_________________________________________________________

Chapter ONE
-----------------------------
Introductory Part
__________________________________________________________

Page | 1
Page | 2
1.1 Origin of the study

In Bangladesh, the future of garment industries is brighter in the era of

globalization .Ultra modern technology are being used in the woven and knit
garment industries in the outside world other than Bangladesh. To survive in
the free market of the world, we have to use world standard latest technology
in our readymade garment sector .The report will mainly focus on the
“Merchandising department” in Jamuna Garments Ltd. The proposed study
will cover the appraisal, practice, procedures and techniques followed by the
merchandising department in the preparation of order to shipment in Jamuna
Garments Ltd.

The ready-made garment (RMG) industry of Bangladesh started in the late

1970s and became a prominent player in the economy within a short period
of time. The industry Bangladesh is an under developing country. The
development and progress of the country largely depends on Export
performance. In case of Bangladesh, among the Export Sectors, the ready-
made garments (RMG) are the main earning source of foreign currency. In
the garment and Textile industry, merchandisers have been playing a vital
role for the execution of export orders. There are large numbers of
merchandising personnel who are working in the garment and textile sector.

Page | 3
1.2 Rationale of the study

Internship program is a practical knowledge of any student .An intern

student can acquire some practical knowledge and provide his/her future life
, In this type of work student can know the different people of the society ,
know how to provide service to existing customers and the new customers
and learn how to adjust to the world class environment of the Garment,
which will bring success for the future life .Garments department is the
department by which one student can acquire knowledge about the overall
Garments system of the Garments within a very short period of time.

1.3 Scope of the study

As a student of Marketing, as a potential marketing executive, it is very

much necessary for me to know about the national and international
marketing. I have been assigned in

Jamuna Garments Ltd. A garments industry. I have worked in factory and

head office thus paved me the way to get myself familiarized with the
official and factory environment in a garments industry for the first time.

Page | 4
1.4 Objectives of the study:

The key objectives of report are as follows:

1) To gain knowledge about production activities related to

Merchandising of RMG industry

2) To know about the activities which are related to set up the

final price for the buyers of RMG.

1.5 Methodology of the study

Every research program should follow some basic form of procedures. To

complete this report at first I try to acquire a clear theoretical knowledge on
garments industry. I study various books of different writers regarding the
topic. This type of study helps me to acquire knowledge on an overview of
garments industry. However mainly this report is written on the basis of
experience gathered during the period of Internship. I carefully observed the
various activities of different department, especially merchandising activities
of Jamuna Garments Ltd. A qualitative research is used to conduct this
study.

In order to make the report more meaningful and presentable two sources of
data and information have been used widely. Both primary and secondary
data have been used to prepare the report.

Page | 5
Data collection process:

Primary Source:

 The Source of primary data were:

 Practical experience.
 Time to time discussion with the merchandising of Jamuna Garments
Ltd.

Secondary source:

 The Secondary Source of data and information are:

 Monthly report of Jamuna Garments Ltd.
 Various books, articles regarding merchandising activities of RMG.

Page | 6
Chapter- Two: Literature Review

Page | 7
2.1 Definition Of merchandising

The main role of garments merchandising is to collect export order (export L/C), produce
the garments, export the garments and earn profit, to perform those functions successfully
needs lot of knowledge, experience &tremendous effort a merchandiser.

(Source:http://www.businessdictionary.com/definition/merchandising.html#ixzz26HB4BQ
TE)

2.2 Definition of merchandising

The “Merchandising”

is known to the persons specially involved in garments trade.The team has been derived
from the merchandise. Merchandies means goods that are bought & sold. The team
“Merchandising” may be defined as: person who merchandising the goods, specifically
for export purpose. Garments merchandises means buying raw material & accessories,
producing garments, maintaining required quality level and expecting the within schedule
time.

(Source:http://www.businessdictionary.com/definition/merchandising.html#ixzz26HB4BQ
TE)

2.3 Letter of credit(L\C):

A written commitment to pay, by a buyer’s or import’s bank(called the issuing bank)to

the seller’s or exporter’s bank).

(Source::http//WWW.businessdictionary.com/definition/letter-of-credit-L-
C.html#ixzz26HBpzaq7)

Page | 8
2.4 Cost of marketing goods(CM):

CM means cost of cutting to making. It includes the cost of cutting, cost of sewing and
the cost of packing. It also includes the overhead cost of the plant and the profit margin.
Generally CM per dozen of a basis-T-Shirt is$5.00

(Source::WWW.investorwords.com/1158/cost_of_Goods_Sold.html)

2.5 FOB (Free On Board):

FOB is an initialize which pertains to the shipping of goods. Depending on specific usage,
it may stand for Free On Board or Freight On Board.FOB specifies which party (buyer or
seller)pays for which shipment and loading costs, and/or where responsibility for good of
transferred. the last distinction is important for determining liability for goods lost or
damaged in transit from the seller to the buyer.

(Source:www.wikicfo.com/wiki/Freiqht-on-Board-FOB.ashx)

2.5 C&F(Cost & Freight):

A Trade term requiring the seller to arrange to the carriage of goods by sea to a port of
destination, and provide the buyer with the documents necessary to obtain the goods from
the carrier. Under CFR, The seller does not have to procure marine insurance against the
risk of loss or damage to the goods during transit.

(Source:WWW.businssdictionary.com/definition/cost-and-freight-c-F.html)

Page | 9
2.6 CIF(Cost, Insurance & Freight):

A trade term requiring the seller to arrange for the carriage of goods by sea to a port of
destination, and provide the buyer with the documents necessary to obtain the goods from
the carrier.

(Source:WWW.cargotransport.com.au/incoterms/cif-cost-insurance-and-freight/)

2.7 (QC)Quality control:

Quality means customer needs is to be satisfied. Failure to maintain an adequate quality

standard can therefore be unsuccessful. But maintaining an adequate standard quality also
costs effort. From the first investigation to find out what the potential customer for a new
product really wants, through the processes of design, specification, controlled
manufacture and sale.

