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Retail IIPM Project — Document Transcript

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1. 1 CHAPTER - 1 INTRODUCTION 2. 2 INTRODUCTION 1.1 Retailing Overview Retailing is one of the world’s largest industries. It is in a permanent state of change, and the pace of this change has been accelerating over the last decade. From the marketing perspective, retailers are, by definition, closer to the consumer than manufacturing companies. Retailers represent the culmination of the marketing process and the contact point between consumers and manufactured products. While retailing has long set buying decisions as its highest priority and was very focused on the product assortment, it now follows a more holistic approach to management and marketing and is seizing the opportunity to be consumer oriented, engage in the personal contact with customers, gather information on consumer behaviour and exploit insights into consumer behaviour and preferences. What was once a simple way of doing business is transforming into a highly sophisticated form of management and marketing. Retail marketing consistently features more efficient, more meaningful and more profitable marketing practices. Modern retailing has entered India in form of malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats mostly due to the convenience factor i.e. near to their house. This organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and even the labour class is also in the working process timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. 3. 3 In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years List of retailers that have come with new formats: Retailer Current Format New Formats Shoppers’ Stop Department Store Quasi-mall Crossword Large Bookstore Corner shop Piramyd Departmental Store Quasi-mall, Food retail Pantaloon Own brand store Hypermarket Globus Department Store Small fashion stores Traditionally, the kirana retailing has been one of the easiest ways to generate self- employment, as it required minimum investment in terms of land, labour and capital. These stores are not affected by the modern format of retailing. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, `phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches,

shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Reliance has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. Apart from metro cities, several small towns like Nagpur, Nasik, Ahmadabad, Aurangabad, Sholapur, Kolhapur and Amravati has seen the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary 4. 4 that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India. This chart is showing three lines mainly, overall retail sales; food, beverages and tobacco segment sales and clothing sales. And here researcher’s focus is on clothing segment. So let now discuss about apparel industry. As we know apparel is one of the basic needs of any person. And now in India, either a rural person or an urban person, all prefer these easy and 5. 5 comfort retail formats for them. As a research conducted by KPMG/research firm; in India, in rural segment there is a 61% spending and in urban market, there is 39% spending. Indian Organized Retail is set to explode with Food & Lifestyle retail as major segments And apparel industry is also one of these SBU’s; so definitely these all things make it more valuable than others. India is on the radar screen in the retail world and global retailers and at their wings seeking entry into the Indian retail market. The market is growing at a steady rate of 11-12 percent and accounts for around 10 percent of the country’s GDP. The inherent attractiveness of this segment lures retail giants and investments are likely to sky rocket with an estimate of Rs 20-25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010. Indian retail market is considered to be the second largest in the world in terms of growth potential. 6. 6 TABLE –1 India Retail - Share of Categories (per cent) 2003-04 2004-05 2005-06 2006-07 1. Food & grocery 66.4 62.5 61.7 59.6 2. Beverages 2 2.7 3.1 3.6 3. Clothing & 7.3 8.8 8.6 9.3 footwear 4. Furniture, 4.8 5.8 6.2 6.8 furnishing, appliances & services 5. Non- 9 8.6 8.5 8 institutional healthcare 6. Sports goods, 2 2.4 2.6 2.7 entertainment, equipment & books 7. Personal care 3.5 3.8 3.9 4.2 8. Jewelers, 5 5.4 5.4 5.9 watches, etc Total Retail 100 100 100 100 Source: 1.2 Apparel Retailing 7. 7 The order of present day business being global, a constant adaptation and reinvention of marketing strategies is imperative so as to face the challenge of satisfying the local customers in the global markets. In the Retail sector, India is currently witnessing tremendous growth; but there has been a dismal performance by many owing to the fact that Westernised formats in India have been blindly followed and replicated without considering the abysmal differences in all types of macro and micro environmental factors. So it is obvious that we need to find out some solutions for the retails in India, keeping in mind the intrinsic differences in the people across the country in terms of culture, economic condition, purchase attitude and so on. This paper attempts to highlight the differences in Retail Purchase Factors across customers and suggest a way out for

Ones spouse. Moreover. that affect the replenishment Fundamentally replenishment is driven by standard replenishment models and variables • Minimum stocks • Maximum stocks • Re-order point • Re-order quantity • Economic order quantity 9. is that she may accompany him and offer suggestions when he purchases items of apparel. Social forces are believed to influence fashion including Replenishment efforts in terms of Min / Max / EOQ etc. Purchase behaviour. handle. 8. is set ONLY for Regulars and a few Seasonal men’s. Storage capacity of the store 4. Increasing market expansion and fashion volatility are all intensifying competition in the apparel chain. These. as global sourcing becomes the order of the day with raw material supply. Proximity.and leads to a correspondingly wide spectrum of upstream manufacturing parameters and small batch sizes. Fashion Carried only once and only one delivery is expected Apparel fashion has always changed no matter what category of apparel it is. Studies have considered the relationship between the self and apparel and have taken into account the various aspects such as actual self-image and ideal self-image. Price.Carried through one or two seasons 3. It's a typical problem faced by apparel supply chain. and men’s business wear is no exception. fashion and brand image all capture the imagination of consumers shopping for value in apparel items. Identification of the role of apparel as a sign of business success is not a new concept. Ambience." Factors Affecting Replenishment Replenishment of merchandise is dependent on: 1. distribution and retailing all are dispersed across the globe. which severely affect the marketability of a brand. This complexity makes it more difficult to manage a given product basket in terms of time. and companies are being forced to diversify their products in an attempt to improve market share. Mid or end of season Basic Concept on Replenishment There could be SEVERAL other factors like commercial contracts. If the image of an outfit . family and culture are some of the forces that change fashion. including whether his dress is acceptable to the group. in turn. are major hurdles in meeting delivery schedule and quality standards. increasing the product mix to ramp up market share can also lead to operational losses and non. size and fit . This diversity is largely determined by attributes such as design. 9 • Lead time for replenishment Effect of Merchandise Type on Replenishment Fashion retail best practice is to: • Categorize entire merchandise into: 1. Rate of sales 6. Type of store 3. when he buys apparel. Product Assortment. where the scheduling of work becomes complicated by the introduction of a highly diverse range of products. Service. Seasonal . Planned marketing activity 8. A male consumer’s family and culture can influence his purchase decision because of the social interaction he has with them. Ensuing events like seasonality 9. 8 Under these circumstances it becomes mandatory to "get the right product to the right place at the right time at the right price. Lead times for supply of goods 5. Type of merchandise 2. cost and serviceability. Regulars Carried through all seasons 2. priority on stores etc. Communication A smart product mix is vital for the apparel supply chain Style. manufacturing. An example of ones spouse influencing an individual.fulfilment of the delivery schedule. Consumer behaviour. product replenishment in the apparel supply chain assumes a new dimension. A review of related literature revealed that self-image/product image congruity was related to an individual’s behavior to a particular item and that apparel products had symbolic meaning. Relative stock positions across the chain 7. Keywords: Retail.  effective marketing & assortment for apparel outlets with local orientation. Beginning. However.

