Upload
tarshant009
View
8.460
Download
4
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Group :2
Optimizing Business Expansion of Business Redefining the Business
• Leads to Superior Customer Value Proposition• Economic Advantage
It is the retailers’s responsibility to determine & understand these reasons or needs and ensure that the formats focus on addressing them
Buyer purchases for their reasons, not those of a retailer
The selling Process that begins only when we earn buyer trustFortune Institute of International Business
ExtensionRelationship
Intensification Diversification
RetailingRetailing
PrinciplesPrinciples
Fortune Institute of International Business
The retail growth opportunities can be classified on the basis of their desired outcome::
Growth Strategy Objectives Growth Levers
Focuses on the existing business Includes Spectrum of :
Intensification of the current scope of the business
Logical Extension Strategic diversification
Represents the horizontal axis of the matrix & pertaining to the market opportunities with respect
to :
Geography/Location Product/Service offered Target customer Format/Channel
INTENSIFICATION
Strengthens position in existing markets by increasing market positioning.
IMPLICATIONS :• Enables the retailer to explore opportunities• Fills gaps in existing markets Ex: Walmart
Geographic ExtensionExpand more with similar market
characteristics to reach more customers in target segment.
IMPLICATIONS :Retailers facing saturation in major metro
markets enter into small & urban markets. Ex: Vishal Mart
Geographic DiversificationExpand into new locations with different
market characteristics to reach new customers
IMPLICATIONS :Opening stores in alternative locations like
airports, entertainment venues allows increased shopping frequency amongst the existing customers. Ex : Loreal, Revlon
INTENSIFICATION
Optimize existing offer to better serve existing customers
IMPLICATIONS :Growth can be achieved by capturing the
unsatisfied desires in the consumer market place. Ex: Ambience of Lowe’s stores to appeal the females customers
Product/Service Extension
Expand existing offers to leverage relationships with existing customers & attract new customers.
IMPLICATIONS :
Enhances the physical product offer that the retailers seek to create solution-driven concept.
Ex: EDLP in WALMART
Product/Service DiversificationConvert into other sector to create value for
new & existing customers in a wholly new area.
IMPLICATIONS:Offering new services outside their core
competency . Ex: Virgin Atlantic, Reliance.
Customer IntensficationBuild & Maintain customer loyalty &
SatisfactionIMPLICATIONS :“Best Customers” who spend freely Ex: Marketing & Loyalty Programs.
Customer ExtensionDiscover areas of uncovered potential to sell
more to existing customers
Customer DiversificationTarget new customer Groups in addition to the
existing loyal customers.
Format IntensificationEnhance the shopping experience of existing
customers with updated formats.
IMPLICATIONS :While the scarcity in the stores leads to quality
investing rather than quantity.
Format ExtensionTarget customers in shopping situations
& satisfy different shopping needs of same customers
Format DiversificationEmbrace creative use of available
consumer touchpoints