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RIC ANDERSON
RETAIL STRATEGY
FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
AND MAKE IT WORK!
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
2
COURSE OBJECTIVES:COURSE OBJECTIVES:
Understand the processes to create a Retail StrategyUnderstand the processes to create a Retail Strategy
with a Customer Centric Focuswith a Customer Centric Focus
Learn to analyze your business and competition fromLearn to analyze your business and competition from
a multi-dimensional point of view.a multi-dimensional point of view.
Refine your “Brand” and “Customer Value” PropositionsRefine your “Brand” and “Customer Value” Propositions
Build your strategy on a strong foundationBuild your strategy on a strong foundation
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
3
MURPHY'S LAW OF MANAGEMENT STRATEGYMURPHY'S LAW OF MANAGEMENT STRATEGY
Some people manage by the book,
even though they don't know
who wrote the book
or even what book.
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
4
STRATEGYSTRATEGY
WHAT IS THE DEFINITION OF BUSINESS STRATEGY?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
5
STRATEGYSTRATEGY
THE DEFINITION OF BUSINESS STRATEGY IS:
A LONG TERM PLAN OF ACTION DESIGNED TO
ACHIEVE A PARTICULAR GOAL OR SET OF
OBJECTIVES
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
6
AGENDAAGENDA
Frame of ReferenceFrame of Reference
Visit the “3 Stages” of Strategy Timeline & PathVisit the “3 Stages” of Strategy Timeline & Path
Breakdown “Stages” into ProcessesBreakdown “Stages” into Processes
Finalize and ExecuteFinalize and Execute
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
7
WHAT IS THE PURPOSE OF A BUSINESS?WHAT IS THE PURPOSE OF A BUSINESS?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
8
EVERY BUSINESS HAS A “PURPOSE!EVERY BUSINESS HAS A “PURPOSE!
THAT PURPOSE IS TO PROVIDETHAT PURPOSE IS TO PROVIDE
A PRODUCT OR SERVICEA PRODUCT OR SERVICE
WHERE THE CUSTOMER HASWHERE THE CUSTOMER HAS
A PERCEIVED VALUE!A PERCEIVED VALUE!
KEY PIECEKEY PIECE
OF THEOF THE
PUZZLEPUZZLE
 
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
9
WHAT IS YOUR PURPOSE?WHAT IS YOUR PURPOSE?
WHAT SANDBOX ARE YOU PLAYING IN?WHAT SANDBOX ARE YOU PLAYING IN?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!10
JCPENNEY’S IS THE PERFECT EXAMPLEJCPENNEY’S IS THE PERFECT EXAMPLE
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
11
CURRENT STATE:CURRENT STATE:
Your system is perfectly designed to produceYour system is perfectly designed to produce
the results that you are getting today.the results that you are getting today.  
LESSON:LESSON:  
If you want fundamentally andIf you want fundamentally and
substantially different results, You havesubstantially different results, You have
to change the strategy and methodologyto change the strategy and methodology
of how you are doing business!of how you are doing business!
Insanity: Doing the same thing over and over again And expecting different results.
Albert Einstein
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
12
12 PILLARS OF STRATEGY12 PILLARS OF STRATEGY
WITHIN THE PILLARS ARE THE TACTICS
THREE STAGES OF BUILDING STRATEGY:THREE STAGES OF BUILDING STRATEGY:
1) Look, Listen, and Learn
2) Evaluate, Collaborate and Test
3) Assemble and Execute
 
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
13
STAGE # 1:STAGE # 1: LOOK, LISTEN, AND LEARN
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
14
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO#1 10,000 FT POINT OF VIEW10,000 FT POINT OF VIEW
See the “Big Picture”See the “Big Picture”
Know the Market PlaceKnow the Market Place
that you are working inthat you are working in
Understand the relationshipsUnderstand the relationships
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
15
POINT OF VIEW
 LOOK FOR YOUR BEST CUSTOMERSLOOK FOR YOUR BEST CUSTOMERS
 Understand who your competition really is and whatUnderstand who your competition really is and what
the do bestthe do best
 Profitable “Market Niches” GrowthProfitable “Market Niches” Growth
 High ROIHigh ROI
 ““Best in Class” and “Top of Mind”Best in Class” and “Top of Mind”
 Innovative Positive Customer Touchpoints.Innovative Positive Customer Touchpoints.
 High Productivity Revenues ChannelsHigh Productivity Revenues Channels
 FlexibleFlexible
 Smooth TransitionSmooth Transition
 Least RiskLeast Risk
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
16
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 2 CUSTOMER CENTRIC FOCUSCUSTOMER CENTRIC FOCUS
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
17
CUSTOMER PROFILECUSTOMER PROFILE
KNOW AND UNDERSTAND YOUR CUSTOMERKNOW AND UNDERSTAND YOUR CUSTOMER
Current Customer?Current Customer?
Analytics?Analytics?
Population of the Market?Population of the Market?
Filters and Segments?Filters and Segments?
Preferred Customer?Preferred Customer?
Alternative Customer?Alternative Customer?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
18
CUSTOMER PURCHASING DECISIONCUSTOMER PURCHASING DECISION
LASER FOCUS ON THE CUSTOMERLASER FOCUS ON THE CUSTOMER
CUSTOMER TOUCHPOINTSCUSTOMER TOUCHPOINTS
Visual, Physical or MentalVisual, Physical or Mental
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
19
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 3 MULTI-DIMENSIONAL SOLUTIONSMULTI-DIMENSIONAL SOLUTIONS
Evaluate multiple “Solutions” to your Strategy.Evaluate multiple “Solutions” to your Strategy.
Build a Strategy that can create growth, is profitable,Build a Strategy that can create growth, is profitable,
sustainable, scalable, integrated, defendable, andsustainable, scalable, integrated, defendable, and
has competitive supremacy.has competitive supremacy.
Can easily be communicatedCan easily be communicated
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
20
 
CRITICAL PATHCRITICAL PATH
Predetermined set of Processes and TimelinesPredetermined set of Processes and Timelines
SEEK OUT, SURFACE AND RESOLVESEEK OUT, SURFACE AND RESOLVE
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
21
CRITICAL THOUGHT PROCESSCRITICAL THOUGHT PROCESS
THE “CRITICAL THOUGHT PROCESS”THE “CRITICAL THOUGHT PROCESS”
IS THE PATHWAY TO A SOLUTION!IS THE PATHWAY TO A SOLUTION!
