Merchandise assortment Planning oF Various Retail counters ta Jalandhar

This document was created by Unregistered Version of Word to PDF Converter

PROJECT REPORT ON

A COMPARATIVE STUDY OF MERCHANDISEASSORTMENT PLANNING OF VARIOUS APPARELOUTLETS AND RETAIL COUNTERS OF JALANDHAR.

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

NAME OF THE STUDENT: TAJINDERPAL SAINI

MBA SEC (1703)

UNIVERSITY REGISTRATION NO.2020070329


DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

DECLARATION

I Tajinder Pal Saini here by state that this Project Report has been submitted to LovelyProfessional University in partial fulfillment of the requirements of MBA (Master ofBusiness Administration) Program Class of 2009.

The empirical information of this report is based on my own research and observation.Any part of this project has not been reported or copied from any report of anyuniversity and others.

Date: 15 /5/2009 Tajinder Pal Saini

Place: Phagwara (2020070329)


CERTIFICATE

This is to certify that the Management Thesis work entitled “A comparative study ofMerchandise Assortment planning of various apparel outlets and retail counters of Jalandhar .” is being submitted by Tajinder Pal Saini for partial fulfillment of MBA to theLovely Professional University is recorded a Bonafide work carried out by him under myguidance and supervision.

Date: 15/5/2009 Ms.Gurdeep Kaur

Place: Phagwara (Faculty Supervisor)

Lovely Professional University

Phagwara


ACKNOWLEDGEMENT

I am writing this Final Report of Management Thesis for the program of Master ofBusiness Administration for Lovely Professional University (Phagwara).

It has been a great challenge but a plenty of learning and opportunities to gain hugeknowledge on the way preparing this management thesis. I would not succeed withoutMs.Gurdeep Kaur. My amazing faculty supervisor, who seemed to be with me always;and prepared to give me feedback and guidelines whenever I needed it. Thank YouMadam!

I also would like to thank all my friends, my colleagues and all those persons whom Imet in this time period for all feedback and help which they provided to me. And ofcourse to all those executives from various apparel outlets whom I interviewed for alltheir help and support. Thank You all!

I have learned a lot during this time period of preparing this thesis and I hope you willfind my working as interesting and knowledge earning as I have and that this report ispresenting to all. And it will be useful for others wanting to learn about apparel industryand retailers’ policies and strategies about merchandise assortment planning.

Tajinder Pal Saini


2020070329

ABSTRACT

In today’s competitive scenario where more and more players are coming into thepicture, there is a need to look into the customer or client behavior to know your clientwell. And also there is a need to spread their business like this in which one can choosethe best for them. Till now here in India most of people prefer unbranded clothing andthey buy clothing from traditional apparel stores but after entrance of big giants in thissegment, today’s emerging retailing environment, people’s income level and spendingpower, increasing preference for fashion & new trends; hence there is a wide scope inIndia for apparel industry and till now it is at the flourish stage.

The variety and assortment of merchandise offered by a store play a major role inattracting customers. Merchandise comes in a variety of sizes, colors, makes andmodels. So any retailer, big or small, take many decisions regarding what to purchaseand what to made the goods available to customers. This is called systematicmerchandise planning. So basically merchandise decisions are related to what type ofproduct they are going to offer and assortment planning is related to the varieties ofproduct and goods offered by them in their outlets.

Because of high cut-throat competition, when all market players are fighting witheach-other for attracting and retaining customers. But today customers are also verysmart and they know the value of their money; and a lot of choices are available in themarket for them. Especially in apparel industry, a lot of brands and a wide range offashion are available so it’s too difficult for customers to taking the purchase decision.So it’s necessary for every retailer to provide the best and biggest possible range ofproduct to customers. And researcher studied these all in preparing this thesis and


found that these decisions and planning are continuously adopting by every big andsmall retailer; because it is the demand of current time.


INTRODUCTION

Retailing Overview

In Apparel Segment and Merchandise Assortment Planning

Retailing Overview-

It’s a human tendency to have a comfort, luxurious life and have all facilities to him.And as there is a golden period going on now; anybody can enjoy these benefits. Andretailing concept is also from one of these facilities. Retailing is simply provides the endproduct to customer. So retailers are directly in touch with customers. Retailing in Indiais witnessing a huge revamping exercise. India is rated the fifth most attractiveemerging retail market: a potential goldmine.


As per a report by KPMG the annual growth of department stores is estimated at 24%.Ranked second in a Global Retail Development Index of 30 developing countries drawnup by AT Kearney.


Retail Sales in India


Fig 1.1


This chart is showing three lines mainly, overall retail sales; food, beverages andtobacco segment sales and clothing sales. And here researcher’s focus is on clothingsegment. So let now discuss about apparel industry. As we know apparel is one of thebasic needs of any person. And now in India, either a rural person or an urban person,all prefer these easy and comfort retail formats for them. As a research conducted byKPMG/research firm; in India, in rural segment there is a 61% spending and in urbanmarket, there is 39% spending.

Fig 1.2


Indian Organized Retail is set to explode with Food & Lifestyle retail as major segments


Fig 1.3

And apparel industry is also one of these SBU’s; so definitely these all things make itmore valuable than others.

Global retail sales are estimated to cross US $ 12 trillion in 2007, reflecting the growthin the world economy, global retail sales grew strongly in the last five years (2001-06) atan average nominal growth of about 8 per cent per annum in dollar terms. This is incontrast to near stagnant global retail sales during the previous five years, 1996-01.Grocery dominates retail sales with a share of approximately 40 per cent which variesfrom about 30 per cent in rich Japan to an average of 60 per cent in poor Africa. Retailsales through modern formats have been rising faster than total retail sales; the shareof modern retail has risen from about 45 per cent in 1996 to over 52 per cent in 2006.

The growth of the retail trade in India is associated with the growth in the Indianeconomy. Gross domestic product (GDP) grew by an annual rate of 6.6 per cent during1994-00 but the growth slackened to 4.7 per cent per annum during the next threeyears before the growth remarkably rose to 8.7 per cent per annum in the last fouryears. This meant a substantial rise in disposable income of Indian households since themid-1990s. Based on the Market Information Survey of Households (MISH) of theNational Council of Applied Economic Research (NCAER), the number of people in theincome groups of “aspirers” and the middle class with annual income ranging from Rs.90,000 to one million, more than doubled from 157 million to 327 million during thelast decade 1995-96 to 2005-06.3 The data from the Central Statistical Organization


(CSO) indicate that the growth of real private final consumption expenditure, whichdipped from an average of 5.7 per cent per annum during 1994-00 to 4 per cent perannum during 2000-03, shot up to 6.7 per cent per annum during 2003-07. Retail sales(in nominal terms) in the country also followed a similar pattern: a high annual growthof 13.6 per cent during 1994-00, a low growth of 4.8 per cent during 2000-03 and asmart pick up in the last four years, 2003-07 at around 11 per cent.

Retail Sector is the most booming sector in the Indian economy. Some of the biggestplayers of the world are going to enter the industry soon. It is on the threshold ofbringing the next big revolution after the IT sector. Although organized retail market isnot as strong as of now, it is expected to grow manifolds by the year 2010. The sectorcontributes 10% of the GDP, and is estimated to show 20% annual growth rate by theend of the decade as against the current growth rate of 8.5%. A CRISIL report says thatthe Indian retail market is the most fragmented in the world and that only 2% of theentire retailing business is in the organized sector. This suggests that the potential forgrowth is immense. There are about 300 new malls, 1500 supermarkets and 325departmental stores currently being built in the cities across India.

Exhibit – A. GDP, Private Final Consumption Expenditure and Retail Sales

Growth, 1994-07 (Compound Annual Growth Rate)

1994-95 to

1999-00

2000-01 to

2002-03

2003-04 to

2006-07

Real GDP 6.6 4.7 8.7

Real private finalconsumption expenditure

5.7 4.0 6.7

Retail sales 13.6 4.8 10.9

Traditionally retailing in India can be traced to the emergence of the neighborhood‘Kirana’ stores catering to the convenience of the consumers, an era of governmentsupport for rural retail: Indigenous franchise model of store chains run by Khadi &Village Industries Commission, 1980s experienced slow change as India began to open


up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar'sand Grasim first saw the emergence of retail chains. Later Titan successfully created anorganized retailing concept and established a series of showrooms for its premiumwatches. The latter half of the 1990s saw a fresh wave of entrants with a shift fromManufactures to Pure Retailers. For example Food World, Subhiksha and Nilgiris in foodand FMCG; Planet M and Music World in music; Crossword and Fountainhead in books.Post 1995 onwards saw an emergence of shopping centers, mainly in urban areas, withfacilities like car parking targeted to provide a complete destination experience for allsegments of society. Emergence of hyper and super markets trying to provide customer3 V’s - Value, Variety and Volume. Expanding target consumer segment: The Sachetrevolution - example of reaching to the bottom of the pyramid.India is on the radarscreen in the retail world and global retailers and at their wings seeking entry into theIndian retail market. The market is growing at a steady rate of 11-12 percent andaccounts for around 10 percent of the country’s GDP. The inherent attractiveness ofthis segment lures retail giants and investments are likely to sky rocket with an estimateof Rs 20-25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010. Indianretail market is considered to be the second largest in the world in terms of growthpotential.

