Session 10 Merchandising_2

8/3/2019 Session 10 Merchandising_2

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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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Session 10 Merchandising_2

Documents

Transcript of Session 10 Merchandising_2