CTE 3431Final Exam Study GuideRole of Product Developers• Creative Planning- tracking and interpreting trends for the company’s target market and developing styles to be produced • Merchandise Planning- a plan that identifies the resources needed to meet company profit, sales, and margin objectives for a specific season by company division, thereby linking strategic planning to creative planning, technical planning, production planning and sales and marketing • Production Planning- function that links merchandising decisions with design and technical decisions in order to plan the activities related to making the product• Design Apparel Styleso Write specifications for construction of the apparel styleso Coordinate style selections to develop a product line• Line Concept- the mood, theme, and key elements that contribute to the identity of the line • Line Development- translating trend information into actual sketches of styles • Line Presentation- showing the proposed line of products to sourcing managers and technical design staff for selection of styles to include in the season’s product lineApparel Supply Chain• Traditional Linear Supply Chaino 1. Fiber Productiono 2. Yarn Manufacturingo 3. Textile Productiono 4. Apparel Manufacturingo 5. Retailerso 6. Final Consumer• Today’s Supply Chaino More complex & flexible than the traditional linear modelo Builds on CORE COMPETENCIES• Core Competencies- the business functions that a company is best equipped to execute• Sourcing- the process of procuring materials and production• Collaborative Supply Chain- Interactive networks of independent manufacturing specialist that join forces operationally to integrate complementary resources to respond to a market opportunity through the creation of a particular product• PLM software (product lifestyle management)- captures, managers, o Seasonal concept:  Business & marketing plans Concepts/mood, color palette & materials/trim/silhouetteso Line development:  Merchandising plans, line boards, material usage, market calendars & product trackingo Definition:  Initial Specification, adopted specification, production specification, production specification, special size specificationo Sourcing/Costing:  Vendor collaboration, vendor allocation, multisourcing, estimate costing & quality• Vertical Integration- a strategy that seeks to consolidate a supply chain by acquiring a company or companies at another stage in the supply chainBusiness Functions• Merchandising- the process of planning, developing, and presenting product lines for identified target markets with regard to pricing, assorting, styling and trimming • Production- the responsibility for making or manufacturing apparel products • Finance- operations area that keeps track of all the accounting activities of the firm• Operations- area of a firm that oversees the upkeep of equipment used by equipment used by employees, building facilities and distribution activities required for securing materials an shipping finished products • Marketing- area of business that sets advertising and promotional objectives, recommends sales goals, creates advertising and promotional programs and tools, sells products and gathers data relative to target customers• Sourcing- the process of procuring materials and productionConsumer Markets• Demographics- statistics about a given population with respect to age, gender, martial status, family size, income, spending habits, occupation, education, religion, ethnicity, and region • Psychographics- the study of the social and psychosocial factors that constitute consumers’ lifestyles, including reference groups, life stage, activates, personality, attitudes, level of class consciousness, and motivation • Generational Datao Generational marketing: The study of the values, motivations, and life experiences that drive generational cohorts, influencing how they spend and save their moneyo Millennials (or Generation Y)- Confident, optimistic about the future, globally oriented, technically savvy and prefer social media o Baby Boomers Represent 23 percent of the population  Health and wellness are priorities  As they retire or near retirement their spending decreases Expect advertisements to be informative, lifestyle-oriented, and feature models their ageo Matures Their respect for institutions and their desire to conform translates into enduring BRAND LOYALTY Belief that financial security comes through savings has made them conservative spenderso Generation C” describes a generation born into a very complex global community that are very connected to one another through creative communication. They have been described as digital creatives who are always connected and place a high value on customization and co-creation• Lifestyle segments focus on the Combination• Point of Sale DATA-o Relies on the use of software, scanners, and universal product codes (UPCs) o Captures transactional data regarding style, size, and color of productso Tracks how purchases are paid for, average price at which a product sells, key selling seasons, and returns o The information can be shared to facilitate better decision making and anticipate future needso Electronic data interchange (EDI): the computer-to-computer exchange of information between business partnerso Data integrity: The accurate entry of receiving, pricing, transfer, sales, and return datao POS data facilitates analysis down to the individual stock-keeping unit (SKU) by store and time period Trend Forecasting• Color Forecasting Process – release their forecasts 12 –18 months prior to a season• Color Associations: o Color Marketing Groupo ICAo CAUS• Textile Consortiums: o Wool Bureauo Cotton Inc.o Manmade Fiber Producers• Color Forecasters: o D3 Doneger Design Directionso Huepointo The Color BoxDesign Principles• Understand the importance of design principles and how they relate to product development – Balance- A sense of stability or equilibrium that is determined by dividing a silhouette vertically down the middle  Emphasis/Focal Point- May be created through a convergence of lines, a combination of colors, or a detail Proportion- The relationship of all parts to each other and to the body. Horizontal lines divide a garment or ensemble into sections that may create equal or unequal proportions Harmony- All design elements work