Types of Retail: Classifying Retailers by Strategy Mix

For the reputation management company they need to understand the types of retail there are and how they can classify retailers by strategy mix. The retailer strategy mix involves the different components of a retail strategy and thee include the merchandising, promotion, location/distribution, store atmospherics, pricing, customer service and this all revolves around the chosen target market for the products or services offered. The different elements of this strategy mix include the marketing mix which includes the place, product, price, people, promotion, packaging, production, process, planet, and profit. For the place this involves the store location and the store atmosphere, for products it ties in with the good and services that are offered, how they merchandise and the width and depth of products, for the price the pricing tactics are important and the people is the customer service that is offered.

There are store-based retail strategy mixes food-oriented which is convenience store, conventional supermarket, food-based superstore, box store and the warehouse store. For the general strategy mixes it involves the specialty store, traditional department, full-line discount store, variety store, off-price chain, factory outlet, membership club, and for flea markets. When it comes to off price retailing strategy there are pay vendor quickly, do not promote brand name so as to anger department and specialty shops which are vendor’s traditional customers and to buy all of the vendor’s excess inventory, their cancelled orders, returns regardless of the color, size or style. For these off price retailers, they can also arrange for vendors to produce special goods for off price retailers in order to reduce loss on fabrics, and to keep subcontractors busy. How off price retailers work is they will pay 10 to 20 percent of the vendor’s traditional wholesale so if a jacket is 500$, they would purchase it for 50$ and sell it for 100$.

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