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MERCHANDISE MANAGEMENT

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1 MERCHANDISE MANAGEMENT

2 UNIT 1: BASIC CONCEPTS

3 WHAT IS MERCHANDISING?

4 The AMA has defined merchandising as “ the planning involved in marketing the right merchandise at the right place at the right time in the right quantities at the right price”. Merchandise management can be termed as the analysis, planning, acquisition, handling, and control of the merchandise investments of retail operations.

5 PRODUCT A physical good, service, idea, person, or place that is capable of offering tangible & intangible attributes that individuals & organizations regard as so necessary , worthwhile or satisfying that they are prepared to exchange money , patronage or some other unit of value in order to acquire it.

6 The evolution of product management
BUYING LED BUYER / MERCHANDISER LED CONSUMER LED LIFESTYLE LED

7 RETAIL PRODUCT SECTORS

8 SCOPE OF RETAIL PRODUCT MANAGEMENT

9 Strategic product management
Product opportunities & objectives Market opportunities & objectives Sales & profit objectives Resource deployment Business environment auditing Integrated information system planning Range planning Category management

10 Operational product management
Product development & selection Sourcing Sales forecasting Supply chain management Pricing Space allocation Store profiling Visual merchandising Promotions

11 Product management within the outlet
Allocate space to merchandise Display merchandise Receive & prepare stock Implement promotions Sell merchandise

12 The strategic role of the product range

13 DIFFERENT PRODUCT ASSORTMENT STRATEGIES

14 GENERAL

15 WIDE AND SHALLOW E.g. supermarkets , Variety stores Depth Of
assortment Number of categories

16 NARRAOW AND SHALLOW E.g. Convenience stores Depth Of assortment
Number of categories

17 WIDE AND SHALLOW with added depth in a number of key categories
E.g. Marks & Spencer’s Depth Of assortment Number of categories

18 SPECIALIST

19 SQUARE WIDE & DEEP product assortment
SQUARE WIDE & DEEP product assortment. Provides depth in a large number of categories E.g. hypermarkets like , B&Q Depth Of assortment Number of categories

20 DEEP product range in some categories with a limited number of products in some related “add-on categories”. E.g. Amazon books moving into music & jewelry. Tie Rack : neckwear moving into accessories Depth Of assortment Number of categories

21 NARROW & DEEP PRODUCT RANGE
E.g. specialty stores , category specialist E.g. PC World Depth Of assortment Number of categories

22 RETAIL PRODUCT MANAGEMNT PROCESS : A TRADITIONAL VIEW

23 Recognition of retail customer need
Write specification of product to satisfy need Search for a supplier that can produce a product which meets specifications Choose supplier that can produce a product which meets specifications Specify the order ( time, quantity , delivery) Evaluate performance of product & supplier

24 Consumer led approaches to retail product management

25 The functions of buying for different types of organization

26 Buying for a single independent store
The role of the buyer: Coordinating the purchasing for various products Writing orders Handling special orders Making decisions regarding merchandise returns Remerchandising the store Taking decisions with respect to pricing of the product Customer contact & selling Planning & coordinating various promotional activities & events & in store presentation of merchandise

27 Buying for a Chain Store or a Chain of Department Store
Buying for Non – Store Retailers – Catalogues, Direct Mail, Home shopping, Internet retailing ,etc

28 Centralized retail buying organizations
Increased buying power allows buyers to negotiate better terms with suppliers. Specialist buyers can devote more time to product / market analysis Sales data can be aggregated to improve forecasting Economies of scales are achieved , resulting in lower sourcing selection costs per product. The quality level of the product offer is better controlled

29 A more consistent product assortment is presented in order to reinforce the retail brand identity & support national promotions. The quality of buying & stock control decisions is consistent across outlets. Store personnel are freed from buying responsibilities.

30 Decentralized buying Retailers, who have a product range that is dominated by products with a relatively stable demand , have more opportunity to allow the retail outlets to have an element of control. Store or departmental managers may place orders , according to the sales pattern. This allows outlets to respond to local variations. It is a way of improving customer service & productivity of the outlet.

