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    Merchandise Assortment Planning

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    Jyotika Thakur
    This document discusses merchandise assortment planning and category management for retail stores. It covers organizing products into categories, the responsibilities of category managers and merchandise planners, setting financial objectives, sales forecasting, and the assortment planning process. The main goals of category management are to satisfy customers and increase sales in each category by managing all stock keeping units within a category based on the firm's goals and consumer behavior.

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    Merchandise Assortment Planning

    Uploaded by

    Jyotika Thakur
    693 views9 pages
    This document discusses merchandise assortment planning and category management for retail stores. It covers organizing products into categories, the responsibilities of category managers and merchandise planners, setting financial objectives, sales forecasting, and the assortment planning process. The main goals of category management are to satisfy customers and increase sales in each category by managing all stock keeping units within a category based on the firm's goals and consumer behavior.

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    detail of merchandise planning in retail store in India

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    This document discusses merchandise assortment planning and category management for retail stores. It covers organizing products into categories, the responsibilities of category managers and merchandise planners, setting financial objectives, sales forecasting, and the assortment planning process. The main goals of category management are to satisfy customers and increase sales in each category by managing all stock keeping units within a category based on the firm's goals and consumer behavior.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    693 views9 pages

    Merchandise Assortment Planning

    Uploaded by

    Jyotika Thakur
    This document discusses merchandise assortment planning and category management for retail stores. It covers organizing products into categories, the responsibilities of category managers and merchandise planners, setting financial objectives, sales forecasting, and the assortment planning process. The main goals of category management are to satisfy customers and increase sales in each category by managing all stock keeping units within a category based on the firm's goals and consumer behavior.

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    Merchandise Assortment Planning

    Organizing the Buying Process by Categories


    Categories is a distinct, manageable group of products or services , which are perceived by customers to be interrelated &/or substitutable.
    For eg:- Mens jeans & Girls jeans are two categories

    A good merchandise plan is important for a retail store to achieve its sales & gross margin goals

    CATEGORY MANAGEMENT:

    Category mgmt is a process of managing all stock keeping units (SKUs) within a product category.

    It involves the simultaneous management of:


    price self-space merchandise strategy efforts & other elements of the retail mix within the category, based on the firms goals , the changing environment & the consumer behavior.

    1.
    2.

    2 main objectives:Satisfying the customer Increasing sale in each category

    CATEGORY MANAGER & MERCHANDISE PLANNER


    looks after all the functions of merchandise management

    Responsibilities of CATEGORY MANAGER: Interacting with the vendors Merchandise selection Merchandise pricing Working with the Ad department for developing various promotion schemes

    1. 2. 3. 4.

    Responsibilities of a Merchandise Planner in a typical Retail Organization:

    More Analytical & involve purchasing the right quantities of each merchandise category assigning the merchandise to stores looking after the sales activities suggesting markdowns.

    THE CATEGORY MGMT PROCESS


    What type of merchandise ? quantities of merchandise pricing strategy which store what merchandise how much shelf space for a particular merchandise category? what type of Ad strategy?

    A Typical Category Mgmt Process is split into the Following Steps

    Category definition

    Role of category ( 4 category roles--- destination ,routine , convenience & seasonal categories)
    Category assessment Category scorecard Category strategies

    demand-chain (store traffic, profit margins, store image, cash and excitement) supply- chain strategies (flow of merchandise and the cost of transactions)

    Category tactics (relate to assortments, pricing, promotion and supply


    chain)

    Implementation

    THE BUYING ORGANIZATION

    5 LEVELS IN A BUYING ORGANIZATION

    the merchandise group ( highest level of the buying organization consists of Vicepresidents of merchandise for different sections)
    department (ii level-a divisional merchandise manager, working under the guidance of VP) classification (iii level Purchaser, who reports to divisional merchandise manager) category (iv level- each purchaser buys merchandise for a number of categories) the stock keeping unit (SKUS).

    LEVELS OF BUYING ORGANISATION


    Chairman

    Merchandise Group

    Vice-President Mens & kids Wear

    Vice-President Cosmetics and Accessories

    Department
    Div Merchandise Manager, Mens Formals

    Div Merchandise Manager, Kids Wear

    Classification
    Category

    Purchaser Accessories Sportswear

    Divisional Merchandise Manager, Women Cosmetics

    Stock keeping Units

    Boys Jeans, size 7, Deep

    SETTING FINANCIAL OBJECTIVES

    Gross margin return on inventory investment(GMROI)


    Measuring Inventory Turnover Calculating Average Inventory

    Advantages of rapid inventory turnover Disadvantages of rapid inventory turnover

    SALES FORCASTING

    Category lifecycle Making a sales forecast

    ASSORTMENT PLANNING PROCESS: --- Need for Trade-off between variety, assortment & product availability ---Assortment plan PRODUCT MIX TREND: Shotgun merchandising Rifle merchandising

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