Exhibit –B. India Retail - Share of Categories (per cent)

2003-04 2004-05 2005-06 2006-07

1. Food & grocery 66.4 62.5 61.7 59.6

2. Beverages 2 2.7 3.1 3.6

3. Clothing &footwear

7.3 8.8 8.6 9.3

4. Furniture,furnishing,appliances &services

4.8 5.8 6.2 6.8

5.Non-institutionalhealthcare

9 8.6 8.5 8

6. Sports goods,entertainment,

2 2.4 2.6 2.7


equipment &books

7. Personal care 3.5 3.8 3.9 4.2

8. Jewellery,watches, etc

5 5.4 5.4 5.9

Total Retail 100 100 100 100

In Apparel Segment and Merchandise Assortment Planning-

Issues such as what merchandise to purchase and in what quantity, are of strategicsignificance to every retailer, especially for the multi-store retail chains of today. Fordecisions on these matters, a thorough plan called a merchandise assortment plan hasto be adopted.

And as clothing is one of the basic needs of every person. So definitely apparel industryhas a wide scope. That’s why right now many players are operating in this industry andnew players are also coming. So competition is also increasing in this industry day byday. And as retailing environment is emerging now a days and Indian economy is alsodeveloping so a wide range of fashionable and trendy clothing is available now andcustomers have a lot of options in their hand that’s why it is essential for every retailerto position themselves as a different and best option for customers.

For every industry, its product range and varieties are the best way to attract and retaincustomers. That’s why this concept of merchandise and assortment planning emerged


and now most of retail organizations focusing on this for being alive in the market. Theretailer must make decisions regarding the merchandise offered depending on the salestargets and financial objectives of the store. Merchandise comes in a variety of sizes,colors, makes and models. Retailers should be very careful while deciding on theamount of stock to be maintained in each category, if large stocks are maintained in aparticular category, there may not be sufficient resources left for providing a deeperassortment of goods. Hence, the retailer should establish a trade-off between the typeof categories or assortment and the inventories being maintained. This is calledmerchandise assortment planning.

An assortment plan depicts what should be carried in a specific category ofmerchandise. (Exhibit- C) An assortment plan for a merchandise category based onfashion will not identify particular stock keeping units, because fashions vary from yearto year and sometimes, from season to season. The more fashion-oriented themerchandise category is, the more necessary it is for the merchandise planner toaccommodate changes in fashion, and hence, the lower the level of detail in theassortment plans. The starting point for developing an assortment plan for a givenseason is the historical data for a particular merchandise category. Apart from theassortment plan for a merchandise category in the previous season, sales, inventoryturnover and GMROI (Gross margin return on inventory investment) figures are used todevelop an assortment plan for the current season. The merchandise planner thenmakes the required changes according to his expectations of what products or fashionswill be really significant for the coming season.

EXHIBIT: C

Assortment Plan For Boys’ Jeans

Style Straight-leg Straight-leg Straight-leg Loose-fit Loose-fit

Retail price(in Rs.)

999 1399 1799 1299 1599

Type ofFabric

Regulardenim

Stonewashed

Tinsel- Lyerabased

Broken twill Over dyed


denim denim

Colors Light blue Dark blue Light blue Light blue Blue

Black Indigo Black Black Black

Black Deep blue

This plan describes general styles, price levels, fabric composition and colors. Theprocess of developing an assortment plan can be quite complex, especially inmulti-store chains like Shoppers’ Stop, Pantaloons or FoodWorld. An effectiveassortment plan requires equal or more effective sales, inventory turnover and GMROIforecasts, to complement the experienced judgment of the merchandise planner.

Review of Literature

As merchandise assortment planning is one important issue for consideration forapparel retailers, and by this an organization can gain a high level competitive


advantage over their rivals. So for this research, researcher has to go through-Pastreports/information available on this topic. References books or study materials forunderstanding the topic in details.Available data on internet, through electronicdatabases.And for this topic, the areas of literature should be examined are-

The concept of merchandise and assortment(stock keeping units and categories),

Organizing the buying process by categories,

Category management,

Levels of buying organizations,

Financial objectives,

Gross margin return on inventory investment( GMROI),

Sales forecasting

Product mix trends.

Literature review is important for-

Identify critical issues in literature,

Discuss how different authors works have complement one another and how they candisagree,

Writing literature review develops research’s focus.

And on this topic, here in Jalandhar before this study, never a research has beenconducted and because Jalandhar is not a big city so here sources are limited but scopefor these type of study is very huge.

But now here so many apparel outlets are available for making this research successfullike John Players, Adidas, Oxemburg, Spykar, Reebok, Peter England, Lilliput, Sportking,Gini & Jony, Monte Carlo, Priknit, Cotton County, Koutons,Gas,Tommy


Hilfiger,Espirit,and many more. So a good research will be possible on this topic. And myresearch study is restricted to one aspect of retail management i.e. MerchandiseAssortment Planning.

Sudhir nagpal in his article Global apparel retailers gear up for India stated that inComing 2008 and the $350-billion Indian retail industry will witness the entry of a slewof international apparel brands. According to industry sources, Chemistry of the US, SOliver of Spain, Splash from the Middle East, as well as Salamander Design and H&Mfrom Europe are some of the leading global manufacturers readying to set up shophere. Their entry will also bring domestic store design in sync with global trends. Otherretailers expected to join the Indian bandwagon are Promod, Gador, Hogl and EsteeLauder.

These retail majors are likely to tie up with mall developers to come in as anchortenants. They could also tie up with domestic apparel retailers to market their brands,like the recent agreement between Tata’s Trent and Italy’s Benetton. The arrival ofinternational style malls will also see new technology and comfort for shoppers, such asthe ‘no-doors’ concept. Besides, new technologies to lower noise pollution during rushhours could find their way here, too. Property development consultants say Indianretail mall developers need to bring in such technologies if they wish to remaincompetitive.

Surinder mishra in his article India third most attractive market for apparel retailershas found thatIndia has emerged the third most attractive market destination forapparel retailers, according to a new study by global management consulting firm ATKearney.India comes after Brazil and China in the AT Kearney Retail Apparel Index, which looksat ten drivers, including apparel consumption and clothing imports/exports, to rank thetop 30 emerging markets for retail apparel investments.

"In India, apparel is the second largest retail category, representing 10 percent of the$37 billion retail market. It is expected to grow 12-15 percent per year," said HemantKalbag, principal of Consumer Industries & Retail Practice, AT Kearney India.

The Authors Jaya Halepete, Marymount University, Arlington, Virginia, USA K.V.Seshadri Iyer, Akanksa Inc., Fairfax, Virginia, USA in their article said that the mainpurposes of this paper isto perform a micro- and macro-dimensional analysis, and toapply the theory of eclectic firm to understand the investment dimension in the apparelretail environment in India. A micro and micro analysis of the retail industry in India was


conducted. Eclectic firm theory was then applied to the analysis to understand theapparel retail environment in India.

Tarun kumar in his article stated that The arrival of global retail giants on Indian shoreshas spurred their unassuming suppliers based in India even before their setting shophere.

Vadodara-based Goradia group, which makes toothbrushes under the Jewel brand andseveral private labels and is among the largest suppliers toothbrushes to Unilever, Ikeaamong others, says it is busy chalking out fresh business strategies with theannouncement of Wal-Mart's entry in Indian market.

The entry of local heavy-weights like Reliance is also a booster. The Goradia group ishoping to generate 30% of its total revenues from private labels as compared to about15% now.

The group is now increasing its focus in domestic market and newly launchedhousehold product category through organised retailers. Goradia group is also set tolaunch premium products in India in different segments.

