fashion merchandising & promotion

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Fashion Merchandising & Promotion. What is Merchandising?. Fashion Merchandising involves the activities of planning, buying and selling apparel and accessories. It is the central function of A pparel Retailing Includes the following areas: Retail Positioning Merchandise Buying - PowerPoint PPT Presentation

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Fashion Merchandising & Promotion

Fashion Merchandising& PromotionWhat is Merchandising?Fashion Merchandising involves the activities of planning, buying and selling apparel and accessories.It is the central function of Apparel RetailingIncludes the following areas:Retail PositioningMerchandise BuyingMerchandise PromotionVisual Merchandising

The Retail SegmentGeneral MerchandisersMarket all types of goods in multiple price ranges and try to satisfy as many needs of broad range customers.Examples: Sear, J.C. Penney, MacysSpecialized MerchandisersOffer limited lines of related products targeted to more defined customersExamples: Aropostale, Forever 21, Victoria's Secret Types of Retail MerchandisersDepartment StoresLarge scale general merchandisers that offer many varieties of merchandise grouped into separate departments.Chain StoresA group of stores that is owned managed, merchandised and controlled by a central office and have similar goods and pricesCan be general or specialized merchandisersDiscount StoresRetail establishments that sell merchandise at lower than recognized market-level pricesSpecialty StoresCarry large selections of limited classifications of merchandise. Usually have lower volume and higher pricesNon-Store RetailersSelling without a conventional facility

Types of Retail MerchandisersMatch the Following Store with its Retail TypeTypes of Retail MerchandisersDepartment StoreChain StoreDiscount StoreSpecialty StoreNon-Store A. CoachB. AmazonC. MacysD. T.J. MaxE. Forever 21Check your answers with Mrs. WendtRetail PositioningRetail Positioning refers to where a retailers situates itself in the market.General Retail Positioning Price CategoriesDesigner: (couture) original high priced-fashion for the tiny class market; distinctive style and emphasize top qualityBridge: secondary lines of high priced designers; made with expensive fabrics, fine details & produced in small quantities

General Retail Positioning Price CategoriesBetter: high quality, but more reasonable prices; they are ready to wear garments that are more available to consumers than high fashion designsModerate: medium priced merchandise with well known brand names; sold through department & chain stores as well as specialty storesBudget: lowest price category of apparel; sold on retail racks and shelves; no original designs resulting in knock-offsRetail PositioningDesignerBridgeBetterModerateBudgetRetail PositioningMatch the Brand with its Price CategoryCheck you answers with Mrs. WendtA. Liz ClaiborneB. Valentino for Angelina JolieC. GapD. Michael Kors for MacysE. No BoundariesTarget MarketsRetail Positioning includes choosing a Target MarketTarget Market: specific segment of a total market that a company wants as customers and toward whom it directs its marketing efforts.Based on Demographics: Age, Gender, Race, Education, Religion, Income, Occupation, and Geographic LocationPsychographics: statistics that try to explain consumer behavior such as: Lifestyle, Values, Attitudes & Self-Concept

Target Markets Match the Store with its Target MarketForever 21

2. Banana Republic

3. Nike

A. Various age groups with athletic lifestyles

B. Teen to Twenties, with little to medium income

C. 30 40 year old working women; with middle to upper middle income

Check you answers with Mrs. WendtRetail Positioning StrategiesProduct Strategy: the assortment breadth & depth a retailer offersBreadth: the number of different item categoriesDepth: the quantity of each item availableThree main approachesBroad & Shallow: many categories, small quantityNarrow & Deep: few categories, large quantityModerate breadth & depth: balance between categories & quantityPrice Strategy: pricing strategy should correlate with a retailers image, target market and competition.Quality & price usually, but not always correlateHigh price = high qualityLow price = low quality

Retail Positioning StrategiesPrice Strategy ContinuedPricing ApproachesPrestige Pricing: setting high prices on items to attract customers who want quality goods or the status of owning expensive & exclusive merchandisePrice Promoting: advertising special price reductions of goods to bring in customersValue Pricing: selling items below the suggested retail priceEveryday low pricing: promotes the idea that shoppers can shop anytime in the store and receive a fair price

Retail Positioning StrategiesPlace Strategy: relates to the site location and physical design of the site.LocationsCentral business district: stores in cities or townsNeighborhood shopping centers: 5 -15 storesCommunity shopping centers: 15 30 storesRegional shopping centers: Enclosed mallsSuper regional centers: Mega-malls

Retail Positioning StrategiesPlace Strategy Continued:Facilities DesignStore exteriorVisible to trafficCompatible with surroundingsConvenient for consumersStore InteriorSelling areas: merchandise is displayedSupport areas: dressing rooms, bathrooms, checkout, etc.

