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AM 270 Week 5

by: luke koppa

AM 270 Week 5 AM 270

luke koppa
GPA 4.0
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About this Document

Line Development
Merchandising processes
Ruoh-Nan Yan
Class Notes
AM 270, merchandising, Product Development, Line Development




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This 5 page Class Notes was uploaded by luke koppa on Friday February 19, 2016. The Class Notes belongs to AM 270 at Colorado State University taught by Ruoh-Nan Yan in Winter 2016. Since its upload, it has received 35 views. For similar materials see Merchandising processes in General at Colorado State University.


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Date Created: 02/19/16
Chapter 9­ Developing Product Lines  Line Development o Determine the actual styles, sizes, and colors that will fill out the line plan o Difference between line planning and line development?  Line Planning guides variety/assortment of the line  Line Development identifies specific merchandise   Primary Forms/Approaches of Line Development  o Purchase of Finished Goods   Finished Goods= merchandise ready for sue by the ultimate consumer   Who is Involved?  Retail merchandisers  o Traditional form of retail line development  o Ex: Old Town boutiques that only sell items manufactured  by other brands   Manufacturer merchandisers  o To complete the product offerings  rd o Ex: Levi’s selling 3  party accessories   Where to Go?  Market: place where buyers and sellers meet to transact business  o Primary Market:   Atlanta (AmericasMart)  Known for gifts/souvenirs   Chicago (Merchandise Mart)  Dallas (Market Center)  Western wear specialization   Los Angeles (L.A. Mart)  New York (Merchandise Mart)  Offer both Permanent and Temporary Showrooms  Region Served: Nationwide o Secondary Markets   Denver  Still fairly large   Seattle  Boston  Difference from primary: smaller size and region it  serves  Region Served: Regional o Trade Shows  Temporary exhibits in a convention center,  merchandise mart, or hotel at which manufacturers  present goods to retail buyers   Off­ Price Specialist Show (NY & Vegas, 2x a year)  Lower end quality or leftover runs   Random/varied assortment but inexpensive   MAGIC/Project/Pool (Vegas, 2x a year)  Show men’s, women’s, kids apparel  MAGIC­ general  Project­ Higher end, international  Pool­ new designers, new lines  ENK International (Vegas & NY, 2x a year)  High end, exclusive feel  WWIN (Vegas 2 x a year)  Women’s Wear in Nevada   Lower price point for women  Not as trendy  Liberty Fairs (Vegas 2x a year)  CurvExpo   Lingerie and Swim   SIA (Denver)  Snow Sports Industries America   Skiing, snowboarding  Apparel and hardgoods   Outdoor Retailer (Salt Lake City 2x a year)  Outdoor industry companies   Apparel and hardgoods  Others   Market Vs. Trade Shows  o Permanent Market showrooms typically offer   Better Ambiance with privacy   Complete range of merchandise   Image of the company  o Trade Shows/Temporary Showrooms typically offer  Little privacy and ambiance   Some exceptions for larger/more exclusive  brands   Select merchandise  May have swatch samples/ catalogues of  colors that cannot be displayed  More current trends  May offer presentations about buying,  trends, media, etc…   What to do @ Markets/Trade Shows  For retailers  o View, evaluate, and/or purchase products  For Manufacturers/Vendors o To sell merchandise (primary goal)  o View competitors lines (price, colors, styles) o Service current customers  o Identify new prospective buyers  o Introduce/test new or modified products  Test buyers reaction before releasing   What to Purchase?  Branded Merchandise  o Identified by a name and/or symbol o Well known   Private Labels   Licensing o Definition: Contract between the owner (licensor) of a  merchandising property and a company who wants to use  the property (licensee) for an agreed period of time, within  an agreed territory  Breach of agreement results in penalties o Use of a merchandising property in the design of a product  or a product line  o Examples:  Coca­Cola, sports teams logos, cartoon characters   Mossimo and Target  Mossimo designs products  Target­ product development, sourcing,  production  Simply Vera, Princess Vera Wang by Vera Wang @ Kohls  Vera Wang designs and produces  Kohls distributes   Jason Wu and Target  Jason Wu designed and produced  Target­ distribution o Deciding which merchandising property to choose for  products?  Target market   Product category   Royalty fee (1%­15%)  Fee charged for rights to use   More well­known brands have higher  royalty fees  Agreements regarding design, production, and  distribution  o Licensing Expo in Las Vegas  o Internal Product Development   Definition: design and engineering of products to be producible, salable,  and profitable   Time Frame: moved from 56 weeks (1980s) to 12 weeks currently   Zara­ 4 weeks   3 Phases of Internal Product Development  Creative Design (Pre­adoption) o Purpose  Research/market analysis   Creativity   Formation of product lines  Cost estimates  o Get samples of Designs   Critique and revise  Get new revised prototypes  Line Adoption o Purpose  To determine which designs should be included and go forward into technical design   May also adjust/revise certain designs  before adopting them into the line  To decide the styles for which sales and catalog  samples will be made  o Designs: about 1/3 of styles will be adopted   Technical Design (post­adoption) o Purpose  Perfect styling and fit of chosen styles   Perfect production patterns  Used in mass­production  Ensure quality and performance of materials   Develop detailed specifications   Develop detailed costs   Used later to finalize wholesale/retail price  Traditional Process of product development for Manufacturers   Sales samples ready for line release at wholesale markets o Line preview­ show prototypes to sales team  internal o Line release­ show samples to buyers (@ markets)  External  o Used for promotional purpose and selling purpose o Combination of Both   Ex: Nordstrom & other department stores


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