Save a Lot Strategy

5103 Words Sep 14th, 2010 21 Pages
Introduction
Aim: Provide a detailed retail audit containing market entry strategies, competition and the market place and a retail strategy plan that will allow Save a Lot to secure a bank loan in support of their Australian Franchise
Context: Save- A- Lot is a discount retailer seeking to expand into the Australian market place targeting high discount and low price seeking consumers. Their market entry strategy is to franchise their brand and use a market expansion strategy when moving to the Australian market place
Structure: The first section of the report addresses market entry strategy and the retail planning process. The report then moves to discuss the situation audit which entails competitor and market place analysis. The final
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Elements Save A Lot Australia
1) Market Factors: Market Size:
Australia’s retail industry has evolved to become one of the country’s major economic factors and its largest employer, providing a platform for entrepreneurship and innovation (Inside Retailing, 2010). The food industry is a large market which is very stable and not volatile which will permit steady growth and profit maximization.

Growth Potential:
There is a large amount of growth potential in the discount and convenience orientated retailing sector that Save A Lot is targeting. This is due to the increasing change in consumer patterns. Consumers are circumvented to large amounts of time pressure and thus seeking convenience while still receiving value. This is what Save A Lot can provide, value and quality at discounted prices.

Seasonality:
Seasonality is not a problem for Save A Lot being a discount food retailer. Unlike the tourism industry which is seasonal, the food industry remains prominent in the everyday lives of consumers. As such resources are required all year round. Further Save A Lot’s strategy of limited assortment can also coincide with seasonal aspects for certain fresh products such as fruit and vegetables. A rotational system can be used based around the seasons for specific products and stocked accordingly.

Business Cycles:
Retail markets can be affected by economic conditions; however Save A Lot being discount grocer will mean that the effects of changes in economic

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