What is the primary purpose of a merchandise plan?

The primary purpose of a merchandise plan is to strategically manage product quantities and timing. This involves creating a comprehensive strategy that ensures the right products are available at the right time to meet consumer demand while also aligning with business goals. By effectively managing inventory levels, seasonal timing, and sales forecasts, a merchandise plan helps retailers maximize sales and minimize excess stock, which is vital for maintaining profitability.

In contrast, predicting future market trends is important but falls under a broader market analysis rather than the specific operational focus of a merchandise plan. Outlining product sales strategies is a component of merchandising but does not capture the full scope of inventory management, which is central to a merchandise plan. Measuring advertising effectiveness, while crucial for understanding marketing impact, is not a direct function of a merchandise plan either. Instead, it relates more to evaluating marketing campaigns rather than managing product availability and sales timing.