Merchandise Assortment Planning Of Various Retail Counters Ta Jalandhar

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PROJECT REPORT ON

A COMPARATIVE STUDY OF MERCHANDISE ASSORTMENT PLANNING OF VARIOUS APPAREL OUTLETS 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

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DECLARATION

I Tajinder Pal Saini here by state that this Project Report has been submitted to Lovely Professional University in partial fulfillment of the requirements of MBA (Master of Business 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 any university and others.

Date: 15 /5/2009 Place: Phagwara

Tajinder Pal Saini (2020070329)

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CERTIFICATE

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

Date: 15/5/2009

Ms.Gurdeep Kaur

Place: Phagwara

(Faculty Supervisor)

Lovely Professional University Phagwara

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ACKNOWLEDGEMENT

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

It has been a great challenge but a plenty of learning and opportunities to gain huge knowledge on the way preparing this management thesis. I would not succeed without Ms.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 You Madam!

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

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

Tajinder Pal Saini

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ABSTRACT

In today’s competitive scenario where more and more players are coming into the picture, there is a need to look into the customer or client behavior to know your client well. And also there is a need to spread their business like this in which one can choose the best for them. Till now here in India most of people prefer unbranded clothing and they buy clothing from traditional apparel stores but after entrance of big giants in this segment, today’s emerging retailing environment, people’s income level and spending power, increasing preference for fashion & new trends; hence there is a wide scope in India 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 in attracting customers. Merchandise comes in a variety of sizes, colors, makes and models. So any retailer, big or small, take many decisions regarding what to purchase and what to made the goods available to customers. This is called systematic merchandise planning. So basically merchandise decisions are related to what type of product they are going to offer and assortment planning is related to the varieties of product and goods offered by them in their outlets.

Because of high cut-throat competition, when all market players are fighting with each-other for attracting and retaining customers. But today customers are also very smart and they know the value of their money; and a lot of choices are available in the market for them. Especially in apparel industry, a lot of brands and a wide range of fashion 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 of product to customers. And researcher studied these all in preparing this thesis and

This document was created by Unregistered Version of Word to PDF Converter found that these decisions and planning are continuously adopting by every big and small retailer; because it is the demand of current time.

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INTRODUCTION

Retailing Overview In Apparel Segment and Merchandise Assortment Planning Retailing OverviewIt’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. And retailing concept is also from one of these facilities. Retailing is simply provides the end product to customer. So retailers are directly in touch with customers. Retailing in India is witnessing a huge revamping exercise. India is rated the fifth most attractive emerging retail market: a potential goldmine.

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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 drawn up by AT Kearney.

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Retail Sales in India

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Fig 1.1

This document was created by Unregistered Version of Word to PDF Converter This chart is showing three lines mainly, overall retail sales; food, beverages and tobacco segment sales and clothing sales. And here researcher’s focus is on clothing segment. So let now discuss about apparel industry. As we know apparel is one of the basic needs of any person. And now in India, either a rural person or an urban person, all prefer these easy and comfort retail formats for them. As a research conducted by KPMG/research firm; in India, in rural segment there is a 61% spending and in urban market, there is 39% spending.

Fig 1.2

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

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Fig 1.3

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

Global retail sales are estimated to cross US $ 12 trillion in 2007, reflecting the growth in the world economy, global retail sales grew strongly in the last five years (2001-06) at an average nominal growth of about 8 per cent per annum in dollar terms. This is in contrast 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 varies from about 30 per cent in rich Japan to an average of 60 per cent in poor Africa. Retail sales through modern formats have been rising faster than total retail sales; the share of 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 Indian economy. Gross domestic product (GDP) grew by an annual rate of 6.6 per cent during 1994-00 but the growth slackened to 4.7 per cent per annum during the next three years before the growth remarkably rose to 8.7 per cent per annum in the last four years. This meant a substantial rise in disposable income of Indian households since the mid-1990s. Based on the Market Information Survey of Households (MISH) of the National Council of Applied Economic Research (NCAER), the number of people in the income 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 the last decade 1995-96 to 2005-06.3 The data from the Central Statistical Organization

This document was created by Unregistered Version of Word to PDF Converter (CSO) indicate that the growth of real private final consumption expenditure, which dipped from an average of 5.7 per cent per annum during 1994-00 to 4 per cent per annum 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 growth of 13.6 per cent during 1994-00, a low growth of 4.8 per cent during 2000-03 and a smart 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 biggest players of the world are going to enter the industry soon. It is on the threshold of bringing the next big revolution after the IT sector. Although organized retail market is not as strong as of now, it is expected to grow manifolds by the year 2010. The sector contributes 10% of the GDP, and is estimated to show 20% annual growth rate by the end of the decade as against the current growth rate of 8.5%. A CRISIL report says that the Indian retail market is the most fragmented in the world and that only 2% of the entire retailing business is in the organized sector. This suggests that the potential for growth is immense. There are about 300 new malls, 1500 supermarkets and 325 departmental 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

2000-01 to

2003-04 to

1999-00

2002-03

2006-07

Real GDP

6.6

4.7

8.7

Real private final consumption 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 government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission, 1980s experienced slow change as India began to open

