CTD 231 Lecture 2: CTD 231 Chapter 2 Notes

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University of Alabama
Clothing, Textiles and Interior Design
CTD 231

CTD 231 Chapter 2 Notes Business Planning Business Plan • Central to the decision-making process of any apparel firm ➢ Aims, objectives, and strategy for the future • Emphasis depends on core business (manufacturing or retailing) and how the company markets itself (i.e., wholesaler, retailer, or combination • Provides structure to an ongoing process constantly being adjusted to respond to consumer demands • Links concepts related to target consumer and product line to financial goals • Forms basis of planning, development, sourcing, and production 5 Basic Business Functions • Top-level management conceives particular organization ➢ Merchandising – planning, developing, and presenting product line ➢ Production – making the product ➢ Finance – all accounting activities ➢ Operations – upkeep of equipment and facilities, shipping ➢ Marketing – advertising, promotional objectives, sales goals, marketing programs and tools Business Planning • Plan components 1. Strategic planning 2. Merchandise planning 3. Creative planning 4. Technical planning 5. Production planning 1. Strategic Planning • Focuses on a company’s business direction based on its mission and vision statements ➢ Brand image and portfolio ➢ Product mix ➢ Price points ➢ Channels of distribution ➢ Strategic partnerships ➢ Growth and divestment • Develops a financial plan and budget that anticipates monetary income and expenditures of the firm 2. Merchandise Planning • The process of line/merchandising planning, line development, and presenting product lines for identified target markets with regard to pricing, assortment, styling, and timing ➢ Identifies the resources needed to meet profit, sales, and margin objectives for a specific season by company division ➢ Links strategic planning to creative, technical, and production planning, as well as sales and marketing, that follow • The merchandise plan is further defined by: ➢ Line or range plan – sets sales and margin goals for groups or lines within that division in relation to merchandise mix, number of deliveries and business projections ➢ Assortment plans – breaks down the line plan into components that address what product, how much of it, color and size assortment, and delivery dates ➢ Merchandise calendar – controls the events required to get the planned apparel products to the customer at the right time • Merchandise Challenges in Today’s Business Environment ➢ Increased competition between wholesale and private brands ➢ Increased demand for newness and innovation ➢ Consolidation of retail market 3. Creative Planning • Tracks trends and interprets them for the company’s target market • Trend and design professionals select color combinations, textiles, and basic design of the products to be produced ****PANTONE COLOR WEBSITE******* 4. Technical Planning • Further defines styles by developing fit standards, materials, and construction specifications which are the foundation for building a quality garment that meets customer expectations 5. Production Planning • Links merchandise decision with design and technical decisions such as, ➢ Costs ➢ Timeline ➢ Quality ➢ Schedule ➢ Production ➢ Transit ➢ Imports and tariffs The Apparel Product Development Process and Its Stages • All the processes needed to take a garment from design inception to delivery to the final customer ➢ Line Concept – result of trend research; mood, theme, and key elements for line identity ➢ Line Development – design team translates concepts into groups of products for season (prototype) ➢ Line Presentation – shows proposed line to staff for line selection; production sample is made and evaluated Product Development Cycle • Refers to the time it takes to develop product ➢ Original designer apparel takes the longest time to develop ➢ Knockoffs or copies take the least time to develop • Traditional product development timetable is 4-6 months • The more processes outsources and the more partners involved, the longer the cycle • Delivery dates to the retailer set the pace for the product development calendar • Product developers work on multiple deliveries at the same time Decisions Regarding Product Mix and Classification • North American Industry Classification System (NAICS) ➢ New method of classifying firms by the products they produce ➢ Compatibility in record keeping with global partners ➢ Reflects changes in the meth
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