MERCHANDISING STRATEGY OF TALISMAN LTD GARMENTS

Internship Report on Merchandising Strategy of Talisman Ltd Garments

Prepared for: Md. Tapan Mahmud Lecturer Faculty of Business Studies Bangladesh University of Professionals

Prepared by: Md. Manik Miah manik_manikgonj@yahoo.com ID: M-1112031 MBA -12 Department of Marketing Bangladesh University of Professionals

Bangladesh University of Professionals

Mirpur Cantonment Dhaka- 1216 January 10, 2013
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Declaration of originality

I am Md. Manik Miah student of Master of Business Administration (MBA), 12th batch ID: M-1112031, declare that this Internship report on Merchandising Strategy of Talisman Ltd Garments is completely of my own work. References are provided, as it is free of plagiarism.

Md. Manik Miah ID: M-1112031 MBA 12th Batch Bangladesh University of Professionals

Supervisor Certificate

This is to certify that the Internship on Merchandising Strategy of Talisman Ltd Garments has submitted for the award of Master of Business Administration (MBA) with major in Marketing from Bangladesh University of Professionals carried out by Md. Manik Miah, ID: M-1112031, MBA 12th batch under my supervision.

This report is free from plagiarism. He is permitted to submit the Project and Thesis report.

........................................................ Md. Tapan Mahmud Lecturer Faculty of Business Studies Bangladesh University of Professionals

Letter of Transmittal

January 10, 2013 Md. Tapan Mahmud Lecturer Faculty of Business Studies Bangladesh University of Professionals Dear Sir,

Subject: Submission of internship report on Merchandising Strategy of Talisman Ltd Garments.

I am pleased to submit my internship report on Merchandising Strategy of Talisman Ltd Garments. This internship report is a part to complete my MBA program.

I have prepared this internship report under the instruction of you. Though it was a tough job but its a great pleasure to perform the task and it enriches my knowledge. I have given my sincere effort to complete the internship report. Finally I am submitting the assignment and will be grateful if you kindly accept it.

Sincerely Yours

Md. Manik Miah ID: M-1112031 MBA 12th batch Department of Marketing Bangladesh University of Professionals
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Acknowledgement

The obligations incurred in preparing this dissertation paper are far too many to allow adequate acknowledgements to be made in a brief note. My sincere gratitude goes to Lecturer Md. Tapan Mahmud, Faculty of Business Studies, Bangladesh University of Professionals, my supervisor, for everything he has made for me starting from introducing such a bit complex issue on Merchandising Strategy of Talisman Ltd to offering suggestions, guidance and constructive criticism and inspiration for the accomplishment of this study. My cordial thanks go to Senior Merchandiser Golam Mostaque Ahmed, HR and Compliance Head Arif Zaman, Deputy General Manager of HR Mohammad Moniruzzaman, Store officer Harun Ur Rashid, Cutting Manager Chaminda. They help me thoroughly in the study area in collecting data and information, introduced different department officers, providing other information which is very much important for me.

I would like to extend my gratitude to Major Md Rafiqul Islam, our program coordinator, who arranged this internship.

Finally, I acknowledge the support of my family for their practical assistance encouragement and financial support without which my internship report could not be completed.

Executive Summary

Garments sector is the biggest and fastest growing sector in Bangladesh. It is also the highest foreign currency earning sector in Bangladesh. Among this sector, Talisman Ltd is growing very rapidly due to smaller investment requirement, greater backward linkage facility and higher profit than woven garments. The report will mainly focus on the appraisal of Merchandising department at Talisman Ltd Dhaka. The proposed study will cover the appraisal, practice, procedures and techniques followed by the merchandising department of Talisman Ltd. It is also the way products are chosen and presented to shoppers through display, pricing, advertising, and education. Talisman Ltd is a garments sector whose main aim is to earn profit through exchange of money and credit instruments by providing satisfactory services to the customers. It is a service oriented as well as profit oriented organization. To perform those two functions simultaneously. At first it has highlighted the general introduction about the Talisman Ltd. Here fourteen departmental activities are briefly described of Talisman Ltd. Secondly it has discussed about the merchandising strategy of Talisman Ltd. How do Talisman Ltd governs their merchandising activities i.e. operation procedure of merchandising. Merchandising of Talisman Ltd performs their work in some chronological processes. Sample is done for merchandisers first actions to attract the buyer for buying their garments. They begin their activities through sequence of sample. It is beginning through pattern sample and ending through shipping sample. And they display different types of board like as Swatch board and Trims board. They also communicate continuously with different buyers. I got some findings about merchandising department from my questionnaire survey. The overall satisfactory level of merchandising department is 55% that means average of all my respondents.

Table of Contents
Page no. Declaration of originality ..................................................................................... Supervisor Certificate Letter of Transmittal Acknowledgement Executive Summary Chapter-01: 1.0: Introduction .......................................................................................... 1-2 .................................................................................... 3 ................................................................................. 3 .................................................................................... 4 4-5 i

........................................................................................... ii .......................................................................................... iii ........................................................................................... ............................................................................................. iv v

1.1: Purpose of the study 1.2: Objectives of the Study 1.3: Scope of this study

1.4: Methodology of the study .................................................................... 1.5: Activity Schedule 1.6: Limitation of the study Chapter-02:

.................................................................. 5 ........................................................................... 6

2.1: Background Talisman Ltd ............................................................................ 7 2.2: Present situation of Talisman Ltd .................................................................. 7 2.3: Mission and Vision of Talisman Ltd ........................................................... 8

2.4: Services package covers ............................................................................. 8 2.5: Management hierarchy of Talisman Ltd ........................................................ 9 2.6: Board of Directors ........................................................................................ 10 2.7: Factory Capacity and Locations .................................................................. 11 2.8: Department of Talisman Ltd ........................................................... 2.8.1: Store department ................................................................................. 2.8.2: Cutting department .............................................................................. 12-18 12 12

