Saturday, February 27, 2010

Retail = Fast reflexes and foresight

I appreciated this Retailer who has reacted by leveraging the budget. Although they do not lose anything because the stocks would have been invoiced at existing prices, this preemptive strike is very good for the following reasons –
  • Customer trust and loyalty: Customers would increasingly trust this Retailer because they demonstrate responsiveness. A key factor in building loyalty.
  • An opportunity to increase sales and liquidate stocks: Especially in a format where stock holding value is high and any opportunity to sell is welcome.
  • Vendor respect: Such a Retailer would stand tall in the eyes of the vendors who would then increasingly cooperate instead of having conflicts.
All in all, a smart move and well worth emulating.

Now, advertising is not a simple business. One needs to have the artwork ready, media space booked, the material sent in advance and so on. So, how did this Retailer react in less than 24 hours?

Simple. It’s all about Foresight.

Book media space. Give a material. Meanwhile have two artworks ready. One talking about how the prices are reduced from today (If the budget led to price drop) and another about holding the old prices in the case of price increase. The budget speech ended post lunch yesterday. An hour or so to decide and send a new artwork to the publications.

Sounds simple isn’t it? It is. But involves a lot of planning and thinking and hard work. That’s Retail Marketing for you.


Siddhs Quest said...

clean explanation about retail marketing.

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