(Source: W WW.textilesindepth.com/index. Php? page=overview- qualitycontrol)

2.8 Invoice:

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the
products, quantities, and agreed prices for products or services the seller has provide the
buyer. An invoice indicates the sale transaction only Payment terms are independent of
the invoice and are negotiated by the buyer and the seller. Payment terms are usually
included on the invoice. The Buyer could have already paid for the products or services
listed on the invoice. Buyer can also have a maximum number of days in which to pay for
these goods and is sometime offered a discount if paid before the due date.

(Source::http:/WWW.investopedia.com/terms/i/invoice.asp#xzz6HLSMH1d)

Page | 10
Chapter – Three: An Overview of
Jamuna Garments Ltd

Page | 11
3.1 History:

Jamuna Garments Ltd is a 100% export oriented Garments industry in the private sector.
Carrying out import manufacturing & export of garments since between 1400-1500
working people depending on the volume and co June 2004 a Milk Vita Road,Mirpur-
7,Dhaka-1216.
Deposit facing sorts of social and market difficulties. Jamuna Garments Ltd receiving
market acceptance When initiated operation, Commercial relationship have been
consolidating with the reputed buyers. Jamuna Garments Ltd has employed insistency of
orders. Jamuna Garments guarantees fair business practice while offering quality
products-gives it a distinct market advantage. The factory distinguishes itself from the
majority of its competitors; factories that base their production model on keeping product
costs as low as possible.
Jamuna Garments has received wide support and there is increasing interest among
buyers who want to purchase and distribute products made by Jamuna Garments.

3.2 Mission Statement:

To produce Top-Quality Garments that model fair business practice and respects workers’
right.

3.3 Goal:

Firmly establish Jamuna Garments Ltd as a factory that is capable of handing any
complete package of garments manufacturing. This production would include multi-style
options, quality products and on-time delivery with competitive price.

3.4 Objective of the present plan:

Implement the production capacity that places 5,00,000 price of Garments per month n
Europe.

Activities:

Jamuna Garments Ltd mainly dealing items, as per the commercial rules in Bangladesh
corresponds to a tax in customs (15%). Concerning the woven sampling we have a

Page | 12
sample section in house with pattern master and 2 swing operators to make the woven
collection make sure that the style will corresponding exactly to request of the buyer.

3.5 Function Of Jamuna Garments Ltd:

Al the function of Jamuna Garments Ltd are operated under three departments. These
are:-

Merchandising Department.

 Commercial Department
 Quality Department.
 Account Department.
 H.R Department.

Merchandising Department:

Merchandising department the very important is department of the RMG Sector. In

Jamuna Garments Ltd the merchandising performs different functions like, negotiation
with buyers, costing, provide L/C, Sample design, negotiation with suppliers, production
follow up, and finally delivery the order timely.

This department is very much responsible time management with quality product.
production planning is also another function of a merchandiser.

3.6 Quality Control Department:

Quality Control that’s mean production control is the most important function of
garments production. It is highly related to satisfy the buyer. Rising Apparels is very
popular on this perspective To control the merchandiser gives the authority to the
production manager. A Strong team work under the PM.A line chief and few
supervisors control each line and provide instruction. Here the quality controller
supervisors the manufacturing process to maintain the quality. Under the QC there
are some quality inspectors to check the production within each line. After Washing
the garments are checked in the finishing department. We have a separate pattern and
sample section .After getting query the entire sample are made from this department
as per buyer’s specification.

Page | 13
3.7 SWOT Analysis of the Jamuna Garments Ltd:

Every Organization is composed of some internal strengths and weakness and also
has some external opportunies and threats in its whole life cycle. SWOT analysis
of Jamuna Garments Ltd is narrated below:

3.8 Strengths:

 Most of buyer related to the Jamuna Garments Ltd are generally fixed &
Commend.
 Good networking with yarn supplies and also fabric users in the cluster.
 Experience in successfully working with quality and delivery conscious
exporters.
 Superior Customer Relationship Management with buyer.
 Ability to law volume customized products.

3.9 Weakness:

 Inadequate information on Garment trends.

 Engaged with some fixed buyer.

3.10 Opportunity:

 Networking with buying houses and import promotion agencies abroad.

3.11 Threats:

 Increased competition from other countries like India, Pakistan, China and
Vietnam.
 Introduction of non-tariff buyers by importing nations.

Product of Jamuna Garments Ltd:

Page | 14
We offer to our clients a fabulous collection of knitted and custom Wears for
men’s women’s, boys, girls and kids. Our product features and attributes include:
Designs of our product, color combination, shrinkage, dimensions, uniformity,
Textile, Dyeing & knitting.

We are specialized in providing customized to our client’s and offer the most
compelling amalgamation of choice, worth, service and convenience. Our export
design textile keeping in mind the latest trend and style that suits the requirements
and preferences of our esteemed clients. we offer customization to our client’ in
terms of:

Perfect quality of production, Accessories, Fabrics, Designs, Size, print, color

combinations, Embroideries. Our Knowledge and commitment has made us a
multi product company with clients all over the world. We work hard to address
the expectations of our customer in any innovative way. Our company tries to
maintain long lasting relation with our client’s and ensures serving best to them on
the basis of following parameters: High production facility, competent team,
sound infrastructure and machines, on time delivery, Wide client network,
Exclusive packing, customization.

Page | 15
3.12 Background of Jamuna Garments Ltd.
Jamuna Garments Ltd established in the year 1988, the quality standards and is engaged
in manufacturing of all kinds of knitted garments. Under the profound guidance of our
mentor Mr. Babul Ahamed, our company has gained an immense success and has earned
goodwill with nineteen years of experience in the garments industries. The Chairman is
guiding our team with his wide experience and skill. We came a long way; always try to
keep of buyers from around the world. I think the boundless efforts will always keep
Jamuna Garments Ltd as a unique name in the Garments Sphere. The group has a team of
dedicated professional workers who are earnestly sincere and careful about their
responsibility to produce quality Garments products.
Knitting Dyeing Garments

Having transferred and

acquired up-to-date Jamuna Garments Dying House
In turn helping to make a
German and Japanese is relatively advanced in
decisive step towards having
knitting technology, and acquiring and using modern
the fully vertical structure of
having developed modern technology and work techniques.
textile industry. This step
production techniques, The dying section is witnessing
enabled the company to have
Jamuna Garments is now non-stop modernization in a
better hold of controlling
able to design process quest to be in line with market
time and quality to produce
and export all kinds of requirements and needs in terms
garments for export having a
fabrics. We can of quality, speed and flexibility.
very strong competitive
manufacture to any
advantage regarding quality,
specifications set by
delivery deadlines, and
customers irrespective of
economical production costs.
quantity of order.

