Professional Documents
Culture Documents
1) First Stage:
Department: Product Merchandising
Mentor: Mr. Inder Preet Singh ; Product Merchandiser (Arrow)
Topic: Merchandising stint with the Brand for sampling as well as Road show
coordination and work for FW-07 collection and Competitive Market Analysis of
existing merchandise portfolio of ARROW against its competitors on various
parameters
2) Second Stage:
Department: Visual Merchandising
Mentor: Mrs. Sonali Saha ; Manager Visual Merchandising (Arrow)
Topic: An insight into Visual Merchandise scheme used by brands along with the
M.D.Q. Cofficient calculation for Arrow and its competitors in Bangalore
(Including coordination and work in Cross Over Campaign in stores of Bangalore).
3) Third stage:
Department: Product Merchandising
Mentor: Mr. Inder Preet Singh; Product Merchandiser (Arrow)
Topic: Consumer survey for understanding market psychographics, for perceptual
mapping and for market mapping of Brand Arrow.
I am hereby presenting the three stages of my project as my summer training project.
Rakesh Ranjan
M.F.Tech. -4th Sem.
NIFT ,Hyderabad
DECLARATION
EXECUTIVE SUMMARY
INTRODUCTION
Company profile………………………
About Arrow …………………..
1. Merchandising stint with the Brand for sampling as well as Road show
coordination and work for FW-07 collection and Competitive Market
Analysis of existing merchandise portfolio of ARROW against its competitors
on various parameters.
2. An insight into Visual Merchandise scheme used by brands along with the
M.D.Q. Coefficient calculation for Arrow and its competitors in Bangalore
(Including coordination and work in Cross Over Campaign).
3. Market Research
RESEARCH METHODOLOGY
PROJECT OUTCOMES:
Competitors analysis
Market Mapping
SWOT Analysis
Conclusion
Limitations
ANNEXURES
Bibliography
Questionnaire of project
References
EXECUTIVE SUMMARY
The report is the summation of the project work carried on during the course of Masters’
Project at Arvind Brands Limited over a period of three and half and months from 18 th
January 2007 to 30th of April, 2007.
The project undertaken was “Merchandising stint with the brand, Visual
Merchandise insight for stores in Bangalore and competitive market analysis along
with the market research to understand consumer psychographics”.
The objective of this project was to study the overall trends of Arrow and its competitors
across all three fields i.e merchandising, retailing and consumers psychographics. I
started with brand merchandising stint which was connected to the retail floor in the form
of competitive analysis and in site into Visual Merchandise trends ending in interaction
with the end consumers in the form of market research. The project was exciting since it
began with the nascent stage of merchandising i.e sampling of Arrow casual Trousers.
This stage exposed me to the basic problems involved in sampling along with a great deal
of product knowledge.
The second stage was even more exciting since it began with understanding the market
and market forces. The motive behind this stage was- To understand different Brands’
offering and the Visual Merchandise schemes followed by competitors of the brand to
initiate sales. For this purpose I conducted a competitive market analysis of all major
competitor brands of Arrow in all three categories i.e Shirts , Trousers and Knits on
various parameters such as price points, styles ,designs .This stage also includes my
Visual merchandising stint with all the major competitors of the brand Arrow to
understand their schemes and themes. It also included calculating some of the important
retail concepts like The carpet area used by them and the quantity of merchandise
displayed in the existing area and hence calculated Co-efficient of M.D.Q for all brands.
The third and final stage consisted of my direct interaction with the consumers through a
Market Research study in Bangalore (Mall Intercept) for understanding the Consumer
Psychographics on four P’s of Marketing. I had covered each market cluster of
Bangalore extensively and also went through all major secondary sources like journals,
reports, internet to understand the trend, style and designs that shall do well in the coming
season.
The Merchandising team mainly works for two Seasons i.e Spring Summer and Fall
Winter. One of my greatest achievements was coordination and order booking in Road
show for fall winter-07 for Arrow Sports as well as Urban category. For more practical
exposure, I also coordinated and worked for the Cross over campaign by dressing the in
store and Mannequins exactly in the cross over look. I also worked on concepts like
instore color blocking to increase effectiveness of merchandise presentation.
We should always keep a track on what our competitors are doing so as to be a cut above
the rest and hence to access what will sell in the next season. I also studied the existing
brands offerings, their mode of operation and retail scenario to understand the categories.
Again apart from my project, I had a good exposure towards learning the whole process
flow of merchandising department and functions of merchandiser that has enabled me to
learn the major chunk of problems and intricacies involved at all the levels of sourcing ,
procurement to final stage of merchandising. The meetings and interaction with buyers
as well as vendors during my project gave me a fair idea of “How to go about Sourcing
as well as Production for making a best deal”.
Keeping in view all the points mentioned above along with insights from the survey;
research, styles, price points, colors, fabrics and vendors, my findings and
recommendation are suggested in the end. In a nutshell, this project gave me an
opportunity to experience the actual buyer-vendor interaction, market trends and overall
understanding the Functioning of power brand like ARROW.
COMPANY PROFILE
The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931.
With the best of technology and business acumen, Arvind has become a true Indian
multinational, having chosen to invest strategically, where demand has been high and
quality required has been superlative. Today, The Arvind Mills Limited is the flagship
company of Rs.20 billion (US$ 600 million) Lalbhai Group.
Arvind Mills has set the pace for changing global customer demands for textiles and has
focused its attention on select core products. Such a focus has enabled the company to
play a dominant role in the global textile arena. With its presence across the textile value
chain, the company endeavors to be a one-stop shop for leading garment brands.
Forevision and Technology has brought Arvind to be one of the top three producers of
Denim in the world, and on its way becoming the Global Textile Conglomerate. Arvind is
already making its presence felt in Shirting’s, Knits and Khakhis fabrics apart from being
all set to create ripples in the ready to wear Garments world over.
