Presentation on theme: "Unit assortment planning"— Presentation transcript:
1 Unit assortment planning Merchandise planningUnit assortment planning
2 Merchandise planning process Formulation of objectivesEstablishment of policiesImplementation of policies to carry out department or store objectivesDollar planning – budgetsUnit planning – basic stock list and model stock plan
3 Considerations in unit planning Merchandise quality.Price rangeChoice of national brands or private brandsGood tasteProper timing/product life cycleVariety of product lines (product mix)Assortment strategy
4 Factors affecting Unit planning Type of retail institutionPast sales recordsDetermination of consumer wantsType of goods offeredElimination of merchandise
5 Type of Retail Institution ConsistencyAvailability of capital resourcesParticular trading area served by the storeNature of goods carriedCompetition in the trading area
6 Past Sales Records Considerations: weather economic trends labor strikessupply conditionsmarket opportunitiesanything that affected sales activity in a period
9 Avoiding Mistakes Knowing when to eliminate products Pay attention to stock turnover and rate of sales for each itemDoes 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?
10 Planning a basic stock list Homogeneous and heterogeneous staplesSeasonal and non-seasonal staples
11 Planning a Model Stock Plan ClassificationPriceSizeMaterialsColor
12 Quantity to Purchase Period for which purchasing is done Estimated sales for the periodMerchandise on-hand and on-orderDesired merchandise at the end of the period.
13 Period for which the purchasing is done Open-to-buyHand-to-mouth buyingSpeculative buyingQuantity discount
14 Desired merchandise at the end of the period Sales trendsPopularity of fashionStage in the product life cyclePrice fluctuations in the marketplaceAvailability of supplies and materialsTypes of goods remaining in stockType of retail institutionSupply conditionsDiscountsIs it a new item?