2.8.3: Fabric inspection department ................................................................... 13

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vi 2.8.4: Sample department ........................................................................... 2.8.5: Production department ........................................................................ 2.8.6: Washing department.......................................................................... 2.8.7: Finishing department.......................................................................... 2.8.8: Human resources department (HRD) ............................... 2.8.9: Logistic ...................................................................................................... 14-16 16 17 17 17 18

1.8.10: Accounts and finance ................................................................................. 18 2.8.11: Marketing and customer service ................................................................ 2.8.12: Quality control department ...................................................................... 2.8.13: Commercial department ........................................................................... 2.8.14: Merchandising department ...................................................................... Chapter-03: 3.0: Literature Review ..................................................................................... Chapter-04: 4.0: Findings and Analysis ...................................................................... 22-36 19-21 18 18 18 18

4.1: Merchandising Processes of Talisman Ltd ................................................. 22 4.1.1: Sequence of Sampling ....................................................................... 22-23 4.1.2: Swatch 4.1.3: Trims ............................................................................................ ............................................................................................... ............................................. 23 24 24-25 26-35 36 37 38 39

4.1.4: Others activities of merchandisers Questionnaire findings

..............................................................................

4.2: Synopsis of the Findings ................................................................................................ 5.0: Recommendation ................................................................................. 6.0: Conclusion Bibliography Appendix

.................................................................................................. .................................................................................................. .........................................................................................

A01 A09
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List of the tables

Page no. Table-1: Buyer inspecting garments chart .......................................... A-04

List of figure
Page no. Figure-1: Process of Transaction of Letter of Credit (LC) .............................. Figure-2: Hanger band Figure-3: Hand cutter machine A-05

..................................................................... A-06 ..................................................................... A-06

Figure-4: Digital auto cutter machine ................................................................. A-07 Figure-5: Cutter machine Figure-6: Relax Machine Figure-7: Preparing Marker Figure-8: Pattern Figure-09: Sewing Floor ................................................................... A-07 ................................................................. A-08 ................................................................. A-18 .................................................................. A-09 .................................................................. A-09

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Chapter - 01

1.0: Introduction:
Garments sector is the biggest and fastest growing sector in Bangladesh. It is also the highest foreign currency earning sector in Bangladesh. Among this sector, Talisman Ltd is growing very rapidly due to smaller investment requirement, greater backward linkage facility and higher profit than woven garments. In Bangladesh, the future of garment industries is brighter in the era of globalization. Ultramodern technology are being used in the woven and knit garment industries in the outside world other than Bangladesh. To survive in the free market of the world, we have to use world standard latest technology in our ready made garment sector. The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the economy within a short period of time. The industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the empowerment of women. The export-quota system and the availability of cheap labor are the two main reasons behind the success of the industry. In the 1980s, the RMG industry of Bangladesh was concentrated mainly in manufacturing and exporting woven products. Since the early 1990s, the knit section of the industry has started to expand. Shirts, T-shirts, trousers, sweaters and jackets are the main products manufactured and exported by the industry. Bangladesh exports its RMG products mainly to the United States of America and the European Union. These two destinations account for more than a 90 per cent share of the countrys total earnings from garment exports. The country has achieved some product diversification in both the United States and the European Union. Recently, the country has achieved some level of product upgrading in the European Union, but not to a significant extent in the United States. Bangladesh is less competitive compared with China or India in the United States and it is somewhat competitive in the European Union.

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The phase-out of the export-quota system from the beginning of 2005 has raised the competitiveness issue of the Bangladesh RMG industry as a top priority topic. The most important task for the industry is to reduce the lead time of garment manufacturing. The improvement of deep-level competitiveness through a reduction in total production and distribution time will improve surface-level competitiveness by reducing lead time. Such a strategy is important for long-term stable development of the industry, but its implementation will take time. In contrast, the establishment of a central or common bonded warehouse will improve surface-level competitiveness by reducing lead time, but deep-level competitiveness will not be improved and long-term industry development will be delayed. Therefore, granting permission to establish in the private sector such warehouses with special incentives, such as the duty-free import of raw materials usable in the export-oriented garment industry for reducing the lead time in garment manufacturing is a critical issue for Bangladesh. The report will mainly focus on the appraisal of Merchandising department at Talisman Ltd DEPZ. The proposed study will cover the appraisal, practice, procedures and techniques followed by the merchandising department in the preparation of order to shipment in Talisman Ltd. Bangladesh is an under developing country. The development and progress of the country largely depends on Export performance. In case of Bangladesh, among the Export Sectors, the ready-made garments are the main earning source of foreign currency. In the garment and Textile industry, merchandisers have been playing a vital role for the execution of export orders. There are large numbers of merchandising personnel who are working in the garments sector.

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1.1: Purpose of the study:

Garments sector is a very curtail part of a country. It plays a very much important role in the economy and always tries to make a sign on the economy. This institution is responsible for the financial stability of a country. Due to globalization of the market, all the industries have to face the competition. And the present developing economy of Bangladesh demands immediate development of garments sector which can make a good step to build up a strong economic infrastructure. In this view the organization have to drive their operation in such way which can make a contribution on the economy. And make a contribution into the economy: organization needs efficient personnel with modern knowledge. This report has been prepared in the light of this view to gather practical knowledge and prepared under the guidance and supervision of the teacher.

1.2: Objectives of the Study:

There are mainly two objectives such as broad objective and specific objectives. Broad objective: The Broad objective of the report is Scrutinize the Merchandising Department of Talisman Ltd garments. Specific Objectives: The specific objectives are To define and evaluate the performance of Merchandising Department. To identify the problems of the Merchandising department. To observe the effectiveness of Merchandising Department. To know the operational procedures of Talisman Ltd as a Buying House

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1.3: Scope of this study:

As a student of Marketing, as a potential marketing executive, it is very much necessary for me to know about the national and international marketing. I have been assigned in Talisman Ltd garments. I have worked in factory and head office. I covered the way to get myself familiarized with the official and factory environment in a garments industry for the first time. Merchandising department is the main key department in any garments industry. As well as merchandising department of Talisman Ltd play a major role in the run of their operations.