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
22
CHAMPIONCHAMPION
A Senior Executive has to be given Authority:A Senior Executive has to be given Authority:
 Gather Data & Collect InformationGather Data & Collect Information
 Ask difficult & hard questionsAsk difficult & hard questions
 Request other’s time & assetsRequest other’s time & assets
 Conclusion and ExecutionConclusion and Execution
RequirementsRequirements
 ListenListen
 Open MindOpen Mind
 Qualitative and Quantitative Skill SetsQualitative and Quantitative Skill Sets
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!23
POWER OF CULTUREPOWER OF CULTURE
ASSETS:ASSETS: PEOPLE AND CULTUREPEOPLE AND CULTURE
ENVIRONMENTENVIRONMENT is one of trust, engagement, learning,is one of trust, engagement, learning,
communication, listening and cooperation!communication, listening and cooperation!
LEADERSHIPLEADERSHIP is at all levels!is at all levels!
RESPONSIBILITYRESPONSIBILITY for own role!for own role!
ALL SECTORSALL SECTORS to be utilizedto be utilized
ENGAGEMENTENGAGEMENT has to be total!has to be total!
CONTINOUS INNOVATIONCONTINOUS INNOVATION is top of mind in all sectors!is top of mind in all sectors!
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 4: ENGAGED CULTUREENGAGED CULTURE
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
24
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 5: INTERNAL AND COMPETITIVE INTELLIGENCE
MARKETPLACEMARKETPLACE
Which Marketplace?Which Marketplace?
What Products?What Products?
Value?Value?
Channels of RevenueChannels of Revenue
WHERE AND WHAT IS YOUR SANDBOX?WHERE AND WHAT IS YOUR SANDBOX?
25
INTERNAL INTELLIGENCEINTERNAL INTELLIGENCE
ANSWERSANSWERS ARE WITHIN THE ORGANIZATIONARE WITHIN THE ORGANIZATION
SOLUTIONSSOLUTIONS TO SURFACE IS THE ISSUE.TO SURFACE IS THE ISSUE.
CROSS FUNCTIONAL SUPPORT GROUPSCROSS FUNCTIONAL SUPPORT GROUPS
INTERVIEWS:INTERVIEWS: INDIVIDUAL AND GROUPINDIVIDUAL AND GROUP
INTEGRATED STRATEGYINTEGRATED STRATEGY
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
26
VENDOR COMMUNITYVENDOR COMMUNITY
MOST UNDERUTILIZED ASSETMOST UNDERUTILIZED ASSET
Vendor ConferenceVendor Conference
 Products
 Marketing
 Logistics
 Customer Experience
 Competition
 Innovative Solutions
 Invite Cross-Functional Support members
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!27
COMPETITION: Competitive IntelligenceCOMPETITION: Competitive Intelligence
WHO? UNDERLYING COMPETITORS?WHO? UNDERLYING COMPETITORS?
““BEST IN CLASS”BEST IN CLASS”
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
28
TEAM PROJECTTEAM PROJECT
MERCHANDISINGMERCHANDISING
STORESSTORES
CHANNELSCHANNELS
CROSS FUNCTIONALCROSS FUNCTIONAL
SENIOR TEAM MEMBERSSENIOR TEAM MEMBERS
TRUSTED VENDORSTRUSTED VENDORS
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 6: COLLABRATECOLLABRATE
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
29
FINANCIAL and OPERATIONAL GOALS
Plans vs. Current StatePlans vs. Current State
“Work Sessions”
with Finance, Merchants, Operations etc.
Competitive IntelligenceCompetitive Intelligence
Where are the opportunities?Where are the opportunities?
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 7: IN-DEPTH ANALYSISIN-DEPTH ANALYSIS
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
30
PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW
MARKET SHAREMARKET SHARE
FINANCIAL ANALYSISFINANCIAL ANALYSIS
ANALYSIS BY PRODUCT FILTERSANALYSIS BY PRODUCT FILTERS
COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
31
PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW
MARKET SHAREMARKET SHARE
MARKET SHARE BY COMPETITOR
PRODUCTS Comp. 1 Comp. 2 Comp. 3 Comp. 4 Comp. 5
Women's 10.0% 8.0% 4.0% 7.0% 6.0%
Men's 4.0% 6.0% 8.0% 5.0% 4.0%
Kids 5.0% 8.0% 7.0% 5.0%
Footwear 8.0% 6.0% 7.0%
Accessories 8.0% 6.0% 5.0% 1.0% 3.0%
Intimate 6.0% 5.0% 4.0% 2.0%
Fine Jewelry 5.0%
Home 4.0% 7.0% 6.0%
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
32
PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW
ADDITIONAL ELEMENTS:ADDITIONAL ELEMENTS:
Inventory – Turn – ROIInventory – Turn – ROI
Sales Sq. Ft. GM$ Sq. Ft.,Sales Sq. Ft. GM$ Sq. Ft.,
Marketing SpendMarketing Spend
