Fashion Design

Level III
Based on march2022, Curriculum Version

Module Title: - Develop and Perform Merchandising Strategy

Module code: IND FAD3 02 1222
Nominal duration: 50 Hours

November, 2023

Addis Ababa, Ethiopia

Page 1 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Acknowledgment
I wish to extend my thanks and appreciation to many of my staff members, the department head,
and our college’s dean for facilitating the development of these teaching, training, and learning
materials. (TTLM).

Contents
Page 2 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Acknowledgment.............................................................................................................................2
Introduction to the Module..............................................................................................................6
Unit one: Determine job requirements............................................................................................7
1.1Standard operation procedures are followed for merchandizing............................................8
1.1.1. Concepts merchandise?.............................................................................................8
1.1.2. Standard operation procedures for merchandizing........................................................8
1.2. Work health and safety requirements at all times...............................................................11
1.2.1. What is Work health and safety?.................................................................................11
1.2.2. Work health and safety requirements at all times........................................................11
1.4. Identified Job requirements from specifications, drawings, job sheets merchandising.....13
14.1. Fashion Merchandiser Requirements...........................................................................14
Self-check-1...............................................................................................................................15
Unit two: prepare to develop merchandizing plans......................................................................16
2.1. Merchandising opportunities are identified and analysed..................................................17
2.1.1. Identifying merchandising opportunities.....................................................................18
2.1.2. Analyse features of fashion product to identify promotional strengths.......................19
2.1.3. Researching target market...........................................................................................20
2.1.4. Identify buyer patterns in relation to fashion product.................................................21
2.1.5. Analyzing distribution outlets for fashion products and merchandising activities......23
2.2. Merchandising objectives are identified and established for fashion trend........................23
2.3. Current merchandising practices and trends are analysed for relevance to fashion product.
...................................................................................................................................................25
2.3.1. Retail Merchandising practices that retailers their stores............................................26
2.3.2. Point of sale tracking...............................................................................................28
2.3.3. Instant communication of sales back to manufacturers...........................................29
2.3.4. Overnight replenishment.........................................................................................29
2.3.5. Just-in-time system..................................................................................................30
2.4. Merchandising budget is determined used for fashion design product..............................31
Self-check-2...............................................................................................................................35
Unit three: Develop a merchandising plan....................................................................................37
3.1. In-store presentation of fashion design is determined and applied in display space..........38
Page 3 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
 3.1.1What is merchandise planning?.....................................................................................38
3.1.2. Store layout, display spaces and customer flow..........................................................39
3.1.3. Fixtures, fittings and mannequins for display of fashion products..............................44
3.1.4. Presentation visuals and arrangements for optimal display of fashion design products
...............................................................................................................................................46
3.1.5. Packaging and folding requirements...........................................................................47
3.2. The way of Advertising and promotion of fashion design is determined...........................48
3.2.1. Promotional activities to support sales of fashion design............................................49
3.2.1. Promotional and advertising materials appropriate to fashion design product and
client marketing objectives....................................................................................................50
3.3. Merchandising plan is developed which details presentation, promotional and advertising
activities.....................................................................................................................................52
Self-check-3...............................................................................................................................53
Unit four: Assess, document and store merchandising plan..........................................................55
4.1. Understand Assesse and presented merchandising plan.....................................................56
4.2. Document and report merchandising plan..........................................................................59
Self-check-4...............................................................................................................................64
Reference.......................................................................................................................................65

Page 4 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
List of figure

Figure 1: apparel merchandising process.......................................................................................9

Figure 2: buying patterns in relation to fashion product..............................................................22
Figure 3: Plan the window display................................................................................................27
Figure 4: just in time.....................................................................................................................31
Figure 5: Color and Lighting........................................................................................................42
Figure 6: Atmosphere lighting.......................................................................................................43
Figure 7: Props and Fixtures........................................................................................................44
Figure 8: Mannequins for display of fashion products.................................................................46
Figure 9: visuals and arrangements for optimal display of fashion design products...................46
Figure 10: Advertising and promotion of fashion design..............................................................49
Figure 11:- Merchandising plan...................................................................................................60
Figure 12: example report merchandising document...................................................................62

Page 5 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Introduction to the Module
In Fashion Design filed; Develop and Perform Merchandising Strategy helps to know Fashion
merchandisers are involved in all particulars of the fashion merchandising process, starting from
designing to sales. Common tasks of merchandiser includes predicting market trends, overseeing
production costs, managing sales, making revenue estimates, and finalizing the fashion. Even it
is found that, many fashion merchandisers are specialized in retail settings, or floor displays and
in set-up of various layout as sales and service representatives.
This module is designed to meet the industry requirement under the Fashion design occupational
standard, particularly for the unit of competency: Develop and Perform Merchandising
Strategy.
This module covers the units:
 Determine job requirements
 Prepare to develop merchandising plans
 Develop a merchandising plan
 Assess, document and store merchandising plan
Learning Objective of the Module

 Identify job requirements

 Understand Prepare to develop merchandising plans
 Understand Develop a merchandising plan
 Used Assess, document and store merchandising plan

Module Instruction

For effective use this modules trainees are expected to follow the following module instruction:

1. Read the information written in each unit

2. Accomplish the Self-checks at the end of each unit

3. Read the identified reference book for Examples and exercise

Page 6 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Unit one: Determine job requirements
This unit is developed to provide you the necessary information regarding the following
content coverage and topics:

 Standard operation procedures are followed for merchandizing.

 Work health and safety requirements are compiled at all times.
 Appropriate personal protective equipment is used in accordance with OHS.
 Job requirements are identified from specifications, drawings, job sheets or work
instructions.
This unit will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:

 Identify Standard operation procedures for merchandizing.

 Understand Work health and safety requirements at all times.
 Understand appropriate personal protective equipment is used in accordance with
OHS.
 Identify Job requirements from specifications, drawings, job sheets or work.

Page 7 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
1.1Standard operation procedures are followed for merchandizing.

1.1.1. Concepts merchandise?

Merchandise is a broader concept than a product. It includes various features with which a
product is offered at the store. Merchandising is the process and function of designing and
delivering the product to ensure customers satisfaction and meet the objective of profit making to
the organization.

There are different opinions and definitions on merchandising.

Merchandising can be defined as “Planning, Buying, Assorting, Promoting Placing, Setting and
Replenishing the Goods”. Goods bought must be sold or replenished the unsold stock will be a
burden on finance. So planning need to be made what kind of product is to be brought and how it
should be priced promoted and placed so that customer is attracted towards the product.

Merchandising can be defined as the planning and promotion of sales by presenting a product to
the right market at the proper time, by carrying out organized, skilful advertising, using attractive
displays, etc.

Merchandisers plan and manage product ranges, inventory, displays and promotions. They
collaborate with buyers, suppliers, analysts and retail teams to have the right products in stock,
on the shelf and in attractive displays at the right price to interest customers and produce sales.

The merchandiser plays a central role in a buying house/garment factory. The basic functions of
an export merchandiser are to Co-ordinate, Follow up and facilitate. From the time the order is
given by the buyer until the time it is shipped out and reaching buyer’s warehouse, merchandiser
needs to coordinate with various internal departments on one hand and with the buyer. This
coordination role is very crucial and important to ensure that the order is produced and shipped
on time with required quality and quantity, thus, ensuring the Right Product, Right Price, Right
Time and Right Place.

1.1.2. Standard operation procedures for merchandizing.

SOPs help in production and its planning, where businesses can design and execute tasks to meet
sales targets. However, they are not business plans and merely act as a framework for the
processes and execution.

Page 8 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
An SOP provides a basic structure for operations. It is only a matter of figuring out the elements
that go into it, how, and where to place them so that everything goes according to plan.

When one thinks of the merchandising sector, for example, the elements that make up the SOPs
may include:

BOM (Bills of Materials)

TNA (Time and Action Calendars)

The fabric or material

Production files

Pre-Production meetings

No table of figures entries found.Factors to Consider When Writing a Merchandising SOP

Designing and implementing merchandising SOPs in a factory setting becomes easier when
export sizes are small. However, for larger businesses, it can be a complex process that may
require expertise in different areas.

Also, one will need to analyze various aspects and how they impact the production process.
Moreover, the drafts also need approvals before they can integrate different elements into the
production process. All these steps can take time

Figure 1: apparel merchandising process

Page 9 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Sourcing: Sourcing is the search for new sources of supply to place the orders within desired
quality and price. Sourcing is responsible for developing the garment samples for the assigned
product/style with close cooperation of all team. Working with Technical, QA and Mill
management to ensure all quality decision and standards are met. Sourcing supports the team in
problem-solving, Information sharing and counter sourcing to best placement of plan. Also
manages vendor orders and relationships for a sub-category.

Costing / Negotiation: Order confirmation is an important moment for merchandisers. Well

known for various accessories price, wash price and fabric price can make buying meeting
successful. Merchandiser needs to follow good attitude and professional dress code in
negotiation meeting. Always need to remember “Win-Win situation” for all party in costing/
Negotiation meeting.

TNA (Time and Action) Spreadsheet Information: One of the foremost and primary functions
of the merchandiser is to prepare a time and action plan for all actions required for successful
execution of the export order received. The action plan includes the timelines for various
approvals to be taken from the buyer or buying house, various sourcing activities like fabric etc.,
cutting, sewing and finishing of garments, packing, various quality audits, shipping etc. TNA is
very significant for merchandiser because it provides the basic framework of time and action to
follow up the day to day merchandising.

Approvals from Buyers: An export merchandiser needs to get various approvals from the buyer
or buying house merchants. These trims may be sent to the buyer approval as suggested, before
starting the production of the garments.

Testing Requirements: Testing of piece goods, as well as final apparel, is an important

requirement for the buyers. Many of the buyers require that the testing is done by a third party
lab and the lab sends one copy of the report directly to the buyer.

Production Planning: Normally PPC team prepares the production plan. Merchandiser need to
check the plan regularly to confirm his/her order can ship on time, also need to inform planner if
need any correction/improvement. The various segment of a plan are: Batch Plan, Cut Plan,
Finishing and Packing Plan, Embroidery Plan, Wash Plan, Vessel Planning

Page 10 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Quality Assurance: QA department is responsible to confirm the goods quality as per buyer
expectation. Merchandiser needs to update QA team time to time about buyer quality standard,
procedure, and new concept.