Page | 16
3.13 Objectives of Jamuna Garments Ltd.

Jamuna Garments Ltd. objective is to meet the needs and wishes of our buyers while
maintaining and improving quality Jamuna Garment Ltd, is fully aware of their
responsibilities to their customers, our employee, to the community, the society, the
nation and the environment. Jamuna Garments Ltd, is taking all steps to ensure that their
factories are-

 Compliant with social standards stipulated in Bangladesh.

 Safety and health precautions are fully looked into.
 Local environment standards are met.
 Dignity of labor and human rights are upheld.

3.14 Corporate Vision

Each of Jamuna Garments Ltd, activities must benefit and add value to the common
wealth our society as well as our country. Jamuna Garments Ltd, stands behind their
garments products with quality assurance Jamuna Garments Ltd, believes quality is never
an accident. It is always the result of high intention, sincere effort, intelligent direction
and skilful execution to provide customers with the most comprehensive sourcing,
production, design & product development service, guaranteeing quality, competitive
pricing & quick turnaround times with a world class professional personalized service.

3.15 Corporate Mission

Jamuna Garments Ltd ,mission is to be the market leader, in providing clothing from
Bangladesh to our customers around the globe to be a market leader we are committed to
develop high quality, sophisticated and deviation-free products in our capacity and make
on time delivery to our customers. Building a marketing led enterprise with motivated
work force, innovative vision, and strong revenue based product, consumers’ satisfaction

and understanding of global market.

Page | 17
3.16 Corporate Goal

Jamuna Garments Ltd has taken necessary steps to face the challenges considering the
competition after elimination of quotas restriction trade between World Trade
Organization (WTO) member Jamuna s especially from china, Taiwan, India, South
Korea Jamuna Garments Ltd, sensed this threat and set its strategy according. Over the
year, it has positioned itself as a one-stop shop for an array of fabric & garment meeting
the quality and delivery requirements of the world’s most renowned brands and retailers.
Today the strength of Jamuna Garments Ltd, knit lies in its state of the art integrated
facility from yarn to apparel, low cost operation due to cheap labor which evokes a very
good image of the products at any world class

Page | 18
3.17 Organ gram of Jamuna Garments Ltd
Chairman

Managing director

Director

GM

AGM

PM

Manager

Cutting In charge Sewing In charge Finishing In charge

Cutting Supervisor Cutting Supervisor Cutting Supervisor

Operators Operators Operators

Helpers Helpers Helpers

Page | 19
 Chapter- Four
Merchandising Activities of Jamuna
Garments Ltd

Page | 20
4.1 Different functional department of Jamuna Garments Ltd.
In Jamuna Garments Ltd. there are two types of department, one is departments in factory
and another one is departments in office.
Department in Factory
I. Fabric Inspection Department
II. Store Department (General store, Fabric store)
III. Cutting Department
IV. Sample Department
V. Work-Study Department
VI. Sewing Department
VII. Iron & Finishing Department
VIII. Quality Control Department
Department in Office
I. Merchandising Department
II. Commercial Department
III. Accounts Department
IV. Finance Department
V. Human Resource Department
VI.IT Department

Among all the department of Jamuna Garments Ltd. I have determined for the study on
Merchandising Department.

4.2 Introduction of Merchandising:

The “Merchandising” is known to the persons specially involved in garments trade. The
term merchandising has been derived from the ‘merchandise”. Merchandise
means buying and selling huge amounts of goods. The term “MERCHANDISING” may
be defined as Person who merchandises the goods, specifically for export purposes.
Garments merchandising means buying raw materials &accessories, producing garments,
maintaining required quality level and exporting the garments within scheduled time.

Page | 21
4.3 Need of merchandiser
The position "Merchandiser" is playing a vital role in the RMG sector today.
Merchandiser is the person who handles around 75% of the cost related to the garment
&the production cost is only be almost about 25% of the garment. There by the role
of Merchandiser in the apparel sector plays the most responsible part mainly for the
financial benefit of the Company. The Merchandiser's small mistake will affect 75%
of income of the order which will leads to a big disaster. This has to be understood by the
Merchandisers seriously.

4.4 Responsibility of merchandiser

Now days, major companies are adopting merchandising concepts, which comply with
all procedures to execute and dispatch the shipment on time, considering quality, cost and
time. Merchandisers are serious in the success of any garment retail business.
They provide the right products at the right time, enabling a company to match with latest
market trends and meet the market demand. In the merchandising concept, time
management is a gig to manage one's time properly, so he can focus on value adding
actions. Today's garment merchandisers have to move with frequent changes in demand
and the developing technologies utilized in manufacturing and production. To find out
customer requirements, they regularly visit retail outlets, and come up with latest updates
from frontline staff. In order to keep an eye on developments in sourcing, site visits are
made every week to mainland factories to meet suppliers and study production. In
garment merchandising, there is no specific rule, so it's important to be able to think on
one's feet. The main procedures of merchandisers are as followed:

Understanding Sample Order

Merchandiser has to understand the buyer's requirements after receiving specification in
the sample order. In many cases, there are modifications pertaining to the specifications
in the order to dispatch on time and the right quality. He has to talk with the in-house
veterans on the execution problems of sample orders, as the right information is required
in decision making.
Managing order route card and production timetable

Page | 22
Merchandiser has to manage every single production schedule and order route card that
helps to follow-up the execution in the planned way. It is expected to be acknowledged
of the various descriptions like: design, no. of modules, and no. of operators, how
many processes, and date of dispatch, quantity, output capacity, and deadlines in the
schedules. The sub-ordinates are normally assigned to follow-up with execution of the
plan. Merchandiser plans the activities depending on the essentials or non-essentials, and
top priority are given to the most essential tasks. This is customary that the essential
activities are handled personally or with the support of junior merchandisers/sub-
ordinates. In a "daily schedule", merchandiser has to carry-out and categorize which is the
most significant and urgent task. The activity that has to be focused with full attention to
sweep-off non-essential activities and have to be to be corrected by prioritizing to meet
the deadlines.

