Retail Strategy Ric Anderson

RETAIL STRATEGY
FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
AND MAKE IT WORK!

by
RIC ANDERSON

COURSE OBJECTIVES:
Understand the processes to create a Retail Strategy
with a Customer Centric Focus

Learn to analyze your business and competition from
a multi-dimensional point of view.

Refine your “Customer Value Proposition”

Use Innovation as a Competitive Advantage

Understand the power of an “Engaged Culture”

2
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!

MURPHY'S LAW OF MANAGEMENT STRATEGY
Some people manage by the book,
even though they don't know
who wrote the book
or even what book.

3
BUSINESS!

STRATEGY
THE DEFINITION OF BUSINESS STRATEGY IS:

A LONG TERM PLAN OF ACTION DESIGNED TO
ACHIEVE A PARTICULAR GOAL OR SET OF
OBJECTIVES

4
BUSINESS!

AGENDA:

Frame of Reference

Goals and Point of View

Visit the “3 Stages” of Strategy Timeline & Path

Breakdown “Stages” into Processes

Finalize and Execute

5
BUSINESS!

WHAT IS THE PURPOSE OF A BUSINESS?

6
BUSINESS!

EVERY BUSINESS HAS A “PURPOSE!
THAT PURPOSE IS TO PROVIDE
A PRODUCT OR SERVICE
WHERE THE CUSTOMER HAS

A PERCEIVED VALUE!

KEY PIECE
OF THE
PUZZLE

7
BUSINESS!

WHAT IS YOUR PURPOSE?

WHAT SANDBOX ARE YOU PLAYING IN?

8
BUSINESS!

CURRENT STATE:
Your system is perfectly designed to produce
the results that you are getting today.

LESSON:
If you want fundamentally and
substantially different results, You have
to change the strategy and methodology
of how you are doing business!

Insanity: Doing the same thing over and over again And expecting different results.
Albert Einstein

9
BUSINESS!

THE “STRATEGY” FOR A RETAIL STORE
IS A LIVING ORGANISM!

INNOVATION KEEPS IT HEALTHY!
10 BUSINESS!

ANDERSON’s 10 PILLARS: BUILDING A FOUNDATION
A 10,000 FT POINT OF VIEW

O CUSTOMER CENTRIC FOCUS

INTEGRATED STRATEGY
E MULTI-DIMENSIONAL SOLUTIONS

L COMPETITIVE & INTERNAL INTELLIGENCE

T SUPREMACY THROUGH COMPETITIVE ADVANTAGES

H ABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE AND
QUALITATIVE DATA INTO A LOGICAL CONCLUSION.
CONTINUOUS INNOVATION
A ENGAGED CULTURE

A COMMUNICATION

11
BUSINESS!

GOALS: HIGH LEVEL
Evaluate multiple “Solutions” to your Strategy.

Build a Strategy that can create growth, is profitable,
sustainable, scalable, integrated, defendable, and
has competitive supremacy.

Can easily be communicated

12 RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!

GOALS : POINT OF VIEW

 Profitable “Market Niches” Growth
 High ROI
 “Best in Class” and “Top of Mind”
 Innovative Customer Touchpoints.
 High Productivity Revenues Channels
 Flexible
 Smooth Transition
 Least Risk

RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
13

CRITICAL PATH
Predetermined set of Processes and Timelines
SEEK OUT, SURFACE AND RESOLVE

14
BUSINESS!

CRITICAL THOUGHT PROCESS

THE “CRITICAL THOUGHT PROCESS”
IS THE PATHWAY TO A SOLUTION!

15

THREE STAGES OF BUILDING STRATEGY:

1) Look, Listen, and Learn

2) Evaluate, Collaborate and Test

3) Assemble and Execute

16
BUSINESS!

STAGE I
LOOK, LISTEN AND LEARN
CHAMPION
A Senior Executive has to be given Authority:
 Gather Data & Collect Information
 Ask difficult & hard questions
 Request other’s time & assets
 Conclusion and Execution

Requirements
 Listen
 Open Mind
 Qualitative and Quantitative Skill Sets

17
BUSINESS!

MARKETPLACE
Which Marketplace?

