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Fashion Merchandising & Promotion. What is Merchandising? Fashion Merchandising involves the activities of planning, buying and selling apparel and accessories.

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Presentation on theme: "Fashion Merchandising & Promotion. What is Merchandising? Fashion Merchandising involves the activities of planning, buying and selling apparel and accessories."— Presentation transcript:

1 Fashion Merchandising & Promotion

2 What is Merchandising? Fashion Merchandising involves the activities of planning, buying and selling apparel and accessories. It is the central function of Apparel Retailing Includes the following areas: – Retail Positioning – Merchandise Buying – Merchandise Promotion – Visual Merchandising

3 The Retail Segment General Merchandisers – Market all types of goods in multiple price ranges and try to satisfy as many needs of broad range customers. Examples: Sear, J.C. Penney, Macys Specialized Merchandisers – Offer limited lines of related products targeted to more defined customers Examples: Aéropostale, Forever 21, Victoria's Secret

4 Types of Retail Merchandisers Department Stores – Large scale general merchandisers that offer many varieties of merchandise grouped into separate departments. Chain Stores – A group of stores that is owned managed, merchandised and controlled by a central office and have similar goods and prices Can be general or specialized merchandisers

5 Discount Stores – Retail establishments that sell merchandise at lower than recognized market-level prices Specialty Stores – Carry large selections of limited classifications of merchandise. Usually have lower volume and higher prices Non-Store Retailers – Selling without a conventional facility Types of Retail Merchandisers

6 Match the Following Store with its Retail Type Types of Retail Merchandisers 1.Department Store 2.Chain Store 3.Discount Store 4.Specialty Store 5.Non-Store A. Coach B. Amazon C. Macys D. T.J. Max E. Forever 21 Check your answers with Mrs. Wendt

7 Retail Positioning Retail Positioning refers to where a retailers situates itself in the market. General Retail Positioning Price Categories – Designer: (couture) original high priced-fashion for the tiny class market; distinctive style and emphasize top quality – Bridge: secondary lines of high priced designers; made with expensive fabrics, fine details & produced in small quantities

8 General Retail Positioning Price Categories – Better: high quality, but more reasonable prices; they are ready to wear garments that are more available to consumers than high fashion designs – Moderate: medium priced merchandise with well known brand names; sold through department & chain stores as well as specialty stores – Budget: lowest price category of apparel; sold on retail racks and shelves; no original designs resulting in knock-offs Retail Positioning

9 1.Designer 2.Bridge 3.Better 4.Moderate 5.Budget Retail Positioning Match the Brand with its Price Category Check you answers with Mrs. Wendt A. Liz Claiborne B. Valentino for Angelina Jolie C. Gap D. Michael Kors for Macys E. No Boundaries

10 Target Markets Retail Positioning includes choosing a Target Market – Target Market: specific segment of a total market that a company wants as customers and toward whom it directs its marketing efforts. – Based on Demographics: Age, Gender, Race, Education, Religion, Income, Occupation, and Geographic Location Psychographics: statistics that try to explain consumer behavior such as: Lifestyle, Values, Attitudes & Self- Concept

11 Target Markets Match the Store with its Target Market 1.Forever Banana Republic 3. Nike A. Various age groups with athletic lifestyles B. Teen to Twenties, with little to medium income C. 30 – 40 year old working women; with middle to upper middle income Check you answers with Mrs. Wendt

12 Retail Positioning Strategies Product Strategy: the assortment breadth & depth a retailer offers – Breadth: the number of different item categories – Depth: the quantity of each item available – Three main approaches Broad & Shallow: many categories, small quantity Narrow & Deep: few categories, large quantity Moderate breadth & depth: balance between categories & quantity

13 Price Strategy: pricing strategy should correlate with a retailers image, target market and competition. – Quality & price usually, but not always correlate High price = high quality Low price = low quality Retail Positioning Strategies

14 Price Strategy Continued – Pricing Approaches Prestige Pricing: setting high prices on items to attract customers who want quality goods or the status of owning expensive & exclusive merchandise Price Promoting: advertising special price reductions of goods to bring in customers Value Pricing: selling items below the suggested retail price Everyday low pricing: promotes the idea that shoppers can shop anytime in the store and receive a fair price Retail Positioning Strategies

15 Place Strategy: relates to the site location and physical design of the site. – Locations Central business district: stores in cities or towns Neighborhood shopping centers: stores Community shopping centers: 15 – 30 stores Regional shopping centers: Enclosed malls Super regional centers: Mega-malls Retail Positioning Strategies

16 Place Strategy Continued: – Facilities Design Store exterior – Visible to traffic – Compatible with surroundings – Convenient for consumers Store Interior – Selling areas: merchandise is displayed – Support areas: dressing rooms, bathrooms, checkout, etc. Retail Positioning Strategies

17 Merchandise Planning & Buying Merchandise Planning: involves estimating, as correctly as possible, consumer demand and how it can be best satisfied Merchandise Buying: is done through vendors, such as apparel producers, to obtain the merchandise decided upon during the planning phase

18 The Merchandise Cycle Merchandise Planning & Buying PlanningBuyingSelling

19 1.Gather Information from – past sales records – Sales people – Consumer opinions and behavior – Merchandising bureaus – Vendors – Trade information – Comparison shoppers Merchandise Planning & Buying

20 2. Prepare Buying Plans – Buying plan Describe the types and quantities of merchandise to purchase – Create a dollar merchandise plan Estimated budget for stock, sales and profit – Assortment Plan Variety and quantity of stock keeping units (SKU) to be carries Merchandise Planning & Buying

21 3. Select Merchandise resources – Manufacturers – Wholesalers – Web sites & catalogs – Importers – Vendors Merchandise Planning & Buying

22 Market Week: scheduled periods of time during which producers introduce their new collections or lines (fashion shows all week) – Collection: total number of garments in a designers or producers seasonal presentation, especially for high priced garments – Line: group of styles within a collection that are produced and sold as a set of new selections Typically has one design element in common throughout all garments – Color, line, balance, silhouette, etc. Merchandise Planning & Buying

23 Example of a Line Merchandise Planning & Buying

24 Major Domestic Fashion Markets – New York – California: L.A. & San Francisco – Dallas – Chicago – Miami – Atlanta Merchandise Planning & Buying

25 Major Foreign Markets – London, England – Paris, France – Milan, Italy Merchandise Planning & Buying

26 Merchandise Promotion Purpose of Fashion Promotion – Inform Create awareness and understanding of products – Persuade Convince consumers of the benefits of using/buying products – Remind Product availability, encourage purchases and stimulate additional purchases

27 Promotion Levels – Consumer: directly to consumers, usually done on a national scale by companies that do not sell directly to consumers – Trade: aimed within the industry Fiber and fabric companies promote to manufacturers – Retail: promotion by a store to its customers Promote merchandise chosen for their target market in hopes to create demand Merchandise Promotion

28 Promotion Program: details of efforts for a period of time. It includes – Goals & objectives – Message or theme – Specific Promotion activities – Timing of activities – Media to be used – Assignments of responsibility – Budget – Evaluation Methods Merchandise Promotion

29 Advertising: any paid form of non personal sales message made by a sponsor through a communication medium – Purpose: Build a companies image Promote a brand or product Announce a sale – Retail Advertising Purpose Bring customers to a sight Promote an image Merchandise Promotion

30 Types of Advertising – Product advertising: designed to sell specific, identifiable merchandise items, lines or services – Institutional advertising: designed to sell a reputation of an organization rather than a specific product – Cooperative advertising: sharing the cost with two or more organizations Merchandise Promotion

31 Forms of Advertising – Merchandise Packaging: Company names, logos, slogans on shopping bags, boxes, paper, etc. – Newspaper – Magazines – Outdoor: billboards, public transit ads, etc. – Direct Mail – Radio – Television – Websites Merchandise Promotion

32 Visual Merchandising VM: physical display of goods in the most attractive and appealing ways VM Purpose: – Sell goods and promote store image – Educate about new items trends – Show how items can be worn – Grab customer attention – Provide information on price or special features

33 Store Décor & atmospherics – Décor: style and appearance of interior furnishings Theme should be carried throughout the store to fit companys image Should coordinate with merchandise – Atmospherics: features intended to create a particular emotional mood or attitude through sound, smell and the décor Uses psychology to induce buying Examples: type of music or pleasant aromas Visual Merchandising

34 Merchandise Presentation: includes the ways that goods are hung, placed on shelves, or made available for sale in retail stores – Shoulder-out presentation Garments are hung with only one side showing from shoulder to bottom (like hung in your closet) – Face-forward presentation Clothing is hung with the front fully facing the viewer – Always done at the entrances and aisles of a store Visual Merchandising

35 Merchandise Fixtures Visual Merchandising A-frames Base cabinets Build-ups Card holders C-rack Drapers Dump or table bin Four-way rack Gondola Grid units Hangbars Pedestal units Pegboard Quad rack Rounders Showcases Slatwall units Spiral costumer Straight arm Superquad Tables T-stand Tier tables or racks Two-way racks Waterfalls

36 Interior Store Display: individual and notable physical presentations of merchandise – Use unique equipment or fixtures to feature distinctive merchandise – Should be color-coordinated, accessorized, and self-explanatory Window Display: seen from outside the store – Enclosed; semi-enclosed; open; island Visual Merchandising

37 Displays are intended to: – Stimulate product interest – Provide information – Suggest merchandise coordination – Generate traffic flow – Remind customers of planned purchases – Create additional sales of impulse items – Enhance the stores visual image Visual Merchandising

38 Displays should include the following: – Merchandise One-category groupings; related groupings; Themed groupings; variety – Lighting Floodlighting; spotlighting; pinpointing – Props Mannequins, bust forms; decorative props; structural props – Signage Visual Merchandising


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