Merchandising

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BA (HONS) BUYING AND MERCHANDISING RETAIL CONCEPT DEVELOPMENT AND PRODUCT MANAGEMENT Unit Code FU001850 Credit Rating 40 Notional Learning Hours 400 hours Stage 2 Level 5 Unit Leader Lois Baile ([email protected]) Teaching Team Stephanie Liberman & Katie De Ley Timetable Accessible via UAL Timetables Academic Year 2018/19 INTRODUCTION In this unit you will be given the opportunity to explore emerging fashion business models, market opportunities and product management solutions in the context of a live industry brief. You will showcase your creative, commercial and decision-making skills by developing a business concept that satisfies an emerging opportunity within the wider context of the global fashion industry. This unit builds upon your understanding of sustainable product development, merchandising, business planning principles and research methodologies you have developed over the duration of your course. By refining your business presentation and communication skills you will learn to articulate a convincing and engaging proposal that is well structured and commercially viable. ASSESSMENT AND PROJECT BRIEF Report The assessment is a group assignment to produce a business development report of 4,000 words with supporting imagery, data presentation and team work agreement. The aim of this project is to provide a robust business case to PUMA for a range expansion targeting an age group of 14 and under and within one of their Retail Tier One Accounts: JD Sports / Footlocker / Office / Sport Direct. Complete collections of clothing, footwear and accessories should be considered in order to drive incremental revenue in a challenging and competitive market. The report should include comprehensive research of the potential market, target consumer and competitor activity across all distribution channels to define a competitive advantage:

• Market Analysis: Marketing Concepts and Campaigns, Product Offer, Range Influences, Customer Experience, In Store Presentation, Digital Activity, Online Presence, The ‘Wow’ Factor

• The purchasing behaviours for the age group should be examined using both qualitative and quantitative research methods to validate your concluding proposal.

• Trends and influences will play a major role, including the impact of adult sports offers.

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• Competitor Activity and Competitor Strategy must be considered to engage and retain consumers including the identification and analysis of ‘success factors’ employed by fast fashion brands as they move into the sportswear market.

Factors to secure Brand Loyalty are a requirement, together with an approach to sustainable product programs. Pricing, range content and timing are critical in your observations and recommendations. Be targeted in your approach remembering what will truly ‘make a difference’ and stand out from the crowd. The plan, following the layout below, will show a thorough rationale to support your idea by researching the size and potential of the target market, the product ranges and pricing structure to ensure your concept will be a success. Your plan should show commerciality and entrepreneurship and above all be believable, realistic and based on factual evidence. Presentation Following the report submission, you will be invited to attend a formal meeting with the PUMA UK where you may present your strategy, product offer and marketing concept. You will need to prove your research and proposals for a compelling PUMA kids product offer. As 2020 marketing budgets are not yet finalized this gives you the unique opportunity to make your proposal a reality. Submission Requirements Element 1: A group research report with supporting visual material (maximum 4,000 words) The Business Plan report must include: An Executive Summary

• An overview of the business concept and rationale (excluded from the word count) Market Research

• PESTEL analysis • Evidence of background research from a range of sources, such as business pages and

company reports, use of EDITED, WGSN and appropriate sources to support your ideas. • Consumer insight research, primary and secondary research highlighting emerging micro trends

and innovation to support your concept. • Consumer profile and customer segmentation concepts. • PPM and market competitors’ macro and micro trends. • Analysis from competitor store reports and inspirational shopping research. • SWOT analysis

The Concept

• Use of appropriate strategic tools (e.g. Ansoff’s Matrix), as an explanation of your USP and product development.

• In-store visual merchandising plan and ideas for an experiential store to support the success of your concept. The floor plan of the space should include areas for the stock, display proposals and visual marketing ideas.

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The Product, you will:

• show evidence of use of ethical and sustainable suppliers to source your products, where possible.

