{"id":2602,"date":"2018-04-13T22:52:22","date_gmt":"2018-04-13T22:52:22","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/?post_type=chapter&#038;p=2602"},"modified":"2024-04-25T02:01:40","modified_gmt":"2024-04-25T02:01:40","slug":"retail-mix","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/chapter\/retail-mix\/","title":{"raw":"The Retail Mix","rendered":"The Retail Mix"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Explain the retail mix<\/li>\r\n<\/ul>\r\n<\/div>\r\nHow do we take our retail planning strategy and put it into an actionable plan?\r\n\r\nPart of the success of any retailer is taking that strategic plan and breaking it apart into actionable and meaningful steps that will lead to success. A well thought out and planned retail mix provides the retailer with a focused position and helps differentiate them from the competition. A retail mix, defined, is the marketing plan put in place to address key factors such as location, price, personnel, services, and goods. The retail mix is also referred to as the \"6 Ps.\"\r\n\r\n[caption id=\"attachment_5923\" align=\"aligncenter\" width=\"550\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/04\/05220403\/RetailMix_update.png\" target=\"_blank\" rel=\"noopener\"><img class=\"wp-image-5923\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/04\/05220341\/RetailMix_update.jpg\" alt=\"hexagonal chart with the hexagon in the middle as the customer and the six hexagons surrounding it include place (location, operating hours, space), product (service level, categories, assortment, brands), price (Mark-down policy, price emphasis, margins), presentation (merchandising, uniforms, fleet), personnel (internal marketing, service support, selling), and promotion (PR, advertising).\" width=\"550\" height=\"614\" \/><\/a> Click for a larger image.[\/caption]\r\n\r\nOne important thing to keep in mind is that any competitive advantages you have in your strategy should help form your retail mix.\u00a0 In addition, the retail mix should always have the target market in mind.\u00a0 The retail mix will differ based on the store and the type of product offered to the customer.\r\n\r\nDiscussing and evaluating your retail mix in the organization offers a number of benefits.\u00a0 First, you are addressing the needs of your target market.\u00a0 In essence it forces the retailer to make the customer top of mind and foremost in all strategy decisions.\u00a0 It also allows for a business planning strategy within the retailer.\u00a0 By approaching all six components the retailer is ensuring they are able to meet the needs of the customer using all these components.\u00a0 Lastly, it allows the retailer to respond to competition.\u00a0 For example, a key competitor for JCPenney is Kohl's.\u00a0 If Kohl's drops prices a national brand such as Levi's, JCPenney might follow suit.\r\n\r\nLet's now take a look at the components of the <strong>retail mix<\/strong> that are ultimately the pieces of the retailer's strategy.\r\n<h2>1.\u00a0Price<\/h2>\r\nWhat is my pricing strategy?\u00a0 What is my markup strategy and how does that affect my overall retail price?\u00a0 You must make sure you calculate your retail price based on the markup you receive and not the costs involved.\u00a0 You also want to think about profitability and relate this back to the goals of your area as well as your organization.\r\n<h2>2. Promotion<\/h2>\r\nWhat promotional tools will you use to influence the consumer's purchase decision and, overall, their intention to purchase?\u00a0 This is where you also want to make sure you include a budget that shows where resources are allocated as well as a time table for the promotional activities.\u00a0 Remember to include specific examples of your proposed promotional activities.\u00a0 Some examples include online promotions, print advertising, and any television advertising.\r\n<h2>3. Place<\/h2>\r\nWhat are the hours of operation for your store?\u00a0 How many employees do you need and when do you need them?\u00a0 This is where you can also include a general description of the responsibilities of each associate along with some type of detailed info on the organization's structure.\u00a0 This could also be dependent upon the area in which you are located as well as the needs of the customer.\r\n<h2>4. Product<\/h2>\r\nWhat type of product do you intend to carry?\u00a0 What is the depth (how much you will carry of an item) as well as the breadth (number of SKUs) you will carry in your assortment?\u00a0 What is your anticipated turn as well as inventory levels?\u00a0 Later we will discuss in more detail the importance of inventory turnover and how it contributes to profitability.\u00a0 This is where you want to make sure you have adequate inventory levels to meet customer demand.\u00a0 Too much product could lead to excessive markdowns which deteriorates profitability while too little desired merchandise might lead to missed sales opportunities.\u00a0 Does your product meet your customer's needs?\r\n<h2>5. Presentation<\/h2>\r\nWill you have a free-standing location?\u00a0 Will you be located in the mall?