Assessor Resource

SIRRMRM001
Plan merchandise buying strategy

Assessment tool

Version 1.0
Issue Date: March 2024


This unit describes the performance outcomes, skills and knowledge required to plan stock levels and purchase retail merchandise.

This unit applies to senior personnel working in a diverse range of retail sectors and business contexts. They operate independently and are responsible for making a range of operational business decisions and for the buying and planning of retail merchandise.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1.Undertake post trade analysis.

1.1.Complete a post trade analysis to review past performance against planned performance, identifying missed opportunities.

1.2.Analyse customer buying patterns, and predict future trends.

1.3. Review competitor activity within the local and global marketplace.

1.4.Consult relevant stakeholders for input on post trade analysis and future range strategy.

2. Determine strategy.

2.1 Determine range strategy for relevant future trading period based on post trade analysis.

2.2 Determine price strategy, marketing strategy and product mix for the next trading period.

2.3Communicate strategy to relevant personnel and seek input and approval as required.

3.Develop merchandise plan.

3.1.Review marketing calendar and new store openings and closures as required.

3.2.Establish base line sales and gross margin requirements.

3.3.Plan buying margin, markdowns, shrinkage and other reductions.

3.4.Determine open to buy, weeks cover or other stock measures.

3.5.Determine width and depth of range.

3.6.Quantify products to be ordered.

4.Respond to trade.

4.1.Evaluate sales against plans and performance benchmarks and interpret impact to the forward plan.

4.2.Manage merchandise plan in response to sales and account for variances in sales trends.

4.3.Adjust purchases within the merchandise plan, and manage slow moving surplus stock or aged stock to minimise impact on overall margin.

4.4.Consolidate stock as required.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

conduct a post trade analysis for one merchandise range or department

determine and document the following details of the merchandise strategy based on the above post trade analysis, for the next trading period:

price strategy

marketing strategy

product mix

develop a merchandise plan, for a specified trading period, based on the above post trade analysis and strategy that includes the following:

base line sales and gross margin requirements

buying margin, markdowns, shrinkage and other reductions

open to buy, weeks cover or other stock measures

width and depth of range

take the appropriate action to respond to sales across the specified trading period.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

organisational:

post trade results:

sales

Gross Profit

Gross Margin Return on Investment

sell through (or relevant measure)

rate of sale

average sale price

unit sales

purchase margin

markdown percentage

sales plan

previous trading period data

sales and gross margin requirements

marketing calendar

for the particular industry sector:

consumer buying patterns

competitor activity

customer needs

sales trends

trading periods

merchandise strategy:

gross margin

production opportunities:

speed to market

purchase margin

markdown reduction

management of stock in response to sales

forward cover

markdowns

purchases

aged stock.

Skills must be demonstrated in a retail environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

past performance data

organisational marketing calendar

store opening and closing information

sales data

stakeholders and suppliers with whom the individual can interact; these can be:

stakeholders and suppliers in an industry workplace, or

people who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1.Undertake post trade analysis.

1.1.Complete a post trade analysis to review past performance against planned performance, identifying missed opportunities.

1.2.Analyse customer buying patterns, and predict future trends.

1.3. Review competitor activity within the local and global marketplace.

1.4.Consult relevant stakeholders for input on post trade analysis and future range strategy.

2. Determine strategy.

2.1 Determine range strategy for relevant future trading period based on post trade analysis.

2.2 Determine price strategy, marketing strategy and product mix for the next trading period.

2.3Communicate strategy to relevant personnel and seek input and approval as required.

3.Develop merchandise plan.

3.1.Review marketing calendar and new store openings and closures as required.

3.2.Establish base line sales and gross margin requirements.

3.3.Plan buying margin, markdowns, shrinkage and other reductions.

3.4.Determine open to buy, weeks cover or other stock measures.

3.5.Determine width and depth of range.

3.6.Quantify products to be ordered.

4.Respond to trade.

4.1.Evaluate sales against plans and performance benchmarks and interpret impact to the forward plan.

4.2.Manage merchandise plan in response to sales and account for variances in sales trends.

4.3.Adjust purchases within the merchandise plan, and manage slow moving surplus stock or aged stock to minimise impact on overall margin.

4.4.Consolidate stock as required.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

conduct a post trade analysis for one merchandise range or department

determine and document the following details of the merchandise strategy based on the above post trade analysis, for the next trading period:

price strategy

marketing strategy

product mix

develop a merchandise plan, for a specified trading period, based on the above post trade analysis and strategy that includes the following:

base line sales and gross margin requirements

buying margin, markdowns, shrinkage and other reductions

open to buy, weeks cover or other stock measures

width and depth of range

take the appropriate action to respond to sales across the specified trading period.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

organisational:

post trade results:

sales

Gross Profit

Gross Margin Return on Investment

sell through (or relevant measure)

rate of sale

average sale price

unit sales

purchase margin

markdown percentage

sales plan

previous trading period data

sales and gross margin requirements

marketing calendar

for the particular industry sector:

consumer buying patterns

competitor activity

customer needs

sales trends

trading periods

merchandise strategy:

gross margin

production opportunities:

speed to market

purchase margin

markdown reduction

management of stock in response to sales

forward cover

markdowns

purchases

aged stock.

Skills must be demonstrated in a retail environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

past performance data

organisational marketing calendar

store opening and closing information

sales data

stakeholders and suppliers with whom the individual can interact; these can be:

stakeholders and suppliers in an industry workplace, or

people who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
 
 
Review competitor activity within the local and global marketplace. 
 
Determine range strategy for relevant future trading period based on post trade analysis. 
Determine price strategy, marketing strategy and product mix for the next trading period. 
 
 
 
 
 
 
 
 
 
 
 
 
 

Forms

Assessment Cover Sheet

SIRRMRM001 - Plan merchandise buying strategy
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I declare that the assessment tasks submitted for this unit are my own work.

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Assessment Record Sheet

SIRRMRM001 - Plan merchandise buying strategy

Student name:

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Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

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Overall assessment result: Competent Not yet competent

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