Fashion Analytics Final

• Understand the main differences between pick and price insight vs rate and rank and ask and answer

• - In a rate and rank, the outputs are style score and sentiment, no pricing involved and it ranks creative concepts, messaging, mood boards. Helps you figure out trends and the sentiment. Does not tell you how successful an item will be

• - Pick and price gives you predictive pricing and allows you to build an assortment that is optimized, what products will be most successful on the floor

  • Gives you Value score, sentiment, model price, comments

  • Protects your margins and helps you know which items are winners and losers

• - Ask and answer is more of a survey where you can understand concepts

• What are reference items

Item you have previously sold that were best or worst sellers. Used to identify game respondents who
know the most about the products and target the consumer whose feedback you want

• What is the model price

a consensus on what people will believe the market is willing to pay
for an item. It incorporates weighted and filtered pricing responses along with
sentiment responses. In essence, it can be viewed as a predictor of the AUR over the
life of product

• What is sentiment

a direct representation of all consumer responses

• What is the ticket price

designated/assigned price of the garment

• What are attributes

details about the test items like the color, material, silhouette, etc

• Up to how many test items can you have

15 test items

• Understand what the value score means

multi-variate algorithm that is a composite of a number of factors
including price, sentiment, and the shape of the price response curve. It is similar to
your credit score

strongest measure of how an item is going to perform when it
hits the market.
• Total Value Scores range from 1 – 10, with 10 indicating the highest potential value, and 1 indicating the lowest potential value.

Understand how to interpret the results (Gives a chart to analyze)

The higher the Total Value score, the more likely an item is to perform well when it is brought to market.

• Why do new products fail

Changing consumer preferences, long product introduction cycles, inaccurate store testing results and over and under pricing

• What is the demand curve

illustrates the distribution of desirability for your item at various price points. The highest point tells you the price at which you are likely to sell the most units of the item. Different shapes indicate different sale and discount patterns

What is an example of a good objective

Determine which back pocket detail consumers like best for jeans: “Which pocket detail do consumers like best for
jeans?”

This objective is good because:
• It’s specific. It clearly identifies the one thing you want to learn (which pocket detail consumers like best).
• It tests for one variable. It clearly identifies the specific variable (pocket detail) on one type of item (jeans) that’s being tested.
• It’s actionable. After you review the results, you’ll have information to help you choose the right pocket detail. You’ll have an answer to the question, “Which pocket detail do consumers like best for jeans?

• Understand what the colors mean when running an insight (pick and price)

1. RED: not enough responses to end the
   Insight.

2. Yellow: a fair number of responses to end
   the insight, if you have time, you can wait for
   more responses before ending the Insight.

3. GREEN: enough responses to end the
   insight

• What are the 5 steps to building a pick and price insight

1. set objective

2. select items

3. engage respondents

4. apply analytics

5. gain insight

• What is the product failure rate

over 50%

• Image files should be no bigger than 10 mb and resolution should be 300 MG/MI

• Image files should be no bigger than 10 mb and resolution should be 300 MG/MI

• Review global vs local settings

• Test items need to be in certain price range from each other

Item prices should be within a range of 1x - 1.5x of each other.

• What are the various types of survey questions you can ask

single selection, multi selection, text (freeform), image choice selection, ranking

• How many should you include to prevent respondent fatigue

3 to 5 questions

• Understand what is insight strategy and planning

• consumer trend and insights

  • Understand item trends and consumer trends over time

  • Analyze brand or portfolio health

  • Assess competitive positioning

• forecasting

  • forecast financial results

  • access regional forecasts

• strategic insights

  • macroeconomic, social, and cultural trends

  • whitespace and brand opportunities

• What is insight design merchandising and sourcing

• Concept Research, Ideation & Sourcing

  • Explore concept attributes

  • Gauge consumer trends

  • Test mood boards and design themes

  • Plan fabric and country of origin

• product design

  • identify valued attributes

  • Decide licensing and logo

  • Test whitespace concepts and items

• assortment building

  • Maximize product success

  • Identify winning assortments by region or country

  • Assess sourcing

  • Analyze competition

• assortment rationalization

  • optimize SKU rationalization

  • optimize reach/basket

• What is insight pricing

Price Optimization

• Optimize pricing strategy

• Determine initial pricing

• Align promotion strategy

• Align markdown planning

Margin Optimization

• Model margin forecasts

• Strategize cost-engineered items

• Assess key item price sensitivity

• What is insight supply chain planning

Plan and Inventory optimization

• Determine initial buy depth

Allocation Optimization

• Maximize initial allocation: region or demographics

• Assess reach/basket per region, country, or channel

In season optimization

• Assess replenishment depths

• Revise allocations

• Revise pricing

• What is insight marketing and selling

Brand & Wholesale Sales

• Increase sell-in

• Perform competitive analysis

• Enhance retail channel offerings

Market Research

• Target profiles and personas

• Gauge brand health and perception

• Engage influencers / social media

Creative & Messaging

• Optimize ad, web, catalog layouts, models and items

• Improve store layouts and displays

• Align wording and packaging with target segments

Campaigns & Targeting

• Target segments with optimal materials

• Incentivize and convert sales thru engagements

• Improve CRM records

• First insight platform boosts sales and gross margins by how much

4-10%

• Insight suite pricing reduces markdowns by what percent

up to 25%

• First insight reduces sample costs by how much

20-30%

• Manufacturers can cut up to what percentage on product development time by using first night

30-40%

• First insight delivers value in many ways. For example it allows you to buy deeper in winning items, which leads up to what percentage of improvement of what product offering

50-80% improvement in new product success rates

Francesca’s Webinar notes

tested logos for their new tween brand, Franki