CTE 3431 Product Development Final Exam Study Guide Wednesday April 22 2015 Chapter One The Role of Product Development Product Development The strategic creative technical production and distribution planning of goods Product Development is consumer driven Goal is to eliminate non value added steps such as warehousing It requires partners who share both the risk and responsibility for producing a quality product It lends itself to multiple channel distribution internet catalog and stores The role of a Product Development managers is to 1 Design apparel styles 2 Write speci cations for the construction of the apparel styles 3 Coordinate style selections to develop a product line There are 3 key planning processes the product development managers are responsible for 1 Creative Planning Starts with trend forecasting What will be the colors silhouette and fabrics Fabric brings our concept to life and drives product development Also takes into account the styling and detailing WGSN is a leading trend forecasting company 2 Merchandise Planning The delivery of product to consumer Looks at the budget what resources are needed to meet the pro t sales and margin objectives for a speci c line Also sets line or range plan What are the sales and margin goals 1 Wednesday April 22 2015 Assortment plan breaks down the line plan into components that address customer preference what product How much of it What sizes What colors Deliver when 3 Production Planning The actual construction of the products production planners must understand the cost of materials trims and nishes Determine the quality and quantity criteria and specify assembly processes necessary to produce acceptable nal product There is also Technical Planning BUT product development managers usually aren t involved in that Technical planning further de nes styles by developing t standard materials and construction speci cations Three Stages of The Apparel Product Development Process 1 Line Concept The mood theme and key elements of the line 2 Line Development Starts as the design team translates the concept into groups of garments to be delivered through the selling season 3 Line Presentation Showing the proposed line of products to the technical design staff and sourcing mangers for selection of styles to include in this seasons line Apparel Supply Chain Traditional Linear Supply Chain vs Todays s Supply chain Traditional Linear Supply Chain 1 Fiber Production 2 Yarn Manufacturing 3 Textile Production 4 Apparel Manufacturing 5 Retailers 6 Final Consumer 2 Wednesday April 22 2015 Todays Supply Chain More complex and exible than the traditional linear model Builds on core competencies Core Competencies The business functions that the company is best equipped to execute their strong points Sourcing the process of procuring nding materials and production Collaborative Supply Chain Interactive network of independent manufacturing specialists that join forces to respond to a market opportunity by creating particular product With fewer links in the supply chain cycle times are reduced Allows you to get the right clothes to market at the right price at the right time PLM Software Vertical Integration A business who owns its whole chain from supply to sales manufacture owned stores gives the brand direct line to their customer They produce their own stuff and sell it through their own store or website Ex Ralph Lauren Gap Zara Victorias Secret Diversi cation Occurs when a rm expands their product mix to capitalize on brand recognition and increase sales Ex Tory Burch started with Ballet Flat now sells wide array of products Globalization Major Growth opportunity retailers are expanding overseas Requires a strong understanding of a more diverse consumer Chapter Two Business Planning Business Functions 3 Wednesday April 22 2015 Merchandising Planning development and presentation of the product line from concept to delivery Production Finance Expenditures for materials and equipment salaries of employees and the overall budget tools Operations The upkeep of equipment used by employees Marketing Advertising and promotional objectives sales goals and marketing programs and Sourcing Supply chain management Brand the image of a product business or service communicated to consumers through a name logo or slogan Branding A competitive strategy used to distinguish a brand from their competitors developed through advertisement and promotions Brand Image How the consumer feels about the brand in their mind Can you identify a designer when shopping without looking at the label Brand Equity The value for consumers who may be willing to spend more for a brands product Example Burberry Three things to look at 1 Who is the target market 2 What is the price value they expect Chapter Three Consumer Markets 4 Wednesday April 22 2015 3 Who s is the competition Niche markets market that appeals to a focused consumer Ex plus size women over 50 baby boomers petite cosmetics for black women We de ne our consumer by three lifestyle segments 1 Demographic data Age gender marital status family size income spending habits occupation education religion ethnicity and region 2 Psychographic data Am I traditional uptight talbots modern and hip soccer mom 3 Generational data people born at similar times ex baby boomers Chapter Four Trend Forecasting Short term VS Long term Forecasting Short Term Forecasting The availability of information online provides immediate insight into current trends Can be trends on a weekly basis social media has effected the speed of trends think bloggers VERY global world we are all connected through the internet social media Long Term Forecasting Forecast trends 18 months 2 years in advance Women s Wear Daily PROMOStyl Color Forecasting Process Begins 2 2 5 years in advance of a selling season 1 Color Associations The Color Marketing Group ICA international color authority and CAUS 5 Wednesday April 22 2015 members come together to discuss various issues of color network forecast color directions 2 Textile Consortiums re ne early color forecasts for their own markets Cotton Council Wool Bureau and Manmade Fiber Producers Each organization develops a seasonal color story that is geared to the end use categories of the markets it supplies 3 Color Forecasters Color forecasting specialists such as D3 Doneger design directions Huepoint and the Color Box Subscription color services for a fee generally release there forecasts 12 18 months before