Using route card to reschedule activities

To get updated on the current status on the order, the route cards should be utilized. The
latest status can be fed into the computers. In case, the buyer ask for the goods prior to the
deadline, then merchandiser has to reorganize the schedules to accomplish tasks, Output
capacity, no. of pieces to be produced daily, substitute arrangements, time availability,
supply time, scheduling critical ratio, etc.

Submitting pre-production samples

The pre-production samples should be provided on time to the concerned buyers. Quality
of the sample must be verified. If required, revised samples should be made available to
the buyers. Merchandiser should adjust to the required changes demanded by the buyer.
The execution of bulk orders should be made only after samples are approved by
the buyer. In-process inspection denote between any tasks in order-execution. In case of
non-conformation, it is better to focus on the concerns of quality. Merchandisers that
work on complete orders have to check deviation to the production teams so that any
amendments can be done to avoid the non-conformities.

Page | 23
Solving shortage problem
The merchandiser should know about the dearth of any commodity such as fabric, yarn,
etc. From the beginning actions should be taken immediately to arrange required
materials, after discovering the shortage. It is expected that the merchandisers should
verify quality of the goods prior to execution of the order. If the material is found
unavailable, the superior should be informed about the concern.
Communicating with associated people and buyer
It is essential to communicate with the buyers regarding the order. It is expected to give
some time to the buyer to read the sent messages. Merchandiser should to go through
themes sages received from the buyer and reply on time. In many cases, merchandisers
have to provide order status to the buyers. Also, merchandiser has to communicate with
the people that are in-house, venders, contractors and job-workers. Only through the right
communication can one meet deadline for the concerned orders.

Concluder remark on merchandising:

Apart from the above mention procedures, merchandiser has to assign subordinates to
help him in the order execution, and direct the procedures. He has to revise his knowledge
from time-to-time to know current market trends. To record preferences for all the
planned activities, use daily or time log systems. The Merchandiser should find out exact
reasons for time consumption. It is necessary to keep record of time value and keeping it
safe, as it is going to be shared with concerned parties/buyers. It is certain that
merchandising jobs need huge time planning.

4.5 Chronological process of merchandising

(A).Salesman Samples, Counter Samples, Approval Samples, Photo Samples,

Preproduction Samples, Production Samples, Shipping Samples.

(B). Swatch and Trims, Trim’s related Affairs, Communication in international Business.
Sample: Reference garment corresponds to -

 The artwork (styling) done by designer and/ or developer

 Particular purchase order

Page | 24
  Any revision to the style work
 Confirm with any specific requirement etc.

4.6 Sequence of sample

Name of Sampling-
 1st Pattern
 2nd Pattern
 Counter Sample
 Sales Man Sample
 PHOTO Sample
 Approval Sample (Size Set, Mock-up)
 Pre-production Sample
 Production Sample
 Shipping Sample

First pattern
First physical version of any garment as per the artwork is done by designer or developer.
HUMAN MIND > SKETCH > PAPER PATTERN > SAMPLE Purpose: See the
DESIGN work & test the FITTING Status: Nothing specific Material: Available Price:
Not conformed Quantity: 1 (for customer) + 1 (for Merchandiser)

Second pattern
Usually designer/ developer always ask for some changes to the first pattern.
Second pattern is made as per comments.

Page | 25
Counter sample
Where first pattern is made on designers artwork, Counter sample is to make not on
designer’s artwork, has to follow another sample given by the merchandiser. Purpose: See
the workmanship &test the factory skill Status: Nothing specific Material: Available
Price: Not conformed Quantity: 1 (for customer) + 1 (for self keeping) Delivery: As per
reque

Sales man sample

Sample is made when price is confirmed and orders are on speculation, usually in L size
in all color combinations of expected order. Buyer arranges a meeting with its
customer and records their response on order quantity per color, size etc. and finally place
order to their vendor. Purpose: Sales Meeting by Retailers, Market Appraisal, Demand /
Order forecast Status: Final stage of the order confirmation Material: Actual Price:
Confirmed Quantity: There is minimum quantity per color combination Delivery: Very
important to meet the delivery date.

Photo sample
Samples are made with actual color and material to be worn by the models on the event of
shooting for catalog.
Approval sample
In any discrete period of time, whenever it required any revision in the sample, a news
ample is made (sometimes mock-up is workable too) as per new specification. It is sent to
buyer for his approval of the conformity that- the revision is done correctly.

Size set
In size set, consists of 1 piece from each size for each color combination.
Mock up
Any part of the garment to make for particular purpose, not complete garment.
Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve,
collar, neck etc and some accessories.

Page | 26
Pre-Production sample
When material for bulk production arrived, factory makes a sample with the actual
material and sends to buyer.
Production sample
It is a reference to the buyer that the bulk is being produced as per specification.
Buyer wants to be assured that correct material is sourced and line workmanship confirm
to the quality.

Shipping sample

A sample is kept from every Pre Shipping inspection to be referred, if required, after the
order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is
important.

Swatch
Swatch is a presentation of all the materials is (Fabric & Accessories) used for any
specific style/order. Usually small piece of fabric and each piece of accessories are
attached in board paper in a systematic manner. Swatch is very important for production
line to make the correct construction of a garment and QC department ensures it.
Concerned merchandiser should confirm/approve the swatch.
Trims
Trims cover all the items used in the garment except the basic fabric. There are hundreds
of items used to manufacture the garments, proper selection of trims and its quality are
very important for styling, otherwise the garment may be rejected or returned by the
customers. Following is a part of list that covers some names of the trims:

 Zipper/Fastener

 Sewing Thread

 Main Label

 Flag Label

Page | 27
  Button
 Elastic
 Eyelet
 Tags
 Tag pin
 Plastic clip
 Sticker
 Hanger
 Poly bag
 Scotch tape
 Gum tape
 Photo Board
 Back Board
 Tissue
 Carton. Etc.

4.7 Communication in International Business

 Telephone Conversation.
 Fax/ E-Mail
 Formal Meeting
 Lunch & Dinner

4.8 The information normally gets about an order

 Factory Loading
 Factory Capacity
 Factory History

 Factory Setup Details

 Market Reputation
 Type of Buyers Dealing

Page | 28
4.9 How a merchandiser meet buyer’s requirements

 Merchandiser detail to buyer about factory profile.

 Merchandiser Understand the Order sheet.
 Arrange the all component for order execution.
 Production Tracking.
 Timely Shipment.

4.10 Methods of purchasing raw materials

Here fabric and some related accessories are the main raw materials. They are:

 Lab-Dip
 Approval the Lab-Dip
 Collect price Quotation
 Negotiation
 P.I. Received
 Back to Back L/C transfer
 Delivery Chelan received

Page | 29
4.11 Procedures of imported goods

 Procure of IRC
 Price Inquiry (Quotation )
 P.I. Received and Placing Order
 L/C Opening
 Received Shipping Advice
 Facing Customs
 Closing Transaction

4.12 How does the accepted order is passed on the floor

 Merchandiser searches the scope of knitting machine according to required

Gauge.
 Make production schedule
 Trim & Accessories Card Prepare
 Make well finishing according to buyer requirement in case of – • Labeling•
Zippering• Buttoning• Ironing• Packaging• Cartooning

4.13 How a merchandiser track his/her production

 Follow-up yarn supply in factory
 Knitting follow-up
 Linking follow-up
 Accessories supply
 Finishing follow-up
 Ready for export

Page | 30
 Chapter-Five

Operational Result and SWOT Analysis of

Jamuna Garments Ltd.

Page | 31
5.1 SWOT analysis of Jamuna Garments Ltd.

A SWOT analysis is overall evaluation of the company’s Strength, Weakness,

Opportunities and Threat. Strength and Weakness are internal value creating
(or destroying) factors such as assets, skills or resources etc. And Opportunities and
Threat are external value creating (or destroying) factors a company unable to control.

Strengths
 Considerable Qualified/keen to learn workforce available at low labor charges.
The recommended minimum average wages (which include Traveling Allowance,
House Rent, Medical Allowance, Maternity Benefit, Festival Bonus and Overtime
Benefit) in the units within the Bangladesh Export Processing Zones (BEPZ) are
given as below; on the other hand, outside the BEPZ the wages are about 40%
lower:

 Energy at low price .

 Easily accessible infrastructure like sea road, railroad, river and
air communication.
 Accessibility of fundamental infrastructure, which is about 3 decade old, mainly
established by the Korean, Taiwanese and Hong Kong Chinese industrialists.
 FDI is legally permitted.
 Moderately open Economy, particularly in the Export Promotion Zones .
 GSP under EBA (Everything but Arms) for Least Developed Country applicable
(Duty free to EU).
 Improved GSP advantages under Regional Cumulative.
 Looking forward to Duty Free Excess to US, talks are on, and appear to be on
hopeful track .
 Investment assured under Foreign Private Investment (Promotion and Protection)
Act, 1980 which secures all foreign investments in Bangladesh.
 OPIC's (Overseas Private Investment Corporation, USA) insurance and finance
agendas operable.
 Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA)
under which protection and safety measures are available.

Page | 32
  Adjudication service of the International Centre for the Settlement of Investment
Dispute (ICSID) offered.
 Excellent Tele-communications network of E-mail, Internet, Fax, ISD, and
NWD& Cellular services.
 Weakness of currency against dollar and the condition will persist to help
exporters.
 Convenience of duty free custom bonded w/house.
 Readiness of new units to enhance systems and create infrastructure accordant
with product growth and fast reactions to circumstances.

Weaknesses

 Labor productivity in the RMG sector of Bangladesh is lower than many of its
competitors.

 Bangladeshi workers are not as efficient as those of Hong Kong, South Korea and
some other countries and in most factories, technologies used are not the latest.
 In addition to the fact that the industry is vulnerable because it is highly dependent
on the imported raw materials.
 The infrastructure in the country is deplorably underdeveloped.
 Problems in power supply, transportation and communication create
serious bottlenecks.
 Inadequate port facilities result in frequent port congestion, which delays
shipment.
 All these increase the lead-time to process an order, i.e. the time from the date of
receiving an order to the date of shipment.
 Lack of marketing tactics.
 The country is deficient in creativity.
 Absence of easily on-hand middle management.
 A small number of manufacturing methods.
 Low acquiescence: there is an international pressure group to compel the local
producers and the government to implement social acquiescence. The US GSP
may be cancelled and purchasing from US & EU may decrease significantly.

Page | 33
  M/c advancement is necessary. The machinery required to assess add on a
garment or increase competence are missing in most industries.
 Lack of training organizations for industrial workers, supervisors and managers.
 Autocratic approach of nearly all the investors.
 Fewer process units for textiles and garments.
 Sluggish backward or forward blending procedure.
 Incompetent ports, entry/exit complicated and loading/unloading takes much time.
 Speed money culture.
 Time-consuming custom clearance.
 Unreliable dependability regarding Delivery/QA/Product knowledge.
 Communication gap created by incomplete knowledge of English Subject to
natural calamities.

Opportunities
 EU is willing to establish industry in a big way as an option to china particularly
for knits, including sweaters.
 Bangladesh is included in the Least Developed Countries with which US is
committed to enhance export trade.
 Sweaters are very economical even with china and are the prospect
for Bangladesh.
 If skilled technicians are available to instruct, prearranged garment is an option
because labor and energy cost are inexpensive.
 Foundation garments for Ladies for the FDI promise is significant because both,
the technicians and highly developed machinery are essential for better
competence and output.
 Japan to be observed, as conventionally they purchase handloom textiles, home
furniture and garments. This section can be encouraged and expanded with
continued progress in quality.

Page | 34
Threats
 Electricity facility is not available in Bangladesh to run garments industry
smoothly.
 Infrastructure is not well developed according to buyer requirement.
 Wages structure is not good according to industry of labor. They are deprived
from their normal wages most of the time.
 Gender discrimination is present here.
 Port facility is not modernized. Discharge and upload of ship taking a longtime.
As a result cost increase for both buyer and supplier.
 Unstable political condition is one of the main threats for Bangladesh.
 In the recession of the world economy, order from buyers has declined and price
is also low.
 Transport facility is not so healthy in Bangladesh. As a result garments goods take
a long time to reach in the port.