31 Buying organizational managerial roles
Buying director Merchandise managers Buying controllers Buyers Merchandisers Category mangers Assistant buyers Buying ( administration) assistants Allocator / stock distributor

32 Additional buying decision makers
Technologists & quality controllers The product development team Corporate Logistics Buying committees The retail decision making unit Group dynamics

33 FACTORS AFFECTING THE BUYING FUNCTION
Type of retail business General or specific Organizational structure Inter & intra organizational factors

34 A theory of merchandising buying behavior , Jagdish N Seth

35 The merchandiser : role & responsibilities

36 Basic duties of a merchandiser
Planning Directing Coordinating Controlling

37 The role of divisional merchandise managers would involve the following functions:
Forecasting sales Translating sales into inventory levels Inspiring commitment & performance on the part of the merchandisers & buyers Assessing merchandise and buyers performance

38 The buyer : role & responsibilities

39 Responsibilities : Developing merchandise strategies for the product line, store he /she is responsible for. Planning & selecting merchandise assortments Vendor selection, development & management Inventory management

40 RETAIL BUYING ORGANISATIONS

41 PRIVATE LABELS

42 When the retailer decides to sell products or a line of merchandise which is owned, controlled, merchandised and sold by the retailer in his own store / chain of stores, he is said to be selling Own Label / brand or Private Label merchandise

43 The concept of the private label
The Private Label Marketing Association defines store brand products as “all merchandise sold under a retail store’s private label. That label can be the store’s own name or a name created exclusively by that store.

44 In some cases, a store may belong to a wholesale buying group that owns labels, which are available to the members of the group. These wholesaler – owned labels are referred to as controlled labels.

45 They account for 40 per cent of Wal-Mart sales ($126 billion or Rs 5,16,600 crore), 50 per cent for Tesco ($36 billion or Rs 1,47,600) and are eating into a larger chunk of the organized retail sale in developed markets. And apart from the multibrand retailers, a category of private label-only retailers has also been created — Ikea, Toys ‘R’ Us, Zara — who sell only private label brands.

46 Classification of a private label
Store brand An umbrella brand Individuals brands

47 Some of the retail players having store brands in India are as follows:

48 FOOD AND GROCERY Spencer's Daily Subhiksha Nilgris Nirma-Radhey

49 FASHION Shoppers' Stop Westside Lifestyle Ebony Globus

50 OTHERS Vivek's Planet M Music World Crossword Gautier Lifespring

51 Why store brands? You have control over your pivotal product, and that means over your business. 2. It is the only way to be able to market high quality product, if you so choose. 3. You save substantially in product cost. You can spend these savings on anything you please, including higher product quality.

52 Umbrella brand Amul Loreal Videocon Johnson Sony Heinz

53 Benefits of Family branding
It is convenient to adopt a family brand for related products. Promotion of such products becomes easier and less expensive under a family brand . But the marketer in such cases has to ensure that all the products offered under the family brand maintain the same standards of quality. If one product in the group becomes a low quality product, it will affect the entire range of products under it.

54 Individual branding

55 The advantage of individual branding is that each product has an image and identity that is unique.
This facilitates the positioning of each product, by allowing a firm to position its brands differently.

56 Family brand names: Heinz
Individual brand names: Examples include Farleys (baby food), Linda McCartney Foods (vegetarian meals) and Weight Watcher’s Foods (diet/slimming meals and supplements). Combination brand names: Heinz Tomato Ketchup and Heinz Pet Foods

57 The need for a private label

58

59 THE PROCESS OF PRIVATE LABEL CREATION

60 Stage:1 – Defining the objectives
Stage:2 – Defining the gaps in the market Stage:3 – Decision on make or buy & sourcing Stage:4 – Determine the market & sales strategy Stage:5 – Determine the measure of performance

61 CATEGORY MANAGEMENT

62 The concept of category management
It is a retailer – supplier process of managing categories as strategic business units, producing enhanced results by focusing on delivering consumer value.

63 Thus category is a basic unit of analysis for making merchandising decisions.
In general, a category is an assortment of items that the consumer sees as reasonable substitutes for each other. The fundamentals of category management revolve around managing categories as Strategic Business Units

64 The reasons for the emergence of category management
Consumer changes Economic & efficiency considerations Competitive pressures Information technology advances

65 The components of category management

66 STRATEGY BUSINESS PROCESS ORGANISATIONALCAPABILITIES PERFORMANCEMEASUREMENT TRADING PARTNER RELATIONSHIP INFORMATION TECHNOLOGY

67 The category management business process

68 CATEGORY DEFINITION CATEGORY ROLE C A T E G O R Y V I W CATEGORY ASSESSMENT CATEGORY SCORECARD CATEGORY STRATEGY CATEGORY TACTICS PLAN IMPLEMENTATION

