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Evidence Guide: SIRRMRM001 - Plan merchandise buying strategy

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

SIRRMRM001 - Plan merchandise buying strategy

What evidence can you provide to prove your understanding of each of the following citeria?

Undertake post trade analysis.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse customer buying patterns, and predict future trends.

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine strategy.

  1. Determine range strategy for relevant future trading period based on post trade analysis.
  2. Determine price strategy, marketing strategy and product mix for the next trading period.
Determine range strategy for relevant future trading period based on post trade analysis.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop merchandise plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish base line sales and gross margin requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Plan buying margin, markdowns, shrinkage and other reductions.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine width and depth of range.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Quantify products to be ordered.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to trade.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consolidate stock as required.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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.

Required Skills and Knowledge

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.