What Products?
Value?

Channels of Revenue

WHERE AND WHAT IS YOUR SANDBOX?
18
BUSINESS!

BRAND POSITION,
CUSTOMER VALUE PROPOSITION
and
BUSINESS MODEL

BRAND POSITION

CUSTOMER VALUE
PROPOSITION
(CVP)

BUSINESS MODEL

19
BUSINESS!

FINANCIAL GOALS and DATA
Plans vs. Current State

“Work Sessions” with Finance, Merchants Operations etc.

Competitive Intelligence

Where are the opportunities?

20
BUSINESS!

PRODUCT CATEGORY REVIEW

MARKET SHARE

FINANCIAL ANALYSIS

ANALYSIS BY PRODUCT FILTERS

COMPETITIVE ADVANTAGES

21
BUSINESS!

MARKET SHARE
MARKET SHARE BY COMPETITOR
PRODUCTS Comp. 1 Comp. 2 Comp. 3 Comp. 4 Comp. 5
Women's 10.0% 8.0% 4.0% 7.0% 6.0%
Men's 4.0% 6.0% 8.0% 5.0% 4.0%
Kids 5.0% 8.0% 7.0% 5.0%
Footwear 8.0% 6.0% 7.0%
Accessories 8.0% 6.0% 5.0% 1.0% 3.0%
Intimate 6.0% 5.0% 4.0% 2.0%
Fine Jewelry 5.0%
Home 4.0% 7.0% 6.0%

22
BUSINESS!

FINANCIAL ANALYSIS SHOES 1,000,000s

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
SALES Reg $ 20 $ 25 $ 40 $ 30 $ 30 $ 30 $ 20 $ 35 $ 45 $ 40 $ 40 $ 45 $ 400
Markdown $ 30 $ 20 $ 20 $ 10 $ 15 $ 25 $ 20 $ 25 $ 30 $ 15 $ 25 $ 35 $ 270
TOTAL $ 50 $ 45 $ 60 $ 40 $ 45 $ 55 $ 40 $ 60 $ 75 $ 55 $ 65 $ 80 $ 670

GM$ Regular $ 10 $ 13 $ 20 $ 14 $ 14 $ 14 $ 10 $ 16 $ 20 $ 20 $ 19 $ 20 $ 189
Markdown $ 8 $ 3 $ 2 $ 4 $ 5 $ 8 $ 6 $ 5 $ 3 $ 5 $ 8 $ 9 $ 64
TOTAL $ 17 $ 16 $ 22 $ 18 $ 19 $ 21 $ 16 $ 21 $ 23 $ 25 $ 27 $ 29 $ 253

GM% Regular 48% 52% 50% 48% 45% 45% 48% 45% 45% 50% 48% 45% 47%
Markdown 25% 15% 10% 35% 35% 30% 30% 20% 10% 35% 30% 25% 23%
TOTAL 34% 36% 37% 45% 42% 38% 39% 35% 31% 46% 41% 36% 38%

ADDITIONAL ELEMENTS:
Inventory – Turn – ROI
Sales Sq. Ft. GM$ Sq. Ft.,
Marketing Spend
% of each element per month & year

