PREFACE

Now a day, management is an art, which we should learn by heart, and we believe that art by studying it practically rather than reading the books. Management is must for every company, every organization, not only this but also it is must for every person.

The Master of Business Administrator is a professional course, which develops a new level of knowledge & skills and sets & prepares those seeking challenging carriers in the new era of Liberalization, and Globalization. MBA Programme imparts the knowledge of concept & application skills of management.

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

“Think big, challenge conventional wisdom,

Think differently, think long term

Work towards long term objectives

Don’t get disturbed by short term opportunities.

Always aim for the best, nit just in India,

Best in the world

The technology, best equipment, best work

Best workforce

Demand excellence, never compromise.”i

ACKNOWLEDGEMENT

. I would like to extend my gratitude to Mr. Hari Khadka (Chief Manager – Sales &

Marketing), and Limited, without whose guidance and support this project would not have

been completed

I am grateful to Prof.Tushar bhavsar for giving me this opportunity and for being a supportive

and insightful guidance to me.I am grateful toMr.Pankaj Patel for his various inputs and

comments and to being my supervisior.

I would also like to thank Mr. Achal Jain, Marketing Manager, my project guide for his help

and support, which was invaluable for the project. I am grateful to the entire retail team for

their help and interest.

I would specially like to thank all the franchisees and the sales staff at the stores for their

constant patience and support without which I could not have proceeded with my work. I

would also like to take this opportunity to thank all those at the office who made my project

tenure and workspace enjoyable.

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EXECUTIVE SUMMARY

Menswear industry includes garments for boys and youths. Menswear collection is gaining

importance because it features complete, co-ordinated, groups of merchandise, all of which

are produced, sold and ultimately displayed in retail stores under a single brand or designer

name.

Menswear industry is larger and differs greatly from women’s wear just as women’s wear

divides into couture, ready to wear and mass production, so does menswear. Today men’s

interest in fashion has becoming increasingly pronounced and the industry that serves them

has responded accordingly. Generally in India, the trend was that most of the people prefer

buying from convenience neighborhood stores rather than large format retail outlets. Daily

needs products were usually purchased from small stores and from street shop. Convenience

store market is growing rapidly today. Trends in the market are fast changing. Some major

changes in trends are taking place in the convenience neighborhood stores. One of the

important changes is keeping of apparels in the convenience neighborhood stores as

merchandise. In the organized retail, the large variety, segmented customer profile and

changing tastes plays a big role. Selling apparels in a convenience store is no child’s play.

There are two important factors to be considered for making apparel sale in a convenience

store a success - variety and price.

Certain players like Aditya Birla’s more have made an agreement with various apparel

manufacturers to launch their private labels in different categories of apparel. Example,

Kitchen Towel, fridge cover, hand towel, face towel, bath towel etc. Future Group has

entered into small format chain of retail stores for daily needs products. This format is

operating with the name KB’s Fair price (Kishore Biyani’s Fair price).

Aprons, dungarees, shorts and shirts are the apparel products which may induce a customer

for impulse purchase. Men’s wear apparel has yet to prove its strength in this format of

retailing.

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The branded garment is still not kept by most of the players in their convenience stores due to

the high price factor. Functional garments are largely bought off the streets in this country.

Keeping the apparel category in convenience stores market is a game that requires guts and

focused inputs. Remember, this is the market for daily needs.

This research shows that there is a huge potential in the Indian neighbourhood convenience

market because the number of players in the market are still less as compared to the size and

demand of this section

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Table Of ContentsExecutive Summary................................................................................................................................iii

List Of Tables.......................................................................................................................................iiiii

List Of Exhibits.................................................................................................................................... iiiii

List Of Annexures (Or Appendices).....................................................................................................iiix

Abbreviations........................................................................................................................................ iiii

Chapter-1 Introduction...........................................................................................................................`3

1.1 Purpose Of Research Project............................................................................................3

1.2 Company Profile..............................................................................................................3

1.2.1 Historical Perspective:.....................................................................................3

1.2.2 Contribution:....................................................................................................3

1.2.3 Arvind & Environment:..................................................................................3

1.2.4 Arvind’s Business:.........................................................................................3

Organization Chart...................................................................................................................................3

1.3 Research Gap...................................................................................................................3

1.4 Research Objectives.........................................................................................................3

1.5 Problem Definition...........................................................................................................3

1.6 Review Of Literature........................................................................................................3

1.7 Nature And Scope Of Study............................................................................................3

1.8 Research Methodology.....................................................................................................3

Chapter -2................................................................................................................................................3

Shirting & Suiting Business Analysis......................................................................................................3

2.1 Shirting & Suiting Business Division..............................................................................3

2.2 Shirting Division At A Glance.........................................................................................3

2.3 Suiting Division At A Glance...........................................................................................3

2.4 Marketing Division...........................................................................................................3

Chapter-3:-Analysis Of Primary Research..............................................................................................3

3.1 Marketing Objective:........................................................................................................3

3.2 Research Objective...........................................................................................................3

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3.3 Research Design:..............................................................................................................3

3.4 Research Methodology.....................................................................................................3

3.5 Sample Design..................................................................................................................3

3.6 Retailers Information........................................................................................................3

3.7 Demographic Profile Of The Respondents.......................................................................3

3.8 Brand Preference Analysis By Retailor’s And Customer’s Perception.............................3

3.9 Buying Cycle Of The Respondants..................................................................................3

3.10 Suit Assortment Analysis W.R.T.Design,Attributes And Price Range According To Retailor’s And Customer’s Perception...................................................................................3

3.11 Shirt Assortment Analysis W.R.T.Design,Attributes And Price Range According To Retailor’s And Customer’s Perception...................................................................................3

3.12 Trouser Assortment Analysis W.R.T.Design,Attributes And Price Range According To Retailor’s And Customer’s Perception...................................................................................3

3.13 Promotion And Store Location.......................................................................................3

3.14 Payable For Premium.....................................................................................................3

3.15 Reason Behind Less Conversion....................................................................................3

Chapter 4:-...............................................................................................................................................3

Assortment Plan And Merchandise Plan For The Brand “Arvind Intellifabrix”.....................................3

4.1 Exclusive Brand Outlets...................................................................................................3

4.1.1 Flagship Store................................................................................................3

4.1.2 Experience Store...........................................................................................3

4.1.3 Value Store....................................................................................................3

4.2 Merchandise And Assortment Planning...........................................................................3

4.3 Top View Of Planned Layout...........................................................................................3

4.4 Catchment Area Analysis And Store Location Planning..................................................3

Conclusion...............................................................................................................................................3

Suggestions..............................................................................................................................................3

Bibliography............................................................................................................................................3

Annexures ………………………………………………………………………………75…... Onward

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LIST OF TABLES

Table 1.1 Production Capacity

Table-1.2 Main Domestic And Export Buyers Of Arvind Limited

Table 2.1 Production Capacities

Table 2.2 Basic Key data

Table 3.1 General Information about Retailors

Table 3.2 Walk-In and Conversion on Different Occasions

Table 4.1 Ebo Planning And Analysis Sheet -For Ahmdabad City

Table 4.2 Ebo Planning And Analysis Sheet -For Whole Country

Table 4.3 For Assumption

Table 4.4 Calculation Table

Table 4.5 Merchandising Planning In Terms Of Quantity For Flagship Store

Table 4.6 Merchandising Planning In Terms Of Quantity For Experience Store

Table 4.7 Merchandising Planning In Terms Of Quantity For Value Store

Table 4.8 Merchandising Planning In Terms Of Money

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LIST OF EXHIBITS

Figure 2.1 Product Development Process

Figure 2.2 Shirting & Suiting Business Classification

Figure 2.3-Introduction Retail Business Mix

Figure 2.4 Retail Business Mix

Figure 3.1 Retail Outlet Type

Figure 3.2 Retail Business Type

Figure 3.3 Footfall on Different Occasion

Figure 3.4 Conversions on Different Occasion

Figure :3.5 Age Wise Distribution Of The Respondents

Figure : 3.6 Profession Wise Distribution Of The Respondents

Figure: 3.7 Yearly Income Of The Respondents

Figure 3.8 Most Preferred Suiting Brands

Figure 3.9 Most Preferred Shirting Brands

Figure: 3.10 Time wise buying distribution

Figure 3.11 Suit assortment analysis by design

Figure 3.12 Suit Assortment analysis by attributes

Figure 3.13 Suit assortment analysis by price range

Figure 3.14 Shirt assortment analysis by design

Figure 3.16 Shirt assortment analysis by price range

Figure 3.15 Shirt assortment analysis by attributes

Figure 3.17 Trouser assortment analysis by design

Figure 3.18 Trouser assortment analysis by attributes

Figure 3.19 Trouser assortment analysis by price range

Figure: 3.20 Critical factor for increasing the sales

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Figure: 3.21 Promotional attributes

Figure: 3.22 Radio preferences of customer

Figure: 3.23 News paper preferences of customer

Figure: 3.24 Accessories buying along with fabric

Figure3.25 Critical factor to increase the conversion

Figure: 3.26 Tailoring service

Figure: 3.27 Feedback from customer

Figure: 3.28 Payble for premium

Figure 3.29 Factor responcible for less conversion

Figure 4.1 Top view of planned layout of a flagship store

Figure 4.2 Catchment Area Analysis

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List Of Annexures (Or Appendices)Retailer Questionnaire

Customer Questionnaire

Questionnaire Analysis Report Or Sheets

x

AbbreviationsEBO-Exclusive Brand Outlet

DSR-Daily Sales Report

BEA-Break Even Analysis

SQ FT-Square Feet

xi

CHAPTER-1 INTRODUCTION

1.1 Purpose of Research Project

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The purpose of research project is directly linked to the current scenario of the Indian export

and Domestic market in Shirting and Suitings industry. The export industry, which is

declining day by day because of end number of reasons, has to find out ways to sustain or at

least afloat the business. Whatever the reason for decline may be, the companies are striving

hard in trying new and different options for existence

The Objective of Graduation Project is “To make the plan of assortment and merchandise for

the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the

scope of Retail in these segments.” The Specific objectives are:

1. Business Analysis – Shirting and Suiting

2. Retail merchandise plan –Merchandise calendar plan, Assortment planning –

Product/Pricing/Inventory, Category management and Layout planning.

1.2 Company Profile

The Lalbhai group, founded by the 3 Lalbhai brothers - Kasturbhai, Narottambhai and

Chimanbhai - in 1908, has grown to become one of India's most diversified business houses,

with a significant presence in the textiles, ready-to-wear, chemicals and telecom industries in

India. Each company in the group, in its own way, pursues a single mission - to be the

benchmark in its industry. To achieve this, we have tied-up with a variety of companies, all

world leaders in their respective fields

The Arvind Mills Limited

The Arvind Products Limited

Arvind Brands Limited

Arvind Clothing Limited

Arvind Fashions Limited

1.2.1 Historical Perspective:

The Lalbhais are descendents of Seth Shantidas (c.1590-1659), a famous jeweler, financier

and businessman of the seventeenth century. Shantidas is known to have even financed the

mighty Moghul empire and was the first to be conferred with the title of Nagarsheth.

Khushalchand (1680-1748) grandson of Shantidas had saved the city of Ahmedabad from the

marauding Maratha army in 1725 by paying a ransom of Rs. 5 Lakh on behalf of the whole

city.

