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ACKNOWLEDGEMENT

It was an enriching experience and great opportunity to do my Masters’ Project Brand


Arrow (Arvind Brands Limited, Bangalore). I would like to express my deep regards
and Gratitude to My Mentor and Project guide Mr. Inder Preet Singh, (Product
Merchandiser; Arrow Sports and Urban, Arvind Brand limited) for giving me the proper
guidance, direction and constant support during the project that gave me enough exposure
to learn the functioning of whole merchandiser and enabled me to learn the intricacies
involved at all the levels be it sampling, final order booking to final stage of
merchandising. His out of the way support and affection has helped me to understand the
working of merchandiser.
I also want to thank my Project Mentor of second phase Mrs. Sonali Saha, (Manager,
Visual Merchandising, Arrow) for helping me in the second phase of the project and
providing me new opportunities to work on during the project.
I also hereby take this opportunity to thank Mr. Punit Chauhan (Product Manager ,
Arrow) for providing me an opportunity to do this project with the brand and for
providing his extraordinary, consistent and highly enriching guidance, Mr. Vibhu Gupta
(Merchandiser ,Knits ,ARROW) & Ms. Sayeeda Begum (Merchandiser, Arrow Classics
and Premium ), for providing inputs during the project which helped me in various stages
of project.
I would like to extend my gratitude to my faculty mentor Mr. I. Chakrapani (Asst.
Prof., FMS); Faculty guides Mr. G.H.S. Prasad (course- coordinator, NIFT,
Hyderabad), Mr. Annaji Sarma, (Asst. Professor, FMS) and Mr. Sri Nivasan Rao
(Asst. Professor, FMS) for extending all necessary cooperation for the successful
completion of my Masters’ Project and for extending support throughout the period by
their valuable support and guidance.
Rakesh Ranjan
M.F.Tech (M) - 4th Sem,
NIFT Hyderabad
PREFACE

My summer training started on 18th January, 2007 in ARVIND BRANDS LIMITED,


Bangalore. I was assigned main stream Merchandising team for brand ARROW to work
with. During my Masters’ Project, I completed three phases of my project, which are:

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

This is to certify that the study titled “Competitive market


analysis of brand ARROW, insight into visual merchandise
schemes and market research for understanding Consumer
Psychographics in reference to Merchandising Mix as well as
customers perception” is my original work. Any direct reference
from secondary sources is duly mentioned and if found otherwise
this study will render itself null and void.

Date:30th April, 2007 Rakesh Ranjan


M.F.Tech(M)-4th Sem;
NIFT ,Hyderabad
CONTENTS

 EXECUTIVE SUMMARY

 INTRODUCTION

 Company profile………………………
 About Arrow …………………..

 ABOUT ARROWs’ OFFERING


 STATEMENT OF OBJECTIVES
 Primary Objective
 Sub Objective
 APPAREL RETAIL OVERVIEW : Definition and Market Size
 BANGALORE MARKET PROFILE
 ABOUT ARROW MERCHANDISING TEAM
 THREE STAGES OF PROJECT:

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

 Creating Research Design


 Data collection methods
 Sampling
 Research Process

 PROJECT OUTCOMES:

 My Findings and Learnings

 Competitors analysis

 Suggestions and Recommendations

 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.

LAL BHAI GROUP

TEXTILES /YARNS /GARMENTS

• The Arvind mills limited


• The arvind products limited
• Arvind brands limited

Arvind brands limited is further divided into :

• Arvind fashions limited


• Arvind clothing limited

Others:

• Atul limited
• Amol dicalite limited
• Anup engineering limited

ARVIND MILLS 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.

ARVIND PRODUCTS LIMITED

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 LIMITED

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.

AMOL DICALITE LIMITED

A group company with the business ranging from Textile clothing to Filter Aids to Perlite
Products.

