SWOT Analysis
SWOT analysis of sari-sari store in the Philippines shows that this type of
business has both opportunities and threats. Some key strength of sari-sari stores
include their convenient location, variety of products, and flexible payment options.
However, some weaknesses include small size, inconsistent quality, and high
competition. Also, when considering all factors, owning a sari-sari store could be a
viable option for entrepreneurs in the Philippines.1
SWOT analysis is important for retail businesses because it provides valuable
insights into the strengths, weaknesses, opportunities, and threats a business is
facing. It helps retailers to identify areas of improvement, develop strategies to
capitalize on opportunities, and develop strategies to minimize any potential threats.
This can help them to better understand their competitive positioning, target markets,
and how to best reach their customers. SWOT analysis also helps retailers to identify
potential risks and develop contingency plans to mitigate them.
Profitable and Competitive Pricing Strategy
How you price a product is another important consideration for your retail
strategy. If your prices are too high, you could deter customers and lose sales. On
the other hand, if prices are too low, you can make a lot of sales, but won't have any
profit margin. 2
When it comes to pricing products for retail, it's important to strike a balance
between keeping prices competitive and ensuring that there is enough of a profit
margin. If the prices are too high, customers may be turned away, resulting in lost
sales. Conversely, if the prices are too low, there won't be enough profit margin to
make it worth the effort. Ultimately, you should strive to find the right balance
between pricing, customer satisfaction, and profitability.
Understanding Retail Experiences
In order to enhance consumers' emotional connections to the brand and provide a
point of differentiation in a hyper-competitive environment, retailers have increasingly
turned their attention to creating memorable retail experiences, which appeal to
consumers at a physical and psychological level. For example, in 2001 Apple
changed direction and initiated the retailing of experience offer through the Apple
Store Experience. With the aim of switching customers to Apple (as well as
enhancing the relationship with current consumers), the themed stores allow
customers to interact, learn and experience the values of the brand through in-store
design features and staff service. More importantly, rather than having products
arranged via category (ie printers, software, digital camera, iPods, monitors, cases,
etc.), merchandise is combined and arranged according to how consumers might
use the equipment in their everyday life, thus seeking to locate the brand in realistic
1
Analysis of Sar SWOT i-sari Store: A Closer Look, https://www.philippinetaxationguro.com/swot-
analysis-of-sari-sari-store/. Retrieved. April 23, 2023.
2
Brophy, Meaghan and Aviso, Agatha., 10 Retail Marketing Strategies to Drive Sales in 2023,
https://fitsmallbusiness.com/retail-marketing-strategy/. Retrieved. April 28, 2023.
consumer settings. The aim of such experiential retail stores is to create outlets that
capture and represent the brand's essence, while balancing both the functional
components of the product (what it does) with its emotional goals (how it makes me
feel)(Pine & Gilmore 1999; Schmitt 2003).Experiential retail strategies facilitate the
creation of emotional attachments, which help customers obtain a higher degree of
possessive control over in-store activities (Schmitt 2003). In a sense these strategies
allow consumers to become through immersion within the holistic experience design,
often creating flow-type experiences (Csikszentmihalyi 1997). 1 To clarify, customers
become their own icon by developing their self identity (who they are and what they
represent) through what they consume, own and possess. This is known as the
extended-self, which is the development of the individual's identity through the
association and collection of objects, events and experiences.3
The aim of experiential retail strategies is to create emotional attachments, giving
customers a higher degree of possessive control over in-store activities. Through
immersion within the holistic experience design, customers become their own icon
by developing their self-identity through what they consume, own, and possess. This
is known as the extended-self, which is the development of the individual's identity
through the association and collection of objects, events, and experiences.
Retail Marketing Strategy: Delivering Shopper Delight
Basing shopper marketing strategy on customer insights is what differentiates
market leading retail brands from weaker competitors. Many retail organizations lack
business development and strategic departments that collect experiences, set
benchmarks and create models and manuals. Retail Marketing Strategy makes the
information available to drive new ways of thinking and make retail practice more
agile for everyone. Outlining the five key capabilities required for retail excellence,
namely in-store execution; organizational development; fact-driven decision making;
multi-channel operations, and understanding customers, Retail Marketing Strategy
answers some of the most difficult questions in retail including how to innovate to
develop new ways to interact with customers across multiple channels, and how to
replicate online success stories from other sectors. Practical steps are put forward
for collating and interpreting the data generated in shopper activity, helping to make
sense of trends and build effective strategy.4
It points out that many retail organizations lack strategic departments, but the book
"Retail Marketing Strategy" makes information available to drive new ways of
thinking and make retail practice more agile. The paragraph outlines the five key
capabilities required for retail excellence, including in-store execution, organizational
development, fact-driven decision making, multi-channel operations, and
understanding customers
3
Healy, Michael J., Understanding retail experiences,
https://journals.sagepub.com/doi/abs/10.1177/147078530704900608?journalCode=mrea. Retrieved. April 23,
2023.
