Wednesday, 21 December 2016

Volume and choice balance

The creation of the initial range plan reflects the quantities that have to be bought at item level by colour, in the correct size ranges, at the target mark-ups and retail selling prices. It is essential that the monetary buying amounts of the plan are aligned to the merchandise  plan intake values.
The buying plan should reflect the strategy which guarantees the correct amount of selection within the stock parameters while still providing the right spread of products in the required quantities that will best serve the target customer in both style, form and function at any point in time of the season.
During the construction of the plan, the principle that needs to be adhered to is that the merchandise plan must guide the buy with the customer top of mind. Lessons learnt from previous seasons need to be analysed and equally applied to both the basic continuity lines as well as the high end fashion products. Fundamentally it is also important to get the right balance of the correct number of choices in quantities that enable the guarantee of basic lines in depth without impeding the introduction of newness.
It happens often that too much emphasis is placed on the fringe or peripheral lines, or there is excessive similarity in characteristics and price offerings that can disrupt the balance. The emotional wishes of the buying team and suppliers can also have an influence on a distorted balance being achieved and should be guarded against.
The range plan which represents the assortment of products developed within specific categories must represent the organisation of the business and therefore should be balanced across the width and depth of the structure.
The width represents how broad the choice of product is while the depth represents the quantities required to cover the number of sizes and colours including the amount of price points within the product categories. It is probably easier for niche retailers that focus on a narrower customer segment of the market to best be able to serve the both the depth and width demands of their market.
The difficulties that retailers are faced with in striking the right balance of width and depth of ranges is that of presenting real customer choice while at same time optimising the return on investment. In other words, there is the need to attract customers by maintaining a level of newness and fashionability without compromising the traditional or core customers and especially the high volume sellers. It is therefore critical that the buyer has a clear vision of the marketing position and understands the target customer though continuous research which provides the confidence to determine as to what should or should not be kept in the range.
The other challenge of having a too broad choice of styles is that the decision making process becomes an effort to select a product and diminishes the pleasure of the shopping experience.

The volume and choice balance emphasis that the customer expects to find new styles in their size in a variety of colours can be illustrated as follows.

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