Others:
• Atul limited
• Amol dicalite limited
• Anup engineering limited
The Arvind Mills was set up with the pioneering effort of the Lalbhai brothers in 1931.
With the best of technology and business acumen, Arvind has become a true Indian
multinational, having chosen to invest strategically, where demand has been high and
quality required has been superlative. Today, The Arvind Mills Limited is the flagship
company of Rs.20 billion (US$ 500 million) Lalbhai Group.
Arvind Mills has set the pace for changing global customer demands for textiles and has
focused its attention on select core products. Such a focus has enabled the company to
play a dominant role in the global textile arena. With its presence across the textile value
chain, the company endeavors to be a one-stop shop for leading garment brands.
Forevision and Technology has brought Arvind to be one of the top three producers of
Denim in the world, and on its way becoming the Global Textile Conglomerate. Arvind is
already making its presence felt in Shirting’s, Knits and Khakis fabrics apart from being
all set to create ripples in the ready to wear Garments world over.
The company is a subsidiary of The Arvind Mills Limited. The principal business
segments of the company include manufacturing and marketing of Voiles fabrics,
Bottomweight fabric (khakis) and Yarn. The company operates through its divisions viz:
Arvind Intex (with both ring and open end yarn manufacturing under one roof), Arvind
Cotspin (manufacturing 100% cotton yarn and double yarn in a wide range of counts and
varieties) and Ankur Textiles (manufacturing of Voiles)
Arvind Brands, a group company, manages various brands owned by Arvind. These
include Flying Machine, Newport and Ruf & Tuf in Jeans and Excalibur in Shirts.
This company services entire Domestic market in India apart from exports in the
neighboring countries.
ATUL LIMITED
The Rs.600 crore Atul Products, set up in 1947, is one of the Asia's largest and greenest
chemical complexes. The company has grown to become India's largest dyestuffs
manufacturer, making and marketing over 250 varieties of chemical and intermediates,
from basic commodity chemicals to specialty intermediate required for the agrochemical,
defense, dyestuff, leather, paper, pharmaceutical and textile industries. Atul exports to
more than 50 countries.
A group company with the business ranging from Textile clothing to Filter Aids to Perlite
Products.
Arvind Brands Limited is a member of the Lalbhai Group which owns Arvind Mills
Limited. Arvind Mills today is a US$ 600 million company and is the world’ second
largest denim manufacturer. The group was founded in 1931 and it’s core business is
textiles and apparel.
Arvind Brands Limited manufactures, brands, markets, distributes and retails garments in
India, Nepal, Bangladesh, Sri Lanka and the Middle East. It has a portfolio of eight
brands which includes four international brands.
Premium Brand
Arrow : Under license from Phillipe Van Heusan, USA
The above brand caters to the premium end of the market.
Mass Brands
Besides the above Arvind also has a portfolio of home grown national brands, which
cater to the Mass market. These include Newport university, Flying Machine, Ruf n Tuf,
Bay Island and Excalibur. These brands dominate their segments in the Indian market.
Company Financials:
Arvind Brands is one of the largest apparel manufacturing and marketing company in
India with overall business size of USD 100 million at whole sale prices.
Company Details
Arvind Brands Ltd. is one of the fastest growing apparel companies in India. The Brand
portfolio is diverse and aimed at offering the best value for each customer segment. The
licensed brands, Arrow is the market leader in the premium Men’s formal Wear .
Distribution
Customized distribution models for different brands are one of the key strength at Arvind.
The various modes of distribution at Arvind are :
Arvind has the best national and international designers .its design team includes:
Renato Grande , a Milan based designer for Arrow. He has worked previously in Versace
and Marlborough Classics.
ABOUT ARROW
A Brief profile
The epitome of the brand is heritage and craftsmanship. The parent company of the brand
namely Cluett Peabody & Co., USA, began operations in the US in 1851. Till 1920
Arrow was a brand known for manufacturing collars. It was only in 1920 when a
man named C.R. Palmer came up with an idea to make Arrow shirts. Since then
Arrow is known for heritage a master craftsmanship. In 1993 Arrow was launched in
India and the first exclusive store was opened at Commercial Street, Bangalore. In
2000 Phillips Van Heusen got the license for the brand in the US and in 2004 history
was made for Philips Van Heusen when they got the world rights to the Arrow brand.
Arrow is expanding its exclusive retail network. Arrow now has 64 outlets across India. It
is also present in 30 retail chains including Life Style, Shoppers’ Stop and Pyramid
among others. Arrow, which is in the process of adding more showrooms, is focusing on
a new format for stores. With a strong channel wise distribution network ,its really doing
a great business and catering to Metropolitan ,Urban as well as Suburban customers.
ARROW AT ARVIND BRANDS
The brands’ president is Mr. J Suresh who is supported by Business Head by Mr. Janak
Dave. The Brand has a dedicated Product team , Marketing Team , Retail Team ,visual
merchandiser and overall a Famous Designer from Italy Mr. Renato Grande whose
Precious inputs and design theme keeps the brand offering of each season at par with
international trends in fashion.
The customer connect takes place through five channels – Exclusive brand stores
,department stores, multi brand outlets ,exports and institutional sales. Each of these is
headed by channel heads. The business and channel heads supported by specialist teams –
supply chain, production, sales, finance, information technology and human resources
.Each of these teams is headed by senior professionals.
Organizational hierarchy:
Business Head
ARROWs’ OFFERINGS
Arrow is lifestyle brand in India catering to the complete wardrobe solution of male as
well as to some extent to females. The brand offerings include Shirts, Trousers, Knits ,
Suits , Accessories as well as innerwear.
o 1851
o President
o Premium
o Classic
o Sports
o Urban
Arrow shirts:
Arrow was previously known mainly for its shirts. The main characteristics of these shirts
are: They are 100% cotton and are free from any blends.
