ADM4307 Apparel Manufacturing

By Dr. Shin, Ph.D. Associate Professor

Marketing is a part of a firm’s strategic plan. To market product successfully; Positioning the firm relative to target markets and the competition. Identifying “Target markets” for their products Continually monitoring

markets.

Market segmentation and Target markets Target markets 1) Core customers (the foundation of their business) 2) Fringe customers (potential for business growth)

Market segmentation Mass market strategies Middle income class, large portion of the U.S. population (about 80%)

Multiple-segment strategies Two or more marketing, Examples: men’s sport shirt + a line for women’s

shirts Niche marketing (or Micromarketing) Narrowly defined target market (gender, price range, size range, life style)

A firm may change its conception of target market; 1) Distribution changes among age groups (Example: Y Generation) 2) Population shift to the south and west. 3) Needs of special market segments: petite, plus, tall, and large size.

Marketing strategy considers; Marketing objectives Analysis of the competition Market positioning and product differentiation Product sell-through

Marketing objectives Market penetration

Expends sales of current products in current markets Achieved through

Price promotion/ Low pricing Brand/ Store loyalty Convenience/ Accessibility /Internet

Market development Seek new markets or new uses for products

Diversification Develop new products aimed at new markets

Analysis of the competition Survey customers/ reading the trade press/ consulting industry

directories/ and participating in trade associations. Determining potential competition is difficult.

Market analysis, Market positioning, and Product differentiation To make positioning decisions, the firm must know 1) purchase criteria of their target customers 2) product performance expectations 3) customers’ perceptions of competing product

Product differentiation by: Labeling, price, quality, customer service, fit, fashion, styling.

Market positioning

Product sell-through 1) Push-through system 2) Pull-through system (the essence of QR)

Sale Forecasting “Outlines expected company sales for a specific good to a specific

consumer group over a specific period of time” Research method: Qualitative methods (Consulting) Quantitative methods (statistical analysis)

Reflect market potential, NOT production capability.

It’s relate to Channel Distribution. Retail strategies: Selling distressed merchandise in outlet store. Social

media + online.

Wholesale Market Strategies A place where a group of apparel manufacturers is showing their

product lines for sale at wholesale. Target of the Wholesale force -> Retailers ->Target Consumers. Sale reps (2 types): 1) Inside sales rep and 2) Outside sales rep. QR Partnering arrangements: Examples from https://www.findfashionevents.com/en/show-guide.html

MAGIC International Trade Show in Las Vegas (twice a year) Website: https://www.magicfashionevents.com/en/home.html

Marketing calendar Timing of product development, production, and presentation is

critical. Selling periods: Factors: Seasonal, Holidays, Fashion change, etc. T-shirts (52 weeks) Seasonal items (8-12 weeks)

6 selling periods a year and 5 lines a season.

Marketing dates Line review: Presentation of the line to the

sales staff. 2weeks prior to line release

Line release: Line must be complete for

showing. Start to ship: Line is ready for delivery to

retail store. Ship complete: Date by which retailer orders

are to be completely filled within 3 weeks.

Global marketing Marketing on the Internet, Social media. Labeling and Licensing Labels: Legally required labels National brands and Trademarks Private brands

Merchandising license agreements Intellectual property Licensing and Licensing contracts Royalty usually 1~15 % of sales.

Merchandising is: Planning Developing Presenting product lines for a target market involving pricing, assortment,

styling, and timing.

Merchandising Calendar:

• The timing required to develop, plan, and present for each selling period.

• Based on 52 week merchandising cycle

• Selling periods (3~52 weeks) defined as weeks of sale for products.

Merchandising calendar example from weconnect fashion.com

Lead time: The time between placing an order and delivering merchandise.

Customer-driven. The importance of level of inventory Enough inventory to minimize lost sales but not so much as to have

lots of excess at the end of the selling period.