1.4: Methodology of the study:

This is a descriptive type of research that has undertaken insights and understanding about overall operation of Talisman Ltd in Bangladesh. This report is prepared on the basis of primary and secondary sources. The relevant information was collected through direct interview of the personnel engaged in various department of Talisman Ltd. For primary data collection, I selected 30 respondents who are designation of manager, officer and assistant officer of different department in Talisman Ltd. The secondary information was collected from different past files, which was collected from personal visit of the company files.

1.4.1: Sources of data collection:

In order to make the report more meaningful, two sources of data have been collected. 1.4.1.1: Primary data source: Face to face conversation with the respective officers and staffs of this garment. Practical work experience from different department of the Organization. Relevant files and documents as provided by the concerned officers.

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1.4.1.2: Secondary data source: Various books, articles and manuals etc. Different web sites.

1.5: Activity Schedule:

The working schedule of my internship is given from Mr. Arif Zaman who is advisor (HR and Compliance) of Talisman Ltd. He gave me permission going to merchandising department at any time in internship period for research purpose. Working Place Duration Weeks/ Days

Store Department Cutting Department Fabric Inspection Department Sample and Pattern Department

4 th November 10th November 11 th November 17th November 18 th November 24th November 25 th November 1 st December 2nd December 8th December 9th December 15 th December 17 th December 23 rd December 24 th December 30 th December

1 Week 1 Week 1 Week 1 Week

Production Department Quality Department Finishing Department Washing Department (Washing process and Lab works) Merchandising

1 Week 1 Week 1 Week 1 Week

31 st December 12 th January Total

13 Days 8 Weeks and 13 Days

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1.6: Limitation of the study: The main limitations of the study are as follows
In garments factory most of the employee doesnt have any educational background they do their job only with experiences. The merchandisers of the company are always busy, so they could not provide potential information timely. Sufficient records, facts and figures are not available. These constraints narrowed the scope of the real analysis.

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Chapter - 02

2.1: Background Talisman Ltd:

Talisman Ltd is a part of FCI Group, UK-based Company that was incorporated in the Dhaka Export Processing Zone in Bangladesh in 2010. The Group consists of four companies: FCI (BD) Ltd, Talisman Ltd, Alliance Stitches Ltd and FCI Clothing Ltd. They are producing high quality ready-to-wear garments at competitive prices. For instance, they were the first fully Nike compliant factory in Bangladesh and the first to produce Nike football jerseys. They manufacture a wide range of soft-tailored and structured formal outerwear for many of the world's top brands, including MandS, Zara, Nike and Alexon.

2.2: Present situation of Talisman Ltd:

They are renowned for a vibrant and dynamic management team helped by a committed and motivated workforce of around 1500 employees. Their key strengths lie in our constant monitoring of industry standards, technical know-how and technology, and stringent quality control. They operate within the international retail ethics policy. All our factories are fully compliant on manufacturing standards, offering a clean, safe operator environment. They equip them with modern machines and manufacturing systems, including the latest design and CAD technology.

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2.3: Mission and Vision of Talisman Ltd:

Mission: Talisman Ltd aims to continue building long-term and sustainable partnerships with their customers. They are achieving this in several ways, above and beyond providing exceptional products. For instance, their customer service is second to none. They have regional sales teams in the UK and in Bangladesh and dedicated account managers who provide an excellent and professional service. As a well-run and well-managed organization, they can offer versatility and the ability to meet tight deadlines under stringent compliance requirements. Vision: They want to be seen as an innovative leader within their industry and are proactive in promoting business practices at the cutting edge of change. Their innovative services in product development, fabric sourcing and technical support help leading retailers deliver their next product range with ease, confidence and quality assurance. Their next ambition is to become a world-class manufacturer in supplying first-class global brands with sports and performance wear and versatile woven products. To do so, they are currently building a new, state of the art factory to expand their production. This exciting development will encompass lean manufacturing and enable us to produce one million garments every month - all at the high standards that the Group is known for.

2.4: Services package covers:

Product development Fabric sourcing Technical support

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2.5: Management hierarchy of Talisman Ltd:

Chairman

ViceChairman

Director

ChiefOperatingOfficer

GeneralManger

Asst.GeneralManager

Manager

SeniorExecutive

Executive

Officer

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2.6: Board of Directors:

Group Chairman Vice Chairman Director Director Director M. A. Matin MBE Kaiser Rahman Maher Matin Juned Ahmed Imran Ahmed M. A. Matin MBE

Group Chairman

Email: matin@fcibd.com Maher Matin

Director

Email: maher@fciclothing.co.uk Cell: +8801726202081 / +447894491160 Md. Abdul Hadee

Chief Operating Officer

Email: hadee@fcibd.com Cell: +8801713436017 Anila Kularatne

Director (Sales and Marketing)

Email: anila@fcibd.com Cell: +8801711595889 Rufus Malai

General Manager (Merchandising) Email: rufus@fcibd.com Cell: +8801730703687

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2.7: Factory Capacity and Locations: They supply to the exacting needs of their
international clients through their factories located in the Dhaka Export Processing Zone (DEPZ). Total Production Capacity: Blouse Ladies or Mens Casual Jackets Ladies Dress Pants Ladies Casual Trouser Mens Casual Trouser Skirt Their Customers: It has a wide range of renowned and successful clients: the following are just a few of our many customers. 1,100,000 units 550,000 units 1,200,000 units 1,000,000 units 1,000,000 units 1,400,000 units

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2.8: Department of Talisman Ltd:

Name of the department of Talisman Ltd are as follows:

2.8.1: Store department: This department is engaged how they collect the different
types of fabrics and accessories materials. In talisman most of fabrics are collected from Taiwan. And different types of accessories are collected from local and foreign market. Most of accessories are collected from local market. They receive fabrics in some procedures thorough unloading area zone. First they cooperate with suppliers through email. When the truck comes at Talisman garments, store officer see tag number of truck that is examined secret number. If it is correct, the store officer permits to open the lock. At that time, different angels pictures are captured. Then these fabrics are kept at their color basis.