1851: The Ultra premium category
This category consists of very fine imported fabric from Italy and Austria of counts
2/100’s and 2/120’s. Some of the important features of these shirts are:
1. Inside Taping is used to give a neat look to side seams.
2. EPIC threads are used for construction.
3. MOP buttons are used.
4. There is no puckering.
These shirts are priced from Rs 2595 to Rs 4995.
The president collection
This category also consists of very fine imported fabric from Austria and 70 % of this
collection is of counts 2/100’s and 2/120’s.These shirts are priced from Rs 2095 to Rs
4995.
Primary Objective:
1. Product knowledge exposure.
• To understand the complex process of Brand Merchandising
• To understand intricacies involved in different levels of merchandising be it
sampling, order booking etc..
2. Visual Merchandising Stint
• To understand the visual merchandising schemes followed by all
competitor brands of Arrow and to suggest the back logs of Arrow VM
schemes.
• To find the carpet area / Minimum Display Quantity of competitors of brand
Arrow and the trousers to shirts ratio that they use to stack in Key Accounts.
3. Competitor’s analysis of market for Arrow :
• Number of competitor’s in market
• Range (number of options) of competitor and MRP of competitors
• Competitor’s Product analysis and details (Specific features ,
characteristics and retail operations and formats through which they are
marketed.)
4. To Understand Consumer Psychographics of an Arrow Customers
• Competitor’s customer analysis (What characteristics and features are
attracting them towards competitors product)
Sub Objective:
(1)
-To understanding the consumer buying behavior and preferences with respect to
purchase of Merchandise.
-Identifying the level of brand consciousness among the consumers and the popular
brands.
-Identifying the popular items /styles /color that consumers performs to purchase as also
the preferred price range of these lines.
(2)
-To study the merchandise mix of the probable competitors of the upcoming and existing.
-Understand the assortment breadth /depth of the Apparel categories in terms of major
items, styles, colors, size, and brand stocked as also the pricing of each item and gaps if
any in the merchandising assortment of the stores.
(3.)
Analyzing the weakness of the given categories relating to market conditions and
consumer’s perception.
(4.)
Studying the opportunities Arrow can avail of, in the near future.i.e. addition
/subtraction/expansion of the existing categories/new categories of accessories.
INDAIN APPAREL RETAIL OVERVIEW
This IMAGES-KSA Technopak study values the current Indian Apparel market at
Rs.88,340 crore, which is an overall growth of 13.6 percent over 2004 and is significantly
higher than the 12.1 percent growth achieved during 2004 when the market was valued at
Rs.77,740 crore. Continuing the previous year's trend, the highest growth in volume (8%)
as well as value (21%) terms was observed in the school uniform segment, which shows
immense potential for branded players. The women's segment has also grown at a high
pace, volumes (5.4%) and value (14.9%) both growing at a higher rate than the previous
year.
Similar to what we witnessed in 2004, the market has yet again experienced tremendous
value addition during 2005 - an increase of just 4.7 percent in volume has yielded 13.6
percent growth in revenue. This only goes further to demonstrate that the organised
branded segment is fast increasing its share in the apparel market.
The Study considers the market as comprising five broad segments – menswear,
womenswear, unisex apparel, kidswear and uniforms. Products in the unisex segment
cater to all three major apparel segments in the ratio of 6:3:1 for men's, women's and kids'
apparel respectively. The segment for Uniforms is considered separately because it
comprises of both kids' size apparel as well as general sizing in men's and women's
apparel for those customers who are above 14 years of age.
Source : Images/KSA Yearbook 2006, March 2006
The Study notes a steady decline in market share of men's segment, from 38.1 percent in
2002 to 36.9 percent in 2005 and a similar decline in the market share of kid's segment
from 16.2 percent in 2002 to 14.8 percent in 2005. This decline was more pronounced in
2005 as a result of a sharp increase in the market share of womenswear (from 31.7% in
2004 to 32.1% in 2005) and uniforms (from 8.2% to 8.7%).
Bangalore market has been the most significant retail destination along with Mumbai or
Delhi for the fashion savvy customers. It has been a very catchy place for visitors as
well ,right from the pre-independence days. The MG road and brigade road has good
showrooms and departmental stores.
The target mix of the Bangalore has been very versatile, individualistic and affluent in
terms of shopping patterns. This has been supported by the warm and vibrant nature of
Bangalorians,.
All the existing Malls and stores are competing hard to constantly deliver a very high
customer service level as it has become success mantra for retailing. Every brand/store
brand has employed their best resources affluently to woo the customer to their stores.
Major competitors for Arrow are LOUIS PHILLIP, VAN HEUSAN, COLOR PLUS,
ALLEN SOLLY, INDIAN TERRAIN, PARK AVENUE. The customer here is upwardly
mobile with an international exposure, ranging from 18 to 65 years of age group. They
are mostly working in all good corporate circles with consistent and increasing affluent
incomes
MG and Brigade road has been known as a very good hangout place where one can eat
(good restaurants and fast food chains like Pizza Hut, Domino’s, Mac Donald’s etc.),
watch movies and of course shop for all the national and international brands/stores.So it
can be said that it is a hip-hop as well as family hang around and shopping destination.
MERCHANDISING TEAM
The Merchandising department is a organized branch of Arrow which is working
continuously in both effective and efficient manner as a team for delivering both volume
and value. The chief aim of this department is to maximize profitability for Brand as well
as Arvind Brands Limited by catering quality and in vogue range of Merchandise to its
customers. The range of Merchandise offered for a season by them is decided upon
considering the important facts like colours and designs forecast ,customer’s preferibility
and their predicted demand(Based on past sales record). Since this team has to deal with
both highly changing fashion element and dynamic market condition together, so Arrow
has hired Mr. Renato Grande , an international designer from Italy whose Design and
colors input continuously enhances, upgrades and keeps on changing the basic elements
of Merchandise Mix and also keeps the offering at par with latest trend sin international
fashion.. They basically work for two seasons i.e SPRING SUMMER and FALL
WINTER. Again these two seasons are further bifurcated into smaller time periods for
sourcing, order compilation, production, delivery and sales. This is done mainly to
maintain the freshness of Merchandise.