% of each element per month & year% of each element per month & year
BREAKDOWN: Women’s, Men’s, Kids, Athletic, WorkBREAKDOWN: Women’s, Men’s, Kids, Athletic, Work
FINANCIAL ANALYSIS SHOES 1,000,000s
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
SALES Reg 20$ 25$ 40$ 30$ 30$ 30$ 20$ 35$ 45$ 40$ 40$ 45$ 400$
Markdown 30$ 20$ 20$ 10$ 15$ 25$ 20$ 25$ 30$ 15$ 25$ 35$ 270$
TOTAL 50$ 45$ 60$ 40$ 45$ 55$ 40$ 60$ 75$ 55$ 65$ 80$ 670$
GM$ Regular 10$ 13$ 20$ 14$ 14$ 14$ 10$ 16$ 20$ 20$ 19$ 20$ 189$
Markdown 8$ 3$ 2$ 4$ 5$ 8$ 6$ 5$ 3$ 5$ 8$ 9$ 64$
TOTAL 17$ 16$ 22$ 18$ 19$ 21$ 16$ 21$ 23$ 25$ 27$ 29$ 253$
GM% Regular 48% 52% 50% 48% 45% 45% 48% 45% 45% 50% 48% 45% 47%
Markdown 25% 15% 10% 35% 35% 30% 30% 20% 10% 35% 30% 25% 23%
TOTAL 34% 36% 37% 45% 42% 38% 39% 35% 31% 46% 41% 36% 38%
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
33
PRODUCT CATEGORY FILTERS:PRODUCT CATEGORY FILTERS: MARKET BASKET
DEEP DIVE into multiple combinations of data
MARKET BASKET
WOMEN MEN SHOES
TOTAL Dresses Sport Denim JR TOTAL Suiting Sport Denim YM Work TOTAL Women Kids ATH Men's Work
WOMEN TOTAL 100% 30% 60% 40% 25% 40% 10% 30% 30% 15% 5% 60% 65% 40% 30% 30% 10%
Dresses 30% 100% 40% 30% 15% 10% 8% 15% 20% 5% 1% 30% 50% 10% 7% 12% 3%
Sport 60% 40% 100% 75% 40% 40% 5% 25% 30% 15% 2% 50% 60% 20% 10% 15% 4%
Denim 40% 30% 75% 100% 25% 25% 5% 3% 30% 25% 10% 60% 60% 25% 15% 10% 5%
JR 25% 15% 40% 25% 100% 20% 1% 15% 20% 20% 1% 40% 35% 30% 25% 5% 1%
MEN TOTAL 40% 10% 40% 25% 20% 100% 40% 80% 50% 35% 50% 40% 25% 40% 30% 40% 30%
Suiting 10% 8% 5% 5% 1% 40% 100% 60% 40% 20% 20% 30% 20% 20% 20% 30% 25%
Sport 30% 15% 25% 3% 15% 80% 60% 100% 50% 30% 25% 40% 25% 35% 25% 40% 30%
Denim 30% 20% 30% 30% 20% 50% 40% 50% 100% 45% 35% 40% 15% 30% 30% 40% 35%
YM 15% 5% 15% 25% 20% 35% 20% 30% 45% 100% 10% 25% 10% 10% 25% 25% 10%
Work 5% 1% 2% 10% 1% 50% 20% 25% 35% 10% 100% 30% 8% 15% 20% 30% 80%
SHOES TOTAL 60% 30% 50% 60% 40% 40% 30% 40% 40% 25% 30% 100% 65% 40% 30% 35% 25%
Women's 65% 50% 60% 60% 35% 25% 20% 25% 15% 10% 8% 65% 100% 60% 40% 30% 30%
Kids 40% 10% 20% 25% 30% 40% 20% 35% 30% 10% 15% 40% 60% 100% 30% 45% 40%
Athletic 30% 7% 10% 15% 25% 30% 20% 25% 30% 25% 20% 30% 40% 30% 100% 50% 40%
Men's 30% 12% 15% 10% 5% 40% 30% 40% 40% 25% 30% 35% 30% 45% 50% 100% 80%
Work 10% 3% 4% 5% 1% 30% 25% 30% 35% 10% 80% 25% 30% 40% 40% 80% 100%
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
34
PRODUCT CATEGORIES FILTERSPRODUCT CATEGORIES FILTERS
ANALYSIS OF EACH CATEGORYANALYSIS OF EACH CATEGORY
LocalizationLocalization
Time PeriodTime Period
Product to Market Channel/PathProduct to Market Channel/Path
Marketing: Product & ChannelMarketing: Product & Channel
““Purple Cow” ViewpointPurple Cow” Viewpoint
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
35
MARKETINGMARKETING
CUSTOMER REACHED?CUSTOMER REACHED?
MARKETING CHANNELS?MARKETING CHANNELS?
CHANNELS BEST REFLECTCHANNELS BEST REFLECT
THE BRAND?THE BRAND?
EFFECTIVENESS BY CHANNEL?EFFECTIVENESS BY CHANNEL?
INNOVATIVE TESTSINNOVATIVE TESTS
SOCIAL MEDIASOCIAL MEDIA
REACH NEW CUSTOMERS?REACH NEW CUSTOMERS?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!36
REVENUE CHANNELS:REVENUE CHANNELS:
WHICH ONES FIT YOUR STRATEGY?WHICH ONES FIT YOUR STRATEGY?
STORESSTORES B2C - CATALOGB2C - CATALOG E-COMMERCEE-COMMERCE
B2BB2B WHOLESALE TVWHOLESALE TV
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
37
COMPANY HISTORYCOMPANY HISTORY
History: PAST vs. CURRENTHistory: PAST vs. CURRENT
What is driving the Business?What is driving the Business?
Revenue ChannelsRevenue Channels
Competition: old and newCompetition: old and new
Economic StatusEconomic Status
Changes in Population DemographicsChanges in Population Demographics
Technology – Innovation?Technology – Innovation?
Other Elements?Other Elements?
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
38
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 8
SUPREMACY THROUGH COMPETITIVE ADVANTAGESSUPREMACY THROUGH COMPETITIVE ADVANTAGES
BUSINESS WITH THE MOST INNOVATIVEBUSINESS WITH THE MOST INNOVATIVE
COMPETITIVE ADVANTAGES WINS!COMPETITIVE ADVANTAGES WINS!
ProductProduct
Price, Value, Quality etc.Price, Value, Quality etc.