BREAKDOWN: Women’s, Men’s, Kids, Athletic, Work

23
BUSINESS!

PRODUCT CATEGORIES FILTERS
ANALYSIS OF EACH CATEGORY

Time Period

Product to Market Channel/Path

Marketing: Product & Channel

“Purple Cow” Viewpoint

24
BUSINESS!

PRODUCT CATEGORY FILTERS: MARKET BASKET
MARKET BASKET
WOMEN MEN SHOES
TOTAL Dresses Sport Denim JR TOTAL Suiting Sport Denim YM Work TOTAL Women Kids ATH Men's Work
WOMEN TOTAL 100% 30% 60% 40% 25% 40% 10% 30% 30% 15% 5% 60% 65% 40% 30% 30% 10%
Dresses 30% 100% 40% 30% 15% 10% 8% 15% 20% 5% 1% 30% 50% 10% 7% 12% 3%
Sport 60% 40% 100% 75% 40% 40% 5% 25% 30% 15% 2% 50% 60% 20% 10% 15% 4%
Denim 40% 30% 75% 100% 25% 25% 5% 3% 30% 25% 10% 60% 60% 25% 15% 10% 5%
JR 25% 15% 40% 25% 100% 20% 1% 15% 20% 20% 1% 40% 35% 30% 25% 5% 1%
MEN TOTAL 40% 10% 40% 25% 20% 100% 40% 80% 50% 35% 50% 40% 25% 40% 30% 40% 30%
Suiting 10% 8% 5% 5% 1% 40% 100% 60% 40% 20% 20% 30% 20% 20% 20% 30% 25%
Sport 30% 15% 25% 3% 15% 80% 60% 100% 50% 30% 25% 40% 25% 35% 25% 40% 30%
Denim 30% 20% 30% 30% 20% 50% 40% 50% 100% 45% 35% 40% 15% 30% 30% 40% 35%
YM 15% 5% 15% 25% 20% 35% 20% 30% 45% 100% 10% 25% 10% 10% 25% 25% 10%
Work 5% 1% 2% 10% 1% 50% 20% 25% 35% 10% 100% 30% 8% 15% 20% 30% 80%
SHOES TOTAL 60% 30% 50% 60% 40% 40% 30% 40% 40% 25% 30% 100% 65% 40% 30% 35% 25%
Women's 65% 50% 60% 60% 35% 25% 20% 25% 15% 10% 8% 65% 100% 60% 40% 30% 30%
Kids 40% 10% 20% 25% 30% 40% 20% 35% 30% 10% 15% 40% 60% 100% 30% 45% 40%
Athletic 30% 7% 10% 15% 25% 30% 20% 25% 30% 25% 20% 30% 40% 30% 100% 50% 40%
Men's 30% 12% 15% 10% 5% 40% 30% 40% 40% 25% 30% 35% 30% 45% 50% 100% 80%
Work 10% 3% 4% 5% 1% 30% 25% 30% 35% 10% 80% 25% 30% 40% 40% 80% 100%

DEEP DIVE into multiple combinations of data

25
BUSINESS!

CUSTOMER PROFILE
KNOW AND UNDERSTAND YOUR CUSTOMER

Current Customer?
Analytics?
Population of the Market?
Filters and Segments?
Preferred Customer?
Alternative Customer?

26
BUSINESS!

CUSTOMER PURCHASING DECISION

LASER FOCUS ON THE CUSTOMER

CUSTOMER TOUCHPOINTS
Visual, Physical or Mental

27

COMPETITIVE SUPREMACY
BUSINESS WITH THE MOST INNOVATIVE
COMPETITIVE ADVANTAGES WINS!

Product

Price, Value, Quality etc.

Business Model

Customer Value Proposition

Most positive Customer Touchpoints

28

COMPETITION: Competitive Intelligence
WHO? UNDERLYING COMPETITORS?

ANALYSIS

“BEST IN CLASS”


29 BUSINESS!


 PRODUCT
 QUALITY
 BRANDS
 ASSORTMENT
 PRICE/VALUE
 EXCLUSIVE
 LOCATION
 ETC.

30
BUSINESS!

COMPETITIVE SUPREMACY
BUILDING COMPETITIVE SUPREMACY

COMP. 1 COMP. 2 COMP. 3 COMP. 4 COMP. 5
FINANCIAL
ROI
MARGIN
SALES

PRODUCT
ASSORTMENT
QUALITY
UNIQUE

BRAND POSITION
HIGH
MIDDLE
LOW

PRODUCT CHANNEL
SPEED TO MARKET
GEOGRAPHY

CUSTOMER
SERV ICE
V ALUE
ENGAGEMENT
31

COMPANY HISTORY

History: PAST vs. CURRENT
What is driving the Business?
Revenue Channels
Competition: old and new
Economic Status
Changes in Population Demographics
Technology – Innovation?
Other Elements?

