Retail Management and Marketing Practical

Gruop Assignment

Batch: - Hospitality and Tourism Management (TY.BSc-A)

Year: - (2020-2021)
 Topic
Merchandising and
Private Label

Group Members
Shivani Chamur- 2
Vaishnavi Remma- 11
Sejal Thorve - 14
Content
1. Meaning of Merchandising
2. Importance of Merchandising
•Appeals to customers
•Improves Profitability
•Increases Sales floor Productivity
•Increases Employee Productivity
3. Types of Merchandising
•Product Merchandising
•Retail Merchandising
•Visual Merchandising
•Digital Merchandising
•Omni-channel Merchandising

Shivani Chamur- 2
 Meaning of Merchandising
• The word merchandise comes from the old French word merchandise, from marchand,
which means "merchant."
• Merchandising is the practice and process of displaying and selling products to
customers.
• Since the sales process often starts with the eyes, merchandising typically involves
presenting products in a visually favorable light, to try and encourage purchases.
• 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.”
 Importance of Merchandising
1. Appeals to Customers : Consumers shop where they feel certain they can find the
merchandise they want. They will be loyal to the store if a pleasing shopping
experience can be created in the store and provide what they need.

2. Improves Profitability : One-way good merchandising can improve store’s profitability

is by enhancing price image. Mmerchandising can increase the sales per customer if
it’s arranged to promote add-on sales, for example, through impulse displays at the
checkout counter.

3. Increases Sales floor Productivity : Merchandising can help control costs by helping
retailers improve the productivity of the sales floor. Mmerchandising makes the sales
floor more productive by suggesting add- on sales and impulse purchases.
 Importance of Merchandising (Cont.)
4. Increases Employee Productivity : Good merchandising can help increase productivity
by helping retailers provide better customer service. A retail outlet can minimize the time
they spend simply directing customers to the aisles where they can find what they need.
That’s why retail outlets have signage and merchandising. Good merchandising makes
selling more rewarding. The more customers are able to shop for themselves, the more
time business have to develop new retailing skills.
 1. Product Merchandising
Product merchandising involves all
promotional activities used to sell a product.
Product merchandising refers to both in-
store and digital, it includes all promotional
activities that take place in a store (such as
shelf displays) and online (such as web
design and on-site search).
 2. Retail Merchandising

Retail merchandising refers to all

promotional and marketing activities that in
some way contribute to selling products to
customers in a physical retail store.
3. Visual Merchandising

Visual merchandising in the retail industry

refers to all of the display techniques used
to highlight the appearance and benefits of
the products and services being sold. It can
include elements of spacing, lighting, and
design, and is a term that can be applied to
both in-store merchandising and online
merchandising.

https://youtu.be/hugOxXQ9dfc
 4. Digital merchandising

Digital merchandising involves all

promotional activities used to sell a product
online. Often referred to as ecommerce or
online merchandising, digital merchandising
can include everything from site
performance and digital product displays to
digital marketing and email marketing
initiatives.
 5. Omni channel Merchandising
Omnichannel merchandising refers to creating a
unified customer experience across all possible
touch points of the customer journey.
For example, if a retailer sells products through a
physical store, e-commerce website, and the app,
then he would try to provide seamless customer
experience to his customers. There has been
tremendous growth in the omnichannel retailing
because of the emergence of the internet.
Content
Merchandising Strategies

 Merchandising Plan

 Components of Merchandise Planning

Process of Merchandise Planning

 Principles of Merchandising

Sejal Thorve- 14
 Merchandising Strategies
Merchandising strategies play an important role in retail sales. Merchandising strategies are an
inherent part of any retailer’s success.

Some of the merchandising strategies are as follows:

1Traffic Building
The aim of the traffic building strategy is to draw your customers’ attention into the store,  then to the
aisle, and into a category.
 2. Transaction Building / Cash Generating:
This strategy focuses on increasing the size of the average category transaction, by encouraging
consumers to purchase complementary products.
3. Profit Generating:
When identifying profit generating strategies, three factors should be considered. These factors are:
higher selling price, higher gross profit % (margin) and categories that have a high GP% and a high
stock turn.
 4. Turf Defending
This strategy focuses on aggressively positioning the category to appeal to the consumer by
highlighting comparable items with key competitors. This strategy also focuses on keeping your
existing customers happy and returning.
Loyalty cards, aggressive pricing and promotion strategies, consumer education, high value coupons,
etc. are all designed to help maintain a loyal customer base.
5. excitement Generating
Excitement generating strategies essentially focus on offering fashionable and innovative products or
promotions. Seasonal items, latest arrivals, special items, limited editions, rapidly growing segments, and
items that encourage impulse purchases fall under this category.
6. Image Enhancing
This method is concerned with promoting a brand’s image in regards to quality, variety, price, usability,
or presentation. It offers a more long-term solution to brand building.

