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

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
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 Tajinder Pal Saini
Place: Phagwara (2020070329)

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
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

2020070329
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
found that these decisions and planning are continuously adopting by every big and
small retailer; because it is the demand of current time.
INTRODUCTION
Retailing Overview
In Apparel Segment and Merchandise Assortment Planning
Retailing Overview-
It’s a human tendency to have a comfort, luxurious life and have all facilities to him.
And as there is a golden period going on now; anybody can enjoy these benefits. 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.
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.
Retail Sales in India

Fig 1.1
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
Indian Organized Retail is set to explode with Food & Lifestyle retail as major segments
Fig 1.3
And apparel industry is also one of these SBU’s; so definitely these all things make 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
(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 5.7 4.0 6.7

consumption expenditure
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
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 & 7.3 8.8 8.6 9.3

footwear
4. Furniture, 4.8 5.8 6.2 6.8

furnishing,
appliances &
services
5. 9 8.6 8.5 8
Non-institutional
healthcare
6. Sports goods, 2 2.4 2.6 2.7

entertainment,
equipment &
books
7. Personal care 3.5 3.8 3.9 4.2
8. Jewellery, 5 5.4 5.4 5.9

watches, etc
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
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 999 1399 1799 1299 1599

(in Rs.)
Type of Regular Stone Tinsel- Lyera Broken twill Over dyed

Fabric denim washed based
denim denim
Colors Light blue Dark blue Light blue Light blue Blue
Black Indigo Black Black Black
Black Deep blue
This plan describes general styles, price levels, fabric composition and colors. 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
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 are-
The concept of merchandise and assortment(stock keeping units and categories),
Organizing the buying process by categories,
Category management,
Levels of buying organizations,
Financial objectives,
Gross margin return on inventory investment( GMROI),
Sales forecasting
Product mix trends.
Literature review is important for-
Identify critical issues in literature,
Discuss how different authors works have complement one another and how they 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
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
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

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
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 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
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
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
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
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
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.
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 Self-
Knowledge earning.
Gaining practical exposure to Merchandise Assortment Planning.
Gain knowledge about customer preferences.
To companies-
This report will be beneficial for companies and outlets too because from this 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 customers-
They will get to know about retailer’s strategies and their work process.
From this report they can say their views and their opinions about these retailing
strategies, so it is beneficial for them to make all required changes in system.
RESEARCH METHODOLOGY
For this projesct one has to know each and every aspect of the concept thoroughly. 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.
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
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.
PROCESS FLOW OF THE PROJECT
DESIGN OF QUESTIONNAIRE
FINDINGS,
PILOTING
RECOMMENDATIONS
BASED ON &
CORRECTION
QUESTIONNAIRE OF DATA
CONCLUSION
AFTER FEEDBACK
DATA ENTRY
DATA
REDESIGN CLEANING
THE QUESTIONNAIRE
ANALYSIS
QUALITY CHECK
GETTING QUESTIONNAIRE FILLED

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 retailers-
Retailers are very much aware about this and they are making their all strategies
according to it.
There are so many factors which came in front of taking these decisions i.e. price,
quality, fashion/trends, looks, brand name. And after considering these all, 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 it-
The 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.
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.
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.

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 survey-
Researcher 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.
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 mainly-
Financial Objectives
Customer’s preferences and demand
GMROI figures
Retail brand’s image and good will
Seasonal demand and fashion
Q.4. Is there any proper strategy you are adopting for these decisions?
Ans.- Some stores have their own strategic plans for capturing market and company’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.
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
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 Customers-

