The document outlines guidelines for a final project in which students will create a six-month buying plan for a fictitious retailer. The project has three milestones - a dollar plan, stock plan, and final merchandise buying plan. It provides details on the content and format required for each milestone. Students must incorporate course concepts around sales forecasting, inventory levels, purchasing, target markets, and merchandise assortment. The final plan will be graded using a rubric that evaluates inclusion of main elements, inquiry, analysis, and professional presentation.
FMM 114 Final Project Guidelines and Grading Guide O
1. FMM 114: Final Project Guidelines and Grading Guide
Overview
The final project for this course is the creation of a six-month
buying plan that includes three components: a dollar plan, a
stock plan, and a final merchandise-
buying plan with an executive summary and retail store
overview. Based on the knowledge obtained in the course, you
will develop a comprehensive buying plan
for a fictitious retailer, the University Boutique. The successful
completion of this project will require you to incorporate
information provided throughout this
course. The project is divided in to three milestones, which will
be submitted at various points throughout the course to scaffold
learning and ensure quality final
submissions. These milestones will be submitted in Modules
Five, Six, and Eight.
Format
Milestone One: Dollar Planning
In 5-2 Dollar Planning, you will submit a word document
containing all sections of the milestone. This is required but not
graded. This is submitted for formative
feedback from the instructor.
Milestone Two: Stock Planning
2. In 6-2 Stock Planning, you will submit a word document
containing all sections of the milestone. This is required but not
graded. This is submitted for formative
feedback from the instructor.
Milestone Three: Merchandise-Buying Plan
In 8-2 Merchandise-Buying Plan, you will submit the completed
plan. It should be a complete, polished artifact containing all of
the main elements of the final
product. It should reflect the incorporation of feedback gained
throughout the course. This milestone will be graded using the
Final Product Rubric.
Deliverable Milestones
Milestone Deliverables Module Due Grading
1 Dollar Planning 5 Required but not graded; formative
feedback from instructor
2 Stock Planning 6 Required but not graded; formative feedback
from instructor
3 Final Product: Merchandise-Buying Plan 8 Graded separately;
Final Product Rubric
Main Elements
3. The final project should include the following sections:
Milestone One: 5-2 Dollar Planning
Assignment Overview
As the merchandise buyer for the University Boutique, you have
been given the task of developing the six-month buying plan for
the coming
fall/winter season. To get started you will begin by planning
sales, beginning-of-month stock, reductions, and purchases.
This assignment is divided into four sections, one for each part
of the dollar plan. For each section, read the information
provided to assist you in
completing the tables.
You MUST fill in all empty spaces in each table.
Calculating Planned Sales
4. When planning sales, merchandise buyers must consider factors
such as current sales trends, economic conditions, fashion
trends, and the retailer’s
past sales performance. However, in many instances the
merchandise buyer does not establish his or her own sales goals.
It is management who
decides the amount of profit that is needed to continue running
the business successfully. Therefore, the sales goal for the
University Boutique for
this six-month buying period is $2,840,000.
Complete the table by calculating the planned sales for each
month using the formula provided: Planned sales = Each
month’s % x Total planned
sales
Example: To calculate August’s planned sales, multiply 17% by
$2,840,000 = $482,800.
August September October November December January
Totals
Planned
Sales
482,800 2,840,000
Planned
Sales %
5. 17% 15% 15% 18% 19% 16% 100%
Calculating Planned Reductions
Markdowns, employee discounts, customer allowances, and
sales promotions all fall under the category of reductions. These
figures must be
factored into the dollar plan because they affect inventory
levels. Merchandise buyers understand that retailers become
profitable through
advertising and promotion, which is established by marking
down merchandise to encourage sales.
Calculate the total reductions for each month at the University
Boutique.
reduction percent for each month. The reduction percent is
based on sales,
special events, and holiday promotions that will occur during
each month. The months where a major holiday is celebrated
typically have a
higher reduction percent (e.g., Halloween, Thanksgiving,
Christmas, etc.).
months. Five of the months already have an established
reduction percent so to find
the last percent, add up the five percentages and subtract the
total from 100%.
