DevelopingMerchandisePlans幻灯片.pptVIP

Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall * * * * * * * * * * * * * * * * * * * Fashion and Seasonal Merchandise Fashion Merchandise: Products that may have cyclical sales due to changing tastes and life-styles Seasonal Merchandise: Products that sell well over nonconsecutive time periods Table 14-1a: Factors in Planning Merchandise Innovativeness FACTOR RELEVANCE for PLANNING Target market(s) Evaluate whether the target market is conservative or innovative Goods/service growth potential Consider each new offering on the basis of rapidity of initial sales, maximum sales potential per time period, and length of sales life Fashion trends Understand vertical and horizontal fashion trends, if appropriate Retailer image Carry goods/services that reinforce the firm’s image Table 14-1b: Factors in Planning Merchandise Innovativeness FACTOR RELEVANCE for PLANNING Competition Lead or follow competition in the selection of new goods/services Customer segments Segment customers by dividing merchandise into established-product displays and new-product displays Responsiveness to consumers Carry new offerings when requested by the target market Amount of investment Consider all possible investment for each new good/service: product costs, new fixtures, and additional personnel Table 14-1c: Factors in Planning Merchandise Innovativeness FACTOR RELEVANCE for PLANNING Profitability Assess each new offering for potential profits Risk Be aware of the possible tarnishing of the retailer’s image, investment costs, and opportunity costs Constrained decision making Restrict franchisees and chain branches from buying certain items Declining goods/ services Delete older goods/services if sales and/or profits are too low Figure 14-6: Saks: Looking for Hot New Fashions Figure 14-7: Traditional Product Life Cycle Structured Guidelines for Pruning Products Select items for possible elimination on the basis of declining sales, prices, profits, and appearance o