Quiz 15: Implementing Merchandise

Business

Merchandise planning: Merchandise planning is the process used in retailing business that helps to maximize the return on investment (ROI). It also helps in monitoring overall sales of the retailing business. Gathering information: The following are the information that a department store should be gathered before adding a new watch brand to its product mix: • Product preference of consumer • Consumer lifestyle • Consumer demand • Market trend • Competition • Target customer (male, female, kids, teenagers etc.,) Sources of gathering information: The above information can be gathered from various sources: • Social media • Newspapers • Magazine • Loyalty programs

Want book: A want book is a proper way used to record the out-of-stock or unstocked merchandise of the consumer requests. It is also termed as want slip. Pros of want book: • It records all requests of the consumer • It will be useful to the buyer of the retail marketing • It provides useful information to the salesperson for merchandising decisions • It helps in increasing the percentage of consumers • Helpful in studying the consumer tastes and preferences Cons of want book: • Always the request recorded on want book will not be perfect and exact • Consumers fail to state the model they need • Sometimes it may be unsafe for the retailer • Requests from very few consumers, regarding the changes in the particular products, are not good to be considered • It may mislead the management, at times competitors misuse the want book for their benefit

Sources of merchandise: The following are the three major sources of merchandise: • Company-owned • Outside, regularly used • Outside, new Company-owned: Company-owned suppliers can handle all types of retailer's request regarding merchandise. Advantages: • Certainty • Control • Insufficient time Disadvantages: • Highly risk • High costs Out-side, regularly used: The fast-food outlet of regularly used sources includes wholesalers and manufacturers of food supplies. Advantages: • Certainty • Less time Disadvantages: • Stagnation • High costs Outside, new retailer: The fast-food outlet of outside, new sources includes local food suppliers with ethnic focus. Advantages: • Innovative • Good terms Disadvantages: • Uncertainty • Insufficient time

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