PREFACE

Now a day, management is an art, which we should learn by heart, and we believe that art by studying it practically rather than reading the books. Management is must for every company, every organization, not only this but also it is must for every person. The Master of Business Administrator is a professional course, which develops a new level of knowledge & skills and sets & prepares those seeking challenging carriers in the new era of Liberalization, and Globalization. MBA Programme imparts the knowledge of concept & application skills of management.

In MBA Semester-II, we are required to prepare a report on STUDY Developing Merchandise & Assortment planning for “Arvind Intellifabrix” for Arvind’s EBO fulfill this requirement of the syllabus;

“Think big, challenge conventional wisdom,
Think differently, think long term Work towards long term objectives Don’t get disturbed by short term opportunities. Always aim for the best, nit just in India, Best in the world The technology, best equipment, best work Best workforce Demand excellence, never compromise.”
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ACKNOWLEDGEMENT
. I would like to extend my gratitude to Mr. Hari Khadka (Chief Manager – Sales & Marketing), and Limited, without whose guidance and support this project would not have been completed I am grateful to Prof.Tushar bhavsar for giving me this opportunity and for being a supportive and insightful guidance to me.I am grateful toMr.Pankaj Patel for his various inputs and comments and to being my supervisior. I would also like to thank Mr. Achal Jain, Marketing Manager, my project guide for his help and support, which was invaluable for the project. I am grateful to the entire retail team for their help and interest. I would specially like to thank all the franchisees and the sales staff at the stores for their constant patience and support without which I could not have proceeded with my work. I would also like to take this opportunity to thank all those at the office who made my project tenure and workspace enjoyable.

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EXECUTIVE SUMMARY
Menswear industry includes garments for boys and youths. Menswear collection is gaining importance because it features complete, co-ordinated, groups of merchandise, all of which are produced, sold and ultimately displayed in retail stores under a single brand or designer name. Menswear industry is larger and differs greatly from women’s wear just as women’s wear divides into couture, ready to wear and mass production, so does menswear. Today men’s interest in fashion has becoming increasingly pronounced and the industry that serves them has responded accordingly. Generally in India, the trend was that most of the people prefer buying from convenience neighborhood stores rather than large format retail outlets. Daily needs products were usually purchased from small stores and from street shop. Convenience store market is growing rapidly today. Trends in the market are fast changing. Some major changes in trends are taking place in the convenience neighborhood stores. One of the important changes is keeping of apparels in the convenience neighborhood stores as merchandise. In the organized retail, the large variety, segmented customer profile and changing tastes plays a big role. Selling apparels in a convenience store is no child’s play. There are two important factors to be considered for making apparel sale in a convenience store a success - variety and price. Certain players like Aditya Birla’s more have made an agreement with various apparel manufacturers to launch their private labels in different categories of apparel. Example, Kitchen Towel, fridge cover, hand towel, face towel, bath towel etc. Future Group has entered into small format chain of retail stores for daily needs products. This format is operating with the name KB’s Fair price (Kishore Biyani’s Fair price). Aprons, dungarees, shorts and shirts are the apparel products which may induce a customer for impulse purchase. Men’s wear apparel has yet to prove its strength in this format of retailing. The branded garment is still not kept by most of the players in their convenience stores due to the high price factor. Functional garments are largely bought off the streets in this country.
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Keeping the apparel category in convenience stores market is a game that requires guts and focused inputs. Remember, this is the market for daily needs. This research shows that there is a huge potential in the Indian neighbourhood convenience market because the number of players in the market are still less as compared to the size and demand of this section

Table Of Contents

EXECUTIVE SUMMARY......................................................................................................iii LIST OF TABLES....................................................................................................................vi
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List Of Annexures (Or Appendices).........................................................................................ix Abbreviations.............................................................................................................................x CHAPTER-1 INTRODUCTION...............................................................................................1
1.1 Purpose of Research Project................................................................1 1.2 Company Profile..................................................................................2 1.2.1 Historical Perspective: ..........................................................................2 1.2.2 Contribution: .........................................................................................4 1.2.3 Arvind & Environment: ....................................................................5 1.2.4Arvind’s Business:............................................................................7 Yarn ware house .....................................................................................12 Rewinding Department...........................................................................12 Dyeing Department................................................................................12 Yarn dyeing department...............................................................................13 Fabric dyeing department............................................................................13 Knitting department...............................................................................13 TSD laboratory..............................................................................................14 Finishing department.....................................................................................14 Fabric inspection section..............................................................................16

ORGANIZATION CHART.....................................................................................................17
1.3 Research Gap....................................................................................18 1.4 Research Objectives..........................................................................18 1.5 Problem Definition.............................................................................18 1.6 Review of Literature..........................................................................18 1.7 Nature and Scope of Study................................................................23 1.8 Research Methodology......................................................................23

CHAPTER -2...........................................................................................................................25 Shirting & Suiting Business Analysis......................................................................................25
2.1 Shirting & Suiting Business Division.................................................25 2.2 Shirting Division at a Glance.............................................................27 v

2.3 Suiting Division at a Glance...............................................................32 2.4 Marketing Division.............................................................................32

Chapter-3:-Analysis of Primary Research...............................................................................34
3.1 MARKETING OBJECTIVE:.....................................................................35 3.3 RESEARCH DESIGN:...........................................................................35 3.6 Retailers Information.........................................................................37 3.7 Demographic profile of the respondents...........................................42 3.8 Brand preference analysis by retailor’s and customer’s perception. .43 3.9 Buying Cycle Of The Respondants.....................................................44 3.10 Suit assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception .................................45 3.12 Trouser assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception..................................47 3.13 Promotion and Store Location .......................................................49 3.14 Payable For Premium ......................................................................53 3.15 Reason behind less conversion .......................................................53

Chapter 4:-................................................................................................................................55 Assortment Plan and Merchandise Plan for the Brand “Arvind Intellifabrix”........................55 Conclusion................................................................................................................................67 Suggestions..............................................................................................................................69 Bibliography.............................................................................................................................70 ANNEXURE............................................................................................................................72
Annexures ………………………………………………………………………………75…... Onward

LIST OF TABLES
Table 1.1 Production Capacity Table-1.2 Main Domestic And Export Buyers Of Arvind Limited Table 2.1 Production Capacities Table 2.2 Basic Key data
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Table 3.1 General Information about Retailors Table 3.2 Walk-In and Conversion on Different Occasions Table 4.1 Ebo Planning And Analysis Sheet -For Ahmdabad City Table 4.2 Ebo Planning And Analysis Sheet -For Whole Country Table 4.3 For Assumption Table 4.4 Calculation Table Table 4.5 Merchandising Planning In Terms Of Quantity For Flagship Store Table 4.6 Merchandising Planning In Terms Of Quantity For Experience Store Table 4.7 Merchandising Planning In Terms Of Quantity For Value Store Table 4.8 Merchandising Planning In Terms Of Money

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LIST OF EXHIBITS
Figure 2.1 Product Development Process Figure 2.2 Shirting & Suiting Business Classification Figure 2.3-Introduction Retail Business Mix Figure 2.4 Retail Business Mix Figure 3.1 Retail Outlet Type Figure 3.2 Retail Business Type Figure 3.3 Footfall on Different Occasion Figure 3.4 Conversions on Different Occasion Figure :3.5 Age Wise Distribution Of The Respondents Figure : 3.6 Profession Wise Distribution Of The Respondents Figure: 3.7 Yearly Income Of The Respondents Figure 3.8 Most Preferred Suiting Brands Figure 3.9 Most Preferred Shirting Brands Figure: 3.10 Time wise buying distribution Figure 3.11 Suit assortment analysis by design Figure 3.12 Suit Assortment analysis by attributes Figure 3.13 Suit assortment analysis by price range Figure 3.14 Shirt assortment analysis by design Figure 3.16 Shirt assortment analysis by price range Figure 3.15 Shirt assortment analysis by attributes Figure 3.17 Trouser assortment analysis by design Figure 3.18 Trouser assortment analysis by attributes Figure 3.19 Trouser assortment analysis by price range Figure: 3.20 Critical factor for increasing the sales Figure: 3.21 Promotional attributes
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Figure: 3.22 Radio preferences of customer Figure: 3.23 News paper preferences of customer Figure: 3.24 Accessories buying along with fabric Figure3.25 Critical factor to increase the conversion Figure: 3.26 Tailoring service Figure: 3.27 Feedback from customer Figure: 3.28 Payble for premium Figure 3.29 Factor responcible for less conversion Figure 4.1 Top view of planned layout of a flagship store Figure 4.2 Catchment Area Analysis

List Of Annexures (Or Appendices)
Retailer Questionnaire
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Customer Questionnaire Questionnaire Analysis Report Or Sheets

Abbreviations
EBO-Exclusive Brand Outlet DSR-Daily Sales Report BEA-Break Even Analysis
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SQ FT-Square Feet

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CHAPTER-1 INTRODUCTION

1.1 Purpose of Research Project The purpose of research project is directly linked to the current scenario of the Indian export and Domestic market in Shirting and Suitings industry. The export industry, which is
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declining day by day because of end number of reasons, has to find out ways to sustain or at least afloat the business. Whatever the reason for decline may be, the companies are striving hard in trying new and different options for existence The Objective of Graduation Project is “To make the plan of assortment and merchandise for the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the scope of Retail in these segments.” The Specific objectives are: 1. Business Analysis – Shirting and Suiting
2. Retail merchandise plan –Merchandise calendar plan, Assortment planning –

Product/Pricing/Inventory, Category management and Layout planning. 1.2 Company Profile The Lalbhai group, founded by the 3 Lalbhai brothers - Kasturbhai, Narottambhai and Chimanbhai - in 1908, has grown to become one of India's most diversified business houses, with a significant presence in the textiles, ready-to-wear, chemicals and telecom industries in India. Each company in the group, in its own way, pursues a single mission - to be the benchmark in its industry. To achieve this, we have tied-up with a variety of companies, all world leaders in their respective fields • • • • • The Arvind Mills Limited The Arvind Products Limited Arvind Brands Limited Arvind Clothing Limited Arvind Fashions Limited

