subject: Retail Strategy in India-III (Store Positioning Strategy) [print this page] Author: Jethendra
Store positioning strategy Retail positioning is the fight for a place in the consumers mind. Different retailers work to secure a place in the mind of the target consumer. Retailers need to create an image in the consumers mind relative to their competitors so that consumers shop at their retail shop. Positioning has to be more specific to create an impression on the consumers mind. The strategies followed needs to be well defined whether a retail store is a specialised store or a general store. For example, consider three stores: 1. A supermarket which includes footwear department 2. A store specially dedicated to footwear 3. A store specially dedicated to womens footwear In this situation, the positioning of retailer in consumers mind drives them to the store. Women/men looking for footwear along with their monthly general household needs will opt for the supermarket. The second scenario attracts both men and women who are on look out for footwear only. The third scenario attracts only women looking for footwear. Consider another example of three different stores selling apparels: 1. A retail store selling high price high quality apparels 2. A retail store selling med price medium quality apparels 3. A retail store selling low price low quality apparels Here, a woman/man looking out for apparels for an occasion or a festival might tend to opt for the first scenario. The second scenario might attract a woman/man who is looking out for normal wear and which is also durable for some period of time. The third scenario might attract a woman/man who does not want to spend too much money on clothes. If retailers follow strategies which are defined clearly in positioning the store then it would improve in driving traffic more towards the store. Many strategies on quality, cost and shopping experience of customer can be designed specifically to create an image and position itself in target customers mind. These tactics can be measured, quantified and can be integrated into analytical model. The models developed can be utilised to forecast sales with accepted level of risk associated in the market. Contd. Jethendra. B. K
Retail Consultant CustoLogix Solutions
CustoLogix with its wide experience in statistical analysis helps retailer to improve retail profitability through Analytics. To know more about store positioning strategy please visit CustoLogix at www.custologix.com/serviceAbout the Author:
Retail Consultant,
Lead Business Analyst
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