Mahesh P IPE, OU Campus

Merchandise management process include.

Analyzing

Planning

Acquiring

Handling

Controlling

 Analysis

is the first step in the merchandise management process. The success of the retailer lies in understanding and delivering what the customer needs and wants. In this stage retailer tries to identify the needs and wants of the target group. At this stage the retailer need to have Business Plan, Position, Customer and consideration.

 This second stage focus on getting the merchandise to

the store. In this stage retailer decides upon type of goods that should be in the store and the quantity required. Planning stage involves the following decisions 1) National / Regional Brands 2) Own label Merchandise popularly known as the Private label. 3) A combination of both.

 In this stage the retailer acquires merchandise that he

intends to sell from his outlet. The process of merchandise buying is a five step process, which involves the following: 1) Identifying the sources of supply 2) Contacting and evaluating the sources of supply 3) Negotiating with the sources of supply 4) Establishing vendor relations 5) Analyzing vendor performance

 After acquiring the merchandise the liability of the

merchandise lies on the retailer. This task includes the movement of goods to right stores, in right positions (planogram). Proper display of merchandise. And any other functions that can effect the performance of the merchandise.

 This stage focus more on post purchase evaluation of

the merchandise. Purchase of merchandise involves flow of capital, So it is important for the retailer to have control on buying as per the movement of merchandise.

Size of the Organization

Type of Store(Format)

Merchandising Process

Organization Structure

Merchandise carried

 All the retail function varies depending upon the size

of the organization. The retailer could be a local player, regional player, national player or even a global player. In single store retailer, the owner or the manager in charge will handle entire process of merchandise management. Where as for chain stores the process might get centralized or decentralized or there could be hybrid of the two.

 This process is not same across all the formats.

The process takes different roots for brick and mortar

store when compare to catalog store. Similarly for e-retailer the supply chain design is entirely different other formats. For mail order catalog it is difficult to introduce new product, where as for e-retailer it is matter of seconds.

 The merchandise management process differs

depending upon the type of merchandise that the retailer carries. Basic merchandise with predictable life cycle do not need rigorous forecasting where as fashion product with unpredictable life cycle need rigorous planning. Fads and seasonal products need different kinds of merchandising planning.

 The organization structure that the retail organization

adopts, also affects the merchandising function. Some organization may demark the functions of buyer and merchandiser . While in smaller organization , one person can carry out all the functions.

Thank you