\u00a0 How is the location you have chosen a good fit for your target market?\u00a0 It is during this time you will also want to provide a thorough trade analysis that shows the population in the area and how they are a good fit for your business.\r\n<h2>6. Personnel<\/h2>\r\nHow are you selling to your customers?\u00a0 What kind of internal marketing supports your sales team? What are the graphics that set your store apart?\u00a0 What does the signage look like inside and outside of your store?\u00a0 These are all key elements you want to consider.\r\n\r\nFor the final segment of this section let's take a look at how we the retailer can take the one element of the mix (product) and transform it into a customer experience as well as why this is important.\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=4669133&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=573&amp;video_id=7ow1o3feSlE&amp;video_target=tpm-plugin-dxzsdmlc-7ow1o3feSlE\" width=\"800px\" height=\"500px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nYou can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Retail+Managment\/Transcripts\/CuratedRetailingTailoringtheProductMixtoaCustomerExperience_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Curated Retailing: Tailoring the Product Mix to a Customer Experience\" (opens in new window).<\/a>\r\n<div class=\"textbox tryit\">\r\n<h3>practice questions<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/f4efa2b2-da04-439a-8b15-5d0598fce2a9\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Explain the retail mix<\/li>\n<\/ul>\n<\/div>\n<p>How do we take our retail planning strategy and put it into an actionable plan?<\/p>\n<p>Part of the success of any retailer is taking that strategic plan and breaking it apart into actionable and meaningful steps that will lead to success. A well thought out and planned retail mix provides the retailer with a focused position and helps differentiate them from the competition. A retail mix, defined, is the marketing plan put in place to address key factors such as location, price, personnel, services, and goods. The retail mix is also referred to as the &#8220;6 Ps.&#8221;<\/p>\n<div id=\"attachment_5923\" style=\"width: 560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/04\/05220403\/RetailMix_update.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5923\" class=\"wp-image-5923\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2986\/2018\/04\/05220341\/RetailMix_update.jpg\" alt=\"hexagonal chart with the hexagon in the middle as the customer and the six hexagons surrounding it include place (location, operating hours, space), product (service level, categories, assortment, brands), price (Mark-down policy, price emphasis, margins), presentation (merchandising, uniforms, fleet), personnel (internal marketing, service support, selling), and promotion (PR, advertising).\" width=\"550\" height=\"614\" \/><\/a><\/p>\n<p id=\"caption-attachment-5923\" class=\"wp-caption-text\">Click for a larger image.<\/p>\n<\/div>\n<p>One important thing to keep in mind is that any competitive advantages you have in your strategy should help form your retail mix.\u00a0 In addition, the retail mix should always have the target market in mind.\u00a0 The retail mix will differ based on the store and the type of product offered to the customer.<\/p>\n<p>Discussing and evaluating your retail mix in the organization offers a number of benefits.\u00a0 First, you are addressing the needs of your target market.\u00a0 In essence it forces the retailer to make the customer top of mind and foremost in all strategy decisions.\u00a0 It also allows for a business planning strategy within the retailer.\u00a0 By approaching all six components the retailer is ensuring they are able to meet the needs of the customer using all these components.\u00a0 Lastly, it allows the retailer to respond to competition.\u00a0 For example, a key competitor for JCPenney is Kohl&#8217;s.\u00a0 If Kohl&#8217;s drops prices a national brand such as Levi&#8217;s, JCPenney might follow suit.<\/p>\n<p>Let&#8217;s now take a look at the components of the <strong>retail mix<\/strong> that are ultimately the pieces of the retailer&#8217;s strategy.<\/p>\n<h2>1.\u00a0Price<\/h2>\n<p>What is my pricing strategy?\u00a0 What is my markup strategy and how does that affect my overall retail price?\u00a0 You must make sure you calculate your retail price based on the markup you receive and not the costs involved.\u00a0 You also want to think about profitability and relate this back to the goals of your area as well as your organization.<\/p>\n<h2>2. Promotion<\/h2>\n<p>What promotional tools will you use to influence the consumer&#8217;s purchase decision and, overall, their intention to purchase?\u00a0 This is where you also want to make sure you include a budget that shows where resources are allocated as well as a time table for the promotional activities.\u00a0 Remember to include specific examples of your proposed promotional activities.\u00a0 Some examples include online promotions, print advertising, and any television advertising.