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The currentsurname is derived from Lalbhai Dalpatbhai the great great grandson of Himabhai

(1785-1858) son of Khushalchand. Lalbhai was born around the time when the first textile

factory in the city went into production. The first manufacturing company of the Lalbhai

family Saraspur Manufacturing Company was established in 1897 which was into producing

cotton yarn. During the intensifying Swadeshi movement the second company Raipur Mills

was established in 1905. Due to untimely death Lalbhai Dalpatbhai the reins of his businesses

were handed over to his young sons including a seventeen year old Kasturbhai Lalbhai.

Kasturbhai is widely acknowledged to be the father of modern Indian textile industry.

Kasturbhai started the first large scale textile mill under the name of Asoka Mills in 1920

with a capital of Rs.12 Lakh at a time when the largest mills in the region were built with not

more than Rs. 5 Lakh. 1930-31 saw the resurgence of second Swadeshi movement coinciding

with the great depression. While different entrepreneurs reacted to the situation differently

Kasturbhai saw this as the decade of prosperity and growth and established the flagship

Arvind Limited in 1931 with an authorized capital of Rs. 25.25 Lakh. Kasturbhai had also

floated mills for families of his three sisters under the name of Aruna Mills in 1928 and

Nutan Mills in 1931. With the expansion Kasturbhai came to occupy the position of the

biggest textile magnate in the country. Few groups could claim to have made such great

strides during one of the worst periods in India’s industrial history.

After continuously successful period of four decades in the pre-independence era, the group

entered into other fields such as dyes, pharmaceuticals, chemicals, etc. The first

diversification started in 1939 with Anil Starch Limited. Atul Products Limited was

established in 1952 for manufacturing textile and other dyestuff. In the same campus as Atul

existed the joint ventures with Ciba-Geigy called Cibatul, with American Cynamid called

Cynamid of India and with ICI of UK called Atic Industries and as the time progressed the

JV partners separated amicably and these companies exist in India today as full

representatives of these global giants.

The group took over the then sick company Ahmedabad Laxmi Cotton Mills Co. Ltd. and

merged with Arvind Limited and the unit was renamed as Ankur Textiles. The unit currently

under Arvind Products Limited is today the country largest organized player in the voiles

market.

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The groupalso invested in Anup Engineering Limited engaged in fabrication and set up Amol

Dicalite in collaboration with General Refractories Limited, U.S.A for manufacturing filter

aids and perlite products.

Apart from the field of business the Lalbhais over generations have contributed to education,

social and religious causes. Lalbhais contribution to education starting from Gujarat

Vernacular Society in late 1800’s to formation of Ahmedabad Education Society, Physical

Research Laboratory, ATIRA and the famed IIM Ahmedabad are just to name a few. Today

Shrenik Lalbhai heads the Sheth Anandji Kalyanji Trust involved in propagating and

maintaining Jain temples in western India a post he inherited from Kasturbhai Lalbhai. Mr.

Sanjay Lalbhai is genuinely committed to the societal causes and is spearheading these

initiatives under the aegis of Sharda trust.

One of the important factors which built up the Group was the close relationship of mutual

trust between the three brothers – Chimanbhai, Kasturbhai and Narottambhai. Despite

Kasturbhai having emerged as the patriarch of the group, there was satisfactory distribution

of property and managing powers with the members of the family. The management of the

companies was distributed between family members who consulted each other under the

leader Kasturbhai. Siddharthbhai the eldest son of Kasturbhai managed Atul Products, while

his younger son Shrenikbhai looked after the management of Anil Starch. Chimanbhai’s

family branch managed Raipur and Saraspur Mills while Narottambhai’s younger son,

Niranjanbhai devoted his time in technical function of Arvind Limited and his elder son

Arvindbhai managed both, Arvind and Asoka Mills.

After Kasturbhai’s death, Arvindbhai son of his brother Narottambhai assumed the leadership

of the Group. The process of expansion and the initiative of restructuring of the Group

however was led by the third generation of Lalbhais under Sanjay and Sunil, grandsons of

legendary Kasturbhai Lalbhai. The major contribution of Sanjay Lalbhai has been that of

overall transformation of the Group culture by induction of highly skilled and qualified

professional managers.

Today Sanjay Lalbhai is the Chairman of the Group and leads Arvind Limited and Sunil

Lalbhai managing the dyes and chemicals business under the Atul Products Limited banner.

The current estimated group turnover is over Rs. 2500 Crore.

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1.2.2 Contribution:

At Arvind, it is firmly believed that a successful company must play an active role in the

development of the society from which it springs. Besides pursuing its business goals, it

should also be responsible corporate citizen. It is because of these beliefs that Arvind is

always on the forefront of extending a helping hand for the needy, downtrodden and for the

society at large.

Arvind has always been actively involved in the educational institution, hospitals and

research institutions of Ahmedabad, its hometown.

It co-pioneered the world renowned Indian Institute of Management, Ahmedabad (IIMA),

and helped set up the Ahmedabad Textile Industry Research Association (ATIRA), and The

Kasturbhai Lalbhai Textile Training Center to develop and enhance the skills of textile

workers.The NarottambhaiLalbhai Rural Development Fund and The Lalbhai Group Rural

Development Fund where founded to undertake special programs for the economically

deprived.

It also assists the nearby villages, through nutritional programs, food camps and the

harnessing of solar energy.

1.2.3 Arvind & Environment:

Arvind Limited commits itself to continually improve our environmental management. It

strives to go beyond the requirements of the applicable environmental laws & other

regulations through:

Optimizing usage of cotton, energy, chemicals & water.

Adopting preventive strategies to reduce the generation of effluents, waste & air

emissions.

Maximizing the recycling of inevitable wastes.

Encouraging suppliers & buyers to become environmentally responsible

Maintaining a safe working environment.

Increasing the green cover.

Training employees on environmental issues.

1) Effluent Treatment Facilities:

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All the production / processing units are provided with adequate wastewater / water treatment

facilities, to meet the requirements of regulating authorities as well as our reputed customers

like Levis, Nike etc.

Arvind Limited at Santej has one of the largest effluent recycle plants in Asia with recycling

capacity 10,500 m3/day. The latest & best of the technologies available in water / wastewater

treatments can be seen in operation in this plant. The Arvind International (division) has

Effluent recycling facilities comprising Chemical, Biological & tertiary treatment and it is of

800-m3/day capacity. The plant also has ISO 9000 & ISO 14000 certification.

Arvind Limited at the main site at Naroda also possess chemical, biological treatment

facilities to treat 10000 m3/day of effluents to meet the pollution control board norms. Ankur

Mills (division) has Effluent treatment plant of 1600-m3/day capacity with chemical &

biological treatment facility to achieve the pollution board norms. Arvind Limited (Garment

exports division) is setting up a new garment unit at Mysore road, Bangalore, along with

Effluent treatment plant of 1450 m3 /day capacity. This plant also possesses chemical,

biological & tertiary treatment facilities to achieve the State Pollution Control Board norms.

The uniqueness of this plant is – all it’s process water requirements will be attained through

recycled sewage water of Bangalore City.

2) Air pollution Control:

Arvind Limited has switched from liquid fuel to Natural gas for all their heating & steam

requirements in order to avoid the air pollution.

3) Solid waste Management:

All the units believe in waste minimization measures. All the ETP plants are provided with

adequate sludge Dewatering facilities. Units at Santej, Naroda, Arvind International & the

upcoming Bangalore unit are provided with Decanter Centrifuges for sludge de-watering. De-

watered sludge is dried in solar evaporation pans for further volume reduction. Waste oil

generated in all the units is recycled. Polythene liners, Discarded containers are disposed off

to the respective buyers.

4) Afforestation & Rain water Harvesting:

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Units at Khatrej & Santej have very good afforestation & green belts. The Santej unit has

more than 1 lakh trees & other shrubbery. Plants like Jetropha (seeds used for Biodiesel

generation) are grown extensively. ETP treated water is used for this plantation so as to

minimize raw water consumption. Beautiful lawns with Fountains are part of the landscape.

At the Santej unit ground water recharging facility is also developed where in yearly about 40

MLD rain water is recharged in to ground water table. Two recharge ponds with a capacity of

about 4000 m3 are made & Rainwater during the monsoon is collected in theseponds &

recharged in to Ground water table.

1.2.4Arvind’s Business:

1.2.4.1Fabric – Denim

Denim has its origin in tough canvas cloth from Nimmes, France (de Nimmes - of Nimmes).

Genoese sailors used this cloth to make rough-and-ready pants that lasted for ever. Called

"Genoese," which in time got corrupted to "Geans" or "Jeans", these trousers found favour

around the world wherever men had to do work that would ruin most other clothes. In the

American Wild West, cowboys practically lived in them, as did railroad workers and farmers.

Arvind’s denim is used to make India's leading jeans brands - Flying Machine, Killer, Levi's,

Numero Uno, Pepe, Texas Jeans, UFO and Wrangler. "Made from original Arvind denim" is

used by all the leading local jeans manufacturers as an indicator of high quality and

authenticity

Arvind also exports denim to over sixty-six countries worldwide. The US forms 31% of our

export market, while the EC and Hong Kong constitute 20% and 24% respectively. Denim

exports constitute approximately 50% of our turnover, and Arvind Denim - which is sold as a

brand and not a commodity - is used to make some of the most desired jeans brands around

the world - Brittania, C & A, Federated, Jordache, Lee, Lee Cooper, Limited, No Excuses,

Pepe, Tillis Pavely and Wrangler.

Behind every well-known jeans label, the quality is of Arvind Denim. The Arvind Mills'

Denim Division was established in 1987 and has since grown into one of the world's largest

denim producer. With a turnover of US$ 180 million, Arvind Denim has a capacity for

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producing 110 million metres per year. The denim is exported to more than 70 countries all

over the world, besides catering to the Indian market.

Technical Excellence has been achieved through:

1) Investments in state-of-the-art European Technology.

2) World class product & design innovation.

3) Assurance of quality and consistency.

Flexible production has been made possible and is reflected through:

1) Lower minimums.

2) Reflection of product/fashion dynamics.

3) Consistency and quality.

Delivery Adherence – on time every time.

Continuous Product Development – new fibres/yarns/finishes.

Strong Emphasis on Design Creation/Modification to suit specific customer needs.

The division believes in the philosophy “On time and in full”, whether it is information,

product quality or order quantity. The design studio attached to the pilot mill is fully

equipped to reproduce customer design samples and also to make customized seasonal

collections. The SAP R/3 module facilitates better and faster material management for our

customers.

Table 1.1 Production Capacity

Capacity Million

Yards/Annum

Total 33.5

1.2.4.2 Khakis:

Arvind has also started the Pants production facility at the existing shirt factory in Electronic

City, Bangalore factory, where 3 lines have been added to produce Pants and other garments

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using piece dyed fabrics. These 3 lines with 240 machines is also producing garments for

Arvind’s own brands in the Indian market and is also doing trial orders for export orders and

has an initial capacity of 1.5 Million pants/ year. This factory is already compliant with many

USA and EU based customers. Arvind is in the process of adding the capacity on Spraying,

Brushing, and Hand Scrubbing etc to meet our customer’s requirements.