It is expected that. Independent India saw the building up of textile capabilities. its export value to US $50bn and employment to 12 million by the year 2010 (Texmin 2005). based on historic demand) the relative likely revenue and margin resulting from different merchandise portfolios. and its emergence. 2005. ethnic wears. The sector aspires to grow its revenue to US $85bn. as an important global player. Today. 14  POLO 1. The most critical decision in any consumer goods value chain is which merchandise to stock. The Multi-Fibre Agreement (MFA).e. post-MFA.0 mn people (and is the 2nd largest employer).     were a positive match with the self-image. including both the actual self and the ideal self. most tariff 10. 12  PEPE  LEECOOPER  MONTE CARLO  LEVIS  CHARLE OUTLAW  KOUTONS  DUKE  COTTONCOUNTY Ethnic Wear’s Segment 13. 13  TIMBERLAND  LIBAS  FAB INDIA  MILLIONAIRE  HERITAGE  DIWAN SAHEB  AMARSONS  SIYARAMS  VIMAL  CAMBRIDGE Sports Wear’s Segment  REEBOK  NIKE  ADIDAS  FILA  YONEX  HEAD  PUMA 14. In the Indian Market so many National as well as International brand in different apparel segment which include:  Corporate Wears  Ethnic Wears  Sports Wears  Casual Wears Players in Apparel market As we have discussed that there are so many players are ruling in the Indian apparels industry out of which some players are national Players & some players are of International standards 11.90 per cent. An important question facing Indian firms is whether their capabilities and their diverse supply chain are aligned to benefit from the opening up of global textile market? The history of textiles in India dates back to the use of mordant dyes and printing blocks around 3000 BC.3 In Apparel Segment and Merchandise Assortment Planning • Merchandise planning. Sports wears & casual wear segment Players  Corporate Wear’s segment  LOUIS PHILLIP  JOHN PLAYERS  PROVOGUE  PETERENGLAND  PARK AVENUE  DONEAR  MAYUR  Casual Wear’s Segment  SPYKAR 12. The diversity of fibres found in India. 11 Every player have their different product portfolio in a particular apparel segment Or there are many players in each apparel segment which we have discussed above i. expired on 1 January. must draw on data and analytics that evaluate. the textile and apparel sector employs 35. although ultimately driven in retail by the buyer’s judgment. 10 distortions would gradually disappear and firms with robust capabilities will gain in the global trade of textile and apparel. But this decision. This textile economy is worth US $37 bn and its share of the global market is about 5. intricate weaving on its state-ofart manual looms and its organic dyes attracted buyers from all over the world for centuries. once again. For retailers selling footwear or apparel a statistical understanding of the distribution of sales . The British colonization of India and its industrial policies destroyed the innovative eco-system and left it technologically impoverished. the apparel item would be worn most of the time. that had governed the extent of textile trade between nations since 1962. • Size optimization. The prize is $360 bn market which is expected to grow to about $600 bn by the year 2010 – barely five years after the expiry of MFA. and test the feasibility of the portfolios against constraints such as store space or labor availability or the firm’s available working capital. corporate/formal wears. diversification of its product base. generates 1/5th of the total export earnings and contributes 4 per cent to the GDP thereby making it the largest industrial sector of the country.

because fashions vary from year to year and sometimes. So competition is also increasing in this industry day by day. a thorough plan called a merchandise assortment plan has to be adopted. Pack optimization balances the complex cost and velocity trade offs at different points in the supply chain between moving only highly aggregated quantities. So definitely apparel industry has a wide scope. The starting point for developing an assortment plan for a given season is the historical data for a particular merchandise category. especially for the multi-store retail chains of today. An assortment plan depicts what should be carried in a specific category of merchandise. • Space optimization. For decisions on these matters. for example pallets and shipping highly disaggregated units. its product range and varieties are the best way to attract and retain customers. makes and models. are of strategic significance to every retailer. and hence. But the complex tradeoffs between affinity items. And as retailing environment is emerging now a days and Indian economy is also developing so a wide range of fashionable and trendy clothing is available now and customers have a lot of options in their hand that’s why it is essential for every retailer to position themselves as a different and best option for customers. Retailers provide space in stores in proportion to their expect sales and margin for each merchandise item. with North Indians for example in general being taller for example than population from the North East region of India but retailers need powerful sparse data analytics to plan for the differences in populations that visit urban and out of town stores. colours. if large stocks are maintained in a particular category. Merchandise comes in a variety of sizes. An assortment plan for a merchandise category based on fashion will not identify particular stock keeping units. the retailer should establish a trade-off between the type of categories or assortment and the inventories being maintained. Apart from the assortment . 15 Issues such as what merchandise to purchase and in what quantity. 15. The more fashion-oriented the merchandise category is. with different margins and attracting different promotional funds simply demand an enterprise analytic approach rather than single user planning tools. by size by store is vital in order to meet consumers’ needs and avoid mark downs and stock outs. the more necessary it is for the merchandise planner to accommodate changes in fashion. For example single SKUs or Stock Keeping Units. For every industry. And as clothing is one of the basic needs of every person. Hence. decisions about pricing and mark downs are critical to the achievement of financial goals and while analytics are widely deployed to understand the likely overall impact for example of a promotion on volume and profit the real challenge is to solve simultaneously the merchandise assortment. The retailer must make decisions regarding the merchandise offered depending on the sales targets and financial objectives of the store. That’s why right now many players are operating in this industry and new players are also coming. It’s well known that consumers’ sizes vary from one region or to another. Retailers should be very careful while deciding on the amount of stock to be maintained in each category. • Revenue optimization. from season to season. the lower the level of detail in the assortment plans. For retail. there may not be sufficient resources left for providing a deeper assortment of goods. That’s why this concept of merchandise and assortment planning emerged and now most of retail organizations focusing on this for being alive in the market. This is called merchandise assortment planning. pricing optimization and space management for each store within the retailers’ supply chain and working capital constraints • Pack optimization.

fabric composition and colours. chance of response error might possible. Pantaloons or Food World.) Type of Regular Stone Tinsel. price levels.Broken twill Over dyed Fabric denim washed Lyera based denim denim Colours Light blue Dark blue Light blue Light blue Blue Black Indigo Black Black Black Black Deep blue Figure: Assortment Plan for Boy’s Jeans at Spykar Source: Data collected from Spykar team. The merchandise planner then makes the required 16. Associated Objectives.• Understanding the merchandise assortment planning concept and process adopting by apparel outlets at Chennai. • To study competition between apparel industry and strategies followed by them to overcome from it. 19 • Gaining practical exposure to Merchandise Assortment Planning.• Knowledge earning.    plan for a merchandise category in the previous season. • From this report they will get the knowledge about required changes in their strategies and customer base. 1. • Since the results will draw on the basis of Information which will be provide by the respondents.2 Assortment Plan For Boys’ Jeans Style Straight-leg Straight-leg Straight-leg Loose-fit Loose-fit Retail price 999 1399 1799 1299 1599 (in Rs. An effective assortment plan requires equal or more effective sales. 16 changes according to his expectations of what products or fashions will be really significant for the coming season. inventory turnover and GMROI (Gross margin return on inventory investment) figures are used to develop an assortment plan for the current season.5 LIMITATIONS OF THE STUDY • Time constraint. ii. 18 • Because all research is related to Chennai city only and here a limited scope is available for these types of studies.• They will get to know about retailer’s strategies and their work process. 1. inventory turnover and GMROI forecasts. competition and entry of big giants in this segment. The process of developing an assortment plan can be quite complex. • Sample for the study taken is of only 100 consumers. 19. 18.• This report will be beneficial for companies and outlets too because from this report they get to know about their customer’s preferences.• To know about the factors influencing inventory management decisions of different apparel outlets. especially in multi-store chains like Shoppers’ Stop. TABLE.The major limitation of this project is the time period for this thesis because it is not possible to look in to each and every aspect of Merchandise Assortment Planning in such a short span of time. • To study about customer’s preferences towards it. to complement the experienced judgment of the merchandise planner. iii. To customers. 17 Primary Objective of the study. • Grasping the knowledge about how customers take these decisions taken by retailers and its then their response towards it.changing market conditions. And apart from these all stated objectives my first and foremost objective was to acquire the practical knowledge about the Merchandise Assortment Planning like how these retailers do this process for their survival and how they fulfil demands of customers. • Analyzing that difficult situation of operating business for apparel outlets in quick.6 BENEFITS TO THE STUDY i. To company. This plan describes general styles. 1. To Self. Disinterest of customers may generate non response while collecting data. • Gain knowledge about customer preferences. • From this report they can say their . Which can also act as a constraint in the study • People whom data will be collected can be biased on some time and because of lack of awareness and lack of knowledge people can give wrong opinions. sales.4 RESEARCH PROBLEM/OBJECTIVES OF THE STUDY The study was performed aiming at the following objectives: 17.

