Merchandising Calender

By : Harsha Siddham Sanghamitra Kalita Sayantani Saha

 What

is merchandising?

Retailers ability to provide the right products to the consumer at right place at right time in right quantity.

Process of creating and procuring a product or service needed by the consumer and ensuring that it reaches the place where consumer can buy.
Plan concerned with planning and controlling of retail inventories. It is called as the core of retailing as goods well bought are half sold. Process of bringing new products ranges, rearranging the store, sending out seasonal messages through the appearance of the store. It is about being in the pulse of shoppers and steering them to visit the retail store and create willingness to part with their money.

5Rs of MERCHANDISING
Right merchandise Right price Right quantity Right time Right place

Is the primary tool in an apparel company to track, plan and ensure the delivery of the right goods at the right time, at the right place in the right quantity. Establishes responsibilities and sets forth, starting dates and deadlines for completion of all key events for a season. Helps to ensure smooth flow of the merchandise plan. Helps track the season and orders avoiding any costly mistakes. thus helps in

Activities in merchandising planning process.

Establishing the key dates Review the last seasons best sellers Plan concept/mood boards

Shop major retail outlets and fabric market

Fabric selection and finalizing the colors

Order prototype
Test prototype

Advertising

pre-costing
fabric order for bulk production

advance breakdown for garment manufacturing

stitching, quality inspection and finishing final costing sales plan after forecasting sales

supply from manufacturing unit to distributors

final dispatch from distributors to retail outlets

ACTIVITY
Establish Key Dates

DESCRIPTION
Timing for key dates are determined by : merchandise arrival times,trade show dates and holidays. All departments confer and relate to each other regarding key dates such as start dates and ship dates.

TIME DURATION
one day to complete.

ACTIVITY
Review Last Seasons Best Sellers and visualize line direction.

DESCRIPTION TIME DURATION

to review last seasons best sellers. three weeks to complete, but market research is going on at information is used to the same time bring back those styles and/or to create new styles similar to the best sellers. they also undertake market research for analyzing the trends and target market and present it to the design department.

ACTIVITY

DESCRIPTION TIME DURATION

Plan Concept/ mood Boards

Team will work to plan concept boards. considering the proposed fabric, styles and line, the concept of this line is recorded on a concept board.

It takes three weeks.

ACTIVITY
Shop Major Retail and Fabric Markets

DESCRIPTIO N
The team will be analyzing new trends, seeing what is available, talking to store employees to determine what customers are buying. At this time, discussions and decisions will be made on fabrics, trims and merchandising directions.

TIME DURATION
This takes two weeks.

ACTIVITY

DESCRIPTION

TIME DURATION
This takes 3days.

Fabric Selection

select the fabric that will be used in the line.

Finalize Colors

Taking in consideration the mood, advertising, fabric selection and availability, the departments finalize the colors for the line.

This takes 3days.

ACTIVITY
Order prototype

DESCRIPTION
Team will work to order prototype fabric that will be used to make the first samples, after they have shopped the retail and fabric markets and before the yardage is tested.

TIME DURATION
This takes one week to order. Delivery depends on where the fabric is sourced from.

ACTIVITY

DESCRIPTION TIME DURATION

This takes up to 2 weeks.

Test Prototype yardage The team will work to test prototype yardage. This is done to determine if the fabric is liking to suit the purpose of making the styles for the line. Fabric will be washed, stretched, and tested for shrinkage.

ACTIVITY
Establish Advertising Concepts

DESCRIPTION
works as a team to establish advertising concepts which includes hoardings, flyers, brand labels and wash care labels.etc

TIME DURATION
This takes two weeks.

ACTIVITY
Pre-costing

DESCRIPTION

TIME DURATION

Team works to pre-cost One week the garments in the line. At this time, adjustments can be made in the styling to respond to the costing.

Order Production Fabric

Production and Sourcing department will order the fabric for production, based on the sales projections.

three weeks

Spec Sheets and Engineering Evaluations

team works to produce the spec sheets and engineering evaluations on each style in the line. The garments are measured and the construction is planned.

two weeks

Grading and marker planning

Marking and One week Grading departments will mark and grade the garments that are to go into production.

ACTIVITY
Advance Breakdown to garment Manufacturing.

DESCRIPTIO N
Production department now breaks down the production details, and instructions , for each garment in the line.

TIME DURATION
One week

Stitching ,quality inspection and finishing.

Garments stitched, quality checks are done and final finishing of garments is done.