2.8.2: Cutting department: It receives the order for cutting a garment style from the
production manager. Cutting order is and authorization by the production manager to cut a given amount of styles from the spreads. It comes in form of a package file that carries the following details. Sample average, weight of garment (basic fabric consumption only) and other trims averages. Measurement sheet. Purchase order Fabric requisition sheet CAD mini marker Marker planning length of lay etc. Size ration and colors in which the patterns are to be cut.

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2.8.3: Fabric inspection department:

In Talisman Ltd garments, four point grading system is followed in the fabric inspection department. All fabrics are inspected under the 4 point inspection system. Penalty points are assigned based on the standard fault size for every type of fault and colored stickers are then put for the identification of serious defects in the subsequent process. Fault description under the 4 point inspection system. 10% inspection of total fabric receiver (color wise). Example: Total fabric ( 300 Yds received, 5 colors per colours 300 yds.) Then Talisman check 300 10% = 30 Yds/ Mtr per colour Point allowed for defects: 1 inch to 3 inch = 1 point 3 inch to 6 inch = 2 poin 6 inch to 9 inch =3 point 9 over/ any hole = 4 point Talisman can find out how to calculate defect point for 100 square Yds/ Mtrs. Total defect Actual Roll Length Maximum points allowed: 0 to 20 points = A Grade 20 to 30 points = B Grade 30 to 40 points = Second grade 40 to above are rejected 0 to 26 points = A grade ( only for Zara) 26 to above are rejected ( only for Zara)
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100 =?

Actual Roll Length

2.8.4: Sample department:

In any export house, the sampling department is one of the most important departments and it plays a vital in the uplifting of a unit. Sampling departments directly coordinates with the merchandising and production department. Sampling is done to see how the product will look like when produced in bulk and to check whether there are any discrepancies in the pattern are made according to the buyers specification. Types of Samples:

I. Proto/Development sample: Proto sample is the abbreviation of designers idea or

it is the reflection of the first Techpack received from buyer. Only one garment is stitched and it is sent to the buyer for the design approval. Fabric and/or trims instructions for the garment may or may not be followed. The garment is produced in the base size as asked by the merchandiser. Sometimes sketches are given according to the buyers requirement. Samples are made as per the sketch and sent to the buyer through merchandiser. The comments and the second Techpack is sent back by the buyer if there is any change in the design.

II. Fit sample: Comments from the merchandiser are received regarding the shape, size
and fullness. Fit sample is based on the measurement list. Only base size given by the buyer is made and fit is checked on mannequins. This sample is done on the actual fabric. The main factors that are considered are: a. Perfect style b. Quality c. Measurement

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III. Second fit Sample: Similar to the first fit sample, new fit sample of the basic size
is made with few changes according to the comments and new techpack sent back by the buyer. Again, third or may be fourth fit sample can be made as required. If the sample is approved, the buyer confirms the order to merchandiser and the specifications of the fabric and trims along with the techpack are sent back to the merchant. If the fabrics and trims supplier is not nominated by the buyer, the merchant sends one or two fabric swatches and lab dip for approval. Finally, the approval of the fabric and trims is decided by the mutual understanding between the buyer and merchandiser.

IV. Buyer size set: In this stage of sampling, actual fabric is used to stitch the garment.
If the fit sample is approved, buyer size set is produced in all colors and all sizes e.g. S, M, L, XL, 2XL. Two samples of each size are made. One set is sent to the buyer and one set remains at Manufacturer in standard case. Original trims and accessories are used. If not approved then again size set is made.

V. PP sample (Pre- Production Sample): This sample is known as the Bible of

production in the garment industry. It is done for the base size of any color but the actual fabric is used. If this sample is approved, buyer Q.A will wait for the Internal Size-Set Sample i.e. Pilot run sample.

VI. Internal Size Set/Pilot run: Two pieces of jumped size to be taken with each
colour are offered to the buyers qis.

VII. GPT (Garment Performance Test) sample: Two or three garments are sent
for the GPT test if asked by the buyer.

VIII. Gold Seal Sample: Gold Seal sample is sent back by the buyer after the approval
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of size set sample. Seal is attached on this sample and it is maintained in the production department and finishing department for the requirements of the quality parameters. Once the sealer sample is received industry is not allowed to make any changes in the garment and this sample should only be followed as the standard for production.

IX. TOP sample: The buyer Q.A. picks up one size or all set of sizes from the first bulk
production. It is considered to be the perfect sample with respect to all sizes and all colors. In the base size the sample produced should be double. For example * If not approved, then again TOP sample is produced. * If approved, then bulk production of the garment starts.

X. Shipment Sample: Before the shipment, the buyer Q.A. picks up a carton randomly
and checks for the quality. Shipment can only happen after of the approval over shipment sample.

2.8.5: Production department:

Before

starting

the

proper

production

the

production floor does a process of batch setting for the floor which is training the operators for the new style that has to be produced bulk; this teaching session will go on for about 2-4 days. Once the cut parts is received from the cutting and sorting section then the parts are prepared and assembled according to the line that is planned. After the assembling of parts is done then there will be a line checking, where the shade matching and the measurements are checked and sent. During the process of garment making there exist two types of checking they are In process checking. End line checking

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2.8.6: Washing department:

Once the garment has been finished with all the operators then they are sent to the washing department for the washing or finishing. And garments are checked according to the buyers specifications. Hence it plays a vital role in the final feel and texture of the garment which has to match the specifications of the buyer 100%.