6. use this formula to calculate the reduction dollar: Planned sales
x Reduction %
= Reduction $
August September October November December January
Totals
Planned
Sales
482,800 2,840,000
Planned
Reduction
$
77,248 477,120
Planned
Reduction
%
16% 14% 18% 19% 18% 100%
Calculating Planned BOM Stock
7. A major part of the dollar plan is the relationship between stock
and sales. At this point you have established what your sales
goals are for each
month. Now, you must plan enough stock to meet sales, as well
as maintain a fully stocked store without overstocking. When
planning inventory,
every merchandise buyer’s goal is to maintain adequate
merchandise and regulate the stock (i.e., amount of money the
retailer invests in its
inventory) in relation to sales to maintain a balance between the
two.
Merchandise buyers usually plan monthly stock figures for each
month of the dollar plan. The inventory figures are recorded at
the retail value. This
means the inventory (BOM stock) totals are listed at the amount
the retailer would sell the inventory for (i.e., the retail price).
The stock-to-sales (S-S) ratio varies from month to month,
depending on the events that occur each month, including
holidays, store promotions,
sales, and special events. When the merchandise buyer plans S-
S ratios for each month, he or she uses the S-S ratios from the
previous year for the
same season as well as industry standards to determine what the
planned ratios should be. The University Boutique has already
established what
the S-S ratios will be for this season’s planning.
8. Using the table below, calculate and fill in the BOM stock for
each month using the following formula: Planned sales x S-S
ratio = BOM stock
August September October November December January
Totals
Planned
Sales
482,800 2,840,000
S-S Ratio 2 1.5 1.5 2 2 2 11
BOM
Stock
5,254,000
Calculating Planned Purchases
At this point you have completed your planned sales, planned
reductions, and planned BOM stock figures. Now you will use
all these figures to
determine the retail and cost planned purchases.
In the table below, calculate and fill in the planned sales, EOM
stock, BOM stock, and reduction figures for each month. Use
the appropriate figures
9. that have been calculated in the previous tables.
anned purchases @ retail use the following
formula:
PL Purchases @ Retail = PL Sales + PL EOM + PL Reductions
– PL BOM
formula:
PL Purchases @ Cost = PL Purchases @ Retail x (100% –
MU%)
Note: The University Boutique has an established MU% of 60%
for all merchandise. The boutique’s goal is to gain a 60% profit
on all merchandise
sold in the store; by multiplying planned purchases @ retail by
the markup complement (e.g., 100% – MU%) the buyer will
know exactly how much
merchandise to purchase for each month to meet that month’s
sales goal.
Just as BOM stock figures in the dollar plan are valued at their
retail price, so are the planned purchases @ retail. This allows
the buyer to see how
much profit could be generated in each month of the season in
relation to how much it would cost to purchase the merchandise
that is planned for
10. each month. Planned purchases @ cost shows the buyer how
much would need to be spent on the merchandise that would be
purchased for each
month.
Note: One month’s end-of-the-month (EOM) stock is the same
as the next month’s BOM stock. For example, if a retailer
closed its store on
September 30 (the last day of the month) with inventory levels
amounting to 639,000 (September EOM stock), the same figure
(639,000) would
also represent October’s BOM stock figure the next day when
the retailer opened on October 1.
Example: August’s EOM stock of 639,000 also represents
September’s BOM stock figure. This example will be helpful
when completing the planned
EOM stock row.
August September October November December January Totals
Planned Sales 482,800 2,840,000
Planned EOM
12. Now that you have completed the dollar plan it is time to begin
planning the University Boutique’s merchandise assortment.
Stock planning is an
important component of the six-month buying plan because it
outlines exactly what type of merchandise will be sold.