4
Berkhout,Constant https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=understanding+retail+marketing+experiences&oq=#d=gs_qabs&t=1682575582663&
u=%23p%3DAzTTHBsOEXoJ. Retrieved April 23,2023
Customer Behavior in Retail Stores
STUDIES of customer behavior in re-tail stores usually deal with (I) identification
of customers and (2) their buying behavior patterns. The aim of such studies is to
ascertain who buys where, what, when and how. In addition, such studies endeavor
to learn about customer response to sales promotion devices. The results of these
studies are useful in the solution of an array of marketing problems. These studies
are gaining importance in marketing research. It is safe to predict that interest in
them will increase greatly in the next decade. This paper summarizes the writer's
experience with such studies in grocery stores. 'However, the principles and
techniques discussed here are also applicable to other types of retail stores.5
The aim is to gather information on who buys what, when, and how, which can be
used to solve marketing problems. The writer shares their experience with such
studies in grocery stores, but notes that the principles and techniques discussed can
be applied to other types of retail stores as well.
Consumer Behavioral Variables
During the past decade, there have been a variety of significant developments in
data mining techniques. Some of these developments are implemented in
customized service to develop customer relationship. Customized service is actually
crucial in retail markets. Marketing managers can develop long-term and pleasant
relationships with customers if they can detect and predict changes in customer
behavior. In the dynamic retail market, understanding changes in customer behavior
can help managers to establish effective promotion campaigns. This study integrates
customer behavioral variables, demographic variables, and transaction database to
establish a method of mining changes in customer behavior. For mining change
patterns, two extended measures of similarity and unexpectedness are designed to
analyze the degree of resemblance between patterns at different time periods. The
proposed approach for mining changes in customer behavior can assist managers in
developing better marketing strategies.6
This study integrates customer behavioral variables, demographic variables, and
transaction database to establish a method of mining changes in customer behavior.
For mining change patterns, two extended measures of similarity and
unexpectedness are designed to analyze the degree of resemblance between
5
Applebun,william
https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=studying+of+customer+behavior&btnG=#d=gs_qabs&t=1682577291823&u=%23p
%3Dn4BihIkaHjIJ. Retrieved April 26,2023.
6
Chen ,Mu, Ai, lun chiu. mining changes in customer behavior in retail marketing
https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=mining+changes+in+customer+behavior&oq=mini#d=gs_
qabs&t=1682638262519&u=%23p%3D5yOHTAzExvsJ. Retrieved April 27,2023.
patterns at different time periods. The proposed approach for mining changes in
customer behavior can assist managers in developing better marketing strategies.
Marketing Mix
The principal purpose of the present study is to investigate a marketing strategy
for non-franchise convenience stores in Silang, Cavite, Philippines based on the four
Ps of the marketing mix: product, place, price and promotion. Convenience store in
the study sells items such as candy, ice-cream, soft drinks, video media
(CDs/DVDs), cigarettes and other tobacco products, newspapers and magazines,
along with a selection of processed food and some groceries. Women dominate the
bulk of daily customers who frequently visit the stores for groceries. Male customers
came mostly to rent videos. All these customers came from large households and
had been patronizing the store for the past two (2) years. The product diversification
was weak, and although the product quality was considered satisfactory, customers
find it compensating to have their items bought from the convenience stores near to
them. However, there were not enough space within the stores, and their style of
promoting the products and services were only by chance and word of mouth.
Competitive environment holds overall business strategy. 7
The present study aims to investigate the marketing strategy of non-franchise
convenience stores in Silang, Cavite, Philippines, focusing on the four Ps of the
marketing mix: product, place, price, and promotion. The convenience store in the
study offers a limited range of products such as candy, ice-cream, soft drinks, video
media, cigarettes, newspapers, magazines, and some processed food and
groceries. The study found that women dominate the bulk of daily customers who
frequently visit the store for groceries, while male customers mostly come to rent
videos. The customers come from large households and have been patronizing the
store for the past two years.