Sujata Dutta Sachdeva in his study It's time for retail offshoring to take a leapannounced that Everyone knows, how India's retail sector is poised to take off and wewill be among the top five retail markets in the world in the next 10 years. But that isonly one part of the big story. For making the most of the retail boom worldwide isanother

sunshine sector that is - the IT and ITeS. While global retail chains are chalking out theirIndia plans, Indian IT firms are quietly providing them back office and other coresupport from here.

Most top retail chains are either outsourcing their work to third parties in India oropening captives centres here. And it's been happening for sometime now. Forexample, UK-based chain Tesco, has set up a back office - Hindustan Service Centre inBangalore - with a headcount of 2,000 people. Target, a US-based retailer has a captivecentre in Bangalore and plans to expand it. Marks & Spencer, Sainsburys, Best Buy - allhave outsourced their work to India.

Parag Pateria in his research paper


The Future of Organised Retailing in India: A Curtain Raiser The word 'retail' isextracted from the French word 'retaillier' meaning 'to cut a piece off' or 'to break bulk'.In simple terms it involves activities whereby products or services are sold to finalconsumers in smaller quantities. Although retailing in its various formats has beenaround in India for many years, it has been confined for a long time to family ownedcorner shops or mom and pop shops popularly known as kirana shop. Retailing in moredeveloped countries is big business and better organised than what it is in India. Reportpublished by McKinsey & Co. in partnership with Confederation of Indian Industry (CII)states that the global retail business is worth a staggering US $ 7 trillion. The ratio oforganised retailing to unorganized in US is around 80 to 20, in Europe it is 70 to 30,while in Asia it comes to around 20 to 80. Hence there lies a great scope in India.

Shabshelowitz, Eric in his study Opening for business in India: retailers' options foundfrom his study thatIndia's retail market is currently valued at over $250 billion, andreports indicate it is growing at a rate of ten percent each year. (1) This tremendousgrowth is encouraging even Mickey Mouse to enter India's retail market. (2) Because ofrecent policy changes encouragingforeign investment, Disney and many other retailershave leapt at the opportunity to enter the market. (3) However, foreign retailers arestill limited in their ability to operate in India because Indian law strictly regulatesforeign participation in its retail market. (4) As foreign retailers formulate their plans toexpand into India, they must consider the allowable modes of operation and identifywhich of these options best suit their business needs. (5) This Note evaluates thevarious ways in which foreign retailers may operate retail stores and manufacturingfacilities in India. (6) Part II of this Note introduces some of the reasons foreign retailersare so interested in India. (7) Part III discusses the legal obstacles foreign retailers faceand recent developments in Indian law intended to open the country's doors to foreignbusinesses. (8) Part IV discusses the allowable modes of operation for foreign retailers.(9) Part V suggests the optimal choices for foreign retailers to operate retail stores andmanufacturing facilities in India.

Kala Vijayraghavan & MV Ramsurya in their study Birlas' More likely to stitch retailplans around clothes biz The Aditya Birla group is understood to be revisiting thebusiness strategy for its retail businesses which could result in greater long-termemphasis on apparel retailing, sources close to the development said. In a series ofreview meetings at the Mumbai-based conglomerate's office, the top management andthe retail team are understood to have taken a relook at the design, positioning andmerchandise offered by More - the supermarket format under Aditya Birla Retail, whichhas recently seen slow growth. The review meeting, which according to group sources isconducted every six months, was called to focus on challenges that Aditya Birla Retail


has been facing, especially on issues such as managing the more competitive food &grocery format, and related challenges such as supply chain, merchandising andcompetitive pricing in the face of high operating costs. Aditya Birla Retail currently has550 outlets under More and a hypermarket. At the same time, the group's think-tankseems keen to increase spends and focus on apparel retail currently being undertakenby Madura Garments, a unit of Aditya Birla Nuvo, which has seen a significant jump insales. Madura Garments targets all class segments with its multi-price points.

Ak Modi in his Study Of emerging trends in Indian retail market has suggested.TheIndian retail sector is going through a transformation and this emerging market iswitnessing a significant change in its growth and investment pattern. Both existing andnew players are experimenting with new retail formats. Currently two popular formats-hypermarkets and supermarkets are growing very fast. Apart from the brick -mortarformats, brick -click and click-click formats are also increasingly visible on the Indianretail landscape. Consumer dynamics in India is changing and the retailers need to takenote of this and formulate their strategies and tactics to deliver value to the consumer.This paper investigates modern retail developments and growth of modern formats inthis country. We also discuss the challenges and opportunities available to the retailersto succeed in this country.

Sk Sharma et all studied the Indian economy growth for retail Indian economy hasshown an impressive growth of over 6 per cent for last five years and continues to surgeahead. GDP growth rate in 2003-04 recorded a fifteen year high of 8.5% andsubsequently maintained a steady growth for the next two years. Real GDP growthaccelerated from 7.5 per cent during 2004-05 to 8.4 per cent during 2005-06 on theback of buoyant manufacturing and services activity supported by a recovery in theagricultural sector. The central bank forecasts similar growth of 7.5-8 percent during2006-07. With strong economic growth consumerism is increasing in the country andIndia is the fourth largest economy as far as purchasing power parity is concerned, justbehind USA, Japan and China.

BS Goyal in his study has research of consumer trends in retail market has found thatIndia is currently having the largest young population in the world and 54 per cent ofIndia’s population is below 25 years of age and 80 per cent are below 45 years. As perIndia’s Marketing Whitebook (2006) by Businessworld, India has around 192 millionhouseholds. Of these only a little over six million are ‘affluent’ – that is, with householdincome in excess of INR215, 000. Another 75 million households are in the category of‘well off’ immediately below the affluent, earning between INR45,000 and INR215,000.


This is a sizable proportion which offers excellent opportunity for organized retailers toserve.

AK Gupta in his study Retailing in India is currently estimated to be a USD 200 billionindustry, of which organised retailing makes up 3 percent or USD 6.4 billion. By 2010,organised retail is projected to reach USD 23 billion and in terms of market share it isexpected to rise by 20 to 25 per cent. The report also predicts a stronger retailer growththan that of GDP in the coming five years.

SD Asthana in his study Mall development is phenomenal in India. The mall mania isspreading fast and entering even the second tier cities in India. Real estate developersare jumping very fast to take this further from Metro cities to smaller cities andcorporate houses like ITC and Sriram group are making steady progress to make thisphenomena feasible in rural market also. There is no denying that the top notch citieslike Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Pune are leading theway but the second tier cities like Ludhiana, Chandigarh, Nagapur and Surat arecatching the eye of all retailers. Retail developers are in such a mood that they mayover ride the requirement in a specific city.

Mohan and Gupta (2007) examined the combination of factors that are important formeeting the expectations of customers. Different factor have been considered in studythat range between apparel and store attributes. They explained that retailers can addmore value to the garment value chain by identifying strengths and weaknesses of thestore and apparel related factors and with combinations of these factor apparelretailers can target their potential customers, like if stores, which cannot offer travelconveniences can compromise by providing attractive displays. Likewise stores withconstraints on indoor and window displays can provide travel and shoppingconveniences, personalized attention and services, and repeated satisfaction andrewards.

Neihm and Yoon (2006) examined relationship of Generation Y (Gen Y) customers(18-27) shopping orientations and expectations for retail services. They also explainimportance and impact of service expectations and perceptions on customersatisfaction and loyalty for apparel in different types of retail outlets. They discuss thatretail services create value and satisfaction for Gen Y customers and that aid indevelopment of service strategies and training programs by store outlet. It is found thatcustomers expected courteous employees most when shopping for apparel at specialtystores and appealing store appearance, knowledgeable employees. While purchasing


clothing at discount stores, expectation is for convenient operation hours, customersfeel secure in transactions, courteous employees and error-free record. This indicatesstrategic implications retailers targeting younger apparel customers. Gen Y customersindicated that they preferred to shop most often for apparel at specialty stores,followed by department and discount stores. Gen Y customers also expected moreservice from specialty stores, followed by department and discount stores.

Visser, Preez, and Noordwyk (2006) focus on store image attributes that are perceivedas important by female apparel consumers. From the earlier studies nine dimension ofstore has been taken into consideration that are merchandise, service, clientele,physical facilities, convenience, promotion, store atmosphere, institution factor, posttransactional factor. It is found that consumers perceive store image attributes asvarying in their degree of importance; secondly, consumer behavior is related to theirperception of the importance of store image attributes; and finally, different consumergroups (e.g. gender groups) may vary in their perception of the importance of storeimage attributes. It is concluded that merchandise and clientele were the two mostimportant store image dimensions, while other dimensions service, store atmosphere,post transaction satisfaction, promotion, and physical facilities, in this order, followed inperceived importance.

