Product Development Forecasting and Marketing - Essay Example

Product Development forecasting and marketing Name Course Name and Code Institution Name Instructor’s Name Date Table of Contents Introduction 3 Product innovation, diffusion and adoption 4 Product development 5 The Product and its target market 5 Product features, colours, and its marketing approaches 6 Marketing approach 6 Diffusion process 9 Gaps to be, filled by the seamless panties, its competition and barriers to the success of the product 11 Conclusion 11 References 13 Introduction Fashion in the modern world is a multi-billion industry, which has managed to remain relevant and profitable over the centuries. From the streets of Paris and London, fashion shows, catwalks and Fashion Week in New York to fashion progression in Asian nations, tremendous increase of interest in fashion in developing nations and an uprising in fashion icons, and designers only gives a glimpse to the great impact fashion has. It influences largely on the social- cultural, geopolitical and economical dynamics in the new world order. Fashion changes with seasons, time, place, culture and in attitudes (Annacchino, 2003). What may be fashionable today may not be tomorrow but, may return twenty or thirty years later. Therefore, fashion forecasting and marketing is critical in developing a new fashion product. New product development forecasting and marketing is an essential process in modern day fashion businesses. Modern fashion businesses are finding it fundamental to invest in encouraging development, implementation and monitoring innovations in product and service delivery (Walker, 2003). This is because of upheaval in the market environment and the increasing need to not only increase their market shares and profits, but to minimize costs and effectively and efficiently satisfy the needs, changing trends, attitudes, behaviours and expectations of their target customers (Ryans, 2000). These customers periodically have shifts in what they need, their tastes and preferences. Fashion forecasting of new product development or innovation therefore, offers fashion businesses this opportunity to overcome barriers arising from market competition coupled with changing political, social, economical, cultural, financial, environmental, and technological dynamics (Rogers, 1983). Currently, product innovation, forecasting and marketing has been, eased by advancement in technological structures, tools and solutions (Weitz and Wensley, 2002). This report candidly highlights development of a new fashion product in the market based on innovation, adoption and diffusion theories as suggested by Rogers. In addition, the report will analyse the market dynamics or forces, categories of adopters, barriers and strengths that will influence the target customers to utilize the innovated fashion product. Product innovation, diffusion and adoption Product diffusion in the market refers to the progression of communication infrastructures where a new initiative in term of product and service are readily, embraced by the target market. The rate of diffusion on the other hand, refers to the pace at which the generated new initiative moves from one product/ service user to the other (Rogers, 1983). Product adoption analyses the mental processes that facilitate a customer to behave or make decisions in a certain way (Anselmo, 2010). The product diffusion, adoption and innovation process depicts in form of S-curves. The S curve illustrates the initial slow pace to embrace change, and then a swift rise in product acceptance and finally the curve shifts to indicate a slow change that shows the product has reached optimum point and therefore needs induction of innovation (Ryans, 2000). This process is important for fashion management in monitoring progress and evaluating where fashion trends ad products are in their life cycle and whether they need eradication, modification or continue to be, created (Walker, 2003). Moreover, it ensures on time changes and processes are, implemented to capture available opportunities, counter competition, prepare for risks and work on the products’ weak points. Product development The Product and its target market The new product highlighted in this report is seamless panties. The seamless panties are, meant to satisfy the needs and expectations of modern day high -end woman (customer) in the banana republic (Kahn, 2006). The product moves away from imitating what other designers have produced, to creating something different. That is, seamless panties that not only offer basic satisfaction of covering the nakedness, but also goes a mile a head to make the life of the user comfortable, luxurious and relaxing beyond what a normal panty offers (Thomas, 1993). The seamless panties are unique owing to the fabric, designing and production process. To the fashion aware and trendy customer, the seamless panties will eliminate the centuries old dilemma of showing of panty lines in worn attire (McDonald, 2007). Panty lines showing