PRODUCT AND MERCHANDISE MANAGEMENT

presented by Praveena Rajeev Varun

Product management vs merchandise management

Product management deals with issues and set of

decisions related to the selection and removal of products from the retailers portfolio
Merchandise management relates to the selection of

the right quantity of the product and ensures its availability at the right place and time

Role of product management in retailing

Products can tangible like visible goods or

intangible like beauty parlors gyms ,banks etc Identification of products to be retailed is the core point of the retail business Varied cost implications, demand patterns and competitive factors play a major role for different product categories Critical for successful customer satisfaction Changes in product profile to provide innovative offerings (ethnic wear added to a casual wear outlet)

Product selection process

Review of product performance related to :

type of products - life cycle of the products, - trends in the product category - its strategic fit with the retailers business

Product range review assists retailers to make

decisions on :

- deletion of a product
increase in variety and range identification of new suppliers additions to product features review and revision of promotional campaigns

Effective product management is also known as

brand management

Merchandise management
Process by which a retailer attempts to offer the right quantity of the right product at the right place and time while meeting the retail firms financial goals
Merchandise management is the sum of : - planning - procurement, - handling and - control of merchandise investments of a retail operation

Merchandise unit plan

Merchandise unit plan contd

Competition Analysis - evaluation of the competitive retail stores in the trade area - used to arrive at a market positioning that identifies the retail store position vis--vis competition and defines its target customers - determined by competitive factors (number, types, and positioning of the anchor store and nonanchor stores, size and nature of the market area of retailer)

Influential competitive factors

Summary
Merchandise Management is extremely important aspect of Retail Operations Many consider it the MOST important) Good merchandise management does not guarantee success but bad merchandise management almost certainly will result in failure