When it comes to selling a product, a lot of strategies are involved. From branding to marketing, companies take into account different factors in order to stand out from the competition. In an increasingly competitive market and a consumer landscape that’s been affected tremendously by the ongoing COVID-19 pandemic, brands need to be able to highlight what makes them unique and use these qualities to encourage customers to purchase their products.
Among the important strategies, brands need to focus on is retail strategy. But what is retail strategy anyway, and why do companies need to invest valuable time and resources in it?
What is a retail strategy?
Before one gets to grasp the fundamentals of retail strategy, they need to understand what retail means to begin with. As per Cambridge, a simple definition of retail is the activity of selling goods to the public, usually in stores.
While it does involve the actual selling of the product, a lot of people don’t realize that retail is not just about the goods brands are trying to sell, it also involves the service provided to the end customer. So what role does retail strategy play?
Fundamentally, a brand’s retail strategy is part of the overall strategic marketing plan that entices or reaches consumers in a direct manner. This involves product pricing or discounts, commission structure, promotional schemes, the demonstration of product performance, as well as commission structure for retails.
This tactic helps both the manufacturers and the retailers maximize profit while attracting the target audience to patronize the product. It’s a mix of appealing to what would make people buy a product while making sure everyone involved in that purchase wins.
Retail strategies make consumers feel the need to purchase the brand’s product. That’s why it’s important for companies to have the right product at the right timing. The strategy of retailers can also help them maximize their sales in a shorter period of time.
How does a brand come up with a retail strategy?
The retail strategy of a brand plays a crucial factor in how it will be able to meet its objectives. With a clear and definite plan, companies can draw up a framework to attract their target market, and build long-lasting relationships with their consumers. That is why every aspect of a business operation should work together to come up with an effective retail strategy.
Although different companies have their own unique way of catering to their customers, here are some common denominators brands should consider in order to formulate their retail strategy:
1. Know your customers
Understanding your target audience is a crucial factor in designing a retail strategy because brands need to be able to resonate with them to encourage their purchase. Aside from being familiar with their general preferences, it’s important for brands to keep themselves updated with the latest issues and trends in the market.
2. Encourage new customers while building a loyal customer base
While it’s a must for any brand to encourage more people to patronize their products, it’s equally essential for brands to retain old customers. The existing customer base encourages repeat purchases while new consumers mean an expansion for the business.
3. Understand your business
While this may sound a bit obvious, having a comprehensive understanding of your business does play a factor in how you should sell your product. Thus, brands should consider the nature of the business as well as that of the product when devising their retail strategy. To add to these, brands should also bear in mind the location and convenience of their customers.
4. Study your competition
Amid the increasingly competitive business landscape, it is imperative that brands take a good look and even monitor companies that sell the same or similar products. This is so they can learn what methods work for others, devise ways to differentiate themselves, or even try to find an edge over their competitors.
While there is no clear-cut way to guarantee success in retail strategy, there are a lot of tactics brands can explore in order to find the formula that would work best for them. One method is through partnerships with other brands. By partnering with different retailers from different nature of businesses, brands get to tap the audience of that particular company. It also builds their brand value.
Another method is through social media campaigns. As per Esquire, the Philippines remain to be the social media capital of the world. That’s why brands should take advantage of their different social media platforms via targeted boosts and compelling content.
One effective way to step up the ante of a brand’s retail strategy is through the strategic placement of retail signages. People tend to gravitate towards visually appealing displays, and that’s why brands should consider partnering with a trusted direct supplier of marketing essentials such as Brandmaximizers.
From roll-up banners to promotion booths, easel banner stands to lightboxes, Brandmaximizers is your one-stop shop for top-quality products that will help expand your customer base. With over 15 years of experience, Brandmaximizers has helped top companies with their Pop, Sign, and Display advertising needs.
