Retail Marketing Strategy
Session 2.4
Retail Management Decision Process (Continued) and Kahn's Retailing Success Matrix
Dr. SOURABH ARORA
DEPARTMENT OF MANAGEMENT STUDIES
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Learning Objectives:
After going through this module, the learner will be able to appreciate:
▪ Various aspects of Retail Management Decision Process
▪ Kahn’s Retailing Success Matrix
Extra Fodder for Thought: “High-Tech Retail Stores”
Learning Something New: “Customer Centric Approach”
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Source: [Link]
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Extra Fodder for Thought
Hema Grocery Stores
[Link]
watch?v=UDIvWdwVZMg
Video Source: CNBC Official
YouTube Channel
Source: [Link]
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Learning Something New
Customer Centric Approach:
Creating a satisfying customer experience at each stop along the customer journey is
the goal of a customer-centric approach to company. It entails comprehending
consumer wants, preferences, and behaviour in order to design goods, services, and
marketing tactics that meet or surpass their expectations.
Source: Customer Centric Selling, Second Edition, Bosworth, Holland and Visgatis, Mc Graw hill
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Retail Management Decision Process
Source: Levy, Weitz and Pandit, Retail Management, pp. 21
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The World of Retailing
▪ Retail managers need to understand the environment in which they operate
▪ Critical Environment Factors are MICRO AND MACRO
Macro: Technological, Economic, Social, Cultural, Ethical and Political
Environment
Micro: Competitors (Intra-type competition and Scrambled merchandising) and
Customers
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Economic Factors: Factors such as inflation, recession, and unemployment
certainly impact how consumers spend, what they buy and what they don’t
buy? which in turn affects retail sales. For example, during recession, we
might see a fall in purchase of non-essential products.
Political factors: Retail enterprises may be impacted by political considerations
such as modifications to laws, taxation, and trade policy. For instance,
modifications to import and export laws may have an effect on the pricing and
supply chain of commodities.
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Social factors: Social factors such as changes in consumer preferences, lifestyle
trends, and demographics can impact retail businesses. For example, the
growing demand for eco-friendly products has led to an increase in demand for
sustainable products and retailers that sell these products.
Source: [Link]
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Source: [Link]
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Technological Factors : Technological factors such as advances in e-commerce,
mobile technology, and automation can impact retail businesses.
For example, the growth of online shopping has led to changes in the way
consumers shop and has led to increased competition for traditional brick-and-
mortar retailers.
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Source: [Link] [Link]
failed-and-how-to-avoid-the-same-fate/
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Cultural factors: Cultural factors can influence consumer behavior and thus
retailing, in terms of the types of products that customers prefer and hence
what should be kept at a retail store.
Their shopping habits, and their attitudes towards shopping will also influence
retailing. For example, in some cultures, bargaining is a common practice,
which can impact pricing strategies for retailers.
What according to you would be the assortment in a grocery store in Kerala
or in Uttarakhand or in Maharashtra?
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Intra-type competition and Scrambled Merchandising
Intra-type competition: A retailer’s primary competitors are other retailers
that use the same type of store
What's your view on this?
Competing for Time
Scrambled merchandising: When a retailer also offers those products as a part
of the assortment which lie outside their focus, like a grocery store keeping
medicines or a line of clothing etc.
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Source: [Link]
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Understanding the Modern Days Complex Shopper
Convenient and seamless
shopping experience
Personalization
Mobile-friendly options
Omnichannel experience
Value Offerings
Competitive pricing and value
Responsibility
Efficient customer service
Want More for Less
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References
▪ Retailing Management, Levy, Weitz and Pandit, Mc Graw Hill
▪ Retail Management, Vedamani, G. G, Pearson
▪ Retail Management, Nayak and Dash, Cengage
*Online links for referred materials have been provided in respective slides
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Thank You
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