1. RETAIL BUYING AND MERCHANDISING MANAGEMENT PRESENTED BY, DEBASHREE BAGG, PRATIBHA RANI, M.SABITA

2. Merchandising: It Is the art and science of how the products, features, and services are displayed, advertised, and promoted. Helps create the experience you want your customers to have. Creates selling opportunities.

3. 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. Full array of merchandising functions – Buying and selling – Selection, pricing, display, customer transactions – Analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation.

5. Harry and David’s Merchandising Philosophy

6. FUNDAMENTALS OF MERCHANDISING Merchandise ManagementProcess by which a retailer offers the correct quantity of the right merchandise in the right place at the right time and meets the company’s financial goals. Sense market trends Analyze sales data Make appropriate adjustments in prices and inventory levels.

7. MERCHANDISE STRATEGIES There are many types of strategies: 1.Planning 2.Sourcing 3.Arranging and displays Planning:  Methods of Merchandise Planning: Gross margin Return on Inventory (GMROI) Basic Stock Method Percentage Variation Method Weeks’ supply Method Stock to Sales Method

8. sourcing Sourcing means finding or seeking out products from different places, manufacturers and suppliers Sourcing influences a) availability of stock b)margins earned by retailers and c)stock- turns achieved It improves service,product offer and overall profitability – A five step process 1.Identifying the sources of supply 2.Contacting and evaluating the sources of supply 3.Negotiating with the sources of supply 4.Establishing vendor relationships 5.Analysing vendor performance

9. Risk Factors in New Supplier Sourcing –Continuity of Supply –Time and Cost to develop new sources –Nondisclosure and Intellectual Property –Political and geographical issues

10. INTRODUCTION TO BUYING MERCHANDISE Four step process: Identify sources of supply Contact sources of supply Evaluate sources of supply Negotiate with sources of supply Buying view – Buyers manage buying functions Buying Advertising Pricing – In-store personnel manage other functions Assortments Point-of-sale displays Employee utilization Personal selling approaches

11. TYPES OF BUYING Centralized: all buying for the chain is completed from one location – Advantage: Quantity Discounts – Disadvantage: Lack of Specialized to Target Mkt. Decentralized: buying decisions made at the local store – Advantage: specialized to market’s needs – Disadvantage: loss of discounts Corporate buying-voluntary chain co-operative chain Buying committee Resident buying offices

12. ORGANISATION SOURCES OF MERCHANDISE

13. SUPPLIER SELECTION You can search for the potential vendors by looking at several information sources: – Past experiences – Interviewing with the salesperson of the supplier – Catalogs published by the vendors – Trade Directories Classifies suppliers according to the products they make Includes names of company personnel, financial status, and location of sales offices Types of Suppliers Local vs. National Suppliers Distributor vs. Direct Foreign Sources

14. Factors to Consider when Selecting Suppliers Technical, Engineering and Operations –Quality History –Quality Systems –Design Engineering capability –Sustaining Engineering capability –Facilities and Equipment –Output Capacity Ability to ramp up and down quickly Long term potential –Flexibility and responsiveness –Track record of cost reductions –Logistics expertise

15. Negotiating with vendors Two-way communication designed to reach an agreement when two parties have both shared and conflicting interests. Negotiation Issues Price and gross margin – Margin Guarantees – Slotting Allowances Additional markup opportunities Purchase terms Terms of purchase Exclusivity Advertising allowances Transportation

16. Art for effective negotiations Have at least many negotiators as the vendor Choose a good place to negotiate Be Aware of real deadlines Separate people from problem Insist on objective Information Invent options for mutual gain Let the other party do the talking Know how far to go Don’t burn bridges Don’t assume

17. BUYING OF STAPLE MERCHANDISE AND FASHION MERCHANDISE Two distinct types of merchandise management systems for managing 1.Staple (Basic) Merchandise Categories Regular products carried by a retailer – Grocery store staple examples Milk Bread Canned soup Basic stock lists specify inventory level, color, brand, style, category, size, package, etc.

18. Continuous demand over an extended time period Predictable Demand History of Past Sales Relatively Accurate Forecasts Limited number of new product introductions Hosiery, basic casual apparel Easy to forecast demand Continuous replenishment

19. 2.Fashion Merchandise Categories Products that may have cyclical sales due to changing tastes and life-styles In demand for a relatively short period of time Unpredictable Demand Limited Sales History Difficult to Forecast Sales Continuous introductions of new products, making existing products obsolete Athletic shoes, laptop computers, women’s apparel  Retailers develop fashion forecasts by relying on: Previous sales data Personal awareness Fashion and trend services Vendors

20. ETHICAL AND LEGAL ISSUES IN BUYING MERCHANDISE Contractual Disputes Chargebacks Commercial Bribery Slotting Allowances Buybacks Counterfeit Merchandise Gray Markets and Diverted Merchandise Exclusive Territories Exclusive Dealing Refusal to Deal Tying Contracts Purchase Terms and Conditions Resale Price Maintenance

21. THANKYOU