1. Developing Merchandise Plans
Chapter 14
Developing Merchandise Plans

2. 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

3. 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

4. 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

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

6. 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

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

8. 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

9. Figure 14-4: Merchandising Versus Store Management Career Tracks

10. Figure 14-5: Devising Merchandise Plans

11. Figure 14-13: Applying Category Management

12. 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