Compliance: Compliance is very important in HR practices. Merchandiser needs to follow up

with compliance team to get update time to time. Merchandiser can support buyer immediately if
he/she well-known about various certification.

Logistics and Supply Chain: Merchandiser always familiar with vessel lead time in different
destination before ex-factory on time vessel booking need to confirm with the commercial
department. Merchandisers always follow up the commercial department in logistics and supply
chain issue.

1.2. Work health and safety requirements at all times

1.2.1. What is Work health and safety?

Occupational Safety and Health (OSH) is an important aspect which allows an organization to
systematically manage the safety and health of the workers in a workplace. The process is an
important one in creating the most efficient workstation lay out. This means that the workstation
should be such that it does not create risks to the worker's health and safety. In every working
area OHS \ Occupational Health &Safety is implemented. When using tool and equipment’s
basic safety precautions should always be followed to reduce the risk of personal injury and
damage to tools &equipment.

1.2.2. Work health and safety requirements at all times

Working on the principle of “A PLACE FOR EVERYTHING, and EVERYTHING IN ITS
PLACE”, you can adapt these ideas the equipment you already have or can easily obtain.

Safe Keep work area clean

Observe work area conditions

Store idle equipment / When not in use, tools must be stored in appropriate location

Dress properly

Page 11 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Observe all, before, safety precautions related to your work.

Report unsafe conditions or any equipment or materials you think might be unsafe.

Report any injury

Wear protective clothing

Always inspect equipment and associated attachments for damage before using.

Select and lay out materials accordance to work specifications materials handling and safe
storage of equipment. Like in any activity, gathering the proper tools for the job will make each
step along the way better & more accurate.

Generally follow all precautions and regulations while working in the lab. Make sure that your
working space is clean and organized, and all the required stocks and materials are kept ready &
maintain the discipline in your working area

1.3. Appropriate personal protective equipment is used in accordance with OHS

Personal protective equipment in accordance with OHS (such as face masks, respirators, gloves,
boots, overalls, goggles and ear-muffs) should be regarded only as a short term measure until
more effective control strategies are implemented, or in very limited situations (such as
emergency clean-up).

• Manual handling techniques

• Ergonomic drawing tables

• Standard operating procedures

• Safe materials handling

• Implement in work flow rest breaks

• Ergonomic arrangement of workplaces

• Following marked walkways

• Safe storage of equipment

Page 12 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 • Cleaning of work space Reporting accidents and incidents

• Environmental practices

1.4. Identified Job requirements from specifications, drawings, job sheets

merchandising.
It is important to review these documents carefully to ensure all relevant job requirements are
identified and understood before starting the job.

A merchandising job description provides information about selecting and displaying products in
retail stores to maximize sales and profitability. This involves planning and coordinating the
availability of products, determining pricing strategies, creating visual displays and managing
inventory levels. Effective merchandising requires a comprehensive understanding of consumer
behavior, market trends and sales data.

Merchandising can take many forms, including product placement, advertising, promotions and
special events. Ultimately, merchandising aims to create an engaging and compelling shopping
experience that drives sales and customer loyalty.

Fashion merchandisers oversee the style design of garments and accessories in retail clothing
stores, costume suppliers, or fashion houses. It is the fashion merchandiser's responsibility to
predict fashion trends, plan and implement store layouts, purchase apparel, and collaborate with
designers.

• Technical skills: The specifications, drawings, job sheets, or work instructions may
outline specific technical skills required to perform the job. This could include
knowledge of specific machinery, tools, equipment, or software.
• Knowledge of materials: The documents may specify the type of materials that need to be
used for a particular job. This could include knowledge of different types of metals,
plastics, or other materials and their properties.
• Safety requirements: The specifications, drawings, job sheets, or work instructions may
highlight safety precautions or procedures that need to be followed during the job. This
could include wearing personal protective equipment (PPE), following specific safety
protocols, or handling hazardous materials.

Page 13 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 • Quality standards: The documents may outline quality standards that need to be met for
the job. This could include specific measurements, tolerances, or finishes that need to be
achieved.
• Time constraints: The specifications, drawings, job sheets, or work instructions may
specify time constraints or deadlines for completing the job. This could include specific
milestones or targets that need to be achieved within a given timeframe.
• Communication skills: The documents may require effective communication with team
members, supervisors, or clients. This could involve reporting progress, seeking
clarification, or providing updates on the job.
• Problem-solving abilities: The specifications, drawings, job sheets, or work instructions
may require problem-solving skills to address any issues or challenges that arise during
the job. This could involve troubleshooting equipment, identifying and resolving
technical problems, or finding alternative solutions.
• Attention to detail: The documents may emphasize the importance of being detail-
oriented and meticulous in following instructions. This could include accurately
interpreting specifications or drawings and ensuring precise execution of tasks.
• Physical requirements: The specifications, drawings, job sheets, or work instructions may
specify physical requirements for the job. This could include lifting heavy objects,
standing for long periods, or performing tasks in confined spaces.
• Teamwork and collaboration: The documents may highlight the need to work effectively
as part of a team and collaborate with others. This could involve coordinating tasks,
sharing information, or supporting colleagues in achieving common goals.

14.1. Fashion Merchandiser Requirements

 Degree in merchandising and/or fashion design.

 Proven experience as a fashion merchandiser or visual merchandiser.
 Proficiency in Photoshop and Illustrator.
 Strong knowledge of the latest fashion trends and developments.
 Exceptional communication and interpersonal skills.
 Ability to create original and eye-catching designs that appeal to our target market.
 Excellent time management and organizational skills
Page 14 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Self-check-1
Name……………………………………ID…………………Date…….time allowed 20min

Direction I:-Answer say true or false (Total Points: 2X5=10)

1. Merchandisers plan and manage product ranges, inventory, displays and promotions.
2. Sourcing is the search for new sources of supply to place the orders within desired quality and
price.
3. The workstation should be creating risks to the worker's health and safety.
4. Fashion Merchandiser Strong knowledge of the latest fashion trends and developments.
5. Costing and Negotiation various accessories price, wash price and fabric price can make
buying meeting successful.

Direction II:-Answer all the questions listed below (Total Points: 2X5=10)

1. Define what is merchandise?

2. Discuss the function of merchandise in apparel industry?
3. Draw and list the apparel merchandising?
4. Discuss the requirement of work health and safety in fashion industry?
5. Discuss the job requirement of merchandising?

Page 15 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 Unit two: prepare to develop merchandizing plans
This unit is developed to provide you the necessary information regarding the following content
coverage and topics:

 Merchandising opportunities are identified and analysed

 Merchandising objectives are identified and established for fashion trend.
 Current merchandising practices and trends are analysed for relevance to fashion
product.
 Merchandising budget is determined used for fashion design product.
This unit will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:
 Identify merchandise opportunities
 Identify and establish merchandising objectives for fashion trend.
 Understand Current merchandising practices and trends for relevance to
fashion product.
 Understand Merchandising budget for fashion design product.

2.1. Merchandising opportunities are identified and analysed

Developing merchandising plans based on identified buying patterns, fashion brands and retailers
can optimize their product assortment, pricing, and promotional strategies to meet customer
Page 16 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
demands and increase sales. This can lead to improved customer satisfaction, brand loyalty, and
overall business success in the fashion industry
To develop merchandising plans based on identified buying patterns in relation to fashion
products,
The following steps can be taken:-
o Determine product assortment: Based on the analysis of buying patterns, identify the
specific fashion products that are most popular among different customer segments. This
will help determine which products to prioritize in the merchandise assortment.
o Plan inventory levels: Use the buying patterns data to forecast demand for each fashion
product. This will help in determining the appropriate inventory levels to maintain,
ensuring that popular products are adequately stocked while minimizing excess inventory
of less popular items.
o Pricing strategy: Analyse the price points that customers are willing to pay for different
fashion products. Consider factors such as customer segment, product category, and
perceived value. Adjust pricing strategies accordingly to maximize sales and profitability.
o Visual merchandising: Utilize the insights gained from buying patterns to create visually
appealing displays that highlight the most popular fashion products. This can help attract
customer attention and drive sales.
o Promotions and marketing campaigns: Develop targeted promotions and marketing
campaigns based on the identified buying patterns. This could include offering discounts
or incentives on popular products, creating special collections or collaborations, or
leveraging influencers or social media platforms that align with customer preferences.
o Monitor and analyse results: Continuously monitor sales and customer feedback to
evaluate the effectiveness of the merchandising plans. Adjust strategies as needed based
on on-going analysis of buying patterns and customer response

2.1.1. Identifying merchandising opportunities

Merchandising is the art and science of presenting products in a way that maximizes sales and
customer satisfaction. As a merchandiser to need to constantly analyze market,customers and
competitors to identify opportunities and gaps in merchandising strategy.

Page 17 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Here are some tips on how to do that effectively.

 Start a contribution

The first step to identify merchandising opportunities and gaps is to understand who your target
customers are, what they want, and how they shop. You can use various sources of data, such as
sales reports, customer feedback, surveys, and loyalty programs, to segment your customers by
demographics, preferences, behaviors, and needs. Then, you can tailor your merchandising
decisions to appeal to each segment and create a personalized shopping ex Establishing
merchandising objectives and sales targets with client patience.

 Monitor the performance

The second step to identify merchandising opportunities and gaps is to measure how well your
merchandising strategy is working. You can use key performance indicators (KPIs), such as
sales, margins, inventory turnover, sell-through rate, conversion rate, and customer satisfaction,
to evaluate the effectiveness of your product assortment, pricing, promotion, display, and
placement. You can also compare your performance to your goals, benchmarks, and industry
standards to identify areas of improvement and best practices.

 Scan the environment

The third step to identify merchandising opportunities and gaps is to keep an eye on your
external environment, such as your market, your competitors, and your trends. You can use
various tools, such as market research, competitive analysis, trend forecasting, and social media
listening, to spot emerging opportunities and threats in your industry and niche. You can also use
these tools to identify customer pain points, unmet needs, and new demands that you can address
with your merchandising solutions.

