Too many retailers fail to define theirtargetmarkets and positions clearly.They try to have"something for everyone"and end up satisfyingno market well.In contrast, successful retailersdefine their target markets well and positionthemselves strongly.Forexample,in1963,LeslieH.Wexner borrowed $5.00o to create TheLimited,which started as a single storetargetedto young,fashion-conscious women.All aspects ofthe store-clothingassortment,fixtures,music,colors,personnel-were orchestrated to matchthe target consumer.He continued to open morestores,but a decade later his original customerswere no longer in the"young"group.To catchthenew"youngs,"he started the Limited Express
Too many retailers fail to define their target markets and positions clearly. They try to have “something for everyone” and end up satisfying no market well. In contrast, successful retailers define their target markets well and position themselves strongly. For example, in 1963, Leslie H. Wexner borrowed $5.000 to create The Limited, which started as a single store targeted to young, fashion-conscious women. All aspects of the store—clothing assortment, fixtures, music, colors, personnel—were orchestrated to match the target consumer. He continued to open more stores, but a decade later his original customers were no longer in the “young” group. To catch the new “youngs,” he started the Limited Express
Over the years,he started or acquired otherhighly targeted store chains,including LaneBryant,Victoria's Secret,Lerner,and others toreach new segments.Today The Limited,Inc.operates more then 4,000 stores in sevendifferent segmentsof themarket,with sales ofmore then $6.9 billion.EvenlargestoressuchasWal-Mart,Kmart,andSears must define their major target markets inorder to design effective marketing strategies.Infact, in recent years, thanks to strong targetingand positioning,Wal-Mart has explodedpastSears and Kmart to become the nation'slargestretailer
Over the years, he started or acquired other highly targeted store chains, including Lane Bryant, Victoria’s Secret, Lerner, and others to reach new segments. Today The Limited, Inc. operates more then 4,000 stores in seven different segments of the market, with sales of more then $6.9 billion. Even large stores such as Wal-Mart, Kmart, and Sears must define their major target markets in order to design effective marketing strategies. In fact, in recent years, thanks to strong targeting and positioning, Wal-Mart has exploded past Sears and Kmart to become the nation’s largest retailer
ProductAssortmentandServicesDecisionRetailers must decide on three major productvariables:productassortment,servicesmix,and storeatmosphereTheretailer'sproductassortment mustmatchtarget shopper's expectations.The retailer mustdetermine both the product assortment's widthand its depth. Thus, a restaurant can offer anarrow and shallow assortment (small lunchcounter),a narrow and deep assortment(delicatessen),awideandshallow assortmentcafeteria),orawideanddeepassortment(largerestaurant)
Product Assortment and Services Decision ◼ Retailers must decide on three major product variables: product assortment, services mix, and store atmosphere. ◼ The retailer’s product assortment must match target shopper’s expectations. The retailer must determine both the product assortment’s width and its depth. Thus, a restaurant can offer a narrow and shallow assortment (small lunch counter), a narrow and deep assortment (delicatessen), a wide and shallow assortment (cafeteria), or a wide and deep assortment (large restaurant)