Strategic Management for Retail Marketing

Retail industry continues to change with changes in technology, development of business and consumer needs. Retail business is the overall business activity associated with the sale and delivery of services to consumers for use of the individual nature as a person or family. To succeed in a competitive retail market, retailers should be able to offer the right product, price, time and place as well. Therefore, the understanding of the retailers on the characteristics of the target market or consumers to be served is very important.

In its operation, retailers run several functions, among others, assist consumers in providing various products and services. Running the split function as well as add value to products, the overall manager of the retail business requires implementation of management functions are integrated both functions of finance, marketing, human resources, and operational. So those retailers can fully understand the scope of its retail business, how its development strategy and business management.

Retail strategy is a statement explaining these things:
1. Target markets (target market), which market segments are planned to be served to focus the activities associated with the resources that must be prepared by the retail

2. The format is planned to be used separately to meet the needs of your target market. The format is retail combination; retail is based on the nature or characteristics of goods and services offered, pricing policies, advertising and promotional programs, design stores, and special locations.

3. Basic retail planning to gain a competitive advantage that can be maintained or benefits of competition can be maintained in the long run.

Thus each retail strategy will include:
- Selection of target market segments & the determination of retail formats
- Development of competitive advantage that enables retailers to reduce the level of competence faced

The concept of retail is a management orientation that focuses on retail in determining the needs of target markets and meets their needs more effectively & efficiently. The work must meet the retail needs of customers in market segments served better than that made by competitors. The main task in developing the retail business is setting the target market. This process begins by defining market segmentation.

Important things that must be considered in the retail business to develop a competitive advantage:

1. Consumer loyalty
Consumer loyalty means loyalty of consumers to shop at certain retail locations. Having loyal customers is an important method of maintaining the advantages of its competitors, if it has a loyal customer means that consumers have an aversion to a customer on rival retailers

2. Loyalty program
Loyalty program is part of the overall customer relationship management; this program is generally run in the retail business, loyalty program in collaboration with customer relationship management / Customer Relationship Marketing (CRM). Member - member loyalty program known when they buy, because they use some type of loyalty card, purchase information is stored in large databases, from the database can be known what types of goods purchased by consumers, by using this way retailers can adjust various offerings to meet the needs of consumers who are loyal to the good. Some retailers who have been using this program such as: Alfa with AFC (Alfa Family Club), Carrefour Shopping Card (KB) Carrefour, Matahari with MMC (Matahari Club Card), and many other examples.

3. Location
Location is a major factor in the selection by the consumer. This is also superiority in competition that is not easily imitated. For example: Starbucks, they create a market presence that is difficult to compete; Carrefour, they always determine the location that is always strategic. Selection of the exact location has the advantage that:

1. It is a long-term commitment of resources that can reduce the flexibility of future retail itself?

2. The location will affect the growth of retail business in the future; the selected area should be able to grow economically so as to maintain the continuity of the store at the beginning or the future.

Determination of the location can be started by selecting a community; this decision depends on the potential for economic growth and stability as well as competition and political climate. Apart from that geographic location is also very decisive.

4. Human Resources Management
Retail is a labor intensive business; the employees have an important role in providing services to consumers and build consumer loyalty.

5. Distribution System & Information
All retail businesses trying to manage efficiently, they continue to meet consumer needs, and at the same time members of consumer goods at a price better than the competitor or decides to use the opportunity to attract consumers from competitors with offering services, goods, and better visual presentation.

6. Goods - Unique Items
Developing brands labeled (also called store brands) which are the products developed and marketed by the retail and retail are only available from them.

7. Consumer Services
It takes time and effort to build a tradition and reputation for customer service, because of good customer service is a valuable strategic asset.