buying and merchandising -...

2013 SAMPLE CASE STUDIES

BUYING AND MERCHANDISING

AS USED IN DECA’STEAM DECISION MAKING EVENTS

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Buying and Merchandising

Team Decision Making Event

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Published 2013 by DECA Images. Copyright © 2013 by DECA Inc.

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Buying and MerchandisingTeam Decision Making Event

TABLEOFCONTENTS

Introduction .....................................................................................................................3 Competitive Events Case Study #1 ............................................................................................................5 Case Study #2 ..........................................................................................................10 Case Study #3 ..........................................................................................................16

INTRODUCTION

This publication is designed to assist DECA members and their local chapter advisors in preparing for DECA’s Team Decision Making Events in the fields of Business Law and Ethics, Buying and Merchandising, Financial Services, Hospitality Services, Marketing Communications, Sports and Entertainment Marketing or Travel and Tourism Marketing. This document will be useful in preparing students for local, state and international competition by familiarizing them with the format, structure and evaluation tools used in international competition. This series of events is presented as an example of the types of case studies in which a team might expect to participate at the International Career Development Conference. The competitive events found herein, however, are not representative of all performance indicators that the students may be expected to demonstrate on the national level. A complete list of performance indicators upon which the events are written is available online at http://www.deca.org/competitions/2/.

OVERVIEWOFEVENT

The Buying and Merchandising Team Decision Making Event is a case study event in a role-play format. Team members are given a real-world, decision-making case study situation involving a management problem in buying and merchandising. Employees in buying and merchandising positions get the product into the hands of the customer. This process includes forecasting, planning, buying, displaying, selling and providing customer service.

The two members of the team have 30 minutes to study the situation and organize their analysis. The team will then make an oral presentation to the judge assuming the role of an executive for the business represented.

Team members also take a written exam testing general marketing, management, entrepreneurship and business and also knowledge specific to the buying and merchandising area. Test scores are averaged with the role-play for the team score. Past test questions are available for sale from DECA Images at http://www.deca.org/shop.

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SUGGESTIONS

Prepare MentallyCompetitors should get sufficient sleep the night before competition so that they will be mentally alert and able to concentrate on the case study.

Dress AppropriatelyProfessional dress should be worn to all conference sessions. Competitors must wear an official DECA blazer during interaction with the judges.

Follow the Program AgendaLocate the event room beforehand and arrive at the site early enough to be acclimated to the environment, relaxed, etc. Competitors must be on time for each event.

Use Preparation Time WiselyCompetitors should take advantage of the time provided for each activity of the event. During the written test, competitors should think through each item completely and carefully while gauging the time appropriately. If time allows, recheck the answers. While preparing for the case study presentation, competitors should use all the time allotted constructively.

Performance IndicatorsWhen teams approach the case study situation, they are given a list of seven performanceindicators(PIs). These are tasks or competencies the team must demonstrate as they accomplish the specific industry-oriented task. Theywillbeevaluatedonthespecificperformanceindicatorslistedfortheevent. Lists of performance indicators are available on DECA’s Web site at http://www.deca.org/competitions/2/.

Performance indicators are bits of the curriculum, such as “Identify a target market,” or “Identify the elements of a promotional mix,” or “Explain the principles of supply and demand.”

Although they are quite specific, performance indicators are organized under broader topics called instructionalareas. You will recognize instructional areas as units of the marketing education curriculum, such as selling, promotion, economics, distribution, pricing, marketing information management, financial analysis, product / service management, communication skills, and operations.

To have the best chance in competition, teams must focus on the performance indicators.

For more tips and suggestions, please refer to the Everything You Wanted to Know About Team Decision Making Events, An Instructor’s Guide available for purchase through DECA Images (catalog code TDMIG)

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CAREERCLUSTER Marketing

INSTRUCTIONALAREAOperations Product/Service Management

BUYINGANDMERCHANDISINGTEAMDECISIONMAKINGEVENT

PARTICIPANTINSTRUCTIONS

• The event will be presented to you through your reading of the General Performance Indicators, Specific Performance Indicators and Case Study Situation. You will have up to 30 minutes to review this information and prepare your presentation. You may make notes to use during your presentation.

• You will have up to 10 minutes to make your presentation to the judge (you may have more than one judge), followed by up to 5 minutes to answer the judge’s questions. All members of the team must participate in the presentation, as well as answer the questions.

• Turn in all of your notes and event materials when you have completed the event.