1.2.1 Historical Perspective: The Lalbhais are descendents of Seth Shantidas (c.1590-1659), a famous jeweler, financier and businessman of the seventeenth century. Shantidas is known to have even financed the mighty Moghul empire and was the first to be conferred with the title of Nagarsheth. Khushalchand (1680-1748) grandson of Shantidas had saved the city of Ahmedabad from the marauding Maratha army in 1725 by paying a ransom of Rs. 5 Lakh on behalf of the whole city. The currentsurname is derived from Lalbhai Dalpatbhai the great great grandson of Himabhai (1785-1858) son of Khushalchand. Lalbhai was born around the time when the first textile factory in the city went into production. The first manufacturing company of the Lalbhai
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family Saraspur Manufacturing Company was established in 1897 which was into producing cotton yarn. During the intensifying Swadeshi movement the second company Raipur Mills was established in 1905. Due to untimely death Lalbhai Dalpatbhai the reins of his businesses were handed over to his young sons including a seventeen year old Kasturbhai Lalbhai. Kasturbhai is widely acknowledged to be the father of modern Indian textile industry. Kasturbhai started the first large scale textile mill under the name of Asoka Mills in 1920 with a capital of Rs.12 Lakh at a time when the largest mills in the region were built with not more than Rs. 5 Lakh. 1930-31 saw the resurgence of second Swadeshi movement coinciding with the great depression. While different entrepreneurs reacted to the situation differently Kasturbhai saw this as the decade of prosperity and growth and established the flagship Arvind Limited in 1931 with an authorized capital of Rs. 25.25 Lakh. Kasturbhai had also floated mills for families of his three sisters under the name of Aruna Mills in 1928 and Nutan Mills in 1931. With the expansion Kasturbhai came to occupy the position of the biggest textile magnate in the country. Few groups could claim to have made such great strides during one of the worst periods in India’s industrial history. After continuously successful period of four decades in the pre-independence era, the group entered into other fields such as dyes, pharmaceuticals, chemicals, etc. The first diversification started in 1939 with Anil Starch Limited. Atul Products Limited was established in 1952 for manufacturing textile and other dyestuff. In the same campus as Atul existed the joint ventures with Ciba-Geigy called Cibatul, with American Cynamid called Cynamid of India and with ICI of UK called Atic Industries and as the time progressed the JV partners separated amicably and these companies exist in India today as full representatives of these global giants. The group took over the then sick company Ahmedabad Laxmi Cotton Mills Co. Ltd. and merged with Arvind Limited and the unit was renamed as Ankur Textiles. The unit currently under Arvind Products Limited is today the country largest organized player in the voiles market. The groupalso invested in Anup Engineering Limited engaged in fabrication and set up Amol Dicalite in collaboration with General Refractories Limited, U.S.A for manufacturing filter aids and perlite products.

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Apart from the field of business the Lalbhais over generations have contributed to education, social and religious causes. Lalbhais contribution to education starting from Gujarat Vernacular Society in late 1800’s to formation of Ahmedabad Education Society, Physical Research Laboratory, ATIRA and the famed IIM Ahmedabad are just to name a few. Today Shrenik Lalbhai heads the Sheth Anandji Kalyanji Trust involved in propagating and maintaining Jain temples in western India a post he inherited from Kasturbhai Lalbhai. Mr. Sanjay Lalbhai is genuinely committed to the societal causes and is spearheading these initiatives under the aegis of Sharda trust. One of the important factors which built up the Group was the close relationship of mutual trust between the three brothers – Chimanbhai, Kasturbhai and Narottambhai. Despite Kasturbhai having emerged as the patriarch of the group, there was satisfactory distribution of property and managing powers with the members of the family. The management of the companies was distributed between family members who consulted each other under the leader Kasturbhai. Siddharthbhai the eldest son of Kasturbhai managed Atul Products, while his younger son Shrenikbhai looked after the management of Anil Starch. Chimanbhai’s family branch managed Raipur and Saraspur Mills while Narottambhai’s younger son, Niranjanbhai devoted his time in technical function of Arvind Limited and his elder son Arvindbhai managed both, Arvind and Asoka Mills. After Kasturbhai’s death, Arvindbhai son of his brother Narottambhai assumed the leadership of the Group. The process of expansion and the initiative of restructuring of the Group however was led by the third generation of Lalbhais under Sanjay and Sunil, grandsons of legendary Kasturbhai Lalbhai. The major contribution of Sanjay Lalbhai has been that of overall transformation of the Group culture by induction of highly skilled and qualified professional managers. Today Sanjay Lalbhai is the Chairman of the Group and leads Arvind Limited and Sunil Lalbhai managing the dyes and chemicals business under the Atul Products Limited banner. The current estimated group turnover is over Rs. 2500 Crore. 1.2.2 Contribution: At Arvind, it is firmly believed that a successful company must play an active role in the development of the society from which it springs. Besides pursuing its business goals, it should also be responsible corporate citizen. It is because of these beliefs that Arvind is
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always on the forefront of extending a helping hand for the needy, downtrodden and for the society at large. Arvind has always been actively involved in the educational institution, hospitals and research institutions of Ahmedabad, its hometown. It co-pioneered the world renowned Indian Institute of Management, Ahmedabad (IIMA), and helped set up the Ahmedabad Textile Industry Research Association (ATIRA), and The Kasturbhai Lalbhai Textile Training Center to develop and enhance the skills of textile workers.The NarottambhaiLalbhai Rural Development Fund and The Lalbhai Group Rural Development Fund where founded to undertake special programs for the economically deprived. It also assists the nearby villages, through nutritional programs, food camps and the harnessing of solar energy. 1.2.3 Arvind & Environment: Arvind Limited commits itself to continually improve our environmental management. It strives to go beyond the requirements of the applicable environmental laws & other regulations through: • • • • • • • 1) Optimizing usage of cotton, energy, chemicals & water. Adopting preventive strategies to reduce the generation of effluents, waste & air emissions. Maximizing the recycling of inevitable wastes. Encouraging suppliers & buyers to become environmentally responsible Maintaining a safe working environment. Increasing the green cover. Training employees on environmental issues. Effluent Treatment Facilities:

All the production / processing units are provided with adequate wastewater / water treatment facilities, to meet the requirements of regulating authorities as well as our reputed customers like Levis, Nike etc.

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Arvind Limited at Santej has one of the largest effluent recycle plants in Asia with recycling capacity 10,500 m3/day. The latest & best of the technologies available in water / wastewater treatments can be seen in operation in this plant. The Arvind International (division) has Effluent recycling facilities comprising Chemical, Biological & tertiary treatment and it is of 800-m3/day capacity. The plant also has ISO 9000 & ISO 14000 certification. Arvind Limited at the main site at Naroda also possess chemical, biological treatment facilities to treat 10000 m3/day of effluents to meet the pollution control board norms. Ankur Mills (division) has Effluent treatment plant of 1600-m3/day capacity with chemical & biological treatment facility to achieve the pollution board norms. Arvind Limited (Garment exports division) is setting up a new garment unit at Mysore road, Bangalore, along with Effluent treatment plant of 1450 m3 /day capacity. This plant also possesses chemical, biological & tertiary treatment facilities to achieve the State Pollution Control Board norms. The uniqueness of this plant is – all it’s process water requirements will be attained through recycled sewage water of Bangalore City. 2) Air pollution Control:

Arvind Limited has switched from liquid fuel to Natural gas for all their heating & steam requirements in order to avoid the air pollution. 3) Solid waste Management:

All the units believe in waste minimization measures. All the ETP plants are provided with adequate sludge Dewatering facilities. Units at Santej, Naroda, Arvind International & the upcoming Bangalore unit are provided with Decanter Centrifuges for sludge de-watering. Dewatered sludge is dried in solar evaporation pans for further volume reduction. Waste oil generated in all the units is recycled. Polythene liners, Discarded containers are disposed off to the respective buyers. 4) Afforestation & Rain water Harvesting:

Units at Khatrej & Santej have very good afforestation & green belts. The Santej unit has more than 1 lakh trees & other shrubbery. Plants like Jetropha (seeds used for Biodiesel generation) are grown extensively. ETP treated water is used for this plantation so as to minimize raw water consumption. Beautiful lawns with Fountains are part of the landscape.

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At the Santej unit ground water recharging facility is also developed where in yearly about 40 MLD rain water is recharged in to ground water table. Two recharge ponds with a capacity of about 4000 m3 are made & Rainwater during the monsoon is collected in theseponds & recharged in to Ground water table. 1.2.4Arvind’s Business: 1.2.4.1Fabric – Denim Denim has its origin in tough canvas cloth from Nimmes, France (de Nimmes - of Nimmes). Genoese sailors used this cloth to make rough-and-ready pants that lasted for ever. Called "Genoese," which in time got corrupted to "Geans" or "Jeans", these trousers found favour around the world wherever men had to do work that would ruin most other clothes. In the American Wild West, cowboys practically lived in them, as did railroad workers and farmers. Arvind’s denim is used to make India's leading jeans brands - Flying Machine, Killer, Levi's, Numero Uno, Pepe, Texas Jeans, UFO and Wrangler. "Made from original Arvind denim" is used by all the leading local jeans manufacturers as an indicator of high quality and authenticity Arvind also exports denim to over sixty-six countries worldwide. The US forms 31% of our export market, while the EC and Hong Kong constitute 20% and 24% respectively. Denim exports constitute approximately 50% of our turnover, and Arvind Denim - which is sold as a brand and not a commodity - is used to make some of the most desired jeans brands around the world - Brittania, C & A, Federated, Jordache, Lee, Lee Cooper, Limited, No Excuses, Pepe, Tillis Pavely and Wrangler. Behind every well-known jeans label, the quality is of Arvind Denim. The Arvind Mills' Denim Division was established in 1987 and has since grown into one of the world's largest denim producer. With a turnover of US$ 180 million, Arvind Denim has a capacity for producing 110 million metres per year. The denim is exported to more than 70 countries all over the world, besides catering to the Indian market. Technical Excellence has been achieved through: 1) Investments in state-of-the-art European Technology. 2) World class product & design innovation.
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3) Assurance of quality and consistency. Flexible production has been made possible and is reflected through: 1) Lower minimums. 2) Reflection of product/fashion dynamics. 3) Consistency and quality. • • • Delivery Adherence – on time every time. Continuous Product Development – new fibres/yarns/finishes. Strong Emphasis on Design Creation/Modification to suit specific customer needs.

The division believes in the philosophy “On time and in full”, whether it is information, product quality or order quantity. The design studio attached to the pilot mill is fully equipped to reproduce customer design samples and also to make customized seasonal collections. The SAP R/3 module facilitates better and faster material management for our customers. Table 1.1 Production Capacity Capacity Million Yards/Annum Total 1.2.4.2 Khakis: Arvind has also started the Pants production facility at the existing shirt factory in Electronic City, Bangalore factory, where 3 lines have been added to produce Pants and other garments using piece dyed fabrics. These 3 lines with 240 machines is also producing garments for Arvind’s own brands in the Indian market and is also doing trial orders for export orders and has an initial capacity of 1.5 Million pants/ year. This factory is already compliant with many USA and EU based customers. Arvind is in the process of adding the capacity on Spraying, Brushing, and Hand Scrubbing etc to meet our customer’s requirements. 1.2.4.3 Knitwear (Knits Business Division): Today Arvind has made yet another foray- in the manufacture of the finest quality Cotton Knits in the world. With an investment of US $ 50 million, the plant produces mercerized
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33.5

fabric in both tubular and open widths. The capacity is phenomenal: 16 tone per day of cotton knits, 11 tone per day of piece-dyed fabric and 5 tones per day of yarn-dyed fabric. The product range aims to offer widest choice in both tubular and open widths in single (Jersey, Pique, Textures, Pointless, Fleece, French Terry, Jacquards in solids, feeds and automatics) and double (Interlocks, Needle-outs, ottomans, Pointless, Textures, Reversible, jacquards, Ribs in solids, feeds and automatics, Collars: Plains and Jacquards) knits. Arvind Ltd. has its knits garment division in Ahmedabad. There are 3 units producing garments from knitted fabric:- Where one is for making fabrics and another two use for making garments. • • • KNITS MAIN BLOCK (UNIT-I) VADSAR AMBER