Data from the large-scale study revealed that across categories brand value may not hold much beyond the name in the minds of consumers. With Merchandise Planning. Gabay Gillie (2009):. which looks at ten drivers. It is expected to grow 12-15 percent per year. Messages that focused on product functionality were found to be stronger drivers of preference of one brand over . 20 LITERATURE REVIEW According to Torex. In total. in its online journal says that.torex. according to a new study by global management consulting firm AT Kearney. India comes after Brazil and China in the AT Kearney Retail Apparel Index. Zeithaml and Lemon in 2004 to assist companies in reducing the depreciation of brand equity.The purpose of this paper is to empirically test the consumer-centred approach to brand management theorized by Rust. 21 This results in lower inventory costs. so it is beneficial for them to make all required changes in system.pdf Surinder mishra in his article India third most attractive market for apparel retailers has found that India has emerged the third most attractive market destination for apparel retailers. Perhaps most importantly Assortment plan helps in giving customers and rich experience with continuous availability of fresh and appealing products. Retailers need their products to fit their demographics. merchandise Assortment Planning provides planners with everything they need that helps to analyze efficiently and in a customercentric manner. In contrast to traditional segments Companies are to build and position brands around customer segments. principal of Consumer Industries & Retail Practice. They can also plan different delivery dates to allow for seasonal differences.   views and their opinions about these retailing strategies. 21. it’s hard for retailers to achieve with basic spreadsheets. Brand equity was operationalized in the context of conjoint measurement. buying and merchandising teams maintain consistency. representing 10 percent of the $37 billion retail market. both with their business processes and their execution. It was found that mindset segmentation may be a basis for brand management. including apparel consumption and clothing imports/exports. All of this adds up to decreased supply chain management costs. Source: http://www. apparel is the second largest retail category. lower markdown costs. to rank the top 30 emerging markets for retail apparel investments. lower markdown and increased sales. the tools in the application help buyers give their customers the right product in the right place at the right time. Stores with different climates need to carry different products. It was found that brands did not hold much beyond their name. a Merchandise Assortment Planning firm.2 LITERATURE SURVEY 20." said Hemant Kalbag. 5. "In India. Merchandise Planning allows buyers to take customer demographics into account when planning ranges. AT Kearney India. 22 product design & Faison in terms of their perceived functionality across consumer cutting edge methodology to test mindset segmentation by combinations of product features as a new basis for brand management was used. The study focused on brands in the textile industry requiring the replication to additional industries. From store layout and sizing to packing and allocation. Normally merchants plan ranges based only on the size and sales of the store. thus Assortment plan must be done in different seasons. They can create assortment ranges by store as well as by store attributes. Companies holding strong brands will need to define 22. increased sales and margins and a competitive While customers expect this.364 respondents participated in interviews testing drivers of brand equity for six brands each in apparels. CHAPTER .

The results show that six decision-making styles (recreational and hedonistic consciousness.  another. And all the sources I got to know by the proper guidance and immense knowledge and experience of my faculty supervisor. So these are the main sources of my project study. 24. Surveys: This is a research technique. which is used to gather information from a sample of respondents by employing a questionnaire.1 RESEARCH DESIGN Research design essential because it facilitates the smooth flow of various research processes.0 RESEARCH METHODOLOGY For the perfect thesis one has to know each and every aspect of the concept thoroughly. I would be using the structured questioners. Exploratory studies: This research is carried out to make the problem suited to more precise investigation or to frame a working hypothesis from an operational prospective. and  Web site. Specifically. On the basis of that in Chennai context this research is an attempt to know the perception of Chennai people and the apparel store retailers. Beijing and Guangzhou in the Mainland. A questionnaire survey was employed as the tool to collect primary data and the research instrument was administered to 161 University students in Shanghai. 3.  Journals. it offers empirical results on the relationship between consumers’ decisionmaking styles and clothing choice criteria towards buying casual wear. the various steps which are to be followed are given below: a) Planning the research design. developed by Sproles and Kendall (1986) for examining different consumer decision-making styles. For this research. These surveys will be conducted among the: • Apparel store retailers. the research method chosen by the researcher are secondary data and survey methods. The Consumer Style Inventory (CSI). was adapted in this study.3 RESEARCH METHODOLOGY 23. 24 As a part of exploratory studies the secondary data is being collected since this topic is very highlighted in all over India and the sector growth is also very rapid. habitual and brand loyalty. Kwan C. • Customers. I have collected it from the sources like internet. c) Selecting the sampling procedure. This research was conducted using both qualitative and quantitative technique.Y. So acquiring the data regarding this I gone through by several things like:  Books. And then for merchandise assortment planning one has to get update with the latest trends and all factors which are continuously affecting these decisions. a) Primary data: These are those data which are collected afresh and for the first time. published data etc.3 SAMPLING PROCEDURE Sampling is . 23 3. the design chosen by the research is exploratory in nature. b) Secondary data: These are those which have already been collected by someone else and which have already been passed through the statistical process. f) Preparing and presenting the research report. 3. and brand and fashion consciousness) were found in the Mainland CHAPTER . and thus happen to be original in character. e) Evaluating the data.2 RESEARCH METHOD After developing an appropriate research plan. It is not used in case where definite result is desired as in our research case where only impact is to be studied.  Magazines. price and value consciousness. b) Selecting the research method. In order to understand the merchandise assortment planning process. In order to get the appropriate results on a clearly defined research topic. (2004): This paper explores young Chinese consumers’ decision-making behaviour towards casual wear purchase in Mainland China. as per the objective stated. d) Data collection. Product quality & design instead of brand names emerged as the primary source of value across segments. confused by over choice. perfectionism consciousness. 3. it is important for the researcher to select a proper research method.