2.8.7: Finishing department:

The finishing department is the department which comes after all the departments and it plays an equally important role in the final appearance of the garment. This department includes majority of the following steps

Trimming: This involves the removal of the extra threads from the garment at the
stitched areas.

Inspection: The inspection depends on the buyer requirement i.e; if the buyer
emphasizes for a 100% inspection then the Talisman has to do as specified.

Tagging: Once the garments are done with the inspection and complete pressing then
they send for tagging the labels and the labels include the size labels, price tags and miscellaneous labels etc.

Packing: The packing is always done in the carton boxes and there are several criteria
for the garments.

2.8.8: Human resources department (HRD): It is one of the important

divisions of the Organization. It formulates the draft policies for the Organization that is usually placed in the board meeting to accept. The division controls all the administrative activities of the Organization. Decision about requirement, and postings of the organization employees in different divisions or branches as well as other important decisions are taken by the division. Talisman Ltd has 15 security guards working round the clock to ensure the security of the organization.

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2.8.9: Logistic: Logistical services include repair maintenance facilities such as

plumbing and prompt trouble shooting. Permanent maintenance personnel ensure that the products are in good condition.

1.8.10: Accounts and finance:

Talisman Ltd has a experienced team in this department headed by senior most cost and management accounting professionals of Bangladesh.

2.8.11: Marketing and customer service:

Talisman Ltd strongest point is its efficient Marketing Service Department. This department gives personal attention to each client and is known for its prompt, effective action. A warm, friendly atmosphere is created for the client who can make purchase decisions at his/her pace without feeling pressurized.

2.8.12: Quality control department:

This department always cares on quality. This department control by the Q.C. Managers. They verify the quality as the buyer indicates their order. They audit all the process, preproduction to packing and final audit. Q.C. process is indicated previous.

2.8.13: Commercial department:

Total transportation activities, i.e. Import- export, L/C open, or any other Organization activities performed by Commercial department. Commercial Managers cover all the activities.

2.8.14: Merchandising department:

This department is very important for every garment industries and garment related buying house. Merchandiser is a Data Bus between Buyer and sellers. Merchandising department perform the activities from collecting order to reaches the product on buyer. This department is responsible for providing all the raw materials needed for all kinds of garments products.

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Chapter 03

3.0: Literature Review:

This section reviews the literature relevant of merchandising to the garment industry of Bangladesh. There have been a few of studies examining the merchandising of the textile and RMG industry in Bangladesh. Some researchers (Paul-Majumder, 2002; Khundker, 2002; Afsar, 2000) have focused on merchandising and its effects of garment industry. These researchers also showed how the merchandising strategy is affected exports of garments product. Some brilliant entrepreneurship was one of the main reasons for this enormous growth of garments industry in Bangladesh (Quddus, 1996). The extraordinary growth rates of Bangladesh apparel industry was result of combination of Multifibre Agreeement (MFA), merchandising strategy, favorable policy by the government with adequate infrastructure (Martin and Bhardwaj, 2001). Similar patterns found on the rise of the garment industry by other researchers (Haider, 2000). The other study focused on the problem associated with the RMG industry; it was found that infrastructure constraints and sometimes lack of suitable merchandising activities are the main bottleneck (Bow, 2001; Sattar et al. 2005). But in case of capacity building constraints much of the research to date has focused on job training and primary education for workers. Khundker (2002) looked for capacity building through training and introduction of skill related course, while World Bank funded on fashion and Design Development; Rahman (2000) stressed on workers primary education for better productivity through less mistakes, using sophisticated machines through experience and being substitute in absence of others; Bhattacharya and Rahman (2000) asked for skill development, facilitating technology transfer through short term incentive package.

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Comparing with the rest of the world Bangladeshs wages are among the lowest, but surprisingly the productivity is also lowest among the rest, limiting any competitive advantage that might be gained from low-cost production. Despite these low wages, overall in the country the employment in this sector has helped to alleviate poverty drastically, as well as empowering women. The average annual growth in per capita income had steadily accelerated from about 1.6 per cent per annum in the first half of the 1980s to 3.6 percent by the latter half of the 1990s and 5.2 percent for the 1990s (Khundker , 2002). A big number of researches focused on quota issues of MFA and concentrated on merchandising the ramification of post quota period. This includes different organizations like The World Bank (2003, 2004, 2005) through separate individual study, United Nations (2005), to individual researcher Bhattacharya and Rahman (2000), Sattar et al. (2005), Minor (2002), Yang (2004), Hayashi (2005), Islam (2001). All of these studies predicted more or less, extreme to moderate downfall for the Bangladesh apparel exports and merchandising activities after the quota free period. However there are two different outcomes of these studies. The Western researchers gave negative outcome of merchandising, on the other hand local researchers outcome was challenging, if not optimistic. For example, a Swiss consultant, Gherzi Textile Organization, commissioned by the Bangladesh Ministry of Commerce, predicted bad scenario unless Bangladesh improved its infrastructure, merchandising strategy and suggested that exports would decrease by $2 billion and around 800,000 jobs would disappear. The World Bank (Sattar , 2005), using GTAP
1

model, predicted export shocks and economic welfare losses for

Bangladesh. Over three-to-four years, the model predicted, the economic welfare costs could run to $370 million. In terms of jobs, Bangladesh losses could be significant 17 percent of the current workforce in apparel and 5 percent in textiles. On the other hand, local researchers Islam (2001), Bhattacharya and Rahman (2000), Khundker (2002) took cautiously merchandising approach in analyzing the post MFA situation. Though everybody showed concern about the fall of the garment export, their studies concentrated on merchandising activities and infrastructure development, survival

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and growth by policy reforms, compliance and labor law implementation but with local tacit knowledge. Talisman Ltd is a growing garment in our country that was established in 2010. There have no any study of its about merchandising strategy. Hence merchandising department is most important in a garments industry than others department. So I tried show that how they conducted their present merchandising system and what steps have to take for the development of merchandising system of this company.