This document was created by Unregistered Version of Word to PDF Converter up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains. Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For example Food World, Subhiksha and Nilgiris in food and 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, with facilities like car parking targeted to provide a complete destination experience for all segments of society. Emergence of hyper and super markets trying to provide customer 3 V’s - Value, Variety and Volume. Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid.India is on the radar screen in the retail world and global retailers and at their wings seeking entry into the Indian retail market. The market is growing at a steady rate of 11-12 percent and accounts for around 10 percent of the country’s GDP. The inherent attractiveness of this segment lures retail giants and investments are likely to sky rocket with an estimate of Rs 20-25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010. Indian retail market is considered to be the second largest in the world in terms of growth potential. 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-institutional healthcare

9

8.6

8.5

8

6. Sports goods, entertainment,

2

2.4

2.6

2.7

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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 strategic significance to every retailer, especially for the multi-store retail chains of today. For decisions on these matters, a thorough plan called a merchandise assortment plan has to be adopted.

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

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

This document was created by Unregistered Version of Word to PDF Converter and now most of retail organizations focusing on this for being alive in the market. The retailer must make decisions regarding the merchandise offered depending on the sales targets 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 the amount of stock to be maintained in each category, if large stocks are maintained in a particular category, there may not be sufficient resources left for providing a deeper assortment of goods. Hence, the retailer should establish a trade-off between the type of categories or assortment and the inventories being maintained. This is called merchandise assortment planning.

An assortment plan depicts what should be carried in a specific category of merchandise. (Exhibit- C) An assortment plan for a merchandise category based on fashion will not identify particular stock keeping units, because fashions vary from year to year and sometimes, from season to season. The more fashion-oriented the merchandise category is, the more necessary it is for the merchandise planner to accommodate changes in fashion, and hence, the lower the level of detail in the assortment plans. The starting point for developing an assortment plan for a given season is the historical data for a particular merchandise category. Apart from the assortment plan for a merchandise category in the previous season, sales, inventory turnover and GMROI (Gross margin return on inventory investment) figures are used to develop an assortment plan for the current season. The merchandise planner then makes the required changes according to his expectations of what products or fashions will 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 of Fabric

Regular denim

Stone washed

Tinsel- Lyera based

Broken twill

Over dyed

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Colors

denim

denim

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. The process of developing an assortment plan can be quite complex, especially in multi-store chains like Shoppers’ Stop, Pantaloons or FoodWorld. An effective assortment plan requires equal or more effective sales, inventory turnover and GMROI forecasts, to complement the experienced judgment of the merchandise planner.

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

This document was created by Unregistered Version of Word to PDF Converter advantage over their rivals. So for this research, researcher has to go through-Past reports/information available on this topic. References books or study materials for understanding the topic in details.Available data on internet, through electronic databases.And for this topic, the areas of literature should be examined areThe 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 forIdentify critical issues in literature, Discuss how different authors works have complement one another and how they can disagree, Writing literature review develops research’s focus.

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

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

This document was created by Unregistered Version of Word to PDF Converter Hilfiger,Espirit,and many more. So a good research will be possible on this topic. And my research study is restricted to one aspect of retail management i.e. Merchandise Assortment Planning. Sudhir nagpal in his article Global apparel retailers gear up for India stated that in Coming 2008 and the $350-billion Indian retail industry will witness the entry of a slew of international apparel brands. According to industry sources, Chemistry of the US, S Oliver of Spain, Splash from the Middle East, as well as Salamander Design and H&M from Europe are some of the leading global manufacturers readying to set up shop here. Their entry will also bring domestic store design in sync with global trends. Other retailers expected to join the Indian bandwagon are Promod, Gador, Hogl and Estee Lauder. These retail majors are likely to tie up with mall developers to come in as anchor tenants. 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 of international style malls will also see new technology and comfort for shoppers, such as the ‘no-doors’ concept. Besides, new technologies to lower noise pollution during rush hours could find their way here, too. Property development consultants say Indian retail mall developers need to bring in such technologies if they wish to remain competitive. Surinder mishra in his article India third most attractive market for apparel retailers has found thatIndia has emerged the third most attractive market destination for apparel retailers, according to a new study by global management consulting firm AT Kearney. India comes after Brazil and China in the AT Kearney Retail Apparel Index, which looks at ten drivers, including apparel consumption and clothing imports/exports, to rank the top 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 Hemant Kalbag, 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 main purposes of this paper isto perform a micro- and macro-dimensional analysis, and to apply the theory of eclectic firm to understand the investment dimension in the apparel retail environment in India. A micro and micro analysis of the retail industry in India was

