Retail Product Management: Buying and Merchandising

by Varley; Rosemary

• ISBN13: 9780415327152
• ISBN10: 0415327156
• Edition: 2nd
• Format: Nonspecific Binding
• Copyright: 2006-02-14
• Publisher: Routledge

Summary

Introducing students to the product management process, this revised and updated second edition gives an insight into the operations and practices used by retailers to achieve their product strategy objectives. Blending theoretical approaches from a number of management perspectives, including marketing, purchasing and logistics, this text illustrates the breadth of knowledge needed for this complex managerial task. Including photos, figures, tables and conceptual diagrams, this book also examines the practical elements of product management. It incorporates significant new chapters and integrates discussions on the relationship between the product and its selling environment, and the overall retail brand.Building on the foundations of the highly successful first edition, this book uses a broad range of up-to-date case studies and practical examples from a variety of retail sectors to give a clear and concise introduction to retail product management.

Author Biography

Rosemary Varley is a senior lecturer within the Department of Management and Marketing at the Huddersfield University Business School

Table of Contents

List of figures	xiii
List of tables	xv
List of boxes	xvii
List of case studies	xix
Preface	xxi
Acknowledgements	xxiii
Introduction	xxv
Chapter map	xxviii
Part I UNDERSTANDING RETAIL PRODUCT MANAGEMENT	1	(64)
Introduction to Retail Product Management: Scope and Concepts	3	(18)
Introduction	3	(1)
Products	3	(1)
A product defined	4	(1)
Retail product sectors	4	(2)
The role of product management in retailing	6	(1)
The strategic role of product management	6	(2)
The strategic role of the product range	8	(1)
Retail positioning	9	(4)
Price positioning	13	(1)
The scope of retail product management	14	(1)
Retail product management: an evolving discipline	15	(2)
Summary	17	(2)
Questions	19	(1)
References and further reading	19	(2)
The Role of Retail Product Managers	21	(24)
Introduction	21	(1)
Retail buying organisations	21	(1)
The retail product management process: a traditional view	22	(2)
Complexity of buying tasks	24	(1)
Limitations of the traditional buying process models	25	(1)
Consumer--led approaches to retail product management	25	(3)
Centralised retail buying organisations	28	(2)
Decentralised buying	30	(1)
Buying organisation managerial roles	31	(3)
Additional buying decision--makers	34	(2)
Buying committees	36	(3)
Desirable attributes in retail product managers	39	(2)
Buying groups	41	(1)
Summary	41	(2)
Questions	43	(1)
References and further reading	43	(2)
Category Management	45	(20)
Introduction	45	(1)
Category management	46	(1)
Category management as a philosophy	46	(1)
Category champions	47	(1)
The category management process	47	(3)
Product category lifecycles	50	(2)
The role of the category within the retailer's total assortment	52	(1)
Establish the performance measures for the category	52	(1)
Formulate a strategy for the category	53	(1)
The category mix	53	(1)
Category management as an organisational concept	53	(1)
Category management and efficient consumer response (ECR)	54	(5)
Category management limitations	59	(1)
Summary	60	(2)
Questions	62	(1)
References and further reading	63	(2)
Part II THE RETAIL PRODUCT MANAGEMENT PROCESS: FROM CONCEPTION TO DELIVERY	65	(76)
Product Range Planning and Selection	67	(24)
Introduction	67	(1)
The product range	67	(2)
The assortment plan (model stock list)	69	(1)
Considerations for the assortment plan	70	(2)
Products and consumers	72	(1)
The influence of consumer trends on the retail offer	72	(3)
New product development	75	(1)
The product selection process	76	(1)
Product selection criteria	76	(5)
The product specification	81	(1)
Brand	82	(1)
Retailer branding	82	(2)
Concessions	84	(1)
Price/value as a product feature	85	(1)
Monitoring the product range	85	(1)
The product range review	85	(1)
Tracking product/market trends	86	(1)
Exercise: retailer branding	87	(1)
Summary	87	(2)
Questions	89	(1)
References and further reading	89	(2)
Managing the Supply Base	91	(19)
Introduction	91	(1)
Types of supplier	91	(3)
The supplier search	94	(3)
The choice of supplier	97	(2)
Supplier development	99	(1)
Supplier evaluation and monitoring	100	(1)
Retailer--supplier relationship development	101	(1)
The interaction approach	102	(2)
Stages of development in retailer--supplier relationships	104	(1)
Supply chain management	105	(2)
Summary	107	(1)
Questions	108	(1)
References and further reading	108	(2)
Product Quantity Decisions and Stock Management	110	(20)
Introduction	110	(1)
Stock management	110	(1)
Stock management for staple items	111	(1)
Stock management by periodic review	111	(1)
The economic order quantity (EOQ)	112	(3)
The need for stock investment	115	(1)
