MD Sharings - AEON Merchandising Presentation PDF

“If you want something you never had, you have to do something you’ve never done.” Thomas Jefferson  NO longer NO longer access A choice & a skill memorization to information 4  Situational...

“If you want something you never had, you have to do something you’ve never done.” Thomas Jefferson  NO longer NO longer access A choice & a skill memorization to information 4  Situational awareness Filtering information Troubleshooting Clarity of goals Good taste Empathy and compassion for others The ability to make decisions that further your goals 5 9 Hãy nói 1 câu cảm nhận về ngành nghề của bạn! Your feeling about retail industry & retail job?  ABC ANALYSIS Phân tích ABC là 1 trong các công cụ để đánh giá hiệu quả kinh doanh hàng hóa. Giá trị mang lại: + Nhận biết nhóm sp luôn phải đảm bảo stock, nhóm sp thỉnh thoảng có thể thiếu stock; nhóm sp nên loại khỏi tồn kho. + Có thể phân tích ABC từ cấp độ nhỏ nhất sku tới cấp độ lớn hơn category, dept. Ngoài ra còn có phân tích Sell-through ratio (tỉ lệ hàng bán ra đến khách hàng) Giá trị mang lại: + Đánh giá hiệu quả KD của sản phẩm: sản phẩm nào bán chạy, sản phẩm nào bán kém. + Là cơ sở để đánh giá sản phẩm nào nên giảm giá, sản phẩm nào nên trả lại nhà sản xuất, hoặc có nên repeat order mã sản phẩm nào đó.  ABC ANALYSIS Hình minh họa tỉ lệ nhóm sp A:B:C ~ 70% : 90% : 100% doanh số tích lũy  ABC ANALYSIS Hình minh họa tỉ lệ nhóm sp A:B:C ~ 70% : 95% : 100% doanh số tích lũy  ABC ANALYSIS A B C Z Hình minh họa tỉ lệ nhóm sp A:B:C ~ 75% : 95% : 100% doanh số tích lũy 14  ABC ANALYSIS Pareto curve Based on ratio of related parameters Y axis: Sales X axis: GP, Facings (display quantity), no. of skus Hình minh họa tỉ trọng doanh số & tỉ trọng trưng bày của nhóm sp ABC ANALYSIS ABC ANALYSIS ABC ANALYSIS  Q&A Adjustment display qty 23.3% → 15.4% Adjustment display qty Does adjustment of display quantity have empirical application? 25pcs → 38pcs  ABC ANALYSIS – BY CATEGORY GROWING GROWING UP CATEGORIES UP CATEGORIES VS. 2019 FULL SCALE WORSE CATEGORIES WORSE CATEGORIES 779,580 16,678,308,392 820,938 15,663,216,327 95.0% 106.5% 3,429,310,847 Y20 Y19 RANK Y20 JAN~OCT Y19 JAN~OCT Y20 VS. Y19 FULL SCALE SALES SALES CHANGE RANKING RANKING GP AMOUNT SALES RATESALES COMP ACCUMULATE GP RATIO COMP GP ACCUMULATE SALES ABCZ GP ABCZ ABCZ SUM Department Department Description Category Category Description SALES QTY SALES AMT SALES QTY SALES AMT SALES QTY SALES AMT 3037 SCHOOL 303705 ART & CRAFTS 59,172 1,687,294,044 68,332 1,884,564,985 10.12% 90% 1 1 0 315,772,932 10.12% 10.12% 9.21% 19.58% A A AA 3037 SCHOOL 303709 SCHOOL TOOLS 77,680 1,412,681,574 62,214 869,075,933 8.47% 163% 2 6 4 271,384,904 8.47% 18.59% 7.91% 36.10% A A AA 3038 FANCY 303801 STATIONERY GOODS 48,472 1,251,083,688 30,153 498,254,314 7.50% 251% 3 13 10 295,300,609 7.50% 26.09% 8.61% 28.19% A A AA 5332 HOME (C ) 533204 TAN VIET 33,865 1,185,410,604 25,564 558,694,754 7.11% 212% 4 8 4 355,623,181 7.11% 33.20% 10.37% 10.37% A A AA 5332 HOME (C ) 