End-of-season sales design offer

Abstract

B2C businesses must maintain their price levels, product inventory, product availability, advertisements and promotions for maintaining their revenues and profit margins. End-of-Season Sale (EOSS) is a sales strategy used by companies to push their sales of existing inventories at a discounted price. It is a promotional strategy to lure price sensitive customers to purchase. The motivation of end-of-season sales can be as follows: · Inventory Management: Since the demand for fashion goods keeps on fluctuating, it can result in excess inventory at the retailer's end. For maximizing shelf space utilization, it is important to determine the optimum level of inventory to be held for each Stock Keeping Unit (SKU) such that Holding Costing and the Lost Sales are minimum. End-of-season sales are offered to push out the excess inventory. · Latest Trends: Brands use end-of-season sales strategy to clear out the existing shelf space occupied by old models and to bring in latest fashionable products onto the shelves so that the inventory turnover increases. · Increased Footfall: This strategy is used to lure the customers into the stores and thereby increase footfall. The increase in store attendance can push up the sales of fresh stock as well. · Customers’ Anticipation: Generally price-sensitive customers wait for season sales to purchase the required products. It is important for a brand to start the end-of-season sales at the earliest so that consumers do not exhaust their share of wallet in other brands’ sales.