How is the Retail business?
The Retail is the term to define the mass marketing of retail products.
Encompasses the business sector ranging from supermarkets, supermarkets, stores, pharmacies, convenience stores, specialty, electronics, clothing and footwear, do it yourself, department stores and bank branches to fast food restaurants.
As for sales strategy, you must first create a pricing strategy.
There are many strategies that can be followed, but in Mexico the majority of retailers are following two:
- Every Day Low Prices (EDLP Every Day Low Price).
- High and Low (Hi-Low).
The strategy of Everyday Low Prices promises consumers the lowest prices without having to wait for promotions or rebates.
In the High-low strategy the customers do not have a clear perception of the price that should have the product, so they will have full confidence that if a discounted price is a low price then.
The next level is the definition of the categories, which are groups of related or similar products, usually grouped in departments such as: fresh, chilled or electronic.
Each category is given as a mini business has its own objectives, strategies and expected profitability.
It is at this level where there is a great collaboration between the producer of consumer goods (CPG) and retail.
The objective of this relationship is to increase sales of the entire category, not just the individual products or brands.
Within the category management to achieve the goals for each category is assigned a role.
The most common roles are:
- Generating Traffic: It focuses on attracting consumers to the store and / or a specific category.
- Furtherance of Transactions: It is intended to increase the average transaction amount. With more expensive products, larger presentations or impulse purchases.
- Creators of margin or image: Looking to increase profits through value-added products or higher quality and communicate an image that differentiates the retailer competition.
Today there are also business strategy category focuses on the needs of consumers and how to satisfy them.
Administration by Needs
Thus individual grouped products. Each product can be in several different needs.
The requirements include:
- Satisfy cravings with prepared food, candy, snacks, candy, coffee, cookies and ice cream.
- Quenching thirst with soft drinks, juices, water, sports drinks or energy
- Hunger for, cookies and pastries, yogurts, flavored milk, coffee or takeout.
- Provide meetings with wine, disposable, soft drinks, ice, snacks, beers.
- Services such as deposits, tickets, air time.
- Refill the house, cleaning products, personal care and pantry
This seeks to promote visits by consumers based on what they need to meet at the store.
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