Sampling is a process that uses a small number of items or a small portion of a population to draw conclusion regarding the whole population. Rajeev (Colorplus Merchandise Manager) has addressed on the topic that How Merchandising Assortment planning is carried out in their outlets. Interview with Colorplus Ambattur factory outlet manager: Address of the Factory outlet (C10. Chennai. 3. The next step was coding. allocate the total money available or the units to the . 5 for Experts interview totally 100. To arrive at the model stock plan. 26 PROCESS FLOW OF THE PROJECT DESIGN OF QUESTIONNAIRE 27. Raymond. only few organized apparel outlets is their so the unorganized retailers also being chosen for interviews and customers are chosen at random. Then tabulation was done. Data was sorted into different categories and numbers of cases that belong to those categories were counted. 30 The aim of the range plan is to create a balanced range for each category of products that the retailer chooses to offer. then decide on the levels under each attribute and finally.  The range planning process should ensure that overbuying and under buying is limited. 27 PILOTING BASED ON QUESTIONNAIRE AFTER FEEDBACK REDESIGN THE QUESTIONNAIRE QUALITY CHECK GETTING QUESTIONNAIRE FILLED CORRECTION OF DATA DATA ENTRY DATA CLEANING ANALYSIS FINDINGS. 28 CHAPTER .  Sufficient quantities of the product are available. Details of colour. Spykar and Adidas Sampling Area: I have Chosen Chennai. the researcher collects the data from the units in this sample. tabulation and processing of collected data. 25. accuracy and uniformity. so that all the stores can be serviced and the product should be available at all stores across various locations. coding.2(a) Mr. Colorplus Model stock plan: It gives the precise items and quantities that need to be purchased for each merchandise line.4 DATA ANALYSIS AND INTERPRETATION 29. brand etc have to be specified. Derby. 26. Ambattur Estate. This step includes editing. Different categories were identified into which responses are classified. Sample Size: Sample size is around 5 for apparel outlets to study their merchandise assortment planning and 90 for customers to understand their preferences.      generally a part of the research design but is considered separately in the research process. size. The Schedules are required to be edited during the field survey for necessary corrections. 25 Since in Chennai. RECOMMENDATIONS & CONCLUSION Digram-1 . 30. Sampling Unit: Colorplus. Good range planning should essentially take care of the following:  The number of items/options available to the customer should be sufficient at all times and should be such that it helps the customer make a choice. we needs to identify the attributes that the consumer would consider while buying the product.1 Data collected after survey  Researcher went to all those sample units for collecting data and found data from direct interviews and surveys from customers and retailers.P R O C E S S F L OWOFTHEPROJECT 28.4 DATA COLLECTION After preparing a suitable sample. 3. For this research the sampling method chosen is simple random sampling and Convenient Sampling. As stated above that research method which is used in the research comprises of surveys therefore data collected is of primary in nature and partly secondary since secondary data also be taken. ASSORTMENT PLANNING: It involves determining the quantities of each product that will be purchased to fit into the overall merchandise plan. 29 4.5 EVALUATING AND ANALYZING THE DATA. After the survey was complete they are required to be checked again for completeness. Tamilnadu-600058) 4.

many consumers are no longer content to . Analyzing the changes in the economic conditions. competition. “as technology advanced. Casual.  TYPES OF FORECASTS include  Overall company projections  Product category projections  Item-by-item projection  Store-by-store projections One way to forecast sales for narrow categories is to project sales on a company basis and by department and then to breakdown figures judgmentally into merchandise classifications. Grey)  Fabric (Cotton. After a yearly forecast is derived it should be broken into quarter or monthly. Analysing the changes in the marketing strategies of the retail organization and the competition. internal factors and the seasonal trends must be anticipated and taken into account. an estimate of the projected increase in the sales is arrived at. Thus the units that are recommended for each item are into direct proportion to the estimated demand patterns. • Helps to reduce the business risk. • Helps in setting sales target.Devendra G.: illustrate the steps involved in preparing a model stock plan: Colorplus has allocated Rs.100. BENEFITS • Reduce the cost of inventoryWe can avoid under stock and overstock. Store Manager of Raymond’s branch Doveton. medium. cotton blend) Step 3: The third step is to be allocating the total units to the respective item categories. • Helps in planning man power requirement. Reviewing past sales. 4. large.    respective item categories. changes in hours of work) and seasonality.2(b) Raymond Apparel outlet According to Mr. Sport)  Size (small. All these factors to be taken into consideration. existing store to be remodelled. 2. economy and demography) Internal factors (addition and deletion of product claim. Extra large)  Sleeve Length (Full Sleeves.1 lakh for buying of shirts. a shift in consumer decision making influenced buying there a new line of merchandise to be introduced.Mehta. Is tomorrow’s expectation based on yesterday’s achievements and today's plan is the foundation of merchandise plans. 31 The first thing that is we need to do is identify which factors affect the customers buying decision and the number of levels under each attribute.After taking into consideration the above mentioned points. Step 2: Identify the number of levels under each attribute. 32 MERCHANDISE FORECASTING IN COLORPLUS Forecasts are projections of expected retail sales for given periods. Assuming that the purchase price of each shirt is Rs. It gives an indication of sales in the current and future period. 34. Economic slowdowns or increase in unemployment all affects business. 33 The external factors. 34 4. 33. Formal. revised promotion.necessary to establish if there is any pattern or trend in the sales. Blue. Merchandise manager identifies the following attributes and the levels:  Type of shirt (Dress.Economic conditions have a direct link to the consumer spending patterns. Short Sleeves)  Collar Type (Seville. STEPS 1. • Thus it helps to earn maximum profit. Cream. 3. • It helps in forecasting short term financial requirements and long term financial requirements. • Helps in planning of a new store or expansion of an existing store. The following e. Step 1: 31. 5. Button down)  Colour (White. With the ability to research and purchase any commodity including apparels online. MODEL STOCK PLAN IN COLORPLUS: Source: Colorplus Ambattur factory 32. credit policy. Analyze the changes in the sales potential. External factors (consumer behaviour.It is necessary to relate the demographic changes in the market to the store and the products to be sold. Creating the sales forecast. • Helps in forming suitable advertisement and promotion programs. he will be able to stock 1000 shirts in the store.g.

Building targeted assortments based on customer focused location groups Plan assortments using placeholders and defined items is the key to our success. and profitable assortments. and other user-defined parameters. Our Allocation Strategy allows users to look at the full assortment in advance of allocating. 36. The workflow integrates all modules transparently. Systematic approach of our merchandise assortment is definitely a competitive edge in this competitive trend. collection. Managing In-season Merchandise & Store projections has made us so distinctive in terms of customer service. Methods we follow to execute allocation using a best aligned with item has been an intangible asset for the store. Sanjeev Spykar Store Manager. Reviewing the assortment by multiple attributes (such as colour and fabrication) is dynamic yet simple for practice. 37. rate of scale.2(d) Mr. Assortments are tailored to different climatic zones. Planning by merchandise delivery is too complicated. 37 4. We manage a product workflow and select a size profile that will optimize order constraints with store size need.Balajiram Adidas Store manager. space and climate to tailor assortments to different customers. 35.Ajay Derby Store Manager. The first challenge for retailers is to identify consumer preferences as accurately as possible. Nungabakkam. Advice from specialist consultants with years of merchandise & assortment experience has developed best practice workflows. Assortment plans are initialized from targets and changes are spread down to item by store group to provide an accurate plan with very few entries.. Nungabakkam Our Integration with Merchandise & Store plans means that assortment roll-ups can be compared to higher level plans as changes in the assortment.. Assortment planning technology can sift through multiple options to generate plans based on product hierarchy or product attribute. This can be done by capturing decision-making data from a variety of resources. customizable solution. System generated item counts and plan based seeding keep assortments focused. Group locations are usually based on attributes such as volume.” He also said that they use specific software for assortment planning. for complete integration. It means Merchandise & Store Plans feed the Store groupings and Assortment plans. so that new and key item Assortment plans can be driven from higher level plans. such as theme. promotions etc. meaning coordinates are correct by store and exception filtering allows for immediate attention or correction. initial distribution. Continuous review and updating original assortment plans by location group to reconcile with the latest store performance has enabled our merchandise much more efficient and effective. Purasawalkam In our company we follow Integrate chain level Merchandise and Location planning processes weekly. ranging from in-store product performance to social networking options. customer-appropriate. 35 4. and distribution timings which are then offset by store group. Reviewing Allocations of coordinate & linked items is a standard step before release of the allocations. We use this information to create differentiated. The software Raymond use can also calculate optimal quantities based on space.2(e) Mr. Merchandise plans are broken down by seasonality or launch collections. Thus it becomes important for retailers like us to give the maximum number of variety to the consumers. and after each allocation. This software offers the ability produce flexible. We generate recommendation of items needed to meet plans or fit constraints.2(c) Mr.   simply choose from a given selection in a particular store. 36 4. so the user never needs to .