ANUP ENGINEERING LIMITED

It is one of the leading Engineering companies engaged in manufacturing process


equipment for Chemicals, Refineries, Petrochemicals, Pharmaceuticals, Fertilizers, Drugs
and Allied Industries. The company is equipped with Laboratory to carry out various
destructive and non-destructive tests apart from an independent quality control
department. The company undertakes design and manufacture of equipment’s to meet the
requirements of national and international codes such as ASME, BS-5500, TEMA,
EJMA, IBR, IS2825 etc for design, manufacturing and testing apart from any other
specific quality requirements specified by the customer. Equipment and components are
manufactured out of carbon steel, stainless steel, monel, inconel, cupronickle, aluminum
alloys, clad sheets, querched and tempered steels, etc.

ARVIND BRAND LIMITED

The Group Company : Arvind Mills Limited

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.

Manufacture and Marketing of 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 :

Exclusive Brand Outlets:


The exclusive stores for a particular brand provide customers with a 3 dimensional brand
experience. Arrow has flagship stores on high streets in key Indian cities.
Arrow has around 54 independent stores .

Department Stores and Malls:


The different brands of Arvind Brands Ltd. are present in each of the rapidly growing
Department Stores chains. They are also present in all the premium malls of the country.
As per industry estimates 230 malls are expected to open by 2006 in India.

Multiple Brand Stores:


Across brands – Arvind Brands is present in over 1500 stores across India.

World class manufacturing capabilities:


Arvind brands limited owns a world class manufacturing plant in Bangalore ,India . This
is a 100000 sq. ft. jeans plant that manufactures world class jeans and wrinkle free
chinos.this plant is equipped with micro processor based machines ,automated pocket
setters ,computerized washing plant ,wrinkle free manufacturing equipment and a gerber
cutter. The production capacity of bottoms plant is 3500 pieces/day. The installed
capacity is 5000 pieces/day
For dress and sport shirts ,there are three dedicated units.

International quality apparel:

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

The Arrow Company is committed to providing quality apparel


products that are fashionable and afford value to our
consumers. At Arrow, the roots are firmly established as a
fashion leader in men's apparel. However, today Arrow has
been transformed into an Gentleman lifestyle brand with a
broad assortment of men's, women's, and children's apparel and
apparel related products available in over 90 countries
worldwide. At Arrow, through research and development,
everyone is constantly addressing the changing needs and
desires of the consumer, resulting in brand awareness and
consumer loyalty.The success of Arrow can be attributed to the
brand's rich heritage and the company's attention to detail over
the years.
Arrow, a Gentleman icon, for over 150 years...

The Arrow Collar Man: A brief Demographic customer profile-

An Arrow customer is a male aged between 24 to 44 years


.Its target segment is SEC A/A1 i.e educated and well
qualified discerning gentleman who is used to the best
things in life.

He is placed at higher echelons of corporate hierarchy .He


is widely traveled and exposed to international trends .In
vogue and formal dressing is a lifestyle for this Gentleman.

Arrow customer continues to represent great values such as


freedom, adventure, individual expression, and style
through out the world.
ARROW IN INDIA

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 in India is a lifestyle brand targeted at men between 25 to 44 years. Arrow is a


benchmark for formal dressing but also caters to the leisure wardrobe of the customer
with a range in Arrow Urban and Arrow Sports. Arrow’s product range comprises of
Shirts, Trousers, Knits, Suits, Blazers, Innerwear, and Accessories.

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

Product Manager Product Manager ( Suits) Designer Marketing Manager

Shirts, Knits, Casuals, Accessories Assistance Manager VM

Business Manager Retail Manager SCM Sourcing Manager


Retail Planner Executive SCM Customer service Fabric Trims Knits Prod.

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.

Arrow is retailed under the following labels:

o 1851
o President
o Premium
o Classic

Arrow is retailed under the following sub brands:

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.

The premium Collection


This category of shirts consists of cotton fabric of 2/80’s count and 2/100’s count. The
sizes available in this are 39 to 48. The Price bracket for this category is Rs 1395–Rs
1995.

