Welcome to Product Development FM 4334 •Not Dr. Ramirez •Ms. •Miss •Mrs. Contact Info • Office Hours in FCS 144: • Mondays 10am - 10:30am; 1pm2:30pm • Tuesdays 9:30am – 12:30 pm • Email: s_r320@txstate.edu Syllabus •Read it •Then read it again Not kidding…Read your syllabus Resources 1 Read your textbook 2 Photoshop and Illustrator • Lynda.com 3 Buying • Formula book 4 Excel Also not kidding about your textbook …Read it! • Sound Smart • Be able to talk about how the PD process works. • Look Smart • Be able to identify the different functions of the PD process. Objectives • Make Smart decisions • Be able to pick the right resources/options for the “job”. • Give Smart advice • Be able to tell people how PD process needs to be done to do the “job”. Any syllabus, ground rules, or policy questions? Learning Goals • Define, understand, and execute the PD process • Examine how the changing dynamics of the supply chain affect the PD process • Understand growth strategies used in the supply chain • Understand the impact of globalization • Identify various types of PD • Understand how technology systems speed up processes and enhance decision making What is Product Development? Your book’s definition • The process of creating each individual style within the line (p. 204) The multifaceted role of development, execution, and delivery of a product line based upon the needs of a well-defined target market. • Who is doing the developing —wholesalers or retailers? • What kind of products are they developing Dynamics of PD —basic, seasonal, or fashion forward? • Products that require high skill/technology as opposed to low skill/tech • Where will the products be distributed —regionally, nationally, or globally? • How will the products be distributed —in stores, catalogs, television, and/or online? • When will be products need to be delivered? Who is developing? Wholesale Brands vs Private Brands Wholesale • Developers design, produce, and market products under a proprietary label and distribute to retailers/third parties • Mass merchants, department stores, specialty stores, etc. frequently carry wholesale brands • Ex. Macy’s mix of wholesale brands (Free People, Michael Kors) and private brands (INC, Giani Bernini, Martha Stewart Collection) Private • Developed and merchandised for exclusive distribution by a particular retailer • Ex. The Gap and Forever 21 • Developed by: • Retailer’s in-house team • Buyers may purchase a portion from a wholesale product developer, or • A large retailer may buy/license the rights to a wholesale brand 16 Advantages of Private Brands • Prices usually lower than competing wholesale brands • Provide retailers with control over quality and marketing • Generally yield higher profit margins • Provide retailers opportunity to enhance their brand image/differentiate • Cultivates customer loyalty What kind of products are they developing? Fashion Level • Basic Product • Seasonal Product • Fashion Forward Product 17 Product Distribution and the Product Development Calendar Geographic implications Channel implications Delivery dates drive the fashion calendar Where, How, and When will the products be distributed? Competitive Advantage Speed-tomarket (Zara) Unique features/aesthetic (Burberry) Superior Quality (Wolford) Differential Advantage = Competitive Edge Unique fit (Wacoal) Minimal carbon footprint (Patagonia) Lower price (Walmart) What is a Supply Chain? All of the companies directly involved in: Designing Supplying material components Manufacturing Distributing apparel Includes auxiliary businesses, such as design bureaus, software providers, sourcing agents, factors (credit agents), patternmaking services, testing labs, consultants, and advertising agencies that play indirect roles Supply Chain Structure and Organization Push systems: designers/product developers produced products they thought consumers would want and pushed them into the marketplace Pull Systems: designers and product developers wait to commit until the last minute so they can collect data about consumer wants/needs The Tools of Supply Chain Management • PLM Tools: • Seasonal concept: business and marketing plans, concepts/mood, color palette, and materials/trim/silhouettes • Line development: merchandising plans, line boards, material usage, market calendars and product tracking • Definition: initial specification, adopted specification, product specification, special size specification, and multichannel specification • Sourcing/costing: vendor collaboration, vendor allocation, multi-sourcing, estimate costing, and quality The Tools of Supply Chain Management Benefits of PLM • Faster time to market and higher inventory turns • Standards and regulatory compliance • Improved cycle times • Improved design review and approval processes • Fewer errors • Less scrap and rework • Greater design efficiency and better product quality • Decreased cost of new product introductions • Improved communication • Reduced product costs and greater net margin profitability • Better resource utilization • Insights into critical processes • Improved integration and communication • Better reporting and analytics • Reduced markdowns So what is the big deal about PD? PD Process Characteristics of PD •The Planning of goods: • Strategic • Creative • Technical • Production • Distribution The Role of Product Development • Consumer driven • Products are created/improved because of customer complaints • Eliminates steps • Defines desired product through detailed standards and specifications • Partners share responsibility and risk for producing a quality product • Dependent on each partner’s ability to meet schedules • Must lend itself to distribution through multiple channels (e.g., stores, Internet, and catalog) Product development Managing Perpetual Change • Strategic, creative, technical , production, and distribution planning of goods • Having a perceived value for a well-defined consumer group • Designed to reach the marketplace when that group is ready to buy Purpose • Understand how the apparel industry adapts to change • Meeting challenges To remain competitive • Choose from variety of information and technology • Integrate them with emerging product technologies, knowledge of customer preferences, and global marketplace resources 5 P’s that make an irresistible product • People • Identify your person/customer • Pain • Understand their struggle • Promise • Create their solution • Process • Be their guide • Price • Price based on value Our Class Project • Teams will be provided a list of product categories • 15 pieces I will assign • 2 additional product categories Collection • Each of those product categories must have at least 2 items you select/create • Won’t just be clothing or soft goods • Teams will create a unique textile pattern • Specific target market You pitch it to me! I determine: • Target market • Teams (…sort of) • Start-up budget Make good choices!
