Role of merch. in pd process

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Role of merch. in pd process

  1. 1. Product DevelopmentManagementSession 4Business of Design
  2. 2. Role of a Merchandiser inProduct Development Process2
  3. 3. What is Product Development?product development (PD) is the term usedto describe the complete process ofbringing a new product to market3
  4. 4. There are two parallel paths involved in the PDprocess:one involves the idea generation, product designand detail engineering;the other involves market research and marketinganalysis4What is Product Development?
  5. 5. Companies typically see new product developmentas the first stage in generating and commercializingnew products within the overall strategic process ofproduct life cycle management used to maintain orgrow their market share.5What is Product Development?
  6. 6. Stages of P.D. process1. idea generation2. idea screening3. development process4. developing of marketing strategy for thenew product5. development of the business model aroundthe new product6. production of new product7. market testing of new product8. commercialization phase6
  7. 7. 1. idea generationa. search for new products by focusing on customerneeds and demandsb. Also, study competitor’s product generateideasc. Ask what more customers wantd. top management is also source of new ideas; e.g.Steve Jobs of Apple was known to participateactively in an idea generation7Stages of P.D. process
  8. 8. 1. idea generatione. Research groups comprising of textile labs,production technicians, industry leaders,component manufacturers (fabric, accessories,machines/equipment, CAD, etc.), patent holders,colleges and universities also serve as the basefor idea generation8Stages of P.D. process
  9. 9. 2. idea screeninga. Not all new ideas are implementedb. ideas fall into three categories promising ideas, marginal ideas and rejectsc. Promising ideas are further processed byscreening committee to be ready for the nextstage9Stages of P.D. process
  10. 10. 3. development processa. At this stage a product idea is converted intoseveral product concepts amongst which best-fitproduct is then placed against competitors tofinalize marketing and positioning strategyb. Product concept is introduced to a focus group ina form of proto-type to understand their reaction10Stages of P.D. process
  11. 11. 4. developing of marketing strategy for new producta. The marketing strategy involves evaluation ofmarket size, product demand, growth potential,profit estimate in first few years.b. Further marketing strategy plan is developed withthe launch of product, selection of distributionchannel and budgetary requirements for the 1styear. 11Stages of P.D. process
  12. 12. 5. development of biz. model around new producta. Business models start with estimation of sales,frequency of purchase, and nature of business.b. cost and expense involved in production anddistribution of new product is estimated. On thatbasis profit estimations are reached.12Stages of P.D. process
  13. 13. 6. production of new producta. Here more than one possible product are createdb. from proto-type to finalized products areproducedc. Decisions are taken from operation point of viewwhether is technically and commercially feasibleto continue productiond. Unfeasible products are abandoned13Stages of P.D. process
  14. 14. 7. The 7th stage involves market testing of newproduct. The new product is ready with brandname, packaging, price to capture space inconsumer’s mind.8. The 8th stage involves launching of product acrosstarget market backed by a proper marketing andstrategy plan. This stage is calledcommercialization phase.14Stages of P.D. process
  15. 15. What does a P.D.Merchandiser do?1. Market research for recent market & technologydevelopment in fashion trade2. Coordinating with manufacturers/vendors/buyingagencies to develop the product3. Liaisoning with market leaders for productdevelopment & technical specifications4. Vendor development at local/global level15
  16. 16. What does a P.D.Merchandiser do?5. Making presentation to the management/clientthe latest trends in the global fashion market,changing consumer behaviour, customer needs.6. Develop new products and undertake itsfeasibility study7. To be in regular contact with customers/clients16
  17. 17. What does a P.D.Merchandiser do?8. Be able to use CAD/MTM system to createpatterns for production9. Effectively communicate pattern constructionand measurement details with tailors10. Be responsible to train other employees on an as-needed basis in order to upgrade qualityproduction17
  18. 18. What does a P.D.Merchandiser do?11. Resolving any issues that may arise with fittingand sewingSUCCESSFULLY take a product from concept tocommercialization18
  19. 19. Common traits of a P.D.Merchandiser1. unique combination of creative & analytical talents2. must be able to conceptualize new ideas, researchthe new ideas, and evaluate them objectively froma market and financial standpoint3. Should have a high degree of tolerance foruncertainty since new P.D. is ever changing19
  20. 20. Common traits of a P.D.Merchandiser4. Must specialize in development and planning5. Should have a knack to discover opportunities inthe market6. Should have skills and understanding in marketingresearch, sales forecasting, and promotionalplanning20

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