in attire are a fashion no- no and no fashionista or fashion conscious woman should be, caught spotting them. In developing these new seamless panties, the process entails formulating an idea based on the gap and the need in the market, designing the product, investing in product detail engineering, conducting a market/ customer research to analyse how the market reacts to the product and finally conducting a market monitoring or analysis as presented by Robertson model to innovation. In addition, becoming aware of the need in investing in fashion forecasting and marketing is fundamental in producing classic fashion products. Classic trends are those fashion products that are able to stand the test of time, and more often than not, combine style, acceptability and do not go out of season (Griffin & Somermeyer, 2007). Among such fashion products are necessary and as such is the short black dress, a scarf, a trench coat among others. As a designer, one should be cautious when doing fashion forecasting to avoid creating fashion fads. Product features, colours, and its marketing approaches Fashion forecasting of the new seamless panties entails taking into consideration factors that influence changes and shifts in fashion trends. Among such factors are social-cultural and ecological accountability by people in the fashion industry, individualism and making custom-made fashion products, what celebrity and fashion icons are wearing, quality, fashion luxury and freedom to design anything, technology, mass media among others. The seamless panties will be, designed, made in such a way that, the seams are sewn, into, and integrated within the fabric, thereby; the panties will have no hems or bindings. This is because the hemming and the bindings result to panty lines, which show especially when worn under light attires. The seamless panties will come in organic floral bright colours and from vegetable dyes. The seamless panties have an added advantage to the high end female that is conservative and may be reserved in wearing a thong or a g-string. The seamless panties unlike the thongs and the g-strings are comfortable, non-invasive and the user does not have to worry during the menstrual days, as the panties can hold the sanitary towels comfortably. In addition, the seamless panties will be, made from moisture absorbing material, which will ensure the user feels and remains dry, comfortable, and airy. This eliminates the chance to develop itchiness and harmful bacteria. Marketing approach To ensure the product initiates and sustains a long duration of peak stage, and is easily accepted by the target market, the seamless panties would constantly be, upgraded to satisfy the changing customer needs, tastes and preferences. Since the seamless panties targets the high end female user, this will minimize over saturation of the product in the market, which results in low priced products, and lose of uniqueness of the commodity on sale. Since most fashion trends come from entertainment and political arenas such as political figures, media personalities, moviemakers, celebrities and musicians, the seamless panties will be priory advertised and piloted by and to these personalities respectively, to entice the attention and interest of the targeted market, with the intention of setting a trend (Brannon, 2000). There are three concepts of fashion movement/ trends namely the trickle down theory, trickle across theory and the trickle up theory (Rogers, 1983). In the trickle down approach, this will be, adopted for the seamless panties, the fashion trend moves from product and service users who have high socio-economic status, and filter down to the common person (Kahn, 2006). The trickle up approach moreover, the fashion trends moves from product and service user on low social economic abilities, to those in upper social classes. An illustration of this theory is the baggy pants. Finally yet importantly, is the trickle across theory in which the fashion trend starts among different people within different social-economical status almost simultaneously, which is, necessitated by having opinion leaders across all the status groupings (Rogers, 2003). When making the critical decision of the product adoption process, it will consists of making the market aware of the new product through advertising, conducting tests market, sales and promotion, intensive trade fair and exhibitions and monitoring the competition (Bass, 1986). During the brand evaluation, the market will be, monitored to analyse what they consider the strengths, the weaknesses of the seamless panties. Thereby, make decisions based on results received. By so doing, the product accumulates more profits, customer trust and loyalty is established, and the panties develop a quality brand image and brand name (Singhal & Dearing, 2006). The lifecycle of the product is, expected to convince and diffuse swiftly within the categories of adopters instantaneously as proposed by Rogers (1983) model of diffusion. The types of adopters