Unit of competency details

Elements and Performance Criteria 

Element 

Performance Criteria 

1

Analyse market

1.1

Workplace marketing and merchandising policies  are identified.

1.2

Client requirements  are monitored informally in order to evaluate market trends  and client needs.

1.3

New products and services  are identified.

1.4

Opportunities to improve sales and services  are identified.

1.5

Product and service range  is monitored to identify the demand for individual items and seasonal variations.

1.6

Market competition  is identified.

1.7

Product and service range is planned.

2

Plan product and service range

2.1

Service and product range is identified and assessed against workplace policies and procedures , market analysis, sales performance and fashion trends.

2.2

New techniques  for service range are identified according to workplace policies and procedures.

2.3

Workplace space requirements and product/service mix are identified according to workplace policies and procedures.

3

Maintain supplier relations

3.1

Relationships with suppliers  are established and maintained.

3.2

New suppliers are identified and existing suppliers are updated according to performance indicators  and workplace requirements.

4

Negotiate supply of goods

4.1

Arrangements with suppliers  are negotiated and implemented according to workplace policies and procedures.

4.2

Records  of suppliers and stock are monitored for accuracy and legibility and appropriate action taken where necessary.

4.3

Records of negotiations and agreements are conveyed to appropriate personnel  within designated time lines.

4.4

Immediate corrective action is taken where potential or actual problems with supply are indicated.

4.5

Product range and source of supply  are analysed, evaluated and amended according to management, staff and client feedback.

5

Monitor quality control

5.1

Merchandise quality standards are established with suppliers according to legal requirements , client requirements and workplace policies and procedures.

5.2

Merchandise quality  is monitored during supply and delivery process.

5.3

Stock return figures are recorded and analysed against target figures.

6

Introduce product range

6.1

Staff is informed of new product ranges and advised of preferred location of merchandise.

6.2

Staff training in product knowledge is implemented to introduce product range.

6.3

New products/services are demonstrated/displayed to staff according to workplace merchandising plan.

7

Maximise profit

7.1

Individual product range contributions are calculated/estimated against budget/targets.

7.2

Product range assessment checks are developed and implemented against budget/targets.

7.3

Profit margins are maximised in negotiations with suppliers.

7.4

Workplace pricing policies for services and products are determined according to stated net profit margin in workplace merchandising plan and legal requirements.

7.5

Specifications for terms of trade  are negotiated.

8

Rationalise stock

8.1

Product range is updated at regular intervals.

8.2

Product lines to be deleted are identified and action taken to minimise adverse effect on profit.

8.3

Stock is consolidated as required to maximise sales potential.

The evidence guide describes the underpinning knowledge and skills that must be demonstrated to prove competence. It is essential for assessment and must be read in conjunction with the performance criteria, the range statement and the assessment guidelines of the relevant Training Package.

Overview of assessment requirements 

A person who demonstrates competency in this standard must be able to analyse the market, products, services and suppliers to plan and introduce new products and service which increase profit margins. Skill in communicating with clients, staff and suppliers must be demonstrated. Knowledge of relevant legislation and workplace policies and procedures and their application to investigating and introducing new products and service must also be demonstrated. The evidence provided must also demonstrate knowledge and skills in monitoring and controlling the quality and sales performance of products.

Specific evidence requirements 

Critical aspects of evidence required to demonstrate competency in this unit 

Knowledge and consistent application of workplace policies and procedures and industry Codes of Practice in regard to workplace merchandising and marketing.

Knowledge and consistent application of Federal, State and local statutory requirements/regulations including consumer law.

Knowledge and consistent application of workplace policies and procedures in regard to market analysis, planning, procurement and rationalisation of product and service ranges, maintenance of supplier relations and quality control.

Accurately interpreting market trends and consistently creating opportunities to improve sales and services, while maximising profits.

Maintaining supplier relations, negotiating supply of goods, rationalising stock and monitoring quality control.

Communicating product range information to team members.

Context of assessment 

For valid and reliable assessment of this unit, competency should be consistently demonstrated over a period of time and observed by the assessor and/or the technical expert working in partnership with the assessor. The technical expert may include the beauty therapist and/or an experienced person at the workplace.

Competency should be demonstrated in the workplace or a simulated workplace environment in a range of situations which may include client interruptions and involvement in other related activities normally expected in the workplace. For further guidance on the use of an appropriate simulated environment, refer to page 32 of the Assessment Guidelines in this Training Package.

Relationship to other units 

In the context of an assessment-only and/or a training delivery and assessment pathway, all units which relate to a job function can be integrated for assessment purposes.