 Test the ideas

The fourth step to identify merchandising opportunities and gaps is to experiment with your
merchandising ideas and see how they perform. You can use various methods, such as A/B
testing, customer feedback, focus groups, and pilot programs, to test different aspects of your
merchandising strategy, such as product selection, pricing, promotion, display, and placement.

Page 18 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
You can also use these methods to gather insights and feedback from your customers and staffs
that can help you improve your merchandising decisions.

 Adapt the strategy

The fifth step to identify merchandising opportunities and gaps is to adjust your merchandising
strategy based on your findings and results. You can use various techniques, such as data
analysis, action planning, and change management, to implement your changes and monitor their
impact. You can also use these techniques to communicate your changes to your stakeholders,
such as your customers, staff, and suppliers, and get their buy-in and support. You can also use
these techniques to review your strategy periodically and make sure it is aligned with your goals
and market conditions.

2.1.2. Analyse features of fashion product to identify promotional strengths

One objective could be to analyse the features of the fashion product to identify its promotional
strengths. This could involve conducting a thorough analysis of the product's unique selling
points, such as its design, material quality, or functionality, and using this information to develop
targeted marketing campaigns that highlight these strengths.

Another objective could be to conduct market research and gather customer feedback to
understand which features of the fashion product are most appealing to the target audience. This
information can then be used to tailor promotional messaging and strategies to effectively
communicate these features and attract customers.

To create visually appealing and engaging promotional materials those effectively showcase the
fashion product features. This could involve creating high-quality product images or videos,
developing creative and attention-grabbing advertisements, or utilizing visual merchandising
techniques in stores to highlight the product's unique features.

To collaborate with influencers or celebrities who align with the fashion product's features and
brand image. By leveraging their influence and reach, these partnerships can help promote the
product's strengths and generate interest and desire among their followers.

Page 19 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
By analysing the features of a fashion product and identifying its promotional strengths,
merchandising efforts can be focused on effectively communicating these strengths to the target
audience, ultimately driving sales and increasing brand awareness.

Fashion promotion strategies

 Marketing mix: product, price, place, promotion (4 Ps), decisions, marketing, brand, target
market.
 Promotional mix: advertising, sales promotion, visual merchandising, personal selling
 Advertising: fashion brand e.g. magazines, newspapers, television, billboards, internet,
specialist trade fairs; attention grabbing techniques e.g. Attention, Interest, Desire, Action
(AIDA);
 specific consumer groups: e.g. shock tactics, celebrity endorsements, promotional offers,
point-of-sale, Unique Selling Proposition (USP)
 Sales promotions: short term promotions e.g. buy one get one free, student discount,
 Visual merchandising: e.g. stores, product, shop floor, window displays, point-of-sale.

2.1.3. Researching target market

A target market analysis is an assessment of how your product or service fits into a specific
market and where it will gain the most traction with customers. Target market analyses help
businesses establish strategies for effective marketing and sales techniques. A company's target
market is its core customer base or the demographics of customers most likely to buy its product
or service. A target market analysis provides a high-level perspective of the overall business field
and usually outlines opportunities and restraining factors for companies hoping to enter that
market.

Benefits of a target market analysis include:

 Identifying the most and least valuable markets: Target markets analyses help determine
which markets are worth pursuing and which are not.
 Developing buyer personas: Often, creating an "ideal" buyer is part of the target market
analysis for businesses to identify the specifics of their target demographic accurately.
 Finding gaps in the market to fill: A thorough market analysis might reveal untapped
areas of the market that your company, product or service can accommodate.
Page 20 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
  Assessing the viability of a product or service: Market testing can be a valuable part of a
target market analysis, particularly for a brand new product or service. Feedback from
potential customers in your target market can help determine how successful your
product will be.
 Finding new markets: With surveys or other research methods, you may find a new
market interested in your product.
 Improving business strategy: With the information garnered from the target market
analysis, you can create a strong business strategy using data to support your decisions.

2.1.4. Identify buyer patterns in relation to fashion product

Buying patterns refer to the why and how behind consumer purchase decisions. They are habits
and routines that consumers establish through the products and services they buy. Buying
patterns are defined by the frequency, timing, quantity, etc.

Identifying buying patterns in relation to fashion products involves analyzing consumer behavior
and preferences to understand how and why customers make purchasing decisions. This
information is crucial for developing effective marketing strategies, determining product
assortment, and setting pricing strategies.

Identifying buying patterns in relation to fashion products, fashion brands and retailers can tailor
their marketing strategies, product assortment, and pricing to better meet customer needs and
preferences. This can lead to increased sales, customer satisfaction, and overall business success

To identify buying patterns in relation to fashion products, the following steps can be
taken:

1. Collect data: Gather data on customer purchasing behavior through various sources such as
sales records, customer surveys, focus groups, and online analytics tools. This data should
include information on what products customers are buying, when they are buying them, and at
what price points.

2. Segment the data: Analyze the collected data to identify different customer segments based on
demographics, psychographics, and purchasing behavior. This segmentation will help identify
specific patterns within each segment.

Page 21 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
3. Analyze trends: Look for commonalities and trends within each customer segment. This could
include identifying popular styles, colors, or materials, as well as preferred price ranges and
shopping channels. Analyze how these trends evolve over time to identify emerging patterns.

4. Consider external factors: Take into account external factors that may influence buying
patterns, such as seasonal trends, economic conditions, cultural influences, and fashion industry
trends. These factors can have a significant impact on consumer preferences and purchasing
behavior.

5. Use predictive analytics: Utilize predictive analytics tools to forecast future buying patterns
based on historical data and trends. This can help in anticipating demand and making informed
decisions regarding inventory management and production planning.

6. Stay updated: Continuously monitor and update the analysis as new data becomes available.
Buying patterns can change rapidly in the fashion industry, so it's important to stay current with
consumer preferences and adapt strategies accordingly.

Figur
e 2: buying patterns in relation to fashion product

2.1.5. Analyzing distribution outlets for fashion products and merchandising

activities
In the fashion business, a good distribution channel has a high impact on the business. The
fashion apparel manufactured should reach the retail stores at the right time to influence

Page 22 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
consumers to buy the brand's products. Any delay in making the clothes available to the
consumers can result in huge losses for the fashion brand.

There are three main types of distribution channels that fashion houses can choose from:

1. Direct channel

This is a distribution channel where the retailer sources the clothes directly from the
manufacturer. There are no intermediaries like wholesalers or other agents. In this channel, the
manufacturer has total control over the distribution of its products, which makes it difficult for
the retailer to procure the products in large quantities. However, the products are cheaper since
they are directly sourced. This may work as a great advantage to fashion brands.

2. Indirect channel

In this channel, a wholesaler or an agent serves as a middleman between the manufacturer and
the retailer. While this may reduce the load of distribution on the manufacturer, the retailer pays
a higher price for the goods to include the middlemen's commission. However, fashion brands
can order products in higher quantities from these middlemen.

3. Hybrid channels

An alliance of direct and indirect distribution channels, a hybrid channel is the base of most B2B
platforms. In a hybrid channel, the manufacturer employs various distributors to advertise its
products but still has control over the market. This means that the manufacturer's agents
advertise its products on different channels. They then direct any interested parties to the
manufacturer, who makes the final call.

2.2. Merchandising objectives are identified and established for fashion trend.

These broad objectives, there may be specific merchandising objectives for the fashion trend,
such as:

 Increasing brand awareness: If the fashion trend is associated with a specific brand or
designer, one objective could be to increase brand awareness and visibility through

Page 23 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 strategic merchandising efforts. This could include collaborations with influencers or
celebrities, targeted marketing campaigns, or innovative visual merchandising displays.
 Maximizing sell-through: Another objective could be to maximize sell-through of the
fashion trend. This involves ensuring that the trend is effectively promoted, stocked in the
right quantities, and displayed prominently to attract customer attention. By optimizing
sell-through, merchandising can minimize excess inventory and improve overall
profitability.
 Building a cohesive collection: If the fashion trend is part of a larger collection or
assortment, an objective could be to build a cohesive and complementary range of
products. This involves carefully selecting and curating products that align with the trend,
ensuring that they work well together and provide customers with a complete and
harmonious shopping experience.
 Expanding market reach: If the fashion trend has the potential to appeal to new customer
segments or markets, an objective could be to expand its market reach. This could
involve targeting new demographics, exploring international markets, or partnering with
retailers or online platforms that cater to specific customer groups.
 Increasing sales volume: One objective could be to increase the overall sales volume of
the fashion trend. This could involve implementing marketing and promotional strategies
to generate awareness and interest, optimizing product placement and visibility in stores
or online platforms, and offering incentives or discounts to encourage purchases.
 Enhancing brand reputation: Another objective could be to enhance the brand reputation
associated with the fashion trend. This could involve showcasing the trend in high-profile
events or fashion shows, collaborating with reputable influencers or celebrities, or
obtaining positive media coverage through PR efforts.
 Expanding distribution channels: If the fashion trend is currently only available in limited
distribution channels, an objective could be to expand its reach by partnering with
additional retailers or online platforms. This could involve negotiating contracts and
agreements, ensuring consistent brand representation across different channels, and
providing necessary support and resources to retailers.
 Improving product quality and design: An objective could also be to continuously
improve the quality and design of the fashion trend. This could involve conducting
Page 24 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
 market research and gathering customer feedback to identify areas for improvement,
working closely with designers and manufacturers to implement changes, and conducting
regular quality control checks to ensure customer satisfaction.
 Increasing customer engagement and interaction: Another objective could be to increase
customer engagement and interaction with the fashion trend. This could involve
implementing interactive displays or experiences in stores, leveraging social media
platforms to encourage customer participation and sharing, or organizing events or
workshops related to the trend.
 specific merchandising objectives, fashion trends can be strategically managed and
promoted to achieve desired outcomes such as increased sales, improved brand
reputation, and expanded market reach. Setting clear merchandising objectives and
aligning strategies and tactics accordingly, fashion trends can be effectively promoted,
sold, and enjoyed by customers, ultimately driving business success.

Merchandising has two broad objectives:

1. Buy and store the products that are needed by the customers.

2. Second important objective of merchandising is the growth of the business and making
the business profitable. It means store or buy that products which are in demand and can be
sold.