Three weeks

ACTIVITY
Initial Sales Forecast

DESCRIPTION
department determine the initial sales forecast based on past sales, meeting with top accounts, and meeting with sales reps.
Merchandising and Sales departments meet and discuss sales strategies and final sales plan is decided.

TIME DURATION
3days

Merchandising Sales Meeting

3days

ACTIVITY
Complete advertising of collection

DESCRIPTION

TIME DURATION

a team works to one week complete the advertising plans for the collection of garments. a team works for complete final costing for each garment in the line. Sometimes adjustments are made at this time. One week

Complete Final Costing

ACTIVITY
Supply from Manufacturing unit to distributor

DESCRIPTIO N
Handing over the final bulk manufacturing to the distributor

TIME DURATION
1 week

Supply from distributor to final retail stores

final dispatch to the retail outlets

1week

Fabric

Fabric ordering date Fabric delivery date Lab dip approval date Bulk lot approval date Fabric test report date Shade lot approval date

Trims Trim ordering date Trim delivery date Bulk approval date

The delivery date Mode of shipment Production timelines All holidays in between The courier time for sending various samples, swatches and trims for approval.

SEASONS:
1. FALL-WINTER It includes sep, oct, nov & dec End of season sale It includes jan,feb

2.SPRING-SUMMER It includes mar,apr,may,june

End of season sale It includes july & aug

Calender planning ( 6 months )

Merchandise planning January to august for fall-winter July to February for spring-summer collection in stores September march

Planning parameters B.O.M inventory Last year Plan Actual Last year Plan

August 56,000 50000 101980 97800

September 120750 110000 89740 89400

October 155760 140000 53420 53200

November 166850 150000 64300 68600

December 182000 170000 56100 61800

January 151800 140000 5800 14000

Season total

Purchases

371340 384800

Sales

Actual Last year

Plan Actual Last year Plan Actual Last year Plan Actual Last year Plan Actual Last year

34500 35000 1695 1750 345 350 690 700 120750

51600 55000 1600 2750 510 550 1020 1100 155760

39100 40000 2060 2000 390 400 780 800 166850

45500 45000 2300 2250 450 450 900 900 182000

79900 85000 4000 4250 800 850 1600 1700 151800

45000 50000 11250 12500 450 500 900 1000 100000

295600 31000 22905 24500 2945 3100 5890 6200

Reductions Markdowns

Employee discounts

Shrinkage

EOM inventory

Plan
Actual Last year

110000

140000

150000

170000

140000

90000

Stock to sales ratio

3.5

3.0

4.3

4.0

1.9

2.2

Gross margin

Plan Actual Last year

Plan Actual

3.1
46.0 46.0

2.5
46.0 46.0

3.8
46.0 46.0

3.7
46.0 46.0

1.6
46.0 46.0

1.8
36.0 36.0 45.0 46.1

BOM = Planned sales for the month * stock sales ratio = 35000 * 3.1 = 108500 Stock sales ratio = BOM stock / months sales = 108500 / 35000 = 3.1 PLANNED REDUCTIONS 1. MERCHANDISE SHORTAGE: BOOK INVENTORY PHYSICAL INVENTORY For example: Net sales Rs. 1,50,000 Purchases Rs. 70,000 Opening inventory Rs. 1,60,000 Physical inventory Rs. 70,000 Then: Opening inventory + Rs. 1,60,000 Purchase at retail 70,000 Total handled 2,30,000 - Net sales 1,50,000 Book inventory 80,000

MERCHANDISE SHORTAGE = 80,000-70,000 = 10,000 EMPLOYEE DISCOUNTS Employee discount % = employee discounts for the month/ net sales Example: Net sales: 51600 Employee discount= 510 Employee discount= 510/51600 = 0.98%

MARKDOWN Markdown: Original retail price mark down price = 500- 400 = 100 Markdown %= net markdown/ net sales = 100/500 = 20%

PLANNED GROSS MARGIN = net sales- cost of goods sold = 5,549 1320 = 4229 PLANNED EXPENSE=overall expenses + expenses for store + estimated expenses for each department
PLANNED PURCHASE= Planned sales + planned reductions + planned EOM stock =total needs for the month BOM Planned stock, November 1 = 1,00,000 Planned sales, 1-30 November = 1,40,000 Planned mark downs, 1-30 November = 70,000 Planned EOM stock, November 30 = 1,20,000 Planned purchase = 1,40,000 + 70,000 + 1,20,000 = 3,30,000 1,00,000 = 2,30,000

THANK YOU