14 chapter 14 developing merchandise plans retail management: a strategic approach
TRANSCRIPT
Chapter 1414Developing Merchandise Plans
RETAIL MANAGEMENT:
A STRATEGICAPPROACH
Class Agenda
Administrative Item Course Schedule and Final Exam date
Retail Institutions Assignments Introduce merchandising philosophies and
concepts in preparation for Build-A-Bear Workshop and SunRipe cases scheduled for next week
Administrative Item Midterm results
Merchandising
Activities involved in acquiring particular goods and/or services and making them available at the places, times, and prices and in the quantities that enable a retailer to reach its goals.
Does Gap’s strategic alliance with Diane von Furstenberg reflect all of these things?
Sets the guiding principles for all the merchandise decisions that a retailer makes
Should reflect: Target market desires Marketplace positioning Retailer’s institutional type Defined value chain Supplier capabilities Costs Competitors Product trends
Merchandising Philosophy
Scope of Responsibility
Merchandising view
All buying and selling functions
Assortments Advertising Pricing Point-of-sale displays Employee utilization Personal selling
approaches
Merchandising view
All buying and selling functions
Assortments Advertising Pricing Point-of-sale displays Employee utilization Personal selling
approaches
Buying view
Buyers manage buying functions Buying Advertising Pricing
In-store personnel manage other functions Assortments Point-of-sale displays Employee utilization Personal selling approaches
Buying view
Buyers manage buying functions Buying Advertising Pricing
In-store personnel manage other functions Assortments Point-of-sale displays Employee utilization Personal selling approaches
Merchandising v. Store Management Career Tracks at Hbc
Two Merchandising Strategies
Retailer adjusts shelf-space allocations to respond to customer and other differences among local marketsRetailer adjusts shelf-space allocations to respond to customer and other differences among local markets
Cross-merchandisingRetailers carry complementary goods and services to encourage shoppers to buy moreRetailers carry complementary goods and services to encourage shoppers to buy more
Micromerchandising
Is cross-merchandising different from scrambled merchandising?
Figure 14.5 Considerations in Devising Merchandise Plans
What is Category Management?
A Retailer/Supplier processprocess of managing categories as strategic business units, producing enhanced business results by focusing on consumerconsumer value
A Retailer/Supplier processprocess of managing categories as strategic business units, producing enhanced business results by focusing on consumerconsumer value
• Category Management is a Process and involves a series of interrelated activities
• Category Management is comprised of distinctly different supplier and retailer components and cannot be done alone by either
• Category Management has been shown to lead to improved business results and improved relationships between trading partners
Retailer & ManufacturerRetailer & Manufacturer
Category PlanningCategory Planning
ImplementationImplementation
Category Management PracticesCategory Management Practices
Category Management
RetailerRetailer
Develops Store-Level Develops Store-Level Marketing PlansMarketing Plans
ManufacturerManufacturer
Develops Marketing Plans Develops Marketing Plans and Programs for Brandsand Programs for Brands
ImplementationImplementation
Traditional Business PracticesTraditional Business Practices
A New Way of Doing Business
Brand/SKU Management
Retailer Focused Tactics
Deal-Based Decision Making
Reactive Business Planning
Adversarial Work Process
Category/Brand/SKU Management
Consumer Focused Tactics
Data-Based Decision Making
Proactive Business Planning
Collaborative Work Process
OLD NEW
Figure 14.13 Applying Category Management
Figure 14.4b Shelf Logic: Software for Category Management Planning
Category Captains
What is a Category Captain? an appointed lead supplier who carries out the category
review and leads the process to deliver the plan for the total Category
The Category Captain must: have a demonstrable knowledge of customer insight and
market understanding take an objective approach to growing the overall category recognize the role of other suppliers in delivering the goal
Non-captains?Non-captains?
Merchandise Quality
The battle of the brands
Article
Private(dealer or store)
Private(dealer or store)
Manufacturer(national)
Manufacturer(national)
GenericGeneric
Private Brand Test
Match the Retailer with the Brand Name
Retailer Brand
Canadian Tire President’s Choice
Loblaws Wind River
Zellers Life
Irving Mastercraft
Sears Compliments
Shoppers Drug Mart Kenmore
Sobeys Truly
Marks Work Wearhouse RiverdaleWhy would a retailer (like LaSenza for example) opt to sell only private label
products?