RETAIL STRATEGIC PLANNING - PowerPoint PPT Presentation

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RETAIL STRATEGIC PLANNING

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RETAIL STRATEGIC PLANNING. W. Frank Dell II, CMC. September, 2004. DELLMART & COMPANY ... Coupons. Joint SKU. Match target consumers desires. Support strategic image ... – PowerPoint PPT presentation

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Title: RETAIL STRATEGIC PLANNING


1
RETAIL STRATEGIC PLANNING
  • W. Frank Dell II, CMC
  • September, 2004

2
AGENDA
  • INTRODUCTION
  • STRATEGY
  • TACTICS
  • OPERATIONS

3
Objectives
  • Define Retail Strategic
  • Document components and elements
  • Describe the development process
  • Identify common mistakes

4
Strategy Definition
  • A plan, method or series of maneuvers for
    obtaining a specific goal or result

5
Overview
6
Time Horizon
7
Maslow Theory
8
AGENDA
  • INTRODUCTION
  • STRATEGY
  • TACTICS
  • OPERATIONS

9
What Business?
10
Business Goals
  • Sales
  • 1 million
  • 5 million
  • 100 million
  • 1 billion
  • Geographic
  • City/Region
  • Country
  • Continent
  • World

Market
Business
Competition
11
Consumer is King
The Golden Rule He who has the Gold (consumer)
rules
12
Which Consumer?
Buyer
User/Customer
13
Define the Target Market
  • Sex
  • Age
  • Education
  • Income
  • Life Style
  • Ethnicity

14
Target Market - Sex
Household
Female
Male
15
Target Market - Age
  • Infant 1 to 3
  • Junior 3 to 8
  • Youth 8 to 12
  • Teen 12 to 19
  • Young Adult 19 to 30
  • Middle Age Adult 31 to 55
  • Senior Adult 55 to 100

16
Target Market - Education
  • No education
  • Elementary School
  • High School
  • College / University
  • Advanced Degree

17
Target Market - Income
  • Person Vs Household
  • Income
  • 2,100 Rubles per month
  • 3,500 Rubles per month
  • 7,000 Rubles per month
  • 10,500 Rubles per month
  • 14,000 Rubles per month
  • 17,500 Rubles per month
  • 17,501 Rubles per month

18
Target Market Life Style
  • Vegetarian
  • Diabetic
  • Over-weight
  • Health nut
  • Active

19
Target Market - Ethnicity
  • Geographic region
  • Race
  • Religion

20
Target Market
21
Factor in Trends
  • Aging population
  • Growing Middle Class
  • Changing Health Life Style

22
Elements Format Size
  • How many formats what size?

23
Elements - Merchandise
  • Reason for the store
  • Department / Category / Sub-Category
  • Match target customers needs wants
  • Interest secondary consumers
  • Depth and Breath of presentations
  • Brands
  • Sizes
  • Flavors / Styles

24
Elements - Merchandising
  • Role
  • Destination
  • Routine
  • Occasional / Seasonal
  • Convenience
  • Quality
  • Good
  • Better
  • Best

25
Elements - Decor
  • Fixtures
  • Lighting
  • Flooring
  • Signage

26
Elements - Services
  • Checkout
  • Cash
  • Credit Debit card
  • Sales assistance
  • Returns
  • Lay-A-Way
  • Gift Registry
  • Demonstrations
  • Sampling
  • Delivery
  • Installation
  • Education

27
Brick Vs Click
  • Positives
  • Additional Sales
  • Brand building
  • Reach larger target market
  • Lower investment
  • Negatives
  • Different business
  • Delivery
  • Divides resources

28
Operating Capital Models
  • Sales
  • Cost of Goods
  • Gross Margin
  • Labor Benefits
  • Utilities
  • Rent
  • Advertising
  • - Taxes
  • Profit
  • Site
  • Store Construction
  • Fixtures
  • Merchandise
  • Capital Cost

Payback
29
Validation
30
AGENDA
  • INTRODUCTION
  • STRATEGY
  • TACTICS
  • OPERATIONS

31
Overview
32
Advertising
Television
Radio
Magazine
Mail
Newspaper
Internet
33
Pricing
Hi Lo
Seasonal
Everyday Low Price
34
Categories
  • Traffic Building - High share, frequent purchase
  • Transaction Building - Higher price, impulse buy
  • Profit Contribution - High gross margin, turns
  • Cash Generation - High turn, frequent purchase
  • Excitement Creating Impulse, lifestyle
  • Image Creating Frequent purchase promotion
  • Turf Defending Customer draw

35
Promotions
  • Types Unlimited
  • Price off
  • Buy one get one
  • Continuity
  • Coupons
  • Joint SKU
  • Match target consumers desires
  • Support strategic image
  • Incorporate Frequent Shopper Program

36
Location, Location, Location
  • Where
  • Work
  • Live
  • Play
  • Travel mode
  • Walk
  • Drive
  • Public transportation

37
AGENDA
  • INTRODUCTION
  • STRATEGY
  • TACTICS
  • OPERATIONS

38
Introduction
  • A Strategic Plan that is or can not be executed
    is only a dream
  • Each Department must define an action plan to
    achieve the strategy

39
Human Resources
  • Attract
  • Educate and Train
  • Evaluate
  • Retain

40
Logistics
  • Inbound
  • Store Vs Warehouse Delivery
  • Method (truck, rail, water)
  • Storage Processing
  • Number warehouse by commodity
  • Location and size
  • Outbound
  • Frequency, distance, temperature

41
Information Technology
  • Hardware
  • Processing power
  • Security back up
  • Software
  • Transaction processing
  • Management control reporting
  • Analysis and planning
  • Network
  • Volume
  • Distance

42
Store Operations
  • Consistently execute customer service
  • Merchandise in-stock
  • Train for expansion

43
Commercial
  • Selection
  • Categories, Sub-Categories Items
  • Pricing Promotion
  • Inventory Turns
  • Merchandise in-stock

44
Finance Accounting
  • Manage cash
  • Maintain budgets and controls
  • Secure sufficient capital

45
Summary
46
Fatal Sins of Strategic Planning
  • Have a weekend retreat once a year to talk
    about strategy
  • Viewing Strategy as a diet
  • Develop vision, mission and/or value statements
    as fluff
  • Vision without action
  • Failing to involve all in developing an action
    plan
  • Failing to integrate planning

47
Fatal Sins of Strategic Planning
  • Conducting business as usual after strategic
    planning
  • Lacking a scorecard or measurement
  • Doing what is easy rather than what is important
  • Neglecting to benchmark against competitors
  • Failing to make tough choices

48
  • Thank You

49
  • W. Frank Dell II, CMC
  • President
  • DELLMART Company
  • 125 Hardesty Road
  • Stamford, CT 06903 USA
  • Tel 203-968-8609
  • Fax 203-968-8613
  • e-mail Frank_at_Dellmart.com
  • Web Site www.Dellmart.com
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