Stage Gate Planning Method

Stage-Gate

In order to execute this project in the most effective way, the design process must be conducted in phases and the management tool used is called the Stage-Gate Process or Phase-Gate Process.

The Stage-Gate Process Development method was invented by Scott J. Edget and Robert G. Cooper and it is designed to lead a new product launch to a profitable success, by planning the process step-by-step and after each step a decision has to be taken representing “the gate” (Stage-Gate International 2020). Figure 17 below represents a template of the organisational Stage-Gate plan.

Figure 17. Stage-Gate Planning (Cooper 1990)

Gate 1: Must be approved by GUCCI and designer manager Stage 1: Starting off with a market analysis (See first part of the report for more details) the target market associated with this product is the upper class, usually driven by fashion and also individuals who use wellness technology and do not aim for a price. Other smart belts already available in the markets are also presented above. In term of technical issues, the manufacturing of the belt and also the sensor should be taken into consideration. In this stage a brief financial planning, such as the materials, salaries and other expenses should be established at this point.

Gate 2: Must meet the criteria and be approved by the design manager

Stage 2:

A more in depth analysis of the high end fashion market and wearable technology market should be performed, as well as a better understanding of the user. A legal and operational approach to the project must be taken at this point, where law representatives must review the project so far and contribute Continuing the technical operation of the project by adding roles for each designers needed for both the belt and the sensor, all the materials, the logistics, production places, ware houses. A business case must be written, including the product definition, plan and justification, which will comprise of:

Strategic context Economic analysis Commercial approach Financial case

Management approach (apm.co.uk 2020)

Gate 3: Must be approved by the design manager

Stage 3:

Product development plan in details Testing options should be considered and also how the product will enter the market A full costing analysis must be written More analysis of the market and consumer feedback can be monitor by questioners/focus groups.

Gate 4: Must be approved by the design manager and the client

Stage 4:

This stage focuses more on product testing. Firstly, testing the product in-house for a fully and successfully functionality Secondly, the product could be given for trial to target consumers in return for valuable feedback during focus groups A last financial review must be discussed before launching the product

Gate 5: Must be approved by the design manager and GUCCI

Stage 5:

The last stage covers the launching plan and how GUCCI will introduce the Smart Belt into their already defined market. There are two possibilities in this case, at a fashion event with a runway walk and also at a wearable technology exhibition.

Review: Critical assessment of the project by the CEO of Gucci and their team

Ansoff Matrix

In order to develop a strategy, a very useful strategic management tool for planning is Ansoff Matrix, discovered by Igor Ansoff in the 1960s, which aids a business in determining its product and market growth, by focusing on whether the product or the market is new or existing (Ansoff Matrix 2018). Figure 18 shows the Ansoff Matrix template.

Figure 18. Ansoff Matrix (Oxford College of Marketing 2020)

In this case, GUCCI Walk of Fame represents a new product for Gucci, which also opens an opportunity for a new market; wellness wearable technology users. The diversification strategy could bring the company high risks, however it leans more towards a new product development due to the strong marketing strategy that Gucci already has. The majority of Gucci consumers are already dedicated to the brand for its prestige and demonstrated high quality and it is most likely the product will be sold in this market only for the name of Gucci, since most individuals within the target market do not take price into consideration when purchasing their products. On the other hand, this diversification strategy does not necessarily aim for brand new market, nonetheless, it brings the new market into the existing one expanding it and lowering the risk of the strategy.