• decide the breadth and depth of product ranges to support your market research findings and construct choice for the consumer aligned to relevant trend influences

• provide a category structure to support your range build • decide on the number of stores and the space constraints within the stores to effectively

showcase your product offer • decide on the timing for the launch of your range which will support an optimum trading initiative

and suggest relevant promotional events on a marketing calendar • construct a robust sales plan to trade the ranges and demonstrate through submission of a

planning WSSI indicating Sales Phasing, Terminal Stock Targets, Markdown Spends and Stock Flow

• submit Customer Profile Boards, Trend Boards, Concept Boards, Product Ranges, in Store Visual Presentation

Merchandising Finance Pack will include:

• Top Line Sales Proposal • Category Structure to show % Contributions to the bottom line • Weekly Sales Forecast in a WSSI Format • Monthly Sales Plan / Promotional Calendar • Top Line Option Plan • Option Framework by Category • Line Details

Please note the Finance Pack should also be submitted as separate Excel documents, to Part 2 of the Turnitin submission. Summary of recommendations (guide 500 words) Summarise the key recommendations for your project and ensure the benefits of implementing the project are clear References List of academic sources using Cite Them Right conventions Appendix A copy of the Teamwork Agreement must be included as an appendix to your report IP consent form Supporting material as appropriate The outcome should be an original, professionally presented project which documents the project process and offers innovative solutions for the PUMA UK youth consumer. NOTE 1: There is a Teamwork Learning Agreement that operates with this unit. You will be briefed on this in class during your first session. All students are required to sign this agreement and submit a copy to Moodle one week following the briefing. Please refer to the Teamwork document on Moodle for all terms and conditions. A copy of the Teamwork Agreement must be included as an appendix to your report. NOTE 2: There is an IP consent form that all students MUST sign at the first Puma briefing on Monday 28th January to establish rights to the project content and permission to use marketing collateral on social media. A copy of the IP consent form must be included as an appendix to your report.

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Evidence for Assessment will include: A Report to include the following deliverables relevant to the Account Tier

• Target Consumer • Creative Direction • Product Range • Marketing Concept Online and Offline • Timelines

A Financial Business Plan to include

• A Summary to show the overall Retail Value of the Proposed Buy with Key KPI’s (Intake Margin %, Sell Through %, Mark Down %, Terminal Stock %)

• A Category Structure and Option count and Buying Quantities of the Proposed Buy • A WSSI to demonstrate Sales Opportunity, Sales Phasing, Trading Calendar and Stock Flow for

the Proposed Buy

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SCHEME OF WORK

Week Session Topic and Learning Activity Self-Directed Study Activities

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9 BRIEFING Puma Brand and Project Briefing LCF Monday 28th January 2:30pm – 4:30pm

Start secondary research Research Puma and direct competitors

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Lecture 1 - Understanding the UHB and project Brief Seminar – Unpack the Brief / Team Organisation Belbins Lecture 2 – Trends and Innovations and influences from the Macro Environment Seminar – Data Gathering, Assessing the Market Opportunity, Research Proposals (potential focus groups in week 4/5) Marketing Seminar – Recap of Principles 7Ps and 4Cs Marketing Tutorials – Understanding the Puma Tiering and Competitor analysis Merchandising Seminar - Financial principles, recap: range framework, category structure, product phasing, trading opportunities, WSSI

Creation of teams Create a critical path (Gantt Chart) according to key dates Comp Shop in groups to understand market environment/target consumer/range differentiation Generate SWOT for Puma Prepare 7 P’s and 4Cs Read Posner (2015) Chapter 2 Identify KPIs, Clark (2015) Chapters 6 and 7 Generate Category framework, Sales Phasing and WSSI format