Q.1. From where you prefer to buy apparels-
Any traditional store (unbranded) or
A branded retail outlet.
Ans.- Mostly people from Jalandhar prefers unbranded and traditional stores more.
62 people from total 100 customers said this. And others prefer branded clothing.
Q.2. What factors you are considering before taking any apparel purchasing decision,
most-
Price,
Variety
Quality
Looks
Fashion/trend
Ans.- As research is being conducted in Jalandhar so, here most people prefers 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.
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
Q.4. Which apparel outlet you prefer most for buying clothing? (To college/school going
youths.)
Spykar
Tommy Hilfiger
Adidas
Reebok
Sportking
Monte Carlo
Koutons
Cotton County
oxemburg
Or any other organized or unorganized retail outlet
Ans.-
Q.5. Which apparel outlet you prefer most for buying clothing?
(To young professionals.)
John Players
Peter England
Koutons
Cotton County
Monte Carlo
Or any other organized or unorganized outlet
Ans.-
Q.6. Which apparel outlet you prefer most for buying clothing? (For children apparel
purchasing)
Lilliput
Gini & Jony
Ans.
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.-
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.-
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.-
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
Which Store do you prefer for buying clothes(young professionals)?
Observed N Expected N Residual

john players 60 20.0 40.0
peter England 24 20.0 4.0
Koutons 8 20.0 -12.0
cotton county 6 20.0 -14.0
monte carlo 2 20.0 -18.0
Total 100
Test Statistics
Which Store do
you prefer for
buying
clothes(young
professionals)?
Chi-Square(
114.000
a)
df 4
Asymp. Sig. .000
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.
Calculated value is more than tabulated value so null hypothesis is rejected and
alternate hypothesis is selected.So all stores don’t appeal equally to the consumers.
John Players is preferred brand among young professionals.
which store do you prefer for buying clothes(college and school going youth)?
Observed N Expected N Residual

spykar 30 11.1 18.9
adidas 17 11.1 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
9 8 11.1 -3.1
Total 100
Test Statistics
which store do
Which Store do you prefer for
you prefer for buying
buying clothes(college
clothes(young and school
professionals)? going youth)?
Chi-Square(a
114.000 66.680
,b)
df 4 8
Asymp. Sig. .000 .000
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 11.1.
Calculated value is more than tabulated value so null hypothesis is rejected 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.
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.
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 that-
Spykar is most famous between college/school going youths.
John Players is most favorite brand for Professionals.
And in children’s segment, parents prefer traditional outlets mostly.
And all other brands are still there in market and fighting each other for attracting 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.
Appendices
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 ares-
Tell 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?
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 apparels-
Any traditional store (unbranded) or
A branded retail outlet.
2)What factors you are considering before taking any apparel purchasing decision,
most-
Price,
Variety
Quality
Looks
Fashion/trend
3)Are you satisfied with the services and varieties of products provided by these
apparel outlets?
Highly Satisfied
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
Peter England
Koutons
Cotton County
Monte Carlo
6)Which apparel outlet you prefer most for buying clothing? (For children apparel
purchasing)
Lilliput
Gini & Jony
7)Do you think in organized retail store, a customer have less opportunities for bargain,
less number of choices, high prices, less knowledge and so many other negative factors?
Yes
No
We can ignore them.

8)what you think is this new retailing scenario good for India? As in India, literacy rate 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?
Appendix-3
Assortment Plan For Boys’ Jeans
Style Straight-leg Straight-leg Straight-legT Loose-fit Loose-fit

ight bottom
Retail price 999 1399 1799 1299 1599

(in Rs.)
Type of Regular Stone Tinsel- Lyera Broken twill Over dyed

Fabric denim washed based
denim denim
Colors Light blue Dark blue Light blue Light blue Blue
Black Indigo Black Black Black
Black Deep blue
Figure: Assortment Plan for Boy’s Jeans at Spykar
Source: Data collected from Spykar team.

Appendix- 4
Ladies Wear
An item of apparel in order to protect regular clothing. Generally made

Apron
of cotton & may be decorative. It is fastened at the back using straps.
It is a wrap around robe styled with long sleeves, a shawl collar held by
Bathrobe
sash at the waist. Generally made of terry cloth.
Clothing for the upper part of the body made generally of soft cloth &
Blouses less tailored than a shirt May be embroidered with or without front
opening.
A fitted under garment worn by women to hold & mould breasts,

Bra usually consists of two cups & held by straps & elastic at the back. May
be of cotton or p/v material.
Apparel item for women worn under the outer garment covering torso
Panties below the waist. May be laced or without lace. With elasticated
waistband.
This is a short length blouse with straight top and broad shoulder
Camisole
straps.
This is a sleeveless outer garment of various lengths cut in full circle, in

