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Marketing IIB (Retail Management) Chpt.9 - Merchandise Management
- Institution
- University Of The Witwatersrand (wits)
- Book
- Retail Management
Types of merchandise, the team, components, and merchandise philosophy.
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Retail Management by ProfessorBurgerQueenMerchandise Management
- The retailer makes a decision in line with their positioning, image, pricing and other
important factors on the types of items to select and carry in their stores in order to
ensure that the needs of the target market are met and the store makes a profit.
- Merchandising refers to getting the right goods in the right sizes and colours,
at the right price, at the right location and at the right time, for the right
consumers.
- The Right product: Customers' first impression of a product is influenced by
its visual appeal. A combination of aesthetic and functional features
determines the right product. Customer needs must determine the
merchandise range and wants, making it essential to pay attention to trends.
- The Right place: The right location attracts customers and enables the
retailer to be profitable. It is crucial as it speaks to merchandise accessibility.
The right place also refers to placing products in-store (physical and online).
- The Right time: Products must always be available when customers need
them. For example, some events stimulate seasonal merchandise like Easter,
Christmas, Valentine's Day, etc.
- The Right quantities: Retailers should balance inventory and sales volumes
well. This avoids overstocking and ensures that products are always available
for customers. More importantly, retailers should ensure that products match
customers' purchasing needs.
- The Right price: The right price means that customers derive value from the
products purchased. Product prices must meet customer expectations and
remain competitive, and retailers must ensure that they are still profitable,
regardless of high or low pricing.
- The Right manner: Visual merchandising drives the customer experience.
Therefore, it is vital to communicate a product’s appeal to the right customer.
- It is essential to note that the 6 Rs should consider the brand
positioning – for example, the Shoprite brand positioning is built on its
commitment to "lower prices that you can always trust - always"
(Shoprite, 2023).
, Retail Management by ProfessorBurgerQueen
Components of Merchandise Management
- Analysis: Analysing the target market so that customers are identified and
understood.
- Planning: Buyers purchase merchandise well in advance of the intended season.
They can then decide what will sell in the future. Factors which must be considered
are trends and the target market’s buying pattern.
- Acquisition: Retailers must purchase the merchandise that they are going to sell to
their target market. Involves a lot of research, travel and negotiation with potential
vendors.
- Handling: This means making sure that the logistics are in place for getting
merchandise to where it is required, in the right condition.
- Control: Many buyers and planners are responsible for millions of Rand’s worth of
budget. It is an enormous responsibility and one that they have to answer to in terms
of how well the money is spent and whether acceptable profits are made.
Merchandise Philosophy
- The merchandise team is guided by the retailer’s merchandise philosophy when
deciding which products to stock.
- Describes the selected target market, and their needs and desires.
- Outlines how the merchandise team hopes to satisfy the target market in terms of
positioning, image, pricing and any other important factors with respect to the
competition and the retailer’s format.
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