This document was created by Unregistered Version of Word to PDF Converter conducted. Eclectic firm theory was then applied to the analysis to understand the apparel retail environment in India. Tarun kumar in his article stated that The arrival of global retail giants on Indian shores has spurred their unassuming suppliers based in India even before their setting shop here. Vadodara-based Goradia group, which makes toothbrushes under the Jewel brand and several private labels and is among the largest suppliers toothbrushes to Unilever, Ikea among others, says it is busy chalking out fresh business strategies with the announcement of Wal-Mart's entry in Indian market. The entry of local heavy-weights like Reliance is also a booster. The Goradia group is hoping to generate 30% of its total revenues from private labels as compared to about 15% now. The group is now increasing its focus in domestic market and newly launched household product category through organised retailers. Goradia group is also set to launch premium products in India in different segments. Sujata Dutta Sachdeva in his study It's time for retail offshoring to take a leap announced that Everyone knows, how India's retail sector is poised to take off and we will be among the top five retail markets in the world in the next 10 years. But that is only one part of the big story. For making the most of the retail boom worldwide is another sunshine sector that is - the IT and ITeS. While global retail chains are chalking out their India plans, Indian IT firms are quietly providing them back office and other core support from here. Most top retail chains are either outsourcing their work to third parties in India or opening captives centres here. And it's been happening for sometime now. For example, UK-based chain Tesco, has set up a back office - Hindustan Service Centre in Bangalore - with a headcount of 2,000 people. Target, a US-based retailer has a captive centre in Bangalore and plans to expand it. Marks & Spencer, Sainsburys, Best Buy - all have outsourced their work to India.

Parag Pateria in his research paper

This document was created by Unregistered Version of Word to PDF Converter The Future of Organised Retailing in India: A Curtain Raiser The word 'retail' is extracted 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 final consumers in smaller quantities. Although retailing in its various formats has been around in India for many years, it has been confined for a long time to family owned corner shops or mom and pop shops popularly known as kirana shop. Retailing in more developed countries is big business and better organised than what it is in India. Report published 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 of organised 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 found from his study thatIndia's retail market is currently valued at over $250 billion, and reports indicate it is growing at a rate of ten percent each year. (1) This tremendous growth is encouraging even Mickey Mouse to enter India's retail market. (2) Because of recent policy changes encouragingforeign investment, Disney and many other retailers have leapt at the opportunity to enter the market. (3) However, foreign retailers are still limited in their ability to operate in India because Indian law strictly regulates foreign participation in its retail market. (4) As foreign retailers formulate their plans to expand into India, they must consider the allowable modes of operation and identify which of these options best suit their business needs. (5) This Note evaluates the various ways in which foreign retailers may operate retail stores and manufacturing facilities in India. (6) Part II of this Note introduces some of the reasons foreign retailers are so interested in India. (7) Part III discusses the legal obstacles foreign retailers face and recent developments in Indian law intended to open the country's doors to foreign businesses. (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 and manufacturing facilities in India. Kala Vijayraghavan & MV Ramsurya in their study Birlas' More likely to stitch retail plans around clothes biz The Aditya Birla group is understood to be revisiting the business strategy for its retail businesses which could result in greater long-term emphasis on apparel retailing, sources close to the development said. In a series of review meetings at the Mumbai-based conglomerate's office, the top management and the retail team are understood to have taken a relook at the design, positioning and merchandise offered by More - the supermarket format under Aditya Birla Retail, which has recently seen slow growth. The review meeting, which according to group sources is conducted every six months, was called to focus on challenges that Aditya Birla Retail

This document was created by Unregistered Version of Word to PDF Converter has been facing, especially on issues such as managing the more competitive food & grocery format, and related challenges such as supply chain, merchandising and competitive pricing in the face of high operating costs. Aditya Birla Retail currently has 550 outlets under More and a hypermarket. At the same time, the group's think-tank seems keen to increase spends and focus on apparel retail currently being undertaken by Madura Garments, a unit of Aditya Birla Nuvo, which has seen a significant jump in sales. 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.The Indian retail sector is going through a transformation and this emerging market is witnessing a significant change in its growth and investment pattern. Both existing and new players are experimenting with new retail formats. Currently two popular formats -hypermarkets and supermarkets are growing very fast. Apart from the brick -mortar formats, brick -click and click-click formats are also increasingly visible on the Indian retail landscape. Consumer dynamics in India is changing and the retailers need to take note 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 in this country. We also discuss the challenges and opportunities available to the retailers to succeed in this country. Sk Sharma et all studied the Indian economy growth for retail Indian economy has shown an impressive growth of over 6 per cent for last five years and continues to surge ahead. GDP growth rate in 2003-04 recorded a fifteen year high of 8.5% and subsequently maintained a steady growth for the next two years. Real GDP growth accelerated from 7.5 per cent during 2004-05 to 8.4 per cent during 2005-06 on the back of buoyant manufacturing and services activity supported by a recovery in the agricultural sector. The central bank forecasts similar growth of 7.5-8 percent during 2006-07. With strong economic growth consumerism is increasing in the country and India is the fourth largest economy as far as purchasing power parity is concerned, just behind USA, Japan and China. BS Goyal in his study has research of consumer trends in retail market has found that India is currently having the largest young population in the world and 54 per cent of India’s population is below 25 years of age and 80 per cent are below 45 years. As per India’s Marketing Whitebook (2006) by Businessworld, India has around 192 million households. Of these only a little over six million are ‘affluent’ – that is, with household income 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 document was created by Unregistered Version of Word to PDF Converter This is a sizable proportion which offers excellent opportunity for organized retailers to serve. AK Gupta in his study Retailing in India is currently estimated to be a USD 200 billion industry, 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 is expected to rise by 20 to 25 per cent. The report also predicts a stronger retailer growth than that of GDP in the coming five years. SD Asthana in his study Mall development is phenomenal in India. The mall mania is spreading fast and entering even the second tier cities in India. Real estate developers are jumping very fast to take this further from Metro cities to smaller cities and corporate houses like ITC and Sriram group are making steady progress to make this phenomena feasible in rural market also. There is no denying that the top notch cities like Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Pune are leading the way but the second tier cities like Ludhiana, Chandigarh, Nagapur and Surat are catching the eye of all retailers. Retail developers are in such a mood that they may over ride the requirement in a specific city. Mohan and Gupta (2007) examined the combination of factors that are important for meeting the expectations of customers. Different factor have been considered in study that range between apparel and store attributes. They explained that retailers can add more value to the garment value chain by identifying strengths and weaknesses of the store and apparel related factors and with combinations of these factor apparel retailers can target their potential customers, like if stores, which cannot offer travel conveniences can compromise by providing attractive displays. Likewise stores with constraints on indoor and window displays can provide travel and shopping conveniences, personalized attention and services, and repeated satisfaction and rewards.