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Lecture 3 – Buying the Range, Product Strategy, Complexities of Childrenswear Seminar – Scope out range content Lecture 4 - Innovation in experiential retailing, offline and online Seminar – what does good look like? Competitor SWOT and Identifying new opportunities to WOW the consumer Product Seminar – Developing Range Content: Pricing Architecture, Age Breaks, Gender, Sizing, End Use, Coordinated Offer Financial Merchandising Seminar – Aligning the numbers to product and Building the financial presentation pack

Brainstorming ideas around research findings Review WGSN trends & conduct inspirational shop Research Competitor Online sites to benchmark product offer, pricing, marketing and promotional concepts Read Posner (2015) Chapter 4 Understanding the Customer Read Varley (2014) Part II Read Clark (2015) Range Planning Chapter 9 Refer to case studies included within Varley et al. (2019) Research Financial Templates to demonstrate key metrics

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Lecture 5 – The Digital Experience and Online KPIs Seminar – Enhancing the Brand and Preparation of questions for Puma visit Lecture 6 – Sourcing Childrenswear Seminar – research compliance and ethical trading, the impact on cost base THURSDAY 28th FEBRUARY – Visit PUMA with project progress and content for Q&A at PUMA HQ 10:00am – 1:00pm Marketing Seminar (March 1st) De Brief of visit – Issues and actions Question preparation for Focus Group

Read Clark (2015) E-Retailing Chapter 12 Research responsible sourcing using corporate websites and supply manuals ETI – Ethical Trading Initiative https://www.ethicaltrade.org ILO – International Labour Organisation https://www.ilo.org https://www.mckinsey.com – What’s next in apparel sourcing Read Hines (2013) Chapter 12

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Focus Group Date & Time TBC

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Lecture 7 – Range Evaluation of Product Seminar – re-evaluate range content Tutorials – opportunity for groups to review their work to date and suggest improvement Finance seminar – Finalise financials and Construct Presentation Pack

Refine range content Determine USP Satisfy consumer needs and wants Scope of Business Proposition Refer to The Princes Trust Business Plan Pack for guidelines https://www.princes-trust.org.uk

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Lecture 8 – Elevator Pitch (Liz Bunting tbc) Seminar – Group activity to work on presentation FORMATIVE ASSESSMENT Friday 15th March Marketing Seminar – Group Presentations (Dry Runs) with Peer feedback

The Elevator Pitch https://youtu.be/bZTWx2bftaw Practice your presentation to refine content and timing

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WEBL Work Experience between Saturday 9th March and Sunday 12th May Minimum of 20 days experience is required Latest date to start work experience is Monday 15th April

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2nd and Final Contact Session with PUMA at PUMA HQ WEDNESDAY 1st MAY – Visit PUMA with project progress and content for Q&A at PUMA HQ 3:00pm – 6:00pm

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FINAL PRESENTATIONS TO PUMA MANAGEMENT TEAM Final Report Submission Thursday 16th May

The scheme of work is intended only as an outline of topics to be covered and is not a definitive list of what will be included in individual sessions. From time to time alterations may be made to the scheme of work to take account of students’ progress and unforeseen events or opportunities. If so, you will be informed in advance where possible, but check Moodle daily.

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ASSESSMENT METHOD The unit is assessed holistically (100% of the unit).

• A group business development report with supporting visual material (maximum 4,000 words with supporting imagery, data spreadsheets and team work agreement).

Assessment will be against the specified marking criteria. LEARNING OUTCOMES (& MARKING CRITERIA FOR ASSESSMENT) Upon successful completion of this unit you will be able to demonstrate:

• The design and delivery of a clear research strategy to identify consumer and market opportunities underpinned with critical justification (research, analysis);

• An exploration and evaluation of supply chain and fashion product management solutions leading to viable and sustainable business recommendations (subject knowledge, analysis);

• Evaluation of consumer marketing techniques to communicate and position the proposition in the mind of the target customer (communication and presentation, experimentation);

• Competence with trading data analysis and financial forecasting to create a viable business proposition (subject knowledge, technical competence);

• Project management skills for the delivery of a business proposition in a professional report with supporting visual imagery. (collaborative and/or independent working, personal and professional development).