Domestic & Export merchandising available at Avind knits business devision.Major domestic buyer of arvind mill's are Aditya birla nuva ltd(Madura garment), Big Bazar, Reliance retail ltd, Cadila pharma, Fritz gaitri marketing & poly, Pantaloon (ratail) india ltd,Hanes brands apparel india pvt, S.B.I.Polo, Raymond apparel ltd, Liverpool retail ,Sara lee apparel india,Indian terrian, Shopper,s stop, Ashish associates, Vishal retail ltd, Aditya birla ratail lt.. There are three types of merchandising pre-production merchandising (sampling mechandising) production merchandising and post-production merchandising. Basic domestic knits business devision are T-shirt,polo,Women & men's wear bottoms (lower,capri,track suit),Under garment (lingree,briefs & vest).Places where job work has been taken of arvind mill's knits garments business devision are K.G.Intimate (inner wear) (Rajkot), Ashish Associates(outer wear),cross stitch(outer wear),safferine apparel ltd(outer wear) (AHMDABAD),Shah knit wear (outer wear)(vapi),embi(tripur) Table 1.2 Main Domestic and Export buyers of Arvind limited Domestic buyers 1. Madura garments 2. Reliance retail limited 3. Big bazaar 4. Cadila pharma Export buyers 1. Marks & Spencers 2. Joy sports 3. Outer banks 4. Carrefour
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5. Pantaloon 6. Hanes brands apparel India limited 7. SBI polo 8. Raymond apparel 9. Liverpool retail

5. Rebook 6. Adidas 7. Hanes

10. Sara lee apparel India 11. India terrain 12. Shopper’s stop 13. Winner sport 14. Dim 15. TSS Bombay

rayon 16. Barcelona

VADSAR 1) This is a complete unit i.e. having all the facilities for spreading, cutting and garment production. 2) All the fabric is supplied to this unit from the SANTEJ fabric division. 3) Spreading and cutting is done only in VADSAR unit of Arvind Ltd and then sent and cut garment parts are supplied to the AMBER unit for garment production. 4) The unit at Vadsar has double capacity of garment production as compared to Amber unit. 5) There are 16 lines running in 1 shift on the sewing floor. 6) Shift timings in both the units is the same: 7 am to 3.30 pm & 4pm to 12am. 7) It has a highly automotive ETONE System incorporated. 8) This unit produces most popular brands like Marks&Spencer, FCUK, Joy Sports, Reebok and Outerbanks. 9) Spreading is done with the help of Automatic spreaders (GERBER).
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10) Cutting is done with the help of an automatic cutting machine (GERBER). UNIT PRODUCTION SYSTEM 1) This is the automatic work station that is being used at the VADSAR unit. 2) It is a Japanese work station. 3) It has software for Line Balancing, Operation Breakdown and Allocation of Work system. 4) It can record size wise feeding, shade wise feeding etc. 5) It tells at what speed the work is being done and hence can predict the target i.e. it can take out the potential production in that shift. 6) Operator efficiency can be calculated very easily. 7) It can be used to easily find out which operation is faulty or it can be used to find out which operator is not doing the work properly. 8) All the above can be calculated differently for different styles even when all the different styles are fed simultaneously in the system. 9) It produces twice as much in 1 shift as compared to what is produce by the manual line. AMBER 1) It is the smallest of the two garment manufacturing unit and only garment production is done here. 2) This unit manufactures for major companies – Outer banks & Adidas Reebok. 3) It has a production capacity of approximately half as compared to VADSAR unit. 4) There are 7 lines working on the floor in the first shift and 6 lines working in the second shift 5) The timings of the shifts are – 7am to 3.30 pm & 4pm to 12 am. 6) Women workers work only in the first shift. 7) Workers are called FLM’s (Front Line Managers) over here and this is a part of the motivation program of the company.
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Yarn ware house The Arvind Mills surces yarns according to the demand of their customers for knitting. The Arvind Limited is mainly known for it’s cotton fabric but inspite of sourcing 100% cotton yarns they are also sourcing Polyester yarns for cotton polyester blend fabric and, modal for modal cotton blend fabric, spandex for its blend. As per demand of the customer. These yarns are sourced either in to the form of open ended yarns or in the form of closed ended yarns. Open ended yarns are coarser (having rough feel) than the ringed yarns because of this reason open ended yarns are used for the production of the fleeced fabrics. Instead of the availability of other yarns Arvind KBD till now is primarily focusing on cotton fabrics and has the expertise to handle yarn counts ranging from 10s to 2/100s. The main yarn suppliers for The Arvind Ltd. are the Indian companies’ like1) Nahar 2) Welspun 3) Vardhaman 4) Arisht 5) Abhishek and others. Beside outsourcing the yarns from outside sometimes they go for in house sourcing. Rewinding Department Rewinding department is the next to the Yarn warehouse. This department has ten machines out of which five are for making cheese (term used for the small metal beams on which grey yarns are transferred for the yarn dying. these machines have been sourced from Switzerland named SSM (Scharer Schweiter Metteler) having capacity of .Whereas other five machines are different in their function because they are for transferring the dyed yarns from cheese to the plastic cones for the knitting purpose. Dyeing Department Dyeing department is mainly divided in to two sub departments first one is dealing with the yarn dyeing and second one is dealing with the fabric dying (for solid fabric).
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Yarn dyeing department • • Arvind KBD has a daily capacity to produce 8 tonnes yarn dyed fabric. The dyeing plant has state-of-the-art machinery comprising of 21 Yarn Dyeing Machines. • • The capacity of yarn dyeing machines range from 60 to 300 Kg. The Dyeing capability is assisted by the Dyeing Lab, which checks the lots for shade variation with DATA Color Shade Matching System. • The Processing Lab is modeled on the production setup to achieve production results in the lab itself. Fabric dyeing department • • Arvind KBD has daily capacity to produce 15 tonnes There are total 11 SCLAVOS Piece Dyeing Machines (Atmospheric and HighTemperature Dyeing Machines with auto dosing of chemicals). • The capacity of for piece dyeing machines range from 180 to 720 Kg.

Knitting department The next department which comes after yarn dyeing is knitting department. Arvind limited is mainly involved in the production of tubular and open width fabrics. The fabric range includes Single Jersey, Pique, Textures, Pointless, French Terry, Auto striper, Electronic Jacquards, Popcorn and Waffles. The Double Knits range includes Interlocks, Needle Outs, Ottomans, Thermals, Pointless, Textures, Reversibles, Auto stripers, Electronic Jacquards, Ribs, Fleece- Yarn Dyed and Piece Dyed and Variegated. For knitting there are mainly seventy seven knitting machines. Out of seventy seven machines 43 machines are for single jersey, eleven for Auto striper S/J, two for Auto striper D/j, eight machines are for interlock, three machines for three thread fleece and remaining nine machines for Rib. The fabric production is performed on the basis of feasibility of the design of the demanded fabric by the customers. There is a lead time period for the fabric 13

For solid fabric – 35 days For yarn dyed fabrics it is - 45 For mélange fabrics the lead time period is- 55 TSD laboratory Arvind Knits Division has the distinction of being the only nominated supplier of INVISTA (DuPont) Specialty Lycra® Fabrics in the Indian Subcontinent. DuPont has entrusted Arvind Knits as the only DuPont accredited Readymade Garment Vendor (RGV) source for Lycra® based garments in India. Arvind KBD has tied up with International Fiber Companies like Celanese (for Acetate), Lenzing (for Modal), Courtaulds (for Tencel®) and Wellman who have approved Arvind knits as a Vendor for fabrics made from their fiber. Arvind KBD is a nominated supplier of fabrics to Nike Golf, Marks & Spencer, Arnold Palmer, Eddie Bauer, Calvin Klein and Columbia Sportswear. Labs accredited by • Marks & Spencer • Target • In vista (DuPont) Finishing department • Arvind KBD has the latest machinery for fabric finishing. Tubular and Open width finishing is done on Tubetex and Santex ranges respectively. • Arvind lmt. has Compacting lines and Relax Drying routes to cater to varied requirements. Dornier Singeing and Mercerizing machines are used for process value addition. • In-house Babcock 8-chamber Stenter is used for superior heat setting (for Lycra®) and width standardization and application of finishes. • Arvind KBD is constantly updating and developing new finishes and finishing techniques to add value to the fabric. Some of the finishes that can be provided to the fabrics are:

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Types of Fabric Finishes • • • •

Moisture Wicking Anti Microbial Finish Outlast Aroma Wick-able Soil Release UV Protection Finish from CIBA NANO Finish from BURLINGTON TEFLON Finish from INVISTA Easy Care-Wrinkle Resistance Bio Wash / Enzyme Softening Peaching AIR-DRAPE ™ Finish (for softer handle, and adding bounce to the fabric through Air Beating)

• • • • • • •

Product Innovation department To cater to changing market demands, new product innovations are constantly being brought about. The latest range showcased by Arvind Knits includes: • Arvind KBD has the distinction of being the only nominated supplier of INVISTA (DuPont) Specialty Lycra® Fabrics in the Indian Subcontinent. Furthering the relationship, DuPont has entrusted Arvind Knits as the only DuPont accredited Readymade Garment Vendor (RGV) source for Lycra® based garments in India. • Arvind KBD has tied up with International Fiber Companies like Celanese (for Acetate), Lenzing (for Modal), Courtaulds (for Tencel®) and Wellman who have approved Arvind knits as a Vendor for fabrics made from their fiber. • Arvind KBD is a nominated supplier of fabrics to Nike Golf, Marks & Spencer, Arnold Palmer, Eddie Bauer, Calvin Klein and Columbia Sportswear.
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Working towards total in-house solutions, Arvind KBD has also acquired accreditation for its Laboratory and Testing Facility from esteemed clients like Marks & Spencer, Target and Invista (DuPont).

Lycra®: Arvind KBD is the only DuPont accredited readymade garment vendor (RGV) source for Lycra® based garments in India. Arvind over the years has perfected the art of producing garments with high Lycra® content (upto 13%). Arvind Knits has the capability of making Lycra®, DO9M, Cool Max fabrics with all feeds and alternate feeds. Mercerized: Arvind Knits has the capacity and the know-how to produce singles and double mercerized fabrics with exquisite sheen and handfeel. Arvind Knits is one of the few firms who can expertly produce Mercerized Lycra® Fabrics. This feat also makes KBD a part of the elite Supima Club. Moisture Management Fabrics: Arvind KBD has developed technologically superior fabrics for moisture management. Moisture Management Fabrics can also be created with chemical treatment to any fabric for e.g. 100% Cotton at Arvind KBD. Currently supplying to Cutter & Buck, Eddie Bauer . New Age Fibers: Arvind KBD has been a pioneer in experimenting with, and introducing new age fabrics made from fibers like Modal, Tencel®, Viscose, Comfortrel, Sensura etc. Blends: Arvind KBD has the expertise to work on new blends. Production has already been done on Modal/Cotton, Tencel®/Cotton, Viscose/Cotton, Polyester/Cotton, Polyester/Viscose, Silk/Cotton and Silk/Viscose and other man made / cotton blends. Fabric inspection section When fabric gets ready it goes to the auditing department for quality check. Arvind limited is very conscious to the quality of fabric and garments manufactured by them. For inspection they have a separate team called as AUDITING team. Consisting of five to six members. As for inspection of fabric Arvind limited is following “four point system”. Auditing team has to justify the quality parameters of the fabric.