GENERALPERFORMANCEINDICATORS

• Communications skills—the ability to exchange information and ideas with others through writing, speaking, reading or listening

• Analytical skills—the ability to derive facts from data, findings from facts, conclusions from findings and recommendations from conclusions

• Production skills—the ability to take a concept from an idea and make it real• Teamwork—the ability to be an effective member of a productive group• Priorities/time management—the ability to determine priorities and manage time commitments• Economic competencies

SPECIFICPERFORMANCEINDICATORS

• • Explain the nature of operations. • Explain the nature and scope of purchasing. • Identify quality-control measures. • Explain business ethics in product/service management. • Describe the nature of product bundling. • Describe factors used by businesses to position corporate brands. • Explain the nature of product/service branding.

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CASE STUDY SITUATION

You are to assume the role of corporate consulting team for OFFICE INNOVATIONS, a large national retailer that sells office furniture, computers, office supplies and school supplies. The manager (judge) of an OFFICE INNOVATIONS store has asked your consulting team to describe product management and human resource management strategies for a large promotional event.

OFFICE INNOVATIONS is a well-known national retailer located in a city with a population of 400,000 people. The manager (judge) of OFFICE INNOVATIONS is planning a huge sales event for the beginning of a new school year. School starts on August 28 and OFFICE INNOVATIONS will have a special sale for teachers on August 19 and a special sale for high school and college students on August 20 and 21. OFFICE INNOVATIONS acquires the school supply lists required by local elementary, middle and high schools. These lists help parents and students purchase the supplies required for their classes. OFFICE INNOVATIONS must have adequate product supplies on hand to meet consumer demands and avoid the need for rain checks.

The manager (judge) of OFFICE INNOVATIONS has called upon your consulting team to suggest logistics for the special sales events that will result in greater sales and increased customer satisfaction. Your team must describe strategies to position Office InnovationS’ corporate brands during the big back-to-school promotions. Your team must also describe product/service bundling strategies to sell more related merchandise. The manager (judge) wants to eliminate the number of rain checks that were required at last year’s sales events. Since customer traffic will increase dramatically during the special promotions, you team has also been called upon to explain a strategy for streamlining the check-out process of numerous customers.

You will present your logistics for a large sales event to the manager (judge) for Office InnovationS in a meeting to take place in the manager’s (judge’s) office. The manager (judge) for OFFICE INNOVATIONS will begin the meeting by greeting you and asking to hear your ideas. After you have presented your information for successful sales events and answer the (judge’s) questions, the manager for OFFICE INNOVATIONS (judge) will conclude the meeting by thanking you for your work.

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JUDGE’SINSTRUCTIONS

You are to assume the role of manager for OFFICE INNOVATIONS, a large national retailer that sells office furniture, computers, office supplies and school supplies. You have asked your consulting team (participant team) to describe product management and human resource management strategies for a large promotional event.

OFFICE INNOVATIONS is a well-known national retailer located in a city with a population of 400,000 people. The manager (judge) of OFFICE INNOVATIONS is planning a huge sales event for the beginning of a new school year. School starts on August 28 and OFFICE INNOVATIONS will have a special sale for teachers on August 19 and a special sale for high school and college students on August 20 and 21. OFFICE INNOVATIONS acquires the school supply lists required by local elementary, middle and high schools. These lists help parents and students purchase the supplies required for their classes. The special back-to-school sales attract a huge number of customers, requiring the store to increase the number of workers. OFFICE INNOVATIONS must have adequate product supplies on hand to meet consumer demands and avoid the need for rain checks.

You have called upon your corporate consulting team (participant team) to suggest logistics for the special sales events that will result in greater sales and increased customer satisfaction. The consulting team (participant team) must describe strategies to position OFFICE INNOVATIONS’ corporate brands during the big back-to-school promotions, as well as describe product/service bundling strategies to sell more related merchandise. You want to eliminate the number of rain checks that were required at last year’s sales events. Since customer traffic will increase dramatically during the special promotions, you have also called upon the consulting team (participant team) to explain a strategy for streamlining the check-out process of numerous customers. The consulting team (participant team) will present their recommendations to you in a meeting to take place in your office. You will begin the meeting by greeting the consulting team (participant team) and asking to hear their strategies for the big OFFICE INNOVATIONS sales events.

After the corporate consulting team (participant team) has presented their plan, you are to ask the following questions of each participant team:

1. What changes in store logistics will make check-out for numerous customers more efficient?

2. What is one example of product bundling for OFFICE INNOVATIONS?

3. How can a retailer determine the amount of merchandise necessary for a big annual sales event?

Once the corporate consulting team (participant team) has answered your questions, you will conclude the meeting by thanking them for their work.

You are not to make any comments after the event is over except to thank the participants.