Scarpi(2006) analyze the relation between hedonic/utilitarian shopping behavior and anumber of key variables, such as store loyalty, perceived value, purchase frequency,money spent, price consciousness, age and gender. In this study hedonism has beenmeasured by examining fun consumer enjoyed during the shopping trip, like they had agood time while shopping, they enjoyed being involve in new products, and theyenjoyed shopping.. Utilitarianism has been measured, by seeking that whetherconsumers could find what they were looking for; if they would have been disappointedif they had to go to another shop; and if they accomplished what they wanted on theshopping trip.

Algie and Korlimbinis (2005) studied upon men’s store preferences when shopping forfashion and apparel items. It is found that store layout and design of many retailfashion stores largely reflects the shopping preferences of female shoppers as theyshop more frequently and have a greater interest in fashion than men. But owing toincrease in young males shopping for their own clothes their study examined only


men’s shopping satisfaction and store preferences, specifically investigating theimportance (in rank order) of various store attributes to male shoppers. In study theyhave taken 11 shopping attributes related to apparel stores and these are: (1) price ofmerchandise, (2) quality of merchandise, (3) friendly personnel, (4) brands carried inthe store, (5) selection of merchandise, (6) sales service, (7) stock newest fashion, (8)employee knowledge, (9) convenience to home and (10) charge credit and (11) ease offinding items. The study found that the most important attributes for participants whenshopping for their own apparel were 1) price 2) quality and 3) selection of merchandisealso in study it has done comparison of younger and older shopper rank orderpreference of shopping attribute.

Gehrt (2004) examined the influence of situational as well as consumer and retailerfactors on preference for retail formats and show that situational factors havesignificant influence on online and catalog format selection and perceptions ofattributes that are very important to that selection. It shows that situational factorsaffect retail attribute importance except for the price factor. Like if shoppers haveample time, the retailer personality factor is critical, shopping atmosphere, thepresence of the right brands and general familiarity with the retailer are important. Onthe other if shoppers have less time, the merchandise factor and the transaction servicefactor are critical.

North and Kotze (2003) in their findings explained that apparel products are composedof many physical characteristics, which are perceived differently by consumers. Whenconsidering a product purchase, consumers tend to compare and contrast alternativeproducts made up of different attribute combinations. Their preferences for items ofapparel mainly depend on the joint influence of price and product attributes such asquality, style, and brand. Analyses have been done on female consumers’ apparelpurchasing decisions, on the basis of the value they attach to certain product attributesand results indicates that style is the most important attribute of apparel to womenwhen making purchasing decisions, with price being the second most importantattribute. It concluded that there is a relationship between age and style as well asbetween age and brand.

Paulins and Geistfeld (2003) studied consumer perceptions of retail store attributes todetermine their effect on store preference, it is found that four variable affects the


most store preference type of clothing desired in stock, outside store appearance,shopping hours, and advertising. Along with this it found relationship betweencustomer perception of store attributes, education and age. It has taken set ofattributes of stores included: advertising, appeal of clothing in the store, displays,dressing rooms, ease of location of merchandise, layaway plan, outside appearance,parking, prices, rest rooms, return policy, sales assistance, shopping hours, and storelocation And it had found that different attribute effects preference for different stores,like consumers tend to be more critical of store attributes as education increases,consumer are willing to sacrifice some store attributes when they receive lower prices

Mattila and Wirtz (2001) examined the importance of store environment in enhancingshopping experience, using effects of many pleasant ambient stimuli such as music andscent. They manipulated scent and music in a 3 (no music, pleasant low arousal andhigh arousal music) by 3 (no scent, pleasant low and high arousal scents) factorialdesign in a field setting and result show that when ambient scent and music arecongruent with each other in terms of their arousing qualities, consumers rate theenvironment significantly more positive, exhibit higher levels of approach and impulsebuying behaviors, and experience enhanced satisfaction than when theseenvironmental cues were at odds with each other.

Moye (2000) examined the influence of selected environmental dimensions on storepatronage using specific apparel shopping scenarios. Past retail and marketing studieshave identified several consumer-oriented store attributes such as price, quality,variety, discounts, store reputation and their relationship to store patronage, but thesestudies ignores how the physical environment affects retail store patronage. In studyvarious environmental dimensions have been considered like temperature, air quality,lighting, noise, scent, music, layoff, flooring, fixture, signs, style of décor, et al. TheBargain

Apparel Shoppers had higher mean scores on the environmental factors than the othershopper groups. With regard to first store choice, the department store was chosenmost often as first store choice because of environmental factors.

Darley and Su Lim (1999) examined the effects of store image and general attitudetoward secondhand stores on “shopping frequency” and “distance traveled”. Shoppers


who held more favorable store specific attitudees and had a positive quality-availabilityperception were more likely to shop at a secondhand store and to travel longerdistances to patronize that store. It has taken three hypotheses that more favorablestore image, more frequently an individual will shop at a secondhand store. Secondly,more favorable an individual’s quality-availability perception, the more likely theindividual will shop frequently at a secondhand store. Finally, more favorable one’sattitude toward secondhand stores, the more frequently an individual will shop at asecondhand store. It has find that consumers who frequently shop at a secondhandstore are more favorably inclined toward that specific store and its merchandise qualityand when there is more favorable quality-availability perception and store image theywere more willing to drive the extra distance to patronize their store.

RESEARCH PROBLEM/OBJECTIVES OF THE STUDY

Management Thesis is a part of the MBA Program. The objective of a ManagementThesis is to train the student in designing and implementing a research project inrespect of a business problem. A Management Thesis is the culmination of trainingprovided to the student on practical applicability of the theoretical concepts learned bythem. Apart from this objective the other objective related to the project study is givenbelow.

The study was performed aiming at the following objectives:

Objective of the study-

Understanding the merchandise assortment planning concept and process adopting byapparel outlets at Jalandhar.

To study about customer’s preferences towards it.

To analyze product requirement of consumers from provision store, superstore etc.with frequent use.

And apart from these all stated objectives my first and foremost objective was toacquire the practical knowledge about the Merchandise Assortment Planning like how


these retailers do this process for their survival and how they fulfill demands ofcustomers.

Need and Scope of study

Need

By identifying the factor crucial to target market retailers could add more value to thegarment value chain by focusing on specific factors rather that following please allpolicy. By identifying the important factors expectation of the customer can be easilymet. So it is required to explore the apparel attributes that are perceived as importantand attributes that please more to males and females.

Scope

Doaba region of Punjab have been considered to identify the apparel related attributesthat are more important to population of Doaba region. To represent regionrespondents from three major cities will be considered Kapurthala, Jalandhar andPhagwara

LIMITATIONS OF THE STUDY

Time constraint- The major limitation of this project is the time period for this thesisbecause it is not possible to look in to each and every aspect of MerchandiseAssortment Planning in such a short span of time.

Because all research is related to Jalandhar only and here a limited scope is available forthese types of studies.

People whom data will be collected can be biased on some time and because of lack ofawareness and lack of knowledge people can give wrong opinions.


Since the results will draw on the basis of Information which will be provide by therespondents; chance of response error might possible. Disinterest of customers maygenerate non response while collecting data.

BENEFITS

To Self-

Knowledge earning.

Gaining practical exposure to Merchandise Assortment Planning.

Gain knowledge about customer preferences.

To companies-

This report will be beneficial for companies and outlets too because from this reportthey get to know about their customer’s preferences.

From this report they will get the knowledge about required changes in their strategiesand customer base.

To customers-

They will get to know about retailer’s strategies and their work process.

From this report they can say their views and their opinions about these retailingstrategies, so it is beneficial for them to make all required changes in system.


RESEARCH METHODOLOGY

For this projesct one has to know each and every aspect of the concept thoroughly. Andthen for merchandise assortment planning one has to get update with the latest trendsand all factors which are continuously affecting these decisions. So acquiring the dataregarding this I gone through by several things like:

Books;

Magazines;

Journals; and

Web site.

In order to understand the merchandise assortment planning process, as per theobjective stated, the various steps which are to be followed are given below:

Planning the research design.

Selecting the research method.

Selecting the sampling procedure.

Data collection.

Evaluating the data.

Preparing and presenting the research report.

