Pentagon & Triangle Model

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Sucess in Retail is in getting ur act right in a number of domains , the Pentagon & triangle Model of winning in retail captures the domains which needs to click , to suceed in retail ::

Pentagon ( 5 sides ) :: Are all CUSTOMER ( external)facing

Place ( Size /location /design )
Product ( Style & fashion mix /Intensity /Assortment angle )
Communication ( Positional /promotional angle )
Value :: ( the Price and Value Equation )
People ( Service /Climate /knowledge )

Triangle ( 3 sides ) , are all Internal to the Retail organisation , which will have a Big bearing on the Pentagonal sides

System( IT )
Logistics ( When needed then Item there / the SCM piece )
partners ( Be the best in relations management )

The triangle sits inside the pentagon , sorry cant draw this( as in the picture shown) , best delivery on the triangle also has a great effect on the customer service angle !

Any retail organisation can be mapped on the Pentagon & triangle model ! for its success or non success !




Comments

ajsue said…
I have seen similar retail model concepts. Yours is valuable, but I think may be strengthened by reconsidering the "communication" and "value" points on the pentagon.

The reason I think reconsidering these two points is that they are actually "compound concepts" that are derived/inferred from more base retail elements.

Additionally, I think it may be important to add more emphasis on "quality" as a key pentagon concept because the perception of quality can be quite distinct from the concept of assortment breadth.

With that in mind, I propose the following alternative view of a retail pentagon (below). These 5 pentagon concepts are more analogous to the "primary colors" of retail strategy, and each represents a "strategic lever" that can be pulled in infinite combinations and to varying degrees to form all the perceptual colors of the retail strategy "color wheel"...

for example:
- a lot of 3 & 5 and you have Apple...
- a lot of 1,2 & 4 and you have Walmart...
- a lot of 1 & 4 and you have McDonalds
- a lot of 1,2,3,4 & 5 and you have mush...."mud brown" in color wheel terms.

I appreciate your sharing your thought on the retail pentagon and welcome your thoughts on my comments here...


AJ's Retail Pentagon Reconsidered...

1. LOCATION (place: Phys loc,access point )

2. ASSORTMENT (product/service span: categories, styles, sizes, colors)

3. QUALITY (product/service quality level)

4. PRICE (relative to mkt, promotional postioning)

5. CUSTOMER EXPERIENCE (people, design, systems/web, service, climate, knowledge, shopping ease)


Key Inferred Compound Pentagon Concepts:

1. VALUE (driven largely by price and quality, but influenced by Experience and Location)

2. AUTHORITY (driven largely by Assortment, with strong influence from Experience and Quality

3. BRAND ESSENCE ("Communication/Positional/Promotion" driven by all 5 base pentagon concepts)
July 28, 2010 at 8:48 PM
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