533203 PHAN THI 45,439 1,135,093,042 67,772 1,531,328,536 6.81% 74% 5 2 -3 227,018,608 6.81% 40.00% 6.62% 42.72% A A AA 3038 FANCY 303803 BAG & CASE ACCESSORIES 25,202 1,100,244,755 42,460 1,384,443,102 6.60% 79% 6 3 -3 190,442,776 6.60% 46.60% 5.55% 54.59% A A AA 3039 HOME 303901 WRAPPER & GREETING CARD 125,611 1,096,816,742 137,112 1,169,505,366 6.58% 94% 7 4 -3 216,506,026 6.58% 53.17% 6.31% 49.04% A A AA 3038 FANCY 303802 FANCY GIFT 28,470 1,091,663,471 51,393 1,117,039,259 6.55% 98% 8 5 -3 186,348,425 6.55% 59.72% 5.43% 60.02% A A AA 3037 SCHOOL 303701 PEN 53,918 863,427,816 48,647 796,056,531 5.18% 108% 9 7 -2 136,298,060 5.18% 64.90% 3.97% 64.00% A A AA 3037 SCHOOL 303706 NOTEBOOK / NOTEPAD 61,114 676,294,811 56,446 538,688,827 4.05% 126% 10 11 1 135,493,467 4.05% 68.95% 3.95% 67.95% A A AA 3036 OFFICE 303604 FILE & FILE ACCESSORIES 26,940 458,453,879 38,972 551,952,780 2.75% 83% 11 9 -2 83,372,473 2.75% 71.70% 2.43% 73.50% B B BB 5330 FANCY (C ) 533102 KINGJIM 6,379 411,572,963 7,085 538,775,574 2.47% 76% 12 10 -2 107,008,970 2.47% 74.17% 3.12% 71.07% B B BB 3036 OFFICE 303609 ORGANIZER / PLANNER 16,923 358,676,631 21,831 425,651,024 2.15% 84% 13 14 1 57,140,420 2.15% 76.32% 1.67% 82.16% B B BB 3036 OFFICE 303610 OFFICE TOOLS 18,565 340,491,100 22,662 399,925,796 2.04% 85% 14 16 2 51,224,224 2.04% 78.36% 1.49% 86.79% B B BB 5332 HOME (C ) 533216 TOAN CAU ALPHA 9,215 297,198,193 106 3,178,177 1.78% 9351% 15 40 25 83,215,494 1.78% 80.14% 2.43% 75.93% B B BB 3037 SCHOOL 303702 PENCIL 26,905 295,876,423 24,485 326,287,402 1.77% 91% 16 17 1 52,635,848 1.77% 81.92% 1.53% 85.30% B B BB 5330 SCHOOL (C ) 533008 VIKIART - PHÂN PHỐI VIỆT 13,837 274,716,531 12,582 284,401,795 1.65% 97% 17 18 1 82,414,959 1.65% 83.56% 2.40% 78.33% B B BB 5332 HOME (C ) 533210 UBL - LIÊN KẾT THÁI BÌNH 6,648 264,330,701 2,340 104,054,816 1.58% 254% 18 26 8 74,012,596 1.58% 85.15% 2.16% 80.49% B B BB 5332 HOME (C ) 533221 ALPHA BOOK 2,793 256,512,159 - - 1.54% #DIV/0! 19 44 25 12,825,608 1.54% 86.69% 0.37% 98.57% B C BC 5330 FANCY (C ) 533109 MÈO MAY MẮN MANEKI NEKO 851 196,940,826 2,050 415,760,324 1.18% 47% 20 15 -5 55,143,431 1.18% 87.87% 1.61% 83.76% B B BB 3036 OFFICE 303607 CALCULATORS 493 186,594,184 584 157,568,792 1.12% 118% 21 23 2 14,985,613 1.12% 88.99% 0.44% 97.81% B C BC 3036 OFFICE 303603 PAPER ( CARTON / PACK ) 2,395 179,015,311 2,449 158,460,656 1.07% 113% 22 22 0 26,045,495 1.07% 90.06% 0.76% 95.81% C C CC 5330 SCHOOL (C ) 533006 VASAGO 13,788 159,321,206 19,767 217,777,996 0.96% 73% 23 19 -4 41,423,514 0.96% 91.01% 1.21% 89.28% C B CB 3036 OFFICE 303605 TAPE 12,525 151,817,136 11,341 148,077,085 0.91% 103% 24 24 0 30,577,908 0.91% 91.92% 0.89% 93.44% C C CC 5332 HOME (C ) 533201 THIEN THAN HANH PHUC 837 146,868,574 4,511 503,605,057 0.88% 29% 25 12 -13 44,060,572 0.88% 92.81% 1.28% 88.08% C B CB 3037 SCHOOL 303707 WHITE BOARD / CHALK BOARD 5,780 141,647,026 4,471 99,702,772 0.85% 142% 26 27 1 27,697,812 0.85% 93.65% 0.81% 94.25% C C CC 5332 HOME (C ) 533218 MC&PARTNERS 14,324 141,139,580 - - 0.85% #DIV/0! 