Business ModelBusiness Model
Customer Value PropositionCustomer Value Proposition
Most positive Customer TouchpointsMost positive Customer Touchpoints
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
39
COMPETITIVE SUPREMACYCOMPETITIVE SUPREMACY
BUILDING COMPETITIVE SUPREMACY
COMP. 1 COMP. 2 COMP. 3 COMP. 4 COMP. 5
FINANCIAL
ROI
MARGIN
SALES
PRODUCT
ASSORTMENT
QUALITY
UNIQUE
BRAND POSITION
HIGH
MIDDLE
LOW
PRODUCT CHANNEL
SPEED TO MARKET
GEOGRAPHY
CUSTOMER
SERVICE
VALUE
ENGAGEMENT
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
40
STAGE II:STAGE II:
EVALUATE, COLLABORATE, ANDEVALUATE, COLLABORATE, AND
TESTTEST
USE OF MULTIPLE SOURCESUSE OF MULTIPLE SOURCES
UNDERSTAND MULTIPLE OPTIONSUNDERSTAND MULTIPLE OPTIONS
CREATED ALTERNATIVE SOLUTIONSCREATED ALTERNATIVE SOLUTIONS
BUILD QUANTIFIABLE TESTSBUILD QUANTIFIABLE TESTS
INTEGRATED STRATEGYINTEGRATED STRATEGY
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
41
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 9: ABILITY TO SYNTHESIZE HIGHLY QUANTITATIVEABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE
AND QUALITTATIVE DATA INTO A LOGICAL CONCLUSIONAND QUALITTATIVE DATA INTO A LOGICAL CONCLUSION
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
42
BRAND POSITION,BRAND POSITION,
CUSTOMER VALUE PROPOSITIONCUSTOMER VALUE PROPOSITION
andand
BUSINESS MODELBUSINESS MODEL
BRAND POSITIONBRAND POSITION
CUSTOMER VALUECUSTOMER VALUE
PROPOSITIONPROPOSITION
(CVP)(CVP)
BUSINESS MODELBUSINESS MODEL
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 10: INTEGRATED BRAND STRATEGYINTEGRATED BRAND STRATEGY
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
43
STAGE III:STAGE III:
ASSEMBLE AND EXECUTEASSEMBLE AND EXECUTE
 REQUIRES THE SKILL OF SYNTHESISREQUIRES THE SKILL OF SYNTHESIS
CREATE STRATEGYCREATE STRATEGY
GATHER DATAGATHER DATA
ALIGN SOLUTIONSALIGN SOLUTIONS
INTEGRATE ALL ELEMENTSINTEGRATE ALL ELEMENTS
CROSS FUNCTIONAL SENIOR TEAMCROSS FUNCTIONAL SENIOR TEAM
SUMMARIZESUMMARIZE
DISCUSSIONDISCUSSION
HOT BUTTONSHOT BUTTONS
COLLABORATIONCOLLABORATION
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
44
LITMUS TEST :LITMUS TEST : SYNTHESIS
BRAND, CVP, BUSINESS MODEL IN SYNCBRAND, CVP, BUSINESS MODEL IN SYNC
PURPLE COWPURPLE COW
INNOVATIVE COMPETITIVE ADVANTAGESINNOVATIVE COMPETITIVE ADVANTAGES
PROFITABLEPROFITABLE
SUSTAINABLESUSTAINABLE
DEFENDABLEDEFENDABLE
SCALABLESCALABLE
INTERNAL ALIGNMENTINTERNAL ALIGNMENT
SUPPORT FROM INDUSTRYSUPPORT FROM INDUSTRY
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
45
 
FINAL STRATEGY:FINAL STRATEGY:
The Core Senior Team to the Company must
make the final decision.
Incorporate as many of the goals as possible
into a seamless comprehensive and a
collaborative Strategy.
Congratulations!
You have completed 90% of the Goal.
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
46
COMMUNICATIONCOMMUNICATION
COMMUNICATION IS THE LAST 10% AND MOST CRUCIAL TO SUCCESS OF THE STRATEGY.
SUCCESS TIED DIRECTLY TO COMMUNICATIONSUCCESS TIED DIRECTLY TO COMMUNICATION
DISSEMINATEDISSEMINATE
ACKNOWLEDGEMENTACKNOWLEDGEMENT
ANTICIPATE ISSUESANTICIPATE ISSUES
CHANGE MANAGEMENTCHANGE MANAGEMENT
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 11: COMMUNICATION
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
47
BUILDING A FOUNDATION:BUILDING A FOUNDATION:
PILLAR NO# 12 CONTINUOUS INNOVATIONCONTINUOUS INNOVATION
THE “STRATEGY” FOR A RETAIL PLATFORMTHE “STRATEGY” FOR A RETAIL PLATFORM
IS A LIVING ORGANISM!IS A LIVING ORGANISM!
INNOVATION KEEPS IT HEALTHY!INNOVATION KEEPS IT HEALTHY!
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
48
SUMMARYSUMMARY
A STRATEGIC PROCESS THAT CAN BE USED BYA STRATEGIC PROCESS THAT CAN BE USED BY
THE ENTIRE ORGANIZATION. EVERYONE HASTHE ENTIRE ORGANIZATION. EVERYONE HAS
CONTRIBUTED, TAKES OWNERSHIP, UNDERSTANDSCONTRIBUTED, TAKES OWNERSHIP, UNDERSTANDS
AND CAN EASILY ARTICULATE TO OTHERS.AND CAN EASILY ARTICULATE TO OTHERS.
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR
BUSINESS!
49
ANDERSON’s 12 PILLARS:ANDERSON’s 12 PILLARS: BUILDING A FOUNDATION
1.1. 10,000 FT POINT OF VIEW10,000 FT POINT OF VIEW
2.2. CUSTOMER CENTRIC FOCUSCUSTOMER CENTRIC FOCUS
3.3. MULTI-DIMENSIONAL SOLUTIONSMULTI-DIMENSIONAL SOLUTIONS
4.4. ENGAGED CULTUREENGAGED CULTURE
5.5. INTERNAL & COMPETITIVE INTELLIGENCEINTERNAL & COMPETITIVE INTELLIGENCE
6.6. COLLABORATECOLLABORATE
7.7. IN-DEPTH ANALYSISIN-DEPTH ANALYSIS
8.8. SUPREMACY THROUGH COMPETITIVE ADVANTAGESSUPREMACY THROUGH COMPETITIVE ADVANTAGES
9.9. ABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE ANDABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE AND
QUALITATIVE DATA INTO A LOGICAL CONCLUSION.QUALITATIVE DATA INTO A LOGICAL CONCLUSION.
10.10.INTEGRATED BRAND STRATEGYINTEGRATED BRAND STRATEGY
11.11.COMMUNICATIONCOMMUNICATION
12.12.CONTINUOUS INNOVATIONCONTINUOUS INNOVATION
RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
50
 
 
Do not repeat the tactics which haveDo not repeat the tactics which have
gained you one victory, but let yourgained you one victory, but let your
methods be regulated by the infinitemethods be regulated by the infinite
variety of circumstancesvariety of circumstances
Sun Tzu c. 490 BC, Chinese military strategist

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Retail strategy blc ric anderson 4.28.13

  • 1. by RIC ANDERSON RETAIL STRATEGY FIND THE BEST CUSTOMER FOR YOUR BUSINESS! AND MAKE IT WORK!
