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MERCHANDISE MANAGEMENT EXAM CONCEPT MAP - BAILEY MCERVALE S3529902 (Are…

- - - - WK11_RCO3 Balance, Cohesion and synchronisation : Balance
        ● Need to ensure range suits retailers desired image, as well as target customers needs
        ● Balance must be achieved in product classifications, pricing structure, and size range offered
        ● Balance between risky, trend items, and more commercial basics
        Cohesion
        ● Range should be cohesive and tell a story
        ● Enough options to suit customer preferences without losing site of key theme
        ● Utilise similar prints, colours, fabrics etc, allow customers to create outfits
        Synchronisation
        ● Use synchronisation to ensure range is cohesive and balanced throughout season
        ● Styles may be phased in over time to ensure continued interest in the range
      - WK11_RCO5 Inventory Management: ● Inventory management is the process of controlling, ordering and storing goods
        ● Mismanaged inventories can create financial problems resulting in oversupply or shortage
        ● Two common inventory methods: JIT method and MRP method
        ● Average inventory cycle calculation: replenishment period times demand divide 2
- - - - Financials: budget has been set to $450,000, how is that to be allocated: start-up costs, living costs, sales forecasting, break-even point, ROI (return on investment, technical costs (manufacturing)
    - - -R&D: before even starting to think of the product, research must be conducted on consumer demographics and behaviours to find out if there is even a market for the product
      - USP's: what makes your brand different?
      - Are there any barriers to entry?
        
        Risks: changes in the market, financial, management