Description

Merchandising Management
April 2024 Examination
1. Promotions are supposed to increase the sale of a product and also help in the
company’s growth to generate good profits. Kindly share your inputs on the same? (10
Marks)
Ans 1.
Introduction
Promotions are a crucial element in the marketing mix, serving as a bridge between a
company and its potential customers. They play a pivotal role in stimulating demand, creating
brand awareness, and ultimately driving sales. Through various forms such as discounts,
special offers, advertisements, and events, promotions aim to capture the attention of the
target audience and persuade them to make a purchase. This strategy not only boosts shortterm
sales but also contributes to building long-term brand loyalty among consumers.
Furthermore, effective promotion campaigns can significantly enhance the company’s market
presence, setting it apart from competitors. By carefully designing and executing promotional
strategies, companies can achieve their sales objectives and foster sustainable growth. The
It is only half solved
Get Complete assignment help from us
Price – 290/ assignment
NMIMS Complete Solved Assignments
Available for session APRIL 2024
The last date is 28th MARCH- 2024
Our assignment help is affordable
Our goal is to provide you with the best and the cheapest
services
Contact No – 8791514139 (WhatsApp)
OR
Mail us- [email protected]
Our website – www.assignmentsupport.in
Online buy – https://assignmentsupport.in/shop/
2. How do planograms help to display the merchandise and what are the steps the
retailers take to improve the display for increasing more foot traffic of the customers?
(10 Marks)
Ans 2.
Introduction
Planograms play a crucial role in retail merchandising management, serving as a strategic tool
to optimize the display of merchandise within a store. These visual diagrams specify where
and how products should be placed on shelves or retail spaces to maximize visibility and
appeal to customers. The effectiveness of planograms lies in their ability to create an
organized, aesthetically pleasing shopping environment that enhances product discovery and
accessibility. By meticulously planning the layout, retailers can influence shopping behavior,
encourage impulse buys, and improve overall customer experience. Furthermore, planograms
are instrumental in inventory management, ensuring that high-demand products are
3. Case Study
Consumer durables to soon become 5-10% costlier
Prices of air conditioners and refrigerators have shot up in the new year as consumer
durables makers pass on the impact of rising raw material costs and higher freight
charges to customers, while home appliances like washing machines may witness 5-10
per cent price hike later this month or by March.
Panasonic, LG, Haier have already raised prices, while Sony, Hitachi, Godrej
Appliances may take a call by the end of this quarter.
According to the Consumer Electronics and Appliances Manufacturers Association
(CEAMA), the industry may hike prices in a range of 5-7 per cent from January to
March.
“With an unprecedented surge in the cost of commodities, global freight and raw
materials, we have taken steps to increase prices of our products by 3 to 5 per cent in
the refrigerator, washing machines, and air conditioner categories.” Haier Appliances
India President Satish N S said. Panasonic, which has already raised prices by up to 8
per cent for ACs, is considering more hikes. It is also mulling a similar move for home
appliances. “We can also see a reflection of price hike for home appliances too in near
future,” said Panasonic India Divisional Director, Consumer Electronics Fumiyasu
Fujimori.
LG Electronics, which has also increased prices in the home appliances category, said,
“We have tried best to absorb the same through cost innovations but prices need to
increase for business sustainability”.
Terming the price increase “inevitable”, Johnson Controls-Hitachi Air Conditioning
India Chairman and managing Director Gurmeet Singh said. “In a phased manner, up
to April, prices will go up by at least 8-10 per cent. Prices have gone up from around the
same time last year December to this year by nearly 6-7 per cent,” he said, adding, “the
onslaught of Cost Up is continuing and now with anti-dumping duties being imposed on
aluminum and refrigerants, we see another increase by 2- 3 per cent”.
CEAMA President Eric Braganza said, “The industry had postponed the price Increase
due to the festive season. However, currently, manufacturers have no other option but
to pass on the price hike to customers. We expect the industry to do a round of price
hike from January to March in the range of 5-7 per cent.”
The implementation would vary from company to company as some of the
manufacturers have already hiked prices and some are in the process of doing it.
“Nonetheless, if the demand is sluggish and the prices of raw materials fall, there is a
chance that we might see prices coming down In April or May,” he said.
“Price correction is not on the cards at the moment,” said Sony India Managing
Director Sunil Nayyar.
Price of metals and plastics used in consumer durables has risen 70 per cent along with
rise in cost of chips. Further, weekend and night curfews have also led to up to 25 per
cent production loss, SPPL CEO Avneet Singh Marwah said.
Questions
a. Why have the prices of consumer durables shot up? What are the reasons for this
price hike? (5 marks)
Ans 3a.
Introduction
The consumer durables sector is currently experiencing a notable increase in prices, a
phenomenon driven by multiple factors impacting the industry globally. This rise in costs is
largely attributed to the escalating prices of raw materials, higher freight charges, and the
imposition of anti-dumping duties on certain materials. Manufacturers such as Panasonic, LG,
and Haier, among others, have begun to pass these additional costs onto consumers by raising
b. What steps can be taken to control prices and what are the other factors where these
goods can be made more affordable to the customers? (5 marks)
Ans 3b.
Introduction
In response to the rising prices of consumer durables, stakeholders across the industry are
seeking strategies to mitigate these increases and maintain affordability for consumers.
Controlling prices in such a volatile economic environment requires a multifaceted approach,
focusing on supply chain optimization, technological innovation, and policy intervention. By