we can do any work but for be assure about the work’s success we should make some planning or strategies. affordable prices. 40 Q. Venfield. Financial Objectives  Customer’s preferences and demand  GMROI figures  Retail brand’s image and good will  Seasonal demand and fashion 40. Color plus. Q. 38. they considers mainly. And these all things give them competitive advantage and customers are also satisfied with them. suitable range of colours and comfort that signifies the outlet.3. Adidas Universal Appeal and a very popular logo that signifies better quality. with continual flow of newness that makes the outlet different. customer’s satisfaction or dissatisfaction. Spykar. the vision of company. varieties. promotional strategies and most important merchandise assortment planning decisions. Different variety with low price casual wear. Casuals Adidas. Spykar Many factors such as fair publicity. But as all customers have their own specialties so these retailers also have to change their strategies according to their own localities. Tell me something unique about your outlet and brand and about your vision and mission? BRANDS RETAILERS ANSWERS John players King of apparel giving more offers and excellent promotional strategies makes different among the competitors. .For selecting what and how much merchandise they have to purchase and they have to keep in their organization.4. Derby. . Which is your target market and what you doing to capture it? Ans. So for create a good image in customer’s mind and for capturing most of the market share. like pricing strategies.As given in above question’s answer. TARGET MARKET VARIOUS BRANDS Formals John Players. their own products features.1. Colorplus Good promotional strategies to attract customers and in terms of quality our Brand is the best. Merchandise is the most important part for apparel industry. Lilliput. Without any planning or strategy.6. good service signifies the outlet. assortment and detail.   move out of the workflow steps. Is there any proper strategy you are adopting for these decisions? Ans. Q. As all brands have their own vision and mission so mainly these apparel store owners also adopting same strategies for them. This has made our presence in better service category and customers as well acknowledged it very strongly. Are you facing any kind of problems or difficulties for . Reebok Lifestyle sports casual appeal. Then they make some modifications in the plan according to the local circumstances. It shows the image of the company.3 Questionnaire for Retailers Q. they have to make a prior planning. 39. Q. As these retailers are getting their own sales plan for every year and for every month from companies. Kenith Parker Different variety with low cost signifies the outlet. . Reebok. All family apparel market Kenith parker.Some stores have their own strategic plans for capturing market and company’s management also helps these store owners in strategic planning. Cotton County. these all retailers have their own target markets and their all efforts are focused on capture as high market share as possible. Before taking decisions about your product varieties and range (Merchandise Assortment Planning). Is it important to make a prior planning or strategy for merchandise decisions? And if yes then why? Ans. And merchandise decision is not a small aspect for any retail organization. Children’s market Gini & Jony. Peter England The outlet prides itself on quality. So these all apparel outlet have their own identification in market by their own brands.5. Cotton County Youth spot. Peter England. And they are adopting so many strategies for it. 38 4. what factors you considered? Ans. 2. 39 Derby We give our customers the latest fashions at truly affordable prices. Venfield We offer a very broad assortment. Same is applicable in business context also.

As research is being conducted in Chennai so.    these decisions and planning because I think in a city like Chennai. here most people prefers Quality factor is most important thing for them. Are you satisfied with the services and varieties of products provided by these apparel outlets? Ans:. 42 4. TABLE-5 44. 43 TABLE-4 Q. Adidas. Other notable factors that affect the purchasing decisions are Fashions & Trends. I have found that 61% of people choose to buy clothes from branded outlets.a) Any traditional store (unbranded) or b) A branded retail outlet. And others retailers as Cotton County. they indulge in spending their valuable money on buying branded apparels rather than shelling money on un-branded apparels. 55 people from total 90 customers said this. So. John Players these are some of the outlets. 42.4 Which apparel outlet you prefer most for buying clothing? (To college students) a) Spykar .2. 41 Q. Sometimes because of brand’s image and influencing customers they have to keep that merchandise also which have no demand in market but often they prefer only that merchandise which has demand in local market. . . As. 44 Q. Ans. So customers are satisfied with all these retailing scenario because it is in favour of them. Q. Are all decisions related with your outlet’s merchandise are independently taking by you or is there any interference or support by company’s side also? Ans.Yes this thing is also very important for any apparel retailer. What factors you are considering before taking any apparel purchasing decision. Variety and Looks. Important thing is that they are getting large categories with low prices because of high competition.8.Choice of Customers No. it is not possible to keep a deep variety and we can’t keep a limited range of variety also because of quickly changing customer’s preferences and competition? Ans. have low range products also and people of Chennai like these products much so these retailers enjoy more price than high price showrooms in Chennai.Ans. And they can compromise with Price but they want fashionable and good looks items. 43.4 Questionnaire for Customers TABLE-3 Q. which consists of high range of products with maximum prices.Different approaches are followed by the retailers. They also give more importance to the price of the product which may be influenced by the present recessionary condition. Reebok. .Mostly people from Chennai prefers branded clothing. . Do you think your plans are going well according to your expectations? Ans.Customers Highly Satisfied 17 Satisfied 34 Neutral 25 Dissatisfied 9 Highly Dissatisfied 5 CHART-5 Inference: From my research I have found that the consumers are quite satisfied with the purchase. customers sometimes prefer and sometimes do not prefer these types of clothing because of its high prices. So in Chennai. most. Most affecting factor for purchase No of people Price 24 Quality 43 Variety 7 Looks 5 Fashion & Trends 11 CHART-4 Inference: From the research undertaken by me. In my intensive research.of. Derby.From the above question it is clear that local retailer got support from company side too for their strategies and planning and they make some changes according to the local circumstances for their merchandise assortment planning. Customer’s Preferences Percentage Branded 61 Unbranded 39 CHART-3 Inference: From the above statistical information it is clearly visible that people are more conscious about the brand they buy. And others prefer unbranded and traditional store clothing.3.1.7. . From where you prefer to buy apparels. TABLE-6 Q. 41. I found that the people are more concious towards the quality of the apparels they buy.