27 44 17 39,519,082 0.85% 94.50% 1.15% 90.44% C C CC 5332 HOME (C ) 533212 GỐM SỨ SÁNG TẠO 1,049 130,918,100 791 98,340,866 0.78% 133% 28 28 0 39,275,430 0.78% 95.29% 1.15% 91.58% C C CC 5329 OFFICE (C ) 532903 CHẤN LONG 4,084 127,277,553 4,900 128,808,105 0.76% 99% 29 25 -4 33,092,164 0.76% 96.05% 0.96% 92.55% C C CC 5332 HOME (C ) 533215 NEW LUNA 6,293 105,975,986 5,266 68,400,844 0.64% 155% 30 31 1 27,553,756 0.64% 96.68% 0.80% 95.05% C C CC 3036 OFFICE 303601 BRANDED PEN / PREMIUM PEN 3,382 101,973,513 247 16,530,550 0.61% 617% 31 35 4 12,479,027 0.61% 97.30% 0.36% 98.93% C C CC 3037 SCHOOL 303703 GLUE 7,576 98,828,428 4,641 34,428,079 0.59% 287% 32 33 1 15,023,114 0.59% 97.89% 0.44% 97.37% C C CC 5332 HOME (C ) 533206 GIA LONG 2,630 82,604,572 2,254 69,269,907 0.50% 119% 33 29 -4 21,477,189 0.50% 98.38% 0.63% 96.44% C C CC 5332 HOME (C ) 533208 MORE PRODUCTION 2,379 56,627,908 3,214 69,019,527 0.34% 82% 34 30 -4 16,988,372 0.34% 98.72% 0.50% 96.93% C C CC 5332 HOME (C ) 533220 1980 BOOKS 383 43,998,924 - - 0.26% #DIV/0! 35 44 9 13,199,677 0.26% 98.99% 0.38% 98.19% C C CC 5332 HOME (C ) 533214 BLUE ANGEL 4,066 42,495,099 16,331 205,210,951 0.25% 21% 36 20 -16 11,048,726 0.25% 99.24% 0.32% 99.25% C C CC 5330 SCHOOL (C ) 533011 GIA LONG 3,104 24,752,142 - - 0.15% #DIV/0! 37 44 7 6,435,557 0.15% 99.39% 0.19% 99.44% C C CC 3039 HOME 303903 HOUSEKEEPING MATERIAL / GAMES 474 17,768,500 342 1,717,327 0.11% 1035% 38 42 4 4,349,152 0.11% 99.50% 0.13% 99.70% C C CC 3036 OFFICE 303602 PEN ( PACK ) ( ? 10 PCS ) 597 17,276,863 686 22,199,870 0.10% 78% 39 34 -5 2,605,828 0.10% 99.60% 0.08% 100.00% C C CC 5329 OFFICE (C ) 532902 UCHIDA 1,123 17,219,963 10,721 172,223,629 0.10% 10% 40 21 -19 4,477,190 0.10% 99.70% 0.13% 99.57% C C CC 3037 SCHOOL 303704 PAPER 2,258 15,619,695 3,053 11,695,851 0.09% 134% 41 36 -5 3,624,232 0.09% 99.80% 0.11% 99.92% C C CC 5330 SCHOOL (C ) 533007 NGUYỄN ĐỨC HẢI 103 15,517,553 1,344 62,041,532 0.09% 25% 42 32 -10 4,034,564 0.09% 99.89% 0.12% 99.81% C C CC 3036 OFFICE 303606 GLUE ( PACK ) ( ? 5 PCS ) 1,547 8,769,133 1,442 9,941,315 0.05% 88% 43 37 -6 1,728,554 0.05% 99.94% 0.05% 100.05% C C CC 5330 SCHOOL (C ) 533010 BAVICO 91 4,403,225 - - 0.03% #DIV/0! 44 44 0 1,144,839 0.03% 99.97% 0.03% 100.08% C C CC 3036 OFFICE 303608 APPLIANCES 232 3,229,976 161 3,259,909 0.02% 99% 45 39 -6 410,362 0.02% 99.99% 0.01% 100.09% C C CC 3039 HOME 303902 READING / COLLECTION MATERIAL 58 1,436,107 88 4,502,932 0.01% 32% 46 38 -8 (3,254,481) 0.01% 100.00% -0.09% 100.00% C C CC 5332 HOME (C ) 533222 TAN QUANG LAP 4 305,454 - - 0.00% #DIV/0! 47 44 -3 91,636 0.00% 100.00% 0.00% 100.09% C C CC 5330 SCHOOL (C ) 533002 PHUC MA 3 74,909 4 99,818 0.00% 75% 48 43 -5 19,476 0.00% 100.00% 0.00% 100.09% C C CC 5332 HOME (C ) 533209 HONG HANH - PAPERMIX 3 51,819 124 2,693,662 0.00% 2% 49 41 -8 13,473 0.00% 100.00% 0.00% 100.09% C C CC SALES/GP A B C Z A 10 0 0 0 A ≤ 70% B ≤ 90% C ≤ 100% B 0 9 2 0 C 0 2 26 0 Stationery has most no. of categories (49 units). Related to “C” 30 units. Z 0 0 0 0 SUM 49 What if we combine small categories into new category?  