OR HOW YOU,..RETAILER CONTINUOUSLY HAS TO
ACT, IN ORDER TO STAY ON TOP.
In a todays difficult market, where every retailer looks with a pessimistic feeling, towards the future (especially after more than 5 years of tough economical crisis), it is more than time for each store owner, to revise their positioning strategy, in order to survive or prepare themselves for the future to come.
It is clear that by maintaining the existing midlevel segment (by trying to keep a balance between price and quality), few interesting growing perspectives will exist.
So,..'DON'T GET STUCK IN THE MIDDLE'..and focus your business and become more aggressive.
Start to revise your strategic positioning. This position is something very fluctual and has to be revised permanently, in order to be or stay on the top. Don't forget, the market is changing permanently.
-How do you want, that you clients see you?
-What is the difference between you and your competitors?
-Why clients buy in your store and not with your competitors?
-Where can you be different than your competitors?
As mentioned in previous posts,..it is the art of being different, that will position your company or store out of the crowd.
So a perfect 'Brand Positioning' is needed.
Here a small example of the local grocery store?
By 'SPECIALIZING'.
Did you make a deep analyze of your position towards above competitor?
Did you analyze, where you can be different than above competitor?
Did you make your strength a weakness analysis?
Maybe you could do the following to be different:
- Home delivery.
- Prepared vegetable and or fruit salads.
- Specialize in more exotic fruits and vegetables.
- More personal service.
- More flexible shopping hours.
- More fresh and ecological vegetables.
- Client loyalty card.
- Special personal offers.
- Small quantity packs (a quiet abandon segment for the increasing single alone living market)
- Etc....
As you can see,..you have to be creative, know how to analyze your market, asking your suppliers and clients their opinions and be willing to change and adapt your business very fast.
By using a value curve,... (see example 'The Blue Ocean Strategy'), you will be able to position the current situation of your store or brand. By implementing different actions, depending the brand position you want to obtain,...you will receive a clear plan and a guideline to undertake action.
If you have a grocery store..or even if you are the owner of Zara,...a permanent revised strategic position is key in order to be successful.
Have a look to the following case of the 'the Cirque du Soleil'
As you can see in above curve, you will understand why 'Cirque du Soleil' is so successful. They are just completely different than the average entertainment attraction. They bring something completely new. (example. no animals but yes a amazing unique venue and always different amazing themes)
If you want to learn more about this curves...just visit http://www.blueoceanstrategy.com/.
Positioning your company, can be done into a 'Low-cost Strategy' or a 'Differentiation Strategy'. Both are valuable and can be successful.
In a 'Low-cost Strategy', you will lower all extra costs on product, marketing (design, packing, etc...) and produce mainly into low salary countries. You will offer a quiet basic product with a very low cost production and strong selling price. (example retailer 'Primark').
In a 'Differentiation Strategy', you will create a unique image and or value added idea of your product. Something your clients are willing to pay for.
Production quality, brand image or name, design and product quality features, service, innovation exclusive retail channels,etc.. are some of the keys elements, to implement into this strategy. (example retailer 'Abercrombie')
As you can see, as soon as you know your target group, you will be able to develop a clear strategy and quality service, allowing you to stick out of the crowd.
Just lets start changing our company and putting it on a curve. It is the beginning and a perfect guideline to your successful future.
Just have a look to this very interesting video of Brian K. McCarthy about positioning, differentiation and value proposition.
