De La Salle College of Saint Benilde

Lecture 07:

Merchandising
PRESENTED BY:

Ian Agoncillo Pacaa

VERTICAL SOLUTIONS

Agenda
What is Merchandising? What is a Merchandising Philosophy?
Considerations in Devising Merchandise Plans Category Management Merchandising Software

VERTICAL SOLUTIONS

What is Merchandising?
Activities involved in acquiring particular goods and/or services and making them available at the places, times, and prices and in the quantity that enable a retailer to reach its goals.
ACQUIRE

MAKE AVAILABLE
PLACES TIMES PRICES QUANTITY

MEET RETAILER GOALS

VERTICAL SOLUTIONS

Merchandising Philosophy
Sets the guiding principles for all the merchandise decisions that a retailer makes Should reflect
Target market desires Retailers institutional type Market-place positioning Defined value chain Supplier capabilities Costs Competitors Product trends

VERTICAL SOLUTIONS

Considerations in Devising Merchandise Plans

VERTICAL SOLUTIONS

Considerations in Devising Merchandise Plans

1. Forecasts
Projections of expected retail sales for a given period

2. Innovativeness
Merchandising new goods and services can provide retailers great opportunity to profit.

3. Assortment
Is the selection of goods a retailer carries.
VERTICAL SOLUTIONS

Considerations in Devising Merchandise Plans

4. Brands Retailers choose the proper mix of manufacturer, private and generic brands.
5. Timing When goods are first purchased, displayed and sold. 6. Allocation How much merchandise to place on the sales floor, how much to place in the stockroom and whether to use a warehouse.
VERTICAL SOLUTIONS

Category Management

A merchandising technique A way to manage a retail business based on the performance of product category results rather than individual brands. Means adapting merchandise for each store to best satisfy customers
VERTICAL SOLUTIONS

Applying Category Management

VERTICAL SOLUTIONS

Shelf Logic: Software for Category Management Planning

VERTICAL SOLUTIONS

Shelf Logic: Software for Category Management Planning

VERTICAL SOLUTIONS

Merchandising Software
General Merchandise Planning Software Forecasting Software Innovativeness Software Assortment Software Allocation Software Category Management Software

VERTICAL SOLUTIONS

Group Activity
Think of a Product that your group would want to Retail Create a Merchandising Plan that will consider the following
Forecasting Innovation Assortment Brands Timing Allocation Allocation
VERTICAL SOLUTIONS

Question and Answer

Q&A

VERTICAL SOLUTIONS

References
Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person)

VERTICAL SOLUTIONS