. people are not so much aware about new retail concept. male Young Professionals John Players 14 Peter England 6 Derby 22 Cotton County 9 Color plus 28 other organized or unorganized outlet 11 CHART-7 48. no matter 22 strictly based on recommendations 17 CHART-11 Inference: From the research I have found that the People are more brand conscious in urban side. TABLE-11 53. 53 Q. Cotton County. but they don’t prefer brands like Adidas. Do you think in organized retail store.         45. good for India? As in India. It reveals that they are price conscious but brand name is not preference to them. Thus..8. Peter England much..7. 28 CHART-10 Inference: From the research I have found that India has a good retailing future mainly due to the size of population and the increased purchasing power. 52 Q. TABLE-9 51.Favourite outlet(to college students) No. It was found that 46 people out of 80 people prefer branded items.. definitely b) No. TABLE-8 49. less knowledge and so many other negative factors? a) Yes b) No c) We can ignore them.9 So do you want to keep your loyalty with your favourite brand or can switch? Customer Loyalty towards No. let see in future.CHART-9 Inference: From the Research I have found that people don’t have much opportunity to bargain. Ans. 19 don’t give importance to brand and the remaining . Customers Lilliput 24 Gini & jony 6 Other Organized & Unorganized Retailers 51 CHART-8 50. Ans. It is due to the high income level and people relate a brand to themselves. not at all 19 Can’t say anything now. of male Youth Spykar 4 Ven field 11 Adidas 5 Reebok 7 Kenith Parker 6 Color plus 18 Derby 16 Cotton County 14 other organized or unorganized retail outlet 9 CHART-6 46. 48 Inference: From the research I have found Colorplus is highly preferred among young Professionals. a customer have less opportunities for bargain. of. Which apparel outlet you prefer most for buying clothing? (For children apparel purchasing) a) Lilliput b) Gini & Jony c) Or any other organized or unorganized outlet.Favourite Brands No. 45 b) Ven field c) Adidas d) Reebok e) Kenith Parker f) Color plus g) Derby h) Cotton County i) Or any other organized or unorganized retail outlet Ans. definitely 43 No. Ans. Favourite brands(children apparels) No. 46 Inference: From the research I have found Color plus is highly preferred among college going students. 49 Q.Retailing Scenario No. They also have options like Derby. high prices. They also have options like Derby. people are compelled to buy the apparel at a price charged by the retailer. 51 Q. not at all c) Can’t say anything now. So in this time does it has a good future in India or not? a) Yes. Spykar much. but they don’t prefer brands like Cotton County. TABLE-10 52. Then what you think is this new retailing scenario. less number of choices. I have found that the greater portion of the sample size has no other option other than to buy at a fixed price. Which apparel outlet you prefer most for buying clothing? (To male young professionals) a) John Players b) Peter England c) Derby d) Cotton County e) Color plus f) Or any other organized or unorganized outlet Ans. of Customers Yes. literacy rate is so low. TABLE-7 47. 47 Q. let see in future. Cotton County. Growing western culture in wearing the apparels is yet another reason for the bright future.6. of customers brands Brand Loyal 51 Any Brand. of. 50 Inference: From the Research I have found that parents purchase clothing for their children in Organized & Un-organized retail apparels rather than purchasing it from branded outlets.5.

high level goals for sales. …………………………. MARKS NUMBER OF CONSUMERS GIVEN MARKS IN THIS CATEGORY 10 7 9 17 8 19 7 15 6 11 5 8 4 6 3 4 2 3 1 0 CHART-12 55. So that we can give preference for that particular Brand or category 4. Profitability is the key driver of most businesses. Of. By making sure that our efforts are targeted and attainable. 5.R. What is your idea on when one should start with the Merchandising assortment planning process? We put the effort into Merchandise Planning "in order to increase profitability". 55 TABLE-13 56. …………………………. …………………………. Can I have some inputs on merchandising assortment planning for lean Sales? We can give some offers to that particular Articles or make it as bundle offer like 1 Plus 1.Balajiram Designation: Adidas Retail Store Manager (Purasawalkam) Contact number: 9840354893 59. 57 Inference: From the research I have found that Colorplus holds a strong brand recall which inturn adds to the brand value. ………………………….11. 1. 2. Can I have some inputs on merchandising assortment planning for lean Sales? Buy 1 get 1 free. we can be sure that our starting point is a good one. margin and investment for the business.5 Experts mail interview: 58.. At the end of the day though. 59 1. then how much will you give? Ans. …………………………. 2. right down to the allocation of space within an individual store for a defined S. we can easily identify in which category the business is making more profit. levis and spykar.. Can you share your views on GMROI and how does it impact business? It plays a major role in Retail Business.O. it is the business requirements that dictate where should start. …………………………. Derby comes next followed by louis phillipe. 2.10. purchase 4 shirts and . 4. 3. By using the concept of merchandise planning in our retail outlet conversion of prospects to buyers is easy and this is how it fits into the business.I..      strictly make their purchasing decision based on the recommendations of others. 58 Mail interview has been conducted with Experts in apparels and Marketing Professionals working in different organizations to get their feedback.. …………………………. …………………………. 4. How do you think that merchandising assortment planning process fits into the rest of the Business? If the assortment process is good enough the conversion of prospects to buyers is easy. …………………………. 3. What is your idea on when one should start with the Merchandising assortment planning process? First we have to know the Depth and Breath of our available stock..K. ………………………….M.. 3. People Colorplus (Esteem look) 36 Derby ( offer price) 27 louisphillipe(attraction) 13 levis (gentle look) 8 Spykar (best fit) 6 CHART-13 57.U. List out the Top 5 Brands that you prefer with specific “Top of Mind Recall” for those preferred brands with reason: Brands Reasons 1. 2 for 1 like tat. Name of the Expert: P. TABLE12 54. More preference can be given to the product which is moving and less preference to the product which is not moving so that it can reduce the space outlet and stock holding pattern.) that can provide invaluable insight into merchandise performance. Can you share your views on GMROI and how does it impact business? Gross Margin Return on Investment (G. 4. Top Brands & Reasons No. If you have to give marks to your favourite brand from out of 10. How do you think that merchandising assortment planning process fits into the rest of the Business? Merchandise Planning needs to span the activities between setting long term.. 54 Q. 56 Q.

How do you think that merchandising assortment planning process fits into the rest of the Business? To increase the sales and profit margin Merchandise assortment planning is useful. Name of the Expert: Dinesh G. Gross margin % gives us a measure of relative profitability without taking into account the costs of stockholding investment. What is your idea on when one should start with the Merchandising assortment planning process? There are two major areas of profit leakage in retail. This enables us to forecast the business at which it credits more profit and concentrate on it. 62 Contact number: 9283161144 1. Aadi sale. The implementation and monitoring of a plan to meet these success factors will hopefully result in the eventual purchase by a customer of a specific item in a store. Can you share your views on GMROI and how does it impact business? In simple terms it tells us how many times over a year we get our stock investment returned with a given margin.Javeed Designation: Store manager of Cotton County Contact number: 9941344980 61. 3. 2. 61 1. stock-holding levels and mark-down percentages. So in order to sustain and to overcome from this leakage is good way to start with Merchandise Assortment planning. Today branded outlets put more offers and compliments to attract customers. Weeks cover tells us how effectively we turned our stock without informing us about relative profitability. Mehta Designation: Manager of Raymond shop in Doveton. be better supported by stock or have ranges expanded or contracted. Name of the Expert: Mr. 3. Firstly lost sales resulting from lack of stock and secondly forced margin reductions due to excessive stock. GMROI is used as an important application in which it gives a greater potential to a product which sells more than other product in specific branch. Name of the Expert: Mr. 2. Can you share your views on GMROI and how does it impact business? GMROI as a potential metric that we might consider in our assortment planning. Can you share your views on GMROI and how . On the other side it gives customer satisfaction. 2. Setting of key performance indicators will lead targets for buying-in margin. Can I have some inputs on merchandising assortment planning for lean Sales? Offers will be provided when there is huge stock E. What is your idea on when one should start with the Merchandising assortment planning process? To increase the profit margin we can startup with Merchandise assortment planning because that will increase the sales and avoid pitfalls. Can I have some inputs on merchandising assortment planning for lean Sales? To attract customers more discounts and offers are given. 3. 60 1. From this we can make better informed decisions as to which should have more space allocated to them. 62. What is your idea on when one should start with the Merchandising assortment planning process? Once the outlets are established and the time we come to know about our customer exact needs and the customer base and their capabilities of the customer in that locality we could go in for the merchandising assortment planning.ship” logic to push excess inventory.Srinivasan Designation: General Manager of Hi-style 60. End-of-season “must.   pay the highest amount among the 4 shirts etc and a good customer service that satisfy customers. How do you think that merchandising assortment planning process fits into the rest of the Business? The MAPP fits almost the same way for the rest of the business except for we do more for merchandising the Brand name rather than to the assortment in the capital business. How do you think that merchandising assortment planning process fits into the rest of the Business? To control the business critical success factor will be defined and achievement against these will be measured using Key Performance Indicators. 4. 4.g.