The Classic Collection


This category of shirts consists of cotton fabric of 2/60’s count and 2/80’s count. The
sizes available in this are 39 to 48. The Price bracket for this category is Rs 1095–Rs
1295.

The Sports Collection


This category of shirts consists of Washed cotton fabric. The sizes available in this are
from S to XXL. The Price bracket for this category is Rs 995–Rs 1795.

The Urban collection


This category of shirts consists of printed ,dobby design etc. cotton shirts. The sizes
available in this are from 39 to 44. The Price bracket for this category is Rs 1295–Rs
1895.
Arrow Knits
Arrow had come out with knits in FW04. Prior to FW04 the brand was importing certain
collections of knits and jackets in very small quantities. Since then a number of yarns /
fabrics have been used. FW07 was the season where the designer had given the
maximum no. of options in this segment till date.
knits:
Cotton sweaters: broad bright stripes: SPORT, GOLF 1295 to 1495.
Acro-wool sweaters: SPORT / PREMIUM bright argyles, solids 1395 to 1595.
Lambs-wool sweaters: solids, bright stripes SPORT / URBAN 1695 to 1995.
Fleece sweat shirts: SPORT: v neck, full front zipper, half zipper, patches, embroidery @
1195.
Merino wool sweaters: premium / urban: superfine merino wool - argyles, stripes @ 2095
to 2795.
2/60s double Mercerized: shirts and Polos: PREMIUM: 1195, 1395.
Stripers: sport: 695, 795
Solids: sport: 545
Rib Melange : urban: @ 895, 995
Jackets: Highly stylised sport and urban jackets.
Water-resistant jackets: with quilted taffeta and fleece lining normal length and long
jackets 2295 to 2995.
Cord: with flannel lining 2995
Canvas: with flannel lining 2195 to 2495.

Some more additions in seasons before / after FW05:


Basic round neck in SS07 @ 395/-
Staple of 10 colors in basic polo since SS07.
Unlined linen and cotton jackets (blazer pattern) (without body lining, shoulder pads,
chest pc., etc)
Mohair in FW07 FSV neck solid @1495/-
Basic 2 tone piques in SS06 @ 695/-
Double mercerized wrapper GOLF polos @ 1195/-
Light weight 12gg flat knits in SS06 @ 995/-
Cotton and acro wool full cable sweaters in FW06 @ 1595/-
Garment dyed polos in SS07 @ 795/-
Interlock stripes in FW07
2/40s compact flat knit stripes in SS07 @ 1195/-
2/40s mercerised flat knit stripes in SS07 @ 1395/-
Grindle yarn FS polo and round neck in FW07 @ 1095/-
3 ply Grindle FS V nk sweaters in FW07 @ 1395/-
STATEMENT OF OBJECTIVE

“Merchandising stint, Visual merchandise insight along with


Competitive market analysis of brand ARROW and market research
for understanding consumer psychographics”.

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

Indian Apparel Market valued at Rs.88,000 crores

Growth rate 13.6% in 2005

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.

Source : Images/KSA Yearbook 2006, March 2006


Lion's share of the apparel market, 45 percent in value terms, remains with the Men's
segment. The women's segment has increased its overall market share by one percent to a
total of Rs.30,380 crore. There is a corresponding drop in kids' segment share to 17
percent from 18 percent last year. This drop in share of kids' apparel segment is also due
to an increase in usage of ready-to-wear branded uniforms, besides other factors.