Click icon to add Click icon to add Click icon to add

picture picture picture
 Merchandising Plan
• Merchandise planning refers to an approach based on data to select, buy, present, and sell
merchandise to consumers so that the maximum rate of investment can be achieved and
consumers demand can also be satisfied.
• Merchandise planning is defined as “Planning and control of merchandise inventory of the retail
firm, in a manner, which balances between the expectation of target customer and strategy of
firm”.
 Components of Merchandise Planning
One of the biggest expenses a retailer makes is buying and marketing merchandise. This is why effective
inventory management is so critical. The basic components of retail merchandise planning include:
1 Product
 Merchandise or product is the most basic component of merchandising planning. The retailer has to
provide products which are expected to be demanded by his consumers. He is required to keep enough
inventory of each products category so that he never runs out of it and lose business.

 Products can be classified in the following categories:

Seasonal products Staple product Fashion product

2 Price
 Price is another important component of marketing mix. Price is an important variable in a country like India,
where people are price sensitive. Retailer has to determine his segment and the price range to which they
belong.

 Broadly it can be classified as low, medium and premium range.

 3 Range
Range refers to breadth, width, and depth of products that you sell in your store. There should be
enough choices options for the customer so that they can choose the right products for themselves.
Stores with limited width should provide enough depth options.
 4 Assortment
 Assortment means the combination of various products to be made available at retail stores.
Products should be assorted and presented department wise and category wise.

 For example: toiletries, cosmetics, staples, electronics, furniture, vegetable, etc. each category of
products will have different price level, brands , and size.
5 Space
 Visiting customers should be able to locate products easily. If a retailer has limited storage space,
then he should make sure that each type of product is displayed properly.

 Available space can be utilized to display and showcase products, using a hanger, different types of
fixtures, mannequins and fridge depending on size, nature, and dimensions of products.
 Process of Merchandise Planning
The planning process should be done thoroughly, and it should be detailed. It must cover every
single aspect of merchandise management. A store’s success depends on what customers desire to
buy and how those things are presented to them.

1 Forecast of Sales:

Estimated sales are the key to deciding the merchandise budget and plan. It is important to make a
forecast of sales for the entire organization, department, and on the basis of categories of products.
Addition of new product  and the elimination of non-performing products should be considered.

2 Merchandise Budget:

A merchandising budget is a document that will outline how much the company expects to sell in the
new season as well as how many goods it plans to purchase. It also specifies what type of pricing
markups the company anticipates making and any reductions to help move inventory.
 3 Merchandise Control:
It is important for a retailer to balance between the purchase of goods and their sales.
Over or under-stocking of merchandise should be avoided. Daily and weekly reports should be
prepared to know about the sale rate of merchandise. Order for New merchandise should be
placed before the stock reaches a danger level.

4 Assortment Planning:
The meaning of assortment is the arrangement of products on the basis of their categories. It means the
presentation of all range of products under department, categories, or section. For example, food
section, garments section, and cosmetic sections, etc.

A retailer should ensure the proper assortment. Each section and department must contain related
products. Each category should have enough SKU (Stock Keeping Units), and no shelf, rack, or display
should be empty.
 Principles of Merchandising
1 Offer What Customer Wants:

Retailer must offer in his store what the customer wants or desires.
He must select the segment of customer to whom he has to serve

2 Prepare Merchandise Plan:

Merchandiser has to finalize the merchandise plan. Such plan must

be based on demands and specialty of each store and department.
Micro details like types of products, brands, price category etc., have
to be planned.
3 Selection of Sources of Supply:

It is said goods well bought are half sold. Merchandiser has to

select vendors or suppliers who meet his requirements in terms
price, quality, delivery and reliability. 

4 Consistency and Change:

There should be consistency in merchandise assortment.
Regular customers are habituated to particular lifestyle, products,
price etc. Retailers should be capable of offering regularly as to
what his customer’s desire. 
 5 Present Right Assortment:
Retailers has to present right assortments of merchandise, i.e.,
types of product, brand, price range, and other features that the
regular customers expects. 

6 Customer Relationship Management:

Sale to a customer is not a once day affair or a single transaction.
A customer who visits a store must repeatedly visit the store.
Retailer has to develop relationship with the customers.

7 Customer Delight:
Retailer should ensure customers delight through new products, offers,
discounts, installment, returns and other facility something that is
unique, which may please and delight a customer and make him to
loyal be organization.
Private label

Vaishnavi Remma- 11
 Content
Concept of Private Label
Evolution of Private Label
Categories of Private Label
Advantages of Private Label
Disadvantages of Private Label
Concept of Private Label
 Classifications of Private Labels

Store brand
Umbrella Brand
Individual Brand
 Low Price

Quality

To earn higher
profit
Evolution of Private
Label
Store
Advertisements

Specific
Audience
 Categories of Private Label
• The Private Label Manufacturer's Association (PLMA) in the United
States categorizes private-label manufacturers into four categories

OEM (Original
Large national
Small,
Regional Equipment
brand
quality
brand Manufacturer)
manufacturers
manufacturers
manufacturers
 Advantages of Private Label
Reduced Competition
Brand Builder
Increased
Compensation
Customer Margins
Booster
Loyalty
 Disadvantages of Private Label

Dead Inventory Minimum

Customer Orders
Perception