69 Process Steps Analysis Objective I. Category Definition Consumer segmentation Determining what items (SKU’s) should be included in the category, and its structure according to the consumer’s purchasing behavior II. Category Role Cross category analysis Conducting a portfolio analysis of the categories to determine their relative importance III. Category Assessment Consumer, market, retailer and supplier evaluation Determine opportunities for improving the category’s business by identifying opportunity gaps in sales, profits, or turns IV. Category Balanced      Scorecard Business performances measures Establishing specific performance targets for the category plan consistent with the category role V. Category Strategies Evaluation of strategic choices Assigning strategies to each category segment VI. Category Tactics Evaluation of tactical choices for the category Quantifying the tactical requirements to achieve the scorecard targets

70 Step 1: category definition
A distinct , manageable group of products / services that consumers perceive to be interrelated and /or substitutable in meeting a consumer need. The category definition should be based on how the consumer buys, and not how on retailer buys. This help decides the products that represent a category , sub category and major segmentation.

71 Example ..

72 Examples from the categorization structure include:
Master Category Category Sub-category Micro-category Marketing Advertising Publications Newspapers & Comms Document Postal Courier Documented Post Management Services Travel Business Rail Travel <none> Travel Professional & Clerical Casual Typists Technical Services

73 Step 2 defining the category role
It determines priority and importance of various categories. Within a category, products will be assigned sub category roles. Examples-

74 Traffic builders- products with high market share
Transaction builders- frequently purchased products on impulse Cash generators- products with high stock turns and margins Image creators- products that are promoted with some feature that makes them unique Excitement creators- product with high impulse purchase

75 4 consumer based category role-
Destination category- retailer is the customer first choice for specific products. Preferred/ routine category- retailer decides that he wishes to be the preferred provider of these products. Occasional / seasonal- that are purchased infrequently or follow cyclical patterns. Convenience category- helps the retailer reinforce the target consumers image of the retailer as the place for one stop shopping. They are those that the consumer finds convenient to pick up at a neighborhood retailer, rather than visiting another retailer who may offer a wide selection or better prices.

76 Step 3- category assessment
In respect to turnover, profits and return on assets.

77 Analyzing product categories
Sleepers – identify key products, de list slow movers, give quick movers more shelf space Winners – continue current policies , be alert in adopting new products, Market share Questionable –limit product mix to core assortment, look for price raises, minimize shelf space Opportunities – harmonize product mix with market trends, improve price image via low prices, maximize shelf space and support promotional program Market growth

78 Aim of consumer assessment should be to understand-
Why consumers buy a particular product? What is it that influences them the most? The occasion when category is purchased. The relationship of categories in the buying process The location where purchases is made

79 Factors which influence the assessment of market are-
Price as compared to competitors Sales and consumption trends of categories and sub categories. Retailers market share for categories and sub categories. Comparison of retailers assortment to competitors

80 Factors which influence the assessment of retailer are-
Retailers sales trend Trend in profits and operating expenses Trends in product acquisition costs Levels of service Productivity of current category assortment

81 Factors which influence the assessment of supplier are-
Sales and market share trends among suppliers Efficiency of suppliers information and physical flow Suppliers brand development at the retail outlet

82 Step 4 – category performance measures
Includes- Sales Profits Market share Inventory turnover Changes in assortment

83 Such a scorecard serves three purpose-
Provides discipline and structure to category business plan Influences organizational practices It facilitates cross business comparison

84 Step 5- category strategies
It address the key question of how- working with its supplier’s – it will market its category and components.

85 7 typical marketing strategies are-
Traffic building- drawing consumer traffic to store Transaction building- increasing the size of average transaction or total store transaction Turf defending- it aggressively positions certain parts of category to protect retailers business in the category from targeted competitors. Profit generating- products which generate higher margins and have a substantial amount of loyalty and which are not really influenced by price fluctuation come under this category

86 Cash generating- it focuses on using parts of the category to generate cash flow for the retailer. They are fast turning products, with an efficient supply rate and low inventory turnover. Excitement creating- this strategy is used to communicate a sense of urgency or opportunity to the consumer. e.g.. New or seasonal products. Image enhancing- to help the retailer communicate its desired image to consumer in respect to- price, service, quality , variety

87 Step 6- category tactics
It works towards determination of optimal category pricing, promotion, assortment and shelf management, which re necessary to achieve the agreed on role, scorecard and strategies

88 Step 7- category plan implementation
Key components are- The plan approval process Assigning responsibilities Scheduling

89 Step 8- category review Is the review of the progress and the actual achievement of the targets set for category

90 The role of the category captain

91 Category captain Is a supplier who forms an alliance with the retailer to enable the latter to develop consumer insight, satisfy consumers & improve performance and profit across the entire category. Most often he is the leading manufacturer in the category. He has to look beyond its own products & brands & look at promoting the entire category, even the product brands of the competitors.

