Product Development Management

Session 11

Business of Design

Role of a Merchandiser in Product Development Process

What is Product Development?

product development (PD) is the term used to describe the complete process of bringing a new product to market

What is Product Development?

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

What is Product Development?

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.

Stages of P.D. process

1. 2. 3. 4. 5. idea generation idea screening development process developing of marketing strategy for the new product development of the business model around the new product production of new product market testing of new product commercialization phase
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6. 7. 8.

Stages of P.D. process

1. idea generation a. search for new products by focusing on customer needs and demands b. Also, study competitors 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

Stages of P.D. process

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

Stages of P.D. process

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

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

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.
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Stages of P.D. process

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

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

7. The 7th stage involves market testing of new

product. The new product is ready with brand

name, packaging, price to capture space in consumers mind. 8. The 8th stage involves launching of product across target market backed by a proper marketing and strategy plan. This
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stage

is

called

commercialization phase.

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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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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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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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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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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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, planning
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sales

forecasting,

and

promotional