We are the consultant on NUVO – fast fashion retailers. We should come up with a retail channel strategic plan
Our product is premium and expensive. Our competitors would be Zara, Top Shop, and Cotton On
Our segment – 18-35years old, young working adult with high income, who like fashion.
We are now having 5 stores in suburbs of Sydney and Melbourne. In 5 years’ time, we would like to open up 10 more in Melbourne and Sydney city or high population suburbs. We also want to open up more store in other parts of Australia such as Brisbane, Perth, etc.
You could read my lecture notes first to answer the following parts. (Slides 1-30)
1. Retail Chanel Strategy
1.1. Retail Location Criteria
Factors Impacting Retail Location
– Strategic Fit with target market – size and composition of households in the catchment area
– Find and write about the suburbs and CBD population growth rate of Melbourne, Sydney, Perth and Brisbane – which part are growing? And how’s their income? Then consider to open up in those growing population areas. NUVO will has estimated exposure about 75% of the target audience by locating in the CBD area. Justify with Statistics.
– statistics of high traffic flow
– easy parking space
– high visibility – area selling retail fashion brands.
– economic condition – back up with statistic and reference.
– competition – adjacent tenants
– operating cost and restriction
1.2. Retail Site Selection
Based on the criteria, we decided on
– Unplanned shopping area, opening up in CBD or other high population suburbs (e.g. South Yarra, Toorak in Melbourne) or find other areas in Sydney Brisbane etc.
Advantages and Disadvantages
Why?
– Estimated 80% of our target segment is 18-35 years old, frequent XXX high traffic areas.
1.3. Channel Strategies
Retail channel – planned shopping centres (e.g. collaborating with David Jones – who offered high end products) – carry some of our product to open up market. exposing products
Why?
Advantages and disadvantages – back up with stats
Or open up temporary or pop-up store to let the customer know a little bit about our products.
Advantages and Disadvantages
Another retail channel – ecommerce platform, online shopping, free shipping to improve services.
Advantages and Disadvantages – back up with stats.