Internship Report -nilesh Sinha

Internship Report

“Development & Implementation of Merchandising Plan”

Company Name: Fashion Global Retail Ltd. (Future Group)

Submitted By: Nilesh Sinha Smba08139

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Institute of Management Technology, Dubai Table of Content Acknowledgement………………………………………………………….3 Executive Summary……………………………………………………….4 Introduction………………………………………………………………...5 Future Group………………………………………………………...5 Values………………………………………………………………..7 Mission………………………………………………………………7 Loot Mart…………………………………………………………………..8 Clearance sale Outlet store………………………………………………...8 The Project…………………………………………………………………9 Methodology ………………………………………………………....9 Issues of Concern……………………………………………………..10 Operations part at warehouse and store……………………………....12 Recommendation……………………………………………………...13 Major Learning in Internship………………………………………………...14 Bibliography……………………………………………………………….....15 2|Page

Appendices…………………………………………………………………...16 REM (Retail Enterprise Management)…………………………………...16 Cash Memo……………………………………………………………….17 Daily Sales Report (DSR)………………………………………………..18 Category wise sales and margin Table headings…………………………19 Conclusion……………………………………………………………………20 ACKNOWLEDGEMENT

This project report has provided me with a deeper knowledge about the area of Store operation and about the retail sector. With this project, I hope to develop a futuristic view of industry’s progress. Behind every major endeavor lies not merely individual brilliance but the Ideas, Assistance and Guidance of a Team of Individuals. A study like this cannot be completed without help from other persons and therefore I would like to express my gratitude to all persons having contributed to completition of this project. I Would thank the Management at Fashion Global Retail Pvt Ltd ( Future Group) giving me the opportunity to do my two-month project training in their esteemed organization.

My sincere thanks to Mr. Upamanyu Bhattacharya, CEO, Fashion Global Retail Pvt Ltd. (Future Group) for granting me to undertake my Internship training. I am also thankful to him for giving me his valuable time and trusting me.

I am highly obliged to Mr. Hemant Kejriwal, Deputy General Manager, for guiding me a long way and for successful completion of my internship with in the time frame, who has given me the initial orientation about the organizational activities, whose patience and faith in my abilities always boosted my confidence.

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I am also thankful to Mrs. Nimisha Gupta, Senior Executive Manager for providing me with the conceptual base and secondary data and for her timely and valuable suggestions and help throughout this internship period. Last but not the least , I want to thank all the team and staff member of Fashion Global Retail Pvt Ltd.,Jogeshwari and clearance sale outlet,Dadar,Mumbai for the support that they gave me over the course of two months of training program.

EXECUTIVE SUMMARY India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. As a part of my MBA curriculum I have done my internship training at Fashion Global Retail Pvt Ltd. (a Future Group Company), Mumbai, India. In this report I am going to share my experience in that company for the period of 60 days from 5.05.2009 to 05.07.2009. During my internship my project Title was “Development and Implementation of Merchandising Plan”. As a part of this task I have some objectives to do at Clearance Sale Outlet store, Dadar, Mumbai. i.e. Daily Tracking Category wise sale and Margins. 4|Page

Tracking of Key SKUs and Brands. Analysis and Action Required to Improve Sales & Margins Customer observation. Identification of New SKU’s Suggesting The Pricing and Offers for the SKU’s

INTRODUCTION FUTURE GROUP Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s speciality retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, eZone, home improvement chain, Home Town and rural retail 5|Page

chain, Aadhaar, among others. It also operates popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centers, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group’s joint venture partners include, US-based stationery products retailers, Staples and Middle East-based Axiom Communications. Other group companies include, Future Generali, the group’s insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’

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The Future Group employs over 30,000 people and was counted among 15 best employers in India in a survey conducted by Hewitt Associates in 2007 in association with The Economic Times. A staunch believer in the group’s corporate credo, ‘Rewrite Rules, Retain Values,’ Kishore Biyani considers Indianness as the core value driving the group. He was recently awarded the Ernst & Young Entrepreneur of the Year 2006 in the Services Sector and the Lakshmipat Singhania - IIM Lucknow Young Business Leader Award by Prime Minister, Dr. Manmohan Singh in 2006. He was also awarded the CNBC First Generation Entrepreneur of the Year 2006. Kishore Biyani was born in August 1961 and is married to Sangita and they have two daughters. He recently authored a book, ‘It Happened in India’ that captures his entrepreneurial journey and the growth of modern retailing in India. Values •

Indianness: confidence in ourselves.

