Developing Merchandise Plans Chapter 14 Developing Merchandise Plans

Chapter Objectives To demonstrate the importance of a sound merchandising philosophy To study various buying organization formats and the processes they use To outline the considerations in devising merchandise plans: forecasts, innovativeness, assortment, brands, timing, and allocation To discuss category management and merchandising software

Merchandising Activities involved in acquiring particular goods and/or services and making them available at the places, times, and prices and in the quantity that enable a retailer to reach its goals

Merchandising Philosophy Sets the guiding principles for all the merchandise decisions that a retailer makes Should reflect Target market desires - Supplier capabilities Retailer’s institutional type - Costs Market-place positioning - Competitors Defined value chain - Product trends

Scope of Merchandising Responsibility Full array of merchandising functions Buying and selling Selection, pricing, display, customer transactions OR Focus on buying function only

Micromerchandising Cross-Merchandising Retailer adjusts shelf-space allocations to respond to customer and other differences among local markets Retailers carry complementary goods and services to encourage shoppers to buy more

Figure 14-2: Attributes and Functions of Buying Organizations Merchandising Group (Fashion - Advisory) Buying Committees (Staple - Purchasing)

Functions Performed Merchandising view Buying 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 tasks Assortments Point-of-sale displays Employee utilization Personal selling approaches

Figure 14-4: Merchandising Versus Store Management Career Tracks

Figure 14-5: Devising Merchandise Plans

Figure 14-13: Applying Category Management

Merchandising Software General Merchandise Planning Software Forecasting Software Innovativeness Software Assortment Software Allocation Software Category Management Software Figure 14-4a&b: Shelf Logic Software for Category Mgt. Planning Discussion Questions: 2, 4, 11