1.2.4.3 Knitwear (Knits Business Division):

Today Arvind has made yet another foray- in the manufacture of the finest quality Cotton

Knits in the world. With an investment of US $ 50 million, the plant produces mercerized

fabric in both tubular and open widths. The capacity is phenomenal: 16 tone per day of cotton

knits, 11 tone per day of piece-dyed fabric and 5 tones per day of yarn-dyed fabric.

The product range aims to offer widest choice in both tubular and open widths in single

(Jersey, Pique, Textures, Pointless, Fleece, French Terry, Jacquards in solids, feeds and

automatics) and double (Interlocks, Needle-outs, ottomans, Pointless, Textures, Reversible,

jacquards, Ribs in solids, feeds and automatics, Collars: Plains and Jacquards) knits.

Arvind Ltd. has its knits garment division in Ahmedabad. There are 3 units producing

garments from knitted fabric:- Where one is for making fabrics and another two use for

making garments.

KNITS MAIN BLOCK (UNIT-I)

VADSAR

AMBER

Domestic & Export merchandising available at Avind knits business devision.Major domestic

buyer of arvind mill's are Aditya birla nuva ltd(Madura garment), Big Bazar, Reliance retail

ltd, Cadila pharma, Fritz gaitri marketing & poly, Pantaloon (ratail) india ltd,Hanes brands

apparel india pvt, S.B.I.Polo, Raymond apparel ltd, Liverpool retail ,Sara lee apparel

india,Indian terrian, Shopper,s stop, Ashish associates, Vishal retail ltd, Aditya birla ratail lt..

There are three types of merchandising pre-production merchandising (sampling

mechandising) production merchandising and post-production merchandising. Basic domestic

knits business devision are T-shirt,polo,Women & men's wear bottoms (lower,capri,track

suit),Under garment (lingree,briefs & vest).Places where job work has been taken of arvind

mill's knits garments business devision are K.G.Intimate (inner wear) (Rajkot), Ashish

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Associates(outer wear),cross stitch(outer wear),safferine apparel ltd(outer wear)

(AHMDABAD),Shah knit wear (outer wear)(vapi),embi(tripur)

Table 1.2 Main Domestic and Export buyers of Arvind limited

Domestic buyers Export buyers

1. Madura garments 1. Marks & Spencers

2. Reliance retail limited 2. Joy sports

3. Big bazaar 3. Outer banks

4. Cadila pharma 4. Carrefour

5. Pantaloon 5. Rebook

6. Hanes brands apparel

India limited

6. Adidas

7. SBI polo 7. Hanes

8. Raymond apparel  

9. Liverpool retail  

10. Sara lee apparel India  

11. India terrain  

12. Shopper’s stop  

13. Winner sport  

14. Dim  

15. TSS Bombay rayon  

16. Barcelona  

VADSAR

1) This is a complete unit i.e. having all the facilities for spreading, cutting and garment

production.

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2) All the fabric is supplied to this unit from the SANTEJ fabric division.

3) Spreading and cutting is done only in VADSAR unit of Arvind Ltd and then sent and cut

garment parts are supplied to the AMBER unit for garment production.

4) The unit at Vadsar has double capacity of garment production as compared to Amber unit.

5) There are 16 lines running in 1 shift on the sewing floor.

6) Shift timings in both the units is the same: 7 am to 3.30 pm & 4pm to 12am.

7) It has a highly automotive ETONE System incorporated.

8) This unit produces most popular brands like Marks&Spencer, FCUK, Joy Sports, Reebok

and Outerbanks.

9) Spreading is done with the help of Automatic spreaders (GERBER).

10) Cutting is done with the help of an automatic cutting machine (GERBER).

UNIT PRODUCTION SYSTEM

1) This is the automatic work station that is being used at the VADSAR unit.

2) It is a Japanese work station.

3) It has software for Line Balancing, Operation Breakdown and Allocation of Work system.

4) It can record size wise feeding, shade wise feeding etc.

5) It tells at what speed the work is being done and hence can predict the target i.e. it can take

out the potential production in that shift.

6) Operator efficiency can be calculated very easily.

7) It can be used to easily find out which operation is faulty or it can be used to find out

which operator is not doing the work properly.

8) All the above can be calculated differently for different styles even when all the different

styles are fed simultaneously in the system.

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9) It produces twice as much in 1 shift as compared to what is produce by the manual line.

AMBER

1) It is the smallest of the two garment manufacturing unit and only garment production is

done here.

2) This unit manufactures for major companies – Outer banks & Adidas Reebok.

3) It has a production capacity of approximately half as compared to VADSAR unit.

4) There are 7 lines working on the floor in the first shift and 6 lines working in the second

shift

5) The timings of the shifts are – 7am to 3.30 pm & 4pm to 12 am.

6) Women workers work only in the first shift.

7) Workers are called FLM’s (Front Line Managers) over here and this is a part of the

motivation program of the company.

Yarn ware house

The Arvind Mills surces yarns according to the demand of their customers for knitting. The

Arvind Limited is mainly known for it’s cotton fabric but inspite of sourcing 100% cotton

yarns they are also sourcing Polyester yarns for cotton polyester blend fabric and, modal for

modal cotton blend fabric, spandex for its blend. As per demand of the customer. These yarns

are sourced either in to the form of open ended yarns or in the form of closed ended yarns.

Open ended yarns are coarser (having rough feel) than the ringed yarns because of this reason

open ended yarns are used for the production of the fleeced fabrics.

Instead of the availability of other yarns Arvind KBD till now is primarily focusing on cotton

fabrics and has the expertise to handle yarn counts ranging from 10s to 2/100s.

The main yarn suppliers for The Arvind Ltd. are the Indian companies’ like-

1) Nahar

2) Welspun

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3) Vardhaman

4) Arisht

5) Abhishek and others.

Beside outsourcing the yarns from outside sometimes they go for in house sourcing.

Rewinding Department

Rewinding department is the next to the Yarn warehouse. This department has ten machines

out of which five are for making cheese (term used for the small metal beams on which grey

yarns are transferred for the yarn dying. these machines have been sourced from Switzerland

named SSM (Scharer Schweiter Metteler) having capacity of .Whereas other five machines

are different in their function because they are for transferring the dyed yarns from cheese to

the plastic cones for the knitting purpose.

Dyeing Department

Dyeing department is mainly divided in to two sub departments first one is dealing with the

yarn dyeing and second one is dealing with the fabric dying (for solid fabric).

Yarn dyeing department

Arvind KBD has a daily capacity to produce 8 tonnes yarn dyed fabric.

The dyeing plant has state-of-the-art machinery comprising of 21 Yarn Dyeing

Machines.

The capacity of yarn dyeing machines range from 60 to 300 Kg.

The Dyeing capability is assisted by the Dyeing Lab, which checks the lots for shade

variation with DATA Color Shade Matching System.

The Processing Lab is modeled on the production setup to achieve production results

in the lab itself.

Fabric dyeing department

Arvind KBD has daily capacity to produce 15 tonnes

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There are total 11 SCLAVOS Piece Dyeing Machines (Atmospheric and High-

Temperature Dyeing Machines with auto dosing of chemicals).

The capacity of for piece dyeing machines range from 180 to 720 Kg.

Knitting department

The next department which comes after yarn dyeing is knitting department. Arvind limited is

mainly involved in the production of tubular and open width fabrics. The fabric range

includes Single Jersey, Pique, Textures, Pointless, French Terry, Auto striper, Electronic

Jacquards, Popcorn and Waffles. The Double Knits range includes Interlocks, Needle Outs,

Ottomans, Thermals, Pointless, Textures, Reversibles, Auto stripers, Electronic Jacquards,

Ribs, Fleece- Yarn Dyed and Piece Dyed and Variegated.

For knitting there are mainly seventy seven knitting machines. Out of seventy seven

machines 43 machines are for single jersey, eleven for Auto striper S/J, two for Auto striper

D/j, eight machines are for interlock, three machines for three thread fleece and remaining

nine machines for Rib. The fabric production is performed on the basis of feasibility of the

design of the demanded fabric by the customers.

There is a lead time period for the fabric -

For solid fabric – 35 days

For yarn dyed fabrics it is - 45

For mélange fabrics the lead time period is- 55

TSD laboratory

Arvind Knits Division has the distinction of being the only nominated supplier of INVISTA

(DuPont) Specialty Lycra® Fabrics in the Indian Subcontinent. DuPont has entrusted Arvind

Knits as the only DuPont accredited Readymade Garment Vendor (RGV) source for Lycra®

based garments in India. Arvind KBD has tied up with International Fiber Companies like

Celanese (for Acetate), Lenzing (for Modal), Courtaulds (for Tencel®) and Wellman who

have approved Arvind knits as a Vendor for fabrics made from their fiber. Arvind KBD is a

nominated supplier of fabrics to Nike Golf, Marks & Spencer, Arnold Palmer, Eddie Bauer,

Calvin Klein and Columbia Sportswear.

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Labs accredited by

Marks & Spencer Target In vista (DuPont) 

Finishing department

Arvind KBD has the latest machinery for fabric finishing. Tubular and Open width

finishing is done on Tubetex and Santex ranges respectively.

Arvind lmt. has Compacting lines and Relax Drying routes to cater to varied

requirements. Dornier Singeing and Mercerizing machines are used for process value

addition.

In-house Babcock 8-chamber Stenter is used for superior heat setting (for Lycra®)

and width standardization and application of finishes.

Arvind KBD is constantly updating and developing new finishes and finishing

techniques to add value to the fabric. Some of the finishes that can be provided to the

fabrics are:

Types of Fabric Finishes

Moisture Wicking

Anti Microbial Finish

Outlast

Aroma

Wick-able Soil Release

UV Protection Finish from CIBA

NANO Finish from BURLINGTON

TEFLON Finish from INVISTA

Easy Care-Wrinkle Resistance

Bio Wash / Enzyme Softening

Peaching

15

AIR-DRAPE ™ Finish (for softer handle, and adding bounce to the fabric through Air Beating)

Product Innovation department

To cater to changing market demands, new product innovations are constantly being brought

about. The latest range showcased by Arvind Knits includes:

Arvind KBD has the distinction of being the only nominated supplier of INVISTA

(DuPont) Specialty Lycra® Fabrics in the Indian Subcontinent. Furthering the

relationship, DuPont has entrusted Arvind Knits as the only DuPont accredited

Readymade Garment Vendor (RGV) source for Lycra® based garments in India.

Arvind KBD has tied up with International Fiber Companies like Celanese (for

Acetate), Lenzing (for Modal), Courtaulds (for Tencel®) and Wellman who have

approved Arvind knits as a Vendor for fabrics made from their fiber.

Arvind KBD is a nominated supplier of fabrics to Nike Golf, Marks & Spencer,

Arnold Palmer, Eddie Bauer, Calvin Klein and Columbia Sportswear.

Working towards total in-house solutions, Arvind KBD has also acquired

accreditation for its Laboratory and Testing Facility from esteemed clients like Marks

& Spencer, Target and Invista (DuPont).

Lycra®: Arvind KBD is the only DuPont accredited readymade garment vendor (RGV)

source for Lycra® based garments in India. Arvind over the years has perfected the art of

producing garments with high Lycra® content (upto 13%). Arvind Knits has the capability of

making Lycra®, DO9M, Cool Max fabrics with all feeds and alternate feeds.

Mercerized: Arvind Knits has the capacity and the know-how to produce singles and double

mercerized fabrics with exquisite sheen and handfeel. Arvind Knits is one of the few firms

who can expertly produce Mercerized Lycra® Fabrics. This feat also makes KBD a part of

the elite Supima Club.

