No Slide TitleCopyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
PPT 12-*
The Category
A category is an _________ of items (or SKU’s) that the customer sees as reasonable substitutes for each other.
Barnes and Noble
  Books  
  T-Shirts  
  Videos/DVDs  
PPT 12-*
Category Management
Category management is the process of managing product categories of a retail business and customizing them to best satisfy customer needs while at the same time maximizing the _____ and ______ of a category.
Objective is to maximize the sales and profits of the ______ category, not just a particular brand.
Breakfast cereal category vs. Kellogg’s Corn Flakes
Men’s knitted shirts vs. Polo shirts
One person managing the entire category and responsible for its success or failure.
PPT 12-*
Merchandise Management Level
PPT 12-*
Number of months
PPT 12-*
Gross Margin %, Inventory Turnover,& GMROI for Selected Departments in a Discount Store
Used to plan and evaluate inventory decisions to maximize profitability.
4.bin
PPT 12-*
Merchandise Planning
Variety is the number of different merchandising __________ within a store or department
Assortment is the number of SKUs within a _________.
Product availability defines the percentage of demand for a particular SKU that is satisfied.
PPT 12-*
Determining Variety
and Assortment
Collecting data on sales of product and comparable products
Using ___________ techniques to project sales
Work with vendors to coordinate manufacturing and merchandise delivery with forecasted demand (CPFR)
PPT 12-*
Sales of a specific style No No Yes Yes
over many seasons
from one season to the
next
Illustration
Data Sources for
Developing Sales Forecasts
Previous Sales History
Published Sources - Buying Power Index (BPI), Monthly Retail Trade Report, InfoScan, Claritas, general retail trade publications like Stores, WWD and Chain Store Age
Customer Information
PPT 12-*