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Merchandising Philosophy
The document provides merchandising and marketing philosophy recommendations for driving profits and growth. It emphasizes focusing assortments on customer needs based on research insights. It also stresses the importance of disruptive value through strong opening price points and understanding pricing discounts. Finally, it recommends excellent execution through inventory and space optimization as well as modular placement and alternative assortments.
Merchandising Philosophy
- 1. MERCHANDISING MARKETING PHILOSOPHY Driving profits andgrowth the beeCLAN way beeCLAN Advisory Partners, CO c2016
- 2. ImpactfulAssortments • Customer solutions:be focused on the consumer needs and the customers wants • Insights driven by Quantitative, Qualitative,Observational research • Good/better/best assortments: provide clear understandings in differences in value and price • Having clear simple steps for the consumer—do they understand the added value? • Aggressive seasonal merchandising: understand that consumers come to categories based on their clock and calendar • The consumer has a ‘content calendar’ built into their mind—make sure we show them that we understand that calendar. • Fix under performing sku’s and categories: the store never gets bigger, either drop the sku, or figure out what is wrong with it • Chase sales drivers and category growers: shot while the ducks are flying!
- 3. DisruptiveValue • Have astrong focus on Opening Price Point: make it easy to acquire (for anyone) • Focus on the value proposition: what is the reason and why would anyone care? • Understand pricing discounts and elasticity: somewhere between it is ‘free and no one cares’ is the right price • Leverage our supplier to optimize opportunities for discounts: optimize all price breaks and be conscious of what drives our vendors pricing
- 4. Excellent Execution • Inventoryoptimization: there are not infinite options for the consumer, increasing their choices doesn’t always optimize the investment • Space optimization: our retailers floor is not getting bigger • Modular and POG execution: nothing is more important…execution, execution, execution • Alternative assortments and smaller formats—what is the core? Be aware that some things are needed by all consumers—they should be found everywhere!
- 5. Home Solutions: thehome is a big place • Capitalize on new home and new household formation trends and leverage across categories. New homes need many new things; mature or existing homes have all their habits and their stuff! • In every room the consumer can be helped: make the consumer live their life easier. • Health, Family, Kids,Time: be focused on the macro trends that drive category growth • Understand that focused segments are where the growth is! Millennials' (family focused/urban no kids), Hispanic, and Men!
- 6. Big Bets/Big Ideas:be first in the ideas and categories you believe in! • Drive innovation with insights: observe the consumer first, understand the pain points, and always make it easier for the consumer to succeed! Making things easy is hard! • Think in terms of retailer ‘launch’ exclusives: we need to remember our customers are the ones we sell to; their needs are great and our power is small. • Don’t be afraid to license other brands to gain access to new businesses: brands do matter—if you don’t have one, rent one! • Cover the OPP but layer on the premium brands: we can not ignore the fact that today there is far more people with far less resources who have greater choices. Focus on the 99% not on the 1%!
- 7. Localization and Segmentationis key • Clustering assortments: not all things are needed or wanted everywhere! No snow shovels inTampa; no garage storage in Manhattan • Key segments: Hispanic Millennium; Urban; Men • Each house is different, but he needs of the room are the same—every room should help us feel good, less stressed, and safe!