2.3. Current merchandising practices and trends are analysed for relevance to
fashion product.

Retail Merchandising is the practice of showcasing the products of a store It is done in a way that
attracts the audience's attention and generates sales. In large stores, the window display is a non-
verbal communication between the retailer and the audience.

The Five R’s of Retail Merchandising

Retail Merchandising can lead to the success of both the retail store and the clothing brand.
There are five R’s when it comes to Retail merchandising.

Retailers can follow them for the success of their stores:-

Page 25 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
  The Right product- Displaying the right products is the first step toward successful retail
merchandising.
 The Right Audience- The products displayed should appeal to the Onlookers. By selling
the right products to the right audience, retailers can increase their sales.
 The Right way- Window displays should match the vibe of the merchandise.
 The Right Time- Selling sweaters in the summer just make no sense. Retailers should
note that the items displayed are relevant to the current times and in trend.
 The Right Price- The above four Rs will make no sense if the product pricing is wrong. In
the end, the right price is what sells the product.

2.3.1. Retail Merchandising practices that retailers their stores

Plan the window display

1. Plan the window display: visually attractive window displays, with the correct product
placement, can be an asset for the business. Proper lighting and eye-level display should be
incorporated. Props can be used where needed. However, the products should always be the
highlight of the display. Retailers can hire a styling manager to overlook the window displays.
This way, they can display the products and give styling tips to buyers.

Page 26 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Figure 3: Plan the window display

2. Leverage sign ages to include information-Conveniently placed sign ages help customers
navigate the store in a better way. Retailers should not just focus on selling their products. They
should strive to create a positive shopping experience for the customer. Including informational
sign ages in strategic places helps customers easily locate the items they need.

3. The power of cross-merchandising-. Retailers can place t-shirts and tops next to the jeans
section. This way, customers are more likely to pick a new top with their newly purchased jeans.
Socks can be placed next to the shoe section for increased sales.

4. Helpful in-store support staff-A good, helpful, friendly in-store staff can help customers gain a
positive shopping experience. They should be trained to be attentive to the customer's needs.

5. In-store technology-It is the perfect way to attract the attention of today’s tech-savvy
customers. Incorporating in-store techs like tablets and interactive screens can help customers
make the right choice.

6. Creating the right shopping ambiance-Everything from the lighting, sound, smell, and hygiene
should be on point in a retail store. A neat, de cluttered environment will attract more customers.
The lighting shouldn't be too harsh or soft. Soft and slower music is known to cause buyers to
spend more time in the store, increasing sales.

7. Implementing “Try before you Buy”-Customers are more likely to buy the product after trying
it on themselves. Retailers can provide safe and comfortable trial rooms as a strategic move to
increase sales. It is one of the easiest and most effective retail merchandising practices to follow
to increase sales.

8. Monitoring sales per category-Retailers should always track which products in their stores
generate more sales. They can use Key metrics such as KPIs (Key performance indicators). This
way, retailers can focus on stocking up on these products that bring more sales.

9. Developing a customer-centric merchandising strategy- Involving customers in creating a

merchandising strategy is the most effective way to ensure its success. Brands are now realizing

Page 27 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
the importance of customer opinions and leveraging them to create effective merchandising
strategies.

10. Create Engaging retail displays-Attractive retail displays that add to the shoppers’ experience
are a rage in the retail sector nowadays. Large life-size models or appealing props like neon signs
create a picture-worthy background for shoppers. Some retail stores even assemble a small cozy
set-up that resembles a table at a coffee shop or a living room corner.

2.3.2. Point of sale tracking

Another benefit of overnight replenishment in the fashion industry is the ability to track sales
data at the point of sale. This means that retailers can gather real-time information about which
products are selling well and which ones are not, allowing them to make informed decisions
about inventory management and product assortment. With point of sale tracking, retailers can
quickly identify trends and customer preferences, enabling them to adjust their purchasing
decisions accordingly.

They can stock up on popular items and reduce or eliminate underperforming products, leading
to more efficient inventory management and increased sales. Point of sale tracking also helps
retailers to optimize their pricing strategies. By analysing sales data, they can determine the
optimal pricing for each product, maximizing profitability and ensuring competitive pricing in
the market.

Furthermore, point of sale tracking allows retailers to identify potential issues or challenges in
their sales process. They can track things like return rates, customer complaints, and product
defects, enabling them to address these issues promptly and improve customer satisfaction.

Overall, point of sale tracking through overnight replenishment enhances retailers' ability to
make data-driven decisions, improve inventory management, and enhance customer satisfaction.
It is a valuable tool for optimizing operations and driving profitability in the fashion industry.

2.3.3. Instant communication of sales back to manufacturers

Another benefit of overnight replenishment in the fashion industry is the ability to instantly
communicate sales data back to manufacturers. This allows manufacturers to quickly analyse

Page 28 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
which products are selling well and which ones are not, enabling them to make informed
decisions about production and inventory levels.

By receiving real-time sales data, manufacturers can adjust their production schedules and
prioritize the production of popular items. This helps to prevent overstocking or under stocking
of certain products, leading to more efficient inventory management and reduced costs.

Instant communication of sales data also allows manufacturers to identify emerging trends and
customer preferences. They can quickly respond to market demands by producing new styles or
variations of popular products, ensuring that retailers have access to the latest fashion trends.

Overall, instant communication of sales data through overnight replenishment helps to streamline
the supply chain and improve collaboration between retailers and manufacturers. It enables both
parties to make data-driven decisions and optimize their operations for maximum profitability.

2.3.4. Overnight replenishment

Overnight replenishment in merchandising in the fashion industry refers to the process of

restocking store shelves and displays with fresh merchandise during the overnight hours when
the store is closed to customers. This practice allows retailers to maintain a well-stocked and
visually appealing store environment for customers during regular business hours.

During overnight replenishment, store employees typically receive deliveries of new

merchandise from distribution centres or suppliers. They then unpack and sort the merchandise,
replenish shelves and displays, and ensure that products are properly tagged and priced. This
process may also involve restocking fitting rooms, organizing backrooms, and conducting
inventory checks.

Overnight replenishment is particularly important in the fast-paced fashion industry, where

trends and customer preferences can change rapidly. By restocking merchandise overnight,
retailers can ensure that customers have access to the latest fashion products and styles as soon as
they hit the market.

Additionally, overnight replenishment allows retailers to take advantage of quieter store hours to
complete restocking tasks without disrupting the shopping experience for customers. This can
help improve operational efficiency and minimize disruptions during peak business hours.

Page 29 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Overall, overnight replenishment plays a crucial role in maintaining a well-managed and visually
appealing store environment in the fashion industry. It helps retailers meet customer demand,
optimize inventory levels, and enhance the overall shopping experience.

2.3.5. Just-in-time system

Just-in-time (JIT) system in merchandising is a supply chain management strategy that aims to
minimize inventory and production costs by receiving goods or materials just in time for
production or sale. In the fashion industry, this system involves closely coordinating the
production and delivery of fashion products to meet customer demand and reduce excess
inventory.

In a JIT system, fashion brands and retailers work closely with suppliers and manufacturers to
ensure that raw materials and components are delivered only when they are needed for
production. This helps to eliminate excess inventory and reduce the costs associated with storing
and managing large quantities of products.

The JIT system in the fashion industry requires accurate forecasting and demand planning to
ensure that the right products are produced in the right quantities at the right time. This involves
analysing market trends, customer preferences, and historical sales data to determine the
expected demand for specific fashion products.

By implementing a JIT system, fashion brands can reduce lead times, improve efficiency, and
minimize waste. This allows them to respond quickly to changing market demands, introduce
new products more frequently, and reduce the risk of overstocking or selling out of popular
items.

Overall, the JIT system in merchandising in the fashion industry helps brands and retailers
optimize their supply chain operations, improve profitability, and enhance customer satisfaction
by ensuring that products are available when and where customers want them.Just-in-time, or
JIT, refers to an inventory management system where production happens in small batches as per
the demand. The primary purpose of installing this system is to upgrade efficiency, control
production, and reduce wastage arising during production.

Page 30 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 Figure 4: just in time

2.4. Merchandising budget is determined used for fashion design product.

The merchandising budget is a financial plan that determines how much money will be allocated
for various aspects of the fashion design product. It includes the costs associated with sourcing
materials, manufacturing the product, marketing and advertising expenses, distribution and
logistics costs, as well as any other expenses related to bringing the product to market.
The merchandising budget is typically determined based on several factors, including the target
market, the desired quality and design of the product, production volume, and the overall
business goals and objectives.

The budget is crucial in ensuring that the fashion design product is developed and launched
successfully. It helps the fashion brand or retailer allocates resources effectively, ensuring that
there is enough funding for each stage of the product's lifecycle.
The merchandising budget also plays a significant role in determining the pricing strategy for the
fashion design product. The costs associated with manufacturing, marketing, and distributions
are taken into account when setting the retail price. The budget helps ensure that the product is
priced competitively while still allowing for a reasonable profit margin.
The merchandising budget helps manage inventory levels and control costs. It allows for
accurate forecasting and planning, ensuring that the right amount of inventory is ordered and
produced to meet demand. This helps prevent overstocking or under stocking issues, which can
lead to financial losses. Overall, the merchandising budget is a critical tool in managing the

Page 31 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
financial aspects of fashion design products. It helps determine how resources are allocated, sets
pricing strategies, and ensures efficient inventory management, ultimately contributing to the
success and profitability of the fashion brand or retailer.
When it comes to identifying the merchandising budget for fashion design, designers need to
consider various factors such as production costs, marketing expenses, and overall business goals
specially in leather sector.
Firstly, designers need to determine the cost of producing their designs. This includes factors
such as pattern and fabric sourcing, manufacturing, labor costs, and any additional expenses like
embellishments or trims. By understanding the production costs, designers can estimate how
much budget they need to allocate for each design.
Secondly, designers should consider their marketing expenses. This includes costs associated
with promoting and showcasing their designs, such as fashion shows, photo shoots, advertising,
and social media campaigns. Designers need to allocate a portion of their budget to effectively
market their designs and reach their target audience.
Additionally, designers should consider their overall business goals and financial projections.
They need to assess how much profit they aim to make from each design and set their
merchandising budget accordingly. This involves considering factors like pricing strategies, sales
projections, and profit margins.
The following steps can be taken:
Fashion brands and retailers can create a comprehensive merchandising budget that covers all
aspects of the product's development and launch, ensuring efficient resource allocation and
ultimately contributing to the success of the fashion design product.
Define the target market: Identify the specific demographic or customer segment that the product
is intended for. This will help determine the appropriate quality, design, and price range for the
product.
Set business goals and objectives: Determine the overall objectives of the fashion brand or
retailer. This could include increasing market share, expanding into new markets, or achieving a
certain level of profitability. These goals will guide the budget allocation process.
Conduct market research: Gather information on industry trends, competitor pricing, and
consumer preferences. This will provide insights into the expected demand for the product and
help set realistic sales targets.
Page 32 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Estimate production costs: Determine the cost of sourcing materials, manufacturing the product,
and any associated labour expenses. This can be done by obtaining quotes from suppliers and
manufacturers or using historical data if available.
Calculate marketing and advertising expenses: Consider the costs of promoting the product
through various channels such as print and digital advertising, social media marketing, influencer
collaborations, and events. Budget for photography, graphic design, and any other creative
services needed for marketing materials.
Determine distribution and logistics costs: Consider the expenses associated with shipping,
warehousing, and fulfilling orders. This may include transportation costs, packaging materials,
and any fees charged by third-party logistics providers.
Account for other expenses: Identify any additional costs related to bringing the product to
market. This could include trade show participation fees, product samples, packaging design, or
legal and regulatory compliance costs.

