FSU CTE 3431 - Chapter 1: The Role of Product Development

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Chapter 1 The Role of Product Development in the Apparel Supply Chain Product Development The strategic creative technical production and distribution planning of goods Traditional Linear Supply Chain 1 Fiber Production 2 Yarn Manufacturing 3 Textile Production 4 Apparel Manufacturing 5 Retailers 6 Final Consumers Supply Chain Management A continuously evolving management philosophy that seeks to integrate the business Functions of a supply chain with the core competencies and resources of the supply chain partners into a competitive customer enriching supply system focused on developing innovative solutions and synchronizing the flow of products services and information Pg 8 A competitive customer enriching supply system PLM Product Lifestyle Management Software Seasonal concept o Business marketing plans o Concepts mood color palette materials trim silhouettes o Merchandising plans line boards material usage market calendars product Line development tracking Definition Sourcing Costing quality o Initial Specification adopted specification production specification production specification special size specification o Vendor collaboration vendor allocation multi sourcing estimate costing PLM Software includes product design product data details for specification development Product Data Management PDM Growth Strategies o Marketplace not yet saturated o Emerging trends create new opportunities o Increased market share in a given market o New customers or markets Brand Differential as a Growth Strategy Sneakerization the process of transforming an inexpensive commodity product into a cutting edge specialty product Vertical Integration Signature stores manufacturer owned stores give the brand a direct line to their ULTIMATE customer Outlet stores providing a means of controlling excess goods Diversification Occurs when a firm expands its product mix to capitalize on brand recognition and increase sales enhancing efficiencies for greater profit May also be achieved through licensing OR the acquisition of related or unrelated companies It is KEY to drive more sales volume Globalization Major growth opportunity retailers are expanding overseas REQUIRES a strong understanding of a more DIVERSE consumer The Role of Product Development Its Variations Consumer driven Goal is to ELIMINATE non value added steps such as warehousing DEFINES THE PRODUCT through detailed standards specs Requires partners who share the Responsibility RISK for producing a QUALITY product Lends itself to Multiple Channel Distribution o Stores Internet Catalog Created sold at wholesale for distribution to retailers that carry other wholesale brands Wholesale Brands including o Department stores o Specialty stores o Chain stores o Discount stores Private Brands Private Label Private brand products are developed and merchandised for exclusive distribution by a particular retailer o EX Macy s INC Private label developed to compete with wholesale brands o May make up 15 to 50 percent store s mix o EX Simply Vera Vera Wang at Kohl s Chapter 2 Business Planning Basic Business Functions Merchandising Marketing Operations Finance concept to delivery programs and tools overall budget Sourcing Planning development and presentation of the product line from Advertising and promotional objectives sales goals and marketing the upkeep of equipment used by employees Expenditures for materials and equipment salaries of employees and the Supply chain management o Mission statement Strategic Planning serve and what makes them special its brands It may need to be reviewed when goals have been reached or market conditions change articulates why they are in business the customer they outlines goals for the future and how it wants the world to see o Vision statement Apparel Product Planning Product development managers are involved in all of these EXCEPT technical o Merchandise planning o Creative planning o Technical planning o Production planning Merchandise Planning objectives for a specific season Merchandise budget Identifies the resources needed to meet profit sales and margin Line or range plan Sets sales and margin goals for lines Assortment plan Breaks down the line plan into components that address customer preferences o What product o How much of it o What colours o What sizes o Delivery within what seasonal calendar A merchandise calendar controls the events required to get the planned apparel products It s all about getting it to the customer at the right time Creative Planning Spring Fall TRENDS drive both marketing in store visuals Technical Planning Further defines style by developing o Fits standards o Materials o Construction specification Technical designers evaluate a prototype garment before it is approved for production Production Planning Links merchandising creative design and technical design decisions to the actual Today actual garment production often takes place in distant offshore locations construction of products Therefore production planners must o Understand the cost of materials trims and value added finishes and processes o Determine quantity and quality criteria o Specify assembly processes necessary to produce an acceptable final product Traditionally 10 12 months The Apparel Product Development Process Line concept Line development Line presentation Results from trend research and includes the mood theme and key elements that contribute to the identity of the line garments to be delivered throughout the selling season design staff and sourcing managers for selection of styles to include in the season s product line Consists of showing the proposed line of products to the technical Begins as the design team translates the line concepts into groups of Classification of Products Firms need 1 Product Categories is o An apparel product category is typically defined by the use for which the product o Men s wear categories have evolved over the past century as clothing needs economic conditions and lifestyles have changed o Recent trends indicate that many manufacturers are again producing adult styles scaled for children 2 Pricing Categories o Cost versus quality o There is an implied relationship that may or may not be true o Customers have higher expectations for more expensive products o WHO IS OUR TARGET CONSUMER 3 Sizing Categories o Size range is one of the first decisions made o Includes a sense of the overall shape body dimensions and garment ease preferences of a firm s target customers In order


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FSU CTE 3431 - Chapter 1: The Role of Product Development

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