of new products are among others, the innovators. They consists of the initial 2.5% of product users who more often than not, are learned, are doing well financially and are ready to take risks head on. There is the early adopter who consists of 13.5% of social systems-opinion leaders who are well informed and are, updated more often, than the usual product user (Anselmo, 2010). There is also the early majority, who consists of 34% of stable consumers in the middle class social statuses who are less venturous, and are more deliberate in making purchases. There are the late majority, who consists of 34% of elderly, conventional, traditional consumers who are cynical of changes and new inventions and innovations (Rogers, 2003). For laggards as type of adopters, they are 16% and are unwilling to embrace new things, are reserved, are weary to move from their comfort zones, and are more likely to be within the low –end social classes. The non-adopters are consumers who ultimately reject change (Ryans, 2000). To ensure the target customer is satisfied with the product purchased, constant analysis of customer reviews, inquiries and opinions is essential (Green, 2002). This allows for knowing which future modifications should be, made to the seamless panties, which should be custom made to satisfy the needs and expectations of the customer. This can be, achieved by implementing a reliable, efficient customer care service (Green, 2002). In addition, the product user will have a chance to present their grievances and return damaged products. This allows the consumers to have value for money, which not only improves the products’ profit margins, but through good reviews and recommendations, increase and expand the products’ market shares (Griffin and Somermeyer, 2007). Diffusion process For the seamless panties, the diffusion rate is likely to be determined by the added advantage the product has over other available panties, the reduced risks in buying the panties (getting value for money), and the product being consumer friendly (Anselmo, 2010). Furthermore, the propinquity of the gains the user will have, and the price of purchase. All this will make the target market accept the product. To accelerate the diffusion and the adoption process and rates, it is imperative to ensure consistency in time, communication and resource allocation, for the process to succeed (Vinken, 2005). Moreover, integration into the social systems is, needed as suggested by Rogers’s model of diffusion. It will entail being flexible to emerging technology, targeting the right market and ensuring available gaps in the market are filled (Singhal & Dearing, 2006). Once the seamless panties are readily utilized within the market environments, it is fundamental to monitor their usage, monitor competition, analyse possible threats to the product, improve on the panty’s strength, work on their weakness, and devise ways in which the product can be, improved further (Singhal & Dearing, 2006). Moreover, it involves performing consumer feedback analysis. All this occur post purchase. The process of new product development takes place in eight –phases as described in Robertson innovation model (Moore, 2005). In designing and producing the new seamless panties, the process begins with coming up with an idea that address the need of existing and potential market (Anselmo, 2010). This can be, done through conducting a SWOT and PEST analysis, Fish borne and brainstorming processes of existing fashion industry. It moves to screening the generated ideas in order to retain economically, technically, and resource feasible and viable ideas/ concepts/ initiatives (Brannon, 2000). From the screening phase, the process moves to developing the idea and testing it by establishing the marketing details by identifying market of the panties, their unique features, strengths of the seamless panties and the means of production and logistics (Green, 2002). The process moves to product business analysis that estimates expected profits and the points of breaking even. Market testing ensues which entails product sampling in order to make necessarily changes and determine what the market thinks of the seamless panties (Moore, 2005). Production process begins which is, coupled with resource allocation, planning, reviewing and monitoring. The new seamless panties will then be launched in the market, advertising and promotions is, done and supply chains are effectively, managed. Then, quality analysis, setting fixed and variable pricing and forecasting of revenues, gains and capacity of production is, done (Brannon, 2000). When initiating the fashion forecasting and marketing for the seamless panties, it involves examining past panty purchasing patterns, current market forces and projecting the findings to the future. It also involves keeping in mind activities, events in which panties are, worn, and understanding the mindset, attitude, tastes and preference of the targeted market. The sources to find al this include fashion