Strategic repositioning in the retail trade
STARTING SITUATION – POSITIONING AND PRODUCT CLAIM LARGELY UNKNOWN IN THE MARKET
The textile retail trade, in which our client is one of the leading companies in Europe, is a highly competitive segment. For this reason, unclear market positioning and USPs were all the more serious. Leading competitors scored points for either quality or price, while our client was unable to win a single trick. The result was a drop in customer satisfaction, which, in turn led to less frequent customer visits to our client’s branches. The product range strategy agreed with the product manager’s tastes, but not with the (unknown) customer target groups.
PROJECT APPROACH – SEGMENTATION OF CUSTOMERS ACCORDING TO THEIR REQUIREMENTS
The approach for the project was as follows: segmentation of the customers based on their requirements, and not on the basis of preconceived socio-demographic properties.
The market potential and the customer characteristics were evaluated in order to clearly distinguish the target customer segment. Next, the client requirements and special purchasing features were integrated into the control process for the collection framework plan (CFP). Requirements such as inspiration and consulting were anchored in the branch design and the presentation of goods.
Strategic defined goals and objectives for marketing, product design and sales were also implemented to ensure the sustainability of the measures. After that, the media mix was adjusted to meet client requirements and a relaunch campaign was conducted.
FINDING – YOU CAN MEET YOUR CUSTOMERS’ NEEDS ONLY IF YOU KNOW AND UNDERSTAND THEM
In the textile retail trade, as in other consumer sectors, brand thinking is playing an increasingly influential role. Lack of awareness, unclear positioning, and too small a degree of differentiation can have far-reaching consequences in this context.
However, on its own, greater awareness of the company and its brands, through marketing and sponsoring activities for example, brings only a degree of relief, unless a parallel focus is placed on a clear orientation towards customer needs. And these first of all need to be known.
- Strategy for brand repositioning and differentiation refined and implementation initiated
- Clear customer understanding throughout the organization and realization of initial short-term efficiency potential