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JUDGINGTHEPRESENTATION

Team members, assuming the role of a management team for the business represented, will analyze a case situation related to the chosen occupational area. The team will make decisions regarding the situation, and then make an oral presentation to the judge. The role of the judge is that of an executive for the business.

Participants will be evaluated according to the Evaluation Form.

Please place the name and identification number label on the Scantron sheet (unless it has already been done for you).

Participants will have a 30-minute preparation period and may make notes to use during the role-play.

During the first 10 minutes of the presentation (after introductions), the team will present their analysis, their decisions and the rationale behind the decisions. Allow the teams to complete this portion without interruption, unless you are asked to respond.

During the next 5 minutes, you may ask questions of the team to determine their understanding of the situation presented. Each member of each team should respond to at least one question. To ensure fairness, you must ask each team the same questions. After asking the standard questions, you may ask other questions for clarification specific to the current team.

After the questioning period, please thank the team and state that they will be notified of your decision soon. Then complete the Evaluation Form, making sure to record a score for all categories. The maximum score for the evaluation is 100 points. The presentation will be weighted at twice (2 times) the value of the exam scores.

A maximum score of “Exceeds Expectations” in any category means that, in your opinion, the information is presented effectively and creatively; nothing more could be expected of an employee.

A “Meets Expectations” rating means that the information is presented well. Though there may be a few minor problems or omissions, they are not significant. Creativity, however, is not shown to any great degree. A combined total score of 70 or better on the written and presentation sections will earn the participant team DECA’s Certificate of Excellence at the international conference.

A “Below Expectations” score means that the information presented does not meet minimum standards of acceptability.

A “Little/No Value” score means either that some major flaw has been noted that damages the effectiveness of the presentation (this may be a major omission, a serious misstatement or any other major flaw) or that the information presented is of no value (does not help the presentation at all).

We hope you are impressed by the quality of the work of these potential managers. If you have any suggestions for improving the event, please mention them to your series director.

We thank you for your help.

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JUDGE’SEVALUATIONFORMBTDM 2013

PERFORMANCEINDICATORS Little/No Below Meets Exceeds JudgedDIDTHEPARTICIPANT: Expectations Expectations Expectations Value ScoreDIDTHEPARTICIPANT:

1. Explainthenatureofoperations? 0-1-2-3 4-5-6 7-8 9-10 ________

2. Explainthenatureandscopeofpurchasing? 0-1-2-3 4-5-6 7-8 9-10 ________

3. Identifyquality-controlmeasures? 0-1-2-3 4-5-6 7-8 9-10 ________

4. Explainbusinessethicsinproduct/servicemanagement? 0-1-2-3 4-5-6 7-8 9-10 ________

5. Describethenatureofproductbundling? 0-1-2-3 4-5-6 7-8 9-10 ________

6. Describefactorsusedbybusinessestopositioncorporatebrands? 0-1-2-3 4-5-6 7-8 9-10 ________

7. Explainthenatureofproduct/servicebranding? 0-1-2-3 4-5-6 7-8 9-10 ________

PRESENTATION

8. Clarityofexpression 0-1 2-3 4 5-6 ________

9. Organizationofideas 0-1 2-3 4 5-6 ________

10. Showedevidenceofmaturejudgment 0-1 2-3 4 5-6 ________

11. Effectiveparticipationofbothteammembers 0-1 2-3 4 5-6 ________

12.Overallimpressionandresponsestothejudge’squestions 0-1 2-3 4 5-6 ________

TOTALSCORE________

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CAREERCLUSTERMarketing

INSTRUCTIONALAREAMarketing

BUYINGANDMERCHANDISINGTEAMDECISIONMAKINGEVENT










• Identify company’s unique selling proposition. • Discuss actions employees can take to achieve the company’s desired results.• Explain customer/client/business buying behavior. • Demonstrate connections between company actions and results. • Identify communications channels used in sales promotion. • Explain company selling policies. • Discuss motivational theories that impact buying behavior.

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CASESTUDYSITUATION

You are to assume the roles of directors of marketing at TRUE MART, a national discount retailer located throughout the United States. The director of operations (judge) has asked you to develop a layaway program for the upcoming holiday season.

From home furnishings to toys, TRUE MART is your one-stop shopping location. Recently ranked third in sales among other discount retailers, TRUE MART is looking to add services that will bring in more shoppers. With the weak economy, TRUE MART management is worried that the upcoming holiday season will not be as profitable as in years past. Consumers have less discretionary income and increased constraint on credit.

To prepare for the holiday shopping season, the director of operations (judge) has decided to implement a layaway program for the store. The director (judge) hopes that being able to pay in installments will not only help shoppers, but also increase sales for TRUE MART.