5.2 Product of Organization

The company is produced and sales its product according to the buyers requirements. At
first, the company searching, finding, dealing, and collecting job contract through the
Internet, face-to-face conversion, brokers and merchandisers. Then, the company
collecting yarn from the local dyeing company & accessories from the local market and
made the product according to the buyers’ requirements. As per buyers demand, products
are varying from buyers to buyers.

Page | 35
Product Range: T-Shirts, Basic T-Shirt, Pique Polo Shirts, Roll Neck T-Shirt, Raglan T-
shirt Cut & Sewn T-Shirt, Knitted Night dress, Tank Top, Long Sleeve Turtle Neck Shirt,
Shorts, Underwear, Panty, Sweet shirt, Rib item, Interlock item, 100% Polyester item,
P/C, CVC, Lycra item, Auto Stripe (Yarn Dyed). Vest. Fleece item etc. for Men's,
Children's, Lady's, Boys, Girls.

Service quality

With an efficient and hard working team we provide the following services:
A) Merchandising: Develop Lab-dips & Accessories, yarn source/arrangements
(including stability, color & light fastness, piling, composition, color matching etc.)
B) Design & sample: Develop salesmen sample, develop new concept in production.

C) Technical & quality control: Our QC team conducts In-Line-Inspection at

every stage of production from raw materials and sampling, to bulk production and
packaging to confirm Client's requirements and Quality Standards and also seeks
approval of pre-production sample as per buyer requirements.

D) Inspection Team: Conduct running inspection, final inspection as per AQL

procedure.

5.3 Price of Organization

Since it is a manufacturing unit of knitwear industry and customers are very much pricing
sensitive, therefore, pricing is the most crucial factor for the company to sustain and
selling its product in the global market. That is why; the company is charged its product’s
price on the basis of its competitor’s price. At first, the company calculates its product
cost on the basis of current input’s cost. Then it adds up a profit margin over the cost.
Then it compares its product price with competitor’s price. If it is competitive, then it is
approved. Otherwise, it will adjust the price, either it reduce its profit or reduce its inputs
cost to reduce the production cost.

The company always tries to reduce its production cost and set up a lower profit margin
to sell its product at a lower price than its competitors. To reduce its production cost it
uses total quality management system and economic scale of production
Page | 36
Competitive pricing

SMKL offers competitive pricing for products in today’s competitive market by

considering the following:

 Operation is based in heart of low production cost country (Bangladesh)

 Has the ability to source and procure raw materials at favorable prices.
 Large scale buying capacity and manufacturing operations create the benefit in
terms of economy.
 Has acknowledgement of local market intelligence. We constantly evaluate
 new factories to procure our products.


5.4 Promotion of Organization

Since the company is an export quality knitwear manufacturer, therefore, it is conducting

its promotion activities –

 Through the Internet based advertisement to influence the foreign buyers.

 Through the BKMEA’s annual publications to influence the home-based
“BUYING HOUSES”.
 Through the merchandisers who are collecting job contracts by dealing
with buyers through Internet communications or face-to-face conversions.
 Through daily Newspapers advertisements to influence home-based
“BUYING HOUSES” and foreign buyers who come in Bangladesh to visit
or buying knitwear product.

5.5 Place of Organization

The company places its product to its ultimate customers through the shipment goods by
the shipping port or airport to the buyers’ country. It distributed it product to customers
through the ship or aircraft. Since the company working by job contract from the buyers,
the company's responsibility only to shipment the goods in due time at the buyers country
at the mentioned seaport or airport.

LIST OF BUYERS

Page | 37
 1. C&A
2. Sainsbury’s, UK
3. M&S Mode
4. Lasha Sports inc. USA
5. V&D
6. KIK, Germany
7. Lidl, Germany
8. Henric Lorenz, Germany
9. Bay City, Germany
10. Donnay, Belgium
11. Madona, Germany
12. Others

5.6 Production system of Jamuna Garments Ltd.

Production system differs depending on the type of the product or service. The production
system of the new venture is as follows:

PRODUCTION OUTPUTS
TYPES OF INPUTS
BUSINESS
SYSTEM

YARN KNITTING FINISHED

FABRICS DYEING KNIT WEAR

MANUFAC- THREAD CUTTING PRODUCT

TURING
BUTTON SEWING

ZIPPER WASHING

ELASTIC IRONING

RIB PACKING

LABEL& ETC SHIPMENT

Page | 38
5.7 Production Process

Input

Raw Materials Knitting Dyeing Finishing

Sewing

Finishing

Packing/Shipment

Output

Fig: Production process

Production cost

The company is decided that it will produced high quality knitwear product and selling
the product at competitive price. So the production cost and selling cost of knit wear
product is depending on buyer’s requirement.

Machineries and Equipments

To run the new venture certain types of machineries and equipments are required each
section, such as-

 Knitting section: 800 pieces of 21-25 DiaS/J knitting machines, 15 pieces of

34,36,42,44 Dia Rib/Inter Lock with Lycra attach knitting machines 2 pieces of
GSM measurement machines and one computer will require.
 Dyeing section: 6 pieces of Wing(375 kg) machines, 3 pieces of Calendar
machine, 2 pieces of Dryer Machine and 2 pieces of Boiler, 1 piece of Generator,
2 pieces of Water pump, 1 piece of Pick up van, 1 piece of Lab/ sample machine
and 2 pieces of tools-box will require.
 Sewing section: 65 pieces of over lock machines, 20 pieces of flat bed lock
machines, 40 pieces of plain machines, 2 pieces of Button Hole, 2 pieces of

Page | 39
 Button Stitch, 3 pieces of Rib Cutting, 2 pieces of Cloth cutting, and 2pices of
tolls-box will require.
 Washing and Ironing machines: 20 pieces of Steam-iron, 1 piece of washing
machine, 2 pieces of Thread sucker machine and 2 pieces of boiler machine will
required.
 Packing section: 10 pieces of packing machines, 5 pieces of cartoon machines
and one computer will require.
For the whole section one generator will require to smooth production process due to the
load shading.

