Develop software for the formulation of ordering guidelines and individual store cataloguing.

This will increase the FPST. Basis of my project What are Ordering Guidelines? Ordering Guidelines are a set of numbers which indicates what and how much merchandise should be bought for the next season. The numbers are based on the sales of previous season. For instance Ordering Guidelines for Spring/Summer-2012 (SS12) will be based on the sales number of same season of the last year, i.e., SS11 sales numbers. These numbers will give an idea, to the franchisees, of the contribution of different sports categories under different gender-type and division in the last season and accordingly buying decision can be made to meet the expected demand. It enables the franchisees to buy according to the target value and target volume of the budget. These guidelines are very important for both the merchandiser as well as franchisee. It enables the franchisee achieve its sales targets with lesser efforts and increases the potential of the store(s). Merchandiser on the other hand, is responsible for secondary sales (i.e. sales of merchandise kept at store to the end consumer) and thus it has to assist stores in achieving its sales targets. Considering the number of stores being too high (more than 750 retail stores) for Adidas India, it becomes very difficult to formulate Ordering Guidelines for each and every store. Thus, a standard set of limited guidelines was required that can represent the various stores around the country. Ordering guidelines is based on the following criteria Merchandise mix The definition of merchandise mix is The breadth and depth of the products carried by retailers also known as product assortment. This in turn is based on the VM, In store behaviors, look and feel. The following are the parameters of merchandise mix. Business potential sales and size of the store Location of the store Product type Look and feel of the products Price points Customer profile

Range Width Planning IT INVOLVES FREEZING THE NUMBER AND THE ARTICLES THAT ARE TO BE RANGED IN INDIA FOR THE FORTHCOMING SEASON. Existing articles - Performance of the articles in the previous season is analysed (sales volume, contribution to business, sellthrus) and accordingly the decision is taken on whether to continue the articles or range a similar for the next season or not. Stores also play a vital role in planning the range width. Thus, following factors are to be considered: y Space & efficiency of the stores It includes analysing the sales performance of the store, walk-ins, conversion rate, turnover per sq. ft. y Display capacity of the stores It involves the number of articles that the store can put on display for sale. It helps in deriving the maximum articles a store can display. This is done through a space capacity grid developed. y Number of stores Number of stores under different store categories (e.g. A1, A2, etc.) has to be assessed, as the range will be classified accordingly (please refer to table given below). For instance if the number of A1 - C2 stores are higher in comparison to other store categories, then Low category of articles will contribute lesser to the total article range in comparison to other product categories (i.e. Premium, High, Medium & All).
Product Category / S tore Category Premium High Medium Low All A1     A2     A3    A4    B1     B2     B3    B4    C2 C3 C4 D3 D4

         

Table 6.28: Product segmentation of different store categories Fresh articles are included in the range keeping in mind the past sales trend. For example: if hooded sweatshirts have very high demand particularly in checks then more of such articles should be bought from the Universal article range. The number of fresh articles should be such that stock should be rotated 2 - 2.5 times at a store level.

Region / Category-wise ordering guidelines are prepared in order to keep the same merchandise assortment and same look throughout all the stores of a region in a particular category in the country. A total of 52 ordering guidelines are made for the business partners (franchisees) which covers all the stores of all the categories which are available in different regions. Business analysis is done, which involves: y y y Estimating the business done in various stores Gender wise analysis Gender & Sports category wise analysis

Sales data is prone to certain level of subjectivity like training provided to employees, IPL season, etc. Thus data which is affected by such elements of subjectivity is ignored and not included in analysis.