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ORGANIZATION CHART
Arvind Limited

Managing Director (Sanjay Lalbhai)

HR Deptt.

Stores

Exports & Domestic s

Quality Assurance

Garment Packages Division

Administration and Accounts

Spinning

Weaving

Processing & Finishing

Engineering

Order Management & Documentation

Production
Administration Accounts Banking Purchases Production Order management Sampling Documentation Invoicing

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1.3 Research Gap The Objective of Graduation Project is “To make the plan of assortment and merchandise for the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the scope of Retail in these segments”. The Research gap has been identified in integrating these all together and controlling elements of brand “Arvind intellifabrix” strategy efficiently to attain Retailer’s long and short run goals. 1.4 Research Objectives The Objective of Graduation Project is “To make the plan of assortment and merchandise for the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the scope of Retail in these segments.” The Specific objectives are: 1) Business Analysis – Shirting and Suiting
2) Retail merchandise plan –Merchandise-Assortment planning –

Product/Pricing/Inventory, Category management and Layout planning. The situation in the global market is fading, which is affecting India very drastically. Such is the condition of the international market. Hence, the next option a company can think of is to penetrate into the domestic market. 1.5 Problem Definition Improper retail strategies of Exclusive brand outlet of this company with respect to the competitors. 1.6 Review of Literature Exclusive brand outlets:Premise:-Location High street with good visibility in a central business district. Facility for parking would be a plus.Size, Frontage: Flagship store: A flagship store is expected to be on a high street in a major town with a population of >10 lakhs. A fabric only shop would be a single plate 2500 sq ft shop, while a ready-made and fabric shop would be 3500 sq ft in size (preferably single plate). The frontage of a flagship store should be at least 20 - 25 feet in length. Experience store: An experience store is expected to be on a high street in a large town with a population of 5-10 lakhs. A fabric only shop would be a single plate, 1000 sq ft shop, while
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a ready-made and fabric shop would be 1750-2000 sq ft (preferably single plate). The frontage of an experience store should be at least 20 feet in length. Value store: A value store is expected to be on a high street in a small to medium town with a population of 1- 5 lakhs. Any existing shop of >600 sq ft would be considered. In the value store concept, the existing shop would be used as is without any renovations of interiors. Sales of certain other categories (women’s, children) would be allowed. Business potential: Will be defined based on catchment area, performance of other leading brands in the vicinity and business plan projections. Own/ Rented: The franchisee is obliged to declare to the company whether the premise is owned or leased. This would be required to work out the feasibility of the store economics. Profile for Franchisee Arvind believes in strong and everlasting relationships with its channel partners. With this in mind, franchisees will be carefully evaluated on several parameters. Aspects that will work well in favour of franchisees are as below. • • • • • • Long experience in the textile trade Good business acumen Financially sound. Resourceful, hands on in operation and work force management Focus & dedication to help grow the business. Long term vision for growth plan with Arvind

Products Shirting – 100 % Cotton, CVC, Hatric (cotton blended) & Tresca fabrics( very premium shirting fabric) Suiting – 100 % Cotton, Hatric (cotton blended) & other blended fabrics Denim – 100 % Cotton & Cotton Blended fabrics. Boxes - Ready to stitch lengths in shirting, suiting and denim fabrics. It is mandatory that only Arvind products are displayed and sold in the Flagship and Experience store. For the value store, only product categories other than the above can be stocked and sold. Any deviations from the above will be viewed very seriously by the company and in cases of gross deviations will escalate to de franchising also.
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Margins Goods will be supplied to the store by the respective distributors operating in the various syndicates at the prices fixed by the company. The retail prices will also be fixed by the company and the franchisees are obliged not to exceed the same at any cost. Security deposit Franchising involves the license to operate the business using ARVIND brand name and proprietary marks and hence the need for a security deposit (non interest bearing) to be remitted by the franchisee to the company. Deposit for Flagship store – Rs.2.5 lakhs Deposit for Experience store – Rs.1.0 lakhs Deposit for Value store – Rs.0.25 lakhs. Credit The franchisees will enjoy an interest free credit period of 30 days. They will be entitled to a trade discount of 10% from the distributors, beyond which they will be charged interest @ 18 % per annum. Frequent delayed payments may result in with holding supplies.

Store Layout The store layout including front facade, flooring, ceiling, furniture, lighting, tailoring section & air conditioning will be provided by the company. The cost of the architect will be borne by the company. With a view to have an identity and establish universal look, feel, ambience & experience the design of the store will be standardized. Only material prescribed by the company /architect to be deployed. (Applicable to Flagship stores and Experience stores) Company shall bear the cost for the external and internal signages. Company will also bear the cost of the air conditioning and 50 % of this cost will be recovered from the franchisee in equal installments over a period of five years.

Billing and Cash Counter

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Cash counter will be manned with a computer and billing equipment. All merchandize to be bar coded and scanned. Software and operational training to be provided by the company. Hardware cost to be borne by the franchisee. Ordering, stocking and display The franchisee will place orders for the initial purchase with the respective distributors in accordance to the store layouts and the desired back up stock. Subsequent replenishments and re ordering will be done on a regular basis from the samples provided by the distributors on time to time basis. In case the franchisee faces a problem with the supplies, the same to be brought to the notice of the company. It is the responsibility of the franchisee to display the goods as per the layout and ensure that the stocks are properly maintained. Visual merchandising will be a very important tool for promoting the product and appropriate window display and other props will be deployed as per themes suggested by the company from time to time. Only Arvind products can be sold in an Arvind flagship or experience store. This will be regularly monitored and STRICTLY enforced. Value stores may hold other merchandize in non shirting and suiting categories. (e.g. Women, children, ready-made) Administration The franchisee agrees to hire adequate staff (billing, sales, helper, tailors & security) depending on the store size and service levels to be offered. The staff will be provided uniform by the franchisee and the same will be as prescribed by the company. The company will provide the product training and software handling training for billing & MIS. The franchisee agrees to provide all the MIS details as required by the company in the format and frequency as decided. Tailoring Arvind will create an Arvind branded tailoring solution for all franchisee and experience stores. All franchisees to adopt the Arvind tailoring standards. Fits & style will be standardized by Arvind. Material will be brought from Arvind. The company is of the opinion that this is an important aspect of the business module and hence proper attention be given to the same. The franchisee has to hire a good tailor with sound skills, experience and knowledge and the tailor will have to be approved by the company. Based on the trends, company will be prescribing the fits, styling and materials to
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be used for appropriate garmenting. Manuals & templates will be provided by the company for effective implementation. The tailoring charges for the different garments will be fixed by the company on geographical basis. Advertising and promotion Company will provide advertising support covering outdoor, print, audio visual and event promotions from time to time. Company will decide a budget based on the opening day purchase which is to be strictly utilized towards local promotion only. The audio visual advertising expenses will be borne by the company. Franchisees are expected to support the company in advertising and promotions. This could amount to 4% of sales for a year on year basis. The costs will be borne by the company to have effective brand building at the apex level which would also help in leveraging better prices from the respective medias. Subsequently the same will be recovered from the franchisee on monthly/quarterly basis for which the company would raise appropriate debit notes. Incentives The incentives will be decided based on ideal volumes of each product category. Achieving the maximum bracket of volume expectations will help the franchisee achieve an additional incentive which could be between 2% to 3%. Product wise break up of incentives will be worked out based on the actual sale achieved. Insurance It is obligatory on part of the franchisee to take insurance cover for furniture, fixtures & stocks. Arvind will facilitate the process by tying up with an leading insurance company for leveraging better premiums.

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Merchandise Planning Merchandise Management is the analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. Important terms and methods for merchandise plan.
Organize the buying process by categories

Planning Merchandise Assortments

Organize the buying process by categories
Set Merchandise financial objectives

Develop assortment plan

1.7 Nature and Scope of Study The natures of study are qualitative and quantitative by which we can understand basic structure of different retail formats and their financial aspects. Scope of study is for all formats of retailers who are facing above defined problems due to lack of proper strategy and improper planning. Natures of the problem defined are strategic and can be over comed by following suggestion carefully. This research focuses on integrating and regularly monitoring strategies and controlling through varies tools. Thus retailers of any format in a fashion industry can take a proper view of the retailing concept and create a superior total retailing experience.

1.8 Research Methodology Research methodology followed is Inductive because the approach followed is logically drawing the conclusions and inferences.
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The second part is based on primary data collection. It will be quantitative. The data being collected will be sampled & analyzed using correlation & regression the degree of influence of each factor will be determined. The study has been moreover analytical in approach. The process followed has been objective and systematic gathering of data, recording and analysis of data, along with certain suggestions based on the study

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CHAPTER -2 Shirting & Suiting Business Analysis

2.1 Shirting & Suiting Business Division

The Shirting & Suitings division at Arvind Mills is vertically integrated. 70% of the division’s production is exported either directly or indirectly. Product Range • Yarn dyed and piece dyed fabrics across a variety of counts
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• •

Exclusive range of indigo and sulphur dyed products in high value finer combed yarns in cotton and cotton lycra Yarn dyed stripes, checks, fil-a-fils, chambrays and solids in all possible weaves like Twills / Sateens & Dobbies with a variety of finishes like natural, easy care, antistain, etc.

• •

Drills, Gaberdines, 2 ply Chinos, Canvas, Tussore Specialty weaves like BFC, Rib, Herringbones, Broken Twills, etc.

All the above products can be offered in conjunction with the following performance finishes. • • Surface finishes like mechanical finishes, micro sanded, stiff finish and sponge finish Chemical finishes like ET (pre-cured and post-cured), anti-bacterial, oil repellant and water repellent fabrics The shirting and bottom weights division offers its business partners: • • • • A competitive manufacturing base A partner with an evolved product range & capabilities With high versatility and flexibility Existing knowledge of & presence in Global Markets

Manufacturing Capacity The Shirting’s Business Division has a total manufacturing capacity of 30mmpa and the bottom weight Division 18 million mtrs per annum of piece dyed trousering weight fabrics. Of this 70% is exported world over and to the above-mentioned business partners.

Manufacturing Facilities Arvind Mills has a world class greenfield plant for manufacturing shirting, knits and bottomweights at Santej, at an investment of USD 400 million. The plant covers a sprawling 450 acres and is situated near the commercial city of Ahmedabad. It boasts of an in house power generation that ensures round the clock power supply and an effluent plant that has the capacity to recycle 97% of the water used at the plant.