In the past (56 weeks) RetailersManufacturers

CustomersQuick Response

(Short time)

Product line: The total merchandise mix presented for sale. Merchandisers/ Designers when planning lines think in groups rather

than individual styles.

Categories for merchandisable groups: Separate: Tops/ bottoms or both items

Coordinates: Groups of different products with common characteristics such as style,

trim, colors, etc. Multi-piece style (e.g. Suits). Related separates: Displayed and sold like a separates line but has even more coordinating

potential because of common colors and materials.

Merchandising responsibilities: Merchandising taxonomy detailing planning, developing, and

presenting a product line.

Line planning

Line Development

Line presentation

Line planning: Guides, defines, and limits the line by evaluating merchandise mix and

forecasting. Look at last seasons sales at same selling period. Review current market information Brainstorm for new ideas Analyze market

Planning merchandise budgets by: Looking at last years sales and plan for sales increase/decreases. Take into consideration new accounts and current retail relationships. Talk with buyers on their projected buying % for the upcoming selling period.

Planning merchandise assortments based on budgets: A balanced assortment matches the assortment plan to customer

demand. Assortment balance is based on the model stock plans that identify

SKU (Number of Stock Keeping Units).

SKU = Number of Styles x Number of Sizes x Number of Colors

Number of Styles

Number of Sizes

Number of Colors

Assortment: Range of choices offered, usually defined by: Style + Size + Color

Assortment Variety: Total number of unique items that must be produced to satisfy the design plan

Assortment Volume: Number of units that must be sold to achieve planned sales

Assortment Diversity: Is measured by Volume per SKU (VSA) for the assortment. Example: 5 or less means losing sales.

Assortment Distribution: Allocation of volume broken down by style, size, and color.

Analyze and update merchandise plans when conditions change in the market, merchandising plans must be adjusted.

Case Cartwheels, Figure 3-9. Assortment plan A, B, and C are suggested for different square feet:

150, 100, and 50. Given numbers: Average price for tops :$20 Planned annual volume: $12,500 Distribution of sales: Spring (15%), Summer (10%),BTS (60%), and Holiday

(15%). BTS volume: $12,500 x 60%= $7,500 ($7500/$20=375 units) BTS VSA (Volume per SKU for an assortment): 375 units /120 SKU =

3.13

See Assortment plan C Variety (120 SKU) = 4 styles x 6 sizes x 5 colors. Number of styles, sizes, colors (factors) are based on last year record.

4 Styles (%), 40% +30%+20%+10% =100%

Table 3-1 volume per assortment factor Style1: 40% x 375 =150 units per style Size3 (Size 8, sold well last year): 36% x 375= 135 units per size

Table 3-2 Volume per SKU, Style 1 (150 units) See column Color 1, Size 1: 150 units (style 1) x 9% x 35% =4.725 = 5

Line development: Includes all processes required to translate a line plan into real

merchandise. Line concept: First phase, determining the look and appeal that establishes identity and

salability. Current issues, fashion trends Inspiration/Concept board.

Product development: The design required to make products salable and producible. Apparel product development (2 phases) 1) Creative design- focus on creativity and formation of merchandisable

groups 2) Technical design- perfecting the style, fit, patterns, also including specs

and costing.

Line presentation Wholesale level: Line preview- Sales reps see the line and become inspired with its sales

potential. Line release- must coincide with market dates, target date for showing to

buyers.

Body Measurements (3D Body scan) It is a Very first step of production process. Use for Technical Specification to make a garment!

For the 3D Body scan process, Hair should be above the neck- If long hair, bring a hair pin/hair band.

Roll and tie up. Wear a light underwear (any color, but NO black clothing). No shiny metal pieces. Scanning process less than 1 minute + changing clothing (very by the

person). No one can see you during the process. Very Safe- a light base.

Examples from the student work, Mackenzie Burger

Examples from the student work, Mackenzie Burger

Examples from the student work, Mackenzie Burger

Examples from the student work, Mackenzie Burger