Merchandising stint
along with the
Competitive Market
Analysis of existing
merchandise portfolio
of ARROW
Process flow OF “MERCHANDISE
FORECASTING TO RANGE PLAN” in Arvind
Brands Limited
Stage 2. Business plan will have - channel wise break up for EBO’S, EOP’S and MBO’S
and month wise break up is prepared. This planner is worked out depending upon
previous year sales figure and future estimated consumption.
Stage 3.Now this business plan is approved by all channel heads of Arvind Brands.
Stage 4.After this Open To Buy or OTB is prepared by different brand team for different
brands .
Stage 5.Once OTB and estimated quantity is received by merchandiser ,then depending
upon the requirement and forecast , merchandiser will make the line plan(Taking care of
various factors such as minimums).
Stage 6. As per the line plan ,the merchandiser procures/ sources out samples.
Stage 7.Once the samples are in-house ,they are taken for approval and selection by team
of concerned merchandiser.
Stage 8.After samples get final approval, final range plan is prepared by merchandiser.
Road shows:
Purpose:
To optimize and maximize the booking prior to a season for each of the brands.
Stage 1.The merchandiser communicates with the vendor for manufacturing samples of
merchandise, depending upon the forecast styles and designs. After this Sampling is done
where sample is received by Merchandiser for selection as well as sorting.
Stage 3. After preparation of order plan, Performa invoice is obtained from vendor. The
Performa invoice or PI contains information such as cost, tax, description of product.
Stage 4. Performa invoice is approved by respective brand team as well as finance team.
Copy 1.Its kept by merchandiser for future reference as well as for maintaining account
which goes into Merchandising files.
Copy 3.Third copy is sent to vendor for his reference- this forms the formal order for the
vendor.
Stage 9. Vendor sends the finished good to Arvind Logistics Center ,where POD is
signed and sent to vendor.
Stage 10.Once the goods are received at the warehouse or Arvind Logistics Center, then
they are scanned and stacked and this whole process is called product inwarding.
Stage 11. After goods are received by Arvind Logistics Center, Goods Received
Notification or GRN is issued by Arvind Logistics Center.
Stage 12. During the bookings, the item code wise order is being taken at Arvind
Logistics Center
Stage 13.The goods are dispatched from the Arvind Logistics Center party wise
according to the orders punched.
There are basically two types of Stock maintained at Arvind Logistics Center:
• Free Stock : In this type of stock, the goods are kept in reserve bin from
where it is allotted to different channels like EBO’S,EOP’S ,MBO’S etc.
depending upon their demand as well as order capacity.
• Party Stock : In this type, the goods are sent out directly to the party / buyer
as per the booking directly from ALC
Design Compilation:
The colour and fabrics are squared upon according to the season. The designs and styles
are made keeping in mind the forecast, seasons’ colours, availability of fabrics etc. This
is done with the help of designers’ feedback, retailers’ and distributors’ feedback and
Product as well as retail merchandiser feedback. This is also influenced by the designs
show cased in road shows held in other countries like Italy, France and other fashion
hubs.
Design Development:
This process involves selection of designs by product merchandiser as well as design
team out of the total design compiled. This involves creation as well as manufacturing of
3” * 3” deskloom swatches consisting of desirable designs.
Sampling:
Once the desklooms are approved, then they are sent for yardages. After this, they are
sent for manufacturing of actual samples in prototype product form. Once the samples
are, then they are taken up as a part of the range plan.
Order Compilation:
Approved samples of fabric are showcased in Road Shows for prior booking of fabric.
Once the final order quantity for each fabric is known after booking, then some of the
designs are dropped and the remaining designs are carried forward for bulk production in
the shape of the final plan which includes the final qty, MRP etc. This involves 5 days of
rigorous work. The whole plan is coordinated with the help of Product Merchandiser and
Retail Planner.
Fabric order:
This is done to source fabric at competitive prices from vendors or suppliers. For this
Fabric in house date is critical. The lead time for this process is 90 days. After 60 days
final cut plan is prepared and the cut plan is processed simultaneously in last 30 days.
Cutting :-
Process:-
1. Spreading – spreading the fabric on the cutting table
2. Laying – lay is a sheet of marker on the spread pile of fabric
3. Cutting – the process of cutting the fabric using markers and guides
4. Bundling & Numbering – the labeling of each & every cut piece
5. Inspection – 100% checking of the cut pieces
This takes place after prioritizing what needs to be put on the line first and what is to
follow. This means that certain styles are put on the lines before the once that are to be
delivered later. Also along with this, the vacancy of the lines is taken into consideration.
Fabric is spreaded on the cutting tables according to the order, Color & size ratio that has
been prepared on the markers.
Once the spreading is done and marker inspection is completed, fabric is ready for
cutting, the whole process is done in following steps:-
- All the layers are fixed firmly with the help of clamps to prevent any
movement of layers while cutting.
- Then with the use of straight knife hand cutters, patterns are cut exactly on the
line printed on the marker.
- In the mean while quality inspection goes on.
- Cutting is done by band knife cutter for the parts (it is a stationery blade),
straight cutter which is held in hands by the operators, and an end cutter for
the spreading of fabric which is operated by the cutter.
- Metal chain gloves are worn by the cutters for their safety.