SHARE OF MAJOR APPAREL SEGMENTS (in Value terms: Rs.Crore)


2002 2003 2004 2005
MEN'S APPAREL 25864 29234 32636 36558
WOMEN'S APPAREL 20395 23302 26431 30360
KIDS' APPAREL 10372 11334 12329 13747

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

INDIA'S APPAREL MARKET SIZE

2002 2003 2004 2005


Volume Value Volume Value Volume Value Volume Value
('000 units) (Rs.Cr,) ('000 units) (Rs.Cr,) ('000 units) (Rs.Cr,) ('000 units) (Rs.Cr,)

MENSWEAR 1254370 23335 1297220 26090 1342140 29135 1393639 32590


WOMENSWEAR 1236880 19130 1300610 21730 1368310 24680 1443113 28375
UNISEX
APPAREL 417810 4215 434340 5240 452020 5835 470978 6615
KIDSWEAR 1139870 9950 1180290 10810 1222280 11745 1268933 13085
UNIFORMS 372960 4660 397210 5460 423020 6345 456862 7675
TOTAL 4421890 61290 4609670 69330 4807770 77740 5033524 88340

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%).

Source : Images/KSA Yearbook 2006, March 2006


BANGALORE MARKET PROFILE

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 1. Sourcing of Merchandise starts with the preliminary step called


FORECASTING. The forecasting is done one month prior to sampling. Simultaneously
the business manager will plan the projected sales for determining the estimated
Volume / Value.

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:

Road show consists of following activities:


It includes display of samples to the retailers and they will select out of the items
displayed and will order the quantity according to the requirement. In this the buyer is
told about the important aspects of transaction such as lead time ,date of delivery etc.
Objective:
• To get the merchandise pre booked in advance, for getting the order quantity prior
to a season.
• To show the samples ( styles and designs ) to the first buyers i.e Dealers ,
Distributors ,E.B.O’S,E.O.P’S,M.B.O’S etc.

Purpose:
 To optimize and maximize the booking prior to a season for each of the brands.

Road show is organized for different channels which are in order of :


 Key Accounts
 EBO’S/EOP’S
 MBO’S
Process flow in “ORDERING OF
MERCHANDISE” in Arrow of Arvind Brand
limited

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 2. It is followed by preparation of order plan.

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.

Stage 5. Purchase requisition or PR is being prepared on SAP by merchandiser which is


subject to approval of merchandiser , product manager ,Supply Chain team and finance
department.

Stage 6. Then based on the PR, purchase order or PO is raised by merchandiser.

Stage 7. Now PO is approved by merchandiser as well as Supply Chain Management


team.
Stage 8. Four copies of PO is made:

Copy 1.Its kept by merchandiser for future reference as well as for maintaining account
which goes into Merchandising files.

Copy 2.This copy is sent to finance department for payment processes.

Copy 3.Third copy is sent to vendor for his reference- this forms the formal order for the
vendor.

Copy 4.Fourth copy is sent to price stickering department.

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

There exist two types of transactions:

• Consignment transaction: In this type, rent is paid by the company for


using the space or a small amount of royalty is also paid to the retail outlet.

• Outright transaction: In this kind of transaction, the ownership of goods


is transferred to the retailer keeping a certain margin for the retailer and the stock
holding will be totally retailer’s responsibility.
Process Flow in Arrow Brand for sampling

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.

The main steps of cutting process are as follows:-

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.

PRE – PRODUCTION ACTIVITIES:

• 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.

Now for D/S wash 2 ½ hours wash


For M/S wash 3 hours wash, & 200gm/kg garment bleach is used.
For L/S wash 3½ to 4 hours wash & 300gm/kg bleach is used.
For Ice wash 5 to 6 hours wash & almost 500gms/kg is used.
Stone wash: Only stones are used with fabric and no water is used. Here horizontal
drums are filled with thermocol balls. The balls are mixed with chemicals & the drums
rotate for 20 to 30 mins. It gives an over all uniform look of the indigo removed &
creates a puckering effect on the garment. The indigo is burnt from the surface of the
garment.

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.

BASIC TYPES OF MERCHANDISE


PRESENTATION

There are two basic types of merchandise presentation –


• On-shelf merchandising which describes the display of the merchandise on
counters, racks, shelves and fixtures throughout the store.
• Visual merchandising

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.

