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After Mid Session 2

Merchandising is critical for retail businesses and involves planning, buying, and selling products to customers. There are two main types of merchandise: staple goods which have predictable demand and past sales history, and fashion goods which are harder to forecast. A merchandising manager is responsible for merchandising planning, leading a team, ensuring smooth processes, coordinating with suppliers, and meeting sales goals. Merchandising planning involves long-term goals setting, historical analysis, identifying customer and trend factors, and creating long-term plans.

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45 views

After Mid Session 2

Merchandising is critical for retail businesses and involves planning, buying, and selling products to customers. There are two main types of merchandise: staple goods which have predictable demand and past sales history, and fashion goods which are harder to forecast. A merchandising manager is responsible for merchandising planning, leading a team, ensuring smooth processes, coordinating with suppliers, and meeting sales goals. Merchandising planning involves long-term goals setting, historical analysis, identifying customer and trend factors, and creating long-term plans.

Uploaded by

shamzan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MERCHANDIZE MANAGEMENT

“Advertising moves people toward goods;


merchandising moves goods toward people.”
-Morris Hite (American Advertising Expert)
• In the fierce competition of retail, it is very crucial to
attract new customers and to keep the existing
customers happy by offering them excellent service.
Merchandising helps in achieving far more than just
sales can achieve.
• Merchandising is critical for a retail business. The
retail managers must employ their skills and tools to
streamline the merchandising process as smooth as
possible.
What is Merchandizing?
• Merchandising is the sequence of various
activities performed by the retailer such as
planning, buying, and selling of products to the
customers for their use. It is an integral part of
handling store operations and e-commerce of
retailing.
• Merchandising presents the products in retail
environment to influence the customer’s
buying decision.
Types of Merchandise

• There are two basic types of merchandise:


Staple Fashion
Merchandise Merchandise
It has predictable demand It has unpredictable demand

History of past sales is Limited past sales history is


available available

It provides relatively It is difficult to forecast sales


accurate forecasts
Factors Influencing Merchandising
The following factors influence retail merchandising:

• Size of the Retail Operations


• Shopping Options
• Separation of Portfolios
Functions of a Merchandising Manager

A merchandising manager is typically responsible to:


– Merchandize Planning
– Lead the merchandising team.
– Ensure the merchandising process is smooth and
timely.
– Coordinate and communicate with suppliers.
– Participate in budgeting, setting and meeting sales
goals.
– Train the employees in the team
Merchandise Planning
Merchandise planning is a strategic process in order to increase profits.
This includes long- term planning of setting sales goals, margin goals,
and stocks.

• Step 1 - Define merchandise policy. 


• Step 2 – Collect historical information.
• Step 3 – Identify Components of Planning.
–Customers
–Departments
–Vendors
–Current Trends
–Advertising
• Step 4 – Create a long-term plan.
Merchandise Buying
 This activity includes the following:
• Step 1 - Collect Information
• Step 2 - Determine Merchandise Sources
• Step 3 - Evaluate the Merchandise Items
• Step 4 - Negotiate the Prices
• Step 5 - Finalize the Purchase
• Step 6 - Handle and Store the Merchandise
• Step 7 - Record the Buying Figures

“Vendor Relations”
Merchandise Performance

The following methods are commonly practiced to analyze merchandise


performance: 
• ABC Analysis
It is a process of inventory classification in which the total inventory is
classified into three categories:
A – Extremely Important Items
B – Moderately Important Items
C – Less important Items
• Sell-Through Analysis
• Multi-Attribute Method

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