- The bundles after cutting are then individually numbered
Bundling: After cutting is over, bundles are made as per their sizes, a particular code is
given to particular panel to prevent the mixing. Numbering is also done after bundling
For a particular panel of a particular layer to give a unique identification to it) so that
each piece of same pattern / size is sewed together from the same lot of fabric to avoid
alteration and rejections.
- Once the cutting is over, an indent is issued to the store for procurement of the
exact number of trims / threads that are required for the particular lot.
- Helpers will collect the materials and give it to the lines.
- After every thing has been organized, all the ready material is then fed onto
the respective lines for production.
• Preparation of cut – plan is done by the supply chain department and issued to
centralized planning department at AFL, which is then send to all the departments
in the factory.
• This is done only after final quantities and styles etc are finalized.
• QA department does fabric / trim testing.
• Marker making is done by the CAD department after receiving the cut-plan by the
centralized planning and the quality report by the QA department.
• Size set of each style are made and approval is taken before the bulk production
• Trims and fabric are issued from the stores as per the cut-plan (quantity of pieces
to be cut).
• Once the marker sets are ready, fabric and trims are issued, the production process
can begin.
Washing of Garments:
Every style has a different wash given to get the exact shade required. Incase of denims, 4
basic washes are there. Dark stone, mid stone, light stones, Super stone.
Other then these basic washes there fashion treatments given to denims are as follows:
Dry Process:
Whiskering: This is done on a tonello machine (horizontal or vertical). The marks are
made with chalks and then sand paper is brushed against these marks to remove the
indigo. Here the effect looks like whiskers. On an average 3000 pcs can be whiskered in
24 hours. ( 3 shifts)
Hand brushing/ Scrubbing: This is done to give the faded look. Sand paper or Emry
sheets are used Approx. 6000 pcs can be brushed in 24 hours. This is also done on
Tonello machines. Agagin the sand paper heps remove indigo friom the denims but here
some chemicals are used like potassium per magnate.
PPT Spraying/ Bleach Spraying/ Pigment Spraying: With the help of a sprayer
potassium per magnet and is sprayed on the denim and then washing is done. This is done
on a tonello machine. This is basically done to remove the indigo from the denim. More
the indigo needs to be removed, more will be the concentration of the spray. Sand
blasting & spraying both create a similar impact. The bleaching agent gives a whitish
effect. The capacity is 5000 pcs per day.
PPT Brushing: Here instead of spray, brush is used. The capacity is 2500 pcs per day.
Pigment Spraying: Here pigment dye is used incase the style has a particular color.
For eg. Green pigment is usually sprayed on blue denims to give the rustic look.
Curing: Here the curing is used for softening of the fabric. Then the fabric is
neutralized.
Pinching: This is to give the distress look. First the garment is folded & then with the
help of the tagging gun, the garment is pinched. Then it is sent for washing. The plastic
thread is removed after washing. Here because of the pinch, the folded patch remains in
the original color i.e. the indigo remains & thus the effect appears.
Grinding: The grinding machine is used to give the bit torn & distress look. This is done
usually after washing so the garment may not get damaged. The grinding basically gives
the worn out look. It is usually done on the back pocket & near the thigh & the knee.
Sand Blasting: Alternate to brushing is sand blasting. For higher oz fabric, usually sand
blasting is required to remove the indigo. Here stone powder is used & blasted against the
jeans. The production capacity is much lesser than brushing. The garment is blasted with
sand granules ejected by air jets. In an hour only 5-10 garments can be sand blasted while
25-30 pcs can be hand brushed.
Over Dyeing/ Tinting: Over dyeing takes approximately 7 to 10 hours. Over dyeing is
changing the color of the garment to the desired color. Tinting can give a worn out look.
This process takes 10 to 15 mins.
Acid wash – chemical (titanium chloride & sodium hypochloride) + thermacol balls are
put in machine for 10-15min.
Wet Processes:
DS wash – wet the garment with water & wetting agents and lubricants and anti-back
staining agents are put in the solution to avoid the color deposited on the back side of
denim.
Time – 20min, tem – 40-60 degree.
Washing Process:
Desizing – This process is to remove starch. Hot water & desizing agent is used for this
process. Usually this process takes half hour. Greater the oz of the fabric more the time
the garment is desized. The garment is softened with the help of the wetting agent. The
lubrication helps to smoothen the fabric & the anti-waxing to avoid transfer of indigo on
to the lining.
Enzyme Wash: This is given to get the puckering effect on the garment. This wash lasts
for 1 or 1 ½ hour depending upon the fabric. Here pumice stones are used to give this
effect & make the enzyme softer. These stones are special stones imported from Turkey.
Soda soaping: Here soda with water is used to take out the extra indigo color. It is to
neutralize the enzymes & kill the proteins which can spoil the garment. This process lasts
for 20 to 30 mins. This is a mixture of soda & anti wax staining agent. Here the water
temperature is 1:5.
Acid Wash: This process is to neutralize the soda(alkaline). This process takes 5 mins.
Here the PH level is reduced to 4.5
Water Wash: This neutralization is to reduce the PH level down (potassium Per
magnate of hydrogen). This process takes 5 mins.
Till here all the processes are compulsory for denims. The outcome of the garment is D/S
wash. Bleaching agent (Sodium Chloride) & softening agent (Silicon) is added to get the
color of the wash. The bleach is nuterilized for 10 minutes to 45 minutes dpending upon
the washes. Thereafter the garments are rinsed & put in a hydro extractor to queeze the
water & the in tumble drying machine for drying.
The maximum time taken for washing would be one week. As on today this department
has 10 front loading machines & 4 side loading machines.
Non denims Special Washes: wrinkle free wash: Firstly the garment is softened &
then resin is applied. Then the garment is tumble dried. A legger or a topper is used to dry
the garment completely & then cured. The take place at 180 degrees in a oven. This
process takes approx. 15 minutes.