ELEMENTS THAT COMPOSE THE


STORE ENVIRONMENT
VISUAL STORE PLANNING
COMMUNICATIONS Space allocation
Retail identity Layout
Graphics Circulation
POS signage

Store Image & Store


Productivity

STORE DESIGN
Exterior design STORE PLANNING
Ambience (Lighting) Fixture selection
(Visual merchandising) Merchandise
Presentation
POS signage

OBJECTIVES OF STORE ENVIRONMENT:


The two primary objectives of creating the desired store image and increasing space
productivity amount to a simple description of the three basic tasks of retailing –
1. Get customers into the store
2. Convert them into customers buying the merchandise once inside the store
(space productivity)
3. Do this in the most efficient manner possible

STORE IMAGE: It is the over all perception the consumer has of the store’s
environment.

SPACE PRODUCTIVITY: This represents how effectively the retailer utilizes


its space and is usually measured by sales per square foot of selling space or gross
margin dollars per square foot of the selling space.

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.

“Visual merchandising is creating visual displays and arranging merchandise assortments


within a store to improve the layout and presentation and to increase traffic and sales.”

As an example, mannequins are commonly used as a way to promote products relating to


appearance, such as clothing or accessories.

The activity of paying attention to each brand in every product category is known as
micro merchandising.

Another way of improving profitability is to carry complimentary range of products and


services. This triggers impulse purchase and the buyer spends more at the store.This is
known as Cross 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.

Visual Merchandising is a technique that is applied and practised in any retailing


environment. Whether you’re an up-market fashion chain or the local hardware store, it
doesn’t matter what you sell, if you have a retail space, and open your doors for trade,
you are conducting “visual merchandising” on some level.

The practice of visual merchandising requires creativity, inspiration, logic and


organisation. It has been quoted on numerous occasions as being a mix of art and science,
butk now this:
When a retailing environment makes “visual sense”, a customer will be naturally
attracted to the space, enticed to come in, convinced to stay and shop and, most
importantly, wants to buy.

WHAT VM ACTUALLY DOES

• Enhances brand image


• Changes a “passive looker” into a “active buyer”
• Generates impulse sales.
• Educating the customers about the product/service in an effective and creative
way.
• Establishing a creative medium to present merchandise in 3D environment,
thereby enabling long lasting impact and recall value.
• Setting the company apart in an exclusive position.
• Establishing linkage between fashion, product design and marketing by keeping
the product in prime focus.
• Combining the creative, technical and operational aspects of a product and the
business.
• Drawing the attention of the customer to enable him to take purchase decision
within shortest possible time, and thus augmenting the selling process.

Visual Merchandise tells us:


• Why making effective use of your space is so important.
• How to position your departments and products.
• How to improve store lighting.
• The importance of atmosphere and cleanliness in your store.
• How to create great displays and signage.

Visual merchandising elements


Visual merchandising is comprised of six components:
Store Image – The overall look of a store and the series of mental pictures and feelings
it evokes

Storefront – the store’s sign, marquee, outdoor lighting, banners, planters, awnings,
windows, and the building itself

Store Interior – must be cohesive with the storefront


Fixtures – permanent or movable store furnishings such as display cases, counters,
shelving, and racks

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

Holiday or seasonal displays


Closed displays secure high-ticket items
Open displays allow customers to handle and examine merchandise
Point-of-purchase displays are designed to elicit impulse purchases

Visual Merchandise Parameters for store


There are 15 basic parameters on which visual merchandise presentation of a store is
mapped. They are:
1. Merchandise presentation
2. Wall and floor fixtures
3. Window display
4. Lighting
• Ambient
• Task
• accent
5. Circulation pattern
6. Hygiene of the store
7. Façade (entrance)
8. Signage
9. Special areas
10. Colour of the store and the texture
11. Flooring
12. Mannequins
13. Trial rooms
14. Sales staff
• Conduct
• product knowledge
• uniform
15. Music for association

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:

Louis Philippe (Garuda Mall) Arrow (Indira Nagar)

Arrow (Brigade Road)


Some of the plan o grams suggested by me for the
Brand ARROW
Case
Studies-
Lay outs
Basic Store
Layouts
Store
Layouts
with Carpet
Area
Store layouts
and M.D.Q.
Determining Retail Space
Determining retail space for a store and in turn giving retail space to a particular section
of merchandise is a complex process and need to look at various parameters which are
affecting the business.

