session 10 merchandising_2
TRANSCRIPT
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JONES APPAREL
GROUP
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INTRODUCTION
LORRAINE TROCINO is the merchandiser of Jonesapparel group.
Division President Profitability
Design Department Product development
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CLASSIC MERCHANDISING
FUNCTIONS
PRODUCTDEVELOPMENT(DESIG
NDEPARTME
NT)
LINEPLAN(DESIGN
DIRECT
OR)
NEGOTIATEPRICES(T
EXTILEDEPARTMEN
T)
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EDUCATIONAL BACKGROUND
Strong math skills
Basic logic and an understanding of fundamental
apparel and textile functions
Basic garment construction
Understanding of textiles
Work study
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LINE PLAN
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Design Sent To Factories
Communicated Through Computer
Line Plan
Projected Sales (Division President)
Concept Plan (Design Director)
Vision
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PRODUCTION PLANNING
AND CONTROL
Merchandisers communicate withagents
Agents go to factories to determinelead time and deliveries - SCHEDULE
Cutting plan for product line (Divisionpresident)
Follow up by production department to
assure deliveries
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MERCHANDISING CALENDAR
SCHEDULE
FED INMAINFRAMECOMPUTERS
FOLLOW UPOF THECURRENTSTANDINGAND DELAYS
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FINDINGS
Merchandising department plays a vital role in thesmooth functioning of the product development.
Merchandising department is the liaison betweendesign, sales and production.
Success of department is due to the systematic andstrategic planning and control.
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Consumer buyingpattern force Marketing
Change
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Change in role of merchandisers.
Introduction
Consumers boughtwhat was being
produced.
What consumers wantis being produced.
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Product development
Cost inventory
Delivery
Manufacturing
Time Limit
Which Provides Right apparel product at suitable price andquality to consumers.
Factors to be controlled
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No. of seasons in which product line will be presented.
Date of Release.
Start and end date of shipment.
Marketing Calenders
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Optimum scheduling of manufacturing.
Provide necessary shelf stock position.
Key event Calendar
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Primary control tool in an apparel company.
Design to control key events needed to get right
apparel product, in right mix, at right price, to thecustomer at right time.
Merchandising Calendar
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Develop a proposed seasons objectives.
Where and if new seasons should be added.
amount of fabric, styles, construction, SKUs in theproduct line.
Line Plan development
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Putting together the line for the season.
Necessary market research.
Garment construction research.
Continuous Function.
Product Development
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Designer sample preparation.
Pre-costing
Garment specification
Quality specification
Timely scheduling of product engineering
Style Adoption
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Estimate sales for each style.
After final adoption making of more sure-footed
forecast
NOT authorization to produce.
Only plans, not commitments.
Forecasting
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Forecasting by style.
Developing shelf stock plan.
Manufacturing Plan
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Timely procurement.
Delivery of yarn.
Availability of yarn and fabrics.
Optimum use of capital investment.
Control of material turns.
Minimization of loss.
Fabric and Yarn
requirements
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Monitors inventory levels.
Maintains predetermined level of customer support.
Inventory Management
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Direct manufacturing function.
Important for proper delivery.
Work in process
inventory
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Manufacturing Throughput
Customer Service
Season Critique
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Need for precise planning and accurate controls inevery phase of merchandising process is muchgreater in todays fast pace global market place.
Conclusions
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LINEDEVELOPMENTSTRUCTURE
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GARY SIMMONS- PRESIDENT
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VF PLAYWEAR
DRIVERS OF
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GENERAL MANAGER OF MERCHANDISING
LEE- BRAND MANAGER FOR MERCHANDISING ANDSALES( SIZE OF BUSINESS)
NIKE- VP OF MERCHANDISING ( FOR INFANTS,TODDLERS, BOYS AND GIRLS)
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DRIVERS OF
PRODUCTS:
HOW DESIGNER
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WITH ASSISTANT DESIGNER
WORKS IN CONCERN WITH MERCHANDISINGASSISSTANT ( MA) AND MERCHANDISINGSPECIALIST(MS).
MA AND MS REPORTS TO GM OFMERCHANDISING
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HOW DESIGNER
WORKS
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DESIGNER & ASSISTANT DESIGNER
MA AND MS.
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TWO PILLARS:
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DESIGN PILLAR-DESIGN BUSINESSOPPORTUNITIES
ANALYST AND PAPERWORK PILLAR- ANALYSETHOSE BUSINESS OPPORTUNITIES.
GM COORDINATES BOTH.
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MARKETING
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THEY PLAN FOR 3 YEARS BUT FOUCUS ON THE1ST YEAR.
AUGUST- INITIAL PLAN
NOVEMBER- RETAIL PLAN
JAN- FINAL PLAN
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MARKETING
STRATEGY
PRODUCT MARKETING
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FOCUS ON INITIAL SALES GOAL.
BUSINESS OPPORTUNITIES SET BY CLIENTS ORPRODUCT CATEGORIES.
SALES ARE IN CONCERNED WITH MERCHANDISING
AFTER PMS COMES A FORMALISED PRODUCTMARKETING STRATEGY SHEET.
IT STATES IF WE CAN SELL $10 MILLION , HOWMUCH TO ALLOT TO PARTICULAR CATEGORY
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PRODUCT MARKETING
STARTEGY-
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THIS IS TO DRIVE SEASON DRIVEN CATEGORIES.
WE DO OUR LINE PLAN
FROM THIS WE PROJECT OUR GROSS MARGINS
AND OUR PRODUCTION PLANNING FORECAST.
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HOW MUCH VOLUME
HOW MANY STYLE
INCREASE IN PRODUCTIVITY PER STYLE
TO INCREASE BUSINESS BY 10% ADD 2-3 %MORE STYLE
BELIEVES- INCREASING IN DOZENS
AFTER INITIAL FORECAST- SOME STYLESDROPPED
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LINE PLAN:
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AFTER MEETING MORE STYLES ARE DROPED
AFTER 50-55% SALES DROP MORE STYLES.
WE CUT STYLES- SO FROM INITIAL PLANONWARDS WE ALWAYS INCREASE OURPRODUCTIVITY PER STYLES
ALLOWS US TO INJECT A NEW STYLE,WITHOUTDILUTING PER STYLE VOLUME.
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DEVELOP FORECAST FOR SALES ,30 DAYSBEFORE ONSALE .
IT IS FOR MERCHANDISERS AND KEY SALES
PEOPLE.
RERANKING OF LINE WITH ACTUAL SALESSAMPLE- AT SALESMEETING
TO PLAN MARKETING STRATEGY.
SEPARATE PLAN FOR REORDERABLES.
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SALES FORECAST:
TRIANGLE
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SELL THROUGHS BY THE CUSTOMER
LINE REVIEWS DURING LINE DEVELOPMENT
PROCESS. SALES DEPARTMENT INPUT.
THIS TRIANGLE DRIVES OUR FORECASTING.
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TRIANGLE
APPROACH:
MERCHANDISING
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40 STEPS
LINE PLAN- STARTSHIP AND ENDSHIP
DEVELOPED BY MERCHANDISERS
BLENDS MARKETING DEPT. AND OPERATIONALCALENDERS
USED TO DEVELOP , TRACK INFORMATION AND
PROGRESS
ACCOMMODATE CHANGES.
2 SITES- B2B AND B2C
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MERCHANDISING
CALENDER
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NPD GROUPFOR PANEL RESEARCH
FOCUS GROUP
HELP FROM SITES- IMMEDIATE, 24 HOURSRESPONSE
SITE- HEALTHTEXT.COM
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