92 Category management & ECR

93 Drawbacks of category management
Its adoption requires a considerable amount of reorganization. Inhibitions like: Skills shortage Difficulty in accepting suppliers as partners Reluctance to change inappropriate organizational structure Lack of clear strategic plans for product ranges Lack of variety offered to customers Risk that consumer preference given low priority Threat to small suppliers

94 Risk of putting other suppliers at risk because of category captains.

95 Unit 2: RETAIL PRODUCT MANAGEMENT PROCESS FROM CONCEPTION TO DELIVERY

96 The process of merchandise management

97 Store (format) strategy
Business strategy Store (format) strategy Merchandise strategy Merchandise Planning Product Price Range Assortment space Sourcing Make or buy Vendor Identification Negotiations Placing the order Allocation Of Merchandise To stores Performance Monitoring & evaluation Store operations planning

98 The implications of merchandising planning
Finance Marketing Warehousing and logistics Store operations

99 Finance : Payments to suppliers
Profitability measurements Merchandise planning Developing advertisements Developing sales promotions Marketing : New product introduction Warehouse & logistics : Details of purchase order Details of allocations Store operations: Space planning Communication about new products & their features

100 The process of merchandise planning

101 STAGE 1- developing the sales forecast
Forecast are typically developed to answer the following questions: How much of each product will need to be purchased? Should new products be added to the merchandise assortment? What price should be charged for the product?

102 Process of developing the sales forecast
Reviewing the past sales Analyzing the changes in the economic conditions Analyzing the changes in sales potential Analyzing the changes in the marketing strategies of retail organization and the competition Creating the sales forecast

103 STAGE 2- determining the merchandise requirements
Planning in merchandising is at two levels: The creation of merchandise budget The assortment plan

104 The merchandise budget
It comprises of: The sales plan The stock support plan The planned reductions The gross margins

105 Assortment plan Variables on the assortment plan: Price level
Styling design themes Colors Flavors Pack size Fabrication/ type

106 The merchandise hierarchy
O M P A N Y D E P A R T M N Merchandise Sub category Merchandise category Merchandise classifications Style price Point SKU

107 Types of merchandise Staple/ basic merchandise Fashion merchandise
Seasonal merchandise Fad merchandise

108 Variety of merchandise
Width of assortment Depth of assortment Consistency

109 STAGE 3- merchandise control- the open to buy
The purpose of the concept of open to buy is twofold. First, depending on the sales for the month and the reductions, the merchandise buying can be adjusted. Secondly, the planned relation between the stock and sales can be maintained.

110 Open to buy ensures that:
Limits overbuying and under buying Prevents loss of sales due to unavailability of the required stock Maintains purchases within the budgeted limits Reduces markdown which may arise due to excess buying

111 Calculating the open to buy
Open to buy= planned EOM stock – projected EOM stock This process of deciding upon and then arriving at the quantity of each product or category of merchandise is termed as Assortment planning

112 STAGE IV- assortment planning
Merchandise assortment plan The model stock plan

113 Merchandise assortment plan
SEASON DEPARTMENT-----

114 ven dor styl e uni ts Cos t Retail price Planned purchases tot al Jan Feb . ma rch Ap ril ma y Ju ne

115 The model stock plan Step1: identify which factors affect the customer’s buying decision and the number of levels under each attribute Step 2: identify the number of levels under each attribute Step 3: allocate the total units to the respective item categories

116 Managing supply base

117 Types of supplier Power Manufacturers Agents
Wholesalers and distributors “grey market” sourcing Alliances and concessions

118 The supplier search Global sourcing Trade shows Literature

119 Li & Fung is amongst the largest buying agencies in the world, a Hong Kong-based company with $14 billion in turnover, which sourced goods worth $700 million from India last year. Bharati sources merchandise from India for European retailers.