The assessment website provides an overview of all the key course regulations for your course. SCHEDULE OF KEY DATES PUMA Overview 28th January 2019 Briefing 11th February 2019 Formative assessment 1 15th March 2019 Formative assessment 2 1st May 2019 Summative assessment 16th May 2019 Accommodated assessment 16th May 2019 Publication of assessment feedback 27th June 2019 Publication of Exam Board results 11th July 2019 You must check your course Moodle site for the Exam Board results. FAIR ASSESSMENT The University has robust processes in place to make sure that assessment is fair for all students and you can find out more on the Fair Assessment webpage: Fair Assessment As part of its approach to fair assessment the University has an Anonymous Marking Policy which means that for some assignments, where this is appropriate, the marker will not know the name of the student whose work they are marking. This assessment will not be anonymously marked because it is a group assessment where the work of others contributes to the final mark and it is an observed assessment where you will present your work in person in front of the examiners. However internal moderation and all other elements of the assessment

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process will remain in place for this assignment to make sure the assessment is fair, accurate and consistent for all students. SUMMATIVE ASSESSMENT SUBMISSION DETAILS Date 16th May 2019 Time before 3:00pm Location Turnitin on course page of Moodle

Accommodated Assessment deadline if your ISA includes additional time / ISA includes additional time for written and practical assignments: Date 16th May 2019 Time before 3:00pm Location Turnitin on course page of Moodle Please note the following:

• Ensure your work clearly states a) your name and student ID number; b) your degree and year of study; c) the title of the unit and the name of the tutor;

• Do not hand your work in anywhere else. You should not hand in work prior to the hand in time unless your Course Leader has previously agreed this;

• You should submit your work personally, in order to be secure that it has been delivered on time and to the right location. Once you have submitted your work, you will not be able to access it again until after the assessment of your work has been completed;

• You must keep an electronic copy of all written and digital work; • Ensure you obtain a receipt upon submission (email or hard copy) and that you keep this receipt.

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RESEARCH Refer to your Lectures, Unit content and Presentations to date, all provide appropriate material suitable for this unit. READING AND RESOURCE LIST Essential Reading: Clark, J. (2015) Fashion Merchandising Principles & Practice. London: Palgrave Posner, H. (2015) Marketing Fashion; Strategy, Branding and Promotion 2nd Ed. Laurence King Publishing Varley, R, Roncha, A, Radclyffe-Thomas, N, Gee, L, (2019) Fashion Management: A strategic approach. Macmillan: Red Globe Press Additional resources: Cox, C. and Britain, P. (2000) Retail Management. 4th ed. Dorset: Prentice Hall. Elliott, F. and Rider, J. (2007) Retail Buying Techniques. 2nd ed. Cirencester: Management Books. Grose, V. (2012) Concept to Consumer. Lausanne: AVA. Hines, T. (2013) Supply Chain Strategies: demand driven and customer focused. 2nd Ed. Routledge. Jackson, T. and Shaw, D. (2006) The Fashion Handbook. Basingstoke: Palgrave. Maynard, J. (2006) Fashion Buying and Merchandising: the principles. Thorpe-le-soken: Jonjaqsaw. Neilson, A.C. (2006) Consumer-Centric Category Management: how to increase profits by managing categories based on customer needs New Jersey: John Wilson & Sons. Nesbitt, C. (2016) The complete journal of Fashion Retail Buying and Merchandising. CreateSpace Independent Publishing Varley, R. (2014) Retail Product Management: buying and merchandising. 3rd ed. London: Routledge. * Varley, R. and Rafiq, M. (2014) Principles of Retailing. 2nd ed. Basingstoke: Palgrave. *Also available as an e-book Further Reading and Resources: Drapers Edited Via library e resources. FAME WARC WGSN