Approaches for Determining Space Needs:


There are two approaches for determining the space needs. They are:
1. Model Stock Approach: Determines floor space necessary to
carry and display a proper merchandise assortment
2. Sales-Productivity Ratio: Assigns floor space on the basis
of sales or profit per foot.

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,

M.D.Q = (Ideal M.D.Q Coefficient * Carpet Area)


M.D.Q. basically depends upon two factors:

(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.

(2) Business performance : Business performance is another


important factor which affects the M.D.Q of the store. In many cases, a store can
be small but it can do a big business and so it requires to stack a considerable
good amount of stock which is displayed on shelf space. In other cases, a big
store can be doing a small business. Hence , a lot of space may be used in VM
display rather than displaying merchandise.
Calculating total No. of S.K.U’s:
(1) Ad on wall space + 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(2) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(3) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(4) 7 shelves * 3 piles * 4 shirts / pile = 84 shirts (Stacked)
(5) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(6) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(7) 25 shirts (Hung)
(8) 75 trousers (Hung)
(9) 25 suits (Hung)
(10) 85 trousers (Hung)
(11) 70 trousers + 10 jackets (Hung)
(12) 4 shelves * 3 piles * 10 trousers / pile = 120 trousers (Stacked)
(13) 4 shelves * 3 piles * 10 trousers / pile = 120 trousers (Stacked)
(14) 65 trousers (Hung) + 1 shelf * 4 piles * 4 shirts / pile (Stacked)
(15) 65 trousers (Hung) + 1 shelf * 4 piles * 4 shirts / pile (Stacked)
(16) 75 trousers (Hung)
(17) 120 ties (Hung)

Total No. of S.K.U’s displayed = 1371 units


Carpet Area = 436 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 1371/436 =3.1445

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 3.1445 – 2.5 = .6445 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (.6445 / 2.5) * 100 = 25.78 %
Calculating total No. of S.K.U’s:
(1) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(2) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(3) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(4) 5 shelves * 4 piles * 12 trousers / pile = 240 trousers (Stacked)
(5) Ad space + 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(6) 3 shelves * 5 piles * 5 shirts / pile = 75 shirts (Stacked)
(7) 40 trousers (Hung)
(8) 40 trousers (Hung)
(9) 15 trousers * 4 Hangers = 60 trousers (Hung)
(10) 15 trousers * 4 Hangers = 60 trousers (Hung)

Total No. of S.K.U’s displayed = 845 units


Carpet Area = 260 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 845/260 =3.25

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 3.25 – 2.5 = .75 (+ve)
M.D.Q. Deviation percentage =
= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (.75 / 2.5) * 100 = 30.00 %
Calculating total No. of S.K.U’s:
(1) 6 shelves * 3 piles * 4 shirts / pile = 72 shirts (Stacked)
(2) Ad space + 10 wallets + 4 shelves * 5 piles * 4 shirts / pile (Stacked)
(3) 5 shelves * 4 piles * 4 shirts / pile = 80 shirts (Stacked)
(4) 6 shelves * 4 piles * 4 shirts / pile = 96 shirts (Stacked)
(5) 20 ties * 3 hangers + 15 socks ( hung ) + 25 belts (hung)
(6) 5 shelves * 6 piles * 4 shirts / pile = 120 shirts (Stacked)
(7) 5 shelves * 4 piles * 10 trousers / pile = 200 trousers (Stacked)
(8) 5 piles * 4 shirts = 20 shirts (Stacked)
(9) 15 piles * 6 trousers = 90 trousers (Stacked)
(10) 10 T shirts (Hung)
(11) 10 trousers + 5 shirts (Hung)
(12) 15 shirts (Hung)
(13) 10 t shirts (Hung)
(14) 12 piles * 4 t shirt / pile = 48 t shirts (Hung)
(15) 8 piles * 4 t shirts / pile + 15 trousers (Stacked)
(16) 6 piles * 4 shirts / pile = 24 shirts (Stacked)