<\/p>\n<h2>3. Place<\/h2>\n<p>What are the hours of operation for your store?\u00a0 How many employees do you need and when do you need them?\u00a0 This is where you can also include a general description of the responsibilities of each associate along with some type of detailed info on the organization&#8217;s structure.\u00a0 This could also be dependent upon the area in which you are located as well as the needs of the customer.<\/p>\n<h2>4. Product<\/h2>\n<p>What type of product do you intend to carry?\u00a0 What is the depth (how much you will carry of an item) as well as the breadth (number of SKUs) you will carry in your assortment?\u00a0 What is your anticipated turn as well as inventory levels?\u00a0 Later we will discuss in more detail the importance of inventory turnover and how it contributes to profitability.\u00a0 This is where you want to make sure you have adequate inventory levels to meet customer demand.\u00a0 Too much product could lead to excessive markdowns which deteriorates profitability while too little desired merchandise might lead to missed sales opportunities.\u00a0 Does your product meet your customer&#8217;s needs?<\/p>\n<h2>5. Presentation<\/h2>\n<p>Will you have a free-standing location?\u00a0 Will you be located in the mall?\u00a0 How is the location you have chosen a good fit for your target market?\u00a0 It is during this time you will also want to provide a thorough trade analysis that shows the population in the area and how they are a good fit for your business.<\/p>\n<h2>6. Personnel<\/h2>\n<p>How are you selling to your customers?\u00a0 What kind of internal marketing supports your sales team? What are the graphics that set your store apart?\u00a0 What does the signage look like inside and outside of your store?\u00a0 These are all key elements you want to consider.<\/p>\n<p>For the final segment of this section let&#8217;s take a look at how we the retailer can take the one element of the mix (product) and transform it into a customer experience as well as why this is important.<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=4669133&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=573&amp;video_id=7ow1o3feSlE&amp;video_target=tpm-plugin-dxzsdmlc-7ow1o3feSlE\" width=\"800px\" height=\"500px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>You can view the <a href=\"https:\/\/course-building.s3-us-west-2.amazonaws.com\/Retail+Managment\/Transcripts\/CuratedRetailingTailoringtheProductMixtoaCustomerExperience_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Curated Retailing: Tailoring the Product Mix to a Customer Experience&#8221; (opens in new window).<\/a><\/p>\n<div class=\"textbox tryit\">\n<h3>practice questions<\/h3>\n<p>\t<iframe id=\"assessment_practice_f4efa2b2-da04-439a-8b15-5d0598fce2a9\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/f4efa2b2-da04-439a-8b15-5d0598fce2a9?iframe_resize_id=assessment_practice_id_f4efa2b2-da04-439a-8b15-5d0598fce2a9\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2602\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>image of retail mix. <strong>Authored by<\/strong>: BronHiggs. <strong>Provided by<\/strong>: Wikimedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Retail_mix.jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:Retail_mix.jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Curated Retailing: Tailoring the Product Mix to a Customer Experience. <strong>Authored by<\/strong>: Euromonitor International. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/7ow1o3feSlE\">https:\/\/youtu.be\/7ow1o3feSlE<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":82555,"menu_order":18,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"image of retail mix\",\"author\":\"BronHiggs\",\"organization\":\"Wikimedia\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Retail_mix.jpg\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Curated Retailing: Tailoring the Product Mix to a Customer Experience\",\"author\":\"Euromonitor International\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/7ow1o3feSlE\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","CANDELA_OUTCOMES_GUID":"a70291a7-e02b-4b85-a0cb-c28018864629, 720ccb79-c9e3-4af6-b5cb-d6fc0cca58bf","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2602","chapter","type-chapter","status-publish","hentry"],"part":1631,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/users\/82555"}],"version-history":[{"count":24,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2602\/revisions"}],"predecessor-version":[{"id":6350,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2602\/revisions\/6350"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/parts\/1631"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2602\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/media?parent=2602"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapter-type?post=2602"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/contributor?post=2602"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/license?post=2602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}