6. DEFINING YOUR UNIVERSE
• Whom do want to cater?
• What are their Expectations?
• What is their shopping behavior?
• What are their critical Purchase Drivers?
HOW DO YOU MANAGE YOUR CUSTOMER?
• Customer Segmentation
- Fashion Attitude Segmentation
- Price & Service Attitude Segmentation
Merchandise Planning
11. Merchandise Planning
THE IDEAL MIX OF FASHION & PRICE POSITIONING
CREATES THE IDEAL PRODUCT POSITIONING STRATEGY
ONCE DECIDED THE PRODUCT HAS TO BE
FITTED TO THE SPACE AVAILABLE
13. Merchandise Planning
CONSTRAINTS OF SPACE & TIME
• Supply Chain Management has to be in line with demand,
Demand is time bound
• Retail space is at a premium. Space is limited
• Fashion is cyclical yet time bound.
• Returns on Space IS CRITICAL.
MANAGING THE PRODUCT LIFE CYCLE IS
IMPORTANT TO OVERCOME CONSTRAINTS OF
TIME AND SPACE, AND MAKE SPACE
PROFITABLE.
14. Merchandise Planning
MANAGING PRODUCT LIFE CYCLE
A new product progresses through a sequence of stages from
Introduction to growth, maturity and decline. This sequence is
called the Product Life Cycle and is associated with changes in
the marketing situation, thus impacting the marketing strategy
and the marketing mix.
15. Merchandise Planning
• freshness at all times
• a great looking store
• customer finds newness on every visit, better sales.
• faster planned rotations(stock turns)
• increased return on space.
• timely markdowns – liquidating non moving stock to make
way for new stocks
• OTB availability.
BENEFITS OF MANAGING PLC IN FASHION RETAILING
17. Merchandise Planning
SPACE PLANNING
???
• A Capacity Plan is limited.
• How much can be fitted into given
Space is determined by how much will
Ultimately sell, at what cost & more
Importantly, how much margin.
= 27
how many cubes can I fit in?
DETERMINING CAPACITY
Capacity
=
18. Merchandise Planning
SALES PLANNING
???
how many will I sell in a week?
A month? A year ?
DETERMINING SALES
Rate of Sale
=
PLAN = 3
Therefore Plan No. of weeks Cover (NWC)
= 27/3 = 9 weeks
19. Merchandise Planning
TREND PLANNING
How often does the customer visit the store for a particular
product, in terms of weeks ?
= Customer frequency
How often would you like to change your range, in terms of weeks ?
Will this be in line with customer revisits ?
Weeks on Sale
=
?? Weeks on Sale of Product > Customer frequency
?? Weeks on Sale of Product < Customer frequency
?? Weeks on Sale of Product = Customer frequency(NWC=WOS)
20. Merchandise Planning
If customer frequency = once every 3 weeks
And sales plan = 9 pcs per week
NWC = 3 weeks(27/9)
27 pcs
If customer frequency = once every 6 weeks
And sales plan = 3 pcs per week
NWC = 9 weeks(27/3)
PLC=NWC=CUSTOMER FREQUENCY
PLC=NWC=CUSTOMER FREQUENCY
22. PLC – Fashion & Fads
FAD: Def - A Fashion that is taken up for a brief period
of time, a craze
FASHION: Def - A prevailing style or custom, as in
dress or behavior
Merchandise Planning
23. Flagpole Sitting - This fad became a
popular spectator sport. It was
started by a pro stuntman who
eventually set the world record at 49
days
Stamp Collecting - With the help
of President Roosevelt and less
income to spend on leisure due to
the depression, this fad became
popular
PLC – Fads
24. Hula Hoop - One of the biggest
fads of all time is the hula-hoop,
invented in 1957, by an
Australian.The name came from the
Hawaiian dance
PLC – Fads
25. Tie Dye T-shirts- Nothing said
'psychedelia' better than the rainbow
explosion of swirling colors and bold
designs of the ancient art of tie-dye
Streaking- The craze of taking off
all clothes and running across the
field at major sporting events
PLC – Fads
26. Tattoos - Previously, people would get
a tattoo to stand out, but in the 90's
people were inking up with tattoos to
blend in
Video Arcades- There are many
arcades now, but during the 80s,
they were the "in" place to hangout
PLC – Fads