Moisture Management Fabrics: Arvind KBD has developed technologically superior fabrics

for moisture management. Moisture Management Fabrics can also be created with chemical

16

treatment to any fabric for e.g. 100% Cotton at Arvind KBD. Currently supplying to Cutter &

Buck, Eddie Bauer .

New Age Fibers: Arvind KBD has been a pioneer in experimenting with, and introducing

new age fabrics made from fibers like Modal, Tencel®, Viscose, Comfortrel, Sensura etc.

Blends: Arvind KBD has the expertise to work on new blends. Production has already been

done on Modal/Cotton, Tencel®/Cotton, Viscose/Cotton, Polyester/Cotton,

Polyester/Viscose, Silk/Cotton and Silk/Viscose and other man made / cotton blends.

Fabric inspection section

When fabric gets ready it goes to the auditing department for quality check. Arvind limited is

very conscious to the quality of fabric and garments manufactured by them. For inspection

they have a separate team called as AUDITING team. Consisting of five to six members. As

for inspection of fabric Arvind limited is following “four point system”. Auditing team has to

justify the quality parameters of the fabric.

17

ORGANIZATION CHARTArvind Limited

Managing Director (Sanjay Lalbhai)

18

Weaving EngineeringAdministration

and

Accounts

Production

Order Management &

Documentation

Administration

Accounts

Banking

Purchases

Production

Order management

Sampling

Documentation

Invoicing

Spinning

HR Deptt.

Processing & Finishing

Quality Assurance

Stores Exports & Domestics

Garment Packages Division

1.3 Research Gap

The Objective of Graduation Project is “To make the plan of assortment and merchandise for

the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the

scope of Retail in these segments”.

The Research gap has been identified in integrating these all together and controlling

elements of brand “Arvind intellifabrix” strategy efficiently to attain Retailer’s long and short

run goals.

1.4 Research Objectives

The Objective of Graduation Project is “To make the plan of assortment and merchandise for

the brand “Arvind Intellifabrix” of the Shirting & Suitings market in India and analyze the

scope of Retail in these segments.” The Specific objectives are:

1) Business Analysis – Shirting and Suiting

2) Retail merchandise plan –Merchandise-Assortment planning

–Product/Pricing/Inventory, Category management and Layout planning.

The situation in the global market is fading, which is affecting India very drastically. Such is

the condition of the international market. Hence, the next option a company can think of is to

penetrate into the domestic market.

1.5 Problem Definition

Improper retail strategies of Exclusive brand outlet of this company with respect to the

competitors.

1.6 Review of Literature

Exclusive brand outlets:-

Premise:-Location

High street with good visibility in a central business district. Facility for parking would be a

plus.Size, Frontage:

Flagship store: A flagship store is expected to be on a high street in a major town with a

population of >10 lakhs. A fabric only shop would be a single plate 2500 sq ft shop, while a

ready-made and fabric shop would be 3500 sq ft in size (preferably single plate). The

frontage of a flagship store should be at least 20 - 25 feet in length.

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Experience store: An experience store is expected to be on a high street in a large town with

a population of 5-10 lakhs. A fabric only shop would be a single plate, 1000 sq ft shop, while

a ready-made and fabric shop would be 1750-2000 sq ft (preferably single plate). The

frontage of an experience store should be at least 20 feet in length.

Value store: A value store is expected to be on a high street in a small to medium town with

a population of 1- 5 lakhs. Any existing shop of >600 sq ft would be considered. In the value

store concept, the existing shop would be used as is without any renovations of interiors.

Sales of certain other categories (women’s, children) would be allowed.

Business potential:

Will be defined based on catchment area, performance of other leading brands in the vicinity

and business plan projections.

Own/ Rented:

The franchisee is obliged to declare to the company whether the premise is owned or leased.

This would be required to work out the feasibility of the store economics.

Profile for Franchisee

Arvind believes in strong and everlasting relationships with its channel partners. With this in

mind, franchisees will be carefully evaluated on several parameters. Aspects that will work

well in favour of franchisees are as below.

Long experience in the textile trade

Good business acumen

Financially sound.

Resourceful, hands on in operation and work force management

Focus & dedication to help grow the business.

Long term vision for growth plan with Arvind

Products

Shirting – 100 % Cotton, CVC, Hatric (cotton blended) & Tresca fabrics( very premium

shirting fabric)

Suiting – 100 % Cotton, Hatric (cotton blended) & other blended fabrics

Denim – 100 % Cotton & Cotton Blended fabrics.

Boxes - Ready to stitch lengths in shirting, suiting and denim fabrics.

It is mandatory that only Arvind products are displayed and sold in the Flagship and

Experience store. For the value store, only product categories other than the above can be

20

stocked and sold. Any deviations from the above will be viewed very seriously by the

company and in cases of gross deviations will escalate to de franchising also.

Margins

Goods will be supplied to the store by the respective distributors operating in the various

syndicates at the prices fixed by the company. The retail prices will also be fixed by the

company and the franchisees are obliged not to exceed the same at any cost.

Security deposit

Franchising involves the license to operate the business using ARVIND brand name and

proprietary marks and hence the need for a security deposit (non interest bearing) to be

remitted by the franchisee to the company.

Deposit for Flagship store – Rs.2.5 lakhs

Deposit for Experience store – Rs.1.0 lakhs

Deposit for Value store – Rs.0.25 lakhs.

Credit

The franchisees will enjoy an interest free credit period of 30 days. They will be entitled to a

trade discount of 10% from the distributors, beyond which they will be charged interest @ 18

% per annum. Frequent delayed payments may result in with holding supplies.

Store Layout

The store layout including front facade, flooring, ceiling, furniture, lighting, tailoring section

& air conditioning will be provided by the company. The cost of the architect will be borne

by the company.

With a view to have an identity and establish universal look, feel, ambience & experience the

design of the store will be standardized. Only material prescribed by the company /architect

to be deployed. (Applicable to Flagship stores and Experience stores)

Company shall bear the cost for the external and internal signages. Company will also bear

the cost of the air conditioning and 50 % of this cost will be recovered from the franchisee in

equal installments over a period of five years.

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Billing and Cash Counter

Cash counter will be manned with a computer and billing equipment. All merchandize to be

bar coded and scanned. Software and operational training to be provided by the company.

Hardware cost to be borne by the franchisee.

Ordering, stocking and display

The franchisee will place orders for the initial purchase with the respective distributors in

accordance to the store layouts and the desired back up stock. Subsequent replenishments and

re ordering will be done on a regular basis from the samples provided by the distributors on

time to time basis.

In case the franchisee faces a problem with the supplies, the same to be brought to the notice

of the company. It is the responsibility of the franchisee to display the goods as per the layout

and ensure that the stocks are properly maintained. Visual merchandising will be a very

important tool for promoting the product and appropriate window display and other props

will be deployed as per themes suggested by the company from time to time.

Only Arvind products can be sold in an Arvind flagship or experience store. This will be

regularly monitored and STRICTLY enforced. Value stores may hold other merchandize in

non shirting and suiting categories. (e.g. Women, children, ready-made)

Administration

The franchisee agrees to hire adequate staff (billing, sales, helper, tailors & security)

depending on the store size and service levels to be offered. The staff will be provided

uniform by the franchisee and the same will be as prescribed by the company.

The company will provide the product training and software handling training for billing &

MIS.

The franchisee agrees to provide all the MIS details as required by the company in the format

and frequency as decided.

Tailoring

Arvind will create an Arvind branded tailoring solution for all franchisee and experience

stores. All franchisees to adopt the Arvind tailoring standards. Fits & style will be

standardized by Arvind. Material will be brought from Arvind.

The company is of the opinion that this is an important aspect of the business module and

hence proper attention be given to the same. The franchisee has to hire a good tailor with

22

sound skills, experience and knowledge and the tailor will have to be approved by the

company. Based on the trends, company will be prescribing the fits, styling and materials to

be used for appropriate garmenting. Manuals & templates will be provided by the company

for effective implementation.

The tailoring charges for the different garments will be fixed by the company on geographical

basis.

Advertising and promotion

Company will provide advertising support covering outdoor, print, audio visual and event

promotions from time to time. Company will decide a budget based on the opening day

purchase which is to be strictly utilized towards local promotion only. The audio visual

advertising expenses will be borne by the company. Franchisees are expected to support the

company in advertising and promotions. This could amount to 4% of sales for a year on year

basis. The costs will be borne by the company to have effective brand building at the apex

level which would also help in leveraging better prices from the respective medias.

Subsequently the same will be recovered from the franchisee on monthly/quarterly basis for

which the company would raise appropriate debit notes.

Incentives

The incentives will be decided based on ideal volumes of each product category. Achieving

the maximum bracket of volume expectations will help the franchisee achieve an additional

incentive which could be between 2% to 3%. Product wise break up of incentives will be

worked out based on the actual sale achieved.

Insurance

It is obligatory on part of the franchisee to take insurance cover for furniture, fixtures &

stocks. Arvind will facilitate the process by tying up with an leading insurance company for

leveraging better premiums.

23

Merchandise Planning

Merchandise Management is the analysis, planning, acquisition, handling, and control of the

merchandise investments of a retail operation. Important terms and methods for merchandise

plan.

Planning Merchandise Assortments

1.7 Nature and Scope of Study

The natures of study are qualitative and quantitative by which we can understand basic

structure of different retail formats and their financial aspects.

Scope of study is for all formats of retailers who are facing above defined problems due to

lack of proper strategy and improper planning.

Natures of the problem defined are strategic and can be over comed by following suggestion

carefully.

This research focuses on integrating and regularly monitoring strategies and controlling

through varies tools. Thus retailers of any format in a fashion industry can take a proper view

of the retailing concept and create a superior total retailing experience.

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Organize the buying process by categories

Organize the buying process by

categories

Set Merchandise financial objectives

Develop assortment plan

1.8 Research Methodology

Research methodology followed is Inductive because the approach followed is logically

drawing the conclusions and inferences.

The second part is based on primary data collection. It will be quantitative. The data being

collected will be sampled & analyzed using correlation & regression the degree of influence

of each factor will be determined. The study has been moreover analytical in approach.

The process followed has been objective and systematic gathering of data, recording and

analysis of data, along with certain suggestions based on the study

25

CHAPTER -2

Shirting & Suiting Business Analysis

26

2.1 Shirting & Suiting Business Division

The Shirting & Suitings division at Arvind Mills is vertically integrated. 70% of the

division’s production is exported either directly or indirectly.

Product Range

Yarn dyed and piece dyed fabrics across a variety of counts

Exclusive range of indigo and sulphur dyed products in high value finer combed

yarns in cotton and cotton lycra

Yarn dyed stripes, checks, fil-a-fils, chambrays and solids in all possible weaves like

Twills / Sateens & Dobbies with a variety of finishes like natural, easy care, anti-

stain, etc.

Drills, Gaberdines, 2 ply Chinos, Canvas, Tussore

Specialty weaves like BFC, Rib, Herringbones, Broken Twills, etc.

All the above products can be offered in conjunction with the following performance finishes.