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IMPORTANT INFORMATION LCF STUDY SUPPORT The study support programme at LCF is designed to meet the needs of all students from all levels and disciplines. Our emphasis is on enhancement of learning to assist students in achieving their full potential, to help improve their self-esteem and employability. Developing skills is a gradual process and does not happen overnight. It is very much an individual process that you build on, as you progress through your course. If you are anxious about starting your first assignment or just want a few tips with reading and notetaking, or with getting started with something, then we can help. In addition to this, our dedicated team can also support you with presentations, time management, referencing, plagiarism and much more. For more information on our drop-ins and how to make an appointment, please go to: UAL Academic Support Online Email: [email protected] Telephone: 020 7514 7586 Room number: JPS 218 (second floor) REFERENCING UAL Academic Affairs advises that the Harvard Referencing Style on the Cite Them Right Online website is used for all taught courses. Cite Them Right Online is a referencing resource. It will help you to cite and reference just about any source and to avoid plagiarism. The site also allows you to create your own references by copying the layout illustrated; you can then email the example to yourself or cut and paste it into a document. On campus go to Cite Them Right and you will be automatically logged on. To login off campus go to Cite Them Right (off Campus) you will be asked to go via your home institution and then to log in with your University login and password. ACKNOWLEDGEMENTS You must acknowledge any support from within UAL, for example, Language Support; UAL Dyslexia / Disability Service; LCF Study Support and LCF Writer in Residence, during your assignment. You must also acknowledge any external (to the University) support, such as tutoring or proof-reading, that you have received during the research and writing of your assignment. Please note, unacknowledged support, such as proof reading, constitutes academic misconduct. e.g. In the writing / compiling of this essay / report / assignment / dissertation / portfolio I have received assistance from… You should include the following statement: “I, your name, certify that this is an original piece of work. I have acknowledged all sources and citations. No section of this essay has been plagiarised.” N.B. Plagiarism forms part of Academic Misconduct.

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What is Academic Misconduct? Academic Misconduct refers to any form of academic cheating. Please note that if you choose to use any proof reading services outside the UAL Language Support, this may be subject to Academic Misconduct. You are therefore advised to make use of services offered by the UAL only. UAL guidance on Academic Misconduct can be found on UAL Website. Self-plagiarism / submitting the same piece of work for more than one assignment It is important to understand that “Deliberately submitting the same piece of work for assessment for more than one assignment” is classed as Academic Misconduct at UAL as you have already received academic credit for the work. Therefore, you must not resubmit work, in whole or in part, for another unit if the work has already been assessed either at UAL, or elsewhere, for academic credit or an award. What happens if I fail a piece of work or miss the deadline? The UAL assessment website provides useful information on:

• What happens if you fail a piece of work or miss a deadline; • What to do if you are ill or have other extenuating circumstances; • How to avoid plagiarism in your work; • What to do if you want to appeal an exam board decision

Retrieval If you fail a unit, or fail to submit work by the agreed deadline, the Exam Board will normally allow you to ‘retrieve’ that failure through a ‘referral’ or ‘deferral’ opportunity.

• Referral is where you will be asked to resubmit work for assessment. This will be capped by the examination board at D- for the unit

• Deferral is when there are extenuating circumstances that have been accepted by the exam board. Any deferral work submitted will be uncapped, and you can receive the full range of marks

Further information on Fail and Retrieval can be found in the UAL Student Guide to Failure and Retrieval. You must check your course Moodle site for the Exam Board decision and for details of any retrieval work set and deadline. You could be set a new question or asked to redo the original question.

New Question: you must check your course Moodle site for details of the new piece of work you have been set, the deadline and the member of staff you are required to contact for a referral tutorial.

Original Question: If you are asked to resubmit the original question, please note the original question is found in this unit handbook on page 1.

Please note that it is your responsibility to contact your Referral Officer / Course Leader to take up the offer of any referral / deferral tutorial. You should contact your Course Leader if you are unsure of what you are required to do.