Multichannel Retailing
As retailers offer multiple channels in response to competitive pressures,
switching costs incurred by both retailers and consumers will shape the evolution of
retailing channels. In this paper we examine propositions regarding channel loyalty,
channel switching, order size, and merchandise returns based on purchase data
from a specific catalog retailer that has expanded its channels to include Internet
shopping. The data for this retailer shows that all four groups of customers—those
who entered the database as catalog buyers, as store buyers, as Internet buyers,
and as non-buyers—used multiple channels. Switching solely to this established
catalog retailer's new Internet channel appears to be more difficult for consumers
than relying on two or more channels. The use of multiple channels is greatest
among those who entered as Internet customers, reflecting their lower risk-aversion
and lower learning costs. Since the database contained only transactional
7
Soewignyo,Fanny.,Marketing strategy of non-franchise convience store.
https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=marketing+strategy+for+non-
franchise+convenience+stores+in+Silang%2C+Cavite&btnG=#d=gs_qabs&t=1682634849792&u=%23p
%3DL8nuwr_0No0J. Retrieved April 24,2023
information, we can make limited inferences about customers’ underlying
characteristics and motivations that influence their purchase behaviors. We draw
case-specific inferences and eschew generalization. Other retailers’ experiences will
be affected by their own past strategies and costs and not just by the general
characteristics of the channels.8
The paper analyzes purchase data from a specific catalog retailer that has
expanded to include internet shopping and shows that customers across all groups,
including catalog buyers, store buyers, internet buyers, and non-buyers, use multiple
channels.
Sales Promotion
Sales Promotion details the tried-and-tested methods companies use to stay
ahead of the competition, revealing the winning offers that gain new customers and
keep existing ones happy. Sales Promotion includes new developments in the field,
exploring the use of new media such as SMS, MMS, interactive TV and web-based
advertising.9
It emphasizes how companies rely on various sales promotion methods to attract
new customers and retain their existing customer base. The paragraph also
highlights the evolving nature of sales promotion, as companies explore new media
such as SMS, MMS, interactive TV and web-based advertising to reach out to their
target audience.
Decision Making
Strategic and tactical issues are examined for a broad spectrum of retailers, both
large and small, domestic and international, selling both merchandise and services.
In preparing this edition, the authors focused on five important factors that delineate
outstanding retailers:•The use of big data and analytical methods for decision
making. The application of social media and mobile channels for communicating with
customers and enhancing their shopping experience. The issues involved in
providing a seamless multichannel experience for customers. The engagement in
the overarching emphasis on conscious marketing and corporate social responsibility
when making business decisions. The impact of globalization on the retail industry.10
It discusses the examination of strategic and tactical issues for retailers of
different sizes and locations, offering both merchandise and services. The authors of
8
dholakia,Ruby roy., multi channel retailing: A case study of early experience,
https://www.sciencedirect.com/science/article/abs/pii/S1094996805700694.Retrieve
d April 26,2023
9
cummis,Julian, Mullin, Roday., Assesing the effectiveness of sales promotion,
https://scholar.google.com/scholar?
hl=en&as_sdt=0%2C5&q=Assessing+the+Effectiveness+of+Sales+Promotion+Strat
egies+in+the+Philippine+Retail+&btnG=#d=gs_qabs&t=1682640049100&u=%23p
%3DzUfoALbmncUJ. Retrieved April 24,2023
10
Levy, Michael.,Retailing management,
https://www.amazon.com/Retailing-Management-Michael-Levy/dp/1259573087. Retrieved. April 24,2023
this edition emphasize the importance of five key factors that set outstanding
retailers apart, which include utilizing big data and analytical methods for decision
making, applying social media and mobile channels to communicate with customers
and enhance their shopping experience, providing a seamless multichannel
experience for customers, practicing conscious marketing and corporate social
responsibility in business decisions, and considering the impact of globalization on
the retail industry. These factors reflect the current state of the retail industry and the
need for retailers to adapt and evolve in order to remain competitive and successful.
Retail Experience Marketing
A competitive advantage brick and mortar retailers possess over online shopping
is the possibilities for customers to physically touch, feel and see the products
(Rouse, 2015a; Morse, 2011). Retailers thereby have the possibility of entertaining
the customers by implementing specific features that creates an experience for the
customers when shopping in a physical store. Jones (1999), argue that these unique
experiences reflect certain experiential benefits of shopping that provide a subjective
and pleasurable value to shoppers. The experience of being entertained while
shopping can be defined as fun and pleasurable that involves satisfaction, freedom
and involvement (Jones, 1999).11
It discusses how brick and mortar retailers have an advantage over online
shopping by providing customers with the opportunity to physically interact with
products. The ability to touch and see products allows retailers to create a unique
shopping experience that is not available online. By implementing specific features
that entertain customers, retailers can provide experiential benefits that create a
subjective and pleasurable value for shoppers.