Therefore, as the
merchandise buyer for the University Boutique, you must decide
what styles, colors, fabrics, prints, and sizes will be carried in
the store and at what
price point the merchandise will be sold for the comi ng season.
This assignment is divided into three sections, one for each
component of the stock plan. Read the bulleted information
provided in each section to
assist you in completing the tables.
Identifying Classifications and Sub-Classifications
Developing a stock plan entails identifying the retailer’s
classifications, sub-classifications, and their characteristics
(e.g. colors, fabrics, sizes, and
price points). As the buyer for the University Boutique, you
must develop a new classification plan for the store that
includes classifications, sub-
classes, class sales, and percentages. Complete the table by
filling in your chosen classes and sub-classes.
-forward retailer that
carries juniors and misses apparel. The boutique is located in
proximity to a college
13. campus full of young students, staff, and faculty. You must
choose seven classifications for the University Boutique. Your
choices should be
based on the type of customer that you believe the University
Boutique should target, according to what they are likely to
buy.
-classifications for each of the seven
classifications you have listed. Note: A classification is a
merchandise category (e.g.,
sweaters, outerwear, jeans, dresses, accessories, sleepwear,
pants) and sub-classifications are specific styles of a
merchandise category (e.g.,
sweaters: cardigans, pullovers, ponchos, tunics).
1. Classification
Name
5.
Classification
Name
16. the space provided below. Explain why you believe the
classifications and sub-classifications you have chosen are the
best merchandise assortment
for the retailer.
Justification:
Calculating Classification Sales
Classification sales figures provide the buyer with an idea of
how much money is expected to be generated from each
merchandise category. In
order to determine the potential sales generated from each
classification, the buyer must consider which will sell the most,
which will sell a
moderate amount, and which will sell the least. This is based on
the buyer’s fashion forecasting research for the season and past
experiences.
Complete the table by calculating the sales for each
classification.
merchandise assortment to consist of, distribute 100% among
the classifications
based on what you believe the percentage of sales each
classification would achieve.
a percent. Remember, the total cannot exceed 100%.
17. determine classification sales in dollars for each class. Formula:
Classification Sales =
Total PL Sales x Class %
Classification Name Class Percentage Total Planned Sales
Classification Sales
17%
2,840,000
(multiply all percentages by
Total Planned Sales)
482,800
20%
13%
10%
18. 100% 2,840,000
Assortment Planning by Color, Fabric, Size, and Price Point
As the stock plan is developed, a merchandise assortment for
each classification must be established by providing additional
characteristics of each
classification, including colors, fabrics, sizes, and price points.
As a merchandise buyer consider the following questions:
classification?
What retail prices do I think the boutique’s target customer
would be willing to pay for the merchandise in this
classification?
Once you have considered these questions, complete the
assortment planning table.
ete the table. Do not
choose shoes or accessories to complete the assortment plan.
characteristics that will be represented in the merchandise
assortment for the classification
you have chosen. Fill in all empty spaces in the table.
19. price point) determine the percentage that will be allocated to
each. The total for
each separate characteristic must equal 100%. Remember, you
are distributing 100% among each characteristic based what you
expect the
University Boutique’s target customers to buy during the
season.
Assortment Plan for ______________ Classification
Sub-classifications
Sub-classifications % to Stock
100%
Colors
Colors % to Stock
21. Price Points % to Stock
Price Points
100%
Now that you have completed the table, provide an overall
justification. Write a 250-word justification explaining why
you, as the buyer for the
University Boutique, believe the merchandise assortment you
have chosen for this classification will be successful in
achieving the class sales goal.
Justification:
Milestone Three: 8-2 Merchandise Buying Plan
Assignment Description
You have been hard at work developing the six-month buying
plan for the University Boutique, and management is ready to
review your plan for
the upcoming season. In this component, you provide a
22. compilation of your complete merchandise-buying plan,
including the dollar and stock
plans, along with an executive summary and retailer overview.