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

This document was created by Unregistered Version of Word to PDF Converter clothing at discount stores, expectation is for convenient operation hours, customers feel secure in transactions, courteous employees and error-free record. This indicates strategic implications retailers targeting younger apparel customers. Gen Y customers indicated that they preferred to shop most often for apparel at specialty stores, followed by department and discount stores. Gen Y customers also expected more service from specialty stores, followed by department and discount stores.

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

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

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

This document was created by Unregistered Version of Word to PDF Converter men’s shopping satisfaction and store preferences, specifically investigating the importance (in rank order) of various store attributes to male shoppers. In study they have taken 11 shopping attributes related to apparel stores and these are: (1) price of merchandise, (2) quality of merchandise, (3) friendly personnel, (4) brands carried in the 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 of finding items. The study found that the most important attributes for participants when shopping for their own apparel were 1) price 2) quality and 3) selection of merchandise also in study it has done comparison of younger and older shopper rank order preference of shopping attribute.

Gehrt (2004) examined the influence of situational as well as consumer and retailer factors on preference for retail formats and show that situational factors have significant influence on online and catalog format selection and perceptions of attributes that are very important to that selection. It shows that situational factors affect retail attribute importance except for the price factor. Like if shoppers have ample time, the retailer personality factor is critical, shopping atmosphere, the presence of the right brands and general familiarity with the retailer are important. On the other if shoppers have less time, the merchandise factor and the transaction service factor are critical.

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

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

This document was created by Unregistered Version of Word to PDF Converter most store preference type of clothing desired in stock, outside store appearance, shopping hours, and advertising. Along with this it found relationship between customer perception of store attributes, education and age. It has taken set of attributes 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 store location 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 enhancing shopping experience, using effects of many pleasant ambient stimuli such as music and scent. They manipulated scent and music in a 3 (no music, pleasant low arousal and high arousal music) by 3 (no scent, pleasant low and high arousal scents) factorial design in a field setting and result show that when ambient scent and music are congruent with each other in terms of their arousing qualities, consumers rate the environment significantly more positive, exhibit higher levels of approach and impulse buying behaviors, and experience enhanced satisfaction than when these environmental cues were at odds with each other.

Moye (2000) examined the influence of selected environmental dimensions on store patronage using specific apparel shopping scenarios. Past retail and marketing studies have identified several consumer-oriented store attributes such as price, quality, variety, discounts, store reputation and their relationship to store patronage, but these studies ignores how the physical environment affects retail store patronage. In study various environmental dimensions have been considered like temperature, air quality, lighting, noise, scent, music, layoff, flooring, fixture, signs, style of décor, et al. The Bargain Apparel Shoppers had higher mean scores on the environmental factors than the other shopper groups. With regard to first store choice, the department store was chosen most often as first store choice because of environmental factors.

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

This document was created by Unregistered Version of Word to PDF Converter who held more favorable store specific attitudees and had a positive quality-availability perception were more likely to shop at a secondhand store and to travel longer distances to patronize that store. It has taken three hypotheses that more favorable store image, more frequently an individual will shop at a secondhand store. Secondly, more favorable an individual’s quality-availability perception, the more likely the individual will shop frequently at a secondhand store. Finally, more favorable one’s attitude toward secondhand stores, the more frequently an individual will shop at a secondhand store. It has find that consumers who frequently shop at a secondhand store are more favorably inclined toward that specific store and its merchandise quality and when there is more favorable quality-availability perception and store image they were 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 Management Thesis is to train the student in designing and implementing a research project in respect of a business problem. A Management Thesis is the culmination of training provided to the student on practical applicability of the theoretical concepts learned by them. Apart from this objective the other objective related to the project study is given below. The study was performed aiming at the following objectives: Objective of the study-

Understanding the merchandise assortment planning concept and process adopting by apparel 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 to acquire the practical knowledge about the Merchandise Assortment Planning like how

This document was created by Unregistered Version of Word to PDF Converter these retailers do this process for their survival and how they fulfill demands of customers. Need and Scope of study Need By identifying the factor crucial to target market retailers could add more value to the garment value chain by focusing on specific factors rather that following please all policy. By identifying the important factors expectation of the customer can be easily met. So it is required to explore the apparel attributes that are perceived as important and attributes that please more to males and females.