Allocate resources: Once all expenses have been estimated, allocate funds to each aspect of the
merchandising process based on their importance and priority. Consider any constraints or
limitations on the budget and make adjustments as necessary.

Monitor and adjust: Regularly review the actual expenses incurred against the budgeted amounts.
Make adjustments as needed to ensure that resources are being allocated effectively and in line
with business goals.

Page 33 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Self-check-2
Name……………………………………ID………………………Date…….time allow 20.min
Direction I:-answer say true or false (Total Points: 2X5=10)

Developing merchandising plans based on identified buying patterns, fashion brands and
retailers.

The merchandising budget is a financial plan the fashion design product

Just in time system, fashion brands can reduce lead times, improve efficiency, and minimize
waste.

Distribution and logistics costs not consider the expenses associated with shipping, warehousing,
and fulfilling orders.

Indirect channel the manufacturer has total control over the distribution of its products,

Direction II:-Choose the best answer (Total Points: 2X7=14)

Which one is the develop merchandising to Adjust strategies as needed based on on-going
analysis of buying patterns and customer response.
Page 34 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
A, Monitor and analyse results B, Pricing strategy C, Plan inventory D, Visual merchandising

Which one is to identify merchandising opportunities and gaps is to understand who your target
customers are, what they want, and how they shop.

A, Monitor the performance B, Start a contribution C, Scan the environment

D, Test the ideas

One of the distribution channel outlet fashion products the retailer sources the clothes directly
from the manufactures.

A, direct channel B, Indirect channel C, Hybrid channel D, all

The current merchandising practices and trend for relevance to fashion products in terms of retail
merchandising

A, The Right product B, The Right Audience C, The Right way D, The Right Time

E, all is the answerer

One of Merchandising in the fashion industry refers to the process of restocking store shelves
and displays with fresh merchandise during the overnight hours when the store is closed to
customers.

A, Just-in-time system B, Point of sale tracking C, Overnight replenishment

Fashion brands and retailers work closely with suppliers and manufacturers to ensure that raw
materials and components are delivered only when they are needed for production.

A, In-store technology B, Point of sale tracking C, Overnight replenishment D, Just-in-time

system

Which one is the merchandising budget is a financial plan that determines how much money will
be allocated for various aspects of the fashion design product.

A, the target market B, estimate production cost C, conduct market D, distribution and logistics
cost E, all are steps of merchandising budget in fashion design products

Direction II: -Answer all the questions listed below. (Total Points: 2X4=8)
Write the steps of to develop merchandising?

Discuss how to develop merchandising plans

Discuss Fashion promotion strategies

Page 35 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Write the merchandising objectives in fashion industry

Page 36 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Unit three: Develop a merchandising plan
This unit is developed to provide you the necessary information regarding the following content
coverage and topics:

 In-store presentation of fashion design is determined and applied in display space.

 The way of Advertising and promotion of fashion design is determined.
 Merchandising plan is developed which details presentation, promotional and
advertising activities
This unit will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:

 Understand and apply in-store presentation of fashion design.

 Understand the way of determining advertising and promotion of fashion design
 Identify developing merchandising plan presentation and promotional activities

Page 37 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 3.1. In-store presentation of fashion design is determined and applied in
display space

3.1.1What is merchandise planning?

Merchandise planning is a systematic approach to planning, buying, and selling merchandise
based upon consumer demand. It means that if a customer wants to buy product X with color Y
and size Z from your shop, you have that available when they come knocking.
To develop a merchandising plan, follow these steps:
Set goals: Determine the objectives of your merchandising plan. Are you aiming to increase
sales, improve customer satisfaction, or expand market share? Clearly define your goals to guide
your merchandising efforts.

Research target market: Understand your target market's demographics, preferences, and buying
behaviors. Conduct market research, analyze customer data, and gather insights to identify their
needs and preferences.

Analyze competition: Study your competitors' merchandising strategies and offerings. Identify
gaps in the market or areas where you can differentiate yourself to attract customers.

Determine product assortment: Based on your research, select the fashion products that align
with your target market's preferences and fulfill their needs. Consider factors like trends,
seasonality, and customer demand.

Set pricing strategy: Determine the pricing for your fashion products based on factors like
production costs, competition, perceived value, and target market's willingness to pay. Ensure
your prices are competitive and aligned with your brand positioning.

Plan inventory management: Forecast demand for each fashion product based on historical data,
market trends, and customer preferences. Set appropriate inventory levels to avoid stock outs or
excess inventory.

Create visual merchandising displays: Develop visually appealing displays that showcase your
fashion products effectively. Use creative techniques like color coordination, product grouping,
and strategic placement to attract attention and encourage purchases.
Page 38 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Implement promotional strategies: Develop promotions and marketing campaigns to drive sales
and create brand awareness. Consider offering discounts, bundle deals, loyalty programs, or
collaborations with influencers or other brands. Monitor performance: Continuously track sales
data, customer feedback, and market trends to evaluate the effectiveness of your merchandising
plan. Identify areas of improvement and make necessary adjustments to optimize results.

Train staff: Ensure your staff is well-trained on your merchandising plan, product knowledge,
and customer service. They should be able to effectively communicate with customers, provide
product recommendations, and handle inquiries.

Review and refine: Regularly review your merchandising plan and make adjustments as needed.
Stay updated on industry trends, customer preferences, and market dynamics to stay ahead of the
competition.

Store design and layout tells a customer what the store is all about and it is very strong tool in the
hands of the retailer for communicating and creating the image of the store in the mind of the
customers. The design and layout of the store is a means of communicating the image of the
retail store.

The environment which it creates in the retail store is a combination of the environment which it
creates in the retail store, is a combination of the exterior look of the store, the store interiors, the
atmosphere in the store and the events, promotions and the themes. The overall look of a store
and the series of mental pictures and feelings it evokes within the beholder. For the retailer,
developing a powerful image provides the opportunity to embody a single message, stand out
from the competition and be remembered.

3.1.2. Store layout, display spaces and customer flow

Analyzing store layout, display spaces, and customer flow is an important aspect of establishing
distribution requirements in fashion design. The way a store is laid out and products are
displayed can greatly impact the customer's shopping experience and ultimately affect sales.

Designers need to consider the overall store layout and how it aligns with their brand image and
target audience. For example, a high-end luxury brand may opt for a more spacious and

Page 39 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
luxurious store layout, while a trendy fast-fashion brand may choose a more compact and
energetic layout.

The placement of display spaces is crucial in attracting customers' attention and showcasing the
products effectively. Designers should strategically position their products in prominent areas of
the store, such as near the entrance or in eye-catching displays, to maximize visibility and create
a strong visual impact.

Analyzing customer flow is essential for optimizing the shopping experience. Designers should
study how customers move through the store, identifying potential bottlenecks or areas where
customers may lose interest. This information can help designers rearrange the store layout or
adjust display spaces to create a more seamless and engaging shopping experience.

In addition to store layout and display spaces, designers should also consider factors such as
lighting, signage, and product placement. These elements contribute to the overall ambiance of
the store and can influence customers' perceptions of the brand and its products.

By analyzing store layout, display spaces, and customer flow, designers can create an
environment that enhances the shopping experience, encourages customer engagement, and
ultimately drives sales.

There are three basic types of store layouts:

 The grid, commonly used in supermarkets because of its intuitive layout

 The loop, which creates a singular, predictable path optimized for browsing
 The free flow, where the shopping experience is more relaxed and casual

Less common store layouts include the set path, as seen in Ikea. There’s also the boutique, where
the space is segmented according to different assortment areas. Whichever layout you choose, it
must reflect your products, brand identity and customer needs.

Three goals of store are:-

 Motivate the customer to spend money

 Protect the image of the store

Page 40 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
  Keep expenses to minimum

As an illustration, researchers found that 64.8% of all the purchase decision were made inside a
supermarket. Most people indicated they purchased the item because they saw it displayed. 67%
of liquor purchased from the liquor shop is impulse items. Combining advertising and display
into an integrated promotional campaign will usually be more effective.

Color and Lighting: Color contributes significantly to people’s impression of a display as well
as stores overall appearance. Color in a display can catch eye and make people pause and look.
The color combination of ceiling, walls, floor covering and the overall décor can affect the
atmosphere of a store. Changing the color scheme can change people’s attitudes and perceptions
of a store and can increase or decrease the business. Color can change the shape and interest to
dull room, and can direct attention toward a specific object or away from problem areas. Warm
colors (red, yellow, orange etc.) are stimulating and cheery. They make room feel warm and
intimate. They make room look smaller and object inside larger

Lighting: Lighting is essential in calling attention to merchandise in a display. A shopper’s eye

is drawn automatically to the brightest item or area. Lighting treatment may be used to draw
attention to the part of display area or to coordinate the parts of total display area. Lighting can
also be used to direct the path of the customers and to make them see various displays along the
way.