Competitive Market
Analysis of Brand
Arrow
After studying the data collected from market and analyzing it, some key trends are
identified through Brand Vs Minimum and Maximum Merchandise Price Point
Graph for Arrow and its competitors which are shown below:
I did competitive research for all three categories i.e Shirts, Trousers and Knits and this
analysis for two categories i.e Shirts and knits . The table and the analysis graphs are
shown below.
Shirts’ Analysis:
For analysis of the data collected, I have segregated the shirts on the basis of the major
categories and hence I have analysed shirts category wise:
Competitive
Analysis for Knits
Competitive
Analysis for
Trousers
Visual Merchandise
insight along with
the M.D.Q.
Coefficient
calculation for Arrow
and its competitors.
On shelf merchandise is the merchandise the shopper actually touches, tries on,
examines, reads, understands, and hopefully buys. Therefore on-shelf merchandising
must not only present the merchandise attractively; it must display the merchandise in a
manner that is easy to understand and accessible to the shopper. Further, it must be
reasonably easy to maintain, with customers themselves able to replace merchandise so it
is equally appealing to the next shopper. It must not be so overwhelming that the
customer is afraid to touch the merchandise.
STORE DESIGN
Exterior design STORE PLANNING
Ambience (Lighting) Fixture selection
(Visual merchandising) Merchandise
Presentation
POS signage
STORE IMAGE: It is the over all perception the consumer has of the store’s
environment.
About Visual
Merchandising
Visual merchandising is all about
persuasion through presentation, which
puts the merchandise in focus and in perspective too. It educates customers, creates desire
and finally augments the selling process.
Visual merchandisers decide how a store will present its merchandise. They determine if
mannequins should be used, where they should be placed, what detailing and accessories
should be used, what signage and lighting would best highlight a product, and how store
design and fixtures factor into the overall presentation. All of these elements are based on
the psychology of effectively selling a specific product to a specific customer. Visual
merchandisers must have a good eye and fashion sense, combined with the ability to
work in three dimensions, build props, and design department promotions.
The activity of paying attention to each brand in every product category is known as
micro merchandising.
Visual Merchandising is a practice that supports retailers in presenting their retail space
in the best possible way to maximise sales.
Visual Merchandising does not stop at great looking window displays, it is more than
this. From your in-store layout and product merchandising, to housekeeping, lighting,
music, price tickets, posters and graphics, window display and props, right through to the
colour you paint your walls and the fixtures you sell from, all of these elements and how
you visually organise these elements and how often you rotate these elements within your
retail space is Visual Merchandising.
Storefront – the store’s sign, marquee, outdoor lighting, banners, planters, awnings,
windows, and the building itself
Store Layout – the way the store’s floor space is used to promote sales and provide
customer service
Interior Displays – used to present merchandise, provide their client base with
product information, reinforce advertising, create a favorable store image, and attract
customers
I have mapped almost all major competitors of Arrow present in Bangalore on these
parameters in my report. The excel sheets in this regard is attached with this report.
MERCHANDISE PRESENTATION
PLANNING
Retailers use a large array of fixtures and hardware. This may seem to present an endless
variety of ways to merchandise product, but there are essentially six methods of
merchandise presentation:
1. Shelving
The majority of merchandise is placed on shelves that are inserted into gondolas
or wall systems. Shelving is flexible, easy-to-maintain merchandise presentation
method.
Hanging
Apparel on hangars can be hung from softlines
fixtures, such as round racks or four-way racks or
from bars installed on gondolas or wall systems.
2. Pegging
Small merchandise can be hung from peg hooks, which are small rods inserted
into gondolas or wall systems. Used in both softlines and hardlines, pegging gives
a neat, orderly appearance, but can be labor intensive to display and maintain.
3. Folding
Higher-margin or large, unwieldy softline merchandise can be folded and then
stacked into shelves or placed on tables. This can crate a high-fashion image, such
as when bath towels are taken off peg hooks and neatly folded and stacked high
on the wall.
4. Stacking
Large hardline merchandise can be stacked on shelves, the base decks of
gondolas, or “flats”, which are platforms placed directly on the floor. Stacking is
easily maintained and gives an image of high volume and low price.
5. Dumping
Large quantities of small merchandise can be dumped in bins or baskets inserted
into gondolas or wall systems. This highly effective promotional method can be
used in softlines (socks, wash cloths) or hardlines (batteries, grocery products,
candy) and creates high volume low-cost image.
The method of merchandise presentation can have a dynamic impact on space and space
productivity different merchandise presentation methods have been shown to strongly
influence buying habits and stimulate consumers to purchase more. There is a certain
“psychology of merchandise presentation”, which must be carefully considered in
developing merchandise presentation schemes. Less than 20 percent of store shoppers
make an impulse (unplanned) purchase, and these purchases are made by only 60 percent
of shoppers who actually entered the store with intent to make a specific purchase. Thus,
40 percent of the shoppers who enter a store to make a purchase are “wasted” because of
a failure by the store to use merchandise presentation to generate additional purchases.
This is why department store design incorporates a gauntlet of goodies to stimulate
impulse buys. For example, a cosmetic, usually the store’s most profitable department, is
always near the main entrance. Typically, the department is leased to cosmetic companies
who use their own salespeople to sell perfume, lipstick, and eye shadow. The other high
impulse items (e.g. hosiery, jewelry, handbags, and shoes) are usually nearby while the
“demand” products (e.g. furniture) are on upper floors. After all, these stores would be
unprofitable if they fail to induce a significant amount of impulse buying.
Many consumers believe the most innovations of modern retailing began in the United
States. This, however, is not the case. The first retail chain can be traced back to 1672 in
Japan. Today, the House of Mitsui is the sixth largest company in Fortune Magazine’s
Global 500. The chapter’s Global Retailing box traces the development of the department
store almost 40 years before Sears entered the mail-order business and more than 60
years before Sears became a chain store operator.
