Fashion Merchandising and Trading, and assignment will need excel sheets.
Anoushka10
Week1WC24thSeptemberLectureandSeminar-20190120.zipWeek 1 Lecture.pptx
BA Hons Fashion Buying & Merchandising
Merchandising Planning & Trading WEEK 1
Tuesday 25th September 2018
Teaching Team
Lois Baile, Katie de Ley, Jonathan Baker, Holly Wadsworth
Turn off mobile phones
Do not be late or you will not be allowed in
No eating/drinking – water only is allowed
Show respect for each other
MTP – Week 1
The Unit Handbook is your course schedule:
A VERY IMPORTANT DOCUMENT!
Aims of the unit
Learning outcomes
Assessment criteria
Work to be handed in
Lecture/tutorial program
Recommended texts and resources
The UHB
The aim of this unit is to highlight the issues around robust planning and in-season trading in a fast-moving industry.
You will be introduced to Visual Merchandising Best Practise and will need to consider space constraints as part of the range building process.
You will become solution focused developing your analytical skills and responding to trading situations
The unit ensures that students gain the confidence to actively take part in industry meetings upon employment having an insight to business challenges and priorities.
The unit will investigate the ways in which buyers and merchandisers can use different approaches to trading in order to optimise profit through a variety of strategies, underpinned by key academic theories
Laptops Needed
We will be using laptops most weeks – so always bring to class - and have access to all your work/files to date in each lecture/seminar.
Please make sure you can access all your files remotely.
5
Lecture Topics by Week
Intro to Unit – Recap
Planning Process
Sales and Space Planning
VM – Surveying the Space
VM – What is Visual Merchandising?
Activities Week
VM Drawing the Plan of Space.
VM Fixtures, Props and Lighting
Trading for Success
Changes to the Retail Landscape – Formative Assessment
Numeracy/Excel Sessions
Numeracy/Excel Sessions
Tutorials
Seminars – Guidance for Submission
What do you know? – www.menti.com
Reflect on teaching content from Last Year!
Code 20 36 05
7
Report Writing
Research Gathering
Information resources
The Buying Cycle
B&M KPIs
B&M team – roles and responsibilities
Teamwork
Brainstorming Ideas
Customer Profiling
Trends and Influences
Product Lifecycles
Product development timelines
Macro Enviroment - PESTEL
Excel Skills
Percentages
Margin Calculation
Variances
WSSI Construction
Range Plan Construction
Competitive Shopping
Trading patterns – Sales phasing
Omni Channel
Sell through Rates
Cover
Diffusion of Innovations
Pricing Architecture
SWOT Analysis
Brand Positioning Matrix
Fabrications
Risk Analysis – Fashion Pyramid
OTB Definition
Market Analysis
SIZING - varies from a size 34 to a 44, (UK 6 to a 16).
FABRIC – Being proud of the materials they use, the material is usually used in its name
EXAMPLE ‘Wool Cocoon Coat’ which is 100% wool.
‘Scuba jacket’ which is 100% Scuba.
Even for those that don’t, most coats have 100% of one material or a majority percentage of one.
PRICE – The prices range from £69 to £225. Averaging at £135. Which is much cheaper than its competitors
Cocoon Coat
Belted Coat
Kimono Coat
Round-Neck A-Line Coat
Car Coat
Single Breasted Coat
| Chart of Prices | |||
| Under £100 | £100-£150 | £151 to £200 | Over £200 |
| 3 | 12 | 7 | 3 |
Taken by me in Spitalfields COS
COS Store image taken from Pintrest
All picture (unless stated) are from cosstores.com as well as any information.
POPULAR STYLES – Classic styles, mostly long with belts and button details.
POPULAR COLOURS - Black, Grey, Navy & Earthy colours.
TRENDS (styles) - Scuba jacket and puffer coats are all examples of trend based styles.
TRENDS (colours) – Few coats had brighter colours, such as Pink, Green and Mustard Yellow.
Created in 2007 and part of the H&M group
It is a world wide fashion brand for men and women.