RESEARCH DESIGN

Research design essential because it facilitates the smooth flow of various research processes. In order to get the appropriate results on a clearly defined research topic,the design chosen by the research is exploratory in nature.

Exploratory studies: This research is carried out to make the problem suited to moreprecise investigation or to frame a working hypothesis from an operational prospective.


It is not used in case where definite result is desired as in our research case where onlyimpact is to be studied.

This research can be conducted using both qualitative and quantitative technique.

As a part of exploratory studies the secondary data is being collected since this topic isvery highlighted in all over India and the sector growth is also very rapid. On the basisof that in Jalandhar context this research is an attempt to know the perception ofJalandhar people and the apparel store retailers.

RESEARCH METHOD

After developing an appropriate research plan, it is important for the researcher toselect a proper research method. For this research, the research method chosen by theresearcher are secondary data and survey methods.

Secondary data studies: This is concerned with the analysis of already existing data thatis related to the research topic in question.

Surveys: This is a research technique, which is used to gather information from asample of respondents by employing a questionnaire.

These surveys will be conducted among the:

Apparel store retailers,

Customers,

And all the sources I got to know by the proper guidance and immense knowledge andexperience of my faculty supervisor. So these are the main sources of my project study.

SAMPLING PROCEDURE

Sampling is generally a part of the research design but is considered separately in theresearch process. Sampling is a process that uses a small number of items or a smallportion of a population to draw conclusion regarding the whole population. For thisresearch the sampling method chosen is simple random sampling and ConvenientSampling.Since in Jalandhar only few organized apparel outlets is their so the


unorganized retailers also being chosen for interviews and customers are chosen atrandom.

Sample Size: Sample size is around 13 for apparel outlets to study their merchandiseassortment planning and around 100 for customers to understand their preferences.

Sampling Unit: John Players, Adidas, Oxemburg, Spykar, Reebok, Peter England, Lilliput,Sportking, Gini & Jony, Monte Carlo, Priknit, Cotton County, Koutons Gas,TommyHilfiger,Espirit,

Sampling Area: Jalandhar City.

DATA COLLECTION

After preparing a suitable sample, the researcher collects the data from the units in thissample. As stated above that research method which will be used in the researchcomprises of surveys therefore data collected will be of primary in nature and partlysecondary since secondary data will also be taken.

EVALUATING AND ANALYSING THE DATA

This step includes editing, coding, tabulation and processing of collected data. TheSchedules are required to be edited during the field survey for necessary corrections.After the survey was complete they are required to be checked again for completeness,accuracy and uniformity.

The next step was coding. Different categories were identified into which responses areclassified. Then tabulation was done. Data was sorted into different categories andnumbers of cases that belong to those categories were counted.


PROCESS FLOW OF THE PROJECT

DESIGN OF QUESTIONNAIRE


PILOTING BASED ONQUESTIONNAIRE AFTER FEEDBACK

REDESIGN THE QUESTIONNAIRE

QUALITY CHECK

GETTING QUESTIONNAIRE FILLED

FINDINGS, RECOMMENDATIONS &CONCLUSIONCORRECTION OF DATA

DATA ENTRY

DATA CLEANING

ANALYSIS


EMPIRICAL ANALYSIS

Growing economy, globalization, retail trends, increasing income levels, healthylife-style, technical advancement; these are some of the factors which are continuouslyaffecting every business segments. So we can say this is a golden period for businessworld. But on the other side because of increasing competition, inflation, highcustomization; these business persons are finding some new and effective ways toovercome these problems. And in apparel segment, it is world’s biggest businessindustry. Clothing is one of the basic needs of a common person. So in everycircumstance, this is a sector which is definitely going to make profit.

And it will increase more and make a brand leader of this segment only by adoptingsome latest strategies i.e. Merchandise Assortment planning.

As researcher have taken interviews from some executives from various appareloutlets, from that collected data he analyzed that-

About retailers-

Retailers are very much aware about this and they are making their all strategiesaccording to it.


There are so many factors which came in front of taking these decisions i.e. price,quality, fashion/trends, looks, brand name. And after considering these all, retailerschoose the best product mix for their outlets.

And it is not a story of only big giants, even small players and traditional shopkeepersalso now adopting these strategies to attract and retain customers.

Now a customer can find all those features and product which he thinks, in a singlestore only because of these planning. For example, in a single outlet a range of variousstyles in various sizes in various colors product is available. (apparel segment)

Before these decisions a retailer considers so many other factors too like sales targets,financial objectives etc.

In merchandise assortment planning, for these retail outlets, apparel companies arealso providing support to them so that they can make profits for themselves and forcompany too.

Basically apparel industry is based on latest fashions and trends. And fashion remainsfor a little time of period. So it is too difficult to keep a wide number of verities in theirstores for retailers. As fashion become outdated their stock of inventory will becomewaste. So they are very much considering merchandise assortment planning and otherbenefit providing by apparel companies to them. If it happened that fashion willbecome outdated then companies will also provide full support to these outlets andthey share loss also with them.

Customer’s preferences about it-

The main thing which researcher found about customer’s perception about it that theysaid, “When we wear any branded apparel then automatically they feel a sense ofsatisfaction, a sense of grace in them.” Said by Sukhkit Sandhu and Rajdeep Gill.

And Mr. Gagandeep said they prefer mainly the discounts or any offers in outlets.According to him because now in market all companies are providing a good and similarquality, so why not we go for a discount store.

A tea-staller in front of Peter England outlet, Mr. Pappu said he also wears PeterEngland shirts and the store owner also provides him a high rebates for it and in this hefeel more confident.


Mr. Deepak Bhardwaj said he prefer the goodwill/ brand name for purchasing any newapparel. As he said he prefers Peter England and John Players more than Koutons orCotton County.

Miss Anisha said when John Players launched their new segment, Miss Players, fromthat time she prefers Miss Players outlet for a new purchase.

And according to Mr Suresh, because of Hrithik Roshan, as a brand ambassador of JohnPlayers, he also prefers John Players.

Different customers have their own demands and needs so their preferences alsovaried from each other.

But mostly youth/college going young boys n girls of Jalandhar prefer Spykar,Kapsonsand No exit Outlet for apparel purchase.

While young business persons and professionals prefer John Players and Peter Englandfor apparel purchase.

And in children’s segment, a surprising result came after research that is mostly parentsprefer traditional outlets for children’s apparel purchasing. Because in these outlets,they will found more varieties and apparel categories then a branded outlet and theycan make here a high bargaining also.

But if we see overall result, so today even so many branded outlets are here in marketthen also mostly people prefers traditional outlets for purchasing apparels. One thing isthat also these branded clothing is available in these unbranded outlets too and onthese unbranded outlets, customer found these clothing at much cheaper rate thentheir own brand’s outlet.(Mostly people think this)

So researcher analyzed so many important and some funny aspects also but these allanalysis shows the booming stages of retailing in India. And for these retailers so manythings are important for making profits as brand name, brand ambassador, quality,price, displays/advertising, discounts and categories of merchandise. And researcherfound that Merchandise assortment is a vital need for them. After adopting thesestrategies now they are feeling the change in terms of customer base, in terms of brandequity, in terms of profits and in terms of happiness.



FINDINGS AND SUGGESTIONS

As for this topic, there are two type of hypothesis can be possible, i.e.-

1Null Hypothesis-All stores equally appeal to young professionals.

Findings & Suggestions


Alternative Hypothesis- All stores don’t equally appeal to young professionals.

2Null Hypothesis-All stores equally appeal to college and school going youth.

Alternative Hypothesis- All stores don’t equally appeal to college and school goingyouth.

Data collected after survey-

Researcher went to all those sample units for collecting data and found data from directinterviews and surveys from customers and retailers.

Questionnaire for Retailers-

Q.1. Tell me something unique about your outlet and brand and about your vision andmission?

Ans.- For answering this questions, all retailers told about their own outlet’s specialties.

As John Players and Peter England have a good name in formal apparels and they havea good brand name also.

While on other side Adidas, Reebok, Spykar, Oxemburg,Lee ,Lewis,Wrangler have ahuge impact on youths, they are named as fashionable and casual apparel brands.

And on other side some brands are there, those focuses on all family apparel needs likeSportking, Monte Carlo, Priknit, Cotton County, Koutons.

Same as Gini & Jony and Lilliput focuses only on children’s apparels.

So these all apparel outlet have their own identification in market by their own brands,their own products features, varieties. And these all things give them competitiveadvantage and customers are also satisfied with them.

Q.2. Which is your target market and what you doing to capture it?

