Lecture Three Flashcards
How is a range plan beneficial
Helps potential buyers have a clear vision of the collection
What does a range plan provide to the customers?
Choice Correct pricing Correct quality Value Minimal stock investment
What do range plans include?
Total number of garments in the collection Flat illustrations Garment types Selling price Manufacturing details
What is the diversity of a range plan?
Buyers prefare to have a few key styles and a number of options that will best fit the collection
when buyers Assure delivery they must make sure that
It’s flexible
Responsive
Better return per foot
Better shopping experience
The marketing mix
Price - pricing policy reflects customers perception on money
Product - exclusive own label product of coordination
Place - store location
Promotion - allowing customers know about the collection
How do you create a successful planning strategy?
1- obtain an initial understanding of strengths and weaknesses of range
2 - consider a likely trading environment
3 - develop a merchandising planning strategy
Understanding a business is achieved by two metrics?
Actual gross trading profit - the profits before reduction
Sales density - a measure of performance in retailing
Formula for sales per metre
Total number of sales in the store decided by selling era in Square feet
Actual gross trading formula?
Net sales - cost of sales
What is the traffic light system?
Green - good
Amber - average
Red - poor
These are used to compare profits from pervious years
What is sales density?
Measures efficiency of use of retail space
Generally business aims to be at a high density
In order to identify which products under and over performing business average
Sales density formula
Sales turnover decided by floor space
The macro environment
Competitors - carrying out an any,sits on their trends and market share
Economic - reviewing GDP’s, inflation and individual forecasts
Product - trends, the size of market, coma orient years
Price and volume - growing in the market doesn’t indicate a good business
What is a range plan?
A range plan is a overview of a collection, it includes all designs, colours and materials and financial parameters. It’s a large product scale
