Presentation on theme: "Merchandise planning Unit assortment planning. Merchandise planning process Formulation of objectives Establishment of policies Implementation of policies."— Presentation transcript:
Merchandise planning Unit assortment planning
Merchandise planning process Formulation of objectives Establishment of policies Implementation of policies to carry out department or store objectives Dollar planning – budgets Unit planning – basic stock list and model stock plan
Considerations in unit planning Merchandise quality. Price range Choice of national brands or private brands Good taste Proper timing/product life cycle Variety of product lines (product mix) Assortment strategy
Factors affecting Unit planning Type of retail institution Past sales records Determination of consumer wants Type of goods offered Elimination of merchandise
Type of Retail Institution Consistency Availability of capital resources Particular trading area served by the store Nature of goods carried Competition in the trading area
Past Sales Records Considerations: weather economic trends labor strikes supply conditions market opportunities anything that affected sales activity in a period
Determination of consumer wants
Types of Goods Offered Fashion goods Soft goods Hard goods Seasonal goods Convenience goods Staple Impulse Shopping goods Specialty goods Elimination of merchandise lines
Avoiding Mistakes Knowing when to eliminate products Pay attention to stock turnover and rate of sales for each item Does a substitute that offer better merchandising opportunities? Have merchandising efforts have failed to improve the sale of goods? Does it contributes to the sales of other products?
Planning a basic stock list Homogeneous and heterogeneous staples Seasonal and non-seasonal staples
Planning a Model Stock Plan Classification Price Size Materials Color
Quantity to Purchase Period for which purchasing is done Estimated sales for the period Merchandise on-hand and on-order Desired merchandise at the end of the period.
Period for which the purchasing is done Open-to-buy Hand-to-mouth buying Speculative buying Quantity discount
Desired merchandise at the end of the period Sales trends Popularity of fashion Stage in the product life cycle Price fluctuations in the marketplace Availability of supplies and materials Types of goods remaining in stock Type of retail institution Supply conditions Discounts Is it a new item?