Page 41 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Figure 5: Color and Lighting

There are three types of lighting used:

1. Primary lighting
2. Store illumination
3. Atmosphere lighting

Primary lighting: Primary lighting is the overall level of illumination of the store using
fluorescent or incandescent light sources. Outside, it includes 150 watt bulbs used as basic
window lighting, marquee lights illuminating the sidewalks and lighting for generals lobby area.
Inside the store primary lighting is that which fills the selling floor from overhead lighting
fixtures and provides the bare essentials of store illumination.

Accent or secondary lighting: this type of lighting provides illumination for designated display
areas. Flat, shadow less overall lighting can create a tiresome selling floor. Accent lighting
provides change from light to dark highlight to shadows to prevent the boredom.

Atmosphere Lighting: Atmosphere lighting is used to play light against shadow to create a
distinctive effect on specific displays. Generally this category includes the use of color filters,

Page 42 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
pinpoint spotlights and black lighting to create dramatic effects. Fluorescent lights are used for
primary lighting, as they cannot be focused directly on an object.

Figure 6: Atmosphere lighting

Props and Fixtures: Prop is something used with a product in a display that clarifies the
function of the merchandise being sold or the story being told. Props are integral part of a
display. They are used in virtual merchandising to tell a story about the product a display prop
may be something that is not for sale, such as floor coverings, wall treatments, backgrounds,
mannequins, shelves and steps. When using saleable merchandise as prop, be sure it is
appropriate for the theme of the display and is sufficient quantity to meet an increase in demand
arising from the display.

There are three basic types of store layouts:

 The grid, commonly used in supermarkets because of its intuitive layout

 The loop, which creates a singular, predictable path optimized for browsing
 The free flow, where the shopping experience is more relaxed and casual

Page 43 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Less common store layouts include the set path, as seen in Ikea. There’s also the boutique, where
the space is segmented according to different assortment areas. Whichever layout you choose, it
must reflect your products, brand identity and customer needs.

Figure 7: Props and Fixtures

3.1.3. Fixtures, fittings and mannequins for display of fashion products

Goods can be effectively displayed on a variety of fixtures such as gondolas, tables, cubes, and
mannequins, waterfalls and other racks, display cases. A fixture should not only complement the
merchandise but also create an atmosphere in the store. It should act as silent sales person. One
of the most common fixtures in store are gondolas; movable shelving approachable from all sides
used in self-service retail stores to display merchandise. They can be lined up in stores as grocery
or hardware stores.

Retail store fixtures are used to display products. They come in many shapes and sizes, so no
matter what you’re selling, there’s bound to be a perfect fit. Effective retail display fixtures make
your products irresistible to customers. They should highlight your merchandise’s best features,
optimize your store layout and drive conversions.

 Retail shelves for showcasing a range of products in a neat and organized way.
 Display cases for protecting valuable items while driving exclusivity and curiosity.
Page 44 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
 Display stands for special promotions, seasonal campaigns or mid-floor POP stands.
 Retail counters for upselling last-minute items at checkout.
 Mannequins for showing customers how your merchandise is meant to look.
 Product towers for guiding customers through a personalized store journey.

Figure7: Retail store fixtures

Mannequins come in many forms and the decision about which mannequins suit your
brand the best might seem overwhelming. So, we’ve put together this guide to lay out why
mannequin hire can benefit your brand and the many types of mannequins available to rent.

Page 45 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Figure 8: Mannequins for display of fashion products

3.1.4. Presentation visuals and arrangements for optimal display of fashion design
products
Visual merchandising is the practice of displaying your product and organizing your store to
drive sales, enhance your brand, and provide a stimulating and enjoyable shopping experience
for customers. This article and our corresponding video outline a dozen of the most important
visual merchandising techniques and how you can implement them in your business.

Figure 9: visuals and arrangements for optimal display of fashion design products

Page 46 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
3.1.5. Packaging and folding requirements
The in-store presentation of fashion designs, it is also important to consider the packaging and
folding requirements of the products. These packaging and folding requirements, you can ensure
that your fashion designs are presented professionally and protected during the purchasing
process.
Here are some key considerations:
o Choose appropriate packaging materials: Select packaging materials that are durable and
protect the fashion designs during transportation and storage. Consider using boxes, bags,
or tissue paper that align with your brand aesthetic and provide a premium feel.
o Ensure proper folding techniques: Train your staff on proper folding techniques to
maintain the quality and appearance of the fashion designs. This includes folding
garments neatly and avoiding wrinkles or creases.
o Use tissue paper or garment bags: Use tissue paper or garment bags to wrap delicate or
high-end fashion designs. This adds an extra layer of protection and enhances the
presentation when customers receive their purchases.
o Include branding elements: Incorporate your brand logo, name, or tagline on the
packaging materials. This helps reinforce brand recognition and creates a cohesive
experience from the moment customers receive their purchases.
o Consider sustainability: In today's environmentally conscious market, consider using
sustainable packaging materials such as recycled or biodegradable options. This can help
attract eco-conscious customers and align with their values.
o Provide clear instructions: If your fashion designs require specific care instructions or
assembly, include clear instructions in the packaging. This ensures that customers can
properly care for and enjoy their purchases.
o Customize packaging for special occasions: Consider offering special packaging options
for holidays or special occasions. This can include gift wrapping services or themed
packaging that adds a personal touch and enhances the overall customer experience.
o Streamline packaging processes: Optimize your packaging processes to ensure efficiency
and minimize errors. This can include implementing standardized packaging procedures,
using labeling systems, or investing in packaging automation technology.

Page 47 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
3.2. The way of Advertising and promotion of fashion design is determined.
Fashion advertising is a sub-branch of the advertising field with the purpose of creating
promotion for the fashion brand, such as garments, jewelry, shoes, purses, perfumes, and many
more in the fashion industry. The goal of fashion advertising is to connect potential customers in
different social classes with that specific brand.

The advertising and promotion of fashion designs can be determined through various methods
and strategies. Important for fashion designers to carefully consider their target audience and
choose advertising and promotion methods that align with their brand image and values. By
utilizing a mix of these strategies, designers can effectively reach and engage with potential
customers, ultimately driving sales and success in the market.

Here are some common approaches:

 Print Advertising: Fashion designs can be advertised through print publications such as
magazines or newspapers. Advertisements can feature high-quality images of the designs
along with relevant information such as pricing and availability.
 Online Advertising: With the rise of digital platforms, online advertising has become a
popular way to promote fashion designs. This can include banner ads on websites,
sponsored posts on social media platforms, or collaborations with fashion influencers or
bloggers.
 Social Media Marketing: Social media platforms such as Instagram, Facebook, and
Pinterest provide opportunities for fashion designers to showcase their designs to a large
audience. By creating engaging content, utilizing hash tags, and collaborating with
influencers, designers can increase brand awareness and drive traffic to their online stores
or websites.
 Fashion Shows and Events: Fashion shows and events provide a platform for designers to
showcase their collections to industry professionals, media, and potential customers.
These events can generate buzz and excitement around the designs, leading to increased
interest and sales.
 Public Relations: Building relationships with media outlets and fashion influencers can
help generate positive press coverage and increase brand visibility. This can be achieved

Page 48 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 through press releases, media pitches, or collaborations with influential individuals in the
fashion industry.
 Collaborations and Partnerships: Collaborating with other brands or designers can help
expand the reach of fashion designs. This can involve co-creating limited-edition
collections, cross-promoting each other's products, or hosting joint events.
 Email Marketing: Building a strong email list allows designers to directly communicate
with their customers and promote new designs or special offers. Personalized emails can
be sent to subscribers to keep them engaged and encourage repeat purchases.
 Influencer Marketing: Working with fashion influencers who have a large following and
align with the brand's aesthetic can help increase brand exposure and credibility.
Influencers can promote the designs through sponsored posts, product reviews, or
collaborations.

Figure 10: Advertising and promotion of fashion design

3.2.1. Promotional activities to support sales of fashion design

By implementing these promotional activities, fashion designers can support their sales efforts
and create a strong brand presence in the market. It's important to regularly evaluate the
effectiveness of these strategies and adjust them based on customer feedback and market trends

 Sales and Discounts: Offering sales and discounts on fashion designs can help attract
customers and encourage them to make a purchase. This can be done through seasonal
sales, clearance events, or exclusive discounts for loyal customers.

Page 49 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
  Fashion Styling and Personal Shopping Services: Providing fashion styling services or
personal shopping experiences can enhance the customer's shopping experience and
increase the likelihood of a purchase. This can be done through in-store consultations or
online virtual styling sessions.
 Loyalty Programs: Implementing a loyalty program can incentivize customers to make
repeat purchases. This can include offering exclusive discounts, early access to new
collections, or rewards for referrals.
 Pop-up Shops and Trunk Shows: Hosting pop-up shops or trunk shows in different
locations allows designers to showcase their designs to a new audience. These events can
create a sense of exclusivity and urgency, leading to increased sales.
 Collaborations with Retailers: Partnering with established retailers or boutiques can help
designers reach a wider customer base. By having their designs stocked in retail stores,
designers can benefit from the stores existing customer traffic and brand credibility.
 Influencer gifting and Product Seeding: Sending fashion designs as gifts to influencers or
celebrities can generate buzz and exposure for the brand. If these individuals are seen
wearing or promoting the designs, it can lead to increased interest and sales.
 Fashion Design Competitions: Participating in fashion design competitions or submitting
designs to industry awards can help gain recognition and exposure for the brand. Winning
or being shortlisted in these competitions can provide valuable publicity and credibility.
 Customer Reviews and Testimonials: Encouraging customers to leave reviews or
testimonials about their experience with the fashion designs can help build trust and
credibility. Positive reviews can also attract new customers and increase sales.

3.2.1. Promotional and advertising materials appropriate to fashion design product

and client marketing objectives
High-quality product photography: Showcase the fashion designs in a visually appealing and
professional manner to attract potential customers. This can be done through a look book or an
online gallery on the designer's website or social media platforms.

Social media campaigns: Utilize social media platforms such as Instagram, Facebook, and
pinterest to promote the fashion designs. This can include posting outfit inspiration, behind-the-
scenes content, or collaborations with influencers.

