RETAIL MANAGEMENT

Prepared By-JONY

MERCHANDISE MANAGEMENT

Merchandising, Basis of retail merchandising. Factors affecting the Merchandising functions. The Merchandises Role & Responsibilities. Visual Merchandising.

Merchandising,
Product

Basis of retail merchandising,

and merchandising management is key activity in the management of retail business.

The primary function of the retailing Is to sell Merchandise.

One

of the most strategic aspects of the retail business is to decide the merchandise mix and quantity to be purchased .
Merchandising

can be termed as the planning, buying and the selling of merchandising .

Define Merchandising as The analysis, planning, acquisition, handling and control of merchandise investments of a retail operation. Merchandising is the core of retailing.

The function of merchandising is an integral part of retailing and also one of the most challenging functions.
AMA define The planning involved in marketing the right merchandise at the right place at the right time in the right quantities at the right price.

Achieving these five Right is the key to successful merchandising and many a times, this remains an elusive goal for most retailers. Merchandising management can be termed as Planning, analysis, acquisition, handling and control of the merchandise

Analysis: because retailers must be able to correctly identify their customers before they can ascertain consumer desires and their needs/requirements for making a good buying decision. Planning is important because merchandise to be sold in the future must be bought now.

Acquisitions because the merchandise needs to be procured from others, either distributors or manufactures.
Handling involves seeing that the merchandise is where it is needed and in the proper condition to be sold. Control is required since the function of merchandise involves spending money for acquiring products it is necessary to control the amount of money spent on buying

Factors Affecting the Merchandising Function

Merchandising does not function in isolation. It is affected by various factors like the organization structure, the size of the retail organization and the merchandise to be carried.

Rarely are any two stores organized in the same way.

The function of the merchandising is vary from one organization to another. Size: The needs of the individual retailers vary from those of large chain store operation.

Size of organisation
Merchandise to be carried

Organization Structure

Merchandising function

Types of store

The merchandiser to be carried by a retailer largely determines the responsibilities of the merchandiser.

Merchandise to be carried: The buying for basic merchandise is fairly different from buying fashion merchandise. A merchandisers who I handling fashion products will need to spend more time in the market, and looking for the products which is more suitable for the customers.

Organization structure that the retail organization adopts also affects the merchandising function. Some organization may differentiate the role of the buyer and the role of a merchandisers separately.

The Merchandises Role & Responsibilities

Planning: Thought the merchandising may not be directly involved in the actual purchase of merchandise. They formulate the policies for the areas in which they are responsible. Forecasting sale for the forth coming budget period and can estimate the consumer demand and the impact of changes in the retail environment. Directing: Guiding and training buyers as and when the need arises, is also a function of the merchandiser. The buyers have to be guided to take additional markdowns for products which may not be doing too well in the stores.

Co-ordinating: Merchandise managers supervise the work of more than one buyer. They need to coordinate the buying effort in terms of how well it fits in with the store image and with the other products being bought by other buyers.

Controlling: assessing the buyers performance , is a also part of the merchandise managers Job. This includes evaluated on the basis of net sale, maintain mark up percentage, gross margin % and stock turn

Role of the Buyer

Buyers plays an important role in the retail industry. they select and order merchandise to be sold. Buyers may be responsible for buying for a department, an entire store, or a chain of stores Developing the merchandising strategies for the product line Planning and selecting merchandise assortments Vendor Selection Pricing of the merchandise Inventory Management

1. 2. 3. 4. 5.

Retail Store Design & Visual Merchandising

Store design and layout tells a customer what the store is all about and it is very strong tool in the hands of the retailer for communicating and creating the image of the store in the mind of the customers.

The design and layout of the store are a means of communicating the image of the retail store.
The environment which is creates in the retail store, is a combination of the exterior look of the store, the store interiors, the atmosphere in the store and the events, promotions and the themes.

Entrance

Parking space

Health

BUILDING ARCHITE CTURE Display space

LOCATION

Access

STORE DESIGN

STORE THEME
Target customers Merchandis e Mix

Exterior

Exterior Store Design & Interior Design

Location Parking Ease of access The building architecture Health and safety standards Store windows, lighting

Interior Fixtures Flooring & Ceilings Lighting Graphics & Signages Atmospherics

Visual merchandising
Can be termed as the orderly, systematic, logical and intelligent way of putting stock on the floor VM is the art of presentation, which puts the merchandise in focus. It educates the customers, creates desire and finally augments the selling process.

METHODS OF DISPLAYS

Color Dominance. Coordinated Presentation.

Presentation by price.

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