Chapter 14

Developing
Merchandise
Plans
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH,
10th Edition

BERMAN EVANS
 Merchandising

Planning involved in marketing

Right product
Right quantity
Right place
Right time
Right price
(Assortments,Advertising ,Point-of-sale displays
Employee utilization,Personal selling approaches)

14-2
 Micromerchandising

Retailer adjusts shelf-space allocations to

respond to customer and other differences
among local markets
E.G – vishal mega mart allocates space for
different product lines at different locations

14-3
 Cross-Merchandising

Retailers carry complementary goods and

services to encourage shoppers to buy
more
Eg- auto dealers also offer
accessories,insurance etc

14-4
 Figure 14-5: Devising
Merchandise Plans

14-5
 Forecasts
 These 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)

14-6
 Innovativeness
 Offering something new creates first mover
advantage
 Growth of the new product should be
assesed for a year
 E.g Retailer in south delhi offering cleaning
of sports shoes,

14-7
 Retail Assortment
Strategies
Width of assortment refers to the number
of distinct goods/service categories
(product lines) a retailer carries
Depth of assortment refers to the variety
in any one goods/service category
(product line) a retailer carries
)

14-8
 Brands

Manufacturer
(national)
Sony,coke

Private
(dealer or store)
Eg kenmore by walmart

14-9
 Timing
 Timing of display- some seasonal
 Delivery timing- order process timing
 Stock turnover- how often items must be
ordered

 Category management

14-10
 Merchandising Software
 General Merchandise Planning Software
 Forecasting Software
 Innovativeness Software
 Assortment Software
 Allocation Software
 Category Management Software

14-11
 Figure 14-4b: Shelf Logic Software for
Category Management Planning

14-12
 To do
 One of the leading builders in Delhi has conceptualised ‘Wedding
Mall’:another is working to create ‘Health and beauty mall”While
third builder is working on ‘automobile mall’.You have been hired by
one of these firms making one of these malls to strategise its
marketing .what product would you like to assemble and why

14-13