The director of operations (judge) has asked you to develop a layaway program for TRUE MART. The following items must be included in your program plan:

• Fee for enrolling in layaway program• Minimum purchase requirement• Items available or not available for layaway program• Down payment requirement for purchases on layaway program• Length of time between payments• Due date for final payment• Consequences for not making final payment

The director of operations (judge) also wants you to recommend the best way to promote TRUE MART’S new layaway program to the public and the employees’ role in selling the layaway program to shoppers.

You will present your layaway program with recommendations to the director of operations (judge) in a meeting to take place in the director’s (judge’s) office. The director of operations (judge) will begin the meeting by greeting you and asking to hear your ideas. After you have presented your layaway program and recommendations and have answered the director’s (judge’s) questions, the director (judge) will conclude the meeting by thanking you for your work.

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You are to assume the role of director of operations at TRUE MART, a national discount retailer located throughout the United States. You have asked the directors of marketing (participant team) to develop a layaway program for the upcoming holiday season.

From home furnishings to toys, TRUE MART is your one-stop shopping location. Recently ranked third in sales among other discount retailers, TRUE MART is looking to add services that will bring in more shoppers. With the weak economy, TRUE MART management is worried that the upcoming holiday season will not be as profitable as in years past. Consumers have less discretionary income and increased constraint on credit.

To prepare for the holiday shopping season, you have decided to implement a layaway program for the store. You hope that being able to pay in installments will not only help shoppers, but also increase sales for TRUE MART.

You have asked the directors of marketing (participant team) to develop a layaway program for TRUE MART. The following items must be included in the program plan:

• Fee for enrolling in layaway program• Minimum purchase requirement• Items available or not available for layaway program• Down payment requirement for purchases on layaway program• Length of time between payments• Due date for final payment• Consequences for not making final payment

You also want the directors of marketing (participant team) to recommend the best way to promote TRUE MART’S new layaway program to the public and the employees’ role in selling the layaway program to shoppers.

The directors of marketing (participant team) will present the layaway program and recommendations to you in a meeting to take place in your office. You will begin the meeting by greeting the directors of marketing (participant team) and asking to hear about their ideas.

After the directors of marketing (participant team) have presented the layaway program and recommendations you are to ask the following questions of each participant team:

1. How can we measure the effectiveness of the layaway program?

2. Would it be beneficial to offer layaway year round?

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Once the directors of marketing (participant team) have answered your questions, you will conclude the meeting by thanking them for their work.













A “Little/No Value” score means either that some major flaw has been noted that damages the effectiveness of the presentation (this may be a major omission, a serious misstatement or any other major flaw) or that

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the information presented is of no value (does not help the presentation at all).


We thank you for your help.

.

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1. Identifycompany’suniquesellingproposition? 0-1-2-3 4-5-6 7-8 9-10 ________

2. Discussactionsemployeescantaketoachievethecompany’sdesiredresults? 0-1-2-3 4-5-6 7-8 9-10 ________

3. Explaincustomer/client/businessbuyingbehavior? 0-1-2-3 4-5-6 7-8 9-10 ________

4. Demonstrateconnectionsbetweencompanyactionsandresults? 0-1-2-3 4-5-6 7-8 9-10 ________

5. Identifycommunicationschannelsusedinsalespromotion? 0-1-2-3 4-5-6 7-8 9-10 ________

6. Explaincompanysellingpolicies? 0-1-2-3 4-5-6 7-8 9-10 ________

7. Discussmotivationaltheoriesthatimpactbuyingbehavior? 0-1-2-3 4-5-6 7-8 9-10 ________

PRESENTATION8. Clarityofexpression 0-1 2-3 4 5-6 ________





TOTALSCORE________

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CAREERCLUSTERMarketing

INSTRUCTIONALAREASelling

BUSINESSLAWANDETHICSTEAMDECISIONMAKINGEVENT










• Explain the nature and scope of the selling function. • Acquire product information for use in selling. • Analyze product information to identify product features and benefits. • Discuss motivational theories that impact buying behavior. • Explain the concept of product mix. • Enlist others in working toward a shared vision. • Coach others.

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CASESTUDYSITUATION

You are to assume the roles of merchandising directors at WARM&TOASTY, a national brand of upscale cold weather accessories that are sold in department stores across the country. You have been asked to create a merchandise display training outline and explain it to a new merchandising manager (judge).

WARM&TOASTY is an apparel accessory company that was founded over forty years ago. The company is unique in that it offers the warmest possible cold weather accessories in trendy styles. Hats, scarves, gloves, mittens and headbands are handmade with fleece insulation and cashmere. The patterns and styles range from traditional to hip and trendy. With retail prices relatively higher than the competition, WARM&TOASTY is considered a top-of-the-line brand and is only sold at upscale department stores.

