11/29/2010

Merchandising
The planning involved in marketing the right
merchandise or service at the right place, at the right
time, in the right quantities, and at the right price
(American Marketing Association)

Element of marketing concerned especially with the

sale of goods and services to customers.

Merchandising is any practice which contributes to

the sale of products to a retail consumer.

Ref: American Marketing Association/Wikipedia.org

Prepared by: Faisal Imran/GC University FSD. 1

 11/29/2010

General Merchandising Channel

(B2B Set up)

Sourcing Company Vendor/ Supplier

/Customer Manufacturing Marketer/Seller
Marketer/Procurer

Merchandiser Merchandiser Merchandiser

Prepared by: Faisal Imran/GC University FSD. 2

 11/29/2010

Scope of Merchandising
q Marketing/Merchandising in a Manufacturing concerns
q Positioning Sourcing in a Retailer/Agent/Buying & Liaison
office
q Coordination & Communication and designers, fashion
forecasters, and market researchers to develop promotion
strategy and content of season's lines.
q Production Planning & Control
q Supply Chain & Forecasting
q Buying/Procurement of Fabrics & Accessories
q Out Sourcing Controls
q Interface with design production/quality assurance,
marketing, buying, consumer relations,

Prepared by: Faisal Imran/GC University FSD. 3

 11/29/2010

Personality Traits of a Merchandiser

qFollow up
qAnalytical Skills
qGood Listener/Understanding Constraints
qProblem Solving/Solution Focused
qCoordination
qCommunication
qCustomer Services
qChange Adopter
qProjector/Intuition & pre-cautioner

Prepared by: Faisal Imran/GC University FSD. 4

 11/29/2010

Merchandise Planning
Planning merchandise variety involves planning
and controlling product lines
Steps involved in Planning & Management

ü Innovating: Product, Service or Marketing Innovation

ü Forecasting: Prediction to project response/sales

ü Assortment: No of product items planned in each product line

ü Allocations: Ability to account for space constraints and local demand

ü Branding: Evaluation and placement of right brands

ü Timing: Right timing to get the true response/Sales

Prepared by: Faisal Imran/GC University FSD. 5

 11/29/2010

Understanding Retail Environment

(Perspective—Textile Industry)
Retailing is a specialized marketing activity. It comprises all business activities involved in
the sale of goods and services, directly to the ultimate (final) consumer for personal,
family, household or non-business use.

qRetail Chains & Networks:

Textile products are being sold through Retail Stores and there are number of Corporate
Chains available having core competencies in relevance to their Marketing strategy. i.e.
Wal-Mart, JCPenney, Target, Abercrombie & fitch, Macy’s, Adidas, Kohl’s & so on.

qCatalog & Internet Selling:

Considering a change trend in last two decades have added Catalog & Internet selling.

qInternet Selling-----ordering a merchandise using concerned websites

qCatalog Selling-----Ordering a merchandise using catalogs & over phone

Ref: Marketing-12th edition by Bruce J. Walker & William J. Stanton/Retailing

Marketing Management 11th edition by Philip Kotler/Managing Retailing network.

Prepared by: Faisal Imran/GC University FSD. 6

 11/29/2010

Retail Planning/Management

Customer Service

Store Design Merchandise

and Display Assortment
Retail
Strategy
Pricing Location

Communication
Mix

Prepared by: Faisal Imran/GC University FSD. 7

 11/29/2010

Merchandise Management
(In Retail Environment)
Termed as the analysis, planning, acquisition, handling
and controlling the merchandise investment in retail
operations

Merchandise
Size of the to be Set/
Organization Merchandise
Merchandising Mix
Functions

Organization üMerchandise Variety (# of Product lines)

üMerchandise Assortment (# of Product items) Type of
Structure üMerchandise Support (# of Product Units) Store

Prepared by: Faisal Imran/GC University FSD. 8

 11/29/2010

General Retail Functions

(What Retail Store Personnel do)

ü They collect an assortment of products and services from

a vide variety of suppliers and offer them for sale.
ü They provide information to consumers, as well as to
other channel members.
ü They frequently store merchandise & create internal
controls and systems
ü Mark prices on it and pay for items prior to, selling them
to final consumers.
ü They conclude transactions with the final consumers.
ü Handling customer feedback & Reporting

Prepared by: Faisal Imran/GC University FSD. 9

 11/29/2010

Retail Buyer
The entity within a retailer that buys in goods to sell to
consumers

A retail buyer is responsible for planning and selecting a

range of products to sell in retail outlets

Retail buyers are responsible for developing product

assortments using market trend analysis information as well
as managing sales and margins. It is a multi-faceted position
that includes contract negotiations, inventory management,
sales planning, forecasting and close coordination with the
merchandising and operations teams. Buyers will identify
growth opportunities and risks in assortment, and develop
contingency plans.

