Devising Merchandising Plans
Assortment 4. Allocation
. Forecasts 2.Devising Merchandising Plans
1. Brands 5. Innovativeness 3. Timing 6.
are projections of expected retail sales for given periods.
. preparing forecasts.1. it is essential to distinguish among different types of merchandise.
Staple merchandise ± regular products carried by the retailer. Fad merchandise ± high sales generated for short period of time. Fashion merchandise ± consists of products that may have cyclical sales due to changing tastes and life-styles. Assortment merchandise ± it consists of apparel. furniture and other products for which retailer must carry a variety of products in order to give customers proper selection.
The innovativeness of a merchandise depends on a number of factors like.2.
target market growth potential fashion trends retailer image Competition customer segments responsiveness of customers amount of investment Profitability risk
For stocking the right mix of the categories of products the store can use the PLC tool.
Depth of assortment ± refers to the variety in any one good/service category a retailer carries.
Width of assortment ± refers to the number of distinct goods/service categories a retailer carries. a retailer determines its width and depth of assortment. After deciding on product quality. It includes both the breadth of the product categories and the variety within each category. Assortments
An assortment is the selection of merchandise a retailer carries.3.
a retailer chooses the proper mix of manufacturer. Brands
As a part of assortment planning. Private (dealer) brands (store brands) ± contain names designated by wholesalers and retailers. and lead to customer loyalty to retailers. and generic brands.
. are better controlled by retailers. if quality provided. are not sold by competing retailers.4. private.
Manufacturer¶s brand ± they are presold to the consumer and require limited investment in marketing. are more profitable to retailers. are less expensive for consumers.
Retailers control generics and price them well below other brands. are stocked in limited assortments. these items usually receive secondary shelf locations.
. common. economic) goods stocked by some retailers. They are form of private brand.Brands
Generic brands ± these are no-frills (general. may be of lesser quality. and have plain packages. no promotion support.
the availability of quantity discounts should be considered. the retailer should not eliminate the items. Some goods and services have peak seasons.
. These items require large inventories in peak times and less stock during off-seasons. displayed and sold. Because some people like to shop during offseason. Timing
For new products. In deciding when and how often to buy merchandise.5. the retailer must decide when they are first purchased.
how much merchandise to place on the sales floor (Shelf) how much to place in a stockroom whether to use a warehouse
A retail chain also apportions products among stores.