basics of merchandising

8/9/2019 Basics of Merchandising

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BASICS OF MERCHANDISE

MANAGEMENT

“ Goods well bought

are half sold

!


2/18

"ear#$#g Ob%e&t$'es

• The &o#&e(t of )er&ha#d$s$#g

• The e'olut$o# of the fu#&t$o# of

)er&ha#d$s$#g• *la##$#g *ro&ess

• *la##$#g for Mer&ha#d$s$#g

+


3/18

Mer&ha#d$s$#g

• S$)(l,- $t &a# be ter)ed as the (la##$#g-bu,$#g a#d sell$#g of )er&ha#d$se.

• (la##$#g a#d &o#trol of the )er&ha#d$se

$#'e#tor, wh$le bala#&$#g the &usto)er/se0(e&tat$o# a#dreta$ler/s strateg,.

• Mer&ha#d$s$#g )a#age)e#t $s thes&$e#&e of e'aluat$#g hu)a# beha'$or

a#d bu,$#g hab$ts $# order to deter)$#ethe best wa, to sto&1- d$s(la,- a#d sellgoods at reta$l stores.


4/18

2hat $s Mer&ha#d$s$#g3

• A)er$&a# Mar1et$#g Asso&$at$o# has de4#ed)er&ha#d$s$#g as- 5 the (la##$#g $#'ol'ed $#)ar1et$#g the r$ght )er&ha#d$se at the r$ght(la&e at the r$ght t$)e $# the r$ght 6ua#t$t$es at

the r$ght (r$&e./• It $s a&h$e'$#g the 5F$'e R$ghts/

Having the right product

In the right quantity

Available at the right place

At the right time

At the right price

7


5/18

Mer&ha#d$se *la##$#g

• Mer&ha#d$se (la##$#g $s#e&essar, be&ause $t ta1es t$)e

to bu,- ha'e )er&ha#d$sedel$'ered- re&ord the del$'er,a#d subse6ue#tl, d$s(la, the

)er&ha#d$se.


6/18

Merchandise Management

Decisions regarding product mix to be ofered

Width and depth o the merchandise is consideredOn :

The number o product lines a retailer wantsto ofer

Service levels provided

Store ormats


7/18

Criteria or purchase decisions are ormulated in te

re!uenc" o #urchase o $eplenishment C"cles

%endor Selection

Terms and conditions with the vendors

orecasting and &udgeting


8/18

The E'olut$o# OfMer&ha#d$s$#g

8


9/18

De'$s$#g Mer&ha#d$se *la#s


10/18

Planning is at two levels:

The Merchandise Budget – Financial

plan detailing how much money to invest

in product inventories.

The Assortment Plan – Distribution in

terms o various product lines which the

retailer wants to carry.


11/18

Dimensions o merchandisemix


12/18

Fa&tors A9e&t$#g The Bu,$#gFu#&t$o#

!+

Source: A theory of merchandise buying behaviour, Jagdish N Seth, Theory in etailing, American !ar"eting Association


13/18

!+:!;

Mer&ha#d$se *la##$#g*ro&ess


14/18

!+:!7

Mer&ha#d$se Ma#age)e#t Issues


15/18

Developing Merchandise Plan

't is the (e" phase in retail strateg"

) retailer must have:

#roper assortment o goods and services

The" are in demand

Sell them in a consistent manner with thStrateg"*


16/18

Mer&ha#d$s$#g<

All a&t$'$t$es $#'ol'ed $# ac!uiring goods = ser'$&es a#d

them available at the (la&e- t$)e a#d (r$&e a#d $# the 6 That e#ables a reta$ler to achieve his goals.

Mer&ha#d$s$#g *la# = *h$loso(h,

Must re+ect:

E0(e&tat$o#s of Target grou(

Reta$l For)at

Mar1et (la&e (os$t$o#$#g

>alue &ha$#

Su((l$ers/ &a(ab$l$t$es

Costs&o)(et$tors

*rodu&t Tre#ds


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Mer&ha#d$s$#g *la# dr$'es e'er, (rodu&t de&$s$o# l$1e<

*rodu&t l$#e to &arr,

Shelf S(a&e to be allotted

*rodu&ts to $#'e#tor, tur#o'er

*r$&$#g de&$s$o#s

Breadth a#d assort)e#t a&ross the store ?#arrow = w$de

De(th w$th$# ea&h &ategor, ? dee( = shallow@

ual$t,

Nat$o#al Bra#ds = Store Bra#ds a#d $ts rat$o


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M$&ro Mer&ha#d$s$#g

Reta$ler ad%usts $ts shelf:s(a&e allo&at$o#s to res(o#d to &u

A#d other d$9ere#&es a)o#g lo&al )ar1ets.

Cross Mer&ha#d$s$#g

A reta$ler &arr$es &o)(le)e#tar, goods a#d ser'$&es so t The sho((ers are e#&ouraged to bu, )ore.

basics of merchandising

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