Surface finishes like mechanical finishes, micro sanded, stiff finish and sponge finish

Chemical finishes like ET (pre-cured and post-cured), anti-bacterial, oil repellant and

water repellent fabrics

The shirting and bottom weights division offers its business partners:

A competitive manufacturing base

A partner with an evolved product range & capabilities

With high versatility and flexibility

Existing knowledge of & presence in Global Markets

Manufacturing Capacity

The Shirting’s Business Division has a total manufacturing capacity of 30mmpa and the

bottom weight Division 18 million mtrs per annum of piece dyed trousering weight

fabrics. Of this 70% is exported world over and to the above-mentioned business partners.

Manufacturing Facilities

27

Arvind Mills has a world class greenfield plant for manufacturing shirting, knits and

bottomweights at Santej, at an investment of USD 400 million. The plant covers a

sprawling 450 acres and is situated near the commercial city of Ahmedabad. It boasts of

an in house power generation that ensures round the clock power supply and an effluent

plant that has the capacity to recycle 97% of the water used at the plant.

Arvind has concentrated on New Product Development. In keeping with fashion seasons

abroad and comes out with quarterly collections of new products much in advance.

Production with a lead-time of a year to a year and a half enables its buyers to plan well

in advance. The Division has an in house Design Studio which is constantly engaged in

churning out new products and concepts as per the marketplace requirements.

2.2 Shirting Division at a Glance

A capital investment of USD 100 million in a greenfield project with a capacity of 33.5

million yards per annum and a turnover of USD 97 million per annum of 100% high value

cotton shirtings has been made at Arvind’s 450-acre Santej textile complex near Ahmedabad.

Technical Excellence has been achieved through:

o Investments in state-of-the-art European Technology.

o World class product & design innovation.

o Assurance of quality and consistency.

Flexible production has been made possible and is reflected through:

o Lower minimums.

o Reflection of product/fashion dynamics.

o Consistency and quality.

Delivery Adherence – on time every time.

Continuous Product Development – new fibres/yarns/finishes.

Strong Emphasis on Design Creation/Modification to suit specific customer needs.

The division believes in the philosophy “On time and in full”, whether it is information,

product quality or order quantity. The design studio attached to the pilot mill is fully

equipped to reproduce customer design samples and also to make customized seasonal

collections. The SAP R/3 module facilitates better and faster material management for our

customers.

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The design studio attached to the pilot mill is fully equipped to reproduce customer design

samples and also to make customised seasonal collections.

The testing laboratories are equipped with the latest testing equipment, which can perform

tests of international standards, and are accredited by Marks & Spencer, Next and Tommy

Hilfiger. All products are Eco-friendly and Oekotex 100 certified.

Table 2.1 Production Capacities

Capacity Million

Yards/Annum

Yarn – Dyed 22.5

Solid – Dyed 5.7

Indigo 4.8

Jacquard 0.5

Prints 4.0

Total 37.5

Production Capabilities

The plant has an integrated manufacturing facility from yarn to finished fabrics under one

roof. The Shirting division is committed to world class quality products, with the installation

of the latest technology and continuous quality improvement program.

Arvind equipped with state of the art technology right from spinning of the yarn to final

processing and testing of the high quality fabric. Arvind equipped to spin compact yarn as

well as slub yarns. The state of the art machinery includes Yarn-singeing machines,

Computerized yarn-dyeing machines, automatic drawing-in machines, etc.Arvind’s testing

laboratories are equipped with the latest testing equipment which can perform tests of

international standards, and are accredited by Levi’s, Marks & Spencer, Next and Tommy

Hilfiger. All our products are eco-friendly and Oekotex 100 certified.

29

Quality Standards

To maintain the high quality standards demanded by its international partners, Arvind has

invested in state-of-the-art European technology that guarantees a world-class product with

design innovation and assures the buyers of quality and consistency. It also maintains a

flexible production schedule that allows for lower minimums and fashion dynamics. In

addition to this, Arvind sticks to the strictest of delivery schedules.

Arvind’s high quality standards have enabled it to get Quality Assurance accreditations by

international names such as Marks and Spencer, Tommy Hilfiger and Liz Clairborne.

Table 2.2 Basic Key data

Total Production Capacity Weaving 1.2 million meters  Processing 1.8 million meters  Outsourcing 0.6 million metersFabric Types Majorly 100% cotton  

 Very Few percent of fabrics in Blends of Tencel and lycra  

Main Weaves Twills (Mainly 3/1)    LHT for Single yarn    RHT for Double/Triple yarn    Matt    Plain    Satin    Tussore/Canvas    Herringbone    Oxford (Plain and Pinpoint)  Counts used Open End 5.4s to 16s Cotton Ring Spun 16s to 2/50s  70 Denier  Lycra Cut fibre and blended yarn  Tencel    Amslan 7s and 10s   Polyester 80/36/350 SD TXTD  Weight of finished Fabric 6oz to 14 oz  Width of finished Fabric 150 – 152 cms  Shrinkage/Elongation Less than 2%  

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Design & Development

We have an in-house Design Studio with a team of qualified professional designers. The

design Studio is fully equipped with latest technologies. We get continuous design inputs on

latest international trends from our designers based in Italy and UK.

Design and Development is an integral part of Arvind’s business. The cell performs the

following functions

Computer Aided Designing

A mini mill has been dedicated for Design and Development.

Sample Sizing & Warping machines for desk loom samples & road samples

Independent weaving for Sample Making

Small Package Dyeing Machines for New Shades

A comprehensive library of shades to enable quick responses in sampling

A Design Creation Cell.

Mini Mill for Design & Development

Capacity of 5 Suzuki & 4 Sectional Warpers, Sizing and 24 looms.

Can produce 30 Sample Yardages and 90 Handlooms / day

Range Collections

Season-wise collections for S/S and A/W.

Customized collections for key customers(based on their concepts/inputs).

Stock Service through the Classic Line Collection.

Facilities

Computer Aided Designing

A mini mill dedicated to design & development

Sample sizing & warping for desk loom samples & road samples

Independent weaving for sample making

Small package dyeing machine for new shades

Comprehensive shade library to enable quick responses.

31

Figure 2.1 Product Development Process

Arvind has concentrated on New Product Development. In keeping with fashion seasons

abroad and comes out with quarterly collections of new products much in advance.

Production with a lead-time of a year to a year and a half enables its buyers to plan well in

advance. The Division has an in house Design Studio which is constantly engaged in

churning out new products and concepts as per the marketplace requirements.

Product Range

Counts : 16s, 20s, 24s, 30s, 2/30s, 40s, 50s, 2/50s, 60s, 2/80s, 2/100s and 2/140s

Blends : 100% Cotton, Tencel, Linen, Modal, Polyester Cotton, Lycra, Silk, etc.

Varieties : Yarn-Dyed Stripes, Checks, Fil-a-fils, Chambrays and Solids in all possible

weaves like twills, satins, dobbies and jacquards.

Chemical Finish : ETI, Stain Free, Odor Free, UV Cut, Arvi silk, Nano-Care, Nano-Pel,

etc.

Mechanical Finish : Peaching, Brushing, Biancalani, etc.

Indigo/Sulphur : Indigo and sulphur-dyed casual products - 3.25 oz. to 8.0 oz. in counts

24s, 30s, 40s, 50s, 2/80s and 2/100s.

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Arvind’s Customers

We supply Shirting fabric all over the world. Our wide range of Customers include some of

the most Prestigious Brands in the world.

USA

A&F, Ann Taylor, Banana Republic, DKNY, Dockers, Eddie Bauer, Express, GAP, Kohl’s,

Lands End, Liz Claiborne, May Dept. Stores, Men's Wearhouse Nordstrom, Oshkosh, Perry

Ellis, Phat Farm, Polo Ralph Lauren, Express Fashions, J.Crew, Roccawear, Tommy

Hilfiger, Brooks Brothers etc.

Europe

Burberry, Facconable, Emidio Tucci, Esprit, FC UK, Marks & Spencer, NEXT, Mavi Jeans,

Speedo, Nicole Farhi, Kenzo, Carrefour, Pull & Bear, Peter Werth, Tom Tailor etc.

India

Allen Solly, Color Plus, Indian Terrain, Park Avenue, Louis Philippe, Manzoni, Van Heusen,

etc.Our Domestic customers include our won Brands like Lee, Arrow, Ruggers, Excaliber,

Flying Machine, Ruf & Tuf etc.

2.3 Suiting Division at a Glance

Arvind has also started the Pants production facility at our existing shirt factory in Electronic

City, Bangalore factory, where 3 lines have been added to produce Pants and other garments

using piece dyed fabrics. These 3 lines with 240 machines is also producing garments for

Arvind’s own brands in the Indian market and is also doing trial orders for export orders and

has an initial capacity of 1.5 Million pants/ year. This factory is already compliant with many

USA and EU based customers. Arvind is in the process of adding the capacity on Spraying,

Brushing, and Hand Scrubbing etc to meet our customer’s requirements.

Product Profile

With the above mix of machinery company specialize in making bottom wears. company

produce basic 5 pockets, boot cuts, flares, engineered jeans, cargos, carpenters and customers

specific hi fashion styles also. We can also manufacture skirts, shorts also.

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World Class Technology

Arvind uses some the best technologies available in the industry. In spinning, Arvind uses

machines such as Trutzschler, Rieter Laxmi, Volkman, Murata etc. Arvind’s weaving

machines are from Tsuodokoma, Picanols, Benninger, Stabuli etc. For processing and Yarn

Dyeing, Arvind uses machines from Kusters, Monforts, Stalam, Thein, etc. and finishing

ranges from Monforts. The company also uses Biancalani machines to impart Aero finish,

and uses microsanding machines from Lafer.

Customer Service

Arvind believe in the philosophy “On time and in full”, whether it is information, product

quality or order quantity. The SAP R/3 module facilitates better and faster material

management for our customers.

2.4 Marketing Division

Shirting & Suiting Marketing involves the market channel activities for following segments:

(1) Exports: (US & Europe)

(2) Brands: (National and International)

(3) Retail: (Domestic)

(4) Ready Made Garments

(5) Ready To Style

(6) Trade

Figure 2.2 Shirting & Suiting Business Classification

34

SHIRTING & SUITING BUSINESS DIVISION

EXPORT RETAIL BRANDSREADY MADE

GARMENT

READY

TO

STYLE

TRADE

Shirting Suiting Business

BRANDS-14%

RETAIL-22%

EXPORT-46%

READY MADE GARMENT-11%

TRADE-4%

READY TO STITCH-3%

EXPORT RETAIL BRANDS READY MADE GARMENT READY TO STITCH TRADE

Retail Business – Marketing Perspective-

Figure 2.3-Introduction Retail Business Mix

Arvind Limited –Retail Business – An Overview

Figure 2.4 Retail Business Mix

The Shirting & Suiting Retail Business is further categorized in groups as

(1) Cotton Syndicate

(2) Suiting Syndicate

(3) CVC Syndicate

(4) Core Product Categories

(5) Ready to stitch

The retail business is the fabric business i.e, over the counter business. The business is further

carried with the various distribution networks across the country.

35

Prints

Y/d – Core

White Kurta

White/ Dyed Core

Shirting Y/D

TR/ PV

Cotton Blended

Piece Dyed

Y/ D Cotton

Whites

Cotton Blended

Piece Dyed

Y/ D Cotton

Fila-Fil Chambray

Traditional Kurta

Whites - Perma

Style Fit Suiting

RTS Shirting

Chapter-3:-Analysis of Primary Research

36

3.1 MARKETING OBJECTIVE:

To find out and analyze the Men’s Wear Category on the basis of Merchandising Mix for

making merchandise and assortment plan for the brand “Arvind Intellifabrix” of Arvind

Limited.

