KEY FACTORS FOR SUCCESS (W1_ROC3)
RESEARCH- A CRITICAL COMPONENT (Competition, Profile of Products, Wants, Trends, What Works)
THE MERCHANDISE MIX: Product Mix, Volume, Place, Timing
PRICE POINTS WILL APPEAL TO DIFFERING CONSUMER GROUPS
PRODUCT MIX MUST MEET CUSTOMER DEMAND
INTANGIBLES SUCH AS STORE AMBIENCE AND SERVICE ARE SECONDARY
Strategies:
marketing (W2_RCO1) - quality over quantity, monitoring and adjusting finances
communicate and be transparent about goals (W2_RCO4)
Know strengths and weaknesses
Be open to change to make business idea more viable/ widen target market (W2_ROC5)
network
emphasize on customer service and brand awareness - Know customer
W1_RCO1 The modern customer:
BETTER INFORMED, HIGHER
EXPECTATIONS
PRODUCT PRESENTATION MUST ELICIT
DESIRE TO BUY
STIMULATE THE SENSES:
-Creative Product Presentation and Product Mixes
EXAMPLE: FASHION AND LIFESTYLE RETAILER
ANTHROPOLOGIE
SPEED TO MARKET MEANS PRIMARILY GETTING
A QUALITY PRODUCT AT THE RIGHT PRICE.
-Challenge of Satisfying Existing Customers
-Developing New Customers
-Meeting Speed to Market Imperatives
-
W4_RCO1- Meeting customer demand with the right product mix
-Consumers are key influencers In all merchandising decisions but retailers have limited access to their Input.
The Merchandiser makes decisions about brands, assortment and promotions based on research and own judgment.
Getting this wrong will cost 'youkoso' in terms of money and time
W8_RCO3 Customer context
DESIGNERS OFTEN LOOK AT WHAT OTHER BRANDS ARE DOING, BUT PAY LITTLE ATTENTION TO WHAT CUSTOMERS WANT
TREND REPORTS ARE ABOUT CULTURAL INFORMATION
HOW DESIGNERS THINK ABOUT THE USERS OF THEIR GARMENTS VARIES
DESIGNERS OFTEN HAVE VERY LITTLE DIRECT CONTACT WITH CUSTOMERS
DESIGNERS THINK ABOUT WHERE THEIR BRAND FITS WITHIN MARKET NICHES
THEY IMAGINE A LIFESTYLE AND DESIRE OF A PROTOTYPICAL CUSTOMER
W2_RCO1 Emotional economy:
MAJOR SHIFT IN BUSINESS FOCUS AS THE ECONOMY HAS MOVED FROM INDUSTRIAL TO SERVICE-BASED:
Shift from manufacturing goods to selling goods and services
Importance of getting inside the mind of the consumer
THE EMOTIONAL ECONOMY MARKETING HAS UNDERGONE A PROFOUND TRANSFORMATION
PRODUCTS ARE NO LONGER SIMPLY MANUFACTURED AND SOLD
OVERSUPPLY: THERE IS A GLUT OF PRODUCTS AND SERVICES ON THE MARKET
DEREGULATION, GLOBALISATION, ECONOMIES OF SCALE AND THE INCREASING REACH OF TECHNOLOGY ARE HAVING A SIGNIFICANT IMPACT INCREASINGLY CROWDED MARKETPLACE
W2_RCO4 Brand Integrity
BRAND INTEGRITY: 'youkoso' IS CLEARLY UNDERSTOOD, IDENTIFIED AND RESPECTED
'youkoso' IS NOT MIXED OR
MINGLED WITH LESSER BRANDS OR
UNBRANDED PRODUCTS
W2_RCO5 Branding strategies: line extensions, brand extensions, new brands, multi-brands eg. 'youkoso' potentially expanding to target a younger market once established
FAILURE FOR SME
Business started for wrong reasons
Poor management
Insufficient capital
Location
Lack of planning
Over expansion
Lack of online/ social media presence
How can it sustain itself (avert failure):
Manage smaller loans, be committed, understand customer
Customer service
Marketing
Focus and planning
Networking
Evolve or perish
Operational efficiency
Refine target market
Take risks
Contingency plan
Leadership
W4_RCO2 Brand and the right product mix
THE FIRST STEP IN OFFERING RELEVANT MERCHANDISE IS DEFINING “youkoso”.
It IS CHARACTERISED BY:
Season, Theme, Colour, Style
THE BRAND IS COMMUNICATED THROUGH
THE MERCHANDISE AS WELL AS:
Advertising
•Sales staff
• In-store displays
• Public relations, e.g. celebrity endorsements
Continued.. “youkoso” MUST DEVELOP THE RIGHT MIX OF PRODUCTS TO MAKE A COHERENT OFFERING AND UNDERSTAND THE UNIQUE SELLING PROPOSITION (USP) OF THE PRODUCTS TO ENSURE THE MERCHANDISE SUPPORTS OVERALL BRAND STRATEGY
W11_RCO1 RANGE PLANNING
PRODUCT MIX = PRODUCT RANGE
PRODUCT MIX IS THE ASSORTMENT OF GOODS A COMPANY SELLS AT ANY TIME
ANALYSE WHAT HAPPENED IN PREVIOUS SEASONS
IMPROVED TECHNOLOGY KEEPS PLANNING TEAMS BETTER INFORMED ON
• Best and worst selling styles, colours and sizes
• Customer sales patterns
• Geographic variations
W11_RCO3 Balance, cohesion and synchronisation
ENSURE BALANCE, COHESION AND SYNCHRONISATION AMONG GARMENT CATEGORIES:
Is percentage breakdown appropriate?
• Is balance correct for customer requirements?
• Are there enough options to satisfy
preferences and tastes?
W11_RCO5 Inventory management
Effective inventory management requires balancing:
• Reorder quantity
• Inventory investment
• Expected demand
• Lead time
Orders must arrive before stock is too depleted, but
not before it is necessary
No “one size fits all” model for managing inventory
W4_RCO5 Promotion
IT IS NOT ENOUGH TO STOCK THE RIGHT MERCHANDISE THE BRAND MESSAGE, TIMING AND PLACE OF PURCHASE NEED TO BE PROMOTED TO REACH CUSTOMERS INTEGRATED MARKETING COMMUNICATIONS (IMC) USES MULTIPLE CHANNELS TO GENERATE THE GREATEST REACH DELIVERING THE MOST PRODUCTIVE PROMOTION REQUIRES:
A consumer-centred promotion
Accurate forecasts of demand
W8_RCO4 Marketing Context
Garments are created by designers, but are communicated through images created by marketers
Images are selected and organised by editors of fashion magazines
“youkoso” may be marketed through advertising campaigns created by third parties
Designers and other industry insiders create a major part of one another’s contexts