Operations Management - Marks and Spencer Fashion Brands - Essay Example

? Operations Management 30th April, The product design process for clothing retailers determines the cost, quality, look and availability of the product. Explain how the design process might result in reduced product cost for some products and a faster time to market for products where fashion needs to change frequently. Relate your answer to Marks and Spencer fashion brands. Introduction Product design is one of the most important processes in the apparel industry because it determines various characteristics of the product such as the product cost, quality, the looks as well as the availability of the product in the market. For example the case study for Mark and Spencer that is involved in providing high quality fashionable products, product design is very essential so as to produce products that are highly competitive in the market (Vilcox & Thomas 2007). The company is known for innovation of its fabrics from its own textile technologies laboratories that is part of the product design. The process of product design however requires the input of several resources so as to come up with a presentable product in the market. The most essential requirement for the design of products in the apparel industry the raw material used to design the product. For the final product to be highly competitive in the market, the used raw materials should be of high quality although relatively low priced (Paulin & Hillery 2009). The raw material should be provided as low prices so as to regulate the product cost in the market. To enhance the constant provision of the raw materials, Mark and Spencer invested in a close relationship with its materials suppliers. Due to these factors the company is known for the use of easy synthetic fibre to design its clothing. The company also prides in the application of high health and hygiene standards in the processing of their food products. The company has invented the design of new styles by providing new brands over shorter periods (Malcom 2007). Despite operating in a highly competitive market, Mark and Spencer has embraced innovation using the latest technology to suit the changing trends, the fashion and design sector (Jones 2006). The values of quality and service which were used by Mark and Spencer however led to higher prices of the products. Designing of products is essential because in determine different characteristics of the product as well as how well the product functions (Jones 2006). The essential activities involved in product design include research and development, marketing and engineering. Some of the factors of the product that are determined by the design process include the products cost and quality (Beauchamp, Norman & Arnold 2008). The main purpose of design is to develop a product or service that appeals to the consumer at convincing prices and at the same time. For the product to achieve this it has to be designed using high quality but low cost raw materials. The technology applied in the development of the product also determines the price of the product. Companies that use state of art technology to design and process their products are likely to incur a cheaper cost of production as compared to their counterparts using traditional methods of production. The final product from the designing process should be more competent than other products in the same market in terms price, quality, appearance and performance (Beauchamp, Norman & Arnold 2008). One of the main reasons the products provided by Mark and Spencer were relatively expensive was the cost of raw materials from their suppliers. Some of the competitors in the same industry that had embraced the use of low cost but high quality raw materials became more competent by providing their products at cheaper prices. Despite having a close relationship with its suppliers, Mark and Spencer suffered the high cost of the raw materials supplied therefore resulting to higher prices. The designing process of the product also determines the product availability in the market on time. To ensure that the product is availed to the consumer in time, equipment used for production should be readily available. The availability of the products is also dependent on the methods or technology used to design and develop the product (Vilcox & Thomas 2007). Additionally, the technology used to design the product determines the variety of products produced which is an essential factor in the apparel industry (Paulin & Hillery 2009). Product design is an essential factor for survival in a highly competitive industry such as the fashion and design industry. As a result of the competition in the market Mark and Spencer held negotiations with its suppliers to cut down the cost of raw materials so as to reduce the cost of production and in return reduce the products prices in the market (Dickerson 2007). The high prices have also been as a result of economic crisis. Additionally, due to these effects and high competition, Mark and Spencer have closed down most of their stores in the UK. Identify and explain the different customer segments and needs and the order winners and qualifiers for these three different clothing ranges at M&S (Fill in the following table as part of your answer). Mark and Spencer’s customer segments are the needs of the customers as they buy the product. According to McClelland’s needs theory, needs are classified based on achievement affiliation and power. The customers have different views, cultures and beliefs therefore they are likely to have different opinions on what to buy, when to buy it and where to buy it (Dickson, Jean & Loker 2009). An individual’s motivation to make certain decisions is determine by achievement, affiliation and power. One of the main factors