Assignment
The Wal-Mart buyer did not have time to monitor pen sales, so the partners tracked daily sales over theInternet, using Wal-Mart's Retail Link software system. The PenAgain founders also produced an extra100 displays for use in Wal-Mart stores and kept them in their own warehouse. PenAgain then hired amerchant service organization, a third-party group that sends representatives into stores to check outdisplay placement and consumer traffic and then report back electronically to the supplier.In providing its products, PenAgain had to adhere to Wal-Mart's detailed packaging and shippingrequirements, which specified the thickness of the cardboard used for display cartons; the placement ofa reddish stripe around the shipping container to help Wal-Mart employees know where to place themerchandise in the store; and shipping labels that included purchase order numbers, distribution centerdetails, and other information. As the PenAgain partners prepare for what may be the most crucial 30days of their business careers, they seem realistic about the challenges ahead.
"There are things thatcould go tremendously well, and things that could sink," Roche says. "We have a lot on the line, andhonestly, we are nervous as hell."Adapted from: LEVY, M. and WEITZ, B, A., 2009. Retailing Management (8e). Boston: McGraw-Hill. p604-605Task:Use information provided in the case study to discuss what the job of the Wal-Mart buyer entailed.
1. Put yourself in the shoes of the Wal-Mart buyer, based on your knowledge of merchandisemanagement and what you have learned about the position of a retail buyer, build two very detailedarguments supporting the decision to give PenAgain a trial period.
2. Thereafter build two detailed possible arguments that could be used to turndown PenAgain. Your discussion should take into account various merchandising principles and retail buying goals.