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JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
COURSE : BACHELOR SUPPLY CHAIN MANAGEMENT
UNIT: MERCHANDISE MANAGEMENT
UNIT CODE: HPS 2208
YEAR: 4TH YEAR 2ND SEMESTER
GROUP MEMBERS
1. KELEDA VERONICAH VUTAGWA HDE223-1187/2020
2. MATASYO DIANA NAFULA HDE223-1270/2020
3. WANGARI JANE IRUNGU HDE223-1210/2020
4. GRACE WAMJIRU MAINA HDE223-1200/2020
5. MUEMA MARY KYANGWA HDE223-1237/2020
6.KAMAU BENITAH WACERA HDE223-1213/2020
7. RODGERS ILUKU HDE223-1299/2020
8. DAVIS MWACHALA HDE223-1378/2020
9. MULWA ANDREW HDE223-1240/2020
10.JOSEPH MWAURA HDE223-1201/2020
11.MWANGI PATRICK GATHU HDE223-1283/2020
Assignment
1. Understanding the concept of merchandise management.
2. Merchandise, planning, budgeting and control.
3. Assessment and selection of suppliers, goods and location.
,THE CONCEPT OF MERCHANDISE MANAGEMENT
Introduction
Merchandise- this refers to the commodities or goods that are bought and sold in business.
Merchandise management is the process by which each wholesaler decides on what items to
carry, how much to have on hand so as to meet the demand in the market, the location of display
so as to maximize sale and how they should be priced to ensure more sale and maximum profit
margin.
Categories of Merchandise
1. Convenience goods
Convenience goods are necessary items that people require for basic survival and health. This
may include food, clothing, basic medicine, toothpaste, soap and cleaning products. People
purchase convenience goods with little effort and decision-making because they can typically
find these readily-available items in many different places. Convenience goods also may have
multiple variations. For example, consumers may buy a different brand when they don't find
their first choice brand.
These goods often have inexpensive prices, but this also means they may have a higher price
sensitivity. Their low opportunity cost often means businesses sell large quantities of these goods
at a faster pace than other goods. Companies often monitor the price and demand of convenience
goods so price increases don't affect the quantities of items that customers buy.
2. Impulse goods
Impulse goods are items that customers buy without originally planning to when they entered the
store. Customers may enter a store with a shopping list and a budget, but they may also add an
extra item or two after seeing it on a shelf. Customers often see these goods and pick them up
without significantly thinking about them.
Stores often rely on the display and location of these items to successfully sell them. Well-
displayed impulse items often attract customers. Some examples of impulse buys include candy,
, refrigerated drinks and magazines. A company may place these items near a checkout counter or
the front of the store so customers may buy them while they're already buying their other goods.
3. Shopping products
Shopping products are items that customers typically research or want to learn information about
before buying. Many different companies may produce the same type of shopping product, so
customers often compare prices and features before buying them. They may also compare
quality, content, appearance, and other aspects along with weighing the emotional satisfaction of
owning the product. This also means that customers may buy this type of item less than other
types of merchandise. Some examples of shopping products include smartphones, furniture,
clothing, other electronics and vehicles.
4. Specialty goods
Specialty goods are items that may be in limited stock, possess luxury associations or come from
particular companies that may not have many convenient locations. Customers often travel long
distances, perform thorough research and pay a higher price for a specialty item. Specialty items'
high prices often mean customers are highly selective and don't accept substitutions or
alternative brands. Customers may not compare these items with other companies' similar items
because of the original item's status or value. Some examples of specialty goods include luxury
items such as cars, clothing, specially-made furniture or imported alcohol.
.
Function of merchandise
i.)At as a medium to introduce products to the public
Merchandise serves as a medium to introduce new products or product lines to the public.
Retailers often use merchandise as a tangible representation of their offerings, allowing
customers to physically interact with the product before making a purchase. By showcasing
products through merchandise, retailers can generate awareness, generate curiosity, and spark
interest among potential customers.
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