  • 2. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 2 COURSE OBJECTIVES:COURSE OBJECTIVES: Understand the processes to create a Retail StrategyUnderstand the processes to create a Retail Strategy with a Customer Centric Focuswith a Customer Centric Focus Learn to analyze your business and competition fromLearn to analyze your business and competition from a multi-dimensional point of view.a multi-dimensional point of view. Refine your “Brand” and “Customer Value” PropositionsRefine your “Brand” and “Customer Value” Propositions Build your strategy on a strong foundationBuild your strategy on a strong foundation
  • 3. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 3 MURPHY'S LAW OF MANAGEMENT STRATEGYMURPHY'S LAW OF MANAGEMENT STRATEGY Some people manage by the book, even though they don't know who wrote the book or even what book.
  • 4. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 4 STRATEGYSTRATEGY WHAT IS THE DEFINITION OF BUSINESS STRATEGY?
  • 5. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 5 STRATEGYSTRATEGY THE DEFINITION OF BUSINESS STRATEGY IS: A LONG TERM PLAN OF ACTION DESIGNED TO ACHIEVE A PARTICULAR GOAL OR SET OF OBJECTIVES
  • 6. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 6 AGENDAAGENDA Frame of ReferenceFrame of Reference Visit the “3 Stages” of Strategy Timeline & PathVisit the “3 Stages” of Strategy Timeline & Path Breakdown “Stages” into ProcessesBreakdown “Stages” into Processes Finalize and ExecuteFinalize and Execute
  • 7. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 7 WHAT IS THE PURPOSE OF A BUSINESS?WHAT IS THE PURPOSE OF A BUSINESS?
  • 8. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 8 EVERY BUSINESS HAS A “PURPOSE!EVERY BUSINESS HAS A “PURPOSE! THAT PURPOSE IS TO PROVIDETHAT PURPOSE IS TO PROVIDE A PRODUCT OR SERVICEA PRODUCT OR SERVICE WHERE THE CUSTOMER HASWHERE THE CUSTOMER HAS A PERCEIVED VALUE!A PERCEIVED VALUE! KEY PIECEKEY PIECE OF THEOF THE PUZZLEPUZZLE  
  • 9. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 9 WHAT IS YOUR PURPOSE?WHAT IS YOUR PURPOSE? WHAT SANDBOX ARE YOU PLAYING IN?WHAT SANDBOX ARE YOU PLAYING IN?
  • 10. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!10 JCPENNEY’S IS THE PERFECT EXAMPLEJCPENNEY’S IS THE PERFECT EXAMPLE
  • 11. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 11 CURRENT STATE:CURRENT STATE: Your system is perfectly designed to produceYour system is perfectly designed to produce the results that you are getting today.the results that you are getting today.   LESSON:LESSON:   If you want fundamentally andIf you want fundamentally and substantially different results, You havesubstantially different results, You have to change the strategy and methodologyto change the strategy and methodology of how you are doing business!of how you are doing business! Insanity: Doing the same thing over and over again And expecting different results. Albert Einstein
  • 12. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 12 12 PILLARS OF STRATEGY12 PILLARS OF STRATEGY WITHIN THE PILLARS ARE THE TACTICS THREE STAGES OF BUILDING STRATEGY:THREE STAGES OF BUILDING STRATEGY: 1) Look, Listen, and Learn 2) Evaluate, Collaborate and Test 3) Assemble and Execute  
  • 13. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 13 STAGE # 1:STAGE # 1: LOOK, LISTEN, AND LEARN
  • 14. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 14 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO#1 10,000 FT POINT OF VIEW10,000 FT POINT OF VIEW See the “Big Picture”See the “Big Picture” Know the Market PlaceKnow the Market Place that you are working inthat you are working in Understand the relationshipsUnderstand the relationships
  • 15. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 15 POINT OF VIEW  LOOK FOR YOUR BEST CUSTOMERSLOOK FOR YOUR BEST CUSTOMERS  Understand who your competition really is and whatUnderstand who your competition really is and what the do bestthe do best  Profitable “Market Niches” GrowthProfitable “Market Niches” Growth  High ROIHigh ROI  ““Best in Class” and “Top of Mind”Best in Class” and “Top of Mind”  Innovative Positive Customer Touchpoints.Innovative Positive Customer Touchpoints.  High Productivity Revenues ChannelsHigh Productivity Revenues Channels  FlexibleFlexible  Smooth TransitionSmooth Transition  Least RiskLeast Risk
  • 16. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 16 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 2 CUSTOMER CENTRIC FOCUSCUSTOMER CENTRIC FOCUS
  • 17. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 17 CUSTOMER PROFILECUSTOMER PROFILE KNOW AND UNDERSTAND YOUR CUSTOMERKNOW AND UNDERSTAND YOUR CUSTOMER Current Customer?Current Customer? Analytics?Analytics? Population of the Market?Population of the Market? Filters and Segments?Filters and Segments? Preferred Customer?Preferred Customer? Alternative Customer?Alternative Customer?
  • 18. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 18 CUSTOMER PURCHASING DECISIONCUSTOMER PURCHASING DECISION LASER FOCUS ON THE CUSTOMERLASER FOCUS ON THE CUSTOMER CUSTOMER TOUCHPOINTSCUSTOMER TOUCHPOINTS Visual, Physical or MentalVisual, Physical or Mental
  • 19. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 19 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 3 MULTI-DIMENSIONAL SOLUTIONSMULTI-DIMENSIONAL SOLUTIONS Evaluate multiple “Solutions” to your Strategy.Evaluate multiple “Solutions” to your Strategy. Build a Strategy that can create growth, is profitable,Build a Strategy that can create growth, is profitable, sustainable, scalable, integrated, defendable, andsustainable, scalable, integrated, defendable, and has competitive supremacy.has competitive supremacy. Can easily be communicatedCan easily be communicated
  • 20. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 20   CRITICAL PATHCRITICAL PATH Predetermined set of Processes and TimelinesPredetermined set of Processes and Timelines SEEK OUT, SURFACE AND RESOLVESEEK OUT, SURFACE AND RESOLVE
  • 21. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 21 CRITICAL THOUGHT PROCESSCRITICAL THOUGHT PROCESS THE “CRITICAL THOUGHT PROCESS”THE “CRITICAL THOUGHT PROCESS” IS THE PATHWAY TO A SOLUTION!IS THE PATHWAY TO A SOLUTION!
