Retail buying | Operations Management homework help

Your final project is to play the role of the Buyer of a mono-brand e-commerce store whose final sell-through goal is 55% at full price.  A 55% full price sell through with an IMU of 60% and MD% of 33% will guarantee you a gross margin at a minimum of 45%.  You will analyze the classification analysisPreview the document, allocate your OTB, create a seasonal strategy, and provide examples of your hero pieces or core product.  I have created an outline below for you to use as a starting point.  I have left the brand name blank on the classification analysis as I want you to use your favorite large brand as an example.  Ideally, I would appreciate if this was sent to me as a PDF. If you’d like to use PowerPoint, Keynote, Google slides or any program you feel comfortable using. It can be longer than five pages, just not shorter.  I would suggest completing your classification analysis (filling in the yellow boxes) and then cut and paste just the grid into your presentation on page two.  Please don’t include the questions. Your strategy should address the questions asked plus more. Please write this in a paragraph form, not a question and answer format. 

Page one – Provide a summary of the current season’s sales results and provide an overview of the season’s successes and weaknesses. Please be descriptive as to WHY the season and individual classifications performed and underperformed. For example, this season the xxx category was down because it was unseasonable hot.  Makeup reasons based on your hypothetical customer.

Page two – Classification analysis for the current season. Fill in the yellow boxes. Also, feel free to change the categories to any category that will better reflect the brand you selected. I’d like to see your formula in the cell so I can see your work. For example, I don’t want you to type in 27%, I want to see the formula so that when you hit return the answer automatically populates 27%. Submit this document separately in excel as well as pasting this as a picture into your five-page strategy. 

Page three – Strategy for next season broken down by category. Please be descriptive as to WHY. Have a point of view!

Page four – Allocation of $8,000,000 open to buy OTB by classification.

Page five – Examples of core product you really believe in and why. Core products are items that you have heavily invested your OTB in. I’d like to see 2-3 items for three of your most important classifications. Search the internet for references of the core product. Get creative!

As the Buyer of a mono-brand e-commerce site, you are only selling one designer. Everyone always asks don’t you just buy everything in the showroom?  That’s not possible! You have to carefully analyze what the customers are responding to as well as balance new trends with proven best sellers. I want you to start thinking about which brand you want to be the e-commerce Buyer for and how the sales results in the classification analysis are painting a picture about which classifications are successful and which are opportunities for improvement. 

I will post a video in next week’s module to help continue to guide you through this, however, I want to let your creativity lead you this week.  Think outside the box! Be creative and strategic. People always think that you can’t flex your creative muscles when it comes to analysis and strategy, but that is completely incorrect!  Devising a strategy is when you are able to be your most creative! 

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