What are the risks of retail marketing positioning?

1 Risk 1: Positioning too narrowly

One of the risks of retail marketing positioning is that the retailer may position itself too narrowly, meaning that it focuses on a very specific segment or niche that limits its growth potential and customer base. For example, a retailer that positions itself as a premium organic food store may alienate customers who are looking for more affordable or diverse options. While positioning too narrowly can help the retailer establish a loyal and niche following, it can also make it vulnerable to market changes, customer preferences, and competitive threats.

To avoid or mitigate this risk, the retailer should conduct regular market research and customer feedback to understand the needs, wants, and expectations of its target market and adjust its positioning accordingly. The retailer should also consider expanding its product range, service offerings, or distribution channels to reach new or existing customers who may have different preferences or needs. Additionally, the retailer should monitor its competitors and industry trends and differentiate itself by highlighting its unique value proposition and benefits.

2 Risk 2: Positioning too broadly

Another risk of retail marketing positioning is that the retailer may position itself too broadly, meaning that it tries to appeal to everyone and does not have a clear or consistent identity. For example, a retailer that positions itself as a one-stop shop for everything from clothing to electronics to groceries may confuse customers who are looking for more specialized or quality products or services. While positioning too broadly can help the retailer attract a large and diverse customer base, it can also make it difficult to stand out from its competitors and create a loyal and satisfied customer base.

To avoid or mitigate this risk, the retailer should define its target market and customer segments and tailor its positioning to their specific needs, wants, and expectations. The retailer should also communicate its positioning clearly and consistently across all its marketing channels and touchpoints, such as its website, social media, advertising, packaging, and store design. Furthermore, the retailer should focus on its core competencies and competitive advantages and deliver on its promises and expectations.

3 Risk 3: Positioning inconsistently

A third risk of retail marketing positioning is that the retailer may position itself inconsistently, meaning that it does not align its positioning with its actions, behaviors, or communications. For example, a retailer that positions itself as a sustainable and ethical brand but uses non-recyclable packaging or sources its products from questionable suppliers may damage its credibility and trustworthiness among its customers. While positioning inconsistently can help the retailer adapt to different situations or markets, it can also make it lose its identity and reputation and create a negative customer experience.

To avoid or mitigate this risk, the retailer should ensure that its positioning is aligned with its mission, vision, and values and that it reflects its reality and capabilities. The retailer should also ensure that its positioning is consistent across all its internal and external stakeholders, such as its employees, suppliers, partners, and customers, and that it matches their perceptions and expectations. Moreover, the retailer should measure and evaluate its positioning performance and outcomes and make any necessary changes or improvements.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?