The document discusses the scope of merchandising for a retail concept. It describes merchandising as including product procurement, availability, pricing, assortment, promotions, and vendor communication. It also lists some external factors that can influence merchandising. Additionally, it outlines the category hierarchy from merchandise groups down to stock-keeping units (SKUs) and variants. Finally, it provides details on category behaviors for different types of products like bakery, FMCG food and non-food, staples, general merchandise, and apparel in terms of demand patterns, forecasting, and procurement cycles.

1. RETAIL CONCEPTS
Part 2 : Merchandising

2. Retail Concepts
Merchandising – Scopes
RETAIL Concepts 2
Merchandiser
Product
Procurement
Product
Availability
Product Pricing
Assortment &
Range
Offers &
Promotions
Product Visibility
Procurement
Budget
Vendor
Communication

3. Retail Concepts
Merchandising – Scopes
RETAIL Concepts 3
# Few External Factors, beyond Merchandiser control which can
affect Merchandising Scope

4. Retail Concepts
Merchandising – Category Hierarchy
RETAIL Concepts 4
MERCHANDISE GROUP
CATEGORY-1
SUB-CATEGORY A
SKU 1
Variant 1 Variant 2
SKU 2
Variant 3 Variant 4
SUB-
CATEGORY
B
SKU 3
Variant 5
CATEGOR
Y-2
SUB-
CATEGORY
C
SKU 4
Variant 6

5. Retail Concepts
Merchandising – Category Behaviors
BAKERY & Confectionaries
 Yearly demand based on seasons and promotional offers
 Monthly Buying pattern constant
 Divided over periods of week
 Assortment & Range constant over month, varies based on seasons
 New Product Introduction high, based on market analysis and Vendors
 Demand Forecast Accuracy low, based on day-of-week, festive seasons
 Very low Shelf-life, daily / weekly procurement
RETAIL Concepts 5

6. Retail Concepts
Merchandising – Category Behaviors
FMCG Non-Food
 Yearly demand constant
 Monthly Buying pattern constant
 Divided over periods of month
 Assortment & Range constant over month, varies based on seasons
 New Product Introduction high, based on market analysis and Vendors
 Demand Forecast Accuracy low, based on LYSM, LYSQ
 High Shelf-life, monthly / quarterly procurement
RETAIL Concepts 6

7. Retail Concepts
Merchandising – Category Behaviors
FMCG Food
 Yearly demand constant
 Monthly Buying pattern constant
 Divided over periods of week
 Assortment & Range constant over month, varies based on seasons
 Demand Forecast accuracy high
 New Product Introduction low, based on market analysis and Vendors
 Demand Forecast Accuracy moderate, based on LYSM, LYSQ
 Moderate Shelf-life, fortnightly / monthly procurement
RETAIL Concepts 7

8. Retail Concepts
Merchandising – Category Behaviors
STAPLES – Cereals, Pulses, Oils & Spices
 Yearly demand constant
 Monthly Buying pattern constant
 Divided over periods of month
 Assortment & Range constant over year, varies based on promotional
offers
 New Product Introduction very low, based on Vendors
 Demand Forecast Accuracy high, based on LYAS, LYSM
 Moderate Shelf-life, fortnightly / monthly procurement
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9. Retail Concepts
Merchandising – Category Behaviors
GENERAL Merchandise
 Yearly demand varied and skewed
 Monthly Buying pattern not fixed
 Divided over periods of year
 Assortment & Range constant over year, varies based on promotional
offers
 New Product Introduction very low, based on market analysis and
Vendors
 Demand Forecast Accuracy high, based on LYAS, LYSM
 Very high Shelf-life, quarterly or yearly procurement
RETAIL Concepts 9

10. Retail Concepts
Merchandising – Category Behaviors
APPARELS & FASHION Merchandize
 Yearly demand based on seasons and promotional offers
 Monthly Buying pattern does not exist
 Divided over periods of year
 Assortment & Range constant over month, varies based on seasons
and promotional offers
 New Product Introduction very high, based on market analysis and
Vendors
 Demand Forecast Accuracy very low, based on LYSQ, LYSM
 Very high Shelf-life, seasonal (Spring-Summer-Fall-Winter)
procurement
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11. Retail Concepts
Merchandising
RETAIL Concepts 11