Developing Merchandise Plans
Developing Merchandise Plans
Developing Merchandise Plans
Venera Turaeva
Ruslan mamadaliev
Chapter Objectives
þ To demonstrate the importance of a sound merchandising
philosophy
þ
þ To study various buying organization formats and the
processes they use
þ
þ To outline the considerations in devising merchandise
plans: forecasts, innovativeness, assortment, brands,
timing, and allocation
þ
þ To discuss category management and merchandising
software
Retail Marketing Mix
While many elements may make up a firm’s retail
marketing mix, the essential elements may include:
Store location,
merchandise assortments
Store ambience,
customer service,
price,
Communication with customers
Definition
Staffing
Buyer: responsible for selecting the merchandise to be carried by a
retailer and setting a strategy to market that merchandise, plans
proper merchandise assortments, styling, sizes, and quantities.
Sales manager: typically supervises the on-floor selling and
Devising Merchandise Plans
Forecasts
Forecasts are projections of expected retail sales for given
periods
Components:
Overall company projections
Product category projections
Item-by-item projections
Store-by-store projections (if a chain)
Types of Merchandise
Staple merchandise
Assortment merchandise
Fashion merchandise
Seasonal merchandise
Fad merchandise
Staple Merchandise
Therefore, should assess the growth of the potential for each new
good/service they carry.
One tool to assess this potential is the product life cycle, which
shows the expected behavior of a good/service over its life
R&D at Wendy’s
Product Life Cycle