32
BUSINESS!

POWER OF CULTURE
ASSETS: PEOPLE AND CULTURE

ENVIRONMENT is one of trust, engagement, learning,
communication, listening and cooperation!

LEADERSHIP is at all levels!

RESPONSIBILITY for own role!
ALL SECTORS to be utilized
ENGAGEMENT has to be total!
CONTINOUS INNOVATION is top of mind in all sectors!

33 BUSINESS!

INTERNAL INTELLIGENCE
ANSWERS ARE WITHIN THE ORGANIZATION
SOLUTIONS TO SURFACE IS THE ISSUE.
CROSS FUNCTIONAL SUPPORT GROUPS
INTERVIEWS: INDIVIDUAL AND GROUP
INTEGRATED STRATEGY

34 RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!

REVENUE CHANNELS:
WHICH ONES FIT YOUR STRATEGY?
STORES CATALOG INTERNET

B2B WHOLESALE TV

35 BUSINESS!

MARKETING
CUSTOMER REACHED?

MARKETING CHANNELS?

CHANNELS BEST REFLECT
THE BRAND?

EFFECTIVENESS BY CHANNEL?

REACH NEW CUSTOMERS?

INNOVATIVE TESTS

SOCIAL MEDIA
36

VENDOR COMMUNITY
MOST UNDERUTILIZED ASSET

Vendor Conference
 Products
 Marketing
 Logistics
 Customer Experience
 Competition
 Innovative Solutions
 Invite Cross-Functional Support members

37

STAGE II:
EVALUATE, COLLABORATE, AND
TEST
USE OF MULTIPLE SOURCES

UNDERSTAND OPTIONS

ALTERNATIVE SOLUTIONS

QUANTIFIABLE TESTS

INTEGRATED STRATEGY
38

COLLABORATE
TEAM PROJECT

MERCHANDISING

STORES

CHANNELS

CROSS FUNCTIONAL

SENIOR TEAM MEMBERS

TRUSTED VENDORS

39

STAGE III:
ASSEMBLE AND EXECUTE
REQUIRES THE SKILL OF SYNTHESIS

CREATE STRATEGY
GATHER DATA
ALIGN SOLUTIONS
INTEGRATE ALL ELEMENTS

CROSS FUNCTIONAL SENIOR TEAM
SUMMARIZE
DISCUSSION
HOT BUTTONS
COLLABORATION

40

LITMUS TEST
BRAND, CVP, BUSINESS MODEL IN SYNC
PURPLE COW
INNOVATIVE COMPETITIVE ADVANTAGES
PROFITABLE
SUSTAINABLE
DEFENDABLE
SCALABLE
INTERNAL ALIGNMENT
SUPPORT FROM INDUSTRY
41

PHASE III: Assemble and Execute
FINAL STRATEGY:
The Core Senior Team makes the final decision.

TASK: Incorporate as many of the goals
from the review as possible into a seamless
comprehensive and a collaborative Strategy.

CONGRATULATIONS!
You have completed 90% of the Goal.

42

COMMUNICATION
SUCCESS TIED DIRECTLY TO COMMUNICATION

DISSEMINATE

ACKNOWLEDGEMENT

ANTICIPATE ISSUES

CHANGE MANAGEMENT

43

SUMMARY

A STRATEGIC PROCESS THAT CAN BE USED BY
THE ENTIRE ORGANIZATION. EVERYONE HAS
CONTRIBUTED, TAKES OWNERSHIP, UNDERSTANDS
AND CAN EASILY ARTICULATE TO OTHERS.

44

Do not repeat the tactics which have
gained you one victory, but let your
methods be regulated by the infinite
variety of circumstances
Sun Tzu c. 490 BC, Chinese military strategist

45

Retail Strategy Ric Anderson

Recomendados

Recomendados

Más contenido relacionado

Similar a Retail Strategy Ric Anderson

Similar a Retail Strategy Ric Anderson (20)

Más de ricaaa1

Más de ricaaa1 (6)

Retail Strategy Ric Anderson