Know-How Exchange : Branding

FYI-WTH IS SOH,AND OH, BTW, WHAT IS MBO?

MBO = Management By Objectives
SOH = Stock On Hand

This seems more like a management question as opposed to a marketing question. SOH is important in branding and marketing, if you don't have the merchandise the customer came in for, they will feel a sense of having been let down.
From a management point of view, you are launching an established brand, I would think that you would have access to SOH info from previous locations that can guide you. Using this existing data, along with the demographics of your new location should give you an educated idea of what your opening stock on hand should be. As for a theoretical method for deciding on your stock on hand, that would vary with industry, products, demographics and how parishable your product is, as well as how quickly you are able to get in more SOH. SOH is profit on the shelf until it sells, so you always want the minimum possible. Most larger companies have a system to manage SOH. Walmart has an automated system that automatically reorders product when their POS system registers they sold through a certain amount. For a 50.000 sq foot location, you would most certainly need a very formal system, with human oversight to constantly manage you SOH.
As for MBO, I would think we would need to know your objectives to be able to comment as to the relationship between your organizations MBO & SOH

Hi Vrinda

based on your data, you need a very formal and automated systems to maintain your inventory as well as SOH. this could be in form of stocks getting monitored when they are bought/paid for at counters via the POS machines

for a well-know brand its quite imperative that the brand is always available at the shelf yet having a high SOH is always not desirable. so understand how much SOH is required for your brand/store you need to gather similar data for you industry or other stores that you have.

also there is no clear-cut relation between MBO and SOH yet based on the data gathered above, your management will make a call.

hope this helps..

cheers!!