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Chapter 04 4.0: Findings and Analysis:

Here six merchandisers are working with different Buyer. At first the Buyer gives them an inquiry sheet with measurement chart sketch of sample. Then they make a development sample and send it to the buyer. Buyer makes comments on it, it is ok/ not. Sometimes they successful, sometimes they being fail. If they success they order Yarn, Trims, and accessories. In front of their shipment time they are trying to arrange everything as early as possible. When all items are in store then yarn is given for 2/3 pieces of garments sample send for make size set. When size set made then they measure it. If it is OK the yarn provide for 100% production. In production process the merchandiser just follow up his order. During that total time merchandiser inform his buyer what is the condition of his product. In my 70 days working period I have also follow up whole worth order. 4.1 : Merchandising Processes of Talisman Ltd: Merchandising of Talisman Ltd garments have some chronological processes. These are given below-

4.1.1: Sequence of Sampling:

Serial Number I. Name of Sample 1st Pattern 2nd Pattern Explanation

The first physical version of any garment as per the artwork done by designer and/or developer. Usually designer/ developer always ask for some changes to the first pattern. Second pattern is made as per comments. Where first pattern is made on designers artwork, Counter sample is to make not on designer start work, has to follow another sample given by the merchandiser.

II.

III.

Counter Sample

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IV.

Sales man Sample

Sample is made when price is confirmed and orders are on speculation, usually in L size in all color combinations of expected order. Buyer arranges a meeting with its customer and record their response on order quantity per color, size etc. And finally place order to their vendor. Samples are made with actual color and material to be worn by the models on the event of shooting for catalog. It consists of 1 piece from each size for each color combination. Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve, collar, neck etc and some accessories. When material for bulk production arrived, factory makes a sample with the actual material and sends to buyer. It is a reference to the buyer that the bulk is being produced as per specification. Buyer wants to be assured that correct material is sourced and line workmanship confirm to the quality. A sample is kept from every pre shipping inspection to be referred, if required, after the order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is important.

V.

Photo Sample

VI.

Approval Sample ( Size set, Mock up)

VII.

Pre production Sample

VIII.

Production Sample

IX.

Shipping Sample

4.1.2: Swatch: Swatch is a presentation of all the materials is (Fabric and Accessories)
used for any specific style/order. Usually small piece of fabric and each piece of accessories are attached in board paper in a systematic manner. Swatch is very important for production line to make the correct construction of a garment and QC department ensures it. Concerned merchandiser should confirm/approve the swatch.

4.1.3: Trims: Trims cover all the items used in the garment except the basic fabric.
There are hundreds of items used to manufacture the garments, proper selection of trims
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and its quality are very important for styling, otherwise the garment may be rejected or returned by the customers. Following is a part of list that covers some names of the trims: Zipper/Fastener, Sewing Thread, Main Label, Flag Label, Button, Elastic, Eyelet, Tags, Tag pin, Plastic clip, Sticker, Hanger, Poly bag, Scotch tape, Gum tape, Photo Board, Back Board, Tissue, and Carton etc.

4.1.4: Others activities of merchandisers:

Activities Name Communication of International Business Way of completion work Telephone Conversation, Fax/ E-Mail, Formal Meeting, Lunch and Dinner The Information Normally Get About An Order. Factory Loading, Factory Capacity, Factory History, Factory Setup Details, Market Reputation, Type of Buyers Dealing How a merchandiser meet buyers Merchandiser detail to buyer about factory profile. Merchandiser Understand the Order sheet. Arrange the all component for order execution. Production Tracking. Timely Shipment Method of purchasing raw materials: Lab-Dip, Approval the Lab-Dip, Collect price Quotation, Negotiation, Back to Back L/C transfer, Delivery Chelan received.

requirements.

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Procedure of Imported goods

Price Inquiry (Quotation), L/C Opening, Received Shipping Advice, Facing

Customs, Closing Transaction How the accepted order is passed on the floor. Merchandiser searches the scope of knitting machine according to required Gauge. Make production schedule Trim and Accessories Card Prepare Make well finishing according to buyer requirement in case of Labeling, Zippering, Buttoning, Ironing, Packaging, Cartooning, How a merchandiser track his production in the factory. Follow-up yarn supply in factory, Knitting follow-up, Linking follow-up, Accessories supply, Finishing follow-up, Ready for export,

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Merchandising department of Talisman Ltd well experienced but I have got some findings during my internship period when I worked with merchandising dept. These findings have point out by discussing with GM of merchandising department, Manager of merchandising department, Assistant Manager and employee of merchandising and other departments to the following questions. These findings are as follows
Q1:

Which skill do you prefer to recruit employees in merchandising

department? The most of the Merchandisers may technically sound enough. But the main lacking is that they are weak in "Management Skills". As a result, the executives of merchandising department in Talisman Ltd feel the lacking about Management Skill.

Q-2: The working environment of Talisman Ltd is good for merchandisers.

From the survey it has been seen that, 0 % of total sample size is strongly disagree,10% is disagree, 23% is neither agree nor disagree or neutral, 42% is agree and 25% is strongly agree. So from the pie chart, we can say that most of the respondents are satisfied about working environment this garment.

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Q- 3: Talisman Ltd provides extra facility for their merchandisers.

From the survey it has been seen that, 0% of total sample size is strongly disagree,10% is disagree, 20% is neither agree nor disagree or neutral, 40% is agree and 30% is strongly agree. So we see that merchandisers employee get more salary or others facilities than others. Q- 4: The merchandising department maintains proper order-follow up system.