Scope Doaba region of Punjab have been considered to identify the apparel related attributes that are more important to population of Doaba region. To represent region respondents from three major cities will be considered Kapurthala, Jalandhar and Phagwara

LIMITATIONS OF THE STUDY Time constraint- The major limitation of this project is the time period for this thesis because it is not possible to look in to each and every aspect of Merchandise Assortment Planning in such a short span of time.

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

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

This document was created by Unregistered Version of Word to PDF Converter Since the results will draw on the basis of Information which will be provide by the respondents; chance of response error might possible. Disinterest of customers may generate non response while collecting data. BENEFITS To SelfKnowledge earning. Gaining practical exposure to Merchandise Assortment Planning. Gain knowledge about customer preferences.

To companiesThis report will be beneficial for companies and outlets too because from this report they get to know about their customer’s preferences. From this report they will get the knowledge about required changes in their strategies and customer base.

To customersThey 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 retailing strategies, so it is beneficial for them to make all required changes in system.

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RESEARCH METHODOLOGY

For this projesct one has to know each and every aspect of the concept thoroughly. And then for merchandise assortment planning one has to get update with the latest trends and all factors which are continuously affecting these decisions. So acquiring the data regarding 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 the objective 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 more precise investigation or to frame a working hypothesis from an operational prospective.

This document was created by Unregistered Version of Word to PDF Converter It is not used in case where definite result is desired as in our research case where only impact 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 is very highlighted in all over India and the sector growth is also very rapid. On the basis of that in Jalandhar context this research is an attempt to know the perception of Jalandhar people and the apparel store retailers.

RESEARCH METHOD After developing an appropriate research plan, it is important for the researcher to select a proper research method. For this research, the research method chosen by the researcher are secondary data and survey methods. Secondary data studies: This is concerned with the analysis of already existing data that is related to the research topic in question. Surveys: This is a research technique, which is used to gather information from a sample 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 and experience 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 the research process. Sampling is a process that uses a small number of items or a small portion of a population to draw conclusion regarding the whole population. For this research the sampling method chosen is simple random sampling and Convenient Sampling.Since in Jalandhar only few organized apparel outlets is their so the

This document was created by Unregistered Version of Word to PDF Converter unorganized retailers also being chosen for interviews and customers are chosen at random. Sample Size: Sample size is around 13 for apparel outlets to study their merchandise assortment 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,Tommy Hilfiger,Espirit,

Sampling Area: Jalandhar City. DATA COLLECTION After preparing a suitable sample, the researcher collects the data from the units in this sample. As stated above that research method which will be used in the research comprises of surveys therefore data collected will be of primary in nature and partly secondary since secondary data will also be taken.

EVALUATING AND ANALYSING THE DATA This step includes editing, coding, tabulation and processing of collected data. The Schedules 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 are classified. Then tabulation was done. Data was sorted into different categories and numbers of cases that belong to those categories were counted.

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PROCESS FLOW OF THE PROJECT

DESIGN OF QUESTIONNAIRE

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FINDINGS, PILOTING RECOMMENDATIONS BASED ON & CORRECTION OF DATA QUESTIONNAIRE CONCLUSION AFTER FEEDBACK DATA ENTRY DATA CLEANING REDESIGN THE QUESTIONNAIRE ANALYSIS QUALITY CHECK

GETTING QUESTIONNAIRE FILLED

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EMPIRICAL ANALYSIS

Growing economy, globalization, retail trends, increasing income levels, healthy life-style, technical advancement; these are some of the factors which are continuously affecting every business segments. So we can say this is a golden period for business world. But on the other side because of increasing competition, inflation, high customization; these business persons are finding some new and effective ways to overcome these problems. And in apparel segment, it is world’s biggest business industry. Clothing is one of the basic needs of a common person. So in every circumstance, 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 adopting some latest strategies i.e. Merchandise Assortment planning.

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

About retailersRetailers are very much aware about this and they are making their all strategies according to it.

This document was created by Unregistered Version of Word to PDF Converter 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, retailers choose the best product mix for their outlets. And it is not a story of only big giants, even small players and traditional shopkeepers also now adopting these strategies to attract and retain customers. Now a customer can find all those features and product which he thinks, in a single store only because of these planning. For example, in a single outlet a range of various styles 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 are also providing support to them so that they can make profits for themselves and for company too. Basically apparel industry is based on latest fashions and trends. And fashion remains for a little time of period. So it is too difficult to keep a wide number of verities in their stores for retailers. As fashion become outdated their stock of inventory will become waste. So they are very much considering merchandise assortment planning and other benefit providing by apparel companies to them. If it happened that fashion will become outdated then companies will also provide full support to these outlets and they share loss also with them. Customer’s preferences about itThe main thing which researcher found about customer’s perception about it that they said, “When we wear any branded apparel then automatically they feel a sense of satisfaction, 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 similar quality, so why not we go for a discount store. A tea-staller in front of Peter England outlet, Mr. Pappu said he also wears Peter England shirts and the store owner also provides him a high rebates for it and in this he feel more confident.