retailers, stores, magazines, fashion books and logs and in the internet. In collaboration with textile and fibre makers, will ensure advance preparation to ensure before the season peaks, there is sufficient supply. Forecasting is essential in ensuring the production capacity is right to avoid selling at throwaway prices. Gaps to be, filled by the seamless panties, its competition and barriers to the success of the product The new seamless panties are, anticipated to fill the gap in the market of having under garments that do not show lines when worn. The product has an added advantage of conserving the environment (Holloway, 2004). The seamless panties are bound to leave a mark in the fashion world, as an ordinary, school going female can wear them, if they can afford to purchase the panties. Lack of acceptance by the targeted market will be a great impediment to the new product (Moore, 2005). The use of environmentally friendly raw materials is hard to access, which may influence the final cost of the product. Poor economic times may affect the product negatively since, it is targeted for high end users (Annacchino, 2003). To encourage diffusion therefore, is critical to ensure the seamless panties have relative advantage over other available panties, are easy to use, individuals within various social settings can identify with the panties, the cost of market testing the seamless panties is low and the product is divisible (Vinken, 2005). A lot of time will be, allocated to the knowledge, persuasion and decision stages as per Rogers’s innovation and diffusion models (Holloway, 2004). Market testing will be within a short duration of time to prevent competitors from imitating and launching massive production before, the new seamless panties gets into the market. Monitoring and conducting consumer feedback analysis will be a continuous process (Moore, 2005). Conclusion The use of Roger and Robertson model to diffusion, adoption and innovation is integral when developing new products. The two approaches have been, criticized due to shifts in categories of adopters for different new products. For example, a present early adopter may in other times, be an innovator. Predictions do not always occur as indicated in print owing to shifts in the market forces. However, the two models are beneficial in illustrating the significance of target market differentiation and the importance of first influencing innovators and early adopters, to making the new product a success. Besides, the percentage in the adopters can be, used in approximation of target groups to be, used when laying down communication infrastructures, illustrating, and monitoring the adoption process in the life cycle of the product by learning the consumer’s social status, communication traits, their tastes, values, behaviour and preferences. In designing and production of new seamless panties, the report has integrated the diffusion process, the trickle down approach, its unique features, its marketing approach and which gaps the panties seeks to fill. Moreover, the report has highlighted the categories of adopters, and analysed the competition to the product, barriers to success of the product, and how the challenges can be resolved. Fashion and style as it stands, has moved from the basic of covering the body, to the market purchasing a brand, a fashion trend, or even a label. The interest in fashion and fashion development has seen shows like Fashionsta, Project Runway, and fashion galas such as Fashion Week excel. References Annacchino, M. 2003. New product development: from initial idea to product management. London: Butterworth-Heinemann. Anselmo, D. 2010. Marketing Demystified. London: McGraw-Hill Professional. Bass, F. M. 1986. "The adoption of a marketing model: Comments and observations". In V. Mahajan & Y. Wind (Eds.), Innovation Diffusion Models of New Product Acceptance. Cambridge, Mass.: Ballinger. Brannon, E. L. 2000. Fashion Forecasting: Research, Analysis and Presentation. London: Fairchild Publications. Green, L. 2002. Communication, technology and society. London: SAGE. Griffin, A., and Somermeyer, S. 2007. The PDMA toolbook 3 for new product development. Chicago: John Wiley and Sons. Holloway, C. 2004. Marketing for tourism, 4th Ed. California: Prentice Hall/Financial Times. Kahn, K. 2006. New Product Forecasting: An Applied Approach. London: M.E. Sharpe. McDonald, M. 2007. Marketing plans: how to prepare them, how to use them, 6th Ed. London: Butterworth-Heinemann. Moore, G. 2005. Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution. New York: Penguin. Rogers, E. M. 1983. Diffusion of innovations, 3rd Ed. New York: Free Press. Rogers, E. M. 2003. Diffusion of Innovations, 5th Ed. New York: Free Press. Ryans, A.B. 2000. Winning market leadership: strategic marketing planning for technology-driven businesses. New Jersey: John Wiley and Sons. Thomas, R. 1993. New product development: managing and forecasting for strategic success. 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