Ans.- As given in above question’s answer, these all retailers have their own targetmarkets and their all efforts are focused on capture as high market share as possible.


Formals John Players, Peter England

Casuals Adidas, Reebok, Spykar, Lee,Lewis,Wrangler,Gas,Tommy Hilfiger

All family apparel market Sportking, Monte Carlo, Priknit, CottonCounty, Koutons,Lee solly,

Children’s market Gini & Jony, Lilliput

And they are adopting so many strategies for it, like pricing strategies, promotionalstrategies and most important merchandise assortment planning decisions.

Q.3. Before taking decisions about your product varieties and range (MerchandiseAssortment Planning), what factors you considered?

Ans.- For selecting what and how much merchandise they have to purchase and theyhave to keep in their organization, they considers mainly-

Financial Objectives

Customer’s preferences and demand

GMROI figures

Retail brand’s image and good will

Seasonal demand and fashion

Q.4. Is there any proper strategy you are adopting for these decisions?

Ans.- Some stores have their own strategic plans for capturing market and company’smanagement also helps these store owners in strategic planning. As all brands havetheir own vision and mission so mainly these apparel store owners also adopting samestrategies for them. But as all customers have their own specialties so these retailersalso have to change their strategies according to their own localities.


As these retailers are getting their own sales plan for every year and for every monthfrom companies. Then they make some modifications in the plan according to the localcircumstances.

Q.5. Is it important to make a prior planning or strategy for merchandise decisions? Andif yes then why?

Ans.- Without any planning or strategy, we can do any work but for be assure aboutthe work’s success we should make some planning or strategies. Same is applicable inbusiness context also. And merchandise decision is not a small aspect for any retailorganization. Merchandise is the most important part for apparel industry. It shows theimage of the company, the vision of company, customer’s satisfaction or dissatisfaction.

So for create a good image in customer’s mind and for capturing most of the marketshare, they have to make a prior planning.

Q.6. Are you facing any kind of problems or difficulties for these decisions and planningbecause I think in a city like Jalandhar, it is not possible to keep a deep variety and wecan’t keep a limited range of variety also because of quickly changing customer’spreferences and competition?

Ans.- Yes this thing is also very important for any apparel retailer. Sometimes becauseof brand’s image and influencing customers they have to keep that merchandise alsowhich have no demand in market but often they prefer only that merchandise whichhas demand in local market.

Q.7. Are all decisions related with your outlet’s merchandise are independently takingby you or is there any interference or support by company’s side also?

Ans.- As in above questions’ answers given, local retailer got support from companyside too for their strategies and planning and they make some changes according to thelocal circumstances.

Q.8. Do you think your plans are going well according to your expectations?

Ans.- Well, this is the question on which researcher found different approaches fromretailers. As John Players, Peter England, Adidas, Reebok these are some of the outlets,which have a range of products of high prices. So in Jalandhar normal customers don’tprefer these types of clothing because of its high prices. And others retailers as Cotton


County, Priknit, Koutons have low range products also and people of Jalandhar likethese products much so they are enjoying profits more than high price showrooms

Questionnaire for Customers-

Q.1. From where you prefer to buy apparels-

Any traditional store (unbranded) or

A branded retail outlet.

Ans.- Mostly people from Jalandhar prefers unbranded and traditional stores more.

62 people from total 100 customers said this. And others prefer branded clothing.


Q.2. What factors you are considering before taking any apparel purchasing decision,most-

Price,

Variety

Quality

Looks

Fashion/trend

Ans.- As research is being conducted in Jalandhar so, here most people prefers lessprice items means price factor is most important thing for them. And they cancompromise with quality but they want fashionable and good looks items.


Q.3. Are you satisfied with the services and varieties of products provided by theseapparel outlets?

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Ans.- Important thing is that they are getting large categories with low prices because ofhigh competition. So customers are satisfied with all these retailing scenario because itis in favor of them


.

Q.4. Which apparel outlet you prefer most for buying clothing? (To college/school goingyouths.)

Spykar

Tommy Hilfiger

Adidas

Reebok

Sportking

Monte Carlo


Koutons

Cotton County

oxemburg

Or any other organized or unorganized retail outlet

Ans.-

Q.5. Which apparel outlet you prefer most for buying clothing?

(To young professionals.)

John Players


Peter England

Koutons

Cotton County

Monte Carlo

Or any other organized or unorganized outlet

Ans.-


Q.6. Which apparel outlet you prefer most for buying clothing? (For children apparelpurchasing)

Lilliput

Gini & Jony


Ans.


Q.7. Do you think in organized retail store, a customer have less opportunities forbargain, less number of choices, high prices, less knowledge and so many othernegative factors?

Yes

No

We can ignore them.

Ans.-


Q.8. Then what you think is this new retailing scenario good for India? As in India,literacy rate is so low, people are not so much aware about new retail concept. So inthis time is it has a good future in India or not?

Yes, definitely

No, not at all

Can’t say anything now, let see in future.

Ans.-



Q.9 So do you want to keep your loyalty with your favorite brand or can switch?

Brand loyal,

Nothing like loyalty, just like this brand (on the base of past sales and observation) butcan switch if found any other good option,

Any brand no matter; just it should satisfy their needs.

Ans.-


Q.10. If you have to give marks to your favorite brand from out of 10, then how muchwill you give?

Ans.

MARKS NUMBER OF CONSUMERS GIVENMARKS IN THIS CATEGORY

10 19

9 21

8 12

7 16

6 11

5 7

4 6

3 5

2 3

1 0


Which Store do you prefer for buying clothes(young professionals)?

Observed N Expected N Residualjohn players 60 20.0 40.0peter England 24 20.0 4.0Koutons 8 20.0 -12.0cotton county 6 20.0 -14.0monte carlo 2 20.0 -18.0Total 100

Test Statistics

Which Store doyou prefer for

buyingclothes(young

professionals)?Chi-Square(a) 114.000

df 4Asymp. Sig. .000

a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.

Calculated value is more than tabulated value so null hypothesis is rejected andalternate hypothesis is selected.So all stores don’t appeal equally to the consumers.John Players is preferred brand among young professionals.


which store do you prefer for buying clothes(college and school going youth)?

Observed N Expected N Residualspykar 30 11.1 18.9adidas 17 11.1 5.9reebok 10 11.1 -1.1tommy hilfiger 2 11.1 -9.1espirit 2 11.1 -9.1sportking 21 11.1 9.9koutons 5 11.1 -6.1cotton county 5 11.1 -6.19 8 11.1 -3.1Total 100

Test Statistics

Which Store doyou prefer for

buyingclothes(young

professionals)?

which store doyou prefer for

buyingclothes(college

and schoolgoing youth)?

Chi-Square(a,b) 114.000 66.680

df 4 8Asymp. Sig. .000 .000

a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 11.1.Calculated value is more than tabulated value so null hypothesis is rejected andalternate hypothesis is selected. So all stores don’t appeal equally to theconsumers.Spykar is preferred brand among the College and School going youth.


CONCLUSION:

From allfindingscollected byresearcher,

he reached to the conclusion that in this quick-moving environment, now retailers alsohave realized that they need to work strategically for their survival. That’s why nowthey are taking merchandise assortment decisions seriously and spending their timeand efforts for it.

And it is vital for them to consider it also before doing any business. It is not only forapparel industry but now for every business segment it is necessary. Today’s scenariohas totally changed from past. Now market is totally customer-centric and highlycompetitive. So if any company wants to alive here and wanna a long-term businessthen they have to fulfill all demands of customers and follow all required patternseither it is a big giant or a small business unit.

Conclusion


That’s why in a city like Jalandhar also, retailers are very much aware about these thingsand they are doing their business according to it. And here also customer can get allthose qualities and varieties which before some years they were only thinking indreams or watching in TVs, Movies. Now all branded items available here only becauseof emerging market situations and customer-friendly market.

And if we talk about favorite brand of Jalandhar people then on the base of researchfindings, we found that-

Spykar is most famous between college/school going youths.

John Players is most favorite brand for Professionals.

And in children’s segment, parents prefer traditional outlets mostly.

And all other brands are still there in market and fighting each other for attracting moreand more customer market towards them. And this high retailing scenario affectstraditional unorganized outlets business too and now they are also giving a highcompetition to these organized retailers.

So for keep their presence with a great margin of profits also, all organized andunorganized retailers are facing a high cut-throat competition with each other. Heresame famous Darwin’s Law (on Evaluation Theory) is applicable on retailers also,”themost powerful and quick updating creature, according to the circumstances will remainalive and others who couldn’t adopt themselves according to the changingenvironment, will be finished.”

