Merchandise Management Chapter 9

Zara focuses on producing fashionable clothes quickly and in limited quantities.

Zara produces clothes quickly to match current trends.

Zara produces less of each style to create a sense of scarcity.

Zara produces many different styles / designs per year. This allows them to offer choices.

Zara strategically displays new styles every few weeks.

Zara tries to understand and satisfy customer needs and desires.

Zara's limited production creates a sense of exclusive items. This increases perceived desirability.

Zara aims to meet customer needs and wants in fashion.

Zara manages thousands of fabric, trim, and design specifications, along with their physical inventory, to design garments with available raw materials.

Zara's automated distribution system uses machines to sort and deliver over 60,000 items per hour with minimal labor.

Retailers choose products to carry based on target market needs, pricing, and company image.

Attractive & functional goods are crucial for sales, determined by customer needs and trends.

Offering products at prices that deliver value to customers while maintaining retailer profitability.

Matching inventory with customer demand through careful balancing to avoid overstocking

Having products available when customers want to buy them

Choosing locations that attract customers and make products easily accessible, including in-store and online

Zara's supply chain enables rapid production, design, and delivery of new garments, allowing for frequent restocking of popular items.

Zara uses RFID to track garment locations in real-time, allowing for rapid identification and stocking of high-demand items.

Zara collects daily trend data that inform design decisions and product modification.

Zara's supply chain ships new products to stores twice weekly, delivering items within 48 hours in many cases.

Zara utilizes standardized product information within its warehouses, ensuring consistent production instructions.

Zara gathers trend information daily, enabling rapid design adjustments and production.

Zara minimizes the need for physical warehouses by focusing on rapid delivery of new items directly to stores.

Zara designers launch around 12,000 new designs annually, ensuring fresh product offerings which can be shipped in days.

Communicating a product's appeal to the right customer is crucial for its success.

The 6 Rs (right product, right price, right place, right time, right quantity, right customer) are essential for successful merchandise management.

Analyzing the target market to understand customer needs and preferences is a crucial step in merchandise management.

Buyers plan merchandise purchases well in advance, considering trends and buying patterns.

Retailers must purchase merchandise that aligns with their target market's needs.

Ensuring the logistics of getting merchandise to its destination in good condition is essential.

Managing the budget and ensuring profitable use of resources is key.

A guiding principle for the merchandise team, outlining the target market, needs, desires, and strategies for product positioning, image, pricing, and competition.

The variety of products offered by a retailer, including its width (number of product lines) and depth (choices within each product line).

The number of different product lines offered by a retailer, also known as the breadth of the merchandise. It's like the different sections within a shop.

The number of choices offered within a specific product line. It's the depth or how much variety is within each section. A store can have a wide variety but a shallow assortment.

A unique identifier for each individual item in a store's inventory. It's like a detailed description that makes one item different from another even within the same product line.

A broader grouping of products that share similar characteristics or functions. It can be used to organize a store's merchandise.

A retailer offers a large number of different product lines (breadth).

A retailer offers a large number of choices within each specific product line.

A retailer offers a limited number of choices within each specific product line.

A group of related products that either substitute or complement each other, offering various options for customers. Retailers often define their assortment by the number of categories they carry.

Products that consumers are familiar with and purchase without much effort. They are typically everyday items that people need regularly.

Products purchased on a whim or spontaneously, often triggered by a sudden urge.

Products that customers actively research and compare before purchasing. They involve more thought and comparison.

Brands widely recognized and marketed by manufacturers. They are often associated with quality and familiarity.

Brands owned and marketed by retailers. They are often priced lower than national brands and represent the retailer's own product line.

Products without brand names, focused on affordability and basic functionality.

Nationally recognized brands contribute to a store's image, offer reduced promotional costs for retailers, and can attract more customers due to brand familiarity.