Slide 1Chapter ObjectivesMerchandisingMerchandising PhilosophyScope of Merchandising ResponsibilityFigure 14-1: Dick’s Merchandising PhilosophyMicromerchandisingCross-MerchandisingSlide 9Merchandising and Store Functions PerformedMerchandising and Store Functions Performed (cont.)Slide 12Slide 13Figure 14-5: Devising Merchandise PlansForecastsTypes of MerchandiseStaple MerchandiseAssortment MerchandiseFashion and Seasonal MerchandiseTable 14-1a: Factors in Planning Merchandise InnovativenessTable 14-1b: Factors in Planning Merchandise InnovativenessTable 14-1c: Factors in Planning Merchandise InnovativenessFigure 14-6: Saks: Looking for Hot New FashionsFigure 14-7: Traditional Product Life CycleStructured Guidelines for Pruning ProductsFigure 14-8: Predicting Fashion AdoptionTable 14-2a: Factors in Planning Merchandise QualityTable 14-2b: Factors in Planning Merchandise QualityTable 14-2c: Factors in Planning Merchandise QualitySlide 30Figure 14-10: Ikea’s Wide and Deep AssortmentSlide 32Table 14-3: Private Brand TestFigure 14-11: Wal-Mart and Private BrandsFigure 14-12: Sears’ Distinctive Branding StrategyCategory ManagementSlide 37Merchandising SoftwareFigure 14-4a: Shelf Logic Software for Category Management PlanningFigure 14-4b: Shelf Logic Software for Category Management PlanningSlide 4114-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallDeveloping Merchandise PlansRETAIL MANAGEMENT:A STRATEGICAPPROACH11th Edition11th EditionBERMAN EVANS14-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallChapter ObjectivesTo demonstrate the importance of a sound merchandising philosophyTo study various buying organization formats and the processes they useTo outline the considerations in devising merchandise plans: forecasts, innovativeness, assortment, brands, timing, and allocationTo discuss category management and merchandising software14-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallMerchandisingActivities involved in acquiring particular goods/ services and making them available at the places, times, prices, and quantities that enable a retailer to reach its goals.14-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallMerchandising PhilosophyMerchandising PhilosophySets the guiding principles for all the merchandise decisions that a retailer makesIt should reflect Target market desiresRetailer’s institutional typeMarket-place positioningDefined value chainSupplier capabilitiesCostsCompetitorsProduct trends14-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallScope of Merchandising ResponsibilityScope of Merchandising ResponsibilityFull array of merchandising functionsBuying and selling Selection, pricing, display, customer transactionsORFocus on buying function only14-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFigure 14-1: Dick’s Merchandising Philosophy14-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallMicromerchandisingMicromerchandisingRetailers adjust shelf-space allocations to respond to customer differences and other differences among local markets.14-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallCross-MerchandisingCross-MerchandisingRetailers carry complementary goods and services to encourage shoppers to buy more.14-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFigure 14-2: Attributes and Functions of Buying Organizations14-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallMerchandising and Store Functions Merchandising and Store Functions PerformedPerformedMerchandising viewMerchandising viewAll buying and selling functionsAssortmentsAdvertising pricingPoint-of-sale displaysEmployee utilizationPersonal selling approaches14-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallBuying viewBuying viewBuyers manage buying functions:BuyingAdvertisingPricingIn-store personnel manage other tasks:AssortmentsPoint-of-sale displaysEmployee utilizationPersonal selling approachesMerchandising and Store Functions Merchandising and Store Functions Performed (cont.)Performed (cont.)14-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFigure 14-4a: Merchandising Career Track at Macy’s14-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFigure 14-4b: Store Management Career Track at Macy’s14-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFigure 14-5: Devising Merchandise Plans14-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallForecastsForecastsThese are projections of expected retail sales for given periodsComponents:Overall company projectionsProduct category projectionsItem-by-item projectionsStore-by-store projections (if a chain)14-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallTypes of MerchandiseTypes of MerchandiseStaple merchandiseAssortment merchandiseFashion merchandiseSeasonal merchandiseFad merchandise14-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallStaple MerchandiseStaple MerchandiseRegular products carried by a retailerGrocery store examples: milk, bread, canned soupBasic stock lists specify inventory level, color, brand, style, category, size, package, etc.14-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallAssortment MerchandiseAssortment MerchandiseApparel, furniture, automotive, and other categories for which the retailer must carry a variety of products in order to give customers a proper selectionDecisions on assortmentProduct lines, styles, designs, and colors are projectedModel stock plan14-19 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallFashion and Seasonal MerchandiseFashion and Seasonal MerchandiseFashion Merchandise: Products that may have cyclical sales due to changing tastes and life-stylesSeasonal Merchandise: Products that sell well over nonconsecutive time periods14-20 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice HallTable 14-1a: Factors in Planning Merchandise InnovativenessFACTOR RELEVANCE
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