Documente Academic
Documente Profesional
Documente Cultură
PLANNING
RETAIL BUYING and CATEGORY MANAGEMENT
Objectives:
Poor collaboration
between Sales, Sell in Vs Sell
Marketing, Demand through
Management,
Operations
and with
CUSTOMERS Multiple
Product
attributes make Demand
Planning challenging
Demantra’s End-to-End Solution for
Demand-Driven Planning
Shape Demand Plan for Demand
Annual Budget
Sales and Marketing Forecast
Demand / Supply Balancing
KPI and Management Dashboards
Real-Time Sales and Operations Planning
Openings
Assumptions Planning
Optimization Replenishment
POS Monitoring
Volume Planning New Product Introduction
Collaboration Assortment Planning
Funds Management
Forecasting
Event Planning
Store Planning &
Trade Promotion Demand Replenishment
Management & Management
Optimization
Strategic Assortment
Planning Planning
Location
Planning
Merchandise
Planning Slow –seller
Management
Merchandise and Assortment Planning
(MAP) is composed of the following
components:
Strategic Planning
• In a strategic plan - also referred to as a business plan - a retail company
defines strategic retailing targets.
• The business plan is created on the highest level for the whole company but
also for individual distribution channels or higher levels in the merchandise
hierarchy.
• Some of the stock and sales data planned on the higher levels may sometimes
be transferred to the store and merchandise plans.
• As the store plan and the merchandise plan are often created more or less
independently of one another, it must be possible to compare both plans to
ensure that the most important key figures are contained within a particular
tolerance range.
Merchandise and Assortment Planning
(MAP) is composed of the following
components:
Merchandise Planning
• Like location planning, merchandise planning is used to create a more
detailed structure for higher-level strategic guidelines.
• Operative processes such as reporting or allocation are hardly used in
merchandise planning.
• The merchandise category hierarchy is used in the planning process but
the merchandise itself is not looked at in detail.
• Therefore merchandise planning does not extend to product level.
• Other important planning levels are the distribution chain, the season,
the purchasing group and, to some extent, the price margins.
Merchandise and Assortment Planning
(MAP) is composed of the following
components:
• Assortment Planning
The aim of assortment planning is to create assortments and define
which products are listed for which stores and the quantity of these that
should be allotted to individual stores.
Within an article hierarchy , the buyer can plan several levels, for
example, product (style), color (variant) or the price band.
Merchandise and Assortment Planning
(MAP) is composed of the following
components:
For markdown planning one must define scaled price reductions in the form of a set of rules
(markdown profile).
This markdown profile provides products with a target sales curve. It is then possible to
perform markdown simulation (when will the product be sold, what quantity of it and at what
price?).
In markdown controlling, slow seller analysis is performed to monitor merchandise sales and
ensure that planned sales rates and gross margins are actually met.
Merchandise and Assortment Planning
(MAP) is composed of the following
components:
• Location Planning
The location plan (store plan) is the concrete structure of the strategic plan
that takes into account different factors within the store hierarchy:
•regional marketing,
•competition,
•demographic changes and preferences, as well as particular events.
Planning costs and income for retail is performed in line with the strategic
plan. These key figures are planned to store level or to store/division or
store/department level (for example, ladies' wear or men's wear), but not to
any further level of detail.
Assortment Planning - Importance
Assortment planning -- which involves asking questions such as: Which product?
How much of it? What colors? What sizes? Where to place it? Who is the target
customer? and so forth -- although it directly affects product selection, price, timing
and micro-merchandising, has traditionally been de-emphasized due to hectic retail
schedules.
Meeting delivery schedules and marketing and financial planning obligations use
valuable time, forcing companies to take the easy approach to merchandising:
repeating assortment breadth and depth from previous seasons, creating store
assortments based on store volume and ranking items by sales volume alone.
When implemented correctly, assortment planning is circular in nature. The findings and
analysis of one season become the input into the planning of the next. Given this
circularity, it is important to step back and examine the big picture to determine the
preliminary steps that should be considered before beginning the process.
Often relegated to senior management, the first step to successful assortment planning is
the development of a clear, actionable merchandising strategy based on the corporate
mission and current retail environment. During this stage, planners identify the right
customers and develop a plan to attract them.
Next, management should set corporate financial goals. It is crucial that these plans be
developed early enough to allow sufficient time for all parties -- buyers, planners and
designers -- to collectively coordinate a particular season's line, while maintaining the
flexibility to react to current trends.
Assortment Planning - Implementation
Most companies rely on processes used year after year, regardless of the
realization that performance can be improved. The term "process" can instil
fear in the creative and instinctual worlds of design and buying, making it
difficult to implement a new assortment-planning process.
The best test for the success of any process is time. As more parties utilize
the process and discover the benefits -- whether increased sales, margins
or customer satisfaction -- the company's culture will absorb the
assortment planning process into its daily activities, making it the normal
way of doing business.
Today's marketplace demands the right mix of products for the right customers.
Old methods for determining product assortments SHOULD NOT hinder
chance to succeed.
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Factors affecting a well-planned
Assortment
= +
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•Faster Turnover •Presentation of a wide
•Ease of Stocking variety of goods
•Using less room & display •A high degree of stopping
area & pulling power
•Ease of re-ordering, •A slant to those customers
checking & receiving of discriminating taste
•Simplified counting, and
•Avoidance of Markdowns
Frequent re-ordering is
Customers are not offered a required which makes it a
wide selection of products costly method of inventory
Managing Assortments
The type/size of the store/dept. , the image , the target market and
financial resources available will affect the number of classifications
and sub-classifications needed.
Merchandise Classifications
Examples of Merchandise Classifications:
Selection Factors:
•Brand
•Price
•Size
•Colour
•Material
Preparing an Assortment Plan:
The Concept of Model Stock
•Department - Wristbands.
•Past Sales show Maxi has been the most popular brand with
customers.
The buyer decides to supplement these 3 colors with 2 new colors that are
predicted to be very fashionable for the Fall season.
COLORS
White 20% 9 12 27 12 60
Gray 35% 16 21 47 21 105
Black 15% 7 9 20 9 45
Green 15% 7 9 20 9 45
Garnet 15% 7 9 20 9 45
TOTAL 100% 45 60 135 60 300
A well-balanced Assortment is the Cornerstone of Retail
Success