2. Role of a Merchandiser in
Product Development Process
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3. What is Product Development?
product development (PD) is the term used
to describe the complete process of
bringing a new product to market
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4. There are two parallel paths involved in the PD
process:
one involves the idea generation, product design
and detail engineering;
the other involves market research and marketing
analysis
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What is Product Development?
5. Companies typically see new product development
as the first stage in generating and commercializing
new products within the overall strategic process of
product life cycle management used to maintain or
grow their market share.
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What is Product Development?
6. Stages of P.D. process
1. idea generation
2. idea screening
3. development process
4. developing of marketing strategy for the
new product
5. development of the business model around
the new product
6. production of new product
7. market testing of new product
8. commercialization phase6
7. 1. idea generation
a. search for new products by focusing on customer
needs and demands
b. Also, study competitor’s product generate
ideas
c. Ask what more customers want
d. top management is also source of new ideas; e.g.
Steve Jobs of Apple was known to participate
actively in an idea generation
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Stages of P.D. process
8. 1. idea generation
e. 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 base
for idea generation
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Stages of P.D. process
9. 2. idea screening
a. Not all new ideas are implemented
b. ideas fall into three categories
promising ideas, marginal ideas and rejects
c. Promising ideas are further processed by
screening committee to be ready for the next
stage
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Stages of P.D. process
10. 3. development process
a. At this stage a product idea is converted into
several product concepts amongst which best-fit
product is then placed against competitors to
finalize marketing and positioning strategy
b. Product concept is introduced to a focus group in
a form of proto-type to understand their reaction
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Stages of P.D. process
11. 4. developing of marketing strategy for new product
a. The marketing strategy involves evaluation of
market size, product demand, growth potential,
profit estimate in first few years.
b. Further marketing strategy plan is developed with
the launch of product, selection of distribution
channel and budgetary requirements for the 1st
year. 11
Stages of P.D. process
12. 5. development of biz. model around new product
a. Business models start with estimation of sales,
frequency of purchase, and nature of business.
b. cost and expense involved in production and
distribution of new product is estimated. On that
basis profit estimations are reached.
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Stages of P.D. process
13. 6. production of new product
a. Here more than one possible product are created
b. from proto-type to finalized products are
produced
c. Decisions are taken from operation point of view
whether is technically and commercially feasible
to continue production
d. Unfeasible products are abandoned
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Stages of P.D. process
14. 7. The 7th stage involves market testing of new
product. The new product is ready with brand
name, packaging, price to capture space in
consumer’s mind.
8. The 8th stage involves launching of product across
target market backed by a proper marketing and
strategy plan. This stage is called
commercialization phase.
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Stages of P.D. process
15. What does a P.D.Merchandiser do?
1. Market research for recent market & technology
development in fashion trade
2. Coordinating with manufacturers/vendors/buying
agencies to develop the product
3. Liaisoning with market leaders for product
development & technical specifications
4. Vendor development at local/global level
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16. What does a P.D.Merchandiser do?
5. Making presentation to the management/client
the latest trends in the global fashion market,
changing consumer behaviour, customer needs.
6. Develop new products and undertake its
feasibility study
7. To be in regular contact with customers/clients
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17. What does a P.D.Merchandiser do?
8. Be able to use CAD/MTM system to create
patterns for production
9. Effectively communicate pattern construction
and measurement details with tailors
10. Be responsible to train other employees on an as-
needed basis in order to upgrade quality
production
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18. What does a P.D.Merchandiser do?
11. Resolving any issues that may arise with fitting
and sewing
SUCCESSFULLY take a product from concept to
commercialization
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19. Common traits of a P.D.Merchandiser
1. unique combination of creative & analytical talents
2. must be able to conceptualize new ideas, research
the new ideas, and evaluate them objectively from
a market and financial standpoint
3. Should have a high degree of tolerance for
uncertainty since new P.D. is ever changing
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20. Common traits of a P.D.Merchandiser
4. Must specialize in development and planning
5. Should have a knack to discover opportunities in
the market
6. Should have skills and understanding in marketing
research, sales forecasting, and promotional
planning
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