This document was created by Unregistered Version of Word to PDF Converter Mr. Deepak Bhardwaj said he prefer the goodwill/ brand name for purchasing any new apparel. As he said he prefers Peter England and John Players more than Koutons or Cotton County. Miss Anisha said when John Players launched their new segment, Miss Players, from that time she prefers Miss Players outlet for a new purchase. And according to Mr Suresh, because of Hrithik Roshan, as a brand ambassador of John Players, he also prefers John Players.

Different customers have their own demands and needs so their preferences also varied from each other. But mostly youth/college going young boys n girls of Jalandhar prefer Spykar,Kapsons and No exit Outlet for apparel purchase. While young business persons and professionals prefer John Players and Peter England for apparel purchase. And in children’s segment, a surprising result came after research that is mostly parents prefer traditional outlets for children’s apparel purchasing. Because in these outlets, they will found more varieties and apparel categories then a branded outlet and they can make here a high bargaining also. But if we see overall result, so today even so many branded outlets are here in market then also mostly people prefers traditional outlets for purchasing apparels. One thing is that also these branded clothing is available in these unbranded outlets too and on these unbranded outlets, customer found these clothing at much cheaper rate then their own brand’s outlet.(Mostly people think this)

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

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Findings & Suggestions

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.

This document was created by Unregistered Version of Word to PDF Converter 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 going youth. Data collected after surveyResearcher went to all those sample units for collecting data and found data from direct interviews and surveys from customers and retailers.

Questionnaire for Retailers-

Q.1. Tell me something unique about your outlet and brand and about your vision and mission? 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 have a good brand name also. While on other side Adidas, Reebok, Spykar, Oxemburg,Lee ,Lewis,Wrangler have a huge 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 like Sportking, 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 competitive advantage 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 target markets and their all efforts are focused on capture as high market share as possible.

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Formals

John Players, Peter England

Casuals

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

All family apparel market

Sportking, Monte Carlo, Priknit, Cotton County, Koutons,Lee solly,

Children’s market

Gini & Jony, Lilliput

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

Q.3. Before taking decisions about your product varieties and range (Merchandise Assortment Planning), what factors you considered? Ans.- For selecting what and how much merchandise they have to purchase and they have to keep in their organization, they considers mainlyFinancial 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’s management also helps these store owners in strategic planning. As all brands have their own vision and mission so mainly these apparel store owners also adopting same strategies for them. But as all customers have their own specialties so these retailers also have to change their strategies according to their own localities.

This document was created by Unregistered Version of Word to PDF Converter As these retailers are getting their own sales plan for every year and for every month from companies. Then they make some modifications in the plan according to the local circumstances.

Q.5. Is it important to make a prior planning or strategy for merchandise decisions? And if yes then why? Ans.- Without any planning or strategy, we can do any work but for be assure about the work’s success we should make some planning or strategies. Same is applicable in business context also. And merchandise decision is not a small aspect for any retail organization. Merchandise is the most important part for apparel industry. It shows the image 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 market share, they have to make a prior planning. Q.6. Are you facing any kind of problems or difficulties for these decisions and planning because I think in a city like Jalandhar, it is not possible to keep a deep variety and we can’t keep a limited range of variety also because of quickly changing customer’s preferences and competition? Ans.- Yes this thing is also very important for any apparel retailer. Sometimes because of brand’s image and influencing customers they have to keep that merchandise also which have no demand in market but often they prefer only that merchandise which has demand in local market. Q.7. Are all decisions related with your outlet’s merchandise are independently taking by you or is there any interference or support by company’s side also? Ans.- As in above questions’ answers given, local retailer got support from company side too for their strategies and planning and they make some changes according to the local 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 from retailers. 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’t prefer these types of clothing because of its high prices. And others retailers as Cotton

This document was created by Unregistered Version of Word to PDF Converter County, Priknit, Koutons have low range products also and people of Jalandhar like these products much so they are enjoying profits more than high price showrooms

Questionnaire for CustomersQ.1. From where you prefer to buy apparelsAny 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.

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Q.2. What factors you are considering before taking any apparel purchasing decision, mostPrice, Variety Quality Looks Fashion/trend Ans.- As research is being conducted in Jalandhar so, here most people prefers less price items means price factor is most important thing for them. And they can compromise with quality but they want fashionable and good looks items.

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Q.3. Are you satisfied with the services and varieties of products provided by these apparel outlets? Highly Satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Ans.- Important thing is that they are getting large categories with low prices because of high competition. So customers are satisfied with all these retailing scenario because it is in favor of them

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.

Q.4. Which apparel outlet you prefer most for buying clothing? (To college/school going youths.) Spykar Tommy Hilfiger Adidas Reebok Sportking Monte Carlo

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

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Peter England Koutons Cotton County Monte Carlo Or any other organized or unorganized outlet Ans.-

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Lilliput

Gini & Jony Or any other organized or unorganized outlet

Ans.

