Final Exam 3431 Role of Product Developers Product Development The strategic creative technical production and distribution planning OF GOODS Design Apparel Styles Write specifications for construction of the apparel styles Merchandise Planning Coordinate style selections to develop a product line Creative Planning Production Planning Line of apparel consists of the overall collection of garments that will be offered for sale by a division or firm at a given time Line Concept Line Development Line Presentation Apparel Supply Chain Traditional Linear Supply Chain 1 Fiber Production 2 Yarn Manufacturing 3 Textile Production 4 Apparel Manufacturing 5 Retailers 6 Final Consumer In a tradition linear product supply chain the roles of each industry segment were distinct each with its own product and customer Today s Apparel Supply Chain is a complex network of suppliers and or vendors involved directly or indirectly in fulfilling customer demand for apparel The supply chain includes all of the companies directly involved in designing supplying material components manufacturing and distributing apparel as well as auxiliary businesses More complex flexible than the traditional linear model Builds on CORE COMPETENCIES are what we do best and what we do most efficiently but then we partner with those that can do the rest to maximize efficiency and maintain a competitive edge companies must identify Sourcing determining the most cost efficient vendors of services materials production or finished goods or a combination of these at a specified quality and service level for delivery within an identified time frame Collaborative Supply Chain are interactive networks of independent manufacturing specialists that s join forces operationally to integrate complimentary resources to respond to a market opportunity through the creation of a particular product PLM softwear Captures manages visualizes and disseminates product related information from initial concept to a product retirement throughout a company and its supply chain 1 Product design 2 Product data details for specification development 3 Supply chain management capabilities Seasonal concept Business marketing plans Concepts mood color palette materials trim silhouettes Line development Merchandising plans line boards material usage market calendars product tracking Definition Initial Specification adopted specification production specification production specification special size specification Sourcing Costing Vendor collaboration vendor allocation multisourcing estimate costing quality Vertical Integration is a strategy that seeks to consolidate a supply chain by acquiring Signature stores Manufacturer owned stores give the brand a direct line to their companies at other stages in the supply chain ULTIMATE customer Outlet stores Provide a means of controlling excess goods Horizontal integration this strategy prioritizes the acquisition or licensing of companies or brands that make or sell similar products to expand market penetration and reduce competition Business Functions Merchandising The process of planning developing and presenting product lines for identified target markets with regard to pricing assorting styling and timing Production The responsibility for making or manufacturing apparel products Marketing area of business that sets advertising and promotional objectives recommends sales goals creates advertising and promotion program and tools sells product and gathers data relative to target consumers 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 employees building facilities and distribution activities required for securing materials and shipping finished products Sourcing the process of procuring materials and production Consumer Markets Combining customers via lifestyle segments The ability to forge an emotional connection with consumers will increasingly drive the profitability of product development Target market a well defined customer group Niche market a market that appeals to a focused target customer Demographics Age Gender Marital Status Family Size Income Spending Habits Occupation Education Religion Ethnicity Region Psychographics Reference Groups Life Stage Attitudes Class Consciousness Influence a person s thoughts or actions They may be determined by association by membership by aspiration or by disassociation The typical junctures of adult life that have an impact on decision making such as marriage divorce having children and retirement A person s opinions about issues products services and institutions as influenced by experience peer group thinking demographics and personality Reflects an individual s desire for social status An internal or external stimulus that causes an individual to act Motivation Generational Data Matures Baby boomers Generation X Millennials Generational marketing The study of the values motivations and life experiences that drive generational cohorts influencing how they spend and save their money Market Research Tools Quantitative research Objective methodology in which data are collected about a sample population and analyzed to generalize behavioral patterns Qualitative research Relies on methodology such as observation and case studies in which experiences are recorded as a narrative to describe observed behaviors within the context of environmental factors Trend Forecasting Fashion theories that help trend forecasters spot new style trends in different markets 1 Trickle down is based on the observation that many new fashion ideas start on designer runways appealing to fashion leaders who have the money and taste level to wear new looks 2 Trickle across helps to explain how digital technology has changed the dynamics of fashion 3 Trickle up explains the phenomena of street fashions that originate with avant garde consumer groups rather than a designer or product developer Long Term forecasting is the process of analyzing the sources patterns and causes of change through the evaluation of current events in order to identify and anticipate directional shifts in business strategies consumer behavior and lifestyle and global dynamics Short Term focuses on current and upcoming events and pop culture phenomena that can be translated into fashion trends in the next 12 18 months i e like seasonal colors Color Forecasting Process release their forecasts 12 18 months prior to