Plan-o-grams
A plan-o-gram is nothing more than a picture of how various fixtures, shelves and walls
will present the merchandise. It is a relatively simple concept, but a very powerful one
because it takes into consideration what is known about the psychology of consumer
buying habits.
Creating a plan-o-gram forces the retailer to carefully evaluate which products go where
and how many will be displayed. By forcing the store to plan the presentation of each
department, the store will become a more successful and proactive retailer.
Some of the Plan O gram examples from Bangalore stores are shown below:
About M.D.Q.:
M.D.Q stands for Minimum Display Quantity. M.D.Q is the minimum amount of total
S.K.U.s’ displayed at any point of time on the carpet area. The ideal M.D.Q Co-efficient
is 2.5. It means by multiplying this coefficient with carpet area, we can get the ideal no.
of total S.K.U’s of merchandise to be displayed.
Hence,
(1) Carpet area of the store : The amount of carpet area available
for the store affects the M.D.Q. very much. The more the carpet area, the more
can be the quantity of merchandise displayed in any store.
RESEARCH METHODOLOGY
Marketing Research defined: Marketing research is the function which links the
consumer, and public to the marketer through information-information used to identify
and define marketing opportunity and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing as a
process. Marketing Research specifies the information required to address these issues;
designs the method for collecting information; manages and implements the data
collection process; analyze the results; and communicates the findings and their
implications.
Statement of problem:
Conventional traditional stores and customers requires more fashion values and benefits
in Less prices .The idea behind this research is to find the customers preference
and choices & hence understanding the consumer Psychographics of target
audience of Arrow Brand in the market.
Research Design is a plan for addressing the research objective or hypothesis. In essence,
the Researcher develops a structure or framework to answer a specific research
problem/opportunity. There is no single best Research Design instead; different designs
offer an array of choices, each with advantages and disadvantages.
With regard to the given project “To understand the consumer Psychographics of
target audience of Arror”, the researcher has chosen the following Design:
Descriptive Research:
The Researchers chose to collect the secondary data required to build up the foundation
of this project from the following secondary resources:
1. Company documents
2. Information gathered from various mediums like Internet, Magazines, Retail
Managers and Sales Staff.
1. Survey
2. Observation
Surveys: Survey Research involved the Researcher who interacted with the
respondents to obtain facts about opinions and attitude. A questionnaire is being
used to ensure an orderly structured approach to data gathering .The survey took
place in and out of the Stores.
Observations: This involves monitoring the respondent’s action without direct
interaction. The competitor analyses and market scanning is an observational
study
Advantages Descriptions
SAMPLING
Sample: A Sample is a subset of population that represents entire group. Information is
obtained from or about a Sample and used to make estimates about various
characteristics of total population.
1. Probability
2. Non-Probability.
Note: The Researcher on the part has chosen Non-Probability Sampling .The reason
being the nature of the given project and the feasibility of such Sampling procedures.
Convenience Sampling: The Researcher chose the Stores and Market place to
intercept potential respondents. Error might occur in the form of members of the
population who are infrequent or non-user of the location.
The Sampling method chosen for the consumer was Non-Probability Convenience
Sampling. The choice of Sample size is being made on subjective basis. The Sample size
taken is 150 for customers (150 from Bangalore cluster) and is being determined by the
insight, judgment, experience and financial resources of Researchers.
• Arrow cluster: For this cluster, the sample size was 150(from Bangalore) and they
were interviewed through Mall intercept and Store intercept method.
Non- probability convenience sampling of the customers coming to the Stores means that
without any fixed criterion in the mind the entire sample is being picked up which is
supposed to be the representative of the whole, however one point is being kept in mind
while getting the questionnaires filled.
RESEARCH PROCESS
Understanding Background of the Problem
The questionnaire is studied minutely and with the help of pivot table and filter , the
responses ,trends and the customers acts were analysed. The analysis was done with the
help of SPSS as well as MS-EXCEL.The questionnaire started with the following
entries for knowing the demographic profile of respondent. The entries were:
S.NO.:
NAME
EMAIL(OPTIONAL)
ANNUAL INCOME
AGE
OCCUPATION
SEX
When the data was segregated and analysed , then following findings and output was
obtained. The data was filtered and some trends were noticed. The findings from the
questionnaire have been explained in next coming pages.
Studying the data and analyzing the trends and identifying the customers
perception for Arrow:
BRAND RECALL IN ARROW CUSTOMERS
When the analysis of market research was done to know about customers preferred brand
for different categories of shirts / trousers in existing in market, then following output
was obtained. This question was put in questionnaire for knowing customer’s tendency to
recall a brand for knowing customer’s preference as well as awareness about a brand in a
given category of shirts / trousers.
For this I prepared two categories of questions. The first category contained question
regarding brand preference and the 2nd question was regarding actual presence of brand in
the wardrobe. This analytical output of this category research will tell about the perceived
competitors. The output obtained is as follows:
Project
Outcomes
MY PROJECT FINDINGS AND LEARNINGS
My summer internship with Arvind Brands limited and in turn with Merchandising Team
was a great experience and an opportunity to expose myself to the whole PROCESS
FLOW of MERCHANDISING. My continuous meetings with BUYERS as well as
VENDORS helped me in understanding the complexities and intricacies involved in
Merchandising and gave me fair idea of BUYER-VENDOR RELATIONSHIP. Apart
from it my project was exciting since it begun with understanding the market and market
forces and with carrying out an analytical survey of competitor’s range of core
merchandise available in market on various parameters such as Price Point, Quality etc.
Again apart from my project, in merchandising department, I learned a great deal about
functions of merchandiser at all levels of sourcing, procurement to final stage of
merchandising. The project gave me a fair idea of “How to go about Sourcing as well as
Production for making a best deal”. Here I also worked on SAP.
