There are a lot of Retail Strategies that are used by Firms. The effectiveness of the retail strategies they choose to use will decide how profittable their buisness would be. Now, i will be giving the most effective retail strategy based on my understanding and i will give the top 6 strategies that i considered also important and effective.
For me, the most effective retail strategy is Retail Positioning. It includes the company's tatget market and differential advantage. As we all know, targetting allows us to tailor the marketing mix which includes product assortment, service levels, price, and promotion, to the needs of their chosen target market. Without a clear knowledge on who your target market is and where do you find them, it would be impossibl e for you to decide on what product to sell and what to do afterwards. Differential Advantage gives customer reason to shop at one store rather than at another. The customer have set an expectation when he enters your store and has a separate expectation on the other store. Retail Positioning comes from the novelty in the process of shopping offered to customers and the noveltt in the product and service offers. The way salesperson assist customer in buying product and brands, the way of the imteraction of the salesperson, the accesibiloty of the product or brand the customer is looking for, determines how satisfied the customer is with your store. When a customer has a certain product or brandin mind, the salesperson assistance and suggestions would only irritate or make the customer angry. But, if the customer has no ide or specific product/brand in mind, the customer will allow the salesperson's suggestion to influence his/her choice.
The next effective Retail Strategy for me is the Store Atmosphere or Store Layout. The interior and exterior design of the store
Should match the target market's taste and the product you are offering to them. The design should be enticing and attractive that when a customer enters the store he/she would be wanting or willing to buy your product.
The third effective retail strategy for me is the Product Assortment.
Retailer has to decide on the breadth and depth of the product and services they are offering. By expanding its product assortment, the retailer reduced price sensitivity for customers. The retailers may also use service levels as a means of differentiating his offers when the product assortment is similar to those competitors.
The next one is the Retail Location. Of course retailers wouldnt want to put up their business where there is no chanve of profit in the area and the target market is no where to be found. So it is important to choose the location of the retail stores you are going to put up.
The fifth effective strategy is the Price. It is important to put up a competition with the competitors to the point where the competitors would closely lose all their profit to you. It is important for you to reduce cost and maximize all the profit.
Last but not the least is the promotion. It is how you would want your product or store to be known in the mass or the public. Whether you would advertise it in tv or radio, publish it in the newspaper and many more ways to promote.