Cape
a segment & may have slit for arms & may have front opening.
Named after 7th earl of cardigan, generally it is a knitted item which is

Cardigan
open with ribbed cuffs & hem. May be half or full sleeves.
One piece garment which has a foundation with firm support achieved
Corset 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.
Basically elastic straps to hold the hose. These straps connect at waist
Garters
line to an elastic band around waist.
Designed to be worn over other clothing generally hip length. Mostly

Jacket/Coat 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.
Knitted apparel item which is fitted and in one piece with tail which
Leotards
snaps between legs. Usually meant for dancers & acrobats.
Made from light weight fabric & worn while sleeping. Generally it is
Night Dress decorated and may have pleats or gathers with small / delicate print
motifs.
Pants with a bib top & suspender straps over the shoulder which close
Overall
at the back.
Introduced during the 1930's for winter sports, this garment is a

Parka pull-on jacket with an attached hood & may have distinctive style
features. .
It is an under garment for girls/ women starting at the waist.

Petticoat Depending on over garment it may be full or narrow, lace trimmed,
tailored long or short.
Designed to be worn during rainy season & made up of water proof

Raincoat material or fabric with special surface finish to make it water repellent.
It is generally front open with attached hood.
One piece sport suit or jump suit with shirt & shorts or bloomer joined
Romper
by waistline seam. May have elasticized waist.
Apparel for the upper part of the body. Usually worn with pants &
Shirts 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 Similar to shirt, but this item is meant for casual wear with zip opening
Zipper in front. May be with or without hood & with or without sleeves.
Shorts Pants shorter than knee length mainly worn by adults & children for
sports and/ or casual wear.
Separate item of clothing starting above or from the natural waistline.

Skirts 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.
Undergarments worn by women starting from bust & generally held in

Slips place by shoulder straps. Length can vary according to the length of
the dress.
As the name suggests it is an outfit designed for swimming or sun

Swim-Suit bathing, two pieces or one piece. This outfit reveals more body as top
is similar to brassier & the other piece similar to panties.
Knitted, pullover sport apparel made in any colour, frequently screen

T-Shirt
printed. May be crew neck or polo neck & with ribbed collor & cuffs.
Designed to cover lower torso & made to fit around each leg. Usually
Trousers
made with waistband & fly front or button closing.
An item of apparel of waist length worn over shirt or under a suit

Waistcoat jacket usually made of cotton / silk with or without embroidery with
back part in satin fabric.
Generally light weight nylon jacket, zipped front with close fitting
Wind Cheater
elastic waistband & cuffs or drawstring waist often with attached hood
Appendix-5
Men's Wear
Hip length jacket with drawstring hem & waist with zip front. Often
Anorak
quilted or fur lined, designed for cold weather.
It is a wraparound robe styled with long sleeves, a shawl collar held by

Bathrobe
sash at the waist. Generally made of terry cloth.
Jacket with a low waist line & usually shorter than hip length and
Blouson
gathered into flat waistband or pulled by drawstring.
Shorts with elasticated waistbands similar to those worn by boxers &

Boxer Shorts often printed in interesting motifs made up of cotton or synthetic
material.
Coats, generally of hip length with full front opening. May be single or
Carcoat double breasted with long sleeves. These are utility coats comfortable
for driving.
Named after 7th earl of cardigan, generally it is a knitted item which is

Cardigan
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.
Sleeping outfit generally made of cotton. The shirt being front open and
Night Suit
loose fitted while pants are with drawstring waist and wide bottom.
Men's coat, heavier than topcoat and designed for very cold weather.
Overcoat
Often fully lined, with fur or without fur.
Knitted apparel item- round, crew or V-neck pulled on over the head.
Pullover
May be in interesting knit structures such as purl, cable, and jacquard.
Apparel for the upper part of body. Usually worn with pants & buttoned
Shirts left over right for men. Attached with collars in different styles such as
button down or cut away & worn casually or formally.
Pants shorter than knee length mainly worn by adults & children as
Shorts
sportswear and casual wear.
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
Skisuit
width with knitted band at the ankles. Jackets may be quilted with nylon
insulation which is added for extra warmth.
Knitted, pullover sport apparel made in any colour, frequently screen