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Arvind has concentrated on New Product Development. In keeping with fashion seasons abroad and comes out with quarterly collections of new products much in advance. Production with a lead-time of a year to a year and a half enables its buyers to plan well in advance. The Division has an in house Design Studio which is constantly engaged in churning out new products and concepts as per the marketplace requirements. 2.2 Shirting Division at a Glance A capital investment of USD 100 million in a greenfield project with a capacity of 33.5 million yards per annum and a turnover of USD 97 million per annum of 100% high value cotton shirtings has been made at Arvind’s 450-acre Santej textile complex near Ahmedabad. • Technical Excellence has been achieved through: o Investments in state-of-the-art European Technology. o World class product & design innovation. o Assurance of quality and consistency. • Flexible production has been made possible and is reflected through: o Lower minimums. o Reflection of product/fashion dynamics. o Consistency and quality.
• • •

Delivery Adherence – on time every time. Continuous Product Development – new fibres/yarns/finishes. Strong Emphasis on Design Creation/Modification to suit specific customer needs.

The division believes in the philosophy “On time and in full”, whether it is information, product quality or order quantity. The design studio attached to the pilot mill is fully equipped to reproduce customer design samples and also to make customized seasonal collections. The SAP R/3 module facilitates better and faster material management for our customers. The design studio attached to the pilot mill is fully equipped to reproduce customer design samples and also to make customised seasonal collections. The testing laboratories are equipped with the latest testing equipment, which can perform tests of international standards, and are accredited by Marks & Spencer, Next and Tommy Hilfiger. All products are Eco-friendly and Oekotex 100 certified.
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Table 2.1 Production Capacities Capacity Yarn – Dyed Solid – Dyed Indigo Jacquard Prints Total Million Yards/Annum 22.5 5.7 4.8 0.5 4.0 37.5

Production Capabilities The plant has an integrated manufacturing facility from yarn to finished fabrics under one roof. The Shirting division is committed to world class quality products, with the installation of the latest technology and continuous quality improvement program.

Arvind equipped with state of the art technology right from spinning of the yarn to final processing and testing of the high quality fabric. Arvind equipped to spin compact yarn as well as slub yarns. The state of the art machinery includes Yarn-singeing machines, Computerized yarn-dyeing machines, automatic drawing-in machines, etc.Arvind’s testing laboratories are equipped with the latest testing equipment which can perform tests of international standards, and are accredited by Levi’s, Marks & Spencer, Next and Tommy Hilfiger. All our products are eco-friendly and Oekotex 100 certified.

Quality Standards To maintain the high quality standards demanded by its international partners, Arvind has invested in state-of-the-art European technology that guarantees a world-class product with design innovation and assures the buyers of quality and consistency. It also maintains a flexible production schedule that allows for lower minimums and fashion dynamics. In addition to this, Arvind sticks to the strictest of delivery schedules. Arvind’s high quality standards have enabled it to get Quality Assurance accreditations by international names such as Marks and Spencer, Tommy Hilfiger and Liz Clairborne.

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Table 2.2 Basic Key data
Total Production Capacity Fabric Types Main Weaves Weaving Processing Outsourcing Majorly 100% cotton Very Few percent of fabrics in Blends of Tencel and lycra Twills (Mainly 3/1) LHT for Single yarn RHT for Double/Triple yarn Matt Plain Satin Tussore/Canvas Herringbone Oxford (Plain and Pinpoint) Open End Ring Spun 70 Denier Cut fibre and blended yarn 7s and 10s 80/36/350 SD TXTD 6oz to 14 oz 150 – 152 cms Less than 2% 1.2 million meters 1.8 million meters 0.6 million meters

Counts used Cotton Lycra Tencel Amslan Polyester Weight of finished Fabric Width of finished Fabric Shrinkage/Elongation

5.4s to 16s 16s to 2/50s

Design & Development We have an in-house Design Studio with a team of qualified professional designers. The design Studio is fully equipped with latest technologies. We get continuous design inputs on latest international trends from our designers based in Italy and UK.

Design and Development is an integral part of Arvind’s business. The cell performs the following functions • • • • • • Computer Aided Designing A mini mill has been dedicated for Design and Development. Sample Sizing & Warping machines for desk loom samples & road samples Independent weaving for Sample Making Small Package Dyeing Machines for New Shades A comprehensive library of shades to enable quick responses in sampling
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A Design Creation Cell.

Mini Mill for Design & Development • • • • • • • • • • • Capacity of 5 Suzuki & 4 Sectional Warpers, Sizing and 24 looms. Can produce 30 Sample Yardages and 90 Handlooms / day Season-wise collections for S/S and A/W. Customized collections for key customers(based on their concepts/inputs). Stock Service through the Classic Line Collection. Computer Aided Designing A mini mill dedicated to design & development Sample sizing & warping for desk loom samples & road samples Independent weaving for sample making Small package dyeing machine for new shades Comprehensive shade library to enable quick responses.

Range Collections

Facilities

Figure 2.1 Product Development Process

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Arvind has concentrated on New Product Development. In keeping with fashion seasons abroad and comes out with quarterly collections of new products much in advance. Production with a lead-time of a year to a year and a half enables its buyers to plan well in advance. The Division has an in house Design Studio which is constantly engaged in churning out new products and concepts as per the marketplace requirements. Product Range
• • • • • •

Counts : 16s, 20s, 24s, 30s, 2/30s, 40s, 50s, 2/50s, 60s, 2/80s, 2/100s and 2/140s Blends : 100% Cotton, Tencel, Linen, Modal, Polyester Cotton, Lycra, Silk, etc. Varieties : Yarn-Dyed Stripes, Checks, Fil-a-fils, Chambrays and Solids in all possible weaves like twills, satins, dobbies and jacquards. Chemical Finish : ETI, Stain Free, Odor Free, UV Cut, Arvi silk, Nano-Care, Nano-Pel, etc. Mechanical Finish : Peaching, Brushing, Biancalani, etc. Indigo/Sulphur : Indigo and sulphur-dyed casual products - 3.25 oz. to 8.0 oz. in counts 24s, 30s, 40s, 50s, 2/80s and 2/100s.

Arvind’s Customers We supply Shirting fabric all over the world. Our wide range of Customers include some of the most Prestigious Brands in the world.

USA A&F, Ann Taylor, Banana Republic, DKNY, Dockers, Eddie Bauer, Express, GAP, Kohl’s, Lands End, Liz Claiborne, May Dept. Stores, Men's Wearhouse Nordstrom, Oshkosh, Perry Ellis, Phat Farm, Polo Ralph Lauren, Hilfiger, Brooks Brothers etc. Europe Burberry, Facconable, Emidio Tucci, Esprit, FC UK, Marks & Spencer, NEXT, Mavi Jeans, Speedo, Nicole Farhi, Kenzo, Carrefour, Pull & Bear, Peter Werth, Tom Tailor etc. India Express Fashions, J.Crew, Roccawear, Tommy

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Allen Solly, Color Plus, Indian Terrain, Park Avenue, Louis Philippe, Manzoni, Van Heusen, etc.Our Domestic customers include our won Brands like Lee, Arrow, Ruggers, Excaliber, Flying Machine, Ruf & Tuf etc. 2.3 Suiting Division at a Glance Arvind has also started the Pants production facility at our existing shirt factory in Electronic City, Bangalore factory, where 3 lines have been added to produce Pants and other garments using piece dyed fabrics. These 3 lines with 240 machines is also producing garments for Arvind’s own brands in the Indian market and is also doing trial orders for export orders and has an initial capacity of 1.5 Million pants/ year. This factory is already compliant with many USA and EU based customers. Arvind is in the process of adding the capacity on Spraying, Brushing, and Hand Scrubbing etc to meet our customer’s requirements. Product Profile With the above mix of machinery company specialize in making bottom wears. company produce basic 5 pockets, boot cuts, flares, engineered jeans, cargos, carpenters and customers specific hi fashion styles also. We can also manufacture skirts, shorts also. World Class Technology Arvind uses some the best technologies available in the industry. In spinning, Arvind uses machines such as Trutzschler, Rieter Laxmi, Volkman, Murata etc. Arvind’s weaving machines are from Tsuodokoma, Picanols, Benninger, Stabuli etc. For processing and Yarn Dyeing, Arvind uses machines from Kusters, Monforts, Stalam, Thein, etc. and finishing ranges from Monforts. The company also uses Biancalani machines to impart Aero finish, and uses microsanding machines from Lafer. Customer Service Arvind believe in the philosophy “On time and in full”, whether it is information, product quality or order quantity. The SAP R/3 module facilitates better and faster material management for our customers. 2.4 Marketing Division Shirting & Suiting Marketing involves the market channel activities for following segments: (1) Exports: (US & Europe) (2) Brands: (National and International) (3) Retail: (Domestic)
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(4) Ready Made Garments (5) Ready To Style (6) Trade Figure 2.2 Shirting & Suiting Business Classification

SHIRTING & SUITING BUSINESS DIVISION
READY

EXPORT

RETAIL

BRANDS

READY MADE GARMENT

TO STYLE

TRADE

Retail Business – Marketing PerspectiveFigure 2.3-Introduction Retail Business Mix Arvind Limited –Retail Business – An Overview
R C o F t t o n Y - 1 S 9 e t a il B u s in e s s - P r e s e n t

y n C d V c Ca t eS y d i Cc ao t r e e i S y n dS i uc ai t it ne g S y n R d e i ca a d t ye t o S t 9 9 F Y - 2 0 0 0 F Y 2 0 0 9 F Y - 2 0 0 8 R T S / S F F Y - 2 0 0 7 ( R e d e m p t io

Shirting Y/D White/ Dyed Core White Kurta Y/d – Core Prints

Y/ D Cotton Piece Dyed Cotton Blended TR/ PV

Y/ D Cotton Piece Dyed Cotton Blended Whites

Whites - Perma Traditional Kurta
Fila-Fil Chambray

RTS Shirting Style Fit Suiting

Figure 2.4 Retail Business Mix
R C o t t o n S y Cn d V i Cc a S t e y d C i c o a r t e e S e t a i l B u S s i n e s s - F u t u r e y n S d u i ci t ai n t eg yR n e d a i c d a y t e t o S T t i r t ec h c a s H a t t r i c R T S / S (F P r e m i u m ( S W e r g i nm k e l e n tF ) ( P r o g r a m Lm a e u nb ca h s i e n dL g )a A u pn r c i lh ' 1 i n 0 g

33

The Shirting & Suiting Retail Business is further categorized in groups as (1) Cotton Syndicate (2) Suiting Syndicate (3) CVC Syndicate (4) Core Product Categories
(5) Ready to stitch

The retail business is the fabric business i.e, over the counter business. The business is further carried with the various distribution networks across the country.

Chapter-3:-Analysis of Primary Research

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3.1 MARKETING OBJECTIVE: To find out and analyze the Men’s Wear Category on the basis of Merchandising Mix for making merchandise and assortment plan for the brand “Arvind Intellifabrix” of Arvind Limited.

3.2 RESEARCH OBJECTIVE: •

To find out the potential market of ahmedabad for man’s wear category. To study the Product range available in men’s wear category. To find out the feasible price point in different stores. To study and analyze the available merchandise of the product category.. To study the consumer perception on the basis of 4 R’s of merchandising. To make the merchandise plan and the assortment plan for Arvind’s Ebo’s formats

• • • •

3.3 RESEARCH DESIGN: Descriptive research, exploratory and casual reaserch. 3.4 RESEARCH METHODOLOGY: A. SECONDARY RESEARCH: The aim was to have a through understanding of the current trends in the Indian scenario along with an understanding of the Men’s Wear segment. Apart from that the consumer
35

trends and the changing face of men consumer were also studied. Secondary sources of data were scanned to assist in the study. These included various magazines, journals, internet archives, and research articles carried out by organizations and individuals. B. PRIMARY RESEARCH: This will include visit to all the stores which are prominent, personally. Their merchandise will be analyzed for its Right Price Points, Right Product ,Right place , Right People and Promotion. • Consumer and Retailer Survey using structured questionnaires.

SCOPE: Geographic: The catchment area selected for study was company owned and franchise stores of Arvind and it’s competitors. 3.5 Sample Design: Sampling unit: This unit is constituted of customer visiting the different retail format. Sampling methods used: Non-probability approach. • •
• •

Convenience Sampling Method Quota Sampling Method.. Location of the store Income group of the customers

Criteria of survey

Survey Technique A structured non-disguised questionnaire was used for the purpose of consumer survey.

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Sample size The sample size was 120(Retailor-20, Customer-100). Analysis and Interpretation Analysis was carried out using • • Microsoft Excel SPSS

3.6 Retailers Information

Figure 3.1 Retail Outlet Type

From interviewed all retailers, 75% outlets are owned retail stores, followed by 17 % rented stores and then 8% leased stores. It indicates that all the retailers are doing good and running in profit. All stores are located on the major hot spot locations of the Ahmedabad.

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Figure 3.2 Retail Business Type As it is very clear from the above diagram that 36% retailers are franchised type while next category is of licensed type retailers comprises of 29%.

Table 3.1 General Information about Retailors General S.No. Retail Location Person In- Retail Outlet Charge Outlet Name Type 1 Rangoli Bhuyandev Deepak Own Char Rasta Nanawati 2 Rangoli Vastrapur Lake Deepak Own Next Nanawati 3 Shri Swastic Char Pratik Patel Own Radhe Rasta Krishna 4 Krishna Naranpura Hemal Own Patel 5 Ratnam Shivranjani Jitu Shah Own Charrasta 6 Shalimar Ellisbridge Irfan Own 7 Count C.G. Rakesh Own Down Road,Stadium Kothari Circle 8 V & U Ashram Road Vikram Leased Shah Information Retail Retail store Business type Type Licensed Value Licensed Franchised Value Value Space Since Contect No (in sq ft) 675 1985 9979590059 700 2009 9979590059 800 2001 9428104785 Franchised Experience 900 Franchised Franchised Licensed Value Value Value 550 600 750 1990 9825312272 2000 9825978478 1992 26576999 1995 6449885 07926587282
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Franchised Experience 1300 1985

9 10 11 12 13 14 15 16 17 18 19 20

Tilat Relief Road Babu Bhai Own Franchised Value Amrutha Maninagar Sureshbhai Own Licensed Value Selection Charrsat Patel Decent Thaltej Govind Own Licensed Value Tailors Bhai Decent Paladi Jayesh Bhai Own Licensed Value Tailors Factory Naroda Lal Bhai Own Franchised Flagship Outlet Factory Shantej Lal Bhai Own Franchised Experience Outlet Raymond Shivranjani Digant Rented Company Flagship Charrasta Showroom Vimal C.G. Road Mr Ajay Own Company Flagship Showroom Grasim C.G. Road Abhay Own Franchised Value Shah Birla C.G. Road Rakesh Own Franchised Value Centuary Shah Reid & Taylor Jade Blue C.G. Road C.G. Road Vinod Mehata Vipin Chauhan

550 750 600 700

2002 1995 2000

22138813 30473066 65417140

1998 65417139

3000 1980 1500 1990 5000 2009 9879556533 8000 1990 9909978100 500 600 1999 9824062397 1981 9327024552 22202265 02764255100

Own Franchised Experience 1000 1997 Own Company Flagship 12000 1995 Showroom 9824022777

Table 3.2 Walk-In and Conversion on Different Occasions
Weeekdays AVERAGE SALE/CUSTOMER Weekends AVERAGE SALE/CUSTOMER Seasons AVERAGE SALE/CUSTOMER Festivals AVERAGE SALE/CUSTOMER 1000 1000 39

CONVERSION

WALK-IN

WALK-IN

WALK-IN

Name

1 2

Rangoli Rangoli Next

675 700

12 15

90 90

700 700

16 20

95 90

700 700

19 40

95 90

800 800

26 50

WALK-IN

S. No .

Space

Retailer

95 90

CONVERSION

CONVERSION

CONVERSION

3

Sri Radhe Krishna Krishna Ratnam Shalimar Count Down V&U Tilat Amrutha Selection Decent Tailors Descent Tailor Factory Outlet Factory Outlet Raymond Vimal Grasim Birla Century Reid & Taylor Zade Blue

25 700 900 550 700 750 1300 550 700 600 700 3000 1500 5000 8000 700 600 1000 1200 0 30 15 15 20 30 20 15 20 25 50 30 10 0 20 15 20 80 30

30

600

30

40

600

40

50

800

40

50

800

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

50 90 95 95 50 90 80 50 30 70 50 90 40 80 50 50 90

1200 800 600 600 800 800 1000 1200 600 1500 800 1000 1000 1000 1200 1800 1500

40 25 15 70 50 20 20 25 30 60 50 125 30 20 25 95 40

60 90 95 95 50 90 80 50 40 80 50 90 50 80 50 50 95

1200 900 600 800 800 800 1200 1200 600 1700 800 1200 1500 1200 1200 2000 1500

45 35 50 100 50 50 25 30 40 70 50 130 40 25 30 120 50

60 90 95 95 50 90 80 50 50 80 50 90 60 80 50 70 95

1200 900 900 900 800 1000 1500 1500 800 2000 800 2000 2000 1500 1500 2500 1500

60 40 50 200 60 50 35 40 40 100 60 150 50 35 40 160 60

80 90 95 95 50 90 90 50 50 80 50 90 60 90 50 80 95

1800 1000 900 1000 1000 1200 10000 1800 800 2500 1000 3000 2500 10000 1800 3000 2000

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Figure 3.3 Footfall on Different Occasion There were four different occasions when retailers footfall can be monitored and this way their conversion also.Like footfalls on weekdays, footfalls on weekends, footfalls on seasons,and footfalls on festivals also.Footfalls on last two occasions are always almost same and much higher than normal weekdays and weekends. No doubt people spent much more on festivals and special seasons like wedding or parties etc. Therefore it is very important to deciding timing for the sales promotions. Since during festivals and seasons there is no need of such promotions or at least less can be spend on this scale.

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Figure 3.4 Conversions on Different Occasion During festivals and seasons most of the retailers show that there was almost 90 to 100 % conversion rate. However this rate is not same on normal days. So, off season promotion is required for generating more footfalls and ultimately full conversion also. Only then there seems a true requirement of the full proof strategy for the sound promotional schemes for improving sales and strengthening brand value also. Although promotional activities can be executed throughout the year but their foci may vary even should vary as per requirements and need. 3.7 Demographic profile of the respondents Age, Profession and Yearly Income: Age, profession and yearly income groups distribution of the respondents was carefully monitored so as to have a better representation from age, profession and yearly income categories representing the target segment of the brand. Also the proportion of various age, profession and yearly income group of customers visiting the store in the given market was kept in mind. Figure: 3.5 Age Wise Distribution of The Respondents

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Accordingly, age group between =<30years constitutes only 3% of the total sample size. Age-group above 35 years constitutes almost 85% of the total Figure : 3.6 Profession Wise Distribution Of The Respondents

Highest proportion of the sample constitutes of working profession (53%), keeping in mind the clientele visiting the store. This is followed by business (42%). Figure: 3.7 Yearly Income of the respondents

Almost 65% of the respondents are from the yearly income category of Rs 30,000-60,000

3.8 Brand preference analysis by retailor’s and customer’s perception Figure 3.8 Most Preferred Suiting Brands

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Most preferred suiting brand from retailer’s and customer’s perception are Raymond, Reid & Taylor and vimal

Figure 3.9 Most Preferred Shirting Brand

Most preferred shirting brand from retailer’s and customer’s perception are Arvind, Raymond, Vimal and Birla Century

3.9 Buying Cycle Of The Respondants

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Respondants usually visit for buying in 6 months and functions Figure: 3.10 Time wise buying distribution 3.10 Suit assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception Figure 3.11 Suit assortment analysis by design

Suit :- plain is the most preferred in look and design. 81% customer goes to plain. Stripes is second most like suit among all customer and third choice is Checks. Inferece:- Assortment plan of the suit should be like this graph , have to more value to olain , stripes and checks respectively.

Figure 3.12 Suit Assortment analysis by attributes

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In case of selecting the suit, Quality does matter much than the other attributes. Color. Price and design are secondary but more respective factor for make last buying decision. Figure 3.13 Suit assortment analysis by price range

Most buying range of suit piece is 2000-2800 Rs and 2800-4000 Rs. Customer mostly goes for high range in case of suit, which is showing the money value. 3.11 Shirt assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception Figure 3.14 Shirt assortment analysis by design

Shirt :- Accorading to survey checks, stripes and plain are most preferable in the choice of buying a shirt. White and printed are choice after above one. Assortment plan is done according to the ratio of customer choice.

Figure 3.15 Shirt assortment analysis by attributes

46

In selecting of the shirt the QUALITY, COLOR, DESIGN and PRICE are most valuable factor to make buying decision.

Figure 3.16 Shirt assortment analysis by price range

Generally most preferred buying range of shirt is 500-700 Rs. And second most 200-500. High premium and luxury range customers are 15 and 8 %

3.12 Trouser assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception Figure 3.17 Trouser assortment analysis by design
47

Figure 3.18 Trouser assortment analysis by attributes Trouser :- the choice of trouser is almost same as suit, the plain most like by customer. 95% like plain. And stripes are most favorate in buying of trousers. It contribute 24% part of buying trouser.

Figure 3.19 Trouser assortment analysis by price range Trouser is bottom weight, have quality on first and color, design and price are secondary factor to make final buying decision. This all show that what attributes are most responsible for buying of fabric and making decision.

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3.13 Promotion and Store Location 700-1200 is most preferred buying range. 300-700 and 1200-1800 is second and third most buying range.This all above price range indicate the price planning for merchandise and assortment Figure: 3.20 Critical factor for increasing the sales

Brand name, Discount and offer, Location of store and events & promotion events are most critical factor for selecting a buying destination. Means more focus on these tools will increase the walk-ins as well as sale Figure: 3.21 Promotional attributes

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News paper, TV, and hoardings are most coverable tools for promotional media . These tools of media to promote sale are more effective than other media.

Figure: 3.22 Radio preferences of customer

Radio FM channel : radio mirchi is most listening music station so it cover most customer to advertise the promotion offer.Other FM Chanel are second preferred channel Figure: 3.23 News paper preferences of customer

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TOI is most readable news paper, which will be an easy and economical source of the promotional activities and offer and discount promo.