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Q.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. Ans.-

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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 in this 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.-

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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) but can switch if found any other good option, Any brand no matter; just it should satisfy their needs. Ans.-

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Q.10. If you have to give marks to your favorite brand from out of 10, then how much will you give? Ans. MARKS

NUMBER OF CONSUMERS GIVEN MARKS IN THIS CATEGORY

10

19

9

21

8

12

7

16

6

11

5

7

4

6

3

5

2

3

1

0

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

Expected N

60 24

20.0 20.0

40.0 4.0

Koutons

8

20.0

-12.0

cotton county

6

20.0

-14.0

2 100

20.0

-18.0

john players peter England

monte carlo Total

Residual

Test Statistics

Which Store do you prefer for buying clothes(young professionals)? Chi-Square( a) df

114.000

4 .000 a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0. Asymp. Sig.

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

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Expected N

Residual

spykar adidas

30 17

11.1 11.1

18.9 5.9

reebok

10

11.1

-1.1

tommy hilfiger

2

11.1

-9.1

espirit

2

11.1

-9.1

sportking

21

11.1

9.9

koutons

5

11.1

-6.1

cotton county

5

11.1

-6.1

8 100

11.1

-3.1

9 Total

Test Statistics

Chi-Square(a ,b) df

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

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

114.000

66.680

4 8 .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. Asymp. Sig.

Calculated value is more than tabulated value so null hypothesis is rejected and alternate hypothesis is selected. So all stores don’t appeal equally to the consumers.Spykar is preferred brand among the College and School going youth.

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Conclusion

CONCLUSIO N:

From all findings collected by researcher, he reached to the conclusion that in this quick-moving environment, now retailers also have realized that they need to work strategically for their survival. That’s why now they are taking merchandise assortment decisions seriously and spending their time and efforts for it.

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

This document was created by Unregistered Version of Word to PDF Converter That’s why in a city like Jalandhar also, retailers are very much aware about these things and they are doing their business according to it. And here also customer can get all those qualities and varieties which before some years they were only thinking in dreams or watching in TVs, Movies. Now all branded items available here only because of emerging market situations and customer-friendly market. And if we talk about favorite brand of Jalandhar people then on the base of research findings, we found thatSpykar 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 more and more customer market towards them. And this high retailing scenario affects traditional unorganized outlets business too and now they are also giving a high competition to these organized retailers. So for keep their presence with a great margin of profits also, all organized and unorganized retailers are facing a high cut-throat competition with each other. Here same famous Darwin’s Law (on Evaluation Theory) is applicable on retailers also,”the most powerful and quick updating creature, according to the circumstances will remain alive and others who couldn’t adopt themselves according to the changing environment, will be finished.”

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

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Appendices

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APPENDICES

Appendix-1

Questionnaire for Retailers- As this project study is totally based on detailed research on topic Merchandise Assortment Planning so here researcher has used open ended and free response questions in questionnaire, those aresTell me something unique about your outlet and brand and about your vision and mission? Which is your target market and what you doing to capture it? Before taking decisions about your product varieties and range (Merchandise Assortment 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 if yes then why? Are you facing any kind of problems or difficulties for these decisions and planning because I think in a city like Jalandhar, it is not possible to keep a deep variety and we can’t keep a limited range of variety also because of quickly changing customer’s preferences and competition? Are all decisions related with your outlet’s merchandise are independently taking by you or is there any interference or support by company’s side also? Do you think your plans are going well according to your expectations?

This document was created by Unregistered Version of Word to PDF Converter So at last if you wanna anything to change or wanna something should be like that way which you want then you can say me?

Appendix-2

Questionnaire for Customers-

1)From where you prefer to buy apparelsAny traditional store (unbranded) or A branded retail outlet.

2)What factors you are considering before taking any apparel purchasing decision, mostPrice, Variety Quality Looks Fashion/trend

3)Are you satisfied with the services and varieties of products provided by these apparel outlets? Highly Satisfied

This document was created by Unregistered Version of Word to PDF Converter Satisfied Neutral Dissatisfied Highly dissatisfied

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

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

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Peter England

Koutons

Cotton County Monte Carlo Or any other organized or unorganized outlet

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

Lilliput

Gini & Jony Or any other organized or unorganized outlet

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.

This document was created by Unregistered Version of Word to PDF Converter 8)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 in this 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.

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) but can 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 will you give? Ans. - ……………………………………………

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

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Appendix-3

Assortment Plan For Boys’ Jeans Style

Straight-leg

Straight-leg

Straight-legT Loose-fit ight bottom

Loose-fit

Retail price (in Rs.)

999

1399

1799

1299

1599

Type of Fabric

Regular denim

Stone washed denim

Tinsel- Lyera based denim

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.

This document was created by Unregistered Version of Word to PDF Converter Appendix- 4 Ladies Wear Apron

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

Bathrobe

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

Blouses

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

Bra

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

Panties

Apparel item for women worn under the outer garment covering torso below the waist. May be laced or without lace. With elasticated waistband.

Camisole

This is a short length blouse with straight top and broad shoulder straps.

Cape

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

Cardigan

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

Corset

One piece garment which has a foundation with firm support achieved by boning. Sometimes has an inner belt which helps to flatten abdomen & to shape the figure.

It is a main item of apparel worn by women & girls. It may be made in Dresses Knitted one or two pieces & joined at the waistline may be front or without & Woven front opening. Garters

Basically elastic straps to hold the hose. These straps connect at waist line to an elastic band around waist.