T-Shirt
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
generally made up of fleece or velour.
Designed to cover lower torso & made to fit around each leg. Usually
Trousers
made with waistband & fly front or button closing.
It is an under garment generally tight fitted & made up of stretch fabric/

Under Pants
knitted fabric with elasticated waistband.
An apparel item of waist length worn over shirt or under a suit jacket.
Waistcoat Usually made of cotton/ silk with or without embroidery with back part
in satin fabric.
Generally light weight nylon jacket. Zipped front with close fitting elastic
Wind Cheater
waistband & cuffs or drawstring waist, often with attached hood.
Basically one piece garment and with functional features. It is mainly for
Workwear
industrial use & made up of heavy fabric without any fancy features.
REFERENCES
REFERENCES
List of books and articles-
Retail Management, ICFAI University Press,
Business Research Methods, ICFAI University Press,
Case studies in Retail Management (Volume-2), ICFAI University Press
Nordstrom’s Perpetual Inventory System, Page No. 245-260
Turnaround of JC Penney, Page No. 261-274
Big Bazaar: Serving the Classes, Page No. 275-276
Retail Management Review, ICFAI University Press

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
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 articles-
www.google.com
www.wikipedia.com
www.johnplayers.com
www.koutonsindia.org
www.cottoncounty,com
www.customerresearch.com
www.researchindia.org
www.adidas.com
www.priknit.com
www.rbk.com
www.lilliput.com
www.oxemburg.com
www.montecarlo.com
www.answers.com
www.managementjuice.com
www.businesscases.com
www.prenticehall.com
http://www.indiainbusiness.nic.in/
GLOSSARY
GLOSSARY
Administrative Management Problems- The problems related to the resources 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.
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.
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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A COMPARATIVE STUDY OF MERCHANDISE

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

NAME OF THE STUDENT: TAJINDERPAL SAINI

MBA SEC (1703)

UNIVERSITY REGISTRATION NO.2020070329

LOVELY PROFESSIONAL UNIVERSITY

Date: 15 /5/2009 Tajinder Pal Saini

Place: Phagwara (2020070329)

Date: 15/5/2009 Ms.Gurdeep Kaur

Place: Phagwara (Faculty Supervisor)

Lovely Professional University

Tajinder Pal Saini

In Apparel Segment and Merchandise Assortment Planning

Retail Sales in 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 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

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 & 7.3 8.8 8.6 9.3

4. Furniture, 4.8 5.8 6.2 6.8

6. Sports goods, 2 2.4 2.6 2.7

7. Personal care 3.5 3.8 3.9 4.2

8. Jewellery, 5 5.4 5.4 5.9

Total Retail 100 100 100 100

In Apparel Segment and Merchandise Assortment Planning-

An assortment plan depicts what should be carried in a specific category of

Assortment Plan For Boys’ Jeans

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

Retail price 999 1399 1799 1299 1599

Type of Regular Stone Tinsel- Lyera Broken twill Over dyed

Black Indigo Black Black Black

Black Deep blue

As merchandise assortment planning is one important issue for consideration for

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

Organizing the buying process by categories,

Levels of buying organizations,

Gross margin return on inventory investment( GMROI),

Product mix trends.

Literature review is important for-

Identify critical issues in literature,

Writing literature review develops research’s focus.

Parag Pateria in his research paper

Neihm and Yoon (2006) examined relationship of Generation Y (Gen Y) customers

clothing at discount stores, expectation is for convenient operation hours, customers

Scarpi(2006) analyze the relation between hedonic/utilitarian shopping behavior and a

men’s shopping satisfaction and store preferences, specifically investigating the

Moye (2000) examined the influence of selected environmental dimensions on store

RESEARCH PROBLEM/OBJECTIVES OF THE STUDY

Management Thesis is a part of the MBA Program. The objective of a Management

The study was performed aiming at the following objectives: