When the demand for licensed products is minimal, an organization may choose to handle their merchandising
in-house
In-house Merchandising:
Refers to managing the merchandising process within the organization itself, rather than outsourcing or acquiring licenses
The key benefit of in-house merchandising is the probability of increased profits
LESSON 6.4
Branding & Licensing
Steps in the in-house merchandising process
Merchandising
1) Design the logo and slogan or tagline (if it is not
already available)
2) Determine merchandise type, quality and quantity
3) Interview local merchants (vendors) and select the
company that can best fit the organization’s needs
4) Determine distribution outlets
5) Train sales staff
6) Prepare on-site merchandising strategies
LESSON 6.4
Branding & Licensing
If an organization feels an in-house merchandising approach may not be the most efficient strategy, they may choose to outsource the effort to a third party
Merchandising
LESSON 6.4
Branding & Licensing
Outsourcing the merchandising effort
Merchandising
LESSON 6.4
Branding & Licensing
For example, last year the Big 10 Conference signed an exclusive five-year deal with sports retail vendor MainGate to sell merchandise for its football championship and the men’s and women’s basketball tournaments
Merchandising
The primary purpose is to maximize income for a sports or entertainment event
Organizations maximize income through the sales of food and beverage and merchandise
On-site Merchandising:
Refers to the process of selling merchandise at the physical location of the event
LESSON 6.4
Branding & Licensing
Four key considerations of on-site merchandising
Merchandising
The location of where the merchandise is being sold
The physical layout and appeal of where the merchandise is being sold
How well the sales operation is performed
The appeal of the merchandise or product itself
LESSON 6.4
Branding & Licensing
Best practices for selling on-site merchandise
Merchandising
The heaviest traffic for merchandising is upon
arrival and departure
Test marketing is important to ensure the
effectiveness of a good or service
Training of sales personnel varies with the event
LESSON 6.4
Branding & Licensing
Merchandising
Making merchandise available online opens up a new sales channel for a sports or entertainment organization to purchase related goods and services
Online Merchandising:
Refers to the process of selling merchandise on the Internet
LESSON 6.4
Branding & Licensing
Online Merchandising
Merchandising
Organizations maximize income by providing a
customized shopping environment and allowing
consumers access to a wider variety of products
and services
Global e-commerce sales surpassed $1 trillion in
2013
LESSON 6.4
Branding & Licensing
Online Merchandising
Merchandising
LESSON 6.4
Branding & Licensing
Overall, eMarketer estimates, US retail e-commerce sales will reach nearly $39 billion in 2013, up 56.5% over 2012 and almost triple the amount spent in 2011.
Online Distribution Methods
Merchandising
LESSON 6.4
Branding & Licensing
Direct shipping to consumer
In-store pickup
Online Advantages
Merchandising
Easier to control inventory
Opportunity to offer exclusive merchandise
Opportunities to reach out-of-market
consumers
LESSON 6.4
Branding & Licensing
Reaching out-of-market customers
Merchandising
LESSON 6.4
Branding & Licensing
Kansas State University’s online store sold $131,500 of Wildcats merchandise and of that revenue, Kansas residents were responsible for just $56,100 of the purchases
Online Disadvantages
Merchandising
Security concerns in making transactions online
Potentially higher distribution (delivery) costs
Consumers inability to touch, feel or “test-drive”
products before buying can be a deterrent and lead