affecting the customer’s motivation to buy a product is the demographic and psychographic factor segment. These are the characteristics of the people which identify factor such as gender, age, race and ethnicity (Welters & Lillethun 2011). These characteristic of the main population play a major role in determining the needs of the customers. Additionally psychographic is an approach used to determine the people’s opinions values and personal characteristics. Different customers have different values and personalities which determine their opinions on what when and where to buy the product. Another segment that helps identify the customers is the geographic segment. The geographic segment allows the company to classify the customer base in terms of climatic conditions, language and the area among other geographic factors. In most regions Mark and Spencer classifies the customer base according to climatic conditions where the climatic conditions in a year are categorized into four seasons; winter summer, autumn and spring. During the winter seasons the customers will buy warm clothing whole during the summer seasons, the customers will go for thin casual clothing (Welters & Lillethun 2011). The two peak seasons for sale of clothing by mark and Spencer are spring and autumn because most resident buy clothes during these two seasons. Another important factor that determines the customer base is the behavior segmentation. The behavior in terms of the customer’s attitudes, knowledge and loyalty to certain brands affects their decisions to on whether to buy certain brands of the product or not. Additionally, the knowledge of the customer on how to use certain products determines whether they buy the product or not. The buyer’s behavior cycle is divided into three phases; the initial, intermediate phase and the final phase (Boatright 2000). The initial phase is where the customer neither has information about a product nor how to use the product. The intermediate phase is where the customer has the experience of the product and the individual decides on whether to buy the product based on their own past experiences with the product. The final phase is where the customer becomes loyal to the same product unless they decide to change the brand due to poor quality or realization of a better brand (Vilcox & Thomas 2007). The order winners are the characteristics that cause the customers to choose the products from mark and Spencer over other companies. They also determine the benefits of buying goods from Mark and Spencer. Some of the benefits that can be identified from the order winners include affordable prices, quality, fashionable designs and style, good customer services and reliability among other advantages (Malcom 2007). CLASSIC RANGES AUTOGRAPH RANGE PER UNA RANGE Customer segment Ages 35 to 55 Ages 25 to 35 Interested in latest designs Customer needs classic designs Latest fashion trends Latest fashion trends Product range Classic with style Designer collections Latest fashion trends Design changes Standard design changes Unique designs Fast design changes Price Reasonable prices High prices Affordable prices Quality High quality fabric High quality Highest quality Sales volumes SKU Large sales volumes Small sales volumes Limited sales volumes Order winners Product reliability Quality product designs Product appearance Order qualifiers Affordable prices Prices Price and quality Operations priorities Affordable prices Quality products Speed and flexibility 3 Apply a polar diagram to analyze and compare the different operations performance objectives for these three different clothing ranges at M&S. How might the performance objectives affect the choice of manufacturing process and the location of the garment supplier? Mark and Spencer has three different clothing ranges which are the perfect and classic range, the autograph range, and the per una range. The customers of perfect and classic range are mainly man and women aged between 35 and 55 years. The customers in this range of products are interested in the latest fashion designs and looking good. This range is characterized by classic but mature styles, reasonable prices, standard design changes, high quality fabrics and large sales volumes. The autograph range is mainly comprised of customers between the ages of 25 and 35. The customer base of this range is mainly interested in following the latest fashion trends. The products in this range are characterized by high quality, small sales volumes and high street prices. The per una range comprises of customers interested in latest fashion at affordable prices. These products are characterized by high quality, very small sales volumes and affordable market prices. The size of each section in the diagram represents the market share of the products. The general performance objectives that would have an effect on the manufacturing process for all the range of products include the product quality, manufacturing speed, reliability for constant delivery and the manufacturing costs (Dickson, Jean & Loker 2009). References Beauchamp, T, Norman, B & Arnold, G 2008, Ethical Theory and Business, Pearson, New Jersey. Welters, L & Lillethun, A 2011, The Fashion Reader, Berg, New Jersey. Malcom, B 2007, Fashion theory, Routledge, London. Jones, R 2006, The Apparel Industry, Wiley, New Jersey. Paulins, A & Hillery, L 2009, Ethics in the fashion industry, Fairchild Books, Washington. Dickson, A, Jean, M & Loker, S 2009, Social responsibility in the global apparel industry, Fairchild books, Washington. Dickerson, K 2007, Textiles and apparel in the international economy, Macmillan, London. Boatright, J 2000, Ethics and The Conduct of Business, Pearson, New Jersey. Vilcox, M & Thomas, M 2007, Contemporary Issues in Business Ethics, Nova Publishers, New York. Read More