final project
FMM 340: Final Project Guidelines and Grading Guide
Overview The final project for this course is the creation of a retail merchandise management plan that includes three components. This project will require students to develop a comprehensive merchandise strategy, assortment and allocation plans, and a merchandise replenishment plan for a fictitious retailer created by the student. The final product represents an authentic demonstration of competency because students will replicate merchandising plans that are currently used by professionals in the retailing industry. The project is divided into 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 Four, Five, and Seven.
Outcomes To successfully complete this project, you will be expected to apply what you have learned in this course and should include several of the following course outcomes:
1. Demonstrate an understanding of the intricate relationship between retail positioning and merchandise management 2. Demonstrate an understanding of the supply chain management and inventory cost control (just-in-time delivery) 3. Demonstrate an understanding of the role that outsourcing plays in merchandise management
Main Elements 1. Merchandise Strategy
2. Merchandise Assortment and Allocation Plans
3. Merchandise Replenishment Plan
Format
Milestone One: Merchandise Strategy
In Task 4-2, you will submit the merchandise strategy for a fashion retailer of your own creation. This milestone will be graded using the Merchandise Strategy Rubric. Feedback should be applied to the final product.
Congratulations, you have just opened your very own fashion retail store and have been given the task of developing the retail merchandise management plan for the upcoming fall/winter season. To get started, you will develop a merchandise strategy for your store:
1. Provide an overview of your business and discuss your retail format and retail position/image.
2. Develop a customer profile for your store’s target market addressing the age, income, and lifestyle of your target customers.
3. Identify six merchandise categories (e.g., juniors’ outwear) that you believe your target customers are likely to buy from your store in the upcoming fall/winter season. Explain your choice.
4. Address the pricing strategy you plan to use. Provide a price range for the six merchandise categories you plan to offer in your store (e.g., juniors’ outwear, $39.99–$119.99). Explain how your pricing strategy will be supported by your retail format and retail position/image.
5. Discuss marketing strategies you plan to implement to promote the merchandise categories offered by your business.
All your answers should be written in paragraph form, using complete and concise sentences. Answers to all questions should be at least 10–12 sentences in length. Your strategy should be three pages in length.
Milestone Two: Merchandise Assortment and Allocation Plans
In Task 5-2, you will develop the merchandise assortment and allocation plans for your fashion business. This milestone will be graded using the Merchandise Assortment and Allocation Rubric. Feedback should be applied to the final product.
You must identify the six merchandise categories that you believe your target customers want and create a merchandise assortment appropriate for them by completing the model stock and allocation tables. All merchandise categories must be apparel. Do not choose shoes or accessories. Complete your retail model stock plan for the upcoming fall/winter season by completing a table like the one shown below.
NOTE: The current information in the table is provided as an example. Use it as a guide to create your own table.
Model Stock
Merchandise
Category
Merchandise Category Assortment
Vendor/Brand Colors Styles Sizes
Cosmetics
Lipstick L’Oreal
Nail polish Maybelline
Foundation Covergirl
Eye shadow Almay
Mascara Rimmel
Merchandise Allocation
Now that you have your model stock, you must determine the actual amount of each product you want to carry in your store. This is the process of merchandise allocation. Complete your retail merchandise allocation plan for the upcoming fall/winter season. Within each merchandise category, the assortment distribution must total 2,500, and every merchandise category listed in the table must be allocated a unit amount.
NOTE: The current information in the table is provided as an example. Use it as a guide to create your own table.
Merchandise
Category
Merchandise Category Assortment
# of Units
Merchandise
Category
Merchandise Category Assortment
# of Units
Cosmetics
Lipstick
Nail polish
Foundation
Eye shadow
Mascara
2,500 2,500
2,500 2,500
2,500 2,500
For each of your merchandise categories, indicate in the table how much merchandise you plan to place on the sales floor and how much you will place in a stockroom for each month during the fall/winter season. Remember that the total distribution across all six months for each merchandise category should total 2,500 units.
NOTE: The current information in the table is provided as an example. Use it as a guide to create your own table.
Merchandise Category
MONTH
Cosmetics
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
200 200 200 300 375 275
= 2,500
# of units in stockroom
150 100 150 200 300 50
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
= 2,500
# of units in stockroom
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
= 2,500
# of units in stockroom
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
= 2,500
# of units in stockroom
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
= 2,500
# of units in stockroom
AUG. SEPT. OCT. NOV. DEC. JAN. TOTAL
# of units on sales floor
= 2,500
# of units in stockroom
In a two-page summary, address the following:
Explain why you believe the merchandise assortment is suitable for your target market.
Explain why you believe the merchandise assortment will be successful in the upcoming fall/winter season.
Provide a justification for the monthly unit allocation for your merchandise categories.
Milestone Three: Merchandise Replenishment Plan
In Task 7-2, you will develop the merchandise replenishment plan for your fashion business. You will submit 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 Project Rubric.
