merchandise planning[1]
Post on 03-Dec-2014
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Concept of merchandising planning.
Implications of merchandising planning
Process of merchandising planning
Merchandise hierarchy
Merchandising Planning planning and control of the merchandise inventory
while balancing the customer’s expectation and retailer’s strategy.
Right assortment of goods. Substantial depth - availability. Choice available to customer increases. Required goods always available.
Finance – Purchase order and profitability.
Marketing – Advertizing and sales promotions.
Warehousing & Logistics – Merchandise receiving and verification.
Store operations – Space planning, avoid duplication.
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FinancePayment to suppliers, Profitability measurements
Store OperationsSpace planning, Communication about new
products & their features,
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Merchandise planning
Developing a sales forecast –
Determining the Merchandise Requirement
Merchandise Control
Assortment Planning
Reviewing past sales
Economic conditions.
Sales potential.
Marketing strategies and Competition.
Creating the sales forecast.
Merchandise Budget sales plan stock support plan Planned reductions Planned procurement Gross margin
Assortment plan Product range and models.
Process can be top down / bottom up
fresh groceries Ready to eat snacks Addictives /spices/pickles. Personal hygiene products Cooking aids Necessities – pulse, sugar salt , oil ,
wheat floor. Soft drinks/ juices.
Company Department Merchandise classification Merchandise category Merchandise sub category Style price unit Stock keeping unit
Wafers , biscuits , chips, snacks. Salted , sweet - category Branded , local- sub category Pack size / price– 100 gm, 250 gm, 500
gm. – SPP. SKU
Staple/ basic- Fashion Seasonal Fad Style
ASSORTMENT Width Depth
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9.Nisan.2023
Range plan with price points, briefing by Category manager to the team. Co-ordination bt merchandiser
Fabric inputs with Prices, Design and Quality break-up (Fabric team, Garment team, Merchandiser
Colour palette forecast, alongwith Theme forecast or selection (Fabric team, Garment team, merchnadiser)
Fabric design (Fabric designer)Costing/ ApprovalsDelivery lead times
GarmentStyling
SamplingPackaging designGarment costing
Product range presentations
Range approvals for styles & fabric
Order bookings
Raise purchase orders for fabrics & trims
Garment & packing specifications to be made
Handover complete specifications with fabric, trims to production dept
Planned sales: Projected sales for the period
Planned purchases: Projected purchases for the period
Planned reductions:Markdowns: Reduction in prices for Bad quality, Competition,
Trend change etcEmployee discounts: Inventory shrinkage: Theft, pilferage
Planned markups: Planned difference in selling and cost (It is not a gross profit)Markup% = (Selling price – Cost price)/ Selling price
Gross marginGross margin = (Selling price – Cost price - Reductions)
Adjusts merchandise buying Sales Reductions
Maintains stock and sale relation.
OTB = Planned EOM stock - projected EOM stock
Projected EOM stock = actual BOM stock + actual additions to stock + actual on order - planned monthly sale – planned reductions for the month.
Limits over and under buying
Prevents loss of sale – due to unavailability.
Maintains purchase within budget.
Reduce markdowns – due to excessive purchase.
The process of deciding and arriving at the quantity of each product /category of merchandise.
Purchase quantity. Color , size , brand , material. Classics, Fashion, Seasonal, Fad, Style
MenswearMenswear
ShirtsShirts Trousers Trousers
accessoriesaccessories
ZodiacZodiac Van HeusenVan Heusen
Louis Phillippe
Louis Phillippe
ArrowArrow
SIZE SIZEColor Color Style Style
DEPARTMENTDEPARTMENT
PRODUCT LINEPRODUCT LINE
BREADTHBREADTH
DEPTHDEPTH
VENDOR
STYLE
UNITS
COSTS
RETAIL PRICE
PLANNED PURCHASE JAN FEB MAR APR
TOTAL
X C - X 8 800 1200 15 20 25 15
75
Y F - XX
8 960 1350 10 25 10 20
65
Z E - XL
6 900 1500 30 22 15 18
85
Limits over and under buying.
Sufficient choices for customers.
Satisfactory product quantity available.
Aesthetic minimum – lower limit of range width.
Precise items and quantity for merchandise line.
Identification of customer’s buying decision
Identification of levels under attributes.
Allocation of total units respectively based on demand.
TYPE DRESS CASUAL FORMAL SPORT
% OF SALES
10 40 20 30
SIZES SMALL MEDIUM LARGE X – LARGE
% SALES 25 40 25 10
SLEEVE LENGTH
FULL HALF
% OF SALES
30 70
Marketmax MMS Retail – pro Ms- excel
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