Raw materials requirements

Two make a knitwear product two types of materials are required, such as-

Yarn: For different types of sweater different amount of yarn are required. For
conducting a job contract, 25% yarns are required to start the job contract. Rest of the
yarn will be collected systematically as per demand of the job order.

Accessories: For different types of knitwear product, different types and amount of
accessories are required to complete the job contract. It will be suitable for the new
venture to purchase the whole amount of accessories at a time for the benefit of the
purchasing economic scale.

5.8 Marketing Plan

Marketing is the total movement of goods and services from the original producer to the
ultimate consumer. This involves many agencies, or stops, along the way. Each segment
is concerned with the main marketing functions- planning, buying, and selling, as well as
the subsidiary functions, such as accounting and transportation. The marketing manger
should establish a basic philosophy that relates all company policies and activities toward
meeting the needs of the prospective buyers. Increased knowledge of the consumer's
atmosphere and environment can be achieved through researching and surveying the
general market area. To keep up with the dynamics of new products and services
becoming available, it is essential for the entrepreneur or the manager or the marketing
manger to be constantly searching for that ever-elusive, but ideally just right, proper mix
of the four marketing mix Ps- product, price, promotion, and place. In order to make a

Page | 40
success of the new venture that the company intend taking up, it will need to have a good
marketing plan. In the marketing plan the key factors to be considered are –

Good will of the company

The Goodwill of the company project by telling people about its business will be key
factor to attract and retain its customers. The purpose of developing a particular image is
to distinguish itself from its competitors and established in the minds of its customers an
association between its business and their needs. Its potential customers should be able to
easily identify it with the level of quality it offers or the type of market it will try to serve.

The image it will develop is a mixture of promotion, advertising, customer service and the
actual quality of the service performed.

All the four components of it image must be in harmony in order to be effective. If its
image can offer more than that it deliver, the credibility of it business will suffer and it
will see customers staying from it business. It must also make consistency between all
four components of its image. Everything it plan and it must be reflected in-

 The products it see,

 The workmanship it provide,
 The presentation of its bids,
 The prices it charges,
 The letterhead it choose
 The way it's employees dress on the job,
 The way it answers the telephone and handles the complaints, etc.
Promotion & Distribution system: Since the company will be a manufacturing unit of
exporting quality knitwear sand its target customers will be American & European
countries, it will eventually decide to handle their own exports. The investment and risk
will be somewhat greater, but so will the potential. The company could carry on direct
exporting in several ways and used following distribution channels.

1. Domestic-based export department or division: The Company could do their

distribution activities through domestic-based export department or division, such as
"BUYING HOUSE" which are operating as a profit center.

Page | 41
 2. Overseas sales branch or subsidiary: The Company could established overseas
sales and distribution and might handle sales and distribution and might handle
warehousing and promotion as well. It often serves as a display and customer service
center.

3. Traveling export sales representatives: The Company could one their

distribution activities through sending home-based sales representatives abroad of find
business.

4. Foreign-based distributors or agents: The Company could do their distribution

activities through foreign-based distributors or agents. Those distributors and agents
might be given exclusive rights to present the company in that country, or only limited
rights.

5.9 Human Resource policy of Jamuna Garments Ltd:

People are the most valuable assets of an enterprise and this asset does not depreciate.
The company has to make the following decisions concerning the Human resources /
Personnel:

 Number of personnel for management, technical and other positions in the

company.
 Qualifications and experience required in the personnel to perform the jobs
effectively.
 Policies and procedures for the transfer and promotion of staff.
 Policies and methods for remunerating the personnel.
 Facilities to provide for the safety, healthy, welfare of the stuff.
 Participation of personnel in the management of the company.
 Sources of requirement from which the needed staff will be procured.
 Procure and methods of selecting the best candidates.
 Methods of orientations and training to be employed for the selected
personnel.
 System and criteria for evaluating the performance of employees.
A personnel concentration area for making policy decisions with regard to the human
resources in the organization is shown. For a better understanding and work environment
the company should be able to give unconfused with regard to personnel matters. The
Page | 42
company should rise above discrimination, favoritism, and biasness and need be always
consistent in making such decisions. These will make the company acceptable to the
people.

5.10 Risk assessment

Risk in a business sense generally refers to the uncertainty of profit or loss. Risk is
therefore a psychological block based on human emotions and reactions. Risk may also
view as an objective or concrete phenomenon that is based on probability and statistics.
When dealing with business, it is important to reduce risk or uncertainty as per as
possible. One would like to know for sure that the contract has been signed and sale has
been made, rather than just knowing that one has a 50-50 chance of that being the case.
Operating any business involves taking a risk, or being exposed to losses. Most types of
business risk, however, can be dealt with if the practice of risk management is followed.
That is, the risk manger must be able to identify risks to someone else if possible. Many
business risks are insurable, but some are not. For insurable risk, however, firms may use
various methods of offsetting or avoiding them, like Business Recessions, price
fluctuations, Product or Process Obsolesce, Losses from Bad Debts and Shoplifting. The
company is forecasting that it will face five types of possible losses such as-

1. Personal risk: these are the losses that the company is predicted that it will arise out of
theft, accident, illness, unemployment, fire, and the like.

2. Commercial risk: the commercial loss is the loss to the business and results in
decreasing profit and increasing costs.

3. Property risk: properties losses or destroyed is the loss to the business but the
irresponsible activities, for example, if the knit wear inventory of the store is damaged by
the smoke or water resulting from a fire, then property damaged occur.

4. Business record risk: Business record losses may be classified in terms of –

i. decreasing revenue or income

ii. an increasing expenses
iii. a decreasing assets
iv. an increasing owner's liabilities or
v. Decreasing owner's equity.

Page | 43
1. Liability risk: liability loss may be occur as a result of an individual voluntarily
giving up some property, due to a threat of legal action or because of a breach of
contract or legal wrong (tort). The most common form of liability is if someone
down on one's property and was heart. The business owner is usually held liable
for a person's health while that person is in his or her business establishment.
Additionally, since the new venture will be a manufacturing unit, it will be
responsible or liable for poorly manufactured goods, such as the knit wears could
harmful for the skin.