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Leadership: to be a leader, both in thought and business.

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Respect & Humility: to respect every individual and be humble in our conduct.

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Introspection: leading to purposeful thinking.

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Openness: to be open and receptive to new ideas, knowledge and information.

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Valuing and Nurturing Relationships: to build long term relationships.

Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space 7|Page

leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewedambition.We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. Loot Mart (Fashion Global retail Pvt Ltd)

Loot Mart is an apparel store from the Future Group. They stock several brands for men, women and kids at affordable prices, which is their USP. The collection includes formals, casuals and party wear. They have denims and formal shirts and trousers. You will also get tops, jeans, trousers, skirts, cargos etc. The store offers several good discounts and deals and would be a good place to look if you wish to purchase large amounts.

Clearance Sale Outlet at Dadar 8|Page

Dadar is a small place in Mumbai with a railway station on the Mumbai Suburban Railway. It has Western Railway line and the Central Railway line on both the side. Dadar is clearly demarcated into East and West by the railway line. Dadar East is better known as the Dadar T.T and Dadar West is referred to Dadar B. B. The shopping market in Dadar West Market is popular for shopping amongst the residents of Mumbai. The Clearance Sale outlet is the company’s liquidation store, where the company brings all its dead stocks from the other stores around the India and sale it on the best offer for the consumer to attract. In this store the company puts the items like Apparels, Crockery’s, Electronics ,toys, Books, Luggage,Bags,kitchenware items etc.The company is facing the competition with local market and stores situated in Dadar area near this clearance outlet store. The need for the project arises to sustain as well as increase the current market share through Development and implementation of merchandising plans. After the careful analysis of current environment the only feasible solution comes of doing the attractive pricing and good offers for the customer to get attracted. THE PROJECT This is the company’s First Clearance sales outlet store in Dadar area with the Intention of Liquidation of extremely old and slow moving merchandise from all categories across all the businesses within the group. The categories include like Luggage, Home ware, Kitchenware, Furniture’s, Electronics, Apparels, Crockery etc. at deep discounts including selling at most the below cost to clear up the stock and create space in warehouses as well as convert the dead inventory into cash and get back in circulation. It was the first time a clearance sale of this type happened where there was no clear merchandising strategy to start with and the entire buying merchandise model needed to be developed a model to evaluate the viability and possibility of more such outlet in various parts of India. Methodology •

The work involves liaising with the category managers of each of the category across the 9|Page

business to check on merchandise availability for liquidation. •

IT Configuration of the article masters, purchase order/stock transfers order following up for the dispatch the delivery and time inventory at the store.

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Space planning at the store based on the category, adjacency, infrastructure requirements and quantity of stock available.

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Decision on pricing and promotion to be run on various categories based on physical condition of the merchandise like: ○ Current market value. ○ Quantity of stocks available. ○ Period available for sale (expiry date).

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Tracking the performance (sales Qty, revenue, margins) of key SKU’s, Brands and categories.

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Revising the price for promotion, location for the available categories in the store.

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Circulation of the category wise clearance sale performance to the respective category managers to keep them updated as well as to get their feedback on changes to be made in pricing/promotion if any.

Issues of Concern The issues of concern at the clearance sale outlet which leads to the low sales and low margins are:

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As the store is non air conditioned, so it becomes very humid and stuffy environment inside the store which creates difficulty for the customer to stay for longer time.

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The Lack of skilled and trained staff in the store, who cannot able to convince the customer to buy the product and could not able to maintain their respective section attractive and easy to get product which also affects the overall sale of the store.

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The Poor Ambience of the store leads to low customer entry so it is also one of the major concern for the company to liquidate the products.

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There is no proper segregation of the items in any particular section, which makes difficult for the customer to look at particular item, which also reduces the sale.

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There is no Guarantee/warranty on any of the product displayed on the floor which creates some doubt in the minds of the customer about the quality of the product.

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As this is a liquidation store so there are Limited number of items in each category which also dissatisfy the customer who are looking for any particular item which is not present in the store due to limited stocks.

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The Pricing should be done in keeping with the type of customers entering into the store.

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The major competition is with the nearby local market stores who are selling the same items in good price.

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The Lack of maintenance of the store and cleanness of the SKU’s also distract the customer in buying the product. 11 | P a g e

Operations work at the warehouse and store •Warehouse Manager receive the SKU’s boxes from the suppliers then does the following

work: ○

First check the correct consignment has been reached or not.

