市场营销课件Masters Lec 4 Range Planning Assortment Strategies.ppt

Range Planning – Assortment Strategies Corinna Budnarowska Intended Learning Outcomes After studying Range Assortment Planning you should be able to: Describe the circumstances that trigger buying decisions; Compare product features and attributes; Identify a range of assortment strategies and apply the appropriate strategy to an appropriate range; Discuss how to select and manage suppliers Range Planning Range = offering consumer ‘choice’ (Ghosh, 1990) Number of lines carried by retailer is determined Consumer focus – are retailers / manufacturers offering what customers want – ‘potential disparity’? – does assortment shape consumer preferences? (Hart Rafiq, 2006) Helps to determine required service levels Service levels are about meeting customer expectations “satisfaction is intimately linked to expectations” (Diehl Poynor, 2010) Provides link between supply demand (Hart Rafiq, 2006) Dynamic – constantly needs to evolve, grow change Determines store image (Hart rafiq, 2006) Defining Assortment Planning The buying dept needs to establish a merchandise budget first Once this is defined - need to establish a ‘Range Structure Plan’ (the planned buy) in order to have a framework in place to finalise the ‘Range Plan’ (the actual buy) ‘Range Structure Plan’ considerations: Range profile (price, style, appeal) Range width/depth (consumer choice, adequate promotional stock) Average selling price (market positioning) Margin mix (profit, risk) Sales density (space performance) 1 Formulate Merchandise Plan 2 Determine Purchase Budget 3 Plan Merchandise Range 4 Product Selection 5 Determine Pricing strategy and price points (zones) 6 Negotiate Cost prices and Terms 7 Determine Distribution Strategy 8 Allocate space 9 Visual Merchandising 10 Maintain Range 11 Evaluate Performance Consumer The Buying Cycle Re-examining ‘The Buying Cycle’ to establish how assortment/range planning takes place ‘The Buying Cycle’ (Elliott Rider, 2003) The Interrelationship between Market