Lecture: 01 & 02

1
(Introduction to Merchandising)

WHAT IS MERCHANDISING?
The activity of promoting the sale of goods, especially by their presentation in retail outlets.
In the broadest sense, merchandising is any practice which contributes to the sale of products to
a retail consumer.
Merchandising activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods.

According to American Marketing Association, merchandising encompasses "planning involved

in marketing the right merchandise or service at the right place, at the right time, in the right
quantities, and at the right price."

In Eastern Europe, particularly in Russia, the term merchandising is commonly used within
the trading industry and denotes all marketing and sales stimulation activities around PoS (point
of sale): design, creation, promotion, care and training of the sales staff.
The process of planning , developing, and presenting product lines for identified target
markets with regard to pricing, assorting, styling, and timing. - Kunz, 1998
The activities involved in buying and selling: finding customers, providing them with what they
want, when they want it, at prices they can afford, and are willing to pay. - Jarnow, Guerreiro,
and Judelle, 1987, pg. 506
A merchandiser is someone who is continuously involved in business promotion by buying and
selling of goods. In Asian countries, such as India, this term is more synonymous with activities
right from sampling and idea conception to dispatching of the shipment. It is a job description
that involves leading and working with different departments within the organization, suppliers
and buyers to deal with timely deadlines and accepted quality levels.

MERCHANDISER RESPONSIBILITIES:

The person who is related in merchandising is called merchandiser. The merchandiser

coordinates with the design team to effectively present the product or product line. He or she
develops colors and specifications, and performs market research to determine the most effective
ways to sell and promote the product. This person needs strong communication and negotiation
skills and visual and analytical abilities. He or she also needs to be a creative and innovative
thinker. He should plan the activities to execute and dispatch the merchandise on time taking into
consideration the 4 Rs of expediting Right Quantity, Right Quality, Right Cost & Right
Time.

1. Right Quantity: To dispatch right quantity of product what buyer ordered?

2. Right Quality: It should be with right quality as accepted both parties.
3. Right Cost: Everybody wants more from what they are paid.
4. Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery schedule
is mandatory.
 Lecture: 01 & 02
2
(Introduction to Merchandising)

A MERCHANDISERS KEY RESPONSIBILITY IS AS FOLLOWS:

Product Development
Market and product Analysis
Selling the concept
Booking orders
Confirming Deliveries
Designing and Sampling
Costing
Raw Material
Flow Monitoring
Production Follow Ups
Payments Follows
Internal & external communication,
Sampling
Lab dips
Accessories & trims
Preparing internal order sheets
Preparing purchase orders
Advising and assisting production,
Advising quality department about quality level
Mediating production and quality departments
Giving shipping instructions and following shipping,
Helping documentation department
Taking responsibility for inspections and
Following up the shipment.

QUALITIES OF MERCHANDISER:
Planning Capability: Merchandiser should be capable of planning, based on the planning the
order is to be followed. If the planning is not done properly it will directly affect the delivery
time of the order.
Decision making: For a Merchandiser, decision making power is most important. He should
think about the decision to be taken and to act in a right way.
Communication Skill: The communication is very much important to promote the business
activity. The merchandiser should remember that communication must be lurid and should
having face to face conversation with the buyer.
Loyalty: Loyalty is an essential character of human beings. Especially for the business people
like merchandiser it is a must.
Knowledge about the field: Merchandiser should have adequate knowledge about the garments,
Computer knowledge, and technical knowledge to communicate with different people in the
business is a must.
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(Introduction to Merchandising)

Co-ordinate & Co-operate: Merchandiser is the person who is actually co-ordinate with the
number of departments. To Co-ordinate with different people in the industry he should be co-
operative.
Monitoring ability: Merchandiser should monitor to expedite the orders.
Other qualities: Education, Experience, Situational Management, Ability to Evaluate,
Dedication, Knowledge of expediting procedures.
KEY RESPONSIBILITY OF A FACTORY MERCHANDISER:

If you are working in a Factory no need to tell you the key responsibility of your job but this is
important for a Buying merchandiser who wants to work in Factory after growing in buying
house. The below short key can help a fresh graduate who is willing to get start career in factory
also.

Price negotiation & order confirmation.

Yarn procurement.

Trims booking.

Preparing TNA so that everyone can get the priority.

Keeping Production update.

Preparing for final inspection: Making packing list & getting approval, if require
attaching any carton sticker.

Goods ex-factory: Make sure to arrange covered van & ensure it to reach forwarders
premises.

Proceeding for Lab dip submission: Keep close relationship with lab section so that
they can give you better support.

Proceeding for all approval: Print, embroidery, trims as well as bulk lot.

Inventory: Fabric, trims, carton etc. Keep close monitoring with store department.

Forwarder space booking: Keep close contact with forwarder if necessary to get special
permission.

Fabric Booking: Before fabric booking one must check it with cutting section along with
knitting department. Because for some issues if you dont get consultation from these two
section there are possibility to have error. So dont be too smart to ignore people whom
you are going to meet next.
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(Introduction to Merchandising)

Sample Making: Calculate submission date as per your TNA so make sure to receive
fabric on time along with all the trims. Dont miss single item that related in making of
sample. Because missing of any item in sample making will delay the process.

Mail communication: This is very important to keep communication for any purpose
with buyer & keep satisfy them.

Minutes & Cutting permission: For a factory merchandiser cutting permission is very
important. This is actually making a complete file having all the information about the
product which will be followed by all the section. So any error in making this file can be
devastating. We will discuss the subject in separate article for more clarification. Minutes
with the entire department, making action plan for the goods delivery is very important.

Giving schedule to buying house to conduct inspection: For a factory merchandiser

this is very difficult to manage an Instructor who comes for final inspection. Legal &
illegal lots of demand may come from the inspector & merchandiser has to mange
everything for his final delivery. So to be a factory merchandiser, be patient & creative
enough. Off course developing relationship is very important.

KEY RESPONSIBILITY OF A BUYING MERCHANDISER:

As you know above maximum job for a buying merchandiser is abstract. Now you can
realize how he does all these abstract merchandising. Basically factory merchandiser
performs the entire task for production whereas buying merchandiser is his shadow to
follow the job. Suppose factory merchandiser completed fabric booking, here buying
merchandiser does not do anything but is doing it abstractly. That means buying
merchandiser acting on everything.
Buying Merchandiser keeps close monitoring on work progress done by factory
merchandiser like lab dip, fabric booking, sampling the entire day to day merchandising
job.
Keep aware the entire production unit to meet dead line.
Keep communication with both factory & customer.
Get the current issues from both factory & customer & try to find a good solution.
He is the only one that keeps & cannot miss any of the submissions & approval.
Works on TNA.
Production update & forecast customer if require additional time for delivery.
Product Development is very important for a buying merchandiser to get good new
customer.
Sourcing for production unit, fabric, trims & also for new product.
Works on price to manage both factory & customer.
Business & profit assessment.
Prepare QC file.
Ensure Quality by close monitoring with quality team.
If any quality issue arises & if not possible to manage, let the buyer know the practical
situation & try to get the solution.
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(Introduction to Merchandising)

Keep contact to commercial & shipping department for shipment & settle payment issue.
Keep contact to shipping agent if needed special permission for goods delivery.
Managing customer when they pay visit to production unit.