The beginning of the winter season is approaching and WARM&TOASTY will soon be unveiling this season’s line of cold weather accessories. Once again the company has produced stylish and warm products. Merchandising managers attend to the WARM&TOASTY products by visiting each department store carrying the line and setting up merchandise displays. The goal of the display is to create an appealing image of warmth, comfort and style that will result in sales and brand loyalty.

A new merchandising manager (judge) will be setting up the WARM&TOASTY display for the first time at an upscale department store. You must create an outline for the merchandising manager (judge) on how to properly and effectively display WARM&TOASTY merchandise. You must also explain how display techniques can increase sales and brand loyalty.

You will present your merchandising display outline and explanation to the merchandising manager (judge) in a meeting to take place in your office. The merchandising manager (judge) will begin the meeting by greeting you and asking to hear about your display outline. After you have presented your display outline and explanation and have answered the merchandising manager’s (judge’s) questions, the merchandising manager (judge) will conclude the meeting by thanking you for your work.

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You are to assume the role of a new merchandising manager at WARM&TOASTY, a national brand of upscale cold weather accessories that are sold in department stores across the country. A team of merchandising directors (participant team) will create a merchandise display training outline and explain it to you.

WARM&TOASTY is an apparel accessory company that was founded over forty years ago. The company is unique in that it offers the warmest possible cold weather accessories in trendy styles. Hats, scarves, gloves, mittens and headbands are handmade with fleece insulation and cashmere. The patterns and styles range from traditional to hip and trendy. With retail prices relatively higher than the competition, WARM&TOASTY is considered a top-of-the-line brand and is only sold at upscale department stores.

The beginning of the winter season is approaching and WARM&TOASTY will soon be unveiling this season’s line of cold weather accessories. Once again the company has produced stylish and warm products. Merchandising managers attend to the WARM&TOASTY products by visiting each department store carrying the line and setting up merchandise displays. The goal of the display is to create an appealing image of warmth, comfort and style that will result in sales and brand loyalty.

You will be setting up the WARM&TOASTY display for the first time at an upscale department store. The team of merchandising directors (participant team) must create an outline for you on how to properly and effectively display WARM&TOASTY merchandise. The merchandising directors (participant team) must also explain how display techniques can increase sales and brand loyalty.

The merchandising directors (participant team) will present the merchandising display outline to you in a meeting to take place in their office. You will begin the meeting by greeting the merchandising directors (participant team) and asking to hear about their display outline.

After the merchandising directors (participant team) have presented the display outline and explanations, you are to ask the following questions of each participant team:

1. What is our target market?

2. Is it important to have consistency in displays or to have variety?

3. If we make the warmest items, do we really have competition?

Once the merchandising directors (participant team) have answered your questions, you will conclude the meeting by thanking them for their work.


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A “Little/No Value” score means either that some major flaw has been noted that damages the effectiveness of the presentation (this may be a major omission, a serious misstatement or any other major flaw) or that the information presented is of no value (does not help the presentation at all).


We thank you for your help

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1. Explainthenatureandscopeofthesellingfunction? 0-1-2-3 4-5-6 7-8 9-10 ________

2. Acquireproductinformationforuseinselling? 0-1-2-3 4-5-6 7-8 9-10 ________

3. Analyzeproductinformationtoidentifyproductfeaturesandbenefits? 0-1-2-3 4-5-6 7-8 9-10 ________

4. Discussmotivationaltheoriesthatimpactbuyingbehavior? 0-1-2-3 4-5-6 7-8 9-10 ________

5. Explaintheconceptofproductmix? 0-1-2-3 4-5-6 7-8 9-10 ________

6. Enlistothersinworkingtowardasharedvision? 0-1-2-3 4-5-6 7-8 9-10 ________

7. Coachothers? 0-1-2-3 4-5-6 7-8 9-10 ________

PRESENTATION

8. Clarityofexpression 0-1 2-3 4 5-6 ________





TOTALSCORE________

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NOTES

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NOTES

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NOTES

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NOTES

BUYING AND MERCHANDISING

2013 Sample Case Studies

This publication is designed to assist DECA members

and their local chapter advisors in preparing for

the Team Decision Making events. This booklet will

be useful in preparing students for local, state and

international competition by familiarizing them with

the format, structure and evaluation tools used in

competition.

DECA Images offers a full range of competitive event

preparation materials including:

• Comprehensive Exams

• Sample Role Plays & Case Studies

• Instructor’s Guides

• Bell Ringer Activities

• Written Event Winners

• Flash Cards

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