You have been hard at work implementing the merchandise strategy of your business, and the general merchandise manager (GMM) is ready to review your merchandising plans for the upcoming season. However, there is one last component to be completed: the merchandise replenishment plan. This plan is very important because it assures management that all the great merchandise you have planned to offer will get to the store at the right time for customers to purchase.
Use the calendars provided to indicate the following:
1. First delivery for the season and the exact merchandise being delivered including merchandise category and number of units entered in the calendar on the delivery dates. Refer to your merchandise assortment plan from Milestone Two.
2. Indicate all subsequent deliveries you plan for the season including merchandise category and number of units entered in the calendar on the delivery dates. You must indicate at least four additional deliveries. Remember that the merchandise you are planning must be enough to last for six months, which means all of it cannot be delivered on the same day or in close proximity because you have to give customers an opportunity to purchase what is initially delivered at the beginning of the season.
NOTE: All deliveries are limited to any four months during the fall/winter season which runs from August 1 through January 31.
MONTH:
Sun Mon Tue Wed Thurs Fri Sat
1
2 3 4 5 6 7
8
9 10 11 12 13 14
15
16 17 18 19 20 21
22
23 24 25 26 27 28
29
30 31
MONTH:
Sun Mon Tue Wed Thurs Fri Sat
1
2 3 4 5 6 7
8
9 10 11 12 13 14
15
16 17 18 19 20 21
22
23 24 25 26 27 28
29
30 31
MONTH:
Sun Mon Tue Wed Thurs Fri Sat
1
2 3 4 5 6 7
8
9 10 11 12 13 14
15
16 17 18 19 20 21
22
23 24 25 26 27 28
29
30 31
MONTH:
Sun Mon Tue Wed Thurs Fri Sat
1
2 3 4 5 6 7
8
9 10 11 12 13 14
15
16 17 18 19 20 21
22
23 24 25 26 27 28
29
30 31
In a two-page summary, address the following questions:
1. Are you going to use traditional or quick response deliveries? Explain your choice. NOTE: Traditional delivery entails ordering at the beginning of the season with little to no reorders. Quick response delivery entails replenishing merchandise as needed on an on-going basis.
2. Do you plan to reorder any merchandise during the fall/winter season? Why or why not? If you do plan to reorder, indicate what merchandise categories and why.
3. Provide an explanation of the delivery plan you have created using the merchandise delivery calendars. Be sure to explain why you chose your delivery dates and the number of deliveries. Consider the holidays and events that occur during the fall/winter season that may have an impact on your target customers’ buying habits.
Final Project Rubric
Requirements of submission: Written components of projects must follow these formatting guidelines when applicable: double spacing, 12-point Times New Roman font, one-inch margins, and discipline-appropriate citations. Milestone One should be 3 pages in length. The summaries associated with Milestone Two and Milestone Three should be 2 pages in length.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Merchandise Strategy
Provides a comprehensive marketing strategy plan that includes a well-developed overview of the business, a detailed profile of the store’s target market, six merchandise categories clearly mapped to the target audience, and a pricing strategy supported by the retail format and retail position/image
Provides a marketing strategy plan that includes an overview of the business, a profile of the store’s target market, most of the six merchandise categories mapped to the target audience, and a pricing strategy mostly supported by the retail format and retail position/image
Provides a marketing strategy plan that somewhat includes an overview of the business and a profile of the store’s target market; six merchandise categories may or may not be mapped to the target audience and a pricing strategy is somewhat supported by the retail format and retail position/image
Provides a very limited marketing strategy plan that does not contain main elements and requirements
30
Merchandise Assortment and Allocation Plans
Provides a well-thought-out and appropriate merchandise assortment and allocation plan. Six merchandise categories are appropriately matched to the target customer; the model stock and allocation tables are well developed. Assortment distribution in the allocation plan totals 2,500, and merchandise categories have appropriate unit amounts
Provides an appropriate merchandise assortment and allocation plan. Six merchandise categories are appropriately matched to the target customer; the model stock and allocation tables are developed. Assortment distribution in the allocation plan totals 2,500, and merchandise categories have appropriate unit amounts
Provides a somewhat appropriate merchandise assortment and allocation plan. Six merchandise categories are matched to the target customer; the model stock and allocation tables are developed. Assortment distribution in the allocation plan totals 2,500, and merchandise categories have unit amounts
Provides a very limited assortment and allocation plan that does not contain main elements and requirements
30
Merchandise Replenishment Plan
Provides a comprehensive merchandise replenishment plan that ensures merchandise offered will get to the store at the appropriate time. Provides a detailed explanation of the delivery plan created using the merchandise delivery calendars
Provides a merchandise replenishment plan that assures merchandise offered will get to the store at the appropriate time. Provides an explanation of the delivery plan created using the merchandise delivery calendars
Provides a somewhat developed merchandise replenishment plan that may not show merchandise offered will get to the store at the appropriate time. Attempts to provide an explanation of the delivery plan created using the merchandise delivery calendars
Provides a very limited merchandise replenishment plan that does not contain main elements and requirements
30
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