3.2 RESEARCH OBJECTIVE:

To find out the potential market of ahmedabad for man’s wear category.

To study the Product range available in men’s wear category.

To find out the feasible price point in different stores.

To study and analyze the available merchandise of the product category..

To study the consumer perception on the basis of 4 R’s of merchandising.

To make the merchandise plan and the assortment plan for Arvind’s Ebo’s formats

3.3 RESEARCH DESIGN:

Descriptive research, exploratory and casual reaserch.

3.4 RESEARCH METHODOLOGY:

A. SECONDARY RESEARCH:

The aim was to have a through understanding of the current trends in the Indian scenario

along with an understanding of the Men’s Wear segment. Apart from that the consumer

trends and the changing face of men consumer were also studied. Secondary sources of data

were scanned to assist in the study. These included various magazines, journals, internet

archives, and research articles carried out by organizations and individuals.

B. PRIMARY RESEARCH:

This will include visit to all the stores which are prominent, personally. Their

merchandise will be analyzed for its Right Price Points, Right Product ,Right place , Right

People and Promotion.

Consumer and Retailer Survey using structured questionnaires.

SCOPE:

37

Geographic: The catchment area selected for study was company owned and franchise stores

of Arvind and it’s competitors.

3.5 Sample Design:

Sampling unit:

This unit is constituted of customer visiting the different retail format.

Sampling methods used:

Non-probability approach.

Convenience Sampling Method

Quota Sampling Method..

Criteria of survey

Location of the store

Income group of the customers

Survey Technique

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

Sample size

The sample size was 120(Retailor-20, Customer-100).

Analysis and Interpretation

Analysis was carried out using

Microsoft Excel

SPSS

38

3.6 Retailers Information

Figure 3.1 Retail Outlet Type

From interviewed all retailers, 75% outlets are owned retail stores, followed by 17 % rented

stores and then 8% leased stores. It indicates that all the retailers are doing good and running

in profit. All stores are located on the major hot spot locations of the Ahmedabad.

Figure 3.2 Retail Business Type

As it is very clear from the above diagram that 36% retailers are franchised type while next

category is of licensed type retailers comprises of 29%.

39

Table 3.1 General Information about Retailors

  General Information S.No. Retail

Outlet Name

Location Person In-Charge

Retail Outlet Type

Retail Business Type

Retail store type

Space (in sq ft)

Since

 Contect No  

1 Rangoli Bhuyandev Char Rasta

Deepak Nanawati

Own Licensed Value 675 1985 9979590059

2 Rangoli Next

Vastrapur Lake

Deepak Nanawati

Own Licensed Value 700 2009 9979590059

3 Shri Radhe

Krishna

Swastic Char Rasta

Pratik Patel

Own Franchised Value 800 2001

9428104785

4 Krishna Naranpura Hemal Patel

Own Franchised Experience 900 1990 9825312272

5 Ratnam Shivranjani Charrasta

Jitu Shah Own Franchised Value 550 2000 9825978478

6 Shalimar Ellisbridge Irfan Own Franchised Value 600 1992 26576999 7 Count

Down C.G.

Road,Stadium Circle

Rakesh Kothari

Own Licensed Value 750 1995

6449885

8 V & U Ashram Road Vikram Shah

Leased Franchised Experience 1300 1985 079-26587282

9 Tilat Relief Road Babu Bhai Own Franchised Value 550 2002 22138813 10 Amrutha

Selection Maninagar Charrsat

Sureshbhai Patel

Own Licensed Value 750 1995 30473066

11 Decent Tailors

Thaltej Govind Bhai

Own Licensed Value 600 2000 65417140

12 Decent Tailors

Paladi Jayesh Bhai

Own Licensed Value 700 1998 65417139

13 Factory Outlet

Naroda Lal Bhai Own Franchised Flagship 3000 1980 22202265

14 Factory Outlet

Shantej Lal Bhai Own Franchised Experience 1500 1990 02764-255100

15 Raymond Shivranjani Charrasta

Digant Rented Company Showroom

Flagship 5000 2009 9879556533

16 Vimal C.G. Road Mr Ajay Own Company Showroom

Flagship 8000 1990 9909978100

17 Grasim C.G. Road Abhay Shah

Own Franchised Value 500 1999 9824062397

40

18 Birla Centuary

C.G. Road Rakesh Shah

Own Franchised Value 600 1981 9327024552

19 Reid & Taylor

C.G. Road Vinod Mehata

Own Franchised Experience 1000 1997

20 Jade Blue

C.G. Road Vipin Chauhan

Own Company Showroom

Flagship 12000 1995 9824022777

Table 3.2 Walk-In and Conversion on Different Occasions

S.No.

Retailer

Name

Spa

ce

Weeekdays Weekends Seasons Festivals

WA

LK

-IN

CO

NV

ER

S

AV

ER

AG

E

SA

LE

/CU

S

WA

LK

-IN

CO

NV

ER

S

AV

ER

AG

E

SA

LE

/CU

S

WA

LK

-IN

CO

NV

ER

S

AV

ER

AG

E

SA

LE

/CU

S

WA

LK

-IN

CO

NV

ER

SIO

N

AV

ER

AG

E

SA

LE

/CU

S

1 Rangoli 675 12 90 700 16 95 700 19 95 800 26 95 1000

2 Rangoli Next

700 15 90 700 20 90 700 40 90 800 50 90 1000

3 Sri Radhe Krishna

700 25 30 600 30 40 600 40 50 800 40 50 800

4 Krishna 900 30 50 1200 40 60 1200 45 60 1200 60 80 1800

5 Ratnam 550 15 90 800 25 90 900 35 90 900 40 90 1000

6 Shalimar 700 15 95 600 15 95 600 50 95 900 50 95 900

7 Count Down

750 20 95 600 70 95 800 100 95 900 200 95 1000

8 V & U 1300 30 50 800 50 50 800 50 50 800 60 50 1000

9 Tilat 550 20 90 800 20 90 800 50 90 1000 50 90 1200

10 Amrutha Selection

700 15 80 1000 20 80 1200 25 80 1500 35 90 10000

11 Decent Tailors

600 20 50 1200 25 50 1200 30 50 1500 40 50 1800

12 Descent Tailor

700 25 30 600 30 40 600 40 50 800 40 50 800

13 Factory 3000 50 70 1500 60 80 1700 70 80 2000 100 80 2500

41

Outlet

14 Factory Outlet

1500 30 50 800 50 50 800 50 50 800 60 50 1000

15Raymond 5000

100

90 1000 125 90 1200 130 90 2000 150 90 3000

16 Vimal 8000 20 40 1000 30 50 1500 40 60 2000 50 60 2500

17 Grasim 700 15 80 1000 20 80 1200 25 80 1500 35 90 10000

18 Birla Century

600 20 50 1200 25 50 1200 30 50 1500 40 50 1800

19 Reid & Taylor

1000 80 50 1800 95 50 2000 120 70 2500 160 80 3000

20 Zade Blue

12000

30 90 1500 40 95 1500 50 95 1500 60 95 2000

42

Figure 3.3 Footfall on Different Occasion

There were four different occasions when retailers footfall can be monitored and this way

their conversion also.Like footfalls on weekdays, footfalls on weekends, footfalls on

seasons,and footfalls on festivals also.Footfalls on last two occasions are always almost same

and much higher than normal weekdays and weekends. No doubt people spent much more on

festivals and special seasons like wedding or parties etc. Therefore it is very important to

deciding timing for the sales promotions. Since during festivals and seasons there is no need

of such promotions or at least less can be spend on this scale.

43

Figure 3.4 Conversions on Different Occasion

During festivals and seasons most of the retailers show that there was almost 90 to 100 %

conversion rate. However this rate is not same on normal days. So, off season promotion is

required for generating more footfalls and ultimately full conversion also. Only then there

seems a true requirement of the full proof strategy for the sound promotional schemes for

improving sales and strengthening brand value also. Although promotional activities can be

executed throughout the year but their foci may vary even should vary as per requirements

and need.

3.7 Demographic profile of the respondents

Age, Profession and Yearly Income:

Age, profession and yearly income groups distribution of the respondents was carefully

monitored so as to have a better representation from age, profession and yearly income

categories representing the target segment of the brand. Also the proportion of various age,

profession and yearly income group of customers visiting the store in the given market was

kept in mind.

Figure: 3.5 Age Wise Distribution of The Respondents

44

Accordingly, age group between =<30years constitutes only 3% of the total sample size. Age-group

above 35 years constitutes almost 85% of the total

Figure : 3.6 Profession Wise Distribution Of The Respondents

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

Figure: 3.7 Yearly Income of the respondents

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

3.8 Brand preference analysis by retailor’s and customer’s perception

Figure 3.8 Most Preferred Suiting Brands

45

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

Taylor and vimal

Figure 3.9 Most Preferred Shirting Brand

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

and Birla Century

3.9 Buying Cycle Of The Respondants

46

Respondants usually visit for buying in 6 months and functions

Figure: 3.10 Time wise buying distribution

3.10 Suit assortment analysis w.r.t.design,attributes and price range according to retailor’s and customer’s perception

Figure 3.11 Suit assortment analysis by design

Suit :- plain is the most preferred in look and design. 81% customer goes to plain. Stripes is second

most like suit among all customer and third choice is Checks.

Inferece:- Assortment plan of the suit should be like this graph , have to more value to olain , stripes

and checks respectively.

Figure 3.12 Suit Assortment analysis by attributes

47

In case of selecting the suit, Quality does matter much than the other attributes. Color. Price and

design are secondary but more respective factor for make last buying decision.

Figure 3.13 Suit assortment analysis by price range

Most buying range of suit piece is 2000-2800 Rs and 2800-4000 Rs. Customer mostly goes for high

range in case of suit, which is showing the money value.

3.11 Shirt assortment analysis w.r.t.design,attributes and price range according to

retailor’s and customer’s perception

Figure 3.14 Shirt assortment analysis by design

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

Figure 3.15 Shirt assortment analysis by attributes

48

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

Figure 3.16 Shirt assortment analysis by price range

Generally most preferred buying range of shirt is 500-700 Rs. And second most 200-500.

High premium and luxury range customers are 15 and 8 %

49

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

Figure 3.17 Trouser assortment analysis by design

Trouser :- the choice of trouser is almost same as suit, the plain most like by customer. 95% like

plain. And stripes are most favorate in buying of trousers. It contribute 24% part of buying

trouser.

Trouser is bottom weight, have quality on first and color, design and price are secondary factor

to make final buying decision. This all show that what attributes are most responsible for

buying of fabric and making decision.

Figure 3.18 Trouser assortment analysis by attributes

Figure 3.19 Trouser assortment analysis by price range

50

700-1200 is most preferred buying range. 300-700 and 1200-1800 is second and third most buying

range.This all above price range indicate the price planning for merchandise and assortment

3.13 Promotion and Store Location

Figure: 3.20 Critical factor for increasing the sales

Brand name, Discount and offer, Location of store and events & promotion events are most

critical factor for selecting a buying destination. Means more focus on these tools will increase

the walk-ins as well as sale

Figure: 3.21 Promotional attributes

51

News paper, TV, and hoardings are most coverable tools for promotional media . These tools of

media to promote sale are more effective than other media.

