Determination of the strategy of trade enterprises
Management of the Company
Strategy of trade enterprises defined by:
• target market retail enterprise;
• trade, which plans to use the enterprise to meet the needs of the target market;
• methods to achieve and maintain the competitiveness of the enterprise (creating and maintaining competitive advantages).
Target market businesses understand the segment (segments) of the market for which the company plans to focus its resources and elements of the trade.
Form of trade includes a set of elements (the expected goods and services, policies, pricing, advertising activities, location of enterprises and approaches to its design and presentation, etc.).
For example, the strategy known trading company Gymboree, specializing in children's clothing and accessories are: 1) target consumers - families with children less than six years; 2) form of trade there are high-quality branded children's clothing bright colors with clear funny pictures. The product is sold in stores of 100-150 m2 area located in regional shopping malls.
The design involves the use of the bright colors, good lighting. The advantages of Gymboree in front of her principal competitor company gapkids are just lies in a unique family atmosphere of the stores. On the walls of shops in a certain order to hang clothes to buyers easier and more convenient to choose the necessary items of clothing, and the aisles allow customers to walk through the halls with strollers. While parents shop, children play in the designated areas or watching videos.
The strategy of the commercial enterprise are considering two elements: buyers and competitors. Success is seeking a company who are able to meet the needs of its target customers better than do competitors. Choosing the target market, the company determines which specific customers it tries to serve, and in determining the form of trade indicates the General characteristics of trade (goods, services, prices, location, etc.), which will meet the needs of customers.
Deserves the experience of development strategies in major worldwide known trading companies, such as the gapkids are just, The Gap, Kmart, McDonald's, Neiman Marcus, etc.
To ensure competitiveness and a permanent increase of the growth rate of their profits trading companies mostly use such areas of growth strategy: 1) market penetration; 2) expansion of new forms of trade; 3) diversification In the case of market penetration of the company's investments are directed to already existing customers, using the usual company forms of retail trade. As an example, the increase in sales due to the fact that buyers will often visit the shop, or by attracting targeted buyers that purchased products in other markets of the region.
One way to achieve this is to open new stores, which should be conveniently located, and the other in training for sales skills cross-trade. Cross trade means that sellers of one commodity division offered to customers to buy goods in other departments like "a load". For example, a seller who just sold a dress, leads the buyer in the accessories Department with a view to pick up a handbag or scarf. Successful trading allows you to increase the volume of sales of goods for the same amount of buyers and in the same retail space.
Market expansion is accomplished through the use of the same forms of trading in the new market segments. For example, the strategy of the firm The Gap is to use the specialized shops for the sale of modern sporting clothes of wealthy men and women aged 20 to 45 years. The creation of the gapkids are just is an attempt to expand the market in which the same form of trading is aimed at a different segment of consumers, families with children from 2 to 12 years.
Diversification (from lat. diversus - various, remote) that involves the penetration of commercial firms in new forms, industry, sector, market segments, expanding the range of goods, services and gradual transition to diversified systems.
An example of a successful diversification may be today, the organization mainly in large domestic retail enterprises own production of a wide range of confectionery, culinary products, meat, fish and vegetable semi-finished products, ice cream, soft drinks, and the establishment of a retail network for their implementation, the provision of paid services for the protection of private car buyers, creating tooling and Parking for them.
An example of a successful diversification enterprise is also a massive McDonald's fast food, which are common in many countries, have a high level of profitability and most importantly, enjoy great popularity among the population.