ABC ANALYSIS – BY SKU 3,921,726,819 15,725,606 SKU Item Name CATE Description6 SALES QTY SALE AMT FINAL GP SALES SALES GP GP SALES GP ABCZ 05414239 MAY EP CHAM KUVINGS NS-625CBS2 CG_M/GM_M 301607 FOOD PREPARATION 4 30,509,545 802,386 0.8% 81% 5.1% 5% B A BA 05414246 MAY EP TRAI CAY KUVINGS NS-2026BC 301607 FOOD PREPARATION 20 166,752,274 661,423 4.3% 29% 4.2% 9% A A AA 06321789 MAY XAY NAU DA NANG MIDEA MJ-BL100GH 301607 FOOD PREPARATION 11 35,946,363 631,487 0.9% 76% 4.0% 13% B A BA 06109158 MAY EP CHAM NGUYEN TRAI C.NGHIEP KUVINGS CS520CB 301607 FOOD PREPARATION 5 59,045,455 618,182 1.5% 61% 3.9% 17% A A AA 02660134 MAY EP TRAI CAY TOC DO CHAM PANASONIC MJ-L500SRA 301607 FOOD PREPARATION 47 236,292,095 523,794 6.0% 16% 3.3% 21% A A AA 02593661 MAY XAY EP DA NANG PANASONIC MJ-DJ31SRA 301607 FOOD PREPARATION 20 73,707,274 501,872 1.9% 55% 3.2% 24% A A AA 01213010 MAY XAY DA NANG PANASONIC MX-AC400WRA 301607 FOOD PREPARATION 4 11,963,636 448,636 0.3% 95% 2.9% 27% C A CA 02699530 MAY EP CHAM TRAI CAY IRUKA I-52 301607 FOOD PREPARATION 24 64,966,368 436,862 1.7% 58% 2.8% 29% A A AA 05359752 MAY EP TRAI CAY KUVINGS NS-120CBM2 301607 FOOD PREPARATION 5 26,341,364 400,091 0.7% 84% 2.5% 32% B A BA 03890240 MAY EP TRAI CAY PHILIPS HR1863 301607 FOOD PREPARATION 16 47,264,090 396,273 1.2% 67% 2.5% 34% A A AA 05484270 MAY XAY SINH TO TEFAL BLENDFORCE BL427166 301607 FOOD PREPARATION 22 20,777,362 381,517 0.5% 89% 2.4% 37% B A BA 04550051 MAY XAY SINH TO PHILIPS HR3652 301607 FOOD PREPARATION 24 76,599,995 363,102 2.0% 53% 2.3% 39% A A AA 07136436 MAY XAY SINH TO CAM TAY PHILIPS HR2537/00 301607 FOOD PREPARATION 1 1,445,455 346,364 0.0% 100% 2.2% 41% C A CA 01878523 MAY EP TRAI CAY PANASONIC MJ-DJ01SRA 301607 FOOD PREPARATION 24 71,860,912 343,996 1.8% 57% 2.2% 44% A A AA 02708294 MAY EP CHAM KUVINGS NS-321CBM2 (S/R/W) 301607 FOOD PREPARATION 14 87,282,271 307,654 2.2% 47% 2.0% 46% A A AA 03845202 MAY XAY SINH TO CAM TAY BRAUN MQ3045 APERITIVE 301607 FOOD PREPARATION 21 39,447,271 292,037 1.0% 72% 1.9% 47% A A AA 01213041 MAY XAY DA NANG PANASONIC MJ-M176PWRA 301607 FOOD PREPARATION 17 39,186,815 280,562 1.0% 75% 1.8% 49% A A AA 04649113 MAY EP TOC DO CHAM KUVINGS NS-924CBC2/RG/S 301607 FOOD PREPARATION 64 376,037,727 259,112 9.6% 10% 1.6% 51% A A AA 01806298 (BO) MAY XAY SINH TO PHILIPS HR2118/01 301607 FOOD PREPARATION 92 123,684,079 253,146 3.2% 36% 1.6% 52% A A AA 06161453 MAY XAY SINH TO EP TEFAL BL42Q166 301607 FOOD PREPARATION 36 52,589,547 252,215 1.3% 64% 1.6% 54% A A AA 06356606 MAY EP CHAM BLUESTONE SJB-6556 301607 FOOD PREPARATION 22 39,347,727 243,533 1.0% 74% 1.5% 56% A A AA 01451252 (BO) MAY EP TRAI CAY PHILIPS HR1847 301607 FOOD PREPARATION 21 42,614,088 243,042 1.1% 69% 1.5% 57% A A AA 02213002 BEP HONG NGOAI CAM UNG IRUKA I-77 301607 FOOD PREPARATION 122 185,672,257 242,086 4.7% 20% 1.5% 59% A A AA 01899627 MAY EP TRAI CAY PHILIPS HR1836 301607 FOOD PREPARATION 27 53,106,814 235,264 1.4% 63% 1.5% 60% A A AA 07136429 