Figure: 3.24 Accessories buying along with fabric

The most buying accessories along with fabric are perfumes, ties, belt wellet and hanky. This item increase the average sale/customer. It help in walk-ins and ambience and a look of the store. Investment are less but it help in good sale and increase of conversion. Figure3.25 Critical factor to increase the conversion

51

customer liking during buying and working factor to increase the conversion are Free gift, instant discount . Figure: 3.26 Tailoring service

Tailoring :- Tailoring service is most critical factor to increase the walk ins, sale and as well as conversion. Customer prefernce is increasing towards customized tailoring

Figure: 3.27 Feedback from customer

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Retailers are getting feedback via orally method. There is much chances for loyalty program. Which also can increase the conversion and walk-ins

3.14 Payable For Premium Figure: 3.28 Payble for premium

On providing all attributes in a full suit length like finish, feel, design, color, pattern than how much they can pay? 9000-18000 is the price range in which they would like to go. So here we can develop a full suit (shirt and trouser) concept in this price range. 3.15 Reason behind less conversion Figure 3.29 Factor responcible for less conversion

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Reason behind less conversion are price, variety, design,color and quality

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Chapter 4:Assortment Plan and Merchandise Plan for the Brand “Arvind Intellifabrix”

55

Arvind have plan for opening new EBO store for fabric selling. They have plan to open EBO in the form of Flagship , Experience and Value store. The follow tables are showing the planning of merchandise and assortment and daily sale report. And also these follow tables are showing the sales report along with the break even month and breakeven days and year. 4.1 Exclusive brand outlets:Premise:-Location High street with good visibility in a central business district. Facility for parking would be a plus. Size, Frontage: 4.1.1 Flagship store: A flagship store is expected to be on a high street in a major town with a population of >10 lakhs. A fabric only shop would be a single plate 2500 sq ft shop, while a ready-made and fabric shop would be 3500 sq ft in size (preferably single plate). The frontage of a flagship store should be at least 20 - 25 feet in length. 4.1.2 Experience store: An experience store is expected to be on a high street in a large town with a population of 5-10 lakhs. A fabric only shop would be a single plate, 1000 sq ft shop, while a ready-made and fabric shop would be 1750-2000 sq ft (preferably single plate). The frontage of an experience store should be at least 20 feet in length. 4.1.3 Value store: A value store is expected to be on a high street in a small to medium town with a population of 1- 5 lakhs. Any existing shop of >600 sq ft would be considered. In the value store concept, the existing shop would be used as is without any renovations of interiors. Sales of certain other categories (women’s, children) would be allowed.

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Table 4.1EBO planning and Analysis Sheet -For Ahmdabad

57

Table 4.2 EBO planning and Analysis Sheet -For whole country

58

59

The above table is showing the EBO planning. The violet color cell is variables and remaining are calculated data. The above table is developed to calculate the initial cost, operating cost, sales projection and sales per square feet, and to find out the net profit and calculate the breakeven point in days , month and year. The assumption and calculation are done according to below tables. From the above tables, it is inference that the no of store is does not matter to achieve the breakeven point, Average sale and conversion are most critical factor to get breakeven point early. The preparation of the above table have following variable and formula`s. Table 4.3 For assumption ( the assumptions are made on the basis of management discussion and market study) S.N. 1 2 3 4 5 6 7 8 9 10 Assumption Area EBO per state Rent Staff salary Electricity , telephone bill and stationary expenditure Shrinkage Average sale/ day Walk-ins and conversion 1 month Sale mark up Remarks Area is according to kind of store, may vary, according to availability This is depend on city location and necessity according to potential market Rent may vary according to place and location Assumed according to kind of store and space of store These may vary according to place and usage and kind of store Its priflage value in money, is showing kind of losses, Assumption according to market survey Assumed according to market study 28 days (assumed that 2 day is closed in a month, not fixed) 120% of original cost

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Table 4.4 Calculation Table S. N. 1 2 3 4 5 Terms Total Cost (a) Total Space Total cost (b) Conversion Average Sale/month/total store Break even in months Break even in days Net revenue Sale/sq ft i/p merchandise Formula Total investment cost + total Initial cost No of store* space for one store Rent+Intrest+ Bill( Electricity, telephonr, stationary etc) +other cost Walk-ins*conversion ratio Average sale/day*28*no of each store

6 7 8 9 10

Total cost of store opening (a)/Total net revenue earn Break even in moths*28 ( 28 working days in a month) Total sale - total cost(b) – per month merchandise i/p cost Total sale/ total space available Sale/2.2

4.2 Merchandise and assortment planning : The merchandise and assortment planning of Flagship, experience and value store is done on the basis of primary research. By the market retailer and customers survey. The planning is given according to customer and retailers preference and buying power. The merchandise planning is divided in ratio according to retailers optimum value of merchandise and fabric assortment planning is done on the basis of fabric attributes. To make the optimum availability and to make maximum merchandise availability . The calculation is done on the basis of percentage of total no. and the ratio divided among the merchandise Shirt, Trouser, bottom weights, readymade and accessories. The below tables are showing the items ratio in percentage. Table 4.8 Merchandising planning in terms of quantity for flagship store
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FLAGSHIP 2500 SQ FT MERCHANDISE 25000 Nos MERCHANDISE%MERCHANDISE PIECES SHIRT 26 6500 TROUSER 30 7500 SUIT 22 5500 READYMADE 18 4500 ACCESSORIES 4 1000 TOTAL 100 25000 SHIRT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL 26 24 12 14 24 24 2 100 6500 TROUSER 1560 PLAIN 780 WHITE 910 PRINTED 1560 STRIPES 1560 CHECKS 130 EMBROIDERY 6500 TOTAL 30 76 2 1 19 2 0 100 7500 5700 150 75 1425 150 0 7500

SUIT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL

22 72 2 2 15 5 4 100

5500 ACCESSORIES 3960 TIES 110 HANKY 110 TIEPIN 825 SHOCKS 275 BELT 220 SUIT PIN 5500 PERFUME WELLET TOTAL

4 15 4 3 17 4 15 17 25 100

1000 150 40 30 170 40 150 170 0 750

Table 4.9 Merchandising planning in terms of quantity for experience store

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EXPERIENCE 1000SQ FT MERCHANDISE 0 Nos MERCHANDISEMERCHANDISE % PIECES SHIRT 34 0 TROUSER 36 0 SUIT 30 0 READYMADE 0 0 ACCESSORIES 0 0 TOTAL 100 0 SHIRT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL 34 24 12 14 24 24 2 100 0 TROUSER 0 PLAIN 0 WHITE 0 PRINTED 0 STRIPES 0 CHECKS 0 EMBROIDERY 0 TOTAL 36 76 2 1 19 2 0 100 0 0 0 0 0 0 0 0

SUIT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL

30 72 2 2 15 5 4 100

0 ACCESSORIES 0 TIES 0 HANKY 0 TIE PIN 0 SHOCKS 0 BELT 0 SUIT PIN 0 PERFUME WELLET TOTAL

0 15 4 3 17 4 15 17 25 100

0 0 0 0 0 0 0 0 0 0

Table 4.10 Merchandising planning in terms of quantity for value store

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VALUE 400SQ FT MERCHANDISE 0 Nos MERCHANDISE %MERCHANDISE PIECES SHIRT 34 0 TROUSER 36 0 SUIT 30 0 READYMADE 0 0 ACCESSORIES 0 0 TOTAL 100 0 SHIRT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL 34 24 12 14 24 24 2 100 0 TROUSER 0 PLAIN 0 WHITE 0 PRINTED 0 STRIPES 0 CHECKS 0 EMBROIDERY 0 TOTAL 36 76 2 1 19 2 0 100 0 0 0 0 0 0 0 0

SUIT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL

30 72 2 2 15 5 4 100

0 ACCESSORIES 0 TIES 0 HANKY 0 TIE PIN 0 SHOCKS 0 BELT 0 SUIT PIN 0 PERFUME WELLET TOTAL

0 15 4 3 17 4 15 17 25 100

0 0 0 0 0 0 0 0 0 0

Table 4.10 Merchandising planning in terms of money

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MERCHANDISE 0 Rs MERCHANDISE %MONEY SHIRT 16 TROUSER 55 SUIT 29 READYMADE 0 ACCESSORIES 0 TOTAL 100 SHIRT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL SUIT PLAIN WHITE PRINTED STRIPES CHECKS EMBROIDERY TOTAL %MONEY 24 12 14 24 24 2 100 %MONEY 72 2 2 15 5 4 100

Rs 0 0 0 0 0 0 0 TROUSER %MONEY 0 PLAIN 76 0 WHITE 2 0 PRINTED 1 0 STRIPES 19 0 CHECKS 2 0 EMBROIDERY 0 0 TOTAL 100 0 ACCESSORIES %MONEY 0 TIES 15 0 HANKY 4 0 TIE PIN 3 0 SHOCKS 17 0 BELT 4 0 SUIT PIN 15 0 PERFUME 17 WELLET 25 TOTAL 100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4.3 Top View Of Planned Layout:Planned layout of a flagship store is as follows
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Figure 4.1 Top view of planned layout of a flagship store 4.4 Catchment area analysis and store location planning. The catchment area are those area where maximum buying of the same kind of merchandise occure. This analysis is done on the basis of customer survey and destinations of buying occur. The area is on the basis of buying power and buying people and high spot destination in the ahmedabad.. The location of the store are depend on the basis of store type, expected sale/day, walk-ins and conversion and also buying power The location of the flagship, experience and value are as belowFlagship:- CG Road, Law Garden and Iscon Char Rasta,Experience :- Bapunagar, maninagar, Bopal, Sattelite road, Shivranjni Char Rasta, Vastrapur Lake, Gurukul, Thaltej, Drive-in Road, Sola, Ashram Road income tax, Ashram Road Ellise bridge, Relief Road, 10 Acer mall Raipur, and Chandkhera.,Value store:- CTM, Bapunagar, Shahibaugh, Relief Road-2,Raipur, Naranpura, gurukul, satellite, Paldi, Ashram road, Chandkhera, Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road etc.In the below Ahmedabad map the location of the Flagship, Experience and Value store are shown by Red, Green and violet respectively.

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Figure 4.2 Catchment area analysis

Conclusion
 Ahmedabad’s fabric market potential is 28 million mtr per year.