120 RETAILERS WHO SOURCE BIG-TIME FROM INDIA
Gap International4,000 Wal-Mart2,500 JC Penney1,000 Target1,000 Tommy Hilfiger800 Nike700 Source: Suppliers’ estimates (in Rs cr)

121 The choice of supplier Initial selection factors
Outsourcing supplier assessment

122 Criteria Product range and technical quality Price Delivery Service
General qualitative supplier assessment

123 Process of merchandising buying

124 Step 1 : identifying the sources of supply
Costs associated with global sourcing include- Country of origin effects Foreign currency fluctuations Tariffs Foreign trade zones Cost of carrying inventory Transportation costs

125 Step 2 : contacting and evaluating the sources of supply
Criteria to be kept in mind- The target market Image of retail organization The merchandise and price offered Terms and services offered by the vendor The vendor’s reputation and reliability

126 Step 3 – negotiating with vendors
Types of discounts that could be available to buyer- Trade discounts Chain discounts Quantity discounts Seasonal discounts Cash discounts

127 Step 4 – establishing vendor relations
The buyer needs to build on- Mutual trust Open communications Common goals Credible communications

128 Step 5- analyzing vendor performance
Key criteria- Gross margin contribution Adherence to company policy Customer acceptance level Merchandise quality

129 Other.. Total orders placed on the vendor in a year
Total returns to the vendor Initial markup on the products The markdown if any Participation of vendor in various schemes and promotions Transportation expenses if borne by the retailer Cash discounts offered by the vendor Sales performance of the merchandise

130 Stages of development in retailer – supplier relationship

131 Long Term Rshp Ongoing transactions Partnership Collaborative systems
Vertical Integration Owning suppliers One off transactions Alliances Franchises licenses Repeated transactions

132 Product quantity decisions and stock management

133 The economic order quantity ( EOQ)
Economic order quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs. The single-item EOQ formula finds the minimum point of the following cost function: Total Cost = purchase cost + ordering cost + holding cost - Purchase cost: This is the variable cost of goods: purchase unit price × annual demand quantity. This is P×D - Ordering cost: This is the cost of placing orders: each order has a fixed cost C, and we need to order D/Q times per year. This is C × D/Q - Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is H × Q/2

134 Cost involved in acquiring a product-
Administration cost of placing an order- labor, paper, telephone bills Cost involved with supplier search and selection- overseas sourcing trips, negotiations, day to day cost Cost in expediting the order- checking that the order is going to arrive on time and making alternative arrangements. Inspection of product on arrival

135 Stock management systems
SMS issue reports which give the following information- a list of product lines Sales of the product line The turnover Amount of goods on sale , available to sell: The amount of goods on order The level of availability target The sales forecast Minimum stock level , reorder level and safety stock.

136 Sales forecasting Factors like- Seasonality Fashion
Product endorsement Price fluctuations Likely product substitutions Complementary product sales Promotional activity

137 Managing the response to sales

138 Sales based ordering

139 Automatic replenishment

140 ECR and quick response

141 ECR It is a managerial approach that starts with consumer demand, and then gears the whole of the supply chain to responding to that demand. It is a customer driven, demand – pull product management system; “ a seamless interface from consumer purchase to manufacturing schedules” It involves not only all the operational areas of retail management , but also involves the way in which retailers, suppliers and third party service suppliers work together to achieve two fundamental objectives simultaneously- maximizing customer satisfaction and minimizing total costs

142 Nature of goods ECR systems generally concern food and fast moving consumer goods, which have relatively stable demand patterns and higher volumes.

143 The demand management is normally performed at distribution centre level and in higher unitization than the single product item , for example the “ crate load”

144 Quick response It deals with higher value , lower volume product ( typically clothing and home furnishings) . They also involve supply techniques that allow retailers to respond more effectively to fashion and seasonal variations. In quick response system sales information is sent electronically to the supplier without intervention from the buying office, so that supplier is as up to date as the retailer on what is selling.

145 Supplier involvement in responsive replenishment systems

146 Drawbacks of sales responsive replenishment system
Is the small, frequent delivery pattern Extra transportation and pre retailing function Store operations difficult

147 Unit 3: RETAIL PRODUCT MANAGEMENT PROCESS IMPEMENTATION & EVALUATION

148 Product range planning and selection

149 Space management Objectives-
To optimize both short term and long term returns on the investment cost of retail space. The second is to provide a logical, convenient and inspiring interface between the product range and the customer. Another objective is to make sure that the right selection of products is available; that products fit into retail space and that stock –outs are avoided. Space allocation has an important role to play in communicating the retail brand.

