-Contributed by Richa Kapoor
The retailer has to act as a surrogate buyer for its customer. While shopping at a store, the customer in effect should say, "I like what you have to offer to me" then if the customer continues to shop at a store and starts to echo that phrase again and again. At that point, the retailer becomes the surrogate, a substitute purchasing agent of sorts who represents the customer while planning his merchandise assortment.
Thus, it is very important for retailers to carefully consider what they buy for selling in their store, because through this a retailer is seeking to win the loyalty of a customer and not just his money.
The retailer should take great care in planning this merchandise plan, He should choose compatible products, so that there is some degree of consistency and predictability for the consumer.
Some of the factors that a retailer should bear in mind while planning his merchandise mix are:
Some important terms:
1. Substitutes are those products which can be used as an alternative for as product, for eg: Tea and coffee.
2. Complements, are the products which compliment each other and enhance another each other's salability…..like hot dogs and ketchup, or snack foods and beverages.
3. Unrelated products, which are products that have nothing to do with one another. Sometimes, though, the products may appear to be unrelated when in fact they are shrewd product additions
The product line attributes:
1. Bulk--weight and size. How big is the item? How much selling space will it require?
2. Standardization--special needs of the product. Can the item be stocked alongside competing items, or does it need special shelving, etc.,