Prepared by: Faisal Imran/GC University FSD. 10

 11/29/2010

Buyers…Traits & Functions

q Risk Taker
q Economy Observer at country level
q Extensive Research based
q Concerned on Visual Merchandising & Retail infrastructures
q Study Market trends (e.g. Price, quality, availability and so on)

General Functions/tasks buyers perform in a Retail Industry:

ü Analyzing consumer buying patterns and predicting future trends;
ü Close coordination with the Merchandise Planner and Financial managers
ü Regularly reviewing performance indicators, e.g. sales and discount levels;
ü Managing plans for stock levels;
ü Reacting to changes in demand;
ü Coordination and negotiation with Sourcing managers on Prices
ü Direction to Suppliers through Sourcing teams
ü Liaising with other departments within the organization to ensure projects are completed;
ü Attending trade fairs and assemble a new collection of products;
ü Participating in promotional activities;
ü Writing reports and forecasting sales levels;
ü Presenting new ranges to senior retail managers;
ü Liaising with shop personnel to ensure product/collection supply meets demand;
ü Seeking merchandise feedback from customers;
ü Training and mentoring junior staff

Prepared by: Faisal Imran/GC University FSD. 11

 11/29/2010

Sourcing Teams
Sourcing:
Refers to a number of procurement practices, aimed at finding, evaluating and
engaging suppliers of goods and services

General functions Sourcing Managers/Directors perform:

ü Negotiating terms of contract & Costs with Suppliers.

ü Reporting Supplier’s concerns to buyers.
ü Maintaining relationships with existing suppliers and Convincing on partnering
buyer’s plans.
ü Supporting and developing existing suppliers.
ü Researching new suppliers for current products alternatives and future
products.
ü Visits to supplier’s facility to ensure implementation of new plans and checking
supplier’s health

Prepared by: Faisal Imran/GC University FSD. 12

 11/29/2010

A General Communication Model

(Apparel Buying Process )
Technical Design Team
üSpecifications/Standards
üMeasurements
üTechnical design info

Product Development Team Fashion Design Team

üPackaging üFashion Looks
üLabelling
üSpecialities
Buyer üDesigns/Current trends
üColor Selections
üDelivery Plans
üMercahndsie Forecast
üConsumer feedback
üPartnering the plans
üSpecial Launch Plans

Product Testing Team üProduct Package ech Pack

Color Specialist Team
üTesting Standards & Requirements üProduct Information üColor Standards
üTesting Methods üAny Inquiry from Supplier üEvaluation & Analysis Communication
üFederal Laws for specific materials

Specific direct communication

with Suppliers

Sourcing Team
Supplier Supplier
Supplier Supplier

Prepared by: Faisal Imran/GC University FSD. 13

 11/29/2010

Prepared by: Faisal Imran/GC University FSD. 14

 11/29/2010

Sampling/Product Development
(Textile/Apparel Industry)
q Proto/Counter:
Submitted at the time of cost quotes, very initial phase samples. Similar fabric is used

q Concept Development:
Initial phase samples when there is need to develop different product options considering cost & product
objective idea.
q Development Testing:
Submitted to authenticate the product concept and evaluate the supplier’s capability. Its submitted in
actual fabric and in few colors.
q Fit/Design Confirmation:
These are submitted for fit evaluation and design confirmation. Generally models are arranged to have
technical design evaluation.

a. Must be in actual fabric & available /required color

b. Must have correct specifications & measurements
c. Must be approved before proceeding cutting of bulk

q Pre-Production Samples:
Some of the customers require pre-production samples, these are approved before
proceeding cutting & Sewing.
a. Actual fabric & Color being produced in Bulk, sampling fabric can be used conditionally
b. Must have correct specifications & measurements

Prepared by: Faisal Imran/GC University FSD. 15

 11/29/2010

Sampling/Product Development
(Textile/Apparel Industry)

qFinal Product Confirmation:

Submitted to get the confirmation of final product, Very important and critical samples
since your bulk is in sewing.
a. Must be in actual fabric & required color from Bulk
b. Must have correct specifications & measurements
c. Sewing accessories should be correctly used
d. Should have complete packaging and labeling
e. Generally submitted in few colors but with trim cards having all color swatches & trims to be used
in all colors

q TOP, Top of Production Samples:

Picked & submitted from first production runs so customer has the confidence that bulk is
being produced correctly.

a. Must be in actual fabric & required color from Bulk

b. Must have correct specifications & measurements
c. Sewing accessories should be correctly used

Prepared by: Faisal Imran/GC University FSD. 16

 11/29/2010

Sampling/Product Development
(Textile/Apparel Industry)
q Production Testing Samples:
Bulk must have approval from nominated lab on testing parameters
a. Must be in actual fabric and all the colors
b. Must have labels
c. Must be made from the fabric lots have good level of testing parameters
d. Generally Chopped by the nominated Quality Controllers and tested in Customer’s own lab or
nominated lab.

q Marketing/Advertising Samples:
Generally these samples have objective of Photo shoots and managed on models.
Very important to follow time lines.
a. Must be in actual fabric & required color from Bulk
b. Must have correct specifications & measurements
c. Sewing accessories should be correctly used
d. Should have complete packaging and labeling

q Shipment Samples:
Submitted from the final closing of shipment, Objective is to evaluate how the
shipment is made. Normally chopped by the nominated QCs

Prepared by: Faisal Imran/GC University FSD. 17

 11/29/2010

Check List for Sampling/Product Developments

qInquiries Should be well understood & Acted…Choose
clarities from Customer
qDon’t say No to customer….Suggest ideas covering in
capabilities
qKnow your company & Capabilities…..Check with
experts before responding to Inquires
q Give confidence to customer….. Explain your
expertise/errors you did in samples
qTag the samples….Identify the each samples considering
the level
qCover Page……Enclose Cover page/Email
qTracking…..Provide reference #s & Tracking details

Prepared by: Faisal Imran/GC University FSD. 18