150 Space management process
Stage 1 – measuring retail space Stage 2 – dividing the space into selling areas Stage 3 – determining the layout and deciding on product adjacencies Stage 4 – allocating space to individual products

151 Practical and customer considerations
Seasonality Product characteristics Customer characteristics Fixture limitations

152 Space allocation systems
Qualitative and quantitative data as inputs are-

153 Product information Direct product cost or activity based cost
Sales data Size of products Size variations Complementary products Bulk delivery restrictions

154 Fixture information Specific display requirements Size of fixturing
Number of fixtures available

155 Product manager’s knowledge
Space elasticity Stock holding objectives Category lifecycle stage Display and fixturing requirements Marketing objectives

156 Retail design

157 Formulating a store design

158 1) materials The type of product being sold The cost involved
The store traffic Fashion Environmental and safety concerns

159 Atmospherics Color Music Aroma Texture temperature

160 3) lighting

161 4) signage

162 The exterior design

163 Flagship stores and lifestyle retailing

164 Visual merchandising

165 1) Fixtures and fittings
Gondolas Round fixtures Four – ways Shelving Rails Bins baskets and tables

166 2) Product presentation
Vertical stacking Horizontal stacking Hanging

167 3) Store layout A grid layout Free form layout

168 4) Displays On shelf displays Feature or off shelf displays
Window displays

169 Window displays

170 Visual merchandising in non store retailing

171 Communicating the product offer

172 Marketing communication objectives

173 Strategic Long term ( examples)
Establishing a clear market position for a retailer Changing consumers’ attitude towards a retailer Improving a retailer’s image Portraying a retailer as a customer focused organization Enhancing a retailer’s reputation as a responsible corporation

174 2) Operational & promotional Short term ( examples)
Increasing customer awareness of category X Increasing sales of brand Y Increasing transaction level per customer Informing customer that prices have been reduced Encouraging customers to buy product A with product B

175 Retail communication channels
Advertising Sales promotion Point of purchase support Publicity Strategic product communications- cultural events, film releases , ethical issues Personal communications' communications through packaging

176 Retailer – supplier related issues
Different promotional objectives Attitude to POS materials Conflicting images Non compliance at store levels

177 Evaluating retail product management performance

178 Factors to be kept in mind-
Target market and demand Store policies Competition Economic conditions Uniqueness of the product

179 Elements of retail price
Fixed cost Variable cost

180 Retail price Retail price = cost + mark up Cost = retail – mark up
Mark up = retail price - cost

181 Determining the price

182 Break even revenue Fixed costs 1 – ( vs. per unit / sp per unit

183 Break even units FC Unit contribution margin Where unit contribution margin, = SP per unit – VC per unit

184 Mark up pricing markup% at retail = (retail selling price – merchandise cost) / retail selling price Markup % at cost = ( retail selling price – merchandise cost) / merchandise cost

185 Cumulative mark up Markup % at retail = retail value – cost value Retail value

186 Initial mark up Initial mark up % = ( operating expenses+ net profit + mark downs+ stock shortages + employee & customer discounts+ alteration costs- cash discounts) / ( net sales + mark downs + stock shortages + employee & customer discounts)

187 Retail pricing policies / strategies
Market skimming Market penetration Price bundling Leader pricing Multi unit pricing Every day low pricing Odd pricing Single pricing Multiple pricing

188 Evaluating merchandise performance
ABC Analysis : pareto ( ABC) ( 80/20 rule) Sell through analysis Multiple attribute method

189 The concept of gross margin return on investment

190 UNIT: 4 RETAIL PRODUCT MANAGEMENT APPLICATIONS

191 Product management in non store retailing
The general catalogue The specialist catalogue TV retailing Internet retailing

192 Store and non store retailing: a comparison

193 Store retailing Non store retailing PRODUCT PRESENTATION
Real , tangible Represented by image SELLING ENVIRONMENT Use of store environment to enhance experience Difficult to create atmosphere, although websites better than printed area PRICING Flexible & highly visible, but time consuming to make comparisons Easy to compare between competitive non store retail offers CUSTOMER SERVICE Direct, personal Detached, impersonal ; product information CONVENIENCE May be low, depending on individual circumstances High (in principle) Low for impulse purchase PRODUCT DELIVERY Usually immediate Not immediate


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