Retail Marketing Strategies
Added on 2020-03-23
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Running head: STRATEGIC RETAIL MARKETING AND PROMOTIONS 1Strategic Retail Marketing and PromotionsNameInstitution
STRATEGIC RETAIL MARKETING AND PROMOTIONS 2STRATEGIC RETAIL MARKETING AND PROMOTIONS As a consultant for a Wellington-based entrepreneur, I have decided to set up an onlineretail curation site on curated artisanal products. I will be preparing a tactical plan that outline theretail concept, the target market, tenant mix, and promotion strategy. RETAIL CONCEPTJust like fashion styles, the vocabulary of retail is constantly changing. While someconsider the term “curated retail” to be a new concept, the fact is, curation has existed for a longtime. The terms refers to the concept that retailers deploy a strategy to minimize the number ofchoices a customer must make along with ensuring that the product lines they carry are uniqueand highly desirable to their target shopper. And, retail experts believe curated retail is here tostay. According to Craig Patterson, editor-in-chief of Retail Insider, “Curated retail involves anarrower product focus, which may lead to personalization and increased brand relevancy.” Patterson agrees, the idea of curated retail is not new, but, more recently feels we areseeing a higher focus on it, “Because consumers demand curated and personalized offerings andcompetition is so great, and offerings so broad, retailers are seeing opportunity to sell ‘better’with ‘less’,” he said. Several smaller retailers have used curating as a marketing strategy todifferentiate their businesses alongside the big names of Kanye West and big retailers likeNordstrom who are doing curated pop-up shops.“Curated retail is defined as having a deep point of view—even if it means we can’t beall things to all people,” said Jen Lee Koss, a Canadian retailer and co-founder of BRIKA, anonline and brick-and-mortar retailer of artisan crafts. BRIKA was co-founded by Koss and KenaParanjape who saw a need to focus on talented artisans and designers who according to Koss,“Are being lost in the noise and desire a true platform to bring their well-crafted goods to a wider
STRATEGIC RETAIL MARKETING AND PROMOTIONS 3audience.” The duo recognized that there is a core customer who is inherently creative andcraves unique special goods. Their business model began as an online site and has evolved tophysical retail. The co-founders hand-select artisans and makers from all over North America for theiruniqueness and commitment to quality, ethical business and building a purposeful contributionwithin their community. These artisans benefit from having an easy platform in which to selltheir goods online. Their model requires no inventory as each of the maker ship directly fromtheir studios. BRIKA launched at the end of 2012 with five artisans and today they have over400 within their curated community. More recently, Koss and Paranjape have opened permanentstores and pop-up shops in the Toronto area. The BRIKA online business has benefited byhaving physical stores. “We most certainly see a correlation between our stores and an increase in online sales inthe same geography,” Koss said. BRIKA has also sold merchandise through Hudson Bay andHolt Renfrew department stores. Koss wants to see this distribution platform grow. Sheexplained that the combination of an online presence and physical stores enables them to reach awider audience. As such, they will be opening more brick-and-mortar locations worldwide. Kosssaid, “We envision a day where we are in every primary and secondary city, in the most specialneighborhoods and weaving crafts into the local fabric.” One achievement that the BRIKA teamis most proud of was opening their first stand-alone location. “We had always envisioned anoffline presence, and when we finally found the perfect space, we executed on it quickly andcheaply. Seeing our footprint grow allows our artisans and designers to become bigger and moresuccessful.
STRATEGIC RETAIL MARKETING AND PROMOTIONS 4BRIKA shares some similarities with Etsy; including some of their makers utilize both onlineplatforms. BRIKA claims they are more highly selective than Etsy. Interestingly, both companieshave ventured into having real storefront exposure. Esty is now a public company based inBrooklyn, New York. It was founded in 2005 and today has over 1.7 million active sellers andhas international offices too.TARGET MARKETOne of the most important aspects of a promotion strategy is to identify your targetmarket. Who's going to buy your curated artisanal products? Are the curated artisanal productsspecifically designed for males or females like some grooming products? Or, are they meant foreither gender like soft drinks and smartphones? What about age? Are the curated artisanalproducts intended for use by a specific age group? Will they be readily affordable by the averageconsumer, or will they be priced high to attract wealthy customers? Identifying your targetmarket will allow you to tailor your promotion strategy specifically to deliver your message tothe right people at the right time. Both males and females will be served. TENANT MIXTenant mix is ‘a combination of factors, including the proportion of space or number ofunits occupied by different retail/service types, as well as the relative placement of tenants in thecentre’. And a ‘good tenant mix’ is a variety of stores which work together to enhance thecentre’s performance and operate successfully as individual businesses. Further, ‘Tenant mixrefers to the combination of business establishments occupying space in a shopping centre toform an assemblage that produces optimum sales, rents, service to the community andfinanciability of the shopping centre venture’. These descriptions of tenant mix all stress theunderlying objective of maximizing shopping centre profitability, and are therefore investor-
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