They create a “modern, functional and considered design” offering classic wardrobe essentials which is made to last beyond the season
ABOUT COS
-
11
Competitors
Whistles
Jigsaw
& Other Stories
Reiss
Massimo Dutti
Strengths
Designed with the modern day consumer in mind
Functional, quality, stylish, tactile, timeless, using fabrics designs
Interior (high-end feeling)
Clear website
All managing in-house (packaging, garments, store interior, online and print collateral all making for a clear seamless brand image)
Weakness
Unfriendly website
Price
Promotion and discounts not offered except seasonal sale
Lack of advertising
Weak store accessibility
Opportunity
Develop website
Celebrity endorsement
E-commerce(application) or ‘like to buy’ through SNS
Threat
Online shopping platform
Opt for cheaper, more affordable options
Becoming worldwide
S.W.O.T Analysis
Their key message to their customer
The social groups of their main customers
Their product types and mixes of product
Their price range and how it is applied to their product mix (entry, mid, exit price points)
On which product groups they have made high investment in terms of option count and depth of stock
How they interpret fashion and their main fashion statements
What is their point of difference or unique selling points
Their innovation and developments
What can you expect to learn about your competitor?
FLIPCHART
Read the slide and discuss any comments
14
The Task
The UHB
In this unit you will be operating as a Junior Merchandiser.
You will plan and trade a department and demonstrate that your range fulfils customer choice and balance across 2 sizes of store space
You have been asked to maximise your product offer ensuring your department delivers the key objectives of sales and profitability
From this analysis you will need to make recommendations to maximise the performance of the department through the use of in-season OTB through reforecasting of WSSI, promotions (promotional calendar), and range selection.
You will be expected to show great commercial awareness, optimise trading opportunities, and analyse category, colour price, story, best and worst sellers and core lines, as well as having a thorough understanding of the brand and the relevant trends/products and competitive offer for the core customer.
The Report
Individual 2500 word report
plus accompanying data and visual images.
SUMMATIVE ASSESSMENT SUBMISSION DETAILS
Date: 24th January 2019
Time by 12:30pm (UK time)
Location Submission online via Turnitin, located in the Merchandise Planning and Trading unit area on your course Moodle site.
You should upload your report to Turnitin Part 1.
You should upload your WSSI & Excel spreadsheets to Turnitin Part 2.
Accommodated Assessment deadline if your ISA includes additional time
Date: 7th February 2019
Time by 12.30pm (UK time)
The Report
Your individual report should contain the following elements:
SUMMATIVE ASSESSMENT
An individual report with appropriate appendices and supporting visual material (2,500 words) (100%)
2500 word report, plus accompanying data and visual images.
You have been tasked to present a report of your planning proposal and trading initiatives to the senior B&M team. You will be allocated a Brand/Product Category/Customer Profile for your report in week 1.
In your report you will need to show evidence of your ability to research, analyse and evaluate the performance of your allocated product category, looking in detail at sales opportunity within your trading space and demonstrating your financial acumen.
From this analysis you will need to make recommendations to maximise the performance of the department through the use of in-season OTB through reforecasting of WSSI, promotions (promotional calendar), and range selection.
You will be expected to show great commercial awareness, optimise trading opportunities, and analyse category, colour, price,,best and worst sellers and core lines aligned to your brand of choice and the relevant trends/products and competitive offer for the core customer.
The Report (cont)
Your individual report should contain the following elements to satisfy the Buying and Merchandising requirements
A summary of your market opportunity to include the rationale behind your range selection including trend influences and competitor activity for your chosen high street brand (500 words)
Identification of a minimum of four key KPIs (Key Performance Indicators) used by a product merchandiser to effectively plan an ‘in store’ product range. Explain the business relevance of these KPIs using worked examples (250 - 500 words)
Identification of the four key KPIs (Key Performance Indicators) used by a product merchandiser to monitor performance on a weekly basis. Explain how these KPIs are calculated using worked examples and demonstrate the potential impact to the product category and departmental sales revenue. (250-500 words)
Analyse trade within given scenarios to identify the opportunities and risk within the current trading performance. Use data mining sources (EDITED) as well as your commercial awareness to make effective tactical decisions on price, cut, colour, size and fashionability. (750-1000 words)
The Report (cont)
Re-forecast the WSSI as guided in class to identify the in season OTB.
Please note the WSSI should also be submitted as a separate Excel document, to Part 2 of the Turnitin submission.