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Most preferred shirting brands from retailer’s and customer’s perception are Arvind, Raymond, Vimal and Birla Century. Most preferred suiting brands are Raymond, Reid & Taylor and vimal

Quality, Color and Price are most critical factor of final buying decision

 News papers and hoardings are most useful tool for advertisement.  Instant Discount and Free Gifts are best factor to increase conversion.  In

coming

future

customer

tendency

will

get

changed

to

stitch

with

retailer/customized tailor  Top 4 critical factor of choosing shopping destination of potential customer are discount & offer, Brand name, Events & Promotion and Location of the store
 Ahmdabad potential customers like TOI in newspaper and Radio Mirchi in Radio

FM , which are best method of promotional media  Price, color and variety are most 3 respective reason behind the less conversion  Main buying destination of fabric buying in Ahmedabad are C.G. Road, Ashram Road and Relief road  The best locations for open Flagship store are may be CG Road, Law garden and Iscon Char Rasta.
 The best locations for open Experience Vastrapur Lake, Bapunagar, Maninagar,

Bopal, Sattelite road, Shivranjni Char Rasta, Gurukul, Thaltej, Drive-in Road, Sola, Ashram Road Income tax, Ashram Road Ellise Bridge, and Chandkhera
 The best location for open Value Store relief Road CTM, Bapunagar, Shahibaugh,

Relief Road, Raipur, Naranpura, Gurukul, Satellite, Ashram road, Chandkhera, Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road  Perfumes, Ties and wallet are most preferable accessories with buying fabric.
 Sale per square feet of Flagship, Experience and Value store are 1209, 1008 and 1134

Rs. Respectively for Ahmadabad
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Suggestions
As per study the suggestions for opening the Ebo’s (Flagship, experience and value) are as follows -The location of the flagship, experience and value areFlagship:- CG Road, Law Garden and Iscon Char Rasta Experience :- Bapunagar, maninagar, Bopal, Sattelite road, Shivranjni Char Rasta, Vastrapur Lake, Gurukul, Thaltej, Drive-in Road, Sola, Ashram Road income tax, Ashram Road Ellise bridge, Relief Road, 10 Acer mall Raipur, and Chandkhera. Value store:- CTM, Bapunagar, Shahibaugh, Relief Road-2,Raipur, Naranpura, gurukul, satellite, Paldi, Ashram road, Chandkhera, Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road etc Proper timely meeting with retailers which are not satisfied with the management of the company,by which retailor’s margin w.r.t wholesaler’s margin.

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Bibliography
Books  Piyush Kumar Sinha, Dwarika Prasad Uniyal, “Managing Retailing, 2007, Oxford University press, Second impression  David Gilbert, “Retail marketing management”, 2006, Dorling Kindersley (India), Second Edition  Jay Diamond, Gerald Pintel, “Retail Buying”, 1993, Regent/Prentice hall, Fourth Edition  Suja Nair, “Retail Management”, 2008, Himalaya publishing house, Third edition  Jerney A. Rosenau, David L.Wilson, “Apparel Merchandising”, 2006, Fairchild Publishing Inc. New York , Second Edition  Barry Berman, Joel R Evan, “Retail management a strategic approach”, Prentice Hall, Eighth Edition  J.N.Jain, P.P.Singh, “Morden retail management principal and technique”, 2007, Regal Publication  Michael Levy, Barton A. Weitz, “Retailing Management”, 1998, Irwin mcgraw hill Journals  Images retail magazine,oct’07, Vol 6 No 10  Images retail-recent mergers, acquisitions, expansion of export houses, labels  Retail biz, Feb 2, 2007  Inside Fashion, Vol 7 No 7  Apparel Online,Nov1-15’07  Fashion technology magazine, Oct 5, Vol 3 Newspaper  The economic times  Business standard  The Indian express  The times of india

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Website  Www.ksa–technopak.com
 Www.3isite.com

 Www.economywatch.com
 Www.retailyatra.com  Www.grokker.com

 Www.fibre2fashion.com
 Www.indiastockmarket.com  Www.ensusindia.net  Www.market_research.com  Www.ficci.org  Www.eretailbiz.com  Www.economictimes.com  Www.in.kpmg.com  Www.ibeg.org

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ANNEXURE
Declaration: _____________________________________________________________________. We are conducting a survey through this questionnaire about Retailer’s preferences for their customer. We would highly appreciate, if you could spare few minutes in completing this questionnaire. We hereby declare that all the information provided by you will remain confidential, and the information will be used only for our academic project without disclosing any of your personal details.

Retailer’s Questionnaire
Retail Outlet Name: _______________________________Location: ______________________________ Since:___________________Space( Sq Ft):_________________Contact no:________________________ Name & Designation: ___________________________________________________________________ No. of Staff_______Hierachy of Staff___________ ___________ _______________________________  Please according to relation Retail Outlet Type Own Rented Lease Company Showroom Retail Business Type Franchise Licencee Factory Outlet

 Please give price range and rating according to sale in your outlet Rating (1 – 5): 1=most preferred 5=Least preferred Product Shirt Piece Category Luxury Super premium Premium Mid price Economy 200-500 Mass segment 80-200

Price range 1800+ 1000-1800 700-1000 500-700 (min.-max.) Rating Price range 4000+ 2800-4000 2000-2800 1300-2000 Suit (min.-max.) Piece Rating Price range 2500+ 1800-2500 1200-1800 700-1200 Trouser/pent (min.-max.) Piece Rating  Please rank the following attributes according to the customers’ choice purchasing men`s wear Rating (1-5): 1= most important, 5= last important Attributes Shirt Piece T Trouser/pent piece Suit piece Accessories  Please write availability of following merchandise in your outlet : Color Price Design Feel Quality P

800-1300

400-800

300-700

150-300

while they come for

Pattern

Finish

Comfort

72

Suit Piece

Shirt Piece

Bottom

Readymade

Accessories

Total 100%

 Please provide information about following terms: Week Days Footfall Conversion Ratio Average Selling/customer  Give rating to the below attributes behind short fall less conversion ( Rating : 1-5) Price Color Design Quality Feel Discount /Offer Variety Home Delivery Exchange Policy Tailoring Service Week Ends Seasons Festivals

 Generally what customers preferred for buying along with Fabric? Accessories Availability Price Range (min.-max.) Ties Hanky Tie pin Shocks Belt Suit pin Perfume Wallet

 What kind of offer you would like on purchasing of fabric Instant Discount Future Discount Trip Movie /Event show tickets Club Membership Loyalty Card

 Buying of Merchandise:

Own

Company

Distributor

 SUITING brand you mostly asked? (Ranked 1-5, 1=Most asked 5 =least asked)
Reid n Taylor Arvind Siyaram Raymonds Vimal Digjam Grasim/Gravera Ashima Century

 SHIRTING brand you mostly asked? (Ranked 1-5, 1=most asked 5 =least asked)
Soktas Monti Morajee Raymonds Vimal Tassuti Arvind Bombay rayon Century Aditya birla Ruby

 Rank the following tools which help to promote sales and thus strengthen brand value according to you. 73

Fresh Arrivals

Adv. in daily News Adv. in TV paper

Adv. in Magzine Discount offer

Gift Vouchers

 What was the impact on sales and customer reactions after the introduction of SIS in your outlet?

Poor

Average

Good

Very Good

 What was the increment of sales after the introduction of SIS activity in your outlet?

10% - 20%

20% - 30%

30% - 40%

40% - 50%

 What percentage of loyal customers you have?

30% - 40%

40% - 50%

50% - 60%

60% - 70%

70% - 80%

 What is the average age group of your customers who visit your store including your loyal customers?

20yrs – 30yrs

30yrs – 40yrs

40yrs – 50yrs

50yrs – 60yrs

a> Above 60yrs

 Do you think that store layout and visual merchandising affect the sales pattern? Please mark ( Yes /No)  What is the most possible reason for not visiting your store of youngsters?------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Which media you use for Advertisement and promotions? ________________________________________________ ________________________ _

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 From which medium you are getting customer feedback? e-mail Feedback form Orally Loyalty program Telephonic interview Others*

If other, Please specify______________________________________________________________________  What do you do for better Customer relationship? ___________________ _______________ _____ _________________________________________ ___________________________________________  If there any complain about customer service if yes

mention-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Is there enough parking spaces for customers near to your store? Please mark (Yes/ No)

 Do you think having a tailoring shop next to or within your outlet will improve the sale (or is improving the sale) Please mark (Yes/ No)  Do you think that an extra effort of better sewing services as trendy designs with intelligent cuts focusing customized services will improve sale of your outlet? Please mark (Yes/ No) if yes what %age of the existing customers will be ready to pay extra for the additional given facilities for better look (cuts and designs)?  10– 20 % 20 – 30 % 30 – 40 % 40 – 50 %

 On the basis of your past experience with in business, rate the following attributes on a scale of five where 1 is for least satisfaction and 5 is for high satisfaction.
Supply Chain Customer Relation Well Communication Tranceperancy in Business Sincere Consideration Full Involvement for Feedback Execution

THANK YOU

Survey Questionnaire
Declaration: ________________________________________________________________________________________ conducting a survey through this questionnaire about consumer’s preferences for their fabric category. We would highly appreciate, if you could spare few minutes in completing this questionnaire. We hereby 75 declare that all the information provided by you will remain confidential, and the information will be used only for our academic project without disclosing any of your personal details.

Name _____________________________________Sex (M / F ) & Location___________________  Demographic classification Age group Income Group Occupation Up to 30 Up to 10K 30-35 10-20K 35-40 20-30K 40-45 30-40K 45-50 40-50K 50-55 50-60K 55+ 60K+

Student

Own Business

Private Job

Govt. Job

Retired

House wife

 How many times you buy the Fabric Every 3 months Once in 6 months Once in a year Season to season On each festival Functions

SUITING brand you mostly asked? (Ranked 1-5, 1=Most asked 5 =least asked)
Arvind Siyaram Raymonds Vimal Digjam Grasim/Gravera Ashima Century

Reid n Taylor

 SHIRTING brand you mostly asked? (Ranked 1-5, 1=most asked 5 =last asked)
Soktas Monti Morajee Raymonds Vimal Tassuti Arvind Bombay rayon century Aditya birla Ruby

 Rank the following attributes while purchasing men`s wear Rating(1-5) : 1= most important 5= last important Attributes Color Price Design Feel Quality Pattern Finish Comfort

76

Shirt Piece Trouser/pent piece Suit piece Accessories

 Please mark the preferable price range in the given scale SHIRTS

80-200 SUITS

200-500

500-700

700-1000

1000-1800

1800+

400-800 TROUSERS

800-1300

1300-2000

2000-2800

2800-4000

4000+

150-300

300-700

700-1200

1200-1800

1800-2500

2500+

 What you like mostly in fabric Plain White Suit Shirt Trouser/pent

Printed

Stripes

Checks

Embroidery

 Generally what you preferred for buying along with Fabric Ties Hanky Tie Pin Shocks Belt Suit pin Perfume Wallet

 Where are you stitching right now?  Where would you like to stitch in future?

Own Tailor Own Tailor

Retailer Retailer

 What kind of offer you would like on purchasing of fabric Instant Discount Future Discount Trip Movie ticket Club Membership Free gift

 Have you did exchange ever ( yes / no) what was the reasons? Please tick the option 77

Color

Design defect

Family opinioin

Color Bleeding

Shrinkage

Poor Washing

Stitching defect

Catalogue

 What is the source of your knowledge of various sales promotions? Magazine Internet NewsPaper Radio TV Relatives Banners/Hoardings

 What is the single most critical factor in selecting a store for shopping Events and Promotions Location of the store Ambience Everything under one roof Exchange Policy Customer Service Discounts and Offers Parking Space Brand name

 Your choice of FM and News Paper Radio Mirchi FM Channel Red Radio My FM City FM NEWS Paper TOI ET GUJ. SMCHR BHSKR Sandesh Hind u OTHRS

 Which Area in Ahmedabad you most preferred for fabric buying? ___________________  For super premium fabric (fabric which is very rich in quality, comfort, design, feel and touch) average amount you can spent at once? 3000-6000 6000-9000 9000-12000 12000-15000 15000-18000 18000 & above

THANK YOU

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