Page 50 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Fashion shows and runway presentations: Organize fashion shows or runway presentations to
debut new collections and generate buzz around the brand. Invite industry professionals, press,
and potential customers to attend the event.

Print advertisements: Place advertisements in fashion magazines or local newspapers to reach a

wider audience. The advertisements should feature eye-catching visuals and compelling copy to
capture the attention of readers.

Email marketing campaigns: Develop a mailing list of customers and send regular newsletters or
promotional emails to keep them informed about new collections, sales, and events. Personalize
the emails to make them more engaging and relevant to each recipient.

Collaborations with fashion bloggers or influencers: Partner with popular fashion bloggers or
influencers to create sponsored content featuring the fashion designs. This can include blog
posts, social media posts, or videos showcasing the designs and promoting them to the
influencer's audience.

Public relations efforts: Engage with fashion journalists, editors, and bloggers to secure press
coverage for the brand. This can include sending press releases, inviting them to fashion shows
or events, or offering exclusive interviews or features.

Online advertising: Utilize online advertising platforms such as Google Ad Words or social
media ads to reach a wider audience. Target specific demographics or interests to ensure that the
ads are seen by potential customers who are likely to be interested in the fashion designs.

Collaborations with other brands or designers: Partner with complementary brands or designers
to create limited-edition collections or collaborations. This can help expand the brand's reach and
attract new customers who are fans of the collaborating brand or designer.

Influencer takeovers: Allow influencers or celebrities to take over the brand's social media
accounts for a day or a week. This can help generate excitement and engagement with the brand's
audience, as well as attract new followers.

By utilizing a combination of these promotional and advertising materials, fashion designers can
effectively market their products and increase sales. It's important to regularly track and analyse
the results of these marketing efforts to ensure they are driving the desired outcomes.

Page 51 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
3.3. Merchandising plan is developed which details presentation, promotional
and advertising activities.
A merchandising plan is a strategic document that outlines the presentation, promotional, and
advertising activities for a fashion design. It is developed to ensure that the fashion design is
effectively showcased and promoted to potential customers.
The presentation aspect of the merchandising plan focuses on how the fashion design will be
displayed in-store or online. This includes deciding on the layout of the store or website,
arranging the fashion designs in an appealing manner, and using visual merchandising
techniques such as mannequins or display boards to showcase the designs. The goal is to create
an attractive and visually appealing environment that captures the attention of customers and
encourages them to explore and purchase the fashion designs.
The promotional activities outlined in the merchandising plan involve determining how the
fashion designs will be advertised and promoted to target customers. This can include creating
marketing materials such as flyers, catalogues, or digital advertisements, as well as utilizing
social media platforms or influencer collaborations to increase brand awareness. The plan should
also consider any special promotions or discounts that will be offered to entice customers to
make a purchase.
Advertising activities are an important component of the merchandising plan, as they help to
create awareness and generate interest in the fashion designs. This can involve placing
advertisements in print publications, online platforms, or on billboards. The plan should also
outline any collaboration with media outlets or influencers to further promote the fashion
designs.
In addition to presentation, promotion, and advertising activities, the merchandising plan may
also include details on pricing strategies, inventory management, and sales forecasting. These
aspects are important for ensuring that the fashion designs are priced competitively, that there is
sufficient stock available to meet customer demand, and that sales goals are set and monitored.
Overall, a well-developed merchandising plan is essential for effectively promoting and selling
fashion designs. It provides a roadmap for how the fashion designs will be presented, promoted,
and advertised, ensuring that customers are aware of and interested in the products. By carefully
considering these aspects and implementing the plan effectively, fashion designers can increase
their chances of success in the market

Page 52 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Self-check-3
Name…………………………………………… ID…………… Date…….allowed time 20min
Direction I: - answer say true or false (Total Points: 2X4=8)

1. Print advertising the rise of digital platforms, online advertising has become a popular way to
promote fashion designs

2. Implementing a loyalty program can incentivize customers to make repeat purchases.

3. Offering sales and discounts on fashion designs can help attract customers

Direction II: - Choose the best answer (Total Points: 2X4=8)

1. Which one is merchandising planning in trams of understands your Conduct market

research, analyze customer data, and gather insights to identify their needs and
preferences.
A, Research target market B, Analyze competition C, Set pricing strategy D, Implement
promotional strategies
2. Which one is Retail store fixtures are used to display products?
A, Display stands for special promotions B, Retail shelves for showcasing
C, Mannequins for showing customers D, all the retail store fixtures display products
3. In-store presentation of fashion designs, it is also important to consider the packaging and
folding requirements of the products one is select packaging materials that are durable
and protect the fashion designs during transportation and storage.
A, Customize packaging for special occasions B, Ensure proper folding techniques
C, Choose appropriate packaging materials D, Streamline packaging processes
4. One of advertising Building relationships with media outlets and fashion influencers can
help generate positive press coverage and increase brand visibility
A, Fashion Shows and Events B, Public Relations C, Print Advertising D, Online
Advertising
Direction III: -short answer all the questions listed below. (Total Points: 2X5=10)
1. What is merchandise planning?
2. Discuss store presentation of fashion design?

Page 53 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 3. Discuss Fixtures, fittings and mannequins for display of fashion products?
4. Explain Promotional activities to support sales of fashion design?
5. Discuss Merchandising plan is developed which details presentation, promotional and
advertising activities?

Page 54 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Unit four: Assess, document and store merchandising plan
This unit is developed to provide you the necessary information regarding the following content
coverage and topics:
 Assesse and present merchandising plan
 Document and report merchandising plan
This unit will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:
 Understand Assesse and presented merchandising plan
 Apply Document and reports merchandising plan

Page 55 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
4.1. Understand Assesse and presented merchandising plan
Assessing, documenting, and storing a merchandising plan is essential for retail businesses to
ensure effective execution and future reference. Here is a step-by-step guide on how to carry out
these tasks:
Assess the merchandising plan: Review the plan thoroughly to understand its objectives,
strategies, and tactics. Evaluate the feasibility and alignment of the plan with the overall business
goals. Identify any potential challenges or risks associated with the plan.
Document the merchandising plan: Create a comprehensive document that outlines all aspects of
the plan. Include details such as product assortment, pricing strategy, promotional activities,
visual merchandising guidelines, and target audience. Use clear and concise language to ensure
easy understanding by all stakeholders.
Store the merchandising plan: Choose a secure and easily accessible location to store the
document. Consider using digital storage options like cloud-based platforms or shared drives for
easy sharing and collaboration with team members. Ensure that the document is regularly
updated to reflect any changes or adjustments made to the plan.
Communicate the merchandising plan: Share the documented plan with relevant team members,
such as store managers, visual merchandisers, and sales staff. Conduct training sessions or
meetings to ensure everyone understands their roles and responsibilities in executing the plan.
Encourage feedback and suggestions from team members to improve the plan's effectiveness.
Monitor and evaluate the merchandising plan: Regularly track and assess the progress of the
plan's implementation. Monitor key performance indicators (KPIs) such as sales figures,
customer feedback, and inventory levels to measure the plan's success. Make necessary
adjustments or modifications to the plan based on the evaluation results.
Update and store revised versions: As changes are made to the merchandising plan, update the
document accordingly. Clearly mark each version with a date and description to keep track of
revisions. Store all versions of the plan in chronological order for future reference and analysis.
These steps, businesses can effectively assess, document, and store their merchandising plan,
ensuring smooth execution and the ability to learn from past experiences.

An effective merchandising plan is crucial for retail businesses to meet their marketing
objectives, timing, and budget requirements.

Page 56 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Here is a detailed explanation of how to assess an effective merchandising plan:

1. Marketing Objectives: Start by reviewing the marketing objectives outlined in the plan. These
objectives should align with the overall business goals. Evaluate whether the objectives are
specific, measurable, attainable, relevant, and time-bound (SMART). Assess if the plan includes
strategies and tactics that support the achievement of these objectives.

2. Timing: Consider the timeline provided in the plan. Evaluate if it allows sufficient time for
each stage of the merchandising process, such as product development, sourcing, production, and
distribution. Assess if the timing aligns with market trends, seasonal demands, and promotional
activities. Identify any potential bottlenecks or delays that may hinder the timely execution of the
plan.

3. Budget Requirements: Review the budget allocated for executing the merchandising plan.
Evaluate if the budget is realistic and sufficient to cover all necessary expenses, such as product
costs, marketing materials, visual merchandising displays, and promotional activities. Identify
any areas where cost-saving measures can be implemented without compromising the quality or
effectiveness of the plan.

4. Feasibility: Assess the feasibility of implementing the plan based on available resources,
capabilities, and constraints. Evaluate if the plan considers factors such as production capacity,
inventory management, staffing requirements, and technological capabilities. Identify any
potential challenges or risks that may affect the feasibility of executing the plan and propose
mitigation strategies.

5. Alignment with Target Audience: Evaluate if the plan takes into account the preferences,
needs, and behaviours of the target audience. Assess if the product assortment, pricing strategy,
promotional activities, and visual merchandising guidelines align with the target audience's
expectations and preferences. Identify any gaps or opportunities to better cater to the target
audience's demands and preferences.

6. Measurement and Evaluation: Determine the key performance indicators (KPIs) that will be
used to measure the success of the merchandising plan. Establish a system for tracking and
evaluating these KPIs, such as sales figures, customer feedback, conversion rates, and inventory

Page 57 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
turnover. Regularly monitor and analyse the data to assess the effectiveness of the plan in
meeting marketing objectives and driving business growth.

By thoroughly assessing an effective merchandising plan in terms of marketing objectives,

timing, and budget requirements, businesses can ensure that their plan is well-aligned, feasible,
and capable of driving desired outcomes.
Merchandising plan is presented to client proposals

Once the merchandising plan has been developed, it should be presented to the client for review
and feedback. This presentation should be done in a clear and organized manner, ensuring that
all aspects of the plan are explained thoroughly.

During the presentation, it is important to highlight the key objectives and goals of the plan, as
well as the strategies and tactics that will be used to achieve them. This includes discussing the
product assortment, pricing strategy, promotional activities, visual merchandising guidelines, and
distribution channels that have been proposed.

