The retail industry is constantly changing along with technological changes, business developments and consumer needs. Retail business is all business activity related to sales and service to consumer for individual usage as individual or family. In order to succeed in a competitive retail market, retailers must be able to offer the right product, at the right price, time, and place. Therefore, the understanding of retailers towards the characteristics of the target market or consumers to be served is very important.
In its operations, retail actors perform several functions, among others, assisting consumers in providing various products and services. Running the function of breaking and adding value of the product, overall retail business managers require the implementation of management functions are integrated both the functions of finance, marketing, human resources, and operational. So retailers can understand fully about the scope of its retail business, the way its development strategy and business management.
Retail strategy is a statement that explains things:
- Target market, market segments that are planned to be served are related to resource-focused activities that must be prepared by retail
- The planned format will be used to meet the needs of the target market. Retail format is merged, retail based on the nature or characteristics of the goods and services offered, pricing policies, advertising and promotion programs, design shops, and special locations.
- he basis of retail planning to obtain a sustainable competitive advantage or the advantage of long-term sustainable competition.
The concept of retail is a management orientation that focuses on retail in determining the needs of the target market and meet its needs more effectively and efficiently. Successful Retailers must meet the needs of customers in a segment of the market served better than those done by competitors. The main task in developing a retail business is to set a target market. This process begins with defining market segmentation. Important things to watch out for in the retail business
Consumer loyalty means consumer loyalty to shopping at a particular retail location. Having a loyal customer is an important method of maintaining the benefits of competitors, if having a loyal customer means the consumer has a reluctance to become a customer in competing retailers
Loyalty program is part of the overall relationship management among consumers, This program is commonly run in retail business, loyalty program in collaboration with customer relationship management / Customer Relationship Marketing.
Location is a major factor in consumer selection. This is also a competitive advantage that is not easily imitated.
Human Resource Management
Retailing is an intensive workforce business, employees have an important role in providing services to consumers and building consumer loyalty.
Distribution & information systems
All retailers strive to manage their business efficiently, they continue to meet the needs of consumers, and at the same time provide consumers with goods at better prices than their competitors or decide to use the opportunity to draw the attention of consumers from competitors by offering services, goods and Better visual representation.
Develop branded brands (also called store brands) which are products developed and marketed by retail and available only from the retail.
It takes time and effort to build a tradition and reputation for customer service, because good customer service is a valuable strategic asset.