The documents discuss the concept of an "EST" theory and model for retail success. The EST model proposes that retailers should strive to be the best ("Est") in one of five key areas: big (assortment), cheap (price), hot (fashion), quick (service), or easy (experience). Specifically:
- The EST theory says retailers need a specific positioning for a target customer group rather than trying to be great at everything for everyone.
- To succeed, a retailer may need to target some customers over others and give up on some product categories or short-term profits for long-term goals.
- The model argues customers make non-compensatory decisions based on the single area a
The documents discuss the concept of an "EST" theory and model for retail success. The EST model proposes that retailers should strive to be the best ("Est") in one of five key areas: big (assortment), cheap (price), hot (fashion), quick (service), or easy (experience). Specifically:
- The EST theory says retailers need a specific positioning for a target customer group rather than trying to be great at everything for everyone.
- To succeed, a retailer may need to target some customers over others and give up on some product categories or short-term profits for long-term goals.
- The model argues customers make non-compensatory decisions based on the single area a
The documents discuss the concept of an "EST" theory and model for retail success. The EST model proposes that retailers should strive to be the best ("Est") in one of five key areas: big (assortment), cheap (price), hot (fashion), quick (service), or easy (experience). Specifically:
- The EST theory says retailers need a specific positioning for a target customer group rather than trying to be great at everything for everyone.
- To succeed, a retailer may need to target some customers over others and give up on some product categories or short-term profits for long-term goals.
- The model argues customers make non-compensatory decisions based on the single area a
The documents discuss the concept of an "EST" theory and model for retail success. The EST model proposes that retailers should strive to be the best ("Est") in one of five key areas: big (assortment), cheap (price), hot (fashion), quick (service), or easy (experience). Specifically:
- The EST theory says retailers need a specific positioning for a target customer group rather than trying to be great at everything for everyone.
- To succeed, a retailer may need to target some customers over others and give up on some product categories or short-term profits for long-term goals.
- The model argues customers make non-compensatory decisions based on the single area a
opportunity) the (product / service name) is a (product / service category) that (statement of key benefit - that is, extremely compelling reason to buy or use) unlike (primary competitive alternatives, including "doing nothing") our product / service does (statement of primary differentiation).
3 The Eight Ways To Win In Retailing The Pentagon & The Triangle Size Place Location Layout & Design Positional Style & Fashion Communication Systems Product Intensity Promotional Assortment
Logistics Suppliers
Service Price Knowledge People Value Climate Quality Est theory for Retail Success
The Est theory derives from the word best,
and it essentially says that a retailer must be best at one proposition that’s important to a specific group of customers Retailers must strive for a specific positioning to a specific set of customers rather than attempting to be great at everything to everybody 02-09-2020 5
Based on Winning at Retail by Ander and Stern
Est theory for Retail Success
To accomplish this might mean targeting a specific
customer at the exclusion of others, giving up on merchandise categories that today might still be yielding profitable sales, or forgoing short-term growth and profits with an eye toward long-term success Even though these are the fundamental to any marketing business, most retailers find it tough to follow Based on Winning at Retail by Ander and Stern 02-09-2020 6 The Est Model
Based on Winning at Retail by Ander and Stern 02-09-2020 7
EST
Big – Est (Home Depot, Best Buy)-Maximum assortment and
variety; not size or volume over all Cheap – Est (Wal-Mart, Costco, Dmart )- Consistently having lower prices than the competitors Hot – Est (Starbucks, Zara )-Stores that carry latest products just as customers begin to buy them in volume (mass fashion) Quick – Est (McDonald’s, Walgreens) -Most efficient service; helps customers save time significantly Easy – Est (Container Store, Publix, Kohl’s)-Best solution oriented service (ease of use) Experience that makes shopping easy and hassle free
Based on Winning at Retail by Ander and Stern 8
The Est Model
The organization needs to be the best in one of
the five rather than pretty good in all of them The model proposes a non-compensatory decision making for the consumers that has no place for diffused branding Alternatively, it proposes razor sharp focus and incessant drive to achieve the desired position
Based on Winning at Retail by Ander and Stern 02-09-2020 9
The Est Model
There could be positions other than this; but they
would be niche positions Fine – Est Best quality merchandise (luxury retailing) Being best in one does not men complete lack of concern for all other parameters; each retailer need to achieve an acceptable level on all other parameters Est is not forever; it changes with time Based on Winning at Retail by Ander and Stern 02-09-2020 10 Retail Mix
Customer Location Service
Store Design Merchandise
And Display Retail Strategy Assortment
Communication Pricing Mix 11 Wal-Mart’s Retail Mix Location Strategy
Free-standing Stores
Customer Service
Store Display Merchandise
And Design Assortment
Communication Pricing 12 Mix Wal-Mart’s Retail Mix Assortment Strategy
Customer Service Location
Large Number Store Design and Display of Categories Few Items Communication Mix Pricing in Each Category
14 Wal-Mart’s Retail Mix Customer Service Location
Communication Mix Store Design Merchandise and Display Assortment
Pricing
TV and Newspaper Insert Ads
15 Wal-Mart’s Retail Mix
Store Design and Display
Customer Service Location
Basic, Special Merchandise Displays Assortments for Products Communication Mix Pricing
16 Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise Assortment
Store Design and Display Pricing
Communication Mix 17 VIRTUAL VALUE CHAIN
18 19 An analysis of the virtual value chain in electronic commerce, Ganesh D. Bhatt and Ali F. Emdad, Logistics Information Management Volume 14 . Number 1/2 . 2001 . 78±84 Transformation of Value-added Services through the Virtual Value Chain
20 An analysis of the virtual value chain in electronic commerce, Ganesh D. Bhatt and Ali F. Emdad, Logistics Information Management Volume 14 . Number 1/2 . 2001 . 78±84