But ultimately these all things are going in favor of customers and customer will bebenefited at last.



Appendices


APPENDICES

Appendix-1

Questionnaire for Retailers- As this project study is totally based on detailed researchon topic Merchandise Assortment Planning so here researcher has used open endedand free response questions in questionnaire, those ares-

Tell me something unique about your outlet and brand and about your vision andmission?

Which is your target market and what you doing to capture it?

Before taking decisions about your product varieties and range (MerchandiseAssortment Planning), what factors you considered?

Is there any proper strategy you are adopting for these decisions?

Is it important to make a prior planning or strategy for merchandise decisions? And ifyes then why?

Are you facing any kind of problems or difficulties for these decisions and planningbecause I think in a city like Jalandhar, it is not possible to keep a deep variety and wecan’t keep a limited range of variety also because of quickly changing customer’spreferences and competition?

Are all decisions related with your outlet’s merchandise are independently taking byyou or is there any interference or support by company’s side also?

Do you think your plans are going well according to your expectations?


So at last if you wanna anything to change or wanna something should be like that waywhich you want then you can say me?

Appendix-2

Questionnaire for Customers-

1)From where you prefer to buy apparels-

Any traditional store (unbranded) or

A branded retail outlet.

2)What factors you are considering before taking any apparel purchasing decision,most-

Price,

Variety

Quality

Looks

Fashion/trend

3)Are you satisfied with the services and varieties of products provided by theseapparel outlets?

Highly Satisfied


Satisfied

Neutral

Dissatisfied

Highly dissatisfied

4)Which apparel outlet you prefer most for buying clothing? (To college/school goingyouths.)

Spykar

Oxemburg

Adidas

Reebok

Sportking

Monte Carlo

Tommy hilfiger

Espirit

Or any other organized or unorganized retail outlet

5)Which apparel outlet you prefer most for buying clothing? (To young professionals.)

John Players


Peter England

Koutons

Cotton County

Monte Carlo


6)Which apparel outlet you prefer most for buying clothing? (For children apparelpurchasing)

Lilliput

Gini & Jony


7)Do you think in organized retail store, a customer have less opportunities for bargain,less number of choices, high prices, less knowledge and so many other negative factors?

Yes

No

We can ignore them.


8)what you think is this new retailing scenario good for India? As in India, literacy rate isso low, people are not so much aware about new retail concept. So in this time is it hasa good future in India or not?

Yes, definitely

No, not at all

Can’t say anything now, let see in future.

9)So do you want to keep your loyalty with your favorite brand or can switch?

Brand loyal,

Nothing like loyalty, just like this brand (on the base of past sales and observation) butcan switch if found any other good option,

Any brand no matter; just it should satisfy their needs.

10)If you have to give marks to your favorite brand from out of 10, then how much willyou give?

Ans. - ……………………………………………

Do you wanna anything change in their operations or wanna something more fromthem then you can tell me?


Appendix-3

Assortment Plan For Boys’ Jeans

Style Straight-leg Straight-leg Straight-legTight bottom

Loose-fit Loose-fit

Retail price(in Rs.)

999 1399 1799 1299 1599

Type ofFabric

Regulardenim

Stonewasheddenim

Tinsel- Lyerabaseddenim

Broken twill Over dyed

Colors Light blue Dark blue Light blue Light blue Blue

Black Indigo Black Black Black

Black Deep blue

Figure: Assortment Plan for Boy’s Jeans at Spykar

Source: Data collected from Spykar team.


Appendix- 4

Ladies Wear

ApronAn item of apparel in order to protect regular clothing. Generally madeof cotton & may be decorative. It is fastened at the back using straps.

BathrobeIt is a wrap around robe styled with long sleeves, a shawl collar held bysash at the waist. Generally made of terry cloth.

BlousesClothing for the upper part of the body made generally of soft cloth &less tailored than a shirt May be embroidered with or without frontopening.

BraA fitted under garment worn by women to hold & mould breasts,usually consists of two cups & held by straps & elastic at the back. Maybe of cotton or p/v material.

PantiesApparel item for women worn under the outer garment covering torsobelow the waist. May be laced or without lace. With elasticatedwaistband.

CamisoleThis is a short length blouse with straight top and broad shoulderstraps.

CapeThis is a sleeveless outer garment of various lengths cut in full circle, ina segment & may have slit for arms & may have front opening.

CardiganNamed after 7th earl of cardigan, generally it is a knitted item which isopen with ribbed cuffs & hem. May be half or full sleeves.

CorsetOne piece garment which has a foundation with firm support achievedby boning. Sometimes has an inner belt which helps to flattenabdomen & to shape the figure.

Dresses Knitted& Woven

It is a main item of apparel worn by women & girls. It may be made inone or two pieces & joined at the waistline may be front or withoutfront opening.

GartersBasically elastic straps to hold the hose. These straps connect at waistline to an elastic band around waist.


Jacket/CoatDesigned to be worn over other clothing generally hip length. Mostlythe coats are with set- in sleeves & the classic coats are generally fullylined & front open.

Knitted/ WovenEnsemble

A set of garments other than suits made up of same fabric. This setcovers upper & lower part of body.

LeotardsKnitted apparel item which is fitted and in one piece with tail whichsnaps between legs. Usually meant for dancers & acrobats.

Night DressMade from light weight fabric & worn while sleeping. Generally it isdecorated and may have pleats or gathers with small / delicate printmotifs.

OverallPants with a bib top & suspender straps over the shoulder which closeat the back.

ParkaIntroduced during the 1930's for winter sports, this garment is apull-on jacket with an attached hood & may have distinctive stylefeatures. .

PetticoatIt is an under garment for girls/ women starting at the waist.Depending on over garment it may be full or narrow, lace trimmed,tailored long or short.

RaincoatDesigned to be worn during rainy season & made up of water proofmaterial or fabric with special surface finish to make it water repellent.It is generally front open with attached hood.

RomperOne piece sport suit or jump suit with shirt & shorts or bloomer joinedby waistline seam. May have elasticized waist.

ShirtsApparel for the upper part of the body. Usually worn with pants &buttoned right over left for women. Attached with collars in differentstyles such as button down or cut away & worn casually or formally.

Shirts WithZipper

Similar to shirt, but this item is meant for casual wear with zip openingin front. May be with or without hood & with or without sleeves.

Shorts Pants shorter than knee length mainly worn by adults & children for


sports and/ or casual wear.

SkirtsSeparate item of clothing starting above or from the natural waistline.May be full knee or mini length. This item of apparel is generally neatlytailored with zip or button opening. May be pleated or wrap around.

SlipsUndergarments worn by women starting from bust & generally held inplace by shoulder straps. Length can vary according to the length ofthe dress.

Swim-SuitAs the name suggests it is an outfit designed for swimming or sunbathing, two pieces or one piece. This outfit reveals more body as topis similar to brassier & the other piece similar to panties.

T-ShirtKnitted, pullover sport apparel made in any colour, frequently screenprinted. May be crew neck or polo neck & with ribbed collor & cuffs.

TrousersDesigned to cover lower torso & made to fit around each leg. Usuallymade with waistband & fly front or button closing.

WaistcoatAn item of apparel of waist length worn over shirt or under a suitjacket usually made of cotton / silk with or without embroidery withback part in satin fabric.

Wind CheaterGenerally light weight nylon jacket, zipped front with close fittingelastic waistband & cuffs or drawstring waist often with attached hood

Appendix-5

Men's Wear

AnorakHip length jacket with drawstring hem & waist with zip front. Oftenquilted or fur lined, designed for cold weather.

BathrobeIt is a wraparound robe styled with long sleeves, a shawl collar held bysash at the waist. Generally made of terry cloth.

BlousonJacket with a low waist line & usually shorter than hip length andgathered into flat waistband or pulled by drawstring.


Boxer ShortsShorts with elasticated waistbands similar to those worn by boxers &often printed in interesting motifs made up of cotton or syntheticmaterial.

CarcoatCoats, generally of hip length with full front opening. May be single ordouble breasted with long sleeves. These are utility coats comfortablefor driving.

CardiganNamed after 7th earl of cardigan, generally it is a knitted item which isopen with ribbed cuffs and hem. May be half or full sleeves.

Night Gown /Dressing Gown

Styled for sleeping time and worn over night suit. It is generally made ofsilk or cotton. With string fastening at the waist.