Public Relations
Public relations is the process of managing communications between a business
and its public. In retail, a business’s publics include customers, employees, vendors,
and, increasingly, online followers. Any thriving retail business owes part of its
success to being well thought of by customers, prospective customers, other
companies, and its local and digital communities. Retail PR can help accomplish this
in ways that advertising cannot; it’s what you want people to think about when they
hear your company’s name.12
Retail PR is a key ingredient for any successful retail business. It involves
managing communication between a business and its public, including customers,
employees, vendors, and followers. Retail PR allows a business to create a positive
image and foster relationships with its publics. This can help a business attract and
retain customers, build a strong reputation, and create a positive online presence.
With the right Retail PR strategy, businesses can reach and engage with their
publics in meaningful ways that go beyond simply advertising.
11
Björkman, Hanna, et.al., Retail experience marketing,
https://www.diva-portal.org/smash/get/diva2:813055/FULLTEXT01.pdf. Retrieved. April 28, 2023.
12
Staff, Shopify., Retail PR: Types, Benefits, and 6 Retail PR Firms (2023), https://www.shopify.com/retail/the-
art-of-reputation-management-what-retailers-need-to-know-about-pr#:~:text=Public%20relations%20is
%20the%20process,and%2C%20increasingly%2C%20online%20followers. Retrieved. April 28, 2023
Psychographic Segmentation
Psychographic segmentation goes a step further by looking at human
psychology. Psychographic segmentation is the process of segmenting customers
based on psychological attributes like their values, desires, attitudes, goals, and
beliefs. This also includes customers’ personality traits and lifestyle choices. All this
contributes to creating your buyers’ personas and using them to market your
services and products.13
Psychographic segmentation is an important tool used by businesses to effectively
target consumers and create tailored messaging. It involves researching and
understanding the psychological attributes of customers, such as their values,
attitudes, goals, beliefs and personality traits. This allows businesses to create a
detailed buyer persona of their target audience, which enables them to craft
marketing campaigns that are tailored to those personas. Through psychographic
segmentation, businesses can gain a deeper understanding of their customers,
allowing them to better connect with them and create meaningful relationships with
them.
Personal Selling
Personal selling is a method of selling which a salesperson contacts directly to the
customer or consumer and salespeople are those who contribute on implementing
the selling disposition. In this method, direct selling can connect on how will the
people avail with the face-to-face way of selling. Direct selling is an effective way to
build long-lasting customer relationships and grow a flexible, low-cost business.14
Personal selling is an important part of the sales process and is an effective way
to build long-term customer relationships. It involves a salesperson engaging in
direct contact with the customer or consumer, in order to present and promote a
product or service. This form of selling allows for a more personal connection to be
made between the customer and the salesperson, which can help to build a
relationship of trust and loyalty. Additionally, this method of selling is a flexible and
low-cost way to grow a business. By making the effort to connect with customers in a
face-to-face manner, it is possible to create a more meaningful and lasting
connection with them.
Visual Merchandising
Visual merchandising aims to create a strong brand image and identity, enhance
the store’s ambiance, and communicate the product’s value and unique selling
points. It involves planning, designing, and implementing window displays, in-store
displays, product layouts, and signage that reflect the brand’s personality, style, and
aesthetic. Effective visual merchandising can capture customers’ attention, create a
desire to explore the store, and encourage them to make purchases. It also helps
retailers to differentiate themselves from their competitors, build brand loyalty, and
13
Sobhi, Nada., Psychographic Segmentation in Marketing: The Complete Guide |Convertedin,
https://www.google.com/amp/s/blog.converted.in/en-us/blog/psychographic-segmentation-in-marketing-
guide%3fhs_amp=true. Retrieved. April 28, 2023.
14
increase revenue. image and identity, enhance the store’s ambiance, and
communicate the product’s value and unique selling points. It involves planning,
designing, and implementing window displays, in-store displays, product layouts, and
signage that reflect the brand’s personality, style, and aesthetic. Effective visual
merchandising can capture customers’ attention, create a desire to explore the store,
and encourage them to make purchases. It also helps retailers to differentiate
themselves from their competitors, build brand loyalty, and increase revenue.15
Visual merchandising is a key tool for retailers to engage customers and boost
sales. It involves the careful planning and design of window displays, in-store
displays, product layouts, and signage that reflect the brand’s aesthetic and values.
Through visual merchandising, retailers can create an attractive space that
communicates their products’ value and encourages customers to explore and
purchase. When done correctly, visual merchandising can help build customer
loyalty, differentiate a brand from competitors, and ultimately increase revenue.
15
Rony, Jahanara., Purpose and Impact of Visual Merchandising on Retail Business,
https://fashion2apparel.com/purpose-and-impact-of-visual-merchandising-on-retail-business/
#:~:text=Effective%20visual%20merchandising%20can%20capture,brand%20loyalty%2C%20and%20increase
%20revenue. April 28, 2023.