Figure: 3.22 Radio preferences of customer

Radio FM channel : radio mirchi is most listening music station so it cover most customer to

advertise the promotion offer.Other FM Chanel are second preferred channel

Figure: 3.23 News paper preferences of customer

52

TOI is most readable news paper, which will be an easy and economical source of the promotional

activities and offer and discount promo.

Figure: 3.24 Accessories buying along with fabric

The most buying accessories along with fabric are perfumes, ties, belt wellet and hanky. This item

increase the average sale/customer. It help in walk-ins and ambience and a look of the store.

Investment are less but it help in good sale and increase of conversion.

Figure3.25 Critical factor to increase the conversion

53

customer liking during buying and working factor to increase the conversion are Free gift, instant

discount .

Figure: 3.26 Tailoring service

Tailoring :- Tailoring service is most critical factor to increase the walk ins, sale and as

well as conversion. Customer prefernce is increasing towards customized tailoring

Figure: 3.27 Feedback from customer

Retail

54

ers are getting feedback via orally method. There is much chances for loyalty program. Which

also can increase the conversion and walk-ins

On providing all attributes in a full suit length like finish, feel, design, color, pattern than how

much they can pay? 9000-18000 is the price range in which they would like to go. So here we

can develop a full suit (shirt and trouser) concept in this price range.

3.14 Payable For Premium

Figure: 3.28 Payble for premium

3.15 Reason behind less conversion

Figure 3.29 Factor responcible for less conversion

55

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

56

Chapter 4:-

Assortment Plan and Merchandise Plan for the Brand “Arvind Intellifabrix”

57

Arvind have plan for opening new EBO store for fabric selling. They have plan to open EBO in the form of Flagship , Experience and Value store.

The follow tables are showing the planning of merchandise and assortment and daily sale

report. And also these follow tables are showing the sales report along with the break even

month and breakeven days and year.

4.1 Exclusive brand outlets:-

Premise:-Location

High street with good visibility in a central business district. Facility for parking would be a

plus.

Size, Frontage:

4.1.1 Flagship store: A flagship store is expected to be on a high street in a major town with

a population of >10 lakhs. A fabric only shop would be a single plate 2500 sq ft shop, while a

ready-made and fabric shop would be 3500 sq ft in size (preferably single plate). The

frontage of a flagship store should be at least 20 - 25 feet in length.

4.1.2 Experience store: An experience store is expected to be on a high street in a large town

with a population of 5-10 lakhs. A fabric only shop would be a single plate, 1000 sq ft shop,

while a ready-made and fabric shop would be 1750-2000 sq ft (preferably single plate). The

frontage of an experience store should be at least 20 feet in length.

4.1.3 Value store: A value store is expected to be on a high street in a small to medium town

with a population of 1- 5 lakhs. Any existing shop of >600 sq ft would be considered. In the

value store concept, the existing shop would be used as is without any renovations of

interiors. Sales of certain other categories (women’s, children) would be allowed.

58

Table 4.1EBO planning and Analysis Sheet -For Ahmdabad

59

Table 4.2 EBO planning and Analysis Sheet -For whole country

60

61

The above table is showing the EBO planning. The violet color cell is variables and remaining are calculated data. The above table is developed to calculate the initial cost, operating cost, sales projection and sales per square feet, and to find out the net profit and calculate the breakeven point in days , month and year. The assumption and calculation are done according to below tables. From the above tables, it is inference that the no of store is does not matter to achieve the breakeven point, Average sale and conversion are most critical factor to get breakeven point early. The preparation of the above table have following variable and formula`s.

Table 4.3 For assumption ( the assumptions are made on the basis of management discussion and market study)

S.N. Assumption Remarks

1 AreaArea is according to kind of store, may vary,

according to availability

2 EBO per stateThis is depend on city location and necessity

according to potential market

3 Rent Rent may vary according to place and location

4 Staff salaryAssumed according to kind of store and space of

store

5Electricity , telephone bill and

stationary expenditureThese may vary according to place and usage and

kind of store

6 ShrinkageIts priflage value in money, is showing kind of

losses,

7 Average sale/ day Assumption according to market survey

8 Walk-ins and conversion Assumed according to market study

9 1 month28 days (assumed that 2 day is closed in a month,

not fixed)

10 Sale mark up 120% of original cost

62

Table 4.4 Calculation Table

S. N.

Terms Formula

1 Total Cost (a) Total investment cost + total Initial cost

2 Total Space No of store* space for one store

3 Total cost (b)Rent+Intrest+ Bill( Electricity, telephonr, stationary etc)

+other cost

4 Conversion Walk-ins*conversion ratio

5Average

Sale/month/total store

Average sale/day*28*no of each store

6Break even in

monthsTotal cost of store opening (a)/Total net revenue earn

7 Break even in days Break even in moths*28 ( 28 working days in a month)

8 Net revenue Total sale - total cost(b) – per month merchandise i/p cost

9 Sale/sq ft Total sale/ total space available

10 i/p merchandise Sale/2.2

4.2 Merchandise and assortment planning :

The merchandise and assortment planning of Flagship, experience and value store is done on the basis of primary research. By the market retailer and customers survey. The planning is given according to customer and retailers preference and buying power. The merchandise planning is divided in ratio according to retailers optimum value of merchandise and fabric assortment planning is done on the basis of fabric attributes. To make the optimum availability and to make maximum merchandise availability . The calculation is done on the basis of percentage of total no. and the ratio divided among the merchandise Shirt, Trouser, bottom weights, readymade and accessories. The below tables are showing the items ratio in percentage.

Table 4.8 Merchandising planning in terms of quantity for flagship store

63

FLAGSHIP 2500 SQ FTMERCHANDISE 25000 NosMERCHANDISE% MERCHANDISE PIECES

SHIRT 26 6500TROUSER 30 7500

SUIT 22 5500READYMADE 18 4500

ACCESSORIES 4 1000TOTAL 100 25000

SHIRT 26 6500 TROUSER 30 7500PLAIN 24 1560 PLAIN 76 5700WHITE 12 780 WHITE 2 150PRINTED 14 910 PRINTED 1 75STRIPES 24 1560 STRIPES 19 1425CHECKS 24 1560 CHECKS 2 150EMBROIDERY 2 130 EMBROIDERY 0 0TOTAL 100 6500 TOTAL 100 7500

SUIT 22 5500 ACCESSORIES 4 1000PLAIN 72 3960 TIES 15 150WHITE 2 110 HANKY 4 40PRINTED 2 110 TIE PIN 3 30STRIPES 15 825 SHOCKS 17 170CHECKS 5 275 BELT 4 40EMBROIDERY 4 220 SUIT PIN 15 150TOTAL 100 5500 PERFUME 17 170

WELLET 25 0TOTAL 100 750

Table 4.9 Merchandising planning in terms of quantity for experience store

64

EXPERIENCE 1000 SQ FTMERCHANDISE 0 NosMERCHANDISE% MERCHANDISEPIECES

SHIRT 34 0TROUSER 36 0

SUIT 30 0READYMADE 0 0

ACCESSORIES 0 0TOTAL 100 0

SHIRT 34 0 TROUSER 36 0PLAIN 24 0 PLAIN 76 0WHITE 12 0 WHITE 2 0PRINTED 14 0 PRINTED 1 0STRIPES 24 0 STRIPES 19 0CHECKS 24 0 CHECKS 2 0EMBROIDERY 2 0 EMBROIDERY 0 0TOTAL 100 0 TOTAL 100 0

SUIT 30 0 ACCESSORIES 0 0PLAIN 72 0 TIES 15 0WHITE 2 0 HANKY 4 0PRINTED 2 0 TIE PIN 3 0STRIPES 15 0 SHOCKS 17 0CHECKS 5 0 BELT 4 0EMBROIDERY 4 0 SUIT PIN 15 0TOTAL 100 0 PERFUME 17 0

WELLET 25 0TOTAL 100 0

Table 4.10 Merchandising planning in terms of quantity for value store

65

VALUE 400 SQ FTMERCHANDISE 0 NosMERCHANDISE% MERCHANDISEPIECES

SHIRT 34 0TROUSER 36 0

SUIT 30 0READYMADE 0 0

ACCESSORIES 0 0TOTAL 100 0

SHIRT 34 0 TROUSER 36 0PLAIN 24 0 PLAIN 76 0WHITE 12 0 WHITE 2 0PRINTED 14 0 PRINTED 1 0STRIPES 24 0 STRIPES 19 0CHECKS 24 0 CHECKS 2 0EMBROIDERY 2 0 EMBROIDERY 0 0TOTAL 100 0 TOTAL 100 0

SUIT 30 0 ACCESSORIES 0 0PLAIN 72 0 TIES 15 0WHITE 2 0 HANKY 4 0PRINTED 2 0 TIE PIN 3 0STRIPES 15 0 SHOCKS 17 0CHECKS 5 0 BELT 4 0EMBROIDERY 4 0 SUIT PIN 15 0TOTAL 100 0 PERFUME 17 0

WELLET 25 0TOTAL 100 0

Table 4.10 Merchandising planning in terms of money

66

MERCHANDISE 0 RsMERCHANDISE % MONEY Rs

SHIRT 16 0TROUSER 55 0

SUIT 29 0READYMADE 0 0

ACCESSORIES 0 0TOTAL 100 0

SHIRT % MONEY 0 TROUSER % MONEY 0PLAIN 24 0 PLAIN 76 0WHITE 12 0 WHITE 2 0PRINTED 14 0 PRINTED 1 0STRIPES 24 0 STRIPES 19 0CHECKS 24 0 CHECKS 2 0EMBROIDERY 2 0 EMBROIDERY 0 0TOTAL 100 0 TOTAL 100 0

SUIT % MONEY 0 ACCESSORIES% MONEY 0PLAIN 72 0 TIES 15 0WHITE 2 0 HANKY 4 0PRINTED 2 0 TIE PIN 3 0STRIPES 15 0 SHOCKS 17 0CHECKS 5 0 BELT 4 0EMBROIDERY 4 0 SUIT PIN 15 0TOTAL 100 0 PERFUME 17 0

WELLET 25 0TOTAL 100 0

4.3 Top View Of Planned Layout:-

67

Planned layout of a flagship store is as follows

Figure 4.1 Top view of planned layout of a flagship store

4.4 Catchment area analysis and store location planning.

The catchment area are those area where maximum buying of the same kind of merchandise occure. This analysis is done on the basis of customer survey and destinations of buying occur. The area is on the basis of buying power and buying people and high spot destination in the ahmedabad..

The location of the store are depend on the basis of store type, expected sale/day, walk-ins and conversion and also buying power The location of the flagship, experience and value are as belowFlagship:- CG Road, Law Garden and Iscon Char Rasta,Experience :- Bapunagar, maninagar, Bopal, Sattelite road, Shivranjni Char Rasta, Vastrapur Lake, Gurukul, Thaltej, Drive-in Road, Sola, Ashram Road income tax, Ashram Road Ellise bridge, Relief Road, 10 Acer mall Raipur, and Chandkhera.,Value store:- CTM, Bapunagar, Shahibaugh, Relief Road-2,Raipur, Naranpura, gurukul, satellite, Paldi, Ashram road, Chandkhera, Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road etc.In the below Ahmedabad map

68

the location of the Flagship, Experience and Value store are shown by Red, Green and violet respectively.