Can I have some inputs on merchandising assortment planning for lean Sales? For lean sales. in a single outlet a range of various styles in various sizes in various colours product is available. fashion/trends. quality. The main thing which researcher found about customer’s perception about it that they said. we can do. 63 Designation: Carl Zeiss India Chennai Branch Service Manager . a sense of grace in them. If it happened that fashion will become outdated then companies will also provide full support to these outlets and they share loss also with them. so why not we go for a discount store. Customer’s preferences about it. According to him because now in market all companies are providing a good and similar quality. Definitely the ROI is seen growing and achieved faster. for these retail outlets. Clothing is one of the basic needs of a common person.  And Mr. Retailers are very much aware about this and they are making their all strategies according to it. And in apparel segment.” Said by Sathish and Ajay. So it is too difficult to keep a wide number of varieties in their stores for retailers.e.South Contact number: 9340043773 CHAPTER . Some factors which are continuously affecting every business. And fashion remains for a little time of period.e. even small players and traditional shopkeepers also now adopting these strategies to attract and retain customers.  There are so many factors which came in front of taking these decisions i. Merchandise Assortment planning. And it will increase more and make a brand leader of this segment only by adopting some latest strategies i.Jambukeswaran 63.  Now a customer can find all those features and product which he thinks.  A tea-staler in front of Peter . As researcher have taken interviews from some executives from various apparel outlets. “When we wear any branded apparel then automatically they feel a sense of satisfaction. 64 FINDINGS Business is like a coin that termed as a coin which has two sides. And after considering these all. healthy life-style. globalization. retail trends. from that collected data and analyzed that.5 FINDINGS 64. brand name. So they are very much considering merchandise assortment planning and other benefit providing by apparel companies to them. they are Growing economy.  Basically apparel industry is based on latest fashions and trends. (apparel segment) 65. As fashion become outdated their stock of inventory will become waste. inflation. price.About retailers. this is a sector which is definitely going to make profit. good customer service. technical advancement. financial objectives etc. considering one side as bane and other side as boon. retailers choose the best product mix for their outlets. these business persons are finding some new and effective ways to overcome these problems. 4. high customization.   does it impact business? The impact is it enhances the growth of the business as this makes easy and comfortable for the customers to choose their preferences according to their needs with spending less amount of time. in a single store only because of these planning. Krishnan said they prefer mainly the discounts or any offers in outlets. increased guarantee and couple it with some good sales. apparel companies are also providing support to them so that they can make profits for themselves and for company too. So we can say this is a golden period for business world. Name of the Expert: J.  And it is not a story of only big giants. make customer feel the value for the money paid. it is world’s biggest business industry. increasing income levels. more discount. For example. So in every circumstance.  In merchandise assortment planning. But on the other side because of increasing competition. compliment sales. 65  Before these decisions a retailer considers so many other factors too like sales targets. looks.

as a brand ambassador of John Players.  While young business persons and professionals prefer Colorplus.6 SUGGESTIONS 68. why cannot they provide just one floor for parking?" wonders a shopper.  To be more precise Apparel outlets can use Software for Merchandising Assortment planning because that will increase the Sale and reduce time when it is done automatically. price. Arokia swamy said he also wears Peter England shirts and the store owner also provides him a high rebate for it and in this he feel more confident. they will found more varieties and apparel categories then a branded outlet and they can make here a high bargaining also.  But mostly youth/ college going Students of Chennai prefer Colorplus and Spykar Outlet for apparel purchase.  Mr. so today even so many branded outlets are here in market then also mostly people prefers traditional outlets for purchasing apparels. Deepak said he prefer the goodwill/ brand name for purchasing any new apparel. Customers have several problems regarding some products and service offered by the retailers. he also prefers John  Range of clothes differs from one outlet to another outlet of the same brand and so perception of customer gives bad credit to the brand.htm . And researcher found that Merchandise assortment is a vital need for them.  Miss Anitha said when John Players launched their new segment. After adopting these strategies now they are feeling the change in terms of customer base. in terms of brand equity.  But if we see overall result. 66.(Mostly people think this) So researcher analyzed so many important and some funny aspects also but these all analysis shows the booming stages of retailing in India.  The parking space should be extended because customers feel discomfort when they park their vehicle outside. Mr. Shah. in terms of profits and in terms of happiness. 67. 67 CHAPTER . Derby and John Players for apparel purchase. ("When these apparel shops can have more than six floors to showcase their products.  In Chennai youth is aware about the National & International brands but due to tough competition with Unorganized Apparel outlet so companies should expand their branch and distribution networks. 66 Different customers have their own demands and needs so their preferences also varied from each other. The following strategies will help the retailers to retain their existing customers. Miss Players.  And according to Mr. a surprising result came after research that is mostly parents prefer traditional outlets for children’s apparel purchasing. One thing is that also these branded clothing is available in these unbranded outlets too and on these unbranded outlets.  And in children’s segment. quality.addressed in Hindu Business line internet Edition.   England outlet. As he said he prefers Peter England and John Players more than Kenith Parker or Cotton County. So the company should take decision to make it available in all the branches to satisfy the customers. Because in these outlets.). from that time she prefers Miss Player’s outlet for a new purchase. And for these retailers so many things are important for making profits as brand name. brand ambassador. customer found these clothing at much cheaper rate then their own brand’s outlet. which the apparel outlets should overcome. 68 SUGGESTIONS During the period of my extensive research I have come to know that there are few weaknesses in the Apparel outlet.thehindubusinessline. Source: http://www. displays/advertising. discounts and categories of merchandise. because of Hrithik Roshan.

Increase in the number of footfalls will lead to increase in sales.8 CONCLUSION 72. 72 CONCLUSION From all findings collected I have reached to the conclusion that in this quick-moving environment. So companies should promote their brands by endorsing the Celebrity whose personality is matching with the brands.     69. So if any company wants to alive here and want a long-term business then they have to fulfil all demands of customers and follow all required patterns either it is a big giant or a small business unit. 73. Shopping.7 RECOMMENDATIONS 70. It builds a little visual anticipation.due to very high prices of some international brand consumer is not able to afford that particular brands . Today’s scenario has totally changed from past. Aggregate level picture may be misleading. Now market is totally customer-centric and highly competitive. parents prefer traditional outlets mostly. And this high retailing scenario affects traditional unorganized outlets business too and now they are also giving a high competition to these organized retailers. ∗ And in children’s segment. CHAPTER .  It is also observed that in the changing retailing environment. hence a marketer has to address family sensibilities more rigorously to woo Indian customers. appropriate technology and relevant organization capability would be crucial to success. For this Apparel outlets can either offer more discounts or increase their advertisements. now retailers also have realized that they need to work strategically for their survival.∗ Spykar is most famous between college/school going youths. 69  The number of trial rooms available at Apparel outlets is very less as compared to the number of people coming. While there are obstacles. understanding the psyche of customer is critical to success in retailing. That’s why now they are taking merchandise assortment decisions seriously and spending their time and efforts for it. So for keep . And it is vital for them to consider it also before doing any business. Now in Chennai all branded items available only because of emerging market situations and customer-friendly market.  Most of the youth make the decision of buying the apparels when they aw that celebrity is using & wearing that particular brands like john player brand is promoted by Hritik Roshan. It is not only for apparel industry but now for every business segment it is necessary. which is more of cognitive than physical. 71. astronomical sums provided their needs are satisfied. Hence. This usually results in long queues and waiting by customers CHAPTER . scalable processes. She/he is ready to pay. as it averages the beats and the valleys. 70 RECOMMENDATIONS  Consumer of the Indian market are very price conscious . In such a scenario. preparedness of Indian retailers in terms of having appropriate formats. 71  Allowing more space between the entrance of a store and a product gives it more time in the shopper’s eye as he or she approaches it.  Indian consumers are still family-driven companies should make some of the stuffs of apparels available at the affordable price as per the geographical regions. there are clear opportunities in modern retailing in India. sometimes. ∗ Colorplus is most favourite brand for Professionals. 73 And if we talk about favourite brand of Chennai people then on the base of research findings.  Indian customers have become more sensitive to quality. And all other brands are still there in market and fighting each other for attracting more and more customer market towards them. we found that. individual understanding is desirable. customer service and status.  To increase more footfalls more promotional activities must be carried out. entertainment and eating out are family events. They are basically looking for an experience. Since these decisions are normally group decisions.