Retail Positioning StrategiesMerchandise Planning & BuyingMerchandise Planning: involves estimating, as correctly as possible, consumer demand and how it can be best satisfiedMerchandise Buying: is done through vendors, such as apparel producers, to obtain the merchandise decided upon during the planning phaseThe Merchandise Cycle

Merchandise Planning & BuyingGather Information frompast sales recordsSales peopleConsumer opinions and behaviorMerchandising bureausVendorsTrade informationComparison shoppersMerchandise Planning & Buying2. Prepare Buying PlansBuying planDescribe the types and quantities of merchandise to purchaseCreate a dollar merchandise planEstimated budget for stock, sales and profitAssortment PlanVariety and quantity of stock keeping units (SKU) to be carries

Merchandise Planning & Buying3. Select Merchandise resourcesManufacturersWholesalersWeb sites & catalogsImportersVendorsMerchandise Planning & BuyingMarket Week: scheduled periods of time during which producers introduce their new collections or lines (fashion shows all week)Collection: total number of garments in a designers or producers seasonal presentation, especially for high priced garmentsLine: group of styles within a collection that are produced and sold as a set of new selectionsTypically has one design element in common throughout all garmentsColor, line, balance, silhouette, etc.Merchandise Planning & BuyingExample of a LineMerchandise Planning & Buying

Major Domestic Fashion MarketsNew YorkCalifornia: L.A. & San FranciscoDallasChicagoMiamiAtlanta

Merchandise Planning & BuyingMajor Foreign MarketsLondon, EnglandParis, FranceMilan, Italy

Merchandise Planning & BuyingMerchandise PromotionPurpose of Fashion PromotionInformCreate awareness and understanding of productsPersuadeConvince consumers of the benefits of using/buying productsRemindProduct availability, encourage purchases and stimulate additional purchases

Promotion LevelsConsumer: directly to consumers, usually done on a national scale by companies that do not sell directly to consumersTrade: aimed within the industryFiber and fabric companies promote to manufacturersRetail: promotion by a store to its customersPromote merchandise chosen for their target market in hopes to create demandMerchandise PromotionPromotion Program: details of efforts for a period of time. It includesGoals & objectivesMessage or themeSpecific Promotion activitiesTiming of activitiesMedia to be usedAssignments of responsibilityBudgetEvaluation Methods

Merchandise PromotionAdvertising: any paid form of non personal sales message made by a sponsor through a communication mediumPurpose:Build a companies imagePromote a brand or productAnnounce a saleRetail Advertising PurposeBring customers to a sightPromote an imageMerchandise PromotionTypes of AdvertisingProduct advertising: designed to sell specific, identifiable merchandise items, lines or servicesInstitutional advertising: designed to sell a reputation of an organization rather than a specific productCooperative advertising: sharing the cost with two or more organizations

Merchandise PromotionForms of Advertising Merchandise Packaging:Company names, logos, slogans on shopping bags, boxes, paper, etc.NewspaperMagazinesOutdoor: billboards, public transit ads, etc.Direct MailRadioTelevisionWebsites

Merchandise PromotionVisual MerchandisingVM: physical display of goods in the most attractive and appealing waysVM Purpose:Sell goods and promote store imageEducate about new items trendsShow how items can be wornGrab customer attentionProvide information on price or special featuresStore Dcor & atmosphericsDcor: style and appearance of interior furnishingsTheme should be carried throughout the store to fit companys imageShould coordinate with merchandiseAtmospherics: features intended to create a particular emotional mood or attitude through sound, smell and the dcorUses psychology to induce buyingExamples: type of music or pleasant aromas

Visual MerchandisingMerchandise Presentation: includes the ways that goods are hung, placed on shelves, or made available for sale in retail storesShoulder-out presentationGarments are hung with only one side showing from shoulder to bottom (like hung in your closet)Face-forward presentationClothing is hung with the front fully facing the viewerAlways done at the entrances and aisles of a storeVisual MerchandisingMerchandise Fixtures

Visual MerchandisingA-framesBase cabinetsBuild-upsCard holdersC-rackDrapersDump or table binFour-way rackGondolaGrid unitsHangbarsPedestal unitsPegboardQuad rackRoundersShowcasesSlatwall unitsSpiral costumerStraight armSuperquadTablesT-standTier tables or racksTwo-way racksWaterfallsInterior Store Display: individual and notable p

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