What is merchandising planning system?

Merchandise planning is a systematic approach to planning, buying, and selling merchandise to maximize your return on investment (ROI) while simultaneously making merchandise available at the places, times, prices and quantities that the market demands.

What are the elements of merchandise planning?

The basic components of retail merchandise planning include:

• Product. First and foremost, the basic component of any merchandise mix is the product.
• Range. This refers to the variety of merchandise that you sell.
• Price.
• Assortment.
• Space.
• Perform a post-season analysis.
• Forecast sales.
• Plan and implement the assortment.

What are the key steps of merchandising?

Merchandise Buying and Handling Process (6 Stages)

• Collecting Information: This is a very first step of merchandise buying and handling process.
• Selecting Vendors:
• Evaluating Merchandise:
• Negotiation:
• Buying Merchandise:
• Acquiring Merchandise:

What is merchandise planning explain the condition for a effective merchandise planning?

Retailer must make systematic assortment or classification. Goods of similar category must be made available at one place. Items of electronics should not be placed along with vegetables. Apart from this retailer must keep adequate SKU (Stock Keeping Unit) of each item of products.

What is the first step of the merchandise planning process?

The retail planning process begins with a sales plan. Besides sales history and statistics, you need to have an understanding of your overall business in order to plan increases or decreases which will then dictate proper inventory levels.

Which is the key element in retail planning?

Analysis of customers is the most important activity of the retail planning process. You can’t simply like a product, design it and throw in the market and expect customers to buy it and like it.

What are the benefits of merchandise planning?

Key benefits of implementing Merchandise Planning Software include:

• Reduced Stock holding.
• Reduction in manual effort.
• Quicker reaction to trends & faster decision making.
• Strategic & Detailed view.
• Data integrity.
• Focus of the open to buy in the right areas.

Which is the first step in merchandise planning?

The merchandise budget is the first stage in the planning of merchandise. It is a financial plan which gives an indication of how much to invest in product inventories, stated in monetary terms. (a) The sales plan, i.e. how much of each product needs to be sold, this may be department wise, division wise or store wise.

Why do we need to plan your merchandise?

The purpose of merchandise planning is to fulfill consumers demand by making available right merchandise at the right place, time at right prices, and in the right quantities. In addition to this, you will also find it easy to meet your financial targets set by you by choosing the right merchandise to sell.

What are the six key steps of strategic planning that should be used by a retailer explain with suitable examples?

Steps of Retail Strategy Planning

• Objective Setting.
• Situational Analysis.
• Customer Analysis.
• Tactical Planning.
• Implementation and Control.

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