Total No. of S.K.U’s displayed = 1037 units


Carpet Area = 546 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 1037/546 =1.899

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 1.899 – 2.5 = .6007 (-ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (.6007 / 2.5) * 100 = 24.029 %
Calculating total No. of S.K.U’s:
(1) 6 shelves * 5 piles * 4 shirts / pile = 120 shirts (Stacked)
(2) 6 shelves * 4 piles * 4 shirts / pile = 120 shirts (Stacked)
(3) 4 shelves * 7 piles * 4 shirts / pile = 112 shirts (Stacked)
(4) 4 shelves * 7 piles * 4 shirts / pile = 112 shirts (Stacked)
(5) 4 shelves * 9 piles * 7 trousers / pile = 252 trousers (Stacked)
(6) 4 shelves * 9 piles * 7 trousers / pile = 252 trousers (Stacked)
(7) 25 jackets (Hung)

Total No. of S.K.U’s displayed = 993 units


Carpet Area = 320 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 993/320 =3.103

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 3.103 – 2.5 = .6031 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (.6031 / 2.5) * 100 = 24.125 %
Calculating total No. of S.K.U’s:
(1) 4 shelves * 4 piles * 8 shirts / pile = 128 shirts (Stacked)
(2) 5 shelves * 4 piles * 8 shirts / pile = 160 shirts (Stacked)
(3) 5 shelves * 3 piles * 8 shirts / pile = 120 shirts (Stacked)
(4) Ad space + 4 shelves * 3 piles * 8 shirts / pile = 96 shirts (Stacked)
(5) 3 shelves * 3 piles * 8 shirts / pile + 30 trousers (Stacked)
(6) 3 shelves * 4 piles * 8 shirts / pile = 96 shirts (Stacked)
(7) 60 trousers (Hung)

Total No. of S.K.U’s displayed = 762 units


Carpet Area = 96 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 762/96 =7.9375

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 7.9375 – 2.5 = 5.4375 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (5.4375 / 2.5) * 100 = 217.5 %
Calculating total No. of S.K.U’s:
(1) Ad on wall space + 4 shelves * 3 piles * 8 shirts / pile = 96 shirts (Stacked)
(2) 4 shelves * 3 piles * 8 shirts / pile = 96 shirts (Stacked)
(3) Ad on wall space + 4 shelves * 4 piles * 8 shirts / pile = 128 shirts (Stacked)
(4) 4 shelves * 4 piles * 8 shirts / pile = 128 shirts (Stacked)
(5) 4 shelves * 6 piles * 8 shirts / pile = 192 shirts (Stacked)
(6) 4 shelves * 4 piles * 8 shirts/pile + 4 shelves *2 piles * 5 trousers / piles (Stacked)
(7) 50 formal trousers (Hung)

Total No. of S.K.U’s displayed = 858 units


Carpet Area = 99 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 858/99 =8.667

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 8.667 – 2.5 = 6.167 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (6.167 / 2.5) * 100 = 246.67 %
Calculating total No. of S.K.U’s:
(1) 6 shelves * 4 piles * 8 shirts / pile = 192 shirts (Stacked)
(2) Ad space + 3 shelves * 4 piles * 8 shirts / pile = 96 shirts (Stacked)
(3) 6 shelves * 4 piles * 8 shirts / pile = 192 shirts (Stacked)
(4) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(5) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(6) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(7) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(8) 3 shelves * 4 piles * 8 shirts / pile = 96 shirts (Stacked)
(9) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)

