Lecture 7 Merchandising Overview

De La Salle – College of Saint Benilde

VERTICAL SOLUTIONSVERTICAL SOLUTIONS

Lecture 07: Merchandising

PRESENTED BY:

Ian Agoncillo Pacaña


Agenda

What is Merchandising? What is a Merchandising Philosophy? Considerations in Devising Merchandise Plans Category Management Merchandising Software


What is 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.

• PLACES• TIMES• PRICES• QUANTITY

ACQUIRE MAKE AVAILABLE MEET RETAILER GOALS


Merchandising Philosophy

• Sets the guiding principles for all the merchandise decisions that a retailer makes

• Should reflect – Target market desires– Retailer’s institutional type– Market-place positioning– Defined value chain– Supplier capabilities– Costs– Competitors– Product trends


Considerations in Devising Merchandise Plans



1. Forecasts– Projections of expected retail sales for a

given period

2. Innovativeness– Merchandising new goods and services can

provide retailers great opportunity to profit.

3. Assortment– Is the selection of goods a retailer carries.



4. Brands– Retailers choose the proper mix of manufacturer,

private and generic brands.

5. Timing– When goods are first purchased, displayed and

sold.

6. Allocation– How much merchandise to place on the sales

floor, how much to place in the stockroom and whether to use a warehouse.


Category Management

• A merchandising technique

• A way to manage a retail business based on the performance of product category results rather than individual brands.

• Means adapting merchandise for each store to best satisfy customers


Applying Category Management


Shelf Logic: Software for Category Management Planning


Shelf Logic: Software for Category Management Planning


Merchandising Software

• General Merchandise Planning Software

• Forecasting Software

• Innovativeness Software

• Assortment Software

• Allocation Software

• Category Management Software


Group Activity

• Think of a Product that your group would want to Retail

• Create a Merchandising Plan that will consider the following– Forecasting– Innovation– Assortment– Brands– Timing Allocation– Allocation


Question and Answer

Q & A


References

• Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person)

Education

Lecture 7 Merchandising Overview