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Jacket/Coat

Designed to be worn over other clothing generally hip length. Mostly the coats are with set- in sleeves & the classic coats are generally fully lined & front open.

Knitted/ Woven A set of garments other than suits made up of same fabric. This set Ensemble covers upper & lower part of body. Leotards

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

Night Dress

Made from light weight fabric & worn while sleeping. Generally it is decorated and may have pleats or gathers with small / delicate print motifs.

Overall

Pants with a bib top & suspender straps over the shoulder which close at the back.

Parka

Introduced during the 1930's for winter sports, this garment is a pull-on jacket with an attached hood & may have distinctive style features. .

Petticoat

It 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.

Raincoat

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

Romper

One piece sport suit or jump suit with shirt & shorts or bloomer joined by waistline seam. May have elasticized waist.

Shirts

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

Shirts With Zipper

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

Shorts

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

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Skirts

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

Slips

Undergarments worn by women starting from bust & generally held in place by shoulder straps. Length can vary according to the length of the dress.

Swim-Suit

As the name suggests it is an outfit designed for swimming or sun bathing, two pieces or one piece. This outfit reveals more body as top is similar to brassier & the other piece similar to panties.

T-Shirt

Knitted, pullover sport apparel made in any colour, frequently screen printed. May be crew neck or polo neck & with ribbed collor & cuffs.

Trousers

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

Waistcoat

An item of apparel of waist length worn over shirt or under a suit jacket usually made of cotton / silk with or without embroidery with back part in satin fabric.

Wind Cheater

Generally light weight nylon jacket, zipped front with close fitting elastic waistband & cuffs or drawstring waist often with attached hood

Appendix-5

Men's Wear Anorak

Hip length jacket with drawstring hem & waist with zip front. Often quilted or fur lined, designed for cold weather.

Bathrobe

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

Blouson

Jacket with a low waist line & usually shorter than hip length and gathered into flat waistband or pulled by drawstring.

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Boxer Shorts

Shorts with elasticated waistbands similar to those worn by boxers & often printed in interesting motifs made up of cotton or synthetic material.

Carcoat

Coats, generally of hip length with full front opening. May be single or double breasted with long sleeves. These are utility coats comfortable for driving.

Cardigan

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

Night Gown / Styled for sleeping time and worn over night suit. It is generally made of Dressing Gown silk or cotton. With string fastening at the waist. Night Suit

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

Overcoat

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

Pullover

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

Shirts

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

Shorts

Pants shorter than knee length mainly worn by adults & children as sportswear and casual wear.

Skisuit

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

T-Shirt

Knitted, pullover sport apparel made in any colour, frequently screen printed. May be crew neck or polo neck & with ribbed collar & cuffs.

Track Suit

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

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

Under Pants

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

Waistcoat

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

Wind Cheater

Generally light weight nylon jacket. Zipped front with close fitting elastic waistband & cuffs or drawstring waist, often with attached hood.

Workwear

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

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REFERENCES

REFERENCES

List of books and articlesRetail 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

This document was created by Unregistered Version of Word to PDF Converter 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 Apparel Retailers”, ANZMAC conference, http://smib.vuw.ac.nz:8081/WWW/ANZMAC2005/cd-site/pdfs/4-Retailing/4-Algie.pdf [viewed on 05/03/09]

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

Gerth, K.C. (2004), “Situational, consumer, and retailer factors affecting Internet, catalog, and store 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-store evaluations 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; An examination 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 on apparel store preference”, Journal of Fashion Marketing and Management, Vol. 7, pp371-385

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Scarpi, D. (2006), “Fashion stores between fun and usefulness”, Journal of Fashion Marketing and 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”, Asia pacific 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 with apparel 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 articleswww.google.com www.wikipedia.com www.johnplayers.com www.koutonsindia.org www.cottoncounty,com

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

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GLOSSARY

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GLOSSARY

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

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

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

Analog Model- It is used to estimate the potential sales of a new store on the basis of the revenues of existing stores in identical areas, the competition at a prospective location, the expected market share of the new store at the proposed location, and the size 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 moment of time. The balance sheet consists of three components Assets, Liabilities and Owner’s equity (Net Worth). The balance sheet is based on a simple concept, i.e., in order to acquire assets, a firm (retailer) must pay for them with either debt (liabilities) or with the owner’s capital (shareholders’ equity).

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

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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 to offer their customers a rewarding shopping experience. Customization- The production of individually customized merchandise at the cost of a mass produced product. Destination Store- Store that has larger trading area than a competitor with a less unique appeal. It offers a better product assortment, have heavy promotions, and a stronger image.

Everyday low pricing (EDLP)- A version of customary pricing, whereby a retailer strives to 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 given form of business under as established name and according to a given pattern of business.

GMROI- Gross Margin Rate on Investment.

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

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

This document was created by Unregistered Version of Word to PDF Converter Market Positioning- The kind of image the retailer wants to establish among its target group 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 retail offering because they have similar needs and go through similar buying processes.

Merchandise Controlling- A process for evaluating revenues, profits, turnover, shortage of inventory, seasonal fluctuations and costs for each product in the merchandise category 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 from the 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 sells limited 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 by the customers.

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

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