During my project I came across lots of interesting things and arrived at conclusions
which was beneficial for my project and in turn can/may help institution. Some of my
important findings about various categories of accessory during the project are explained
below category wise:
Observations
&
Suggestions
Visual Merchandise observations for
Arrow
My observations for the VM Display for Arrow stores across Bangalore are mentioned
below:
1. Vacant shelf space :
The shelf space of ARROW (sports) Indira Nagar
store was vacant which is giving a very bad look
to over all Merchandise presentation.
3. No window display of
Accessories:
There is no display of accessories in the main
display window Brigade Road showroom. Any
body who has no idea about “Arrow as a lifestyle
brand” will never come to know that Arrow is into
accessories also.
ARROW (Brigade Road Store)
4. Suggestive Presentation
missing:
Suggestive merchandise presentation was missing through out
the store. Suggestive merchandise not only suggests customer
for colour combinations, designs combination and top &
bottoms combination but also encourages impulse purchases of
main as well as complimentary garments i.e accessories.
Same design
merchandise
stacked in two
different racks.
6. Attention to detailing:
The stores require greater attention to minutes detailing. Like ironing the hung Products
and keeping them wrinkle free.
7. Presentation in table
glass box:
The products displayed in the glass box need more
detailed presentation rather than displaying in
normal way. E.g a velvet base can be used as base to
show merchandise in glass box to give a “formal” or
“class” merchandise.
8. Dressing of
Mannequins :
The mannequins needs to be dressed neatly in Brigade
Road store. The clothes which were put on mannequins in
Brigade Road store were not ironed properly
which was giving a bad look.
9. More attention to
Fixtures and
Furnitures:
More attention is required on present status of furnitures and fixtures. There were
scratches on table presentation of Brigade Road store.
STORE
ENTRANCE
7. “Stack it high and watch it fly”: Display in mass best selling products
prior to the anticipated sales event. When merchandising quantity avoid overloading
a fixture with product and ensure stacked items are stable. The customer should
never have to struggle to remove an item from a jammed shelf/rack or be at risk of
injury.
• Increased sales
It increases sales by ensuring ranges to be presented in their best possible
position/adjacencies.
• Better communications
The two-way nature of the VM means that not only can head office provide clear
detailed instructions to stores, the stores themselves can feedback on-the-ground
comments and advice.
Market Mapping Is Done To Stream Line the Brands Presence in the Market and To Fill
the Necessary Gaps
It Helps Us To
Park avenue has got the maximum penetration in the market because of the
Raymond retail shops
The arrow stores included in the map are also the institutional and the spectrum
stores
Louis Philippe and van Heusen may not have all the exclusive stores but have a
penetration through the fashion planets and trouser towns
North Bangalore is a market still untouched and may have potential.
SWOT ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
• INCREASE VISIBILITY
• OTHERS
o The present fits in women’s trousers are Svelte, Classic and Queen. Svelte –
is too loose at the thighs, Classic – is baggy and Queen is too loose.
Recommendations
The Researcher encountered the following constraints while undergoing the given
project:
The findings in this study were based on a Survey of Major shopping clusters,
markets and other competitor Stores located there. Hence care should be exercised in
generalizing these findings to other geographical locations.
Due to the company’s objection towards the instore intercept interviews and
questionnaire, half of the questionnaires and interviews were conducted out of the
store and some of the retailers were not very cooperative.
Though extensive search was made by researcher for information and data from
source of secondary data but since a large part this sector is still unorganized so the
researcher has to face problems in collecting data and information.
1. How many times do you go to Shop for Mens formal wear? (Please tick)
Once a week Once in two week Once in 3 week More than a month
3. Which of the three Mens formal wear brands are present in your wardrobe ?
Brand 1
Brand 2
Brand 3
4. Does a brand name of Mens Formal wear influences you when you make your
purchases ? (Please Tick)
Yes No
5. Who are the one ,with whom you would like to go while shopping for branded
Mens formal wear? (Please tick)
6. Where would you like to shop for Branded mens formal wear among the places
mentioned below? (Please tick)
7. What are the feature(s) which attract you while you purchase premium Formal
wear like shirts/ trousers for executive attire?
8. What type of fabric in Branded formal Shirts will you prefer to buy?
Linen shirt Cotton shirt Polyester cotton shirt Blends Any other
9. What type of designs in Branded formal Shirts will you prefer to buy ?
Solids(plain) shirt Stripes shirts Checks shirt Printed shirt Any other
10. What type of styles in Branded formal Trousers will you prefer to buy ?
Cargos Pleated Flat Front Jeans Any other
11. What type of fabrics in Branded Trousers will you prefer to buy ?
12. How much would you like to spend on the following formal/Casual wear listed
below:
Shirts Below Rs.500 Rs. 500-Rs 1000 Rs. 1000-Rs2000 Above Rs. 2000
Trouser Below Rs.750 Rs.750-Rs.1200 Rs.1200-Rs.1700 Above Rs.1700
T shirts Below Rs 250 Rs 250-Rs 500 Rs 500-Rs1000 Above Rs1000
Suits Rs1000-Rs5000 Rs5000-Rs10000 Rs10000-Rs15000 Above Rs 15000
14. Which brands fit you like most in formal wear category ?
Shirts
Trousers
* * * * * THANK YOU * * * * *
BIBLIOGRAPHY
Web Sites:
• www.arvindmills.com
• www.arvindpulse.com
• www.lee.com
• www.leeapparel.com
• www.colorplus.com
• www.raymond.com
• www.vanheusen.com
• www.louisphillipe.com
• www.willslifestyle.com
• www.chennaionline.com/fashion
• www.levi.com
• www.levisrtauss.com
• www.economictimes.com
• www.google.com(images)
• www.wikipedia.com
Journals/magazines:
Resource Centre/Libraries: