Class Notes (836,518)
Canada (509,851)
RMG 200 (77)
Ken Wong (25)
Lecture

Chapter 9.pdf

5 Pages
96 Views
Unlock Document

Department
Retail Management
Course
RMG 200
Professor
Ken Wong
Semester
Winter

Description
Chapter 9 Merchandise Management -Process by which a retailer attempts to offer the right quantity of the right merchandise in the right place at the right time while meeting the company’s financial goals The buying organization Merchandise Group (Highest level) -VPs - Managed by the senior vice presidents of merchandise (General merchandise mangers (GMMs) - Managers are responsible for several departments Department (Second level) – Divisional Merchandise - Managed by divisional merchandise managers who report to the vice presidents - Each divisional merchandise manager is responsible for a department Classification (Third level) - Buyers - Each divisional merchandise manager is responsible for a number of buyers or category managers Categories (Fourth level) – Associate Buyers - Each buyer purchases a number of categories SKU (Last level) – Assistant Buyers Ex. Merchandise Group: Beauty & Body (vs. Food, pharmacy) Department: Men’s Health product Classification: Men’s Sexual Health Category: Condom SKU: Durex Tropical (Banana/Strawberry/Orange) 12-pack Category Management – is the process of managing a retail business with the objective of maximizing the sales and profits of a category Two reasons for adopting category management are as follows:  The category manager is ultimately responsible for the success or failure of a category  Harder to identify the source of a problem and solve it without category management  By using category management, all of the activities and responsibilities just mentioned come under the control of the buyer’s staff  Easier to manage to maximize profits using category management  Managing by category can help assure that the store’s assortment is represented by the “best” combination of sizes and vendors , the one that will get the most profit from the allocated space Category Captain - It’s a manufacturer, supplier, or importer; responsible for product placement, price, promo, on for all brands in the category - Importance of establishing strategic relationships with vendors - Retailers and their vendors share the same goals – to sell merchandise and make profits - Since vendors can develop systems for collecting information for all of the areas that they service, they can provide buyers with valuable information - Category captain – this supplier forms an alliance with a retailer to help gain consumer insight, satisfy consumer needs and improve the performance and profit potential across the entire category Disadvantages - Establishing category captain is that vendors could take advantage of their position - Captain could collude with the retailers to fix prices - It could also block other brands, particularly smaller brands from access to shelf space Category life cycle – a merchandise category’s sales pattern over time - Fad – a merchandise category that generates lot of sales for a relatively short time – often less than a season Staple merchandise/basic merchandise - Inventory that has continuous demand by customers over an extended period of time Sources of information to develop forecasts for fashion categories (1) Previous sales data (2) Personal awareness (3) Fashion and trend services (4) Vendors (5) Traditional market research Forecasting fashion merchandise categories - Previous sales volume - Published volumes - Customer information (SCAN – shop, converse, act, and
More Less

Related notes for RMG 200

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit