What is management?

y Management in all business and organizational

activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. y Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or effort for the purpose of accomplishing a goal.

What is Merchandising?
y Fashion Industry- Levels of Merchandising y Retail Organization Merchandising y Buying Agency Merchandising y Export House Merchandising

Merchandising - involves 6 rights

y Right Merchandise

Retailers must fill their shelves with the merchandise that customer wants.
y Right Place

The location of the merchandise is of prime importance since it decides the accessibility. Much merchandise is seasonal in nature and must be on hand when it is most needed.
y Right Time

Much merchandise is seasonal in nature and must be on hand when it is most needed.
y Right Quantity

A profitable balance between volume of sales and amount of inventory is the desired goal.
y Right Price

Merchandiser must arrive at a price that is high enough to give the store profit and yet low enough to meet the competition and customers expectations.
y Right Promotion

Right balance between the investment and the appeal created for the customers

Merchandizing Management a Vishal Mega Mart

y BUYING PATTERNS: CENTRAL BUYING

The centralization of all buying activities from a central headquarters with the authority and responsibility for the selection and purchase of merchandise limited to buyers of particular merchandise categories.

y y

y y

PLANNING SALES The buyer makes a realistic estimate of prospective sales during the upcoming season. Reviews past sales figures, examine external internal factors that may effect sales, study general fashion trends that may influence the department s sales. These estimated plans are then broken down into sales goals for each of the months. PLANNING STOCK To estimate the amount of stock that will be needed to support the planned monthly sales . In order to support planned sales, a Beginning of Month (BOM) has to be estimated.

y y

y y

PLANNING MARKDOWNS Markdowns are usually planned as a percentage of each season s planned sales. They may then be allotted to individual months, according to the buyer s estimates of when and to what extent the monthly markdowns are going to be needed to sell the goods. The chief factors to be considered in establishing seasonal markdown goals are: the past experience of the store or department comparative figures of similar stores amount of the old stock on hand at the beginning of a new season.

PLANNING PURCHASES y Planned purchases means the amount of money buyer can spend on merchandise during a given period without exceeding the value of the inventory planned to be on hand at the end of that period

Buying cycle at Vishal

y y y y y y y y y y y y y y y

Review of current Season s sales Budget Planning Comparative Shopping Directional Shopping Sourcing for product development Range planning Garment samples sourcing for range Pre Selection of garment samples Price negotiation with suppliers Final Range Selection Placing orders for ranges Pre production sampling & approvals Bulk garment manufacturing Delivery of products to the retailer Purchase by customer

MANAGING MERCHANDISE ASSORTMENT

y Refers to a collection of varied types of related

merchandise that are intended for the same general use. y A merchandise assortment is usually grouped together in one selling area of the store. y Assortment plan is a compressive and detailed listing of all the merchandise that will carry in stock during a given period, classified by size, type, and price line. y A balance assortment is in which types, quantities, and price lines of merchandise in inventory closely match the demand of your target customers.

APPAREL SOURCING

QUALITY ASSURANCE
y y y y

Why Testing / Inspection ? Work flow Testing- Test Parameters Inspection

Suggestions and recommendation

1. Include more trained sales person to help customers in the store while shopping. 2. Improve quality of the products especially clothes. 3. Play good songs or soothing music in the store rather than cheap filmy songs. 4. Customer care service can be introduced 5. More branded products can be displayed in the store as people still prefer branded clothes than offered by local venders. 6. Constant reminder of discounts through pamphlets, speakers inside the store for inducing consumers for impulse buying. 7. Add more cosmetic products as its having a huge market of consumers attached to it. 8. Display of product should be improved so that the product is easily visible to the consumers. 9. Proper advertisement in press and outdoor to make Vishal Mega Mart should bevisible in the eyes of consumers. 10. Should have parking spaces in front of every store. 11. Hire more salesgirls as in ladies section its very difficult for both the consumers and salesman to interact with each other. 12. Regular training to sales person to improve there overall performance.

Recommendation 1. Customization of clothing should be given an important consideration. 2. Proper packaging and provide contrast labeling in displays of product. 3. Should apply electronic supply chain management for better inventory management. 4. Proper power back up as air conditioners are not working to their full capacity at many stores. 5. Proper placements of Gondola in the stores as space between them are very less. 6. Proper display in the gondola and top most rack of the gondola should be used for storing of inventory rather than display of product. 7. Should provide more festival schemes and at proper time. 8. Should use psychological pricing-more discounts by increasing the price 9. Proper display of cutlery items 10. Clothes should be in sync with fashion.