Retail Strategies
Hansel and Gretel is a retail shop located in Dzowulu that sells candy to its customer. Since the beginning of the year, Hansel and Gretel has being experiencing a fall in their sales which is most retail shops sometimes experience. The firm can increase their sales through the use of many strategies such as location retail, promotional retail, diversification retail, relationship retail and pricing retail strategies.
Retail Location Strategy The location of a shop is one of the most important factors in having a retail shop because the shop is the meeting point of the consumers and the brand. Hansel and Gretel’s target market is children and children buy based on impulse, in other words, when they see something they like they must have it. Usually they have to ask an adult or their parents to buy the things they want for them because most kids cannot come to the shop by themselves nor do they have the power or money to purchase whatever they want. For the above reason, Hansel and Gretel has to take into consideration the strategy of convenience shopping which involves minimizing the customer’s effort to get a product or service by locating a store close to the customer. In order to achieve this, the shop has to relocate or branch out to an area where there are many schools to be found. This way, it will be easy for kids to pass by the shop with their parents on their way to school or home from school. There is also the option of locating to a mall where most parents take their kids shopping or to spend their day. This way it is easier to grab the attention of the target market when they go to the mall with their parents. If this can be achieved, the more customers buy the more the shop’s sales will increase.
Diversification Strategy Diversification in retail refers to adding goods or services to what a retail firm already has to offer to facilitate the growth of the firm. It seeks to increase profitability through the acquisition of greater sales volumes
Retail Location Strategy The location of a shop is one of the most important factors in having a retail shop because the shop is the meeting point of the consumers and the brand. Hansel and Gretel’s target market is children and children buy based on impulse, in other words, when they see something they like they must have it. Usually they have to ask an adult or their parents to buy the things they want for them because most kids cannot come to the shop by themselves nor do they have the power or money to purchase whatever they want. For the above reason, Hansel and Gretel has to take into consideration the strategy of convenience shopping which involves minimizing the customer’s effort to get a product or service by locating a store close to the customer. In order to achieve this, the shop has to relocate or branch out to an area where there are many schools to be found. This way, it will be easy for kids to pass by the shop with their parents on their way to school or home from school. There is also the option of locating to a mall where most parents take their kids shopping or to spend their day. This way it is easier to grab the attention of the target market when they go to the mall with their parents. If this can be achieved, the more customers buy the more the shop’s sales will increase.
Diversification Strategy Diversification in retail refers to adding goods or services to what a retail firm already has to offer to facilitate the growth of the firm. It seeks to increase profitability through the acquisition of greater sales volumes
References: About.com.2013. RetailPricingStrategies.[ONLINE]Available at:http://retail.about.com/od/marketingsalespromotion/a/product_pricing.htm. [Accessed 11 March 13]. enotes.com.2013. DiversificationStrategy.[ONLINE]Available at: http://www.enotes.com/diversification-strategy-reference/diversification-strategy. [Accessed 11 March 13]. wiseGEEK.com. 2003. What Is a Retail Marketing Strategy?. [ONLINE] Available at:http://www.wisegeek.com/what-is-a-retail-marketing-strategy.htm. [Accessed 11 March 13].