Stock management systems	115	(1)
Sales forecasting	116	(4)
The involvement of branch stores in determining quantities	120	(1)
Forecasting at distribution centre level	121	(1)
The merchandise budget plan	121	(4)
Summary	125	(1)
Exercise: forecasting the sales of a staple product	126	(1)
Questions	127	(1)
References and further reading	128	(2)
Managing the Response to Sales	130	(11)
Introduction	130	(1)
Response	130	(1)
Sales-based ordering (SBO)	131	(1)
Automatic replenishment	131	(1)
Efficient consumer response (ECR) and quick response	132	(1)
Supplier involvement in responsive replenishment systems	133	(1)
Collaborative planning forecasting and replenishment (CPFR)	133	(1)
Drawbacks of sales responsive replenishment systems	134	(1)
Supplier-managed inventory	135	(1)
Strategic response to sales	136	(1)
Summary	137	(1)
Questions	138	(1)
References and further reading	139	(2)
Part III THE RETAIL PRODUCT MANAGEMENT PROCESS: IMPLEMENTATION AND EVALUATION	141	(88)
Allocating Retail Space to Products	143	(20)
Introduction	143	(1)
Space management	143	(1)
The space management process	144	(1)
Stage 1: measuring retail space	144	(1)
Stage 2: dividing the space into selling areas	144	(3)
Stage 3: determining the layout and deciding on product adjacencies	147	(2)
Stage 4: allocating space to individual products	149	(4)
Practical and customer considerations	153	(2)
Space allocation systems	155	(1)
Space allocation and category management	156	(1)
Store grading	157	(1)
Trial and error	158	(1)
Summary	158	(1)
Exercise: Maltmans	159	(2)
Questions	161	(1)
References and further reading	161	(2)
Retail Design	163	(19)
Introduction	163	(1)
Outlet design	163	(1)
Formulating a store design	164	(1)
Materials	165	(1)
Atmospherics	166	(2)
Lighting	168	(1)
Signage	169	(1)
Store design and the corporate image	169	(1)
The exterior design	170	(3)
Location	173	(1)
Store image	173	(1)
The retail brand	174	(1)
Lifestyle retailing	174	(1)
Planning retail designs	174	(2)
Flagship stores	176	(2)
The strategic role of store design	178	(1)
Summary	179	(1)
Questions	180	(1)
References and further reading	180	(2)
Visual Merchandising	182	(17)
Introduction	182	(1)
The scope of visual merchandising	182	(1)
Visual merchandising planning systems	183	(1)
Responsibility for visual merchandising within the retail structure	184	(1)
Visual merchandising as a support for a positioning strategy	185	(1)
Fixtures and fittings	185	(3)
Product presentation	188	(1)
Store layout	189	(2)
Displays	191	(5)
Window displays	196	(1)
Visual merchandising in non-store retailing	197	(1)
Summary	197	(1)
Questions	197	(1)
References and further reading	198	(1)
Communicating the Product Offer	199	(16)
Introduction	199	(1)
Retailer to customer communications	200	(1)
Retail communication channels	201	(1)
Advertising	201	(2)
Product specific promotional communications	203	(1)
Promotional product planning	204	(1)
Strategic product communications	205	(1)
Publicity	206	(1)
Personal communications	207	(1)
Communications through packaging	208	(1)
Integrating product related communications	209	(1)
Internal communications	209	(1)
Retailer-supplier related issues	210	(2)
Co-operative promotional campaigns	212	(1)
Evaluation of product related communications	212	(1)
Summary	212	(1)
Questions	213	(1)
References and further reading	213	(2)
Evaluating Retail Product Management Performance	215	(14)
Introduction	215	(1)
Product profit	215	(1)
Sales	216	(1)
Profitability	216	(3)
The impact of markdowns	219	(1)
Productivity	219	(1)
Shrinkage	219	(1)
Cost reduction	220	(1)
Negotiation	221	(1)
Availability	222	(1)
Qualitative performance measures	222	(3)
Blending quantitative and qualitative measures	225	(1)
Summary	225	(1)
Exercise: markdown analysis	225	(1)
Questions	226	(1)
References and further reading	227	(2)
Part IV RETAIL PRODUCT MANAGEMENT APPLICATIONS	229	(31)
Product Management in Non-Store Retailing	231	(19)
Introduction	231	(1)
Non-store retail formats	232	(1)
Home shopping	232	(1)
Product management implications	233	(1)
Product presentation	233	(1)
Product assortment	234	(1)
The selling environment	235	(1)
Pricing	235	(1)
Service	236	(2)
Convenience	238	(1)
Order fulfilment and delivery	238	(3)
Multi-channel retailing	241	(1)
Cross-shopping	242	(1)
Transfer of positive and negative image	242	(1)
Cost allocation	243	(1)
Sales cannibalisation	243	(1)
Marketing	243	(1)
Summary	244	(4)
Questions	248	(1)
References and further reading	248	(2)
International Retail Product Management	250	(10)
Introduction	250	(1)
International retailing as a strategy	250	(1)
Product range: standardise or adapt?	251	(1)
The influences on different product strategies	252	(1)
Unavoidable adaptations	252	(1)
Organisation for product management	252	(2)
Local sourcing	254	(1)
Global sourcing	254	(2)
Ethical sourcing	256	(1)
Summary	257	(1)
Questions	258	(1)
References and further reading	259	(1)
Index	260