Posted in Marketing and Strategy Terms, Total Reads: 1939
Definition: Retail Strategy
Retail strategy is a holistic marketing plan for a product or a service to reach and influence the consumers. This strategy covers everything from what retail channels a product or service will be available in to what should be the price or sales incentive to be given and how to display the product in the shelf.
Retail strategy is developed for product to be distributed through retail outlets. When a product is sold through a retail outlet, a number of factors affect the sale of the product. Some of the factors as already mentioned above are:
• Pricing/discounting of the product
• Incentive structure followed
• Promotions planned
• Placing of the product
• Display attractiveness
• Incentive structure for the retailers
These are some of the major factors and is not inclusive of all. Strategizing on how to proceed in all these friends to finally influence the consumer to buy your product is the development of retail strategy.
The above mentioned factors are the controllable variables of a retail strategy as shown in the picture. Apart from planning for these a retail strategy should also take into account the uncontrollable factors like seasonality, legal restrictions, economic conditions etc. in order for the strategy to be effective.