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Getting unloaded the boxes to the warehouse properly.

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Checking the Box condition whether the box is in proper condition or not, if not then making the complaint along with company stamp.

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Does the receiving signature and put the company stamp on receipt.

After receiving boxes the warehouse manager also does the following activities: ○ Checking of Carton Quantity 12 | P a g e

○ Checking Delivery Number ○

Making Good Received Note (GRN) in the SAP.

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Making STO (Stock transfer Order) about the quantity which is not present in the Box.

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After That the Warehouse manager does register entry of the following : ○

Delivery Number

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Purchase Order Number

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Number of Quantity of product received.

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Stock Transfer Note Number

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Total Amount

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Good Received Note Quantity

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Good Received Number

After that the store Manager does the section wise Display of the SKU’s with proper price signs and offers.

Recommendations There are few recommendations that are recommended if the project is to be conducted again in future. •

As this store is for liquidation of dead stocks, so pricing should be done keeping it in mind.

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The running offers on the products should be made more attractive, which also helps in attracting more numbers of customers.

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By Improving the Ambience of the Store helps in attracting more customers and increases the sale.

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The understanding of consumption pattern area-wise will help us to target and promote our self easily in the specific areas.

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To do the customer profiling based on area (geographic) as well as on community and on their consumption patterns.

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To hire more Skilled and trained Staff to help the customers and to also improve the sales as if in depot section, a skilled worker can improve the sale by segregating the section category wise.

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The Employees should be more involved in decision making to become more differentiated and the Company should provide good incentives to store staff.

Major Learning in the Internship About Retail Industry •

Retailing in India is gradually inching its way toward becoming the next boom industry.

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Modern retail has entered India as seen in sprawling shopping centers, multi- storied malls and huge complexes offer shopping, entertainment and food all under one roof. In Store

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Events form the major audience attraction. People love to see their kids perform, so any activity involving them creates a lot of footfalls.

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The customer of coming to store can be classified has highly price conscious and little 14 | P a g e

quality driven, any change in price can drive the customer away or pull a lot of crowd as seen in picture. •

The shrinkage or generally termed as Shortage while handling or storing or theft of goods forms a major chunk of losses and need to be kept in control.

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Most of all major responsibility of customer satisfaction lies on the shoulders of floor staff, the lowest on the hierarchy. Because they are the one who communicate to the customer directly and form the everlasting impression.

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With plethora of options open to customer it is the customer service which would eventually become the defining criteria for the preferred retailer.

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I did learn about the operations and merchandise treatment the two crucial factors for routine.

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I enjoyed working here since as soon as I used to step out of the small back office I would transform into a routine shopper, roaming around, looking for stuff & observing other customers.

Bibliography

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www.futuregroup.in By communicating and receiving data from the employees and staffs.

Appendices REM (Retail Enterprise Management) i.

Front end software to manage the daily operations

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Mostly used at the point of sale

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Main use: to create bills, update offers, generate reports etc

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Cash Memo •

Products are entered directly from the REM

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The products will be searched according to the brand or category

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The required products will be entered along with their quantity

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Final bill with the total quantity, gross 17 | P a g e

amount, discount (savings) & net amount would be as given below

Daily Sales Report This is the daily Sales Report of the clearance outlet Store, which is generated to have the better understanding about the following: 18 | P a g e

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Total Amount

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Total Quantity Sold.

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Number of customer entry.

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Total number of bills made.

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To see the catergorywise and overall margin and sale of SKU’s.

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To see the Gross and Discount amount in each category sold.

Category wise Sales and Margin table heading

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This is the snap shot of the heading of the category wise sales and margin excel data sheet in which the compilation of daily sales report is done. The Data are confidential so not shown.

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Conclusion In these 8 weeks of the internship program, I came to know much about the retail industry and its working culture. I got a good exposure about what really the corporate life is about. It’s

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waking along with targets and mind stresses every morning. The person who can manage these target and stress are shining in those fields. The project also helped me in understanding the operation and working at the store and the warehouses. The project also helped me in compiling the data, making pivot tables and analyzing the data for better understanding of daily sales and margins.

I personally think that sales and marketing is not everyone’s cup of tea but if one set his target high and continuously strive towards that, nothing is impossible. The only thing required in our field is the right attitude or a positive attitude towards attaining one’s goal.

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