Question

The Nike sales rep called and wants you to put their entire line in your local Hibbett's Sporting Goods store in anticipation for next Spring's soccer season. Corporate dictates that you carry Nike's products, but you have local decision-making power to how much and what Nike products you will actually carry. Apply the Factors that Influence Merchandising Decisions to the 6 Considerations in Devising Merchandising Planning for your local Hibbett's Sports store. These decisions are made now for delivery next Spring. Make the merchandising decisions on what Nike products you will carry in the store. Does Nike fit your merchandising strategy? Explain the reasons for your decision. The key to this exercise is applying the basics of merchandising!

Answer 1

HIBBETT SPORTS STORES -a full line sports good retailer ,owns 1025 retail stores in 32 states..major stores are in GEORGIA 97 ,TEXAS 97 AND ALABAMA 90..so keeping in mind the standard of the store here are the factors that can influence the merchandising decision .

• MARKET DIVERSITY- NEEDS TO MAKE A RESEARCH ABOUT THE MARKET DIVERSITY ,THAT HOW MANY OF MY CUSTOMERS ARE WILLING OR WANT TO BUY THE EQUIPMENTS OF NIKE BECAUSE I HAVE A VARIETY OF PRODUCTS IN MY STORE SO I NEED TO FIGURE OUT THE TYPE OF CONSUMERS OF MY LOCATION .

• CONSUMER PREFERENCE -FOR THAT RANGE OF PRODUCTS THIS CAN BE ANALYSED BY RECORDS OF DEMAND IN THE RECENT TIME OR MAY HAPPEN IN THE NEXT SPRING SEASON .ONLY AFTER A PROPER ANALYSIS OF CONSUMER DEMAND PRODUCTS CAN B STORED.

• DURABILITY OF PRODUCT-IT IS ESSENTIAL TO KEEP A CHECK ON THE LIFE OF THE PRODUCT BECAUSE THEY WILL BE STORED FOR MORE THAN A SEASON BEFORE USING SO IT HAS TO BE LOW MAINTAINANCE .
• COMPETITION-VERY BASIC FACTOR TO CONSIDER TO MAKE A DECISION BY STUDING THE PRODUCTS AVAILABLE WITH THE COMPETITOR BECAUSE WOULD DEFINETLY INDULGE MY FUNDS IN EXCEPTION STUFF REITHER THAN THE BASICS .

• EXPENSE ON MAINTAINING INVENTORY-PROPER CONSIDERATION OF EXPENSE IS VERY CRITICAL TO ANALYSE BECAUSE THAT PL;AYS A MAJOR ROLE IN DECIDING THE PROFITS IN THE FUTURE BECAUSE IT WILL REDUCE YOUR PROFIT WITH EVERY PASSING DAY.

• REPLACEMENT FACILITY -RETAILER ARE WILLING TO STORE PRODUCT PROVIDED BY SUPPLIER IF REPLACEMENT OFFER IS OPEN IT REDUCES THE RISK OF RETAILER.

• BUY BACK FACILITY -ENTIERLY A NEW PRODUCT LINE IS AN EXPERIMENT SO TO PLAY ON THE SAFER SIDE RETAILER SHOULD ASK THE SUPPLIER TO BUY THOSE PRODUCTS BACK IN CASE OF FAILURE.

• CREDIT FACILITY- BEING A BIG STORE RETAILER IT OBVIOUSLY NEEDS BIG INVESTMENT OR CREDIT FACILITY FOR PRODUCT PURCHASE AND THEREFORE IT WILL BE A HEAD ON QUESTION IS NIKE WILL PROVIDE THE PRODUCT LINE ON CREDIT TO MY STORE

• REPLACEMENT FACILITY -IT WILL BE A INFLUENCER IF THE SUPPLIER OF THE PRODUCT IS WILLING TO REPLACE THE PRODUCT IN CASE OF ANY DEFECTIVE STOCK SPECIALLY WHEN THE PRODUCT IS NEW AND THE CUSTOMES ARE NOT AWARE OF IT IN CASE JUST TO REDUCE THE RISK.

• STORE SIZE -BEFORE BUYING THE ENTIERE LINE OF PRODUCT RETAILER HAS TO FIGURE OUT SOME SPACE TO SHOWCASE THE PRODUCT OR TO CHECK WHEATHER THE SPACE IS AVAILABLE OR NOT BEFORE BUYING.

• TOTAL BUDGET-BIG RETAILERS ALSO HAVE A PLANNED BUDGET TO INVEST ON A SPECIFIC THING SO THAT WILL AGAIN BE A BIG INFLUENCER IN MAKING THE DECISON ABOUT BUYING THE NIKE'S PRODUCT RANGE.

• RETAIL MARGIN-HIGH RETAIL MARGIN IS THE BASIC AND THE MOST IMPORTANT FACTOR FOR ANY RETAILER TO BUY THE BRAND OR PRODUCT VARIETY FOR THE STORE.

SO THESE ARE SOME OF THE GROUND THEORIES WHICH HAVE A POWERFULL INFLUENCE ON MERCHANDISING DECISION OF ANY STORE BIG OR SMALL .BECAUSE THEY SHARE FEW FACTORS IN COMMON ..