Lecture One

Question 1

What is a merchandiser?

Answer 1

Works with the buyer on producing stock mix according to trends and budgets. Deals with stock and deliveries in order to allocate to stores

Question 2

Different approaches to product management?

Answer 2

Luxury- Chanel - fashion leader unique ranges
National chains - top shop - accessible cash fashion
Boutiques - independent style
Online - asos - 27/7 shopping
Supermarkets - f&f in tesco cheap
Niche - timberlands - strong target market

Question 3

Different pressures wishing management of fashion?

Answer 3

Brand management - limits product range to fit brand personality
Consumerism - buyers fed on products
Technology- the supply chain is enhanced
Globalism - free trade and supply opportunities

Question 4

What do the two things businesses need to think about when supplying a product?

Answer 4

Be relevant to trends

Create wealth of business and stakeholders

Question 5

What is the definition of fashion?

Answer 5

A style or mode especially of dress usage in respect of behaviour and etiquette

Question 6

What do fashion businesses need/do to know to be successful

Answer 6

Relevant to catwalks
Correct trend interpretation
Target a product range
Make sure customer understands inspirations and product

Question 7

What does business mean to you?

Answer 7

A profession or trade. A business is a good or service being sold in order to satisfy customers needs and wants in order to generate profitability

Question 8

How does business put success in their criteria?

Answer 8

Business trends
Risks
Target customers

Question 9

What do fashion business’s focus on?

Answer 9

Awareness and interpretation- trends, culture and market

Awareness and interpretation of financial influence - budget balance sheet etc

Question 10

What two fashion processes can produce a successful product

Answer 10

Product management process, financial process

Question 11

What is a product

Answer 11

A tangible item

Question 12

The role of the product?

Answer 12

The consumer will have an issue the product should solve

In fashion the problem solver is about self expression

Question 13

What do consumers look for in a product?

Answer 13

Trust to fit attitude to fashion
Value for money
Ease of purchase
Fitting to purpose

Question 14

What is sales turnover

Answer 14

Money generated by the product (influenced by b&m team)

Question 15

What is cost of goods sold?

Answer 15

Generated by cost of making the product

B&m team will pay suppliers cash markdowns

Question 16

Gross trading profit

Answer 16

The final amount after all expenses are deduced

Gross profit covers overheads and dividends

Question 17

A fashion business would be expected to deliver?

Answer 17

Manufacturer to specification - good agreed cost
Delivery on time - in line with cash flow
Maximum sales achieved - unit and value
Maximum profitability- limited markdown

Question 18

Roles within product management

Answer 18

Product supply - range and design creation
Indirect product supply - witching finance
Facilitate- marketing

Question 19

What is the value chain?

Answer 19

A key concept that identifies roles and activities that supplies the product to the market and utilising them delivers margin benefit to the business

Question 20

Inbound logistics?

Answer 20

Storing and distributing raw materials for production use

Question 21

Operation?

Answer 21

Job batch and flow manufacturing

Question 22

Outbound logistics

Answer 22

The combination of supply and distribution

Question 23

Marketing

Answer 23

Letting customers know

Question 24

Service

Answer 24

After sales service to the consumer

Question 25

Infrastructure?

Answer 25

Does the whole chain fit to purpose and any improvements needed

Question 26

HR?

Answer 26

Make sure staff are treated well and well trained

Question 27

Technology development

Answer 27

Making sure all technology is up to date and working

Question 28

Suppliers logistics

Answer 28

The process of planing delivery and shipping and share house allocation

Question 29

Marketing and sales?

Answer 29

To enhance the retail and purchase of fashion

Question 30

Value chain advantages

Answer 30

Puts product centre of business Identifies the different activities that together supply the product Looks at indirect and direct on product supply Supports the roles that have products supply at their hearts

Question 31

Value chain limitations

Answer 31

It's a old model Only created with manufacturing in mind It's generic in philosophy

Question 32

Can the value chain principals be applied to a fashion business of so how?

Answer 32

Yes by matching generic roles to the value chain. If possible identify primary and secondary activities of a fashion business

Question 33

What is centralised buying?

Answer 33

Making a common purchase from a purchasing organisation. Aiding in finding the best deals with local venders in near areas

Question 34

Advantages of centralised buying

Answer 34

``` Less expensive Better quality Better for markdowns Better control on styles and trends Safety in numbers ```

Question 35

The disadvantages of centralised buying?

Answer 35

Difficulty with local shipment Requires a lot of cooperation Hard to maintain enthusiastic selling

Question 36

What is a buyer

Answer 36

A buyer is someone who decides what styles to be bought and negotiates production with suppliers