Use your OTB to fill the gaps in the range to create a positive trading performance for the remainder of the season. (500 words)
Your individual report should contain the following elements to satisfy the Visual Merchandising Requirements
Space and Zone plans of selected spaces
Visual Audit of existing brand concept
Identification and application of fixtures
Mood Board of concept
All of your decision making must be thoroughly underpinned by research to make sure that your planning is viable.
All of your decision making must be thoroughly underpinned by research to make sure that your planning is viable.
Learning Outcomes & Marking Criteria
Analysis of the financial aspects of merchandise planning such as forecasting, initial sales plans, intake plans, allocation and stock control using your Excel skills (analysis, subject knowledge, experimentation, technical competence, collaborative and/or independent professional working);
Apply knowledge of retail space management and brand communication to communicate your ideas using your visual creative skills (experimentation, technical competence, research, subject knowledge, communication and presentation);
An understanding of the factors that may affect the profitability and the success of the in- store assortments. (experimentation, research, analysis, subject knowledge, communication and presentation).
Analysis of weekly sales performance reports and the implications of trading decisions to optimise profit by the application of innovative, agile, creative and consumer-centric approaches to contemporary trading. (experimentation, research, analysis, subject knowledge, technical competence).
This unit is designed to build your planning and trading skills and knowledge.
Formulate your Department Proposition
ACTION PLAN
Brand – TOPSHOP
Department – Outerwear
Research Outerwear Market – SWOT
Plan Product Categories Relevant to Key Customer
Plan Product Categories Relevant to Trends and Decide on Financial Structure
Plan the instore presentation – What store size gets which product?
Recognise a trading situation – React with solutions
Create an OTB proposal to deliver business objectives
Reforecast and submit a WSSI and Category BTA sheet
(Balance to Achieve)
Any Questions?
BA Hons Fashion Buying & Merchandising
Merchandising Planning & Trading
Right Product, Right Price, Right Location, Right Time! Planning Principles?
Sales Opportunity
Customer
Trends
Price
Space Constraint
Option Control
Product Lifecycle
Timing
Strategic Marketing and Promotions
Brand Integrity
Potentialising profit
Maximising sales
Limiting risk
Protecting Margins
Reducing Costs
Planning
The Buying & Merchandising Cycle
29
Planning stage moves to Trading
Plan
Can you think of any issues of concern in the planning to trading process?
31
Issues with the process?
Can you think of any issues of concern in the planning to trading process?
Length of time
“…expectation of a perfect matching of supply and demand within product management is unrealistic”
James Clark, Fashion Merchandising
In reality, there are too many variables at play, out of B&M control.
To overcome these variables B&M maximise potential outcomes by TRADING.
Trading
50% of being a good B&M team is booking the right stock, the other 50% is making the best out of what you have booked!
Cannot just ‘book and hope’ - you have to be proactive in managing the situation.
Planning vs Trading
Planning is “precise”, “shaping” the range – best guess for what your customer will want to buy in the future.
Trading is “quick”, “reactive”, “exciting” – constantly tweaking, amending and reshaping your commitment.
Trading Meeting
The Trading Meeting is used in B&M:
To monitor the company performance against the plan/forecast/year/last week
To assess the individual departments performance
To identify best and worst performing lines
To identify key trends
To take any required action
To gain approval for decisions/action
)
What tools do you need for successful trading?
Customer understanding
Market understanding
Fast and accurate reporting and data
Excellent analytical skills
Speed to react quickly
Short lead times
Confidence
Teamwork
Good trading requires COMMERCIAL ACUMEN,
INSPIRATION, and SPEED!
How do B&M know if Trade is good?
Measure of performance
KPI evaluation
What do we look at?
Standard and AD hoc reports
Performance Check List - KPIs
Sales – units and value
Profit
Variance
ROS
Cover
Margin
Sell through
Total growth
Average price variances
Sales Density
Lift on the week
Styling detail
Size performance
Colour perf
Fabric perf
Sleeve length
Promotion success
Marketing success
Days on sale
Store cluster performance
Store performance
Gross margin return on investment
38
What Reports are Reviewed ?
Weekly Trading Report
Department
Category
Line report
Best Seller Reports
Top 10’s – RoS, cover, sales
Store reports
Warehouse reports
Achieved Budget Report
Delayed Product Report
Comparative Shops
Other considerations?