MAY XAY CAM TAY PHILIPS HR2534/00 301607 FOOD PREPARATION 1 908,182 234,546 0.0% 100% 1.5% 62% C A CA 03388136 MAY EP TRAI CAY PANASONIC MJ-H100WRA 301607 FOOD PREPARATION 70 98,310,711 221,980 2.5% 45% 1.4% 63% A A AA 06008291 M.XAY SINH TO CAM TAY SUPER CHEF SC_PJ1901/PJ1902 301607 FOOD PREPARATION 13 7,024,631 200,320 0.2% 98% 1.3% 64% C A CA 05572298 MAY CHE BIEN THUC PHAM PANASONIC MK-K51PKRA 301607 FOOD PREPARATION 7 17,627,729 200,065 0.4% 91% 1.3% 66% C A CA 01884425 MAY XAY SINH TO CAM TAY PHILIPS HR1607/00 301607 FOOD PREPARATION 14 18,405,904 187,253 0.5% 90% 1.2% 67% B A BA 03226506 (BO) MAY DANH TRUNG PHILIPS HR1559 301607 FOOD PREPARATION 19 22,281,813 180,709 0.6% 88% 1.1% 68% B A BA 01213034 MAY XAY DA NANG PANASONIC MK-5076MWRA 301607 FOOD PREPARATION 12 27,569,087 180,221 0.7% 82% 1.1% 69% B A BA 05390427 MAY LAM SUA DAU NANH BLUESTONE SMB-7328 301607 FOOD PREPARATION 27 41,260,463 178,165 1.1% 70% 1.1% 70% A A AA 06040611 MAY LAM SUA HAT DA NANG MAGIC A96 301607 FOOD PREPARATION 60 87,138,625 176,085 2.2% 49% 1.1% 71% A A AA 01806281 (BO) MAY XAY SINH TO PHILIPS HR2115/01 301607 FOOD PREPARATION 169 160,125,264 171,535 4.1% 33% 1.1% 72% A A AA 01213119 MAY EP TRAI CAY PANASONIC MJ-68MWRA 301607 FOOD PREPARATION 62 80,493,622 170,215 2.1% 51% 1.1% 74% A A AA 03845219 MAY XAY SINH TO CAM TAY BRAUN MQ3000+ SMOOTHIE 301607 FOOD PREPARATION 24 23,686,049 166,657 0.6% 85% 1.1% 75% B A BA 05275816 SINH TO COI THUY TINH MIDEA MJ-BL75G 301607 FOOD PREPARATION 26 23,134,138 166,098 0.6% 87% 1.1% 76% B B BB 01806274 MAY XAY SINH TO PHILIPS HR2108/03 301607 FOOD PREPARATION 31 23,186,671 163,906 0.6% 87% 1.0% 77% B B BB 05438501 MAY DANH TRUNG PHILIPS HR3705 301607 FOOD PREPARATION 56 40,131,600 156,454 1.0% 71% 1.0% 78% A B AB 06251024 MAY XAY THUC PHAM MAGIC ECO AC-15 301607 FOOD PREPARATION 26 12,721,946 140,006 0.3% 94% 0.9% 79% C B CB 06153403 MAY XAY SINH TO TEFAL BL30A165 301607 FOOD PREPARATION 18 12,172,051 134,527 0.3% 95% 0.9% 79% C B CB 04683186 MAY XAY SINH TO PANASONIC MX-V310KRA 301607 FOOD PREPARATION 130 167,212,253 133,896 4.3% 25% 0.9% 80% A B AB 06128920 MAY VAT CAM SHARP EJ-J130-ST 301607 FOOD PREPARATION 11 6,289,998 129,515 0.2% 98% 0.8% 81% C B CB 03226490 MAY XAY SINH TO PHILIPS HR2056 301607 FOOD PREPARATION 44 23,524,756 127,830 0.6% 85% 0.8% 82% B B BB 02228693 (BO) MAY XAY CAM TAY PHILIPS HR1604 301607 FOOD PREPARATION 30 25,077,370 127,530 0.6% 84% 0.8% 83% B B BB 02720708 MAY XAY SINH TO BLUESTONE BLB-5329 301607 FOOD PREPARATION 21 17,254,641 126,650 0.4% 91% 0.8% 84% C B CB 06159931 MAY VAT CAM BRAUN CJ3000 301607 FOOD PREPARATION 4 3,125,910 120,751 0.1% 100% 0.8% 84% C B CB 03226353 MAY EP TOC DO CHAM KUVINGS NS-621CBM2 (BAC/TRANG) 301607 FOOD PREPARATION 8 51,132,728 118,864 1.3% 65% 0.8% 85% A B AB SALES/GP A B C Z A 23 3 5 0 A ≤ 75% B ≤ 90% C≤100%. B 8 7 7 0 C 5 9 36 0 Related to “C” group: 62sku. Z 0 0 0 0 SUM 103 If we analyze in short period, there might be Z group.  