Save a Lot Strategy
Introduction
Aim: Provide a detailed retail audit containing market entry strategies, competition and the market place and a retail strategy plan that will allow Save a Lot to secure a bank loan in support of their Australian Franchise
Context: Save- A- Lot is a discount retailer seeking to expand into the Australian market place targeting high discount and low price seeking consumers. Their market entry strategy is to franchise their brand and use a market expansion strategy when moving to the Australian market place
Structure: The first section of the report addresses market entry strategy and the retail planning process. The report then moves to discuss the situation audit which entails competitor and market place analysis. The final section discusses the retailing strategy and offers recommendations to Save A Lot.
Market Entry
Save-A-Lot’s market entry mechanism is Market Expansion as they are expanding into a new market place by franchising their brand (Appendix 1). This entry strategy is a cost saving strategy as a franchising strategy will promote rapid growth without the establishment costs, no direct staff employment and economies of scale in buying in buying stock and marketing (Inside Retailing, 2010). Subsequently, by franchising their brand, Save-A-Lot will inevitably lose aspects managerial control over their franchise in Australia. However, despite the lack of perceived control, this market entry strategy will reduce costs which will help with Save-A-Lots overall business strategy of offering consumers quality merchandize at low prices and remain profitable (Levy, & Weitz, 2009)
Retail Planning Process:
[Table 1.0]: This table illustrates the retail planning process that is conducted by Save A Lot in order to define their retailing mix and corporate strategies upon entering the Australian market.
Table 1.0 Retail Planning Process
Retail Planning Process Save A Lot in Australia
1. Define the business mission “We will provide
Aim: Provide a detailed retail audit containing market entry strategies, competition and the market place and a retail strategy plan that will allow Save a Lot to secure a bank loan in support of their Australian Franchise
Context: Save- A- Lot is a discount retailer seeking to expand into the Australian market place targeting high discount and low price seeking consumers. Their market entry strategy is to franchise their brand and use a market expansion strategy when moving to the Australian market place
Structure: The first section of the report addresses market entry strategy and the retail planning process. The report then moves to discuss the situation audit which entails competitor and market place analysis. The final section discusses the retailing strategy and offers recommendations to Save A Lot.
Market Entry
Save-A-Lot’s market entry mechanism is Market Expansion as they are expanding into a new market place by franchising their brand (Appendix 1). This entry strategy is a cost saving strategy as a franchising strategy will promote rapid growth without the establishment costs, no direct staff employment and economies of scale in buying in buying stock and marketing (Inside Retailing, 2010). Subsequently, by franchising their brand, Save-A-Lot will inevitably lose aspects managerial control over their franchise in Australia. However, despite the lack of perceived control, this market entry strategy will reduce costs which will help with Save-A-Lots overall business strategy of offering consumers quality merchandize at low prices and remain profitable (Levy, & Weitz, 2009)
Retail Planning Process:
[Table 1.0]: This table illustrates the retail planning process that is conducted by Save A Lot in order to define their retailing mix and corporate strategies upon entering the Australian market.
Table 1.0 Retail Planning Process
Retail Planning Process Save A Lot in Australia
1. Define the business mission “We will provide
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