4.Retail Merchandising & Shop Displays

7/30/2019 4.Retail Merchandising & Shop Displays

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Merchandising,

Basis of retail merchandising,

Ms. Sayed Shakila Nawab

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Merchandising,

Basis of retail merchandising,

Product 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 .

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Define Merchandising as The analysis, planning, acquisition,

handling and control of merchandise investments of a retailoperation.

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 rightmerchandise at the right place at the right time in the right

quantities at the right price.

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Achieving these five Right is the key to successful

merchandising and many a times, this remains an elusive goal formost retailers.

Merchandising management can be termed as Planning,

analysis, acquisition, handling and control of themerchandise

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Analysis: because retailers must be able to correctly identify theircustomers before they can ascertain consumer desires and theirneeds/requirements for making a good buying decision.

Planningis important because merchandise to be sold in thefuture must be bought now.

Acquisitionsbecause the merchandise needs to be procured fromothers, either distributors or manufactures.

Handlinginvolves seeing that the merchandise is where it isneeded and in the proper condition to be sold.

Controlis required since the function of merchandise involvesspending money for acquiring products it is necessary to controlthe amount of money spent on buying

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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 organizationto another.

Size: The needs of the individual retailers vary from those oflarge chain store operation.

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Size of organisation

Mer

chandisetobec

arried

OrganisationStructure

Typesofstore

Merchandising function


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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 fairlydifferent from buying fashion merchandise.

A merchandisers who 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 thatthe retail organization adopts also affects

the merchandising function.

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The Merchandises Role & Responsibilities

Planning:Thought the merchandising may not be directlyinvolved in the actual purchase of merchandise.

They formulate the policies for the areas in which they areresponsible.

Forecasting sale for the forth coming budget period and can

estimate the consumer demand and the impact of changes in theretail environment.

Directing: Guiding and training sales people as well as purchasersas and when the need arises, is also a function of themerchandiser.

The purchasers have to be guided to take additional markdownsfor products which may not be doing too well in the stores.

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Co-ordinating: Merchandise managers supervise the work of

more than one department.

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 departments/sections performance ,

is a also part of the merchandise managers Job.

This includes evaluated on the basis of net sale, maintain markup percentage, gross margin % and stock turn

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Role of the Buyer/purchase manager

Buyers plays an important role in the retail industry. they selectand order merchandise to be sold.

Buyers may be responsible for buying for a department, anentire store, or a chain of stores

1. Developing the merchandising strategies for the product line

2. Planning and selecting merchandise assortments

3. Vendor Selection4. Pricing of the merchandise

5. Inventory Management

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Retail Store Design & Visual Merchandising

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

The design and layout of the store are a means of communicatingthe image of the retail store.

The environment which is creates in the retail store, is acombination of the exterior look of the store, the store interiors,the atmosphere in the store and the events, promotions and thethemes.

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The overall look of a store and the series of mental pictures and

feelings it evokes within the beholder.

For the retailer, developing a powerful image provides theopportunity to embody a single message, stand out from the

competition and be remembered.

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Elements of store design

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Store

design

Building

architecture

Frontage &Entrance

Ext. Displayspace

Target

Customers

Health&

Safety

Location

Store

theme

Merchandise

Mix

Parking

Access


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Exterior Store Design & Interior Design

Exterior

Location Parking

Ease of access

The building architecture

Health and safety standards Store windows, lighting

Interior Fixtures

Flooring & Ceilings Lighting

Graphics & Signages

Atmospherics

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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 infocus. It educates the customers, creates desire and finally

augments the selling process.

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METHODS OF DISPLAYS

Color Dominance

Co-ordinated Presentation Presentation by price

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Brand management and Retailing

Brand Management of the Retail outlet

Own branding

Life cycle stages

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Strateg Introd ction Gro th Mat rit Decline


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Strategyvariable

Introduction Growth Maturity Decline

TargetMarket

High income,innovators

Middleincome

Mass Market Low-income

Variety One basicoffering

Limitedvarietyproductfeatures

Greatervariety

Lessvariety

Penetration Limited orextensive

Moreretailers

MoreretailersMultipleretailformats

Feweror noretailers

Price Penetration orskimming

More pricelevel

Lower prices Lowerprices

Promotion Informative,Induce trial

Persuasive Competitive Limited

Documents

4.Retail Merchandising & Shop Displays