RETAIL STRATEGY PROJECT

Instructions: This research paper should be written in paragraph form, double spaced, 12-point font with the normal margins and cite your sources in APA format. (10 points)

Please use the headings listed below (A. History of the Company, B. Retail Strategy, 1. Target Market etc ...) to make your paper flow well. The paper should be at least 3-5 pages long.

First step - You are about to open your own retail store or service firm. Decide what type of store or service provider you will launch - you could be a game shop, a hair salon, a bakery, an event provider, a pizza place or any other legal entity. Try to select a retail environment in which you have interest or experience visiting. Remember a retailer sells to the "ultimate consumer."

1. Overview of Your Company: (50 pts.)

1. Describe the products or services you will provide, and how these services or products are differentiated from the competition. Who might be your top competitors? What is your retail category? (Chapter 2). What will be your ownership structure? (Chapter 2) How did you decide on your retail format? What motivated you (hypothetically) to start this business?

2. How has your retail segment (food, apparel, salon etc) changed over the years? You should cite industry research/article for this section.

3. What is your mission statement? (Chapter 5)

4. How do you plan to expand, penetrate, diversify or change in the near future? An example might be that you plan to open a wine and beer shop that only features New Mexico products and open two more shops in the state within three years. (Chapter 5)

5. Who is your Target Market: Define your customer according to demographics (age, gender, income level, education etc.) What segmentation will you employ? (Chapter 4 see pages 105-107)

B. Retail Strategy: (100 pts)

1. What channels will you use to market your business? Will you be multichannel - omnichannel? (Chapter 2) Explain your decision.

2. Merchandise Assortment:

What are major brands will you carry? (See Chapter 12)

Will you have private brands? (See Chapter 12)

If you provide a service, describe if you will also sell a product (example: salons often sell hair and beauty products as well.

3. Store Location:

Where will locate your firm? (CBD, Shopping Center, Specialty Center, MXD) and why? (Chapter 8) Use Census or GIS data to support your decision on your trade area.

Is this site accessible for the customer?

4. Store Layout:

Sketch the general layout for your operation. Why did you choose this layout? What type of design layout does this store use? (Grid, Racetrack, Free Form etc.) (see Chapter 16)

Is it effective for customer flow?

What type of fixtures and lighting will you use?

Will you have music constantly playing? What type?

5. Pricing:

What will be your pricing policy? (Everyday Low Pricing, High/Low Pricing etc.)

What other practices will you use to compete with price? (Coupons, Rebates, Price Bundling)

Will you use the cost-oriented method of pricing or demand-oriented pricing?

Will you offer a frequent shopper program?

C. Communication Mix: (30 pts)

1. What type of paid advertisements will your business use?

2. What type of unpaid communication might your business use? (Publicity)

3. Will you use cooperative advertising? With whom?

What type of sales promotions will you offer? (Sales, Sampling, Demos, Contests etc.)

D. Customer Service: (30 pts)

1. What type of secondary services will your store offer? (Alterations, gift wrapping etc.)

2. Briefly describe your customer relationship management plan. See Chapter 10, and specifically refer to concepts presented.

3. What concepts provided in Chapter 17 will guide your customer service policies. Make specific reference to the textbook here.

F. Conclusion and Financial: (20 pts)

1. Describe your profit margin management plan. What will be your estimated gross margin? Your net operating profit. Use and cite research on similar stores to estimate these numbers.

2. Briefly describe how you will sustain a competitive advantage over similar stores.

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Here is the link if you need access to the textbook