  • 22. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 22 CHAMPIONCHAMPION A Senior Executive has to be given Authority:A Senior Executive has to be given Authority:  Gather Data & Collect InformationGather Data & Collect Information  Ask difficult & hard questionsAsk difficult & hard questions  Request other’s time & assetsRequest other’s time & assets  Conclusion and ExecutionConclusion and Execution RequirementsRequirements  ListenListen  Open MindOpen Mind  Qualitative and Quantitative Skill SetsQualitative and Quantitative Skill Sets
  • 23. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!23 POWER OF CULTUREPOWER OF CULTURE ASSETS:ASSETS: PEOPLE AND CULTUREPEOPLE AND CULTURE ENVIRONMENTENVIRONMENT is one of trust, engagement, learning,is one of trust, engagement, learning, communication, listening and cooperation!communication, listening and cooperation! LEADERSHIPLEADERSHIP is at all levels!is at all levels! RESPONSIBILITYRESPONSIBILITY for own role!for own role! ALL SECTORSALL SECTORS to be utilizedto be utilized ENGAGEMENTENGAGEMENT has to be total!has to be total! CONTINOUS INNOVATIONCONTINOUS INNOVATION is top of mind in all sectors!is top of mind in all sectors! BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 4: ENGAGED CULTUREENGAGED CULTURE
  • 24. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 24 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 5: INTERNAL AND COMPETITIVE INTELLIGENCE MARKETPLACEMARKETPLACE Which Marketplace?Which Marketplace? What Products?What Products? Value?Value? Channels of RevenueChannels of Revenue WHERE AND WHAT IS YOUR SANDBOX?WHERE AND WHAT IS YOUR SANDBOX?
  • 25. 25 INTERNAL INTELLIGENCEINTERNAL INTELLIGENCE ANSWERSANSWERS ARE WITHIN THE ORGANIZATIONARE WITHIN THE ORGANIZATION SOLUTIONSSOLUTIONS TO SURFACE IS THE ISSUE.TO SURFACE IS THE ISSUE. CROSS FUNCTIONAL SUPPORT GROUPSCROSS FUNCTIONAL SUPPORT GROUPS INTERVIEWS:INTERVIEWS: INDIVIDUAL AND GROUPINDIVIDUAL AND GROUP INTEGRATED STRATEGYINTEGRATED STRATEGY RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!
  • 26. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 26 VENDOR COMMUNITYVENDOR COMMUNITY MOST UNDERUTILIZED ASSETMOST UNDERUTILIZED ASSET Vendor ConferenceVendor Conference  Products  Marketing  Logistics  Customer Experience  Competition  Innovative Solutions  Invite Cross-Functional Support members
  • 27. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!27 COMPETITION: Competitive IntelligenceCOMPETITION: Competitive Intelligence WHO? UNDERLYING COMPETITORS?WHO? UNDERLYING COMPETITORS? ““BEST IN CLASS”BEST IN CLASS”
  • 28. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 28 TEAM PROJECTTEAM PROJECT MERCHANDISINGMERCHANDISING STORESSTORES CHANNELSCHANNELS CROSS FUNCTIONALCROSS FUNCTIONAL SENIOR TEAM MEMBERSSENIOR TEAM MEMBERS TRUSTED VENDORSTRUSTED VENDORS BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 6: COLLABRATECOLLABRATE
  • 29. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 29 FINANCIAL and OPERATIONAL GOALS Plans vs. Current StatePlans vs. Current State “Work Sessions” with Finance, Merchants, Operations etc. Competitive IntelligenceCompetitive Intelligence Where are the opportunities?Where are the opportunities? BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 7: IN-DEPTH ANALYSISIN-DEPTH ANALYSIS
  • 30. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 30 PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW MARKET SHAREMARKET SHARE FINANCIAL ANALYSISFINANCIAL ANALYSIS ANALYSIS BY PRODUCT FILTERSANALYSIS BY PRODUCT FILTERS COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES
  • 31. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 31 PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW MARKET SHAREMARKET SHARE MARKET SHARE BY COMPETITOR PRODUCTS Comp. 1 Comp. 2 Comp. 3 Comp. 4 Comp. 5 Women's 10.0% 8.0% 4.0% 7.0% 6.0% Men's 4.0% 6.0% 8.0% 5.0% 4.0% Kids 5.0% 8.0% 7.0% 5.0% Footwear 8.0% 6.0% 7.0% Accessories 8.0% 6.0% 5.0% 1.0% 3.0% Intimate 6.0% 5.0% 4.0% 2.0% Fine Jewelry 5.0% Home 4.0% 7.0% 6.0%