org • www.koutonsindia. How often your plans change? 9. most. 76 • www. Are you facing any kind of problems or difficulties for these decisions and planning because I think in a city like Chennai.a) Any traditional store (unbranded) or b) A branded retail outlet. less knowledge and what .)  Spykar  Ven field  Adidas  Reebok  Kenith Parker  Colour Plus  Derby  Cotton County  Or any other organized or unorganized retail outlet 5.As this project study is totally based on detailed research on topic Merchandise Assortment Planning so here researcher has used open ended and free response questions in 78. Cases of Retail Management.managementjuice. But ultimately these all things are going in favour of customers and customer will be benefited at • www. 77 Appendix-1 Questionnaire for Retailers. Are all decisions related with your outlet’s merchandise are independently taken by you or is there any support by brand owners as well? 8.adidas. 2. Are you satisfied with the services and varieties of products provided by these apparel outlets? 79.prenticehall.lilliput.businesscases. high prices. 79 a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied 4. • www. Is it important to make a prior planning or strategy for merchandise decisions? And if yes then why? 6.9 BIBLIOGRAPHY 75. a customer have less opportunities for bargain. • www.nic. all organized and unorganized retailers are facing a high cut-throat competition with each other.montecarlo. Which apparel outlet you prefer most for buying clothing? (To young • www. 74 CHAPTER . From where you prefer to buy your apparels. Tata-McGraw Hill • • www. Do you think in organized retail • www.Please go by priority: a) • www. Retail Management. Retailing Environment in India. IIPM Library. Which apparel outlet you prefer most for buying clothing? (For children apparel purchasing) o Lilliput o Gini & Jony o Any other organized or unorganized outlet 7.cottoncounty. it is not possible to stock extensive variety and neither you can be content with a limited range . List of websites articles.How is this situation addressed? • 76. What are the important strategies you are adopt? 5.researchindia. IIPM Library III. PrenticeHall Publications. Retail Management • www. Tell me something about your outlet and brand’s you deal? 2. Do you like to give any other specific inputs or details. please do specify.customerresearch. b) Variety c) Quality d) Fashion/trend CHAPTER-10 APPENDICES 77. What are your target markets and what do you do to address these markets? • • www.) o John Players 80. 80 o Peter England o Derby o Cotton County o Color plus o Any other organized or unorganized outlet 6. Which apparel outlet you prefer most for buying clothing? (To college/school going youths. 78 Appendix-2 Questionnaire for Customers. Before taking decisions about your product varieties and range (Merchandise Assortment Planning).oxemburg.       their presence with a great margin of profits also.priknit. HAPPY RETAILING • www. 75 BIBLIOGRAPHY List of books and articles.indiainbusiness. less number of choices.rbk. that aren’t covered in this questionnaire/interaction? If so. those • www. What factors do you consider before making a purchase decision. what factors do you consider? 4.I.answers.• • www.

not at all o Can’t say anything now. ………………………….     other factors influence a customer preference? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………….. 2. a valuable suggestions and corrections for literature review and data analysis RESPONSE SHEET-3 1) Name: V.S 84. ………………………….Arun Kumar 2) ID Number: FW79/01109/MKT 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. people are not so much aware about new retail concept. 5) Date when the Guide was consulted: 06.09 6) The outcome of the discussion: • Framing questionnaire • Analysis 7) The Progress of the Thesis: 1st discussion of thesis.. List out the Top 5 Brands that you prefer with specific “Top of Mind Recall” for those preferred brands with reason: Brands Reasons 1.. literacy rate is so low.. So in this time is it has a good future in India or not? 81.Arun Kumar 2) ID Number: FW79/01109/MKT 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): Framed the Questionnaires and External guide has approved it.06. …………………………. Muralidharan S. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): Please attach the same 5) Date when the Guide was consulted: 15.. 83. 5.Arun Kumar 2) ID Number: FW79/01109/MKT 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. o Any brand no matter. …………………………. 5) Date when the Guide was consulted: 24. 85 7) The Progress of the Thesis: 2ndst discussion of thesis. 84 RESPONSE SHEET-2 1) Name: V. definitely o No. …………………………. 10. just like this brand (on the base of past sales and observation) but can switch if found any other good option. then how much will you give? 82..06. 4. If you have to give marks to your favourite brand from out of 10.06. started the thesis based on the input given by External guide Mr. Then what you think is this new retailing scenario good for India? As in India. 82 Appendix-3 Assortment Plan For Boys’ Jeans Style Straight-leg Straight-leg Straight-leg Loose-fit Loose-fit Retail price 999 1399 1799 1299 1599 (in Rs. …………………………. o Nothing like loyalty.Broken twill Over dyed Fabric denim washed Lyera based denim denim Colours Light blue Dark blue Light blue Light blue Blue Black Indigo Black Black Black Black Deep blue Figure: Assortment Plan for Boy’s Jeans at Spykar Source: Data collected from Spykar team. …………………………. ………………………….) Type of Regular Stone Tinsel. 81 o Yes. 83 Thesis Response sheet RESPONSE SHEET-1 1) Name: V. …………………………. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): Collected input to frame the questionnaire. 11. let see in future. just it should satisfy their needs. 8. …………………………. 3..09 6) The outcome of the discussion: Literature review and data analysis 85. So do you want to keep your loyalty with your favourite brand or can switch? o Brand loyal.09 . 9.

09 6) The outcome of the discussion: • Analysis • Getting appointments with managers of apparel brands and making note of their feedback.Arun Kumar 2) ID Number: FW79/01109/MKT 88.06.09 6) The outcome of the discussion: Final report ready 7) The Progress of the Thesis: Final report checked by the faculty. conducting Interviews. 87.08. taking survey. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): Please attach the same 5) Date when the Guide was consulted: 30.   86. . 86 6) The outcome of the discussion: • Analysis • Gaining knowledge to develop Questionnaire 7) The Progress of the Thesis: 3rddiscussion of thesis.Arun Kumar 2) ID Number: FW79/01109/MKT 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. 87 7) The Progress of the Thesis: 4th discussion of thesis. added value to the findings & recommendation and asked to proceed further.09 6) The outcome of the discussion: Findings and Recommendations 7) The Progress of the Thesis: Reviewed by the faculty. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): • Tips to conduct interview. RESPONSE SHEET-5 1) Name: V.06. 4) Questionnaire made to collect Primary Data (in the first or the second response sheet): Please attach the same 5) Date when the Guide was consulted: 25. 88 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. RESPONSE SHEET-4 1) Name: V. RESPONSE SHEET-6 1) Name: V.Arun Kumar 2) ID Number: FW79/01109/MKT 3) The Topic of the study: “Merchandise Assortment for Apparel Outlets and Retail Counters in Chennai to Cater to Customer Preferences”. • Tips to collect secondary data 5) Date when the Guide was consulted: 30.