Professional Documents
Culture Documents
AGENDA
Concept of merchandising
planning.
Implications of merchandising
planning
Process of merchandising
planning
The concept of Merchandise planning
Merchandising Planning
of allocations
M e rch a n d ise re ce ivin g a n d
Marketing
Merchandise
ve rifica tio n . planning
S to re o p e ra tio n s – Space
Details of
p la n n in g , a vo id d u p lica tio n .
Store Operations
Space planning, Communication about new
products & their features,
4
Process of merchandising planning.
Developing a sales forecast –
Merchandise Control
Assortment Planning
Developing a sales forecast
Reviewing past sales
Economic conditions.
Sales potential.
Marketing strategies and Competition.
Creating the sales forecast.
Determining the Merchandise
Requirement
Merchandise Budget
sales plan
stock support plan
Planned reductions
Planned procurement
Gross margin
Assortment plan
Product range and models.
Process can be top down / bottom up
Merchandise classification
fresh groceries
Ready to eat snacks
Addictives /spices/pickles.
Personal hygiene products
Cooking aids
Necessities – pulse, sugar salt , oil ,
wheat floor.
Soft drinks/ juices.
Merchandise hierarchy
Company
Department
Merchandise classification
Merchandise category
Seasonal
Fad
Style
ASSORTMENT
Width
Depth
MERCHANDISING PLANNING
01/04/10
Range plan with price points, briefing by Category manager to the team. Co-
ordination bt merchandiser
Fabric inputs with Prices, Design and Quality break-up (Fabric team, Garment
team, Merchandiser
Colour palette forecast, alongwith Theme forecast or selection (Fabric team,
Garment team, merchnadiser)
Order bookings
Reductions
Maintains stock and sale
relation.
OTB = Planned EOM stock - projected
EOM stock
Projected EOM stock = actual BOM stock + actual additions to
stock + actual on order - planned monthly sale – planned
Merchandise control- Advantages
Limits over and under buying
Prevents loss of sale – due to
unavailability.
Maintains purchase within budget.
Reduce markdowns – due to excessive
purchase.
ASSORTMENT PLANNING – types
The process of deciding and arriving at
M e n sw e a r DEPARTMENT
PRODUCT LINE
S h irts Tro u se rs a cce sso rie s
DEPTH
Style Color SIZE
17
Assortment planning
VEND STYL UNIT COST RETAIL PLANNED TOTA
OR E S S PRICE PURCHASE L
X C- X8 800 1200 JAN
15 FEB MAR 15 75
20 25
APR
Y F- 8 960 1350 10 25 10 65
XX 20
Z E- 6 900 1500 30 22 15 85
XL 18
RANGE PLAN - Balance
Limits over and under buying.
% OF 10 40 20 30
SALES
SIZES SMALL MEDIUM LARGE X–
LARGE
% SALES 25 40 25 10
LENGTH
% OF 30 70
SALES
TOOLS FOR MERCHANDISE PLANNING
Marketmax
MMS
Retail– pro
Ms- excel