From the survey it has been seen that, 0% of total sample size is strongly disagree,10% is disagree, 20% is neither agree nor disagree or neutral, 45% is agree and 25% is strongly agree. So we can say that most of Talisman Ltd clients are satisfied proper order follow up system.
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Q- 5: All merchandisers have clear about their job responsibilities.

From the survey it has been seen that, 10% of total sample size is strongly disagree,20% is disagree, 40% is neither agree nor disagree or neutral, 20% is agree and 10% is strongly agree. Here it is confused that only 30% respondents are agree this statement, so here satisfactory level is inferior. Q- 6: Talisman Ltd should not take necessary steps to improve the communication skills of merchandisers.

From the survey it has been seen that, 15% of total sample size is strongly disagree,30% is disagree, 25% is neither agree nor disagree or neutral, 15% is agree and 15% is strongly agree. Here satisfactory level is also inferior.

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Q- 7: Talisman Ltd does not need of merchandising skill development training program for their merchandisers.

From the survey it has been seen that, 10% of total sample size is strongly disagree,20% is disagree, 35% is neither agree nor disagree or neutral, 15% is agree and 20% is strongly agree. So here most respondents are indifference or neutral. So Talisman should emphasis this matter. Q- 8: Merchandisers are independent to negotiate with buyers.

From the survey it has been seen that, 12% of total sample size is strongly disagree,20% is disagree, 38% is neither agree nor disagree or neutral, 20% is agree and 10% is strongly agree. So, Talisman should focus that merchandisers can negotiate independently of their buyers.

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Q- 9: Salary structure for merchandisers is good enough comparatively others.

From the survey it has been seen that, 10% of total sample size is strongly disagree, 20% is disagree, 40% is neither agree nor disagree or neutral, 30% is agree and 0% is strongly agree. So we can conclude that salary structure of merchandisers is more than others employee. Q- 10: The physical facilities at Talisman Ltd are visually appealing.

From the survey it has been seen that, 5% of total sample size is strongly disagree,10% is disagree, 20% is neither agree nor disagree or neutral, 35% is agree and 30% is strongly agree. So Talisman should focus visual facilities like as transport facilities.

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Q- 11: When Talisman Ltd Promise to do something, they do timely.

From the survey it has been seen that, 0% of total sample size is strongly disagree,14% is disagree, 29% is neither agree nor disagree or neutral, 31% is agree and 26% is strongly agree. So from the survey we are understood that customers are satisfied about commitment of the employee of Talisman Ltd. Q- 12: When a Client has a problem; Talisman Ltd shows a sincere interest in solving it.

This is very important question for customer satisfaction. Here, we found that, 0% of total sample size is strongly disagree,0% is disagree, 35% is neither agree nor disagree or neutral,35% is agree and 30% is strongly agree. So from the survey we are understood that most customer of the Talisman Ltd is neutral about their interest to solving the problem.

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Q- 13: Talisman Ltd insists on error-free records.

This is important question for customer satisfaction. Here, it has been seen that, 0% of total sample size is strongly disagree,14% is disagree, 43% is neither agree nor disagree or neutral, 29% is agree and 14% is strongly agree. So from the survey it is understood that most of the customers are not express their opinion about error-free record of Talisman Ltd employees. Q- 14: Personnel in Talisman Ltd always are willing to help Clients.

This is very important question for customer satisfaction level of Talisman Ltd here, it has been seen that, 6% of total sample size is strongly disagree,11% is disagree, 17% is neither agree nor disagree or neutral, 23% is agree and 43% is strongly agree. So employees of the Talisman Ltd. Intensions are to always help the clients.

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Q- 15: Personnel in Talisman Ltd never are too busy to respond to Clients' requests.

It is very important question for customer satisfaction. Here, it has been seen that, 9% of total sample size is strongly disagree,6% is disagree, 20% is neither agree nor disagree or neutral, 34% is agree and 31% is strongly agree. So we are understood that most of the proportions of the customers are satisfied about the willingness of the employee of Talisman Ltd for solution clients problem. Q- 16: Clients of Talisman Ltd feel safe in their dealings with the Organization.

From the survey it has been seen that, 5% of total sample size is strongly disagree,15% is disagree, 15% is neither agree nor disagree or neutral, 40% is agree and 25% is strongly agree. From this survey we understood that most of the clients feel safe dealings with the organization.
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Q- 17: Personnel in Talisman Ltd are consistently courteous with Clients.

From the survey it has been seen that, 4% of total sample size is strongly disagree,21% is disagree, 10% is neither agree nor disagree or neutral, 45% is agree and 20% is strongly agree. It shows that personnel of Talisman Ltd are courteous with clients. Q- 18: Talisman Ltd gives clients individual attention.

From the survey it has been seen that, 0% of total sample size is strongly disagree, 5% is disagree, 30% is neither agree nor disagree or neutral, 35% is agree and 30% is strongly agree. It shows that Talisman Ltd Company is satisfactory level with individual clients attention.

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Q- 19: Talisman Ltd has operating hours convenient to all their clients.

Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 20% is Disagree, 34%is Neither Agree nor Disagree or Neutral, 25% is Agree and 21% is Strongly Agree. So it has been seen that customers are happy for their operating hours of the Organization.

Q- 20: The personnel of Talisman Ltd understand the specific needs of their Clients.

This is important question for Customer satisfaction. Here, it has been seen that, 0% of

total sample Size is strongly Disagree,20% is Disagree, 27% is Neither Agree nor Disagree or Neutral, 28% is Agree and 25% is Strongly Agree. From the survey it has been seen that every staff of the Talisman Ltd has personal attention to their client.

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4.2: Synopsis of the Findings:

In this survey, satisfaction is measured along twenty different attributes of Talisman Ltd services.