ABC ANALYSIS – BY CATEGORY What SHOULD we do after ABC analysis + Justify with circumstances + Find root cause + Take actions GROUP NOTE 1 NOTE 2 Actions could be effective AA GOOD SALE - GOOD GP FOCUS Should not OOS AB GOOD SALE -MEDIUM GP TRY IMPROVE GP Should not OOS Cross MD to maximize sales, gain GP amt, near AC GOOD SALE - LOW GP TRY IMPROVE GP impulsive items if possible Cross MD to maximize sales, gain GP amt, near BA MEDIUM SALE - GOOD GP IMPROVE SALE impulsive items if possible BB MEDIUM SALE - MEDIUM GP IMPROVE SALE Cross MD to maximize sales, gain GP amt BC MEDIUM SALE -LOW GP IMPROVE SALE - GP Depending on reasons of low sale to take actions CA LOW SALE - GOOD GP IMPROVE SALE Depending on reasons of low sale to take actions CB LOW SALE - MEDIUM GP IMPROVE SALE - GP Normally redefine assortment, stop selling CONSIDER CLEAR, REDUCE CC LOW SALE - LOW GP ORDER Normally redefine assortment, stop selling ZZ NO DATA/ NO SALE - Normally redefine assortment, stop selling MD COMMITMENTS MD COMMITMENTS  MD COMMITMENTS Right product At the right price In the right quantity Of the right quality In the right place At the right time 25  PRODUCT CATEGORY PROFIT BUILDERS STAR PERFORMERS Low sales High GP Exceeding both sales & GP + Allocate quality space rather than quantity to increase + Allocate large amount of quality space sales + Consider expanding category assortment + Recheck product in category assortment SPACE WASTERS TRAFFIC BUILDERS Low sales Low GP High sales Low GP + Reduce space + Place close to higher GP/impulse purchase products + Put at top or bottom of shelves to pull customers through store + Eliminate products + Work on improving GP + Consider developing PB products  PRICING Factors Influencing Retail Prices Retail prices are affected by internal and external factors. Internal Factors Internal factors that influence retail prices include the following - Manufacturing Cost - The retail company considers both, fixed and variable costs of manufacturing the product. The fixed costs does not vary depending upon the production volume. For example, property tax. The variable costs include varying costs of raw material and costs depending upon volume of production. For example, labor. The Predetermined Objectives - The objective of the retail company varies with time and market situations. If the objective is to increase return on investment, then the company may charge a higher price. If the objective is to increase market  PRICING Factors Influencing Retail Prices Retail prices are affected by internal and external factors. Internal Factors Internal factors that influence retail prices include the following - Image of the Firm - The retail company may consider its own image in the market. For example, companies with large goodwill such as Procter & Gamble can demand a higher price for their products. Product Status - The stage at which the product is in its product life cycle determines its price. At the time of introducing the product in the market, the company may charge lower price for it to attract new customers. When the product is accepted and established in the market, the company increases the price. Promotional Activity - If the company is spending high cost on advertising and sales promotion, then it keeps product price high in order to recover the cost of investments.  