Lecture Retailing management (6/e) - Chapter 14: Buying merchandise. This chapter presents the following content: Merchandise branding strategies, private labels, manufacturer (national) labels, buying from vendors of national brands, going to market for national brands,. | Chapter 14 Buying Merchandise Merchandise Management Buying Systems Planning Merchandise Assortments Buying Merchandise Pricing Retail Communication Mix 14- Merchandise Branding Strategies Manufacturer (National) Brands Designed, produced, and marketed by a vendor and sold by many retailers Private-Label (Store) Brands Developed by retailer and only sold in retailer’s outlets Licensed Brand Developed by licensee and right sold to either manufacturer or retailer The McGraw-Hill Companies, Inc./Jill Braaten, photographer 14- Spectrum of National vs. Private Label The Gap Limited Marks & Spencer IKEA Wal-Mart Home Depot % Store Brands National Brands Macy’s Target 14- Value of Retail Brands 14- Relative Advantages of Manufacturer versus Private Brands Type of Vendor Impact on Store Manufacturer Private-Label Brands Brands Store loyalty ? + Store image + + Traffic flow + + Selling and promotional + - expenses Restrictions - + Differential advantages - + Margins ? ? 14- Private Labels Advantages Unique merchandise not available at competitive outlets Difficult for customers to compare price with competitors Higher margins Disadvantages Need to develop expertise in developing and promoting brand Unable to sell excess merchandise Typically less desirable for customers 14- Manufacturer (National) Labels Advantages More desired by customers Resell excessive merchandise Don’t need skills and people to develop and promote merchandise Disadvantages Lower margins Vulnerable to competitive pressures Limit retailer’s flexibility 14- Buying from Vendors of National Brands Helps retailers build their image Helps build traffic flow Reduces selling and promotional expenses The McGraw-Hill Companies, Inc./Lars Niki, photographer 14- Most Recognized Apparel and Accessory Manufacturer Brands 14- Most Recognized Apparel and Accessory Private Label Brands 14- Examples of Private-Label Brands 14- Examples of Private-Label Brands 14- | Chapter 14 Buying Merchandise Merchandise Management Buying Systems Planning Merchandise Assortments Buying Merchandise Pricing Retail Communication Mix 14- Merchandise Branding Strategies Manufacturer (National) Brands Designed, produced, and marketed by a vendor and sold by many retailers Private-Label (Store) Brands Developed by retailer and only sold in retailer’s outlets Licensed Brand Developed by licensee and right sold to either manufacturer or retailer The McGraw-Hill Companies, Inc./Jill Braaten, photographer 14- Spectrum of National vs. Private Label The Gap Limited Marks & Spencer IKEA Wal-Mart Home Depot % Store Brands National Brands Macy’s Target 14- Value of Retail Brands 14- Relative Advantages of Manufacturer versus Private Brands Type of Vendor Impact on Store Manufacturer Private-Label Brands Brands Store loyalty ? + Store image + + Traffic flow + + Selling and promotional + - expenses Restrictions - + Differential advantages - + Margins ? ?
