Saturated Markets
1. If a retail area is acknowledged to be "saturated," what does this signify for existing retailers? For prospective retailers considering this area?
Saturation of a retail area signifies that there are enough retailers in a particular geographic area to satisfy consumers needs in that area and also enables retailers to prosper. But on the other hand, a saturated retail area also has a very high threat of getting over stored where they will be lots of retail stores and no one will be able to make profit .
Therefore in order to survive for a long time in a saturated market it is very necessary for the existing retailers to capture their share of the market and retain it.
They need to focus on the following factors
Increase Customer Value: In an environment of fierce competition where there will be lot of price slashing to attract customers it is very necessary to understand our customers and offer them a value for the price they are paying for the product. The existing retailers should understand their customers well and need to figure what kind of pricing strategies and offers will the consumers accept and willing to pay for. They need to offer better quality product, should learn to keep their customers happy, they should give them new offers and discount specially too loyal customers. They should have different loyalty programs for their valuable customers to keep them happy and make them coming back to you again and again. They should establish a good data base to track their customers; their preferences and their shopping behaviors to be able to better satisfy them. In this phase when lots of retailers will slash down price to attract more and more customers and increase their profits, I think the best strategy is to research your market well and find out what price the consumers will accept and provide the with good benefits in that price, as reducing your price will affect your profits and your market share too in the long run.
New Product and
Saturation of a retail area signifies that there are enough retailers in a particular geographic area to satisfy consumers needs in that area and also enables retailers to prosper. But on the other hand, a saturated retail area also has a very high threat of getting over stored where they will be lots of retail stores and no one will be able to make profit .
Therefore in order to survive for a long time in a saturated market it is very necessary for the existing retailers to capture their share of the market and retain it.
They need to focus on the following factors
Increase Customer Value: In an environment of fierce competition where there will be lot of price slashing to attract customers it is very necessary to understand our customers and offer them a value for the price they are paying for the product. The existing retailers should understand their customers well and need to figure what kind of pricing strategies and offers will the consumers accept and willing to pay for. They need to offer better quality product, should learn to keep their customers happy, they should give them new offers and discount specially too loyal customers. They should have different loyalty programs for their valuable customers to keep them happy and make them coming back to you again and again. They should establish a good data base to track their customers; their preferences and their shopping behaviors to be able to better satisfy them. In this phase when lots of retailers will slash down price to attract more and more customers and increase their profits, I think the best strategy is to research your market well and find out what price the consumers will accept and provide the with good benefits in that price, as reducing your price will affect your profits and your market share too in the long run.
New Product and