The presentation should also include a discussion of the budget requirements and how the
allocated funds will be used for various merchandising activities. This allows the client to
understand the financial implications of the plan and make any necessary adjustments or
revisions.

Throughout the presentation, it is important to actively listen to the client's feedback and
integrate their response into the proposals. This may involve making changes to the product
assortment, adjusting pricing strategies, or modifying promotional activities based on the client's
preferences or specific needs.

By incorporating the client's input into the proposals, it demonstrates a willingness to collaborate
and tailor the plan to their specific requirements. This helps to build trust and ensures that the
final merchandising plan meets their expectations and aligns with their overall marketing
objectives.

Once the client's response has been integrated into the proposals, it is important to document
these changes and revise the merchandising plan accordingly. This ensures that all parties
involved have a clear understanding of the agreed-upon plan and can proceed with its
implementation.
Page 58 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022
Overall, presenting the merchandising plan to the client and integrating their response into
proposals is a crucial step in the development process. It allows for open communication,
collaboration, and ensures that the final plan meets the client's needs and expectations.

4.2. Document and report merchandising plan

The merchandising plan should be documented in a clear and organized manner, following
industry practices. This includes providing detailed information about each aspect of the plan,
such as product assortment, pricing strategy, promotional activities, visual merchandising
guidelines, and distribution channels.

The plan should outline specific goals and objectives for each area of merchandising, such as
increasing sales, improving customer satisfaction, or expanding market share. These objectives
should be measurable and time-bound, allowing for easy evaluation of their success.

Additionally, the plan should include a comprehensive timeline that outlines the key milestones
and deadlines for each stage of the merchandising process. This ensures that all tasks are
completed in a timely manner and allows for proper coordination and allocation of resources.

The budget requirements should be clearly stated, including details on how the allocated funds
will be used for various merchandising activities. This includes costs for product development,
sourcing, production, marketing materials, visual merchandising displays, and promotional
activities. The budget should be realistic and take into account any potential cost-saving
measures that can be implemented without compromising quality or effectiveness.

Furthermore, the plan should consider the feasibility of implementation based on available
resources and capabilities. This includes assessing factors such as production capacity, inventory
management, staffing requirements, and technological capabilities. Any potential challenges or
risks should be identified, along with proposed mitigation strategies to address them.

Page 59 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Figure 11:- Merchandising plan
Importantly, the plan should be aligned with the target audience's preferences, needs, and
behaviours. This includes ensuring that the product assortment, pricing strategy, promotional
activities, and visual merchandising guidelines cater to the target audience's expectations and
preferences. Any gaps or opportunities to better meet their demands should be identified and
addressed.

Finally, the plan should establish a system for measuring and evaluating its success. This
includes determining the key performance indicators (KPIs) that will be used to track the
effectiveness of the plan, such as sales figures, customer feedback, conversion rates, and
inventory turnover. Regular monitoring and analysis of these KPIs will allow for on-going
assessment of the plan's impact on marketing objectives and business growth.

In summary, an effective merchandising plan should be documented according to industry

practices, with clear objectives, a comprehensive timeline, realistic budget requirements,
feasibility assessment, alignment with the target audience, and a system for measurement and
evaluation.
Reports on merchandising opportunities

Stakeholders are for review and feedback. These reports provide an overview of the market
trends, competitive landscape, and potential opportunities for merchandising. They also outline

Page 60 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
the strategies and tactics that will be used to capitalize on these opportunities and achieve the
desired objectives.

The reports should be presented in a clear and organized manner, ensuring that all relevant
information is included and explained thoroughly. This includes providing data and analysis on
consumer behaviour, market demand, and competitor activities. It is important to highlight the
key findings and insights from the research conducted, as well as the implications for the
merchandising plan.

During the presentation, it is important to actively listen to the stakeholders' feedback and
address any questions or concerns they may have. This may involve providing additional
information or clarification on certain aspects of the plan. It is also important to be open to
suggestions and ideas from the stakeholders, as they may have valuable insights or perspectives
to contribute.

After the presentation, it is important to document the feedback received and revise the
merchandising plan accordingly. This may involve making changes to the strategies, tactics, or
objectives based on the stakeholders' input. It is important to keep all parties involved informed
of any revisions or adjustments made to the plan.

In addition to presenting the reports and receiving feedback, it is also important to regularly
update stakeholders on the progress and results of the merchandising plan. This can be done
through regular meetings, presentations, or written reports. It is important to keep stakeholders
informed of any challenges or obstacles encountered, as well as any successes or achievements.

By documenting and presenting reports on merchandising opportunities and strategies, and

actively seeking feedback from stakeholders, it ensures that all parties involved have a clear
understanding of the plan and can contribute to its success. This collaborative approach helps to
build trust and ensures that the final plan meets the needs and expectations of all stakeholders.

Page 61 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Figure 12: example report merchandising document

In the fashion industry, a store merchandising plan refers to the strategic approach taken by
retailers to present and promote their fashion products in-store. It involves various elements such
as product selection, visual merchandising, pricing, promotions, and customer experience to
attract and engage shoppers.

When developing a store merchandising plan in the fashion industry, it is important to consider
the following key aspects:

Product Selection: Retailers need to carefully curate their product assortment based on market
trends, customer preferences, and brand positioning. This involves selecting the right mix of
apparel, accessories, and footwear that align with the target market and store concept.

Page 62 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Visual Merchandising: Creating visually appealing displays is crucial in the fashion industry.
Retailers need to design attractive window displays and in-store layouts that showcase their
products effectively. This includes using mannequins, props, signage, and lighting techniques to
create an engaging shopping environment.

Pricing Strategy: Determining the right pricing strategy is essential for success in the fashion
industry. Retailers need to consider factors such as production costs, competitor prices, perceived
value, and target customer segments when setting prices. Promotions and discounts can also be
incorporated to drive sales and attract customers.

Promotions and Events: Fashion retailers often utilize promotional activities and events to create
excitement and generate foot traffic. This can include seasonal sales, fashion shows, trunk
shows, collaborations with influencers or designers, and exclusive product launches. These
initiatives help to create buzz around the store and increase customer engagement.

Customer Experience: Providing an exceptional customer experience is crucial in the fashion

industry. Retailers need to focus on creating a welcoming and personalized environment where
shoppers feel comfortable browsing and trying on clothes. This can involve offering personalized
styling services, comfortable fitting rooms, knowledgeable staff, and convenient payment
options. Online Integration: In today's digital era, integrating online and offline channels is vital
for success in the fashion industry. Retailers should ensure that their online presence aligns with
their in-store merchandising plan. This includes having a user-friendly website, offering online
shopping options, and utilizing social media platforms to promote products and engage with
customers.

To develop an effective store merchandising plan in the fashion industry, it is important to

involve various stakeholders such as store managers, buyers, visual merchandisers, marketing
teams, and even customers. By seeking feedback and input from these stakeholders, retailers can
ensure that the plan meets their expectations and aligns with market trends and customer
preferences. Regular communication and collaboration with stakeholders throughout the
planning and implementation process will help to create a cohesive and successful
merchandising strategy.

Page 63 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Self-check-4
Name…………………………………………… ID………………Date…….time allow 20.min
Direction I: - Answer say true or false. (Total Points: 2X4=8)

1 Store merchandising plan Choose a secure and easily accessible location to store the document.
2. The feasibility of implementing the plan based on available resources, capabilities, and
constraints.
3. The merchandising plan should be documented in a clear and organized industry practices
4. Document the merchandising plan not Create a comprehensive document that outlines all
aspects of the plan
Direction II: -Answer all the questions listed below. (Total Points: 2X4=8)

1. Discuss Assessing, documenting, and storing a merchandising plan?

2. Detailed explanation of how to assess an effective merchandising plan?
3. Discuss Merchandising plan is documented according to industry practices?
4. Detail explains Reports on merchandising opportunities and strategies?

Page 64 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Reference
1. Bell, J. & Ternus, K. 2006. Silent selling. 3rd ed. New York: Fairchild Publications.
2. Bhalla, S. & Anuraag, S. 2010. Visual merchandising. New Delhi: McGraw Hill.
3. Mathew, R. 2008. Apparel Merchandising. New Delhi: Book Enclave
4. https://fashionchinaagency.com/fashion-advertising-promotes-fashion-brands/
5. https://fashion-history.lovetoknow.com/fashion-clothing-industry/fashion-advertising
6. https://www.infobloom.com/what-is-fashion-advertising.htm

Page 65 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
 Participants of this Module (training material) preparation
N Name Qualif Field of Organization Mobile E-mail
o ication Study / Institution numbe
(Level r
)
1 Eyerusalem B- Garment Misrak 933042 eyerusmiliyon500
Miliyon Level Engineering Polytechnic 010 @gmail.com
College
2 Kebere Belihu A- Fashion Misrak 920775 keberebelihu1@g
Geze level Design and Polytechnic 168 mail.com
Garment College
Engineering
3 Tachawot A- Garment Misrak 921600 tachawutl@gmail.
Lewoyew Level Engineering Polytechnic 140 com
College
4 Misgana Abdisa B- Garment Misrak 921051 roberaabdisa@gm
Jorte Level Engineering Polytechnic 791 ail.com
College
5 Meseret Getiye B- Garment Misrak 937820
Level Technology Polytechnic 842
College
6 Meseret Abebe B- Garment Misrak 910054
Level Engineering Polytechnic 198
College
7 Hamid Detamo B- Garment Misrak 912398 kemaldetamo@gm
Level Engineering Polytechnic 119 ail.com
College
8 Boja Mekonnen B- Garment Misrak 920623 bojagarment@gma
Level Technology Polytechnic 548 il.com
College
9 Temesgen Dereje B- Garment Misrak 919866 kayoojaleta@gmai
Level Engineering Polytechnic 432 l.com
College
1 Bereket Yohannes B- Garment Misrak 923327 berekety26@gmail
0 Level Technology Polytechnic 388 .com
College
1 Rebuma Bedada B- Garment Misrak 915976 rebuni26@gmail.c
1 Beyene Level Technology Polytechnic 670 om
College

Page 66 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1

College march, 2022
Page 67 of 67 Lideta Manufacturing Develop and Perform Merchandising Strategy Version -1
College march, 2022