Page | 44
 Chapter-Six

Discussions Conclusion & Recommendation

Page | 45
6.1 DISCUSSIONS

While Working at Jamuna Garments Limited, Konabari, Gazipur. I have achieved a

new kind of experience. After collecting and analyzing data I have got some findings. The
brief discussion about findings are follows:

From the operational result and SWOT analysis chapter the increasing trend of deposits
holding indicates the Garments fund mobilization opportunity and investment opportunity
in suitable sectors. In 2007,the Deposits of the Garments was 22,618 million.In2008, it
was 34,279.74.In 2009, it was 47,459.23.In2010,it was 62,964.95 million and in 2011,it
was 83,350.05. Over the last five years the deposits has been increased fashion. So, we
can say that it is financially strong Garments. By SWOT Analysis it has been seen, the
employee of the Garments are not well trained, for this reason they cannot provide
effective and efficient services to the customers. Customers are not getting the full service
from the on-line service. Sometimes they have to face problem with on-line account. The
bank is considered as a services provider organization but in this branch there is no
individual department for direct customer interaction. The employees are given deposit
target, which creates extra pressure to them for that reason they cannot freely provide
customer service

Page | 46
6.2 Conclusion

Today’s organization demands that the Merchandising management function deliver

evaluable side of earning foreign currency and take part a vital role to communicate with
international business. The experienced merchandisers are always demandable in every
country. It may an honorable professional for educated persons. For developing garment
sector merchandising management system will have to focuses on modern system.
Management of merchandising is a big job and is a complex one. The result of the studies
hawing that there is lot of step for Jamuna Garments Ltd. to improve their merchandising
management has certain implications for the business community as well as national
merchandising planners. The study “The impact of the activities of merchandising dept.
on the growth of Jamuna Garments Ltd. a garment industry” revealed that Merchandiser
is most valuable human resources for the progress of the organization. For the
development of these valuable resources there are many factors involved. To increase the
productivity of an organization effectively, efficient merchandiser will have to develop.
Preparation of future business managers should provide for the development of
managerial skills relating to merchandiser function. Colleges and universities offering
business administration curriculum would do well to evaluate their courses as they relate
to the findings of this study. This direct study indicates the potential utility that could be
derived from undertaking more comprehensive investigations covering only
merchandising dept. of Jamuna Garments Ltd. There are consequent developments of
newer knowledge can definitely contribute to increase the efficiency of business
management and this, in turn, will increase the satisfaction of all interested buyer parties,
which will be the ultimate goal of business. The RMG sector is expected to grow despite
the global financial crisis of 2009. As Chinas finding it challenging to make textile and
foot wear items at cheap price, due to rising labor costs, many foreign investors, are
coming to Bangladesh to take advantage of the low labor cost.

Page | 47
6.3 Recommendations

I would like to recommend on the following areas that’s should be help to achieve the
goals of Jamuna Garments Ltd. Generally I will give concentration on marketing and
merchandising activities of Jamuna Garments Ltd.

 Identify the market segmentation efficiently, then setting their target market and
forecast which market offering more opportunity.

 Jamuna Garments Ltd. Is marketing department must try to understand the buyer
need, want and demand.

 Need to develop long term relationship with key parties – buyers, buying houses
and suppliers.
 To achieve the goals, Jamuna Garments Ltd. is marketing team need to establish
effective marketing mix (product, place, price and promotion).
 Jamuna Garments Ltd. has some limitation but if they follow the proper
marketing concept then they can achieve the ultimate goals.
 Need strong relationship with repeat buyer. Because one estimate is that attracting
a new customer can cost 5 times as much as pleasing an existing one. Also, It
might cost 16 times as much to bring the new buyer to the same level
of profitability as the lost buyer.
 Customer retention is more important than customer attraction- if Jamuna
Garments Ltd. follow this concept then they will gain more.
 Jamuna Garments Ltd. should share their mission with manager and all the staff.
A clear mission statement guides the employee to work independently and to
achieve the organizational objectives.
 Jamuna Garments Ltd. should follow the “modern customer orientation
organization” chart instead of “traditional organizational” chart.
 Through the growth share matrix, BCG (Boston Consulting Group approach)
Jamuna Garments Ltd. can measure their annual growth rate of the market
whether business operates effectively or not.

Page | 48
6.4 Limitation of study:
During my internship program I faced some to accomplish this report such as:
Difficulties in gathering primary data.
Insufficient sources of data.
The high officials of several departments failed to give me enough time for their job
responsibilities.
Jamuna Garments Ltd .did not provide much necessary information due to business
security.
Time was too short to know about this vast field.
It’s tough for a fresher to meet with different buyers of the company.

Page | 49
 References

 KOTLER PHILIP & AMSTRONG GRAY (copyright 2006 by Prentice-Halting.)-

PRINCIPLES OF MARKETING (11th Edition)
 Malhotra. K. Naresh (copyright 2007 by Prentice-Hall, Inc.)-
 MARKETING RESEARCH: An Applied Orientation (5thEdition)
 Griffin W. Ricky (copy right 2005 by Houghton Mifflin Company)-management
(8th edition)
 http://www.Jamuna.net
 Source:http://www.businessdictionary.com/definition/merchandising.html#ixzz26
HB4BQTE)
 (Source:http://www.businessdictionary.com/definition/merchandising.html#ixzz26
HB4BQTE)
 (Source::http//WWW.businessdictionary.com/definition/letter-of-credit-L-
C.html#ixzz26HBpzaq7)
 (Source::WWW.investorwords.com/1158/cost_of_Goods_Sold.html)
 (Source:www.wikicfo.com/wiki/Freiqht-on-Board-FOB.ashx)
 (Source:WWW.businssdictionary.com/definition/cost-and-freight-c-F.html)
 (Source:WWW.cargotransport.com.au/incoterms/cif-cost-insurance-and-freight/)
 (Source: W WW.textilesindepth.com/index. Php? page=overview- qualitycontrol)
 (Source::http:/WWW.investopedia.com/terms/i/invoice.asp#xzz6HLSMH1d)

Page | 50
Abbreviations

L/C : Letter of Credit

CM : Cost of Marketing

FOB : Free on Board

C&F : Cost & Freight

CIF : Cost Insurance & Freight

QC : Quality Control

Page | 51