day-to-daytasks that implement the retail plans

Includes

Pricing Integrated Marketing Communication (IMC)

CustomerService

Can be used to differentiate retailers

Must be consistent with other areas

Must develop objectives and strategyfor each area


28/33

3-28

Pricing

Pricing Policy establishes

the direction of retail pricing

and how pricing objectives will

be met Typically based on

Sales

Profits Return on investment (ROI)


29/33

3-29

Developing Price

Develop objectives consistent with

mission/vision and overall corporate

objectives

Develop pricing policy based on pricingobjectives

Develop overall pricing strategy


30/33

3-30

Integrated Marketing Communication

(IMC)

IMC comprised of all the firms

communication variables

Includes

Public relations and publicity

Direct marketing

Cybermarketing

Personal Selling Sales Promotion

Advertising


31/33

3-31

Customer Services

Anything a retailer provides in addition

to the core product or service

Helps to maintain a high level of

customer satisfaction


32/33

3-32

Laws and Ethics

Laws a rule established by authority,

society, or custom

Ethics - concepts of right and wrong

behavior

Should guide all retail planning and

includes codes of ethics adopted by

many organizations and industries


33/33

3-33

Evaluation and Control

Evaluation continuous monitoring of

the retail plan to make sure it is

performing up to expectations

Examines whether or not objectiveshave been achieved

Develops alternative course of actions

to maintain desired market position(contingency plans)

retail info sys-33

Documents