Night SuitSleeping outfit generally made of cotton. The shirt being front open andloose fitted while pants are with drawstring waist and wide bottom.

OvercoatMen's coat, heavier than topcoat and designed for very cold weather.Often fully lined, with fur or without fur.

PulloverKnitted apparel item- round, crew or V-neck pulled on over the head.May be in interesting knit structures such as purl, cable, and jacquard.

ShirtsApparel for the upper part of body. Usually worn with pants & buttonedleft over right for men. Attached with collars in different styles such asbutton down or cut away & worn casually or formally.

ShortsPants shorter than knee length mainly worn by adults & children assportswear and casual wear.

Skisuit

As the name suggests, it is generally worn for winter sports especiallyfor skiing. It may be a jumpsuit or two piece suit. Trousers are mediumwidth with knitted band at the ankles. Jackets may be quilted with nyloninsulation which is added for extra warmth.

T-ShirtKnitted, pullover sport apparel made in any colour, frequently screenprinted. May be crew neck or polo neck & with ribbed collar & cuffs.

Track Suit Outfit designed for exercising, popularized in 60's. Consisting ofzippered jacket and loose pants with elastic waistband. This suit is


generally made up of fleece or velour.

TrousersDesigned to cover lower torso & made to fit around each leg. Usuallymade with waistband & fly front or button closing.

Under PantsIt is an under garment generally tight fitted & made up of stretch fabric/knitted fabric with elasticated waistband.

WaistcoatAn apparel item of waist length worn over shirt or under a suit jacket.Usually made of cotton/ silk with or without embroidery with back partin satin fabric.

Wind CheaterGenerally light weight nylon jacket. Zipped front with close fitting elasticwaistband & cuffs or drawstring waist, often with attached hood.

WorkwearBasically one piece garment and with functional features. It is mainly forindustrial use & made up of heavy fabric without any fancy features.


REFERENCES

List of books and articles-

Retail Management, ICFAI University Press,

Business Research Methods, ICFAI University Press,

Case studies in Retail Management (Volume-2), ICFAI University Press

Nordstrom’s Perpetual Inventory System, Page No. 245-260

Turnaround of JC Penney, Page No. 261-274

Big Bazaar: Serving the Classes, Page No. 275-276

Retail Management Review, ICFAI University Press

REFERENCES


Cases of Retail Management, Prentice-Hall Publications.

Retailing Environment in India, Tata-McGraw Hill Publications.

Retail Managemen,lewin

Journals:

Algie, J. & Korlimbinis K. (2005), “Improving The Store Design Of Male Fashion And ApparelRetailers”, ANZMAC conference,http://smib.vuw.ac.nz:8081/WWW/ANZMAC2005/cd-site/pdfs/4-Retailing/4-Algie.pdf [viewedon 05/03/09]

Darley, W.K. & Su Lim, J(1999), “Effects of store image and attitude toward secondhand storeson shopping frequency and distance traveled”, International Journal of Retail & DistributionManagement, Vol.27, pp311-318

Gerth, K.C. (2004), “Situational, consumer, and retailer factors affecting Internet, catalog, andstore shopping”, International Journal of Retail & Distribution Management, Vol.32, pp5-18

Mattila, A.S. & Wirtz, J. (2001), “Congruency of scent and music as a driver of in-storeevaluations and behavior”, Journal of Retailing

www.accessmylibrary.com [viewed 05/03/2009].

Neihm, L.S. & JinMa, Y. (2006), “Service expectations of older generation Y customers; Anexamination of apparel retail settings”, Managing service quality, Vol.16,Issues 6,pp620-640

North, E.J. & Kotze, T (2003), “The importance of apparel product attributes for female buyers”,Journal of family Ecology and Human sciences, vol. 31

Paulins, V.A. & Geistfeld, L.V. (2003), “The effect of consumer perceptions of store attributes onapparel store preference”, Journal of Fashion Marketing and Management, Vol. 7, pp371-385


Scarpi, D. (2006), “Fashion stores between fun and usefulness”, Journal of Fashion Marketingand Management, Vol. 10, pp.7-24

Visser, E.M., Prez, R.D. & Noordwyk, H.J. (2006), “Importance of apparel store attribute:Perception of female customers”, Journal of Industry psychology, vol. 32(3), pp.49-62

Mohan, R. & Gupta, C. (2007), “Customer preference patterns in apparel retailing in India”, Asiapacific retail conference

www.cygnusindia.com/pdfs/TOC-Indian%20Retail%20Industry.pdf[viewed on 25/02/09]

Moye, L.N. (2000), “Influence of shopping orientations, selected environmental dimensions withapparel shopping scenarios, and attitude on store patronage for female consumers”

http://scholar.lib.vt.edu/theses/available/etd-03022000-13200029/unrestricted/part12.pdf[viewed on 2/03/09]

List of websites articles-

www.google.com

www.wikipedia.com

www.johnplayers.com

www.koutonsindia.org

www.cottoncounty,com


www.customerresearch.com

www.researchindia.org

www.adidas.com

www.priknit.com

www.rbk.com

www.lilliput.com

www.oxemburg.com

www.montecarlo.com

www.answers.com

www.managementjuice.com

www.businesscases.com

www.prenticehall.com

http://www.indiainbusiness.nic.in/


GLOSSARY


GLOSSARY

Administrative Management Problems- The problems related to the resources retailfirms, chiefly, financial, human and locational resources.

Advertising Effectiveness- The degree to which the advertisements have produced thedesired results of helped the retailer accomplish its advertising goals.

Allowances- The additional discounts and price reductions that are given to customersby the retailer.

Analog Model- It is used to estimate the potential sales of a new store on the basis ofthe revenues of existing stores in identical areas, the competition at a prospectivelocation, the expected market share of the new store at the proposed location, and thesize and density of the primary trade area of the location.

Balance Sheet- It is a snap shot of the financial position of the retailer at that momentof time. The balance sheet consists of three components Assets, Liabilities and Owner’sequity (Net Worth). The balance sheet is based on a simple concept, i.e., in order toacquire assets, a firm (retailer) must pay for them with either debt (liabilities) or withthe owner’s capital (shareholders’ equity).

Chain Stores- Stores that have two or more retail outlets that are commonly owned andcontrolled. These stores have a centralized buying, and merchandising system and sellsimilar lines of merchandise.


Combination Store- A blends of a super market and a general merchandise store,where the general merchandise contributes more than 40 percent of the sales.

Customer service- A set of activities and programs taken up by a retail organization tooffer their customers a rewarding shopping experience.

Customization- The production of individually customized merchandise at the cost of amass produced product.

Destination Store- Store that has larger trading area than a competitor with a lessunique appeal. It offers a better product assortment, have heavy promotions, and astronger image.

Everyday low pricing (EDLP)- A version of customary pricing, whereby a retailer strivesto sell its good and services at consistently low prices throughout the selling season.

Franchise Store- A store based on a contractual arrangement between a franchiser(manufacturer) and a retail franchisee, which allows the franchisee to conduct a givenform of business under as established name and according to a given pattern ofbusiness.

GMROI- Gross Margin Rate on Investment.

Hypermarket- A large retail store that offers products at a low price. It is a combinationof a discount store and a food based supermarket.

Main Store approach- Main store approach in this approach, the main store or theparent organization control the operation of the branches.


Market Positioning- The kind of image the retailer wants to establish among its targetgroup and the group of firms with which it wishes to compete and coexist.

Market Segment- A group of customers whose needs will be satisfied by the same retailoffering because they have similar needs and go through similar buying processes.

Merchandise Controlling- A process for evaluating revenues, profits, turnover, shortageof inventory, seasonal fluctuations and costs for each product in the merchandisecategory being offered by the retailer.

Merchandise Handling- The physical handling of the merchandise by the retailer.

Merchandise Mix- The total range of products that a store offers to its customers.

Resellers- Retailers who buy merchandise in large quantities at discounted prices fromthe retailers, and sell them at normal prices in their shops.

Shopping Goods- Shopping goods are bought less frequently than convenience goods.These goods include clothing and electronic goods etc.

Specialty store- A specialty store is a type of general merchandise store that sellslimited lines off closely related products or services to a select group of customers.

Store Image- Image of a store comprises how the consumer feels about the store.Therefore, retailers must be sure about how they want their store to be perceived bythe customers.

Warehouse stores- are discount food retailer with a size of 100,000 square feet. Theycater to customers who look for low price deals.


Documents

Merchandise assortment Planning oF Various Retail counters ta Jalandhar