Method of assessment 

The following assessment methods are suggested:

observation of the learner performing a range of tasks in an actual or simulated work environment, over sufficient time to demonstrate his/her handling of a range of contingencies. Tasks may include:

performing maket analysis

negotiating supply of goods

rationalising stock.

written and/or oral questioning to assess knowledge and understanding of investigating new products and services procedures, including market analysis, quality standards and profit margins. Questions will be asked in a manner appropriate to the language and literacy level of the learner.

completing workplace documentation relevant to investigating new products and services procedures.

third party reports from experienced beauty professionals in the workplace.

completion of self-paced learning materials, including personal reflection and feedback from trainer/coach/supervisor.

Evidence required for demonstration of consistent performance 

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

It can be gathered from assessment of the unit of competency alone, through an integrated assessment activity or through a combination of both.

Evidence should be gathered as part of the learning process.

Required skills and knowledge to achieve the performance criteria 

Skills 

Investigating products and services including:

evaluation and analysis of market trends and projections

evaluation and analysis of sales figures and investment levels

evaluation and analysis of space requirements.

Negotiating with suppliers.

Conducting staff training.

Language, literacy and numeracy skills relevant to the role and workplace requirements.

Knowledge 

Workplace policies and procedures in regard to merchandising and marketing policies.

Relevant legislation and statutory requirements, including consumer law.

The following procedures in relation to investigation of products and services:

industry Codes of Practice

market needs

range of products/services available

market competition

current and future stock levels

existing and possible new suppliers

salon quality control procedures and requirements

staff product training policies

profit requirements.

Specific resources required for assessment 

A work team.

Relevant documentation, such as:

salon merchandise and marketing policies

local and statuatory requirements.

A qualified workplace assessor or assessment team.

Key competencies 

The seven key competencies represent generic skills considered for effective work participation. The numbering against each of the key competencies indicates the performance level required in this unit.

Level 1 represents the competence to undertake tasks effectively.

Level 2 represents the competence to manage tasks.

Level 3 represents the competence to use concepts for evaluating and reshaping tasks.

Key Competency 

Example of Application 

Performance Level 

How can communication of ideas and information  be applied?

Informing relevant personnel when introducing a new product range will require the communication of ideas and information.

2

How can information be collected , analysed and organised ?

Information on new product ranges will need to be collected, analysed and organised.

3

How are activities planned and organised ?

Identifying new suppliers will require activities to be planned and organised.

2

How can team work  be applied?

Informing and training staff members will require the application of team work.

2

How can the use of mathematical ideas and techniques  be applied?

Analysing stock figures will require the application of mathematical ideas and techniques.

2

How can problem solving skills  be applied?

Analysing, evaluating and amending stock range will require the application of problem solving.

2

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables may be present with training and assessment depending on the work situation, needs of the trainee, accessibility of the item, and local industry and regional contexts. Bold italicised  text from the performance criteria is detailed here.

Marketing and merchandising policies  may include but are not limited to:

current market position

target markets

quality control policies and procedures.

pricing, labelling and packaging requirements

net profit margin.

Client requirements  may include but are not limited to:

price

quality

range.

New products and services  may include but are not limited to:

skin care

nail care

massage

relaxation.

Opportunities to improve sales and services  may include but are not limited to:

expansion of existing services

introduction of new services

staff training

equipment upgrade

image update.

Product and service range  may include but is not limited to:

new or existing stock

new or existing services

new techniques.

Market competition  may include but is not limited to:

salons

day spas

private operators.

Workplace policies and procedures  may include but are not limited to:

pricing/profit margins

product placement

supplier payment

client service

market analysis

planning, procurement and rationalisation of product and service ranges

maintenance of supplier relations

quality control.

New techniques  may include but are not limited to:

new equipment

new products.

Relationships with suppliers  may include but are not limited to:

face to face contact

correspondence

meetings

telephone or electronic contact.

Performance indicators  may include but are not limited to:

price

quality

performance

supply reliability

product range.

Records  may include but are not limited to:

manual records

electronic records.

Appropriate personnel  may include but are not limited to

staff

salon/store owner.

Source of supply  may include but is not limited to:

local

interstate

overseas.

Legal requirements  may include but are not limited to:

consumer law

inclusion/exclusion of Goods and Services Tax (GST).

Merchandise quality  may include but is not limited to:

damage

expiry date.

Terms of trade  may include but are not limited to:

special buys

payment terms

promotional deals with suppliers

partnership promotions.