  • 32. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 32 PRODUCT CATEGORY REVIEWPRODUCT CATEGORY REVIEW ADDITIONAL ELEMENTS:ADDITIONAL ELEMENTS: Inventory – Turn – ROIInventory – Turn – ROI Sales Sq. Ft. GM$ Sq. Ft.,Sales Sq. Ft. GM$ Sq. Ft., Marketing SpendMarketing Spend % of each element per month & year% of each element per month & year BREAKDOWN: Women’s, Men’s, Kids, Athletic, WorkBREAKDOWN: Women’s, Men’s, Kids, Athletic, Work FINANCIAL ANALYSIS SHOES 1,000,000s JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL SALES Reg 20$ 25$ 40$ 30$ 30$ 30$ 20$ 35$ 45$ 40$ 40$ 45$ 400$ Markdown 30$ 20$ 20$ 10$ 15$ 25$ 20$ 25$ 30$ 15$ 25$ 35$ 270$ TOTAL 50$ 45$ 60$ 40$ 45$ 55$ 40$ 60$ 75$ 55$ 65$ 80$ 670$ GM$ Regular 10$ 13$ 20$ 14$ 14$ 14$ 10$ 16$ 20$ 20$ 19$ 20$ 189$ Markdown 8$ 3$ 2$ 4$ 5$ 8$ 6$ 5$ 3$ 5$ 8$ 9$ 64$ TOTAL 17$ 16$ 22$ 18$ 19$ 21$ 16$ 21$ 23$ 25$ 27$ 29$ 253$ GM% Regular 48% 52% 50% 48% 45% 45% 48% 45% 45% 50% 48% 45% 47% Markdown 25% 15% 10% 35% 35% 30% 30% 20% 10% 35% 30% 25% 23% TOTAL 34% 36% 37% 45% 42% 38% 39% 35% 31% 46% 41% 36% 38%
  • 33. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 33 PRODUCT CATEGORY FILTERS:PRODUCT CATEGORY FILTERS: MARKET BASKET DEEP DIVE into multiple combinations of data MARKET BASKET WOMEN MEN SHOES TOTAL Dresses Sport Denim JR TOTAL Suiting Sport Denim YM Work TOTAL Women Kids ATH Men's Work WOMEN TOTAL 100% 30% 60% 40% 25% 40% 10% 30% 30% 15% 5% 60% 65% 40% 30% 30% 10% Dresses 30% 100% 40% 30% 15% 10% 8% 15% 20% 5% 1% 30% 50% 10% 7% 12% 3% Sport 60% 40% 100% 75% 40% 40% 5% 25% 30% 15% 2% 50% 60% 20% 10% 15% 4% Denim 40% 30% 75% 100% 25% 25% 5% 3% 30% 25% 10% 60% 60% 25% 15% 10% 5% JR 25% 15% 40% 25% 100% 20% 1% 15% 20% 20% 1% 40% 35% 30% 25% 5% 1% MEN TOTAL 40% 10% 40% 25% 20% 100% 40% 80% 50% 35% 50% 40% 25% 40% 30% 40% 30% Suiting 10% 8% 5% 5% 1% 40% 100% 60% 40% 20% 20% 30% 20% 20% 20% 30% 25% Sport 30% 15% 25% 3% 15% 80% 60% 100% 50% 30% 25% 40% 25% 35% 25% 40% 30% Denim 30% 20% 30% 30% 20% 50% 40% 50% 100% 45% 35% 40% 15% 30% 30% 40% 35% YM 15% 5% 15% 25% 20% 35% 20% 30% 45% 100% 10% 25% 10% 10% 25% 25% 10% Work 5% 1% 2% 10% 1% 50% 20% 25% 35% 10% 100% 30% 8% 15% 20% 30% 80% SHOES TOTAL 60% 30% 50% 60% 40% 40% 30% 40% 40% 25% 30% 100% 65% 40% 30% 35% 25% Women's 65% 50% 60% 60% 35% 25% 20% 25% 15% 10% 8% 65% 100% 60% 40% 30% 30% Kids 40% 10% 20% 25% 30% 40% 20% 35% 30% 10% 15% 40% 60% 100% 30% 45% 40% Athletic 30% 7% 10% 15% 25% 30% 20% 25% 30% 25% 20% 30% 40% 30% 100% 50% 40% Men's 30% 12% 15% 10% 5% 40% 30% 40% 40% 25% 30% 35% 30% 45% 50% 100% 80% Work 10% 3% 4% 5% 1% 30% 25% 30% 35% 10% 80% 25% 30% 40% 40% 80% 100%
  • 34. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 34 PRODUCT CATEGORIES FILTERSPRODUCT CATEGORIES FILTERS ANALYSIS OF EACH CATEGORYANALYSIS OF EACH CATEGORY LocalizationLocalization Time PeriodTime Period Product to Market Channel/PathProduct to Market Channel/Path Marketing: Product & ChannelMarketing: Product & Channel ““Purple Cow” ViewpointPurple Cow” Viewpoint
  • 35. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 35 MARKETINGMARKETING CUSTOMER REACHED?CUSTOMER REACHED? MARKETING CHANNELS?MARKETING CHANNELS? CHANNELS BEST REFLECTCHANNELS BEST REFLECT THE BRAND?THE BRAND? EFFECTIVENESS BY CHANNEL?EFFECTIVENESS BY CHANNEL? INNOVATIVE TESTSINNOVATIVE TESTS SOCIAL MEDIASOCIAL MEDIA REACH NEW CUSTOMERS?REACH NEW CUSTOMERS?
  • 36. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS!36 REVENUE CHANNELS:REVENUE CHANNELS: WHICH ONES FIT YOUR STRATEGY?WHICH ONES FIT YOUR STRATEGY? STORESSTORES B2C - CATALOGB2C - CATALOG E-COMMERCEE-COMMERCE B2BB2B WHOLESALE TVWHOLESALE TV
  • 37. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 37 COMPANY HISTORYCOMPANY HISTORY History: PAST vs. CURRENTHistory: PAST vs. CURRENT What is driving the Business?What is driving the Business? Revenue ChannelsRevenue Channels Competition: old and newCompetition: old and new Economic StatusEconomic Status Changes in Population DemographicsChanges in Population Demographics Technology – Innovation?Technology – Innovation? Other Elements?Other Elements?
