Explain the Key Functions in Merchandising, Referencing How They Relate to Key Market Levels

1964 Words Aug 25th, 2012 8 Pages
Merchandising is carried out by the area of a business which mediates marketing and production departments, such as the buyers. This process is were the product is designed and developed, and then presented to the rest of the buying team. Including overlooking the product line throughout is product development life, from start to finish. The merchandising department may have to deal with some of the costing and pricing. The merchandiser aids creating a product line that should create a profit for the company, by executing the correct costing and pricing for these particular products. They have to lead their customer forward in creating new products. This may be taking risks for the company that may include getting rid of products that do …show more content…
For my low (mass) market I chose Primark, which offers fast fashion at low prices. This particular retailer has to supply on high demand on mass, to a specific market where their products are bought mainly on price rather than quality. For the merchandiser this means sourcing their supplies at low cost. Therefore being able to sell at a lower price, demanding the merchandiser to use good negotiation with suppliers to achieve this. For my middle market retailer I chose Next, which is directed at a different consumer than that of Primark and the price range is higher also. For this specific retailer the merchandiser has to think about a higher quality of product that the customer can invest in, such as workwear. The merchandiser has to invest time communicating with buyer on a budget that will still be able to turn a profit for the business. For my third retailer I chose Harvey Nichols which is a high end department store. This requires a different process for the retailer as it has to research buying the products as finished garments and does not have to deal with the manufacturing aspects of its product range. This therefore means the merchandiser has to work closely with the buyer on deciding which products to sell from a range of branded items. Comparing all three retailers there is a great difference on the responsibilities and functions that the merchandiser has to adopt, from concentrating on costing and pricing, through to