Figure 4.2 Catchment area analysis

69

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

Most preferred shirting brands from retailer’s and customer’s perception are Arvind,

Raymond, Vimal and Birla Century. Most preferred suiting brands are Raymond,

Reid & Taylor and vimal

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

News papers and hoardings are most useful tool for advertisement.

Instant Discount and Free Gifts are best factor to increase conversion.

In coming future customer tendency will get changed to stitch with

retailer/customized tailor

Top 4 critical factor of choosing shopping destination of potential customer are

discount & offer, Brand name, Events & Promotion and Location of the store

Ahmdabad potential customers like TOI in newspaper and Radio Mirchi in Radio

FM , which are best method of promotional media

Price, color and variety are most 3 respective reason behind the less conversion

Main buying destination of fabric buying in Ahmedabad are C.G. Road, Ashram Road

and Relief road

The best locations for open Flagship store are may be CG Road, Law garden and

Iscon Char Rasta.

The best locations for open Experience Vastrapur Lake, Bapunagar, Maninagar,

Bopal, Sattelite road, Shivranjni Char Rasta, Gurukul, Thaltej, Drive-in Road, Sola,

Ashram Road Income tax, Ashram Road Ellise Bridge, and Chandkhera

The best location for open Value Store relief Road CTM, Bapunagar, Shahibaugh,

Relief Road, Raipur, Naranpura, Gurukul, Satellite, Ashram road, Chandkhera,

Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road

Perfumes, Ties and wallet are most preferable accessories with buying fabric.

Sale per square feet of Flagship, Experience and Value store are 1209, 1008 and 1134

Rs. Respectively for Ahmadabad

70

SuggestionsAs per study the suggestions for opening the Ebo’s (Flagship, experience and value) are as

follows -The location of the flagship, experience and value are-

Flagship:- CG Road, Law Garden and Iscon Char Rasta

Experience :- Bapunagar, maninagar, Bopal, Sattelite road, Shivranjni Char Rasta, Vastrapur Lake, Gurukul, Thaltej, Drive-in Road, Sola, Ashram Road income tax, Ashram Road Ellise bridge, Relief Road, 10 Acer mall Raipur, and Chandkhera.

Value store:- CTM, Bapunagar, Shahibaugh, Relief Road-2,Raipur, Naranpura, gurukul, satellite, Paldi, Ashram road, Chandkhera, Shivranjani, Lal darwaja, Paldi, Ambavadi, Law garden , Drive-in Road etc

Proper timely meeting with retailers which are not satisfied with the management of the

company,by which retailor’s margin w.r.t wholesaler’s margin.

71

BibliographyBooks

Piyush Kumar Sinha, Dwarika Prasad Uniyal, “Managing Retailing, 2007,

Oxford University press, Second impression

David Gilbert, “Retail marketing management”, 2006, Dorling Kindersley

(India), Second Edition

Jay Diamond, Gerald Pintel, “Retail Buying”, 1993, Regent/Prentice hall,

Fourth Edition

Suja Nair, “Retail Management”, 2008, Himalaya publishing house, Third

edition

Jerney A. Rosenau, David L.Wilson, “Apparel Merchandising”, 2006,

Fairchild Publishing Inc. New York , Second Edition

Barry Berman, Joel R Evan, “Retail management a strategic approach”,

Prentice Hall, Eighth Edition

J.N.Jain, P.P.Singh, “Morden retail management principal and technique”,

2007, Regal Publication

Michael Levy, Barton A. Weitz, “Retailing Management”, 1998, Irwin

mcgraw hill

Journals

Images retail magazine,oct’07, Vol 6 No 10

Images retail-recent mergers, acquisitions, expansion of export houses, labels

Retail biz, Feb 2, 2007

Inside Fashion, Vol 7 No 7

Apparel Online,Nov1-15’07

Fashion technology magazine, Oct 5, Vol 3

Newspaper

The economic times

Business standard

The Indian express

The times of india

72

Website

Www.ksa–technopak.com

Www.3isite.com

Www.economywatch.com

Www.retailyatra.com

Www.grokker.com

Www.fibre2fashion.com

Www.indiastockmarket.com

Www.ensusindia.net

Www.market_research.com

Www.ficci.org

Www.eretailbiz.com

Www.economictimes.com

Www.in.kpmg.com

Www.ibeg.org

73

ANNEXURE

Retailer’s QuestionnaireRetail Outlet Name: _______________________________Location: ______________________________

Since:___________________Space( Sq Ft):_________________Contact no:________________________

Name & Designation: ___________________________________________________________________

No. of Staff_______Hierachy of Staff___________ ___________ _______________________________

Please according to relation

Retail Outlet Type Retail Business Type

Own Rented LeaseCompany Showroom

Franchise LicenceeFactory Outlet

Please give price range and rating according to sale in your outlet Rating (1 – 5): 1=most preferred 5=Least preferred

Product Category Luxury Super premium

Premium Mid price Economy Mass segment

ShirtPiece

Price range(min.-max.)

1800+1000-1800 700-1000 500-700 200-500 80-200

Rating

SuitPiece

Price range(min.-max.)

4000+2800-4000 2000-2800 1300-2000 800-1300 400-800

Rating

Trouser/pent Piece

Price range(min.-max.)

2500+1800-2500 1200-1800 700-1200 300-700 150-300

Rating Please rank the following attributes according to the customers’ choice while they come for purchasing men`s wear Rating (1-5): 1= most important, 5= last important

Attributes Color Price Design Feel QualityP Pattern Finish Comfort

Shirt Piece

T Trouser/pent piece

74

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

Suit piece

Accessories

Please write availability of following merchandise in your outlet :

Suit Piece Shirt Piece Bottom Readymade Accessories Total100%

Please provide information about following terms:

 Week Days Week Ends Seasons Festivals

Footfall

Conversion RatioAverage

Selling/customer

Give rating to the below attributes behind short fall less conversion ( Rating : 1-5)

Price Color Design Quality Feel Discount/Offer

Variety Home Delivery

Exchange Policy

Tailoring Service

Generally what customers preferred for buying along with Fabric?

Accessories Ties Hanky Tie pin Shocks Belt Suit pin Perfume Wallet Availability Price Range(min.-max.)

What kind of offer you would like on purchasing of fabric

Instant Discount Future Discount TripMovie /Event show tickets

Club Membership

Loyalty Card

Buying of Merchandise: Own Company Distributor

SUITING brand you mostly asked? (Ranked 1-5, 1=Most asked 5 =least asked)

Reid n Taylor Arvind Siyaram Raymonds Vimal Digjam Grasim/Gravera Ashima Century

SHIRTING brand you mostly asked? (Ranked 1-5, 1=most asked 5 =least asked)

75

Soktas Monti Morajee Raymonds Vimal Tassuti ArvindBombay

rayonCentury

Aditya birla

Ruby

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

Fresh ArrivalsAdv. in daily News

paperAdv. in TV Adv. in Magzine Discount offer Gift Vouchers

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

Poor Average Good Very Good

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

10% - 20% 20% - 30% 30% - 40% 40% - 50%

What percentage of loyal customers you have?

30% - 40% 40% - 50% 50% - 60% 60% - 70% 70% - 80%

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

20yrs – 30yrs 30yrs – 40yrs 40yrs – 50yrs 50yrs – 60yrs a> Above 60yrs

Do you think that store layout and visual merchandising affect the sales pattern?Please mark ( Yes /No)

76

What is the most possible reason for not visiting your store of youngsters?---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Which media you use for Advertisement and promotions?

________________________________________________ ________________________ _

From which medium you are getting customer feedback?

e-mail Feedback form Orally Loyalty program Telephonic interview

Others*

If other, Please specify______________________________________________________________________

What do you do for better Customer relationship? ___________________ _______________ _____

_________________________________________ ___________________________________________

If there any complain about customer service if yes

mention----------------------------------------------------------------------------------------------------------------------

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

Do you think having a tailoring shop next to or within your outlet will improve the sale (or is improving the sale) Please mark (Yes/ No)

Do you think that an extra effort of better sewing services as trendy designs with intelligent cuts focusing customized services will improve sale of your outlet? Please mark (Yes/ No) if yes what %age of the existing customers will be ready to pay extra for the additional given facilities for better look (cuts and designs)?

10– 20 % 20 – 30 % 30 – 40 % 40 – 50 %

On the basis of your past experience with in business, rate the following attributes on a scale of five where 1 is for least satisfaction and 5 is for high satisfaction.

Supply Chain Customer Relation

Well Communication

Tranceperancy in Business

Sincere Consideration

Full Involvement for Feedback Execution

THANK YOU

77

Survey Questionnaire

Name _____________________________________Sex (M / F ) & Location___________________

Demographic classification

Age groupUp to 30 30-35 35-40 40-45 45-50 50-55 55+

IncomeGroup

Up to 10K 10-20K 20-30K 30-40K 40-50K 50-60K 60K+

Occupation Student Own Business Private Job Govt. Job Retired House wife

How many times you buy the Fabric

Every 3 months

Once in 6 months

Once in a yearSeason to

seasonOn each festival

Functions

SUITING brand you mostly asked? (Ranked 1-5, 1=Most asked 5 =least asked)

Reid n Taylor Arvind Siyaram Raymonds Vimal Digjam Grasim/Gravera Ashima Century

SHIRTING brand you mostly asked? (Ranked 1-5, 1=most asked 5 =last asked)

Soktas Monti Morajee Raymonds Vimal Tassuti ArvindBombay

rayoncentury

Aditya birla

Ruby

78

Declaration:

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

Rank the following attributes while purchasing men`s wear Rating(1-5) : 1= most important 5= last important

Attributes Color Price Design Feel Quality Pattern Finish Comfort

Shirt Piece

Trouser/pent piece

Suit piece

Accessories

Please mark the preferable price range in the given scale

SHIRTS

80-200 200-500 500-700 700-1000 1000-1800 1800+SUITS

400-800 800-1300 1300-2000 2000-2800 2800-4000 4000+TROUSERS

150-300 300-700 700-1200 1200-1800 1800-2500 2500+

What you like mostly in fabricPlain White Printed Stripes Checks Embroidery

SuitShirt

Trouser/pent

Generally what you preferred for buying along with Fabric Ties

Hanky Tie Pin Shocks Belt Suit pin Perfume Wallet

79

Where are you stitching right now? Own Tailor Retailer

Where would you like to stitch in future? Own Tailor Retailer

What kind of offer you would like on purchasing of fabric

Instant Discount Future Discount Trip Movie ticket Club Membership Free gift

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

Color Design defect Family opinioin Color Bleeding Shrinkage Poor Washing Stitching defect

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

What is the single most critical factor in selecting a store for shoppingEvents and Promotions

Everything under one roof

Discounts and Offers

Location of the store Exchange Policy Parking Space

AmbienceCustomer Service

Brand name

Your choice of FM and News Paper

FM Channel NEWS PaperRadio Mirchi

Red FM

Radio City

My FM

TOI ETGUJ.

SMCHRBHSKR Sandesh Hindu OTHRS

Which Area in Ahmedabad you most preferred for fabric buying?___________________

For super premium fabric (fabric which is very rich in quality, comfort, design, feel

and touch) average amount you can spent at once?

3000-6000 6000-9000 9000-12000 12000-15000 15000-18000 18000 & above

80

THANK YOU

81