Buying protocol decoded

Most of the retail buys done is extensively based on what we think we can sell which is in conflict with buying protocol based on what market demand and dynamics tells you that will sell ! Normally emphasis is that if a particular brand is hot selling a certain category means this will sell in your stores by default. This is not entirely true. What a trend or track record tells that there is a demand for a certain category of article this furthers needs to examined and debated in your own context. Apparently these things are predecided when Retailers launch their operation. We all believe so......then why sluggish sales or mounting inventory ??

Lets first know what I call "buying protocol" ?

Protocol loosely mean a predefined set of action leading to a desired end result. In buying context we need to consider following protocol :

- Does the requirement fit into our Marketing Sales Plan ?

- Does the requirement fit into our target customer needs ?

- Does the requirement closely matching target customers requirement fullfillment window ?

- What is the anticipated shelf life of the requirement ?

- Does the requirement needs any last minute customisation or leveraging based on various inputs ?

- Is there any need or possibility to enhance or repackage the USP of this requirement ?

- Does all above is based on sound data analysis or is it mere hypothesis and gut feeling ?

Problem is that in dynamic Indian situation the analytical model is grossly inadequate to correctly grasp the requirements and this can be proved if we analyse slow moving items, bloated inventry and leftovers.

Concern is managers/marketeers do not statisically analyse and correlate data in depth rather skim through surface and conclude. They tend to pick up data selectively which further their hypothesis. They do not want to face or confront inconvenient truth. This is particularly pronounced in Indian context. In west the research model is so well tested and fine tuned that there are a well defined and entrenched buying protocol which is analysed at 360 degree.

Once above questions are adequately answered then we know the genuinity of requirement and then based on trend, historic data and forecast the buying quantity is reached.

In my next post I will deal with the subject how these quantities be sourced at right price, from right source and at right time !

All so important to complete buying protocol !