The overall satisfaction results of the survey were average if the total scenario is considered for an average organization. But in terms of Talisman Ltd, which is a worldclass service provider worldwide, the results were highly dissatisfactory. Only 24% of the respondents were highly satisfied and were loyal to the organization. In total, 31% of the respondents were found to be satisfied with the services of the organization. The rest of the respondents were found on the neutral and highly dissatisfied with the organization. This number represents the customers that perceived the organization as inferior. The result showed that a high degree of correlation exists between problem resolution and satisfaction. Based on the above results, it can be said that Talisman Ltd should reconsider its service strategies in Bangladesh and design products and services that better satisfy customer needs and requirements. Organization should be more tactful in dealing with the customers and launch new products that fully meet customer expectations.

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Chapter - 5

5.0: Recommendation:
The garments sector plays a very important role to earn foreign exchange to our country, so buying house importance is very high. A large amount of foreign money comes from the exporting of garments product. Talisman Ltd is very established garments exporting buying house. Though a large number of workers maintain their live on this sector. So, government should take special nursing in garments sector. Some points are given to overcome the problems of merchandising department of this garment.

The authority should improve their knowledge about merchandising management. A specific department is needed for training and research, which will provide adequate training and research facilities for personnel for development. Talisman Ltd should follow a specific inventory costing method, in the context of rising trend in raw materials price.

Offers massively scalable technology to handle billions of product items, millions of consumers and unlimited interactions.

Displays clusters of product and customer information to identify new trends in product relationships and consumer behavior.

Understand content, products and interactions with global customers, regardless of the language.

Should automatically update categories when new products are added or deleted from the catalog.

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Chapter - 06

6.0: Conclusion:
Todays organization demands that the merchandising management function deliver a valuable side of earning foreign currency and take part a vital role to communicate international business. The experienced merchandiser is being demanded in every country. It may an honorable professional for educated persons. For developing garment sector merchandising management system will have to focuses on modern system. The future of garment industries is brighter in the era of globalization. Ultra modern technology are being used in the woven and knit garment industries in the outside world other than Bangladesh. To survive in the free market of the world, we have to use world standard latest technology in our ready made garment sector. Management of merchandising is a big job and is a complex one. The study Merchandising Management of Talisman Ltd revealed that Merchandiser is most valuable human resources for the progress of the organization. For the development of these valuable resources there are many factors involved. To increase the productivity of an organization effectively, efficient merchandiser will have to develop. Preparation of future business managers should provide for the development of managerial skills relating to merchandiser function. The RMG sector is expected to grow despite the global financial crisis of 2009. As China is finding it challenging to make textile and foot wear items at cheap price, due to rising labor costs, many foreign investors, are coming to Bangladesh to take advantage of the low labor cost.

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Bibliography

Rahman, Rushidan Islam, 2006, Industrialization in a Labour Surplus Economy: The Apparel Sector in Bangladesh, Pratima Paul-Majumdar and Binayak Sen, Dhaka. Rahman, Mustafizur, Ananya Raihan, 2007, China's Accession to the WTO: Consequences for Bangladesh's Export Oriented RMG Sector, Center for Policy Dialogue, Dhaka. Rahman, Shahidur, 2009, Global Shift: Bangladesh Garment Industry in Perspective, Asian Affairs, Volume XXI, Number 1, page 75-91.

http://www.talismanbd.com/November20,2012,9:30pm. http://www.fcibd.com/Novemver 23,2012,10:25pm.

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Appendix
Questionnaire
Respondent Name: Post: Address: Phone no.: Time and Date of Interview:

I, the student MBA program student of Bangladesh University of Professionals, have under taken a study on Merchandising Strategy of Talisman Limited Garments as a requirement case. It would be highly appreciable if you provide me information in this regard and I assure you that all the data will be used for academic purposes only and will be kept confidential.

1. Which skill do you prefer to recruit employees in merchandising department? (1) I. Technical Skill II. Management Skill

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A-01 2. Give your agreement in a scale of +2 (Strongly agree) to -2 (Strong disagree) regular in following statements. Please give only one tick mark which is appropriate of you.

Questions -2 I. Working environment is good of Talisman Ltd for merchandisers. II. Talisman Ltd provides extra facility for their merchandisers. III. The merchandising department maintains proper order-follow up system. IV. All merchandisers have clear about their job responsibilities. V. Talisman does not take necessary steps to improve the communication skills of merchandisers. VI. Talisman Ltd does not need of merchandising skill development training program for their merchandisers. VII. Merchandisers are independent to negotiate with buyers. VIII. Salary structure for merchandisers is go enough comparatively others. IX.

Scale -1 0 +1 +2

The physical facilities at Talisman Ltd are visually

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appealing. X. When Talisman Ltd Promise to do something, they do timely. XI. When a Client has a problem, Talisman Ltd shows a sincere interest in solving it. XII. XIII. Talisman Ltd insists on error-free records. Personnel in Talisman Ltd always are willing to help Clients. XIV. Personnel in Talisman Ltd never are too busy to respond to Clients' requests. XV. Clients of Talisman Ltd feel safe in their dealings with the Organization. XVI. Personnel in Talisman Ltd are consistently courteous with Clients. XVII. Talisman Ltd gives clients individual attention.

XVIII. Talisman Ltd has operating hours convenient to all clients. IX. The personnel of Talisman Ltd understand the specific needs of their Clients.

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Table-1: Buyer inspecting garments chart.

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Figure-1: Process of Transaction of Letter of Credit (LC)

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Figure-2: Hanger band

Figure-3: Hand cutter machine.

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Figure-4: Digital auto cutter machine.

Figure-5: Cutter machine.

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Figure-6: Relax Machine

Figure-7: Preparing Marker

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Figure-8: Pattern.

Figure-09: Sewing Floor.

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