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Planning retail communication process

Planning a retail communication program involves several structured steps that ensure messages align with business goals, target the right audiences, and use resources effectively. Below are the primary stages in the planning process.

1. Establish Objectives

  • Purpose: Define the goals for the communication program, guiding strategy and helping measure success.
  • Types of Objectives:
    • Long-Term Objectives: Build brand image, customer loyalty, and awareness.
    • Short-Term Objectives: Drive immediate store visits or online sales for a particular event or promotion.
  • Example: A retailer may aim to increase brand awareness by 10% among its target market within six months.

2. Determine the Communication Budget

  • Budgeting Methods:
    • Marginal Analysis: Allocate funds up to the point where additional spending equals additional profit. Ideal for fine-tuning budget allocation but requires detailed data.
    • Objective-and-Task Method: Set a budget based on the cost of achieving specific objectives. More strategic than rule-of-thumb methods but demands clear goal-setting.
    • Rule-of-Thumb Methods:
      • Percentage of Sales: Allocate a set percentage of forecasted sales. Helps control spending but doesn’t account for specific campaign needs.
      • Competitive Parity: Match competitors’ spending to maintain a competitive presence.
      • Affordable Method: Spend what the retailer can afford after covering other costs. Limits excessive spending but may restrict campaign effectiveness.

3. Allocate the Promotional Budget

  • Purpose: Decide where to allocate the budget across channels, merchandise categories, geographic areas, or marketing objectives.
  • Allocation Techniques:
    • High-Assay Principle: Invest more in areas where communication is most likely to generate returns.
    • Example: A retailer might invest more in advertising men’s clothing if data shows higher awareness in women’s clothing but lower in men’s, where more growth potential exists.

4. Implement and Evaluate the Communication Program

  • Implementation: Execute the communication plan using chosen channels (e.g., social media, TV, in-store events).
  • Evaluation:
    • Metrics: Measure key performance indicators like brand awareness, website visits, and sales growth.
    • Methods:
      • Tracking Studies: Gather data on campaign awareness and customer attitudes periodically.
      • Sales Data Analysis: Review sales increases associated with campaign periods.
      • Example: A retailer could track customer surveys and sales data before and after an advertising campaign to assess its impact on brand awareness.

The retail communication planning process is essential for achieving both long-term brand-building goals and immediate sales targets. By setting clear objectives, allocating budgets wisely, and evaluating results, retailers can create impactful campaigns that foster customer loyalty and drive growth.

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