The merchandise buying plan should contain the following
sections:
Executive summary
Executive Summary
The executive summary should provide the University Boutique
with the overall vision that you have established for the
upcoming season. This
must include your justifications for PL sales, PL reductions, PL
BOM stock, and PL purchases. The justification should explain
how you plan to meet
your sales goals, how reductions (e.g., sales promotions,
23. markdowns, advertising) will be used to facilitate the sale of the
merchandise, how BOM
stock is a sufficient amount of inventory for each month, and
how purchases will be used to bring in desirable merchandise to
meet consumer
demands. The minimum word count for the executive summary
is 250 words.
Retailer Overview
The following topics should be discussed in this section:
group(s) you believe the retailer should target and include the
demographic
and psychographic information.
you believe the merchandise assortment you have planned is
suitable (e.g.,
lifestyle, fashion taste) to the target market you have identified.
n what pricing
strategy you plan to use for the upcoming season and how it
will entice
consumers to buy while simultaneously generating profit for the
retailer.
The minimum word count for the retailer overview is 500
words.
24. Dollar Plan
Use the figures from the Module Five dollar plan.
August September October November December January
Season Totals
Planned Sales 2,840,000
Planned % of Season 17% 15% 15% 18% 19% 16% 100%
Planned Reduction $
Planned Reduction
%
16% 14% 18% 19% 18% 100%
Planned BOM Stock
Planned S-S Ratio 2 1.5 1.5 2 2 2 11
Planned Purchases
@ Retail
25. Planned Purchases
@ Cost
Use the formulas provided to calculate season turnover and
average stock. When calculating average stock and turnover,
answers should be
rounded to the nearest whole number.
# of Inventories (7)
Initial Markup % 60%
Season Turnover
Average Stock
Stock Plan
Use the data from the Module Six stock plan. Complete sub-
26. classes, colors, fabrics, sizes, and price points for only one
classification, as with your
Module Six submission.
Classification
Name
Class Sales
Percentage
Class Sales
Total
Sub-Classes Colors Fabrics Sizes Price Points
28. must follow APA formatti ng guidelines.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Main Elements Includes almost all of the main
elements and requirements
and cites multiple examples to
illustrate each element
Includes most of the main
elements and requirements and
cites many examples to illustrate
each element
Includes some of the main
elements and requirements
Does not include any of the
main elements and
requirements
25
Inquiry and Analysis
Explores multiple issues
through extensive collection
and in-depth analysis of
evidence to make informed
conclusions
29. Explores some issues through
collection and in-depth analysis
of evidence to make informed
conclusions
Explores minimal issues
through collection and
analysis of evidence to make
informed conclusions
Does not explore issues
through collection and
analysis of evidence and does
not make informed
conclusions
20
Integration and
Application
All of the course concepts are
correctly applied
Most of the course concepts are
correctly applied
Some of the course concepts
are correctly applied
Does not correctly apply any
of the course concepts
10
30. Critical Thinking Demonstrates comprehensive
exploration of issues and ideas
before accepting or forming an
opinion or conclusion
Demonstrates moderate
exploration of issues and ideas
before accepting or forming an
opinion or conclusion
Demonstrates minimal
exploration of issues and
ideas before accepting or
forming an opinion or
conclusion
Does not demonstrate
exploration of issues and
ideas before accepting or
forming an opinion or
conclusion
20
Research Incorporates many scholarly
resources effectively that
reflect depth and breadth of
research
Incorporates some scholarly
resources effectively that reflect
depth and breadth of research
31. Incorporates very few
scholarly resources that
reflect depth and breadth of
research
Does not incorporate
scholarly resources that
reflect depth and breadth of
research
15
Writing
(Mechanics/Citations)
No errors related to
organization, grammar and
style, and citations
Minor errors related to
organization, grammar and style,
and citations
Some errors related to
organization, grammar and
style, and citations
Major errors related to
organization, grammar and
style, and citations
10
Earned Total: 100%