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‡ Retail selling effort that is the principal task of in-store sales
personnel through the use of promotions designed by a
manufacturer, such as unique displays, giveaways, or discount
and premium offers. In this case, merchandising is the act of
managing and arranging the merchandise on display in a store
so as to promote its sale.

‡ Variety of products available for sale and the display of those

products in an eye-catching way to stimulate interest in
customers to make a purchase.

‡ Lot of money spent on merchandising of brands

‡ Pepsi, Coca cola, Cadbury are major examples.

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= Product and merchandising management is key

activity in the management of retail business.

= The primary function of the retailing Is to sell

Merchandise.

= One of the most strategic aspects of the retail

business is to decide the merchandise mix and
quantity to be purchased .

= Merchandising can be termed as the planning,

buying and the selling of merchandising .
Ú ?efine Merchandising as ³The analysis, planning,
acquisition, handling and control of merchandise
investments of a retail operation.´

Ú Merchandising is the core of retailing.

Ú The function of merchandising is an integral part of

retailing and also one of the most challenging
functions.

Ú AMA define ³The planning involved in marketing the

right merchandise at the right place at the right time in
the right quantities at the right price.´
Ú Achieving these `
  is the key to
successful merchandising and many a times, this
remains an elusive goal for most retailers.

Ú Merchandising management can be termed as

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Visual merchandising
‡ Art and science of displaying and presenting product on the
sales floor. Key component of store¶s unique identity and your
best form of advertising. Facilitates communication of brand¶s
identity , uniqueness of the offering to target customer.
‡ Effective in POP

Character merchandising
Ú se of a character in making it appealing to customers.
Example- Mickey Mouse merchandise by ?isney
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Movie merchandising
Ú A successful film.
Ú Popularity of the main character.
Ú Filmmakers try and cash-in on the popularity of the
character by means of selling toys, soft-toys, and many
more things.

?iscount Merchandising
Ú Appealing discount labels
Ú Pamphlets
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Role & Responsibility of Merchandiser
Planning: Though the merchandising may not be directly
involved in the actual purchase of merchandise.
Ú They formulate the policies for the areas in which they are
responsible.
Ú Forecasting sale for the forth coming budget period and can
estimate the consumer demand and the impact of changes in
the retail environment.

?irecting: Guiding and training buyers as and when the need

arises, is also a function of the merchandiser.
Ú The buyers have to be guided to take additional markdowns
for products which may not be doing too well in the stores.
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Co-ordinating: Merchandise managers supervise the
work of more than one buyer.
Ú They need to coordinate the buying effort in terms of
how well it fits in with the store image and with the
other products being bought by other buyers.

Controlling: assessing the buyers performance , is a

also part of the merchandise manager¶s Job.
Ú This includes evaluated on the basis of net sale,
maintain mark up percentage, gross margin % and
stock turn
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Functions of Merchandisers at Shopper¶s
stop
Ú Inventory-turn Management
Ú Achieving Sales & Margins
Ú Plans Merchandise
Ú Availability Management, as per range plan
Ú Merchandising strategy & planning
Ú Processing of purchase orders
Ú Analysis of ?ata & Sales Budgeting
Ú Profitability Targets & Expense Control
Ú Vendor/Supplier relations for both, in-house products as
well as for brands.
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Ñhy Brand Merchandising?
Ú Creates awareness about a product/brand

Ú Ease of shopping for consumers

Ú Favorite brands at the reach of the consumers

Ú Creation of Brand Identity

Ú Maintenance of Brand Identity

Ú Effectiveness during POP

Considerations during brand merchandising
A particular merchandising campaign can involve some serious
considerations, such as

Ú product packaging
Ú signage
Ú location in the store
Ú shape, size, color, and other physical characteristics of the
display
Ú advertising (in-store and other means)
Ú discounts, prizes, or other promotional offers.
Brand Merchandising Strategy
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Merchandising for Children
Ú Merchandising for children is most prominently seen in connection
with films and games, usually those in current release and with
television shows oriented towards children.

Ú Merchandising, especially in connection with child-

oriented films and TV shows, often consists of toys made
in the likeness of the show's characters (action figures)
or items which they use.

Ú The case of 


of toys is a suitable example.

Ú Sometimes merchandising from a television show can grow far

beyond the original show, even lasting decades after the show has
largely disappeared from popularity. In other cases, large amounts of
merchandise can be generated from a pitifully small amount of
source material.
Parallel Interpretation of Brand
Merchandising
Ú One of the definitions of merchandising is the practice in which
the brand or image from one product or service is used to sell
another.

Ú Trademarked brand names, logos, or character images are

licensed to manufacturers of products such as toys or clothing,
which then make items in or emblazoned with the image of the
license.

Ú The motive is to leverage the brand identity.

Ú Example: ?isney sells its IPR in form of logos, characters etc.

to generate around 25% of its whole revenue.
Merchandising- Toys
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Ú Includes Mickey Mouse toys and Cindrella dresses.
Ú Ñide variety of merchandise including caps, wristwatches feature
corporate brand logo and imagery.
Ú Licensed characters like Ñinnie the Pooh and Mickey Mouse to
Funskool and others.
Ú Licensing a major source of revenue.
Ú In 2007, ?isney apparels also launched in competition with Pogo.
Ú ?isney believes in channel branding through various products.

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Ú A JV between MRF Tyres and Hasbro Industries (Germany).
Ú The famous Kindergarten trio of Powerpuff girls on Cartoon Network
encouraged Funskool to come up with Powerpuff Girls range of toys.
Ú Also launched merchandise like games, puzzles and cards on
Pokeman (a Japanese animation).
Ú Motto of Pokemon Games: `Gotta catch 'em allµ.
Ú Mc?onald¶s was also licensed to sell Pokemon items in its global
outlets, including India in 2005.
Ú ?emos at toy outlets, point-of-purchase display and the sponsorship
of competitions.

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Ú In 2007 Pogo launched branded apparel and accessories last
year. Prior to that, Pogo also launched a boy centric toy range
Pogo Ñheels and is targeting to expand its footprint in other
categories .
Merchandising- 6 Rights
 
 
Ú Retailers must fill their shelves with the merchandise that
customer wants.

 

Ú The location of the merchandise is of prime importance since it
decides the accessibility.

  
Ú Much merchandise is seasonal in nature and must be on hand
when it is most needed.
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Ú A profitable balance between volume of sales and amount of
inventory is the desired goal.

 

Ú Merchandiser must arrive at a price that is high enough to give
the store profit and yet low enough to meet the competition
and customers expectations.

 
  
Ú Right balance between the investment and
the appeal created for the customers.