Store Visits
Review Pricing vs competitors
Review Quality
Presentation width and depth of offer
Timing
Suitability for the target Customer
Competitor Activity
Area Manager/Store Manager view
Benchmark Pricing Chart vs competition
| Sweat Pants |
| Leggings |
| Athletes |
| Polo Shirt |
| T shirts |
| Sweatshirt |
| Cardigan |
| Pullover |
| Lightweigt |
| PU |
Defacto
LCW
Koton
H&M
Zara
Trading Actions
Positive Trading Actions
direct repeats
repeats with amendments
price ups
extending the ranging
pulling forward intake
amending future commitment to support colour/trend/shape
trial and test updates for the future
What do we do – revise sales upwards!
Use WSSI to inform the business
Net effect of increased sales?? Create OTB – increased spend
Careful to identify within time frame
Negative Trading Actions
Analyse current stock and stores
Review Future Commitment
cancellation
re-colour
re-style
delay
hold
Markdown
permanent
POS
complex solutions ‘ 3 for 2, BOGOFF, Buy one get 2nd half price
Repricing down
white ticket
Why trading is crucial….
Critical to drive sales, increase profit, reduce excess stock
Left with the liability of terminal stock – Old stock into the next season
Markdown Strategy is imperative
Control of new season deliveries essential
NB - Some business models have Outlets to sell old product through at a discount. Some have an emerging International Market prepared to take ‘older season product as new’.
Remember Right Stock, Right Place, Right Time
Trading Meeting
After all the planning, product selection and buying, when the trading period actually begins, the main focus will be on the question:
‘How are we doing?’
How can we improve further?
Category Management - Product Hierarchy
46
Division
Department
Category
Sub Category
Product Type
Style
In it’s simplest form at line level e.g. £15 white tshirt, but more complex at department with 3 seasons
47
Womenswear
Dresses
Blouses & Shirts
Knitwear & Jersey Tops
Trousers & Skirts
Jackets & Outerwear
Nightwear & Loungewear
Dressing Gowns
PJ’s
Nightdress
Slippers
Sets
Mix & Match
Cute Sets
Checks & Stripes
Owl Set
Bear Set
ACTION PLAN
Brand – TOPSHOP
Department – Outerwear
Research Outerwear Market – SWOT
Plan Product Categories Relevant to Key Customer
Plan Product Categories Relevant to Trends and Decide on Financial Structure
Plan the instore presentation – What store size gets which product?
Recognise a trading situation – React with solutions
Create an OTB proposal to deliver business objectives
Reforecast and submit a WSSI and Category BTA sheet
(Balance to Achieve)
Today’s Seminar Agenda
Seminar
Unpacking the brief – any questions?
Task
Category Proposals for outerwear
Using Excel skills to produce grid matrix across 6 months to demonstrate sales performance by category
CORPORATE STRATEGYINSPIRATIONALBUYINGTRIPSRaw MaterialsMakePre-RetailPackTRANSPORTSELLMARKDOWNSEASON STARTShare PriceADVERTISE/PROMOTEAnalysePLANNING & ANALYSINGRAISEORDERSDESPATCH/STORAGEDISTRIBUTION CENTRESupplierTRADE FAIRS / FASHION SHOWS RANGE REVIEWSMONITORSUPPLIERSDISTRIBUTIONBRICKS & MORTARSeason EndREPLENISHAnalyseVISUAL MERCHANDISINGCOMPARATIVE SHOPPINGSET DEPARTMENT STRATEGYTREND FORECASTINGPLANNING THE RANGEApprove colours, fabric, trims, fitNegotiate price & deliveryTRADINGAnalyse?GARMENT SOURCING
CORPORATE
STRATEGY
INSPIRATIONAL
BUYING
TRIPS
Make
Pre-Retail
Pack
TRANSPORT
SELL
MARKDOWN
SEASON START
Share Price
ADVERTISE/
PROMOTE
Analyse
PLANNING & ANALYSING
RAISE
ORDERS
DESPATCH/STORAGE
DISTRIBUTION CENTRE
TRADE FAIRS /
FASHION SHOWS
RANGE REVIEWS
MONITOR
SUPPLIERS
DISTRIBUTION
BRICKS & MORTAR
Season End
REPLENISH
Analyse
VISUAL MERCHANDISING
COMPARATIVE SHOPPING
TREND FORECASTING
Approve colours, fabric, trims, fit
Negotiate price & delivery
TRADING
Analyse
?