  • 38. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 38 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 8 SUPREMACY THROUGH COMPETITIVE ADVANTAGESSUPREMACY THROUGH COMPETITIVE ADVANTAGES BUSINESS WITH THE MOST INNOVATIVEBUSINESS WITH THE MOST INNOVATIVE COMPETITIVE ADVANTAGES WINS!COMPETITIVE ADVANTAGES WINS! ProductProduct Price, Value, Quality etc.Price, Value, Quality etc. Business ModelBusiness Model Customer Value PropositionCustomer Value Proposition Most positive Customer TouchpointsMost positive Customer Touchpoints
  • 39. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 39 COMPETITIVE SUPREMACYCOMPETITIVE SUPREMACY BUILDING COMPETITIVE SUPREMACY COMP. 1 COMP. 2 COMP. 3 COMP. 4 COMP. 5 FINANCIAL ROI MARGIN SALES PRODUCT ASSORTMENT QUALITY UNIQUE BRAND POSITION HIGH MIDDLE LOW PRODUCT CHANNEL SPEED TO MARKET GEOGRAPHY CUSTOMER SERVICE VALUE ENGAGEMENT
  • 40. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 40 STAGE II:STAGE II: EVALUATE, COLLABORATE, ANDEVALUATE, COLLABORATE, AND TESTTEST USE OF MULTIPLE SOURCESUSE OF MULTIPLE SOURCES UNDERSTAND MULTIPLE OPTIONSUNDERSTAND MULTIPLE OPTIONS CREATED ALTERNATIVE SOLUTIONSCREATED ALTERNATIVE SOLUTIONS BUILD QUANTIFIABLE TESTSBUILD QUANTIFIABLE TESTS INTEGRATED STRATEGYINTEGRATED STRATEGY
  • 41. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 41 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 9: ABILITY TO SYNTHESIZE HIGHLY QUANTITATIVEABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE AND QUALITTATIVE DATA INTO A LOGICAL CONCLUSIONAND QUALITTATIVE DATA INTO A LOGICAL CONCLUSION
  • 42. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 42 BRAND POSITION,BRAND POSITION, CUSTOMER VALUE PROPOSITIONCUSTOMER VALUE PROPOSITION andand BUSINESS MODELBUSINESS MODEL BRAND POSITIONBRAND POSITION CUSTOMER VALUECUSTOMER VALUE PROPOSITIONPROPOSITION (CVP)(CVP) BUSINESS MODELBUSINESS MODEL BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 10: INTEGRATED BRAND STRATEGYINTEGRATED BRAND STRATEGY
  • 43. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 43 STAGE III:STAGE III: ASSEMBLE AND EXECUTEASSEMBLE AND EXECUTE  REQUIRES THE SKILL OF SYNTHESISREQUIRES THE SKILL OF SYNTHESIS CREATE STRATEGYCREATE STRATEGY GATHER DATAGATHER DATA ALIGN SOLUTIONSALIGN SOLUTIONS INTEGRATE ALL ELEMENTSINTEGRATE ALL ELEMENTS CROSS FUNCTIONAL SENIOR TEAMCROSS FUNCTIONAL SENIOR TEAM SUMMARIZESUMMARIZE DISCUSSIONDISCUSSION HOT BUTTONSHOT BUTTONS COLLABORATIONCOLLABORATION
  • 44. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 44 LITMUS TEST :LITMUS TEST : SYNTHESIS BRAND, CVP, BUSINESS MODEL IN SYNCBRAND, CVP, BUSINESS MODEL IN SYNC PURPLE COWPURPLE COW INNOVATIVE COMPETITIVE ADVANTAGESINNOVATIVE COMPETITIVE ADVANTAGES PROFITABLEPROFITABLE SUSTAINABLESUSTAINABLE DEFENDABLEDEFENDABLE SCALABLESCALABLE INTERNAL ALIGNMENTINTERNAL ALIGNMENT SUPPORT FROM INDUSTRYSUPPORT FROM INDUSTRY
  • 45. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 45   FINAL STRATEGY:FINAL STRATEGY: The Core Senior Team to the Company must make the final decision. Incorporate as many of the goals as possible into a seamless comprehensive and a collaborative Strategy. Congratulations! You have completed 90% of the Goal.
  • 46. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 46 COMMUNICATIONCOMMUNICATION COMMUNICATION IS THE LAST 10% AND MOST CRUCIAL TO SUCCESS OF THE STRATEGY. SUCCESS TIED DIRECTLY TO COMMUNICATIONSUCCESS TIED DIRECTLY TO COMMUNICATION DISSEMINATEDISSEMINATE ACKNOWLEDGEMENTACKNOWLEDGEMENT ANTICIPATE ISSUESANTICIPATE ISSUES CHANGE MANAGEMENTCHANGE MANAGEMENT BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 11: COMMUNICATION
  • 47. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 47 BUILDING A FOUNDATION:BUILDING A FOUNDATION: PILLAR NO# 12 CONTINUOUS INNOVATIONCONTINUOUS INNOVATION THE “STRATEGY” FOR A RETAIL PLATFORMTHE “STRATEGY” FOR A RETAIL PLATFORM IS A LIVING ORGANISM!IS A LIVING ORGANISM! INNOVATION KEEPS IT HEALTHY!INNOVATION KEEPS IT HEALTHY!
  • 48. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 48 SUMMARYSUMMARY A STRATEGIC PROCESS THAT CAN BE USED BYA STRATEGIC PROCESS THAT CAN BE USED BY THE ENTIRE ORGANIZATION. EVERYONE HASTHE ENTIRE ORGANIZATION. EVERYONE HAS CONTRIBUTED, TAKES OWNERSHIP, UNDERSTANDSCONTRIBUTED, TAKES OWNERSHIP, UNDERSTANDS AND CAN EASILY ARTICULATE TO OTHERS.AND CAN EASILY ARTICULATE TO OTHERS.
  • 49. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 49 ANDERSON’s 12 PILLARS:ANDERSON’s 12 PILLARS: BUILDING A FOUNDATION 1.1. 10,000 FT POINT OF VIEW10,000 FT POINT OF VIEW 2.2. CUSTOMER CENTRIC FOCUSCUSTOMER CENTRIC FOCUS 3.3. MULTI-DIMENSIONAL SOLUTIONSMULTI-DIMENSIONAL SOLUTIONS 4.4. ENGAGED CULTUREENGAGED CULTURE 5.5. INTERNAL & COMPETITIVE INTELLIGENCEINTERNAL & COMPETITIVE INTELLIGENCE 6.6. COLLABORATECOLLABORATE 7.7. IN-DEPTH ANALYSISIN-DEPTH ANALYSIS 8.8. SUPREMACY THROUGH COMPETITIVE ADVANTAGESSUPREMACY THROUGH COMPETITIVE ADVANTAGES 9.9. ABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE ANDABILITY TO SYNTHESIZE HIGHLY QUANTITATIVE AND QUALITATIVE DATA INTO A LOGICAL CONCLUSION.QUALITATIVE DATA INTO A LOGICAL CONCLUSION. 10.10.INTEGRATED BRAND STRATEGYINTEGRATED BRAND STRATEGY 11.11.COMMUNICATIONCOMMUNICATION 12.12.CONTINUOUS INNOVATIONCONTINUOUS INNOVATION
  • 50. RETAIL STRATEGY : FIND THE BEST CUSTOMER FOR YOUR BUSINESS! 50     Do not repeat the tactics which haveDo not repeat the tactics which have gained you one victory, but let yourgained you one victory, but let your methods be regulated by the infinitemethods be regulated by the infinite variety of circumstancesvariety of circumstances Sun Tzu c. 490 BC, Chinese military strategist