PRICING External Factors External prices that influence retail prices include the following - Competition - In case of high competition, the prices may be set low to face the competition effectively, and if there is less competition, the prices may be kept high. Buying Power of Consumers - The sensitivity of the customer towards price variation and purchasing power of the customer contribute to setting price. Government Policies - Government rules and regulation about manufacturing and announcement of administered prices can increase the price of product. Market Conditions - If market is under recession, the consumers buying pattern changes. To modify their buying behavior, the product prices are set less. Levels of Channels Involved - The retailer has to consider number of channels involved from manufacturing to retail and their expectations. The deeper the level of channels, the higher would be the product prices  PRICING Demand-Oriented Pricing Strategy The price charged is high if there is high demand for the product and low if the demand is low. The methods employed while pricing the product on the basis of demand are - Price Skimming - Initially the product is charged at a high price that the customer is willing to pay and then it decreases gradually with time. Odd Even Pricing - The customers perceive prices like 99.99, 11.49 to be cheaper than 100. Penetration Pricing - Price is reduced to compete with other similar products to allow more customer penetration. Prestige Pricing - Pricing is done to convey quality of the product. Price Bundling - The offer of additional product or service is combined with the main product, together with special price.  PRICING Competition-Oriented Pricing Strategy When a retail company sets the prices for its product depending on how much the competitor is charging for a similar product, it is competition-oriented pricing. Competitor's Parity - The retail company may set the price as close as the giant competitor in the market. Discount Pricing - A product is priced at low cost if it is lacking some feature than the competitor's product. Differential Pricing Strategy The company may charge different prices for the same product or service. Customer Segment Pricing - The price is charged differently for customers from different customer segments. For example, customers who purchase online may be charged less as the cost of service is low for the segment of online customers. Time Pricing - The retailer charges price depending upon time, season, occasions, etc. For example, many resorts charge more for their vacation packages depending on the time of year. Location Pricing - The retailer charges the price depending on where the customer is located. For example, front-row seats of a drama theater are charged high price than rear- row seats.  