GARMENT SOURCING
Raw Materials
Supplier
SET DEPARTMENT STRATEGY
PLANNING THE RANGE
CORPORATE
STRATEGY
INSPIRATIONAL
BUYING
TRIPS
Make
Pre-Retail
Pack
TRANSPORT
SELL
MARKDOWN
SEASON START
Share Price
ADVERTISE/
PROMOTE
Analyse
PLANNING & ANALYSING
RAISE
ORDERS
DESPATCH/STORAGE
DISTRIBUTION CENTRE
TRADE FAIRS /
FASHION SHOWS
RANGE REVIEWS
MONITOR
SUPPLIERS
DISTRIBUTION
BRICKS & MORTAR
Season End
REPLENISH
Analyse
VISUAL MERCHANDISING
COMPARATIVE SHOPPING
TREND FORECASTING
Approve colours, fabric, trims, fit
Negotiate price & delivery
TRADING
Analyse
?
GARMENT SOURCING
Raw Materials
Supplier
SET DEPARTMENT STRATEGY
PLANNING THE RANGE
Week 1 Seminar.pptx
BA Hons Fashion Buying & Merchandising
Merchandising Planning & Trading WEEK 1
Tuesday 25th September 2018
Seminar
Build a Category Profile
How ?
Research
Decide on the relativity of each category
How ?
Research
Decide on the relativity of each category
How ?
Research
Decide on product phasing from Sept to Feb 6 month Trading
What does the profile of category performance look like – the sales phasing?
Decide on strength of performance across time ?
Build a Category Phasing sheet to reflect your decisions using Excel
| Sept | % | Oct | % | Nov | % | Dec | % | Jan | % | Feb | % | Total | % | ||
| Cat 1 | 20 | 23.5% | 15 | 17.6% | 20 | 23.5% | 15 | 17.6% | 10 | 11.8% | 5 | 5.9% | 85 | 100.0% | |
| Raincoat | 16.0% | 11.1% | 11.4% | 8.0% | 8.3% | 10.6% | 10.8% | ||||||||
| Cat 2 | 60 | 30.9% | 60 | 30.9% | 35 | 18.0% | 22 | 11.3% | 15 | 7.7% | 2 | 1.0% | 194 | 100.0% | |
| Puffa | 48.0% | 44.4% | 20.0% | 11.8% | 12.5% | 4.3% | 24.6% | ||||||||
| Cat 3 | 40 | 13.6% | 45 | 15.3% | 70 | 23.7% | 60 | 20.3% | 50 | 16.9% | 30 | 10.2% | 295 | 100.0% | |
| Parka | 32.0% | 33.3% | 40.0% | 32.1% | 41.7% | 63.8% | 37.4% | ||||||||
| Cat 4 | 5 | 2.3% | 15 | 7.0% | 50 | 23.3% | 90 | 41.9% | 45 | 20.9% | 10 | 4.7% | 215 | 100.0% | |
| Woollen | 4.0% | 11.1% | 28.6% | 48.1% | 37.5% | 21.3% | 27.2% | ||||||||
| Cat 5 | 0 | #DIV/0! | 0 | #DIV/0! | #DIV/0! | 0 | #DIV/0! | #DIV/0! | #DIV/0! | 0 | #DIV/0! | ||||
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||||
| Cat 6 | 0 | #DIV/0! | 0 | #DIV/0! | #DIV/0! | #DIV/0! | 0 | #DIV/0! | #DIV/0! | 0 | #DIV/0! | ||||
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||||
| Cat 7 | 0 | #DIV/0! | #DIV/0! | 0 | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | 0 | #DIV/0! | |||||
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||||
| Cat 8 | 0 | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | 0 | #DIV/0! | #DIV/0! | 0 | #DIV/0! | |||||
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |||||||||
| TOTAL | 125 | 15.8% | 135 | 17.1% | 175 | 22.2% | 187 | 23.7% | 120 | 15.2% | 47 | 6.0% | 789 | 100.0% | |
| 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
