Merchandising
Merchandising is work that contributes to the sale
of a product to a retail customer. At the retail in-store level, merchandise is
meant to display products that persuade customers to buy more items or products
in a creative way for sale. Visual display merchandising in retail means
selling products using product design, selection, packaging, pricing, and
displays that encourage customers to spend more. These include discipline and
physical representation of products and displays and decisions about which
products should be presented to customers and when. Often in a retail setting,
creatively tied to related products or accessories is a great way to entice
customers to buy more.
Merchandising description
Merchandising is the planning and development of a
plan to enable an organization to sell a product that provides sales and profit
goals. Ensuring that a merchant will work closely with the buyer will enable
them to achieve a sales plan for the product they have purchased. It is often
interpreted as buying the right product at the right time, in the right place,
in the right quantity at the right price. Never just say it when someone asks
you what merchandising is because it doesn’t take into account all the plans
and strategies that are considered before getting stock in stores. You have to
give one more considered answer and it will really provide in the interview.
The
right product - style,
brand, color, size, etc.
The
right place - any store
depending on their budget and location
The
right time - at the
right time of the season to store goods i.e. prepare for Christmas or 'back to
school'
The
right amount - enough
for stores to create their budget but not have to stockpile markdowns at the end
of the season
The
right price - those who
will attract customers despite the competition will still earn a reasonable
return on investment for the retailer's money profit.
List of merchandising roles
A
merchandising role involves the following processes-
i.
Analyze past sales statistics/trends to estimate future product demand.
ii.
Creating commodity plans using the above techniques.
iii.
Releasing the merchandise plan to the buyer, who can buy any product, style,
color, etc. instead and decide which supplier, at which price.
iv.
Creating an agreement for suppliers with quality control, precision, and
flexibility. This is done throughout the season.
v.
A certain amount of stock is allocated to each outlet throughout the season.
Retailers are now trying to reduce stockholdings and commitments to allow
maximum flexibility.
vi.
After all distribution and sale of products, a merchandiser can monitor stock
movement, consider markdown, inter-branch transfer, promotion or cleanout, etc.
vii.
Decisions on how much money should be spent on business decisions, how many
separate lines should be purchased, and to what extent, involved in determining
the selling price to control profits and when the shares should be delivered to
the business, such as the merchandiser, play an important role in all business
decisions.
viii.
A merchandiser is effectively managing a field of business and will be
responsible for a larger turnover than many managers in small public companies.
Types of Merchandising
There
are different types of merchandise, such as below-
i. Visual Merchandising
While
a person may wear multiple hats in visual studies, the general definition of
visual merchandising is a marketing strategy that uses floor plans and
three-dimensional displays to persuade customers, project positive store
images, and maximize sales. Visual merchandising begins outside the store,
often with attractive window displays to persuade customers to come in. Can be
used to set the mood of the store's visual merchandising with interactive
displays or alto decor and to introduce customers to new or featured products.
Visual Merchandisers will also consider the types of in-store traffic flow to
display and determine the best placement for new products.
ii. Retail Merchandising
Shoppers
who come to the Brick and Mortar Retail Store are at first a retailer of an
attractive merchandise organization to be employed and motivated to purchase
more products than they think. Retail marketing attracts customers in a variety
of ways to specific products and services. It includes activities and strategies
like in-store design, selection of specific products to match a target market,
and physical and digital marketing of the product to customers. As a form of
marketing, promotional merchandising includes programs like licensing
agreements between retailers and entertainment companies that use attractive
promotional displays featuring adult celebrities or animated children's movie
characters.
iii. Digital Merchandising
Digital
merchandising is one of the most popular forms of merchandising in modern times
where users get digital access to an online-based store to purchase products
offered by digital merchandisers. But now there is a breakthrough in the
merchandising process due to the digital communication system of modern
technology for buying goods. It is also known as online merchandising or
virtual merchandising. The person responsible for digital merchandising is
known as a digital merchandiser. The demand for digital merchandisers is
increasing day by day as customers get more access to digital devices. If you
want to take a digital merchandising course, you can make many online-based
platforms available for free and on a paid basis. Choose the right one for your
study. Please do some study before choosing the learning platform.
iv. Product Merchandising
Product
merchandise is the process and business practice that displays its products
to customers in-store or online. While this may seem like an acceptable step
for the business, there are many factors that contribute to successful product
placement and business acumen. In fact, retailers can use specific business
strategies to influence a customer's buying habits and increase sales and
revenue. Establishing the ideal merchandising strategy for your business is
your goal audience, product sector needs, and whether you are displaying your
items in a brick-and-mortar store or a retail website can vary for a variety of
reasons. Strategies will also vary depending on what industry your business is
in and what is the most effective way to reach your specific target audience
and customer base.
v. Omnichannel Merchandising
Omnichannel
merchandising refers to creating an integrated customer experience across all
possible touchpoints of customer travel. For retailers, including physical and
digital stores, Omnichannel merchandising involves creating a seamless customer
experience even as the customer moves from one to another. The goal of
successful universal merchandising should be personalization in a large
industry. Smart retailers will integrate information across all channels so
they can develop customer insights and transform those insights into growth
strategies. A single master data management platform from which to plan and
collaborate across all channels will enable retailers to accelerate their
universal merchandising strategy.
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