FP CHART 33 FP CHART FP CHART  FP CHART 36 FP CHART  FP CHART Merchandise Mix Graph maintenance (1) It is a merchandise policy for competition measure to create md mix graph accurately and to be able to maintain md mix graph is basic for buying technique. (2) Technique for buying practice is not about [predict, sell and get lucky] ①Know quickly if merchandise will sell well (business・collect on site info・analysis data・industry trend・ collect supplier info etc.) ②When we know that merchandise will sell well, we could add more cargo  FP CHART Merchandise Mix Graph summary (1) We need to create it because it clarifies our company assortment and one of md policy. (2) We are aware of it until now but don’t create it. From simply focusing on price watch in competitor investigation, we should also digitize ours and competitors pricing policy. And by maintaining it, we could become top in the competition.  IP CHART - EXAMPLE MOBILE PHONE 60 ĐIỆN THOẠI DI ĐỘNG TGDD NK AEON LÊ CHÂN 50 13mil 39 44 28 20 185 172 75 10 0 13mil TGDD 48 33 38 27 39 NK 23 41 38 26 44 AEON LÊ CHÂN 5 13 16 13 28 TGDD NK AEON LÊ CHÂN  IP CHART - EXAMPLE LAPTOP LAPTOP 80 TGDD NK AEON LÊ CHÂN 70 25mil 36 26 0 30 197 120 23 20 10 0 25mil TGDD 5 53 73 30 36 NK 8 41 30 15 26 AEON LÊ CHÂN 2 6 14 1 0 TGDD NK AEON LÊ CHÂN  TEN QUALITIES OF A SUCCESSFUL MERCHANDISER 1. Ability to Create a Halo Effect 2. Ability to Calculate Fast and Accurate 3. Decision Making 4. Business Communication Skill 5. Ability to Convince Buyers 6. Ability to Work with Team Members 7. Good Analytical Capability 8. Enough Knowledge of Involved Industry 9. Basic Computer Skills of Office Applications 10. Hard worker and Self Motivation 43  STAR CYCLE REFLECT: SEE: check Verify results THINK: tasks ACT: Do with & Improve to current & ways to Error & satis fy status appeal Erase customers more CUSTOMER BEHAVIOR – new trend Marketing Funnel Need Need consultation Customer Journey Map Marketing activities for customers  Japan retail 999yen ~ 170k, yen value decreased AVN retail 249k vnd PRODUCT DEVELOPMENT GO FAR BEYOND 46 PRODUCT DEVELOPMENT GO FAR BEYOND 47  Personal Wellness & Family Wellness SMART HOME & HOME COMFORT 48  Introduction Pure Instinct – Glyph interface brilliant - Design considered - Nothing OS tps://intl.nothing.tech/pages/phone-1 https://intl.nothing.tech/pages/phone-1 Camera exceptional – Display beautiful - Performance powerful - Sustainability responsible NOTHING – NO BRAND – LESS IS MORE 49  Tadashi Yanai 柳井 正 Focus more on quality, less on price: For Uniqlo to effectively compete and maintain its strategic advantage and differentiation, the focus needs to shift away from price but towards quality. Even though Uniqlo enjoys high levels of appeal, evident by the serpentine queues outside its stores when it launches in new markets, there is still a need for Uniqlo to start investing in building a strong brand positioning on the quality of its apparels and aggressively communicate this. NOTHING – NO BRAND – LESS IS MORE 50