Total No. of S.K.U’s displayed = 1026 units


Carpet Area = 200 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 1026/200 =5.13
Ideal M.D.Q. Co-efficient = 2.5
Deviation from ideal M.D.Q. co-efficient = 5.13 – 2.5 = 2.63 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (2.63 / 2.5) * 100 = 105.2 %
Calculating total No. of S.K.U’s:
(1) 5 shelves * 4 piles * 8 shirts / pile = 160 shirts (Stacked)
(2) 5 shelves * 4 piles * 8 shirts / pile = 160 shirts (Stacked)
(3) 10 shirts (Hung)
(4) 4 shelves * 2 piles * 8 shirts / pile = 64 shirts (Stacked)
(5) 4 shelves * 2 piles * 8 shirts / pile = 64 shirts (Stacked)
(6) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(7) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(8) 3 shelves * 3 piles * 10 trousers / pile = 90 trousers (Stacked)
(9) 3 shelves * 4 piles * 8 shirts / pile = 96 shirts (Stacked)

Total No. of S.K.U’s displayed = 824 units


Carpet Area = 162 sq. ft.
Calculated MINIMUM DISPLAY QUANTITY (M.D.Q.) Co-efficient
= (Total No. of S.K.U’s displayed / Carpet Area) = 824/162 =5.0864

Ideal M.D.Q. Co-efficient = 2.5


Deviation from ideal M.D.Q. co-efficient = 5.0864 – 2.5 = 2.5864 (+ve)

M.D.Q. Deviation percentage =


= (Deviation from ideal M.D.Q. co-efficient/ Ideal M.D.Q. Co-efficient)* 100
= (2.5864 / 2.5) * 100 = 103.456 %
Market Research for
Understanding the
Consumer
Psychographics of
Arrow
& Market Mapping of
Bangalore

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.

Creating Research Design:

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:

Research Objective: To describe and measure marketing phenomenon at a point of time.


Descriptive Research is conducted to answer Who, What, Where and How questions.
When we wish to know how many customers we have, what brands they buy in what
quantities their preferences, the problem they face, their satisfaction level etc. and what
their attitudes are towards our company and our competitors, we turn to Descriptive
Research.
DATA COLLECTION METHODS

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.

There are two ways of collecting primary data:

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

Survey Research is being chosen for its following advantages:

Advantages Descriptions

 Standardization All Respondents respondents react


to questions worded identically and
presented in the same order. Response
options (scale) are the same, too.

 Administration ease Interviewer read questions to


respondents and records their answers
quickly and easily. In some cases, the
respondents fill out the questionnaire
themselves.
 Tap the “unseen” It is impossible to ask questions about
motives, circumstances, sequence of
events, or mental deliberations

 Tabulation / Analyses Large sample sizes and computer


processing allows quick tallies, cross
tabulations, and other statistical
analyses.

 Subgroup differences Respondents can be divided in to


subgroup or segments for comparisons
in the search for meaningful differences.

Survey method adopted by the Researcher is ‘Person-Administered’ Survey: A


Person-Administered survey is one in which interviewer read the questions to
respondents and records his or her answers. Person-Administered Survey is done in form
of Store Intercept and Market Intercept interview.

The Store Intercept Interview is one in which respondent is encountered and


questioned while he or she visiting the Stores. It has advantage of being less expensive
interview than other methods like in- house interview.

The Market Intercept Interview is one in which respondent is encountered and


questioned while he or she visiting the market.

Person-Administered Survey was chosen for its three unique advantages:


1. FEEDBACK: Interviewer often must respond to direct question from
respondents during an interview.

2. RAPPORT: It is often helpful to have a human being present to develop some


Rapport to respondent early on in a questioning process.

3. QUALITY CONTROL: Personal Interview may be used to ensure those


respondents are selected correctly based on sex, age, or other distinguishing
characteristics. To other form of or computer assistant Survey and Self-
Administered Survey.

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.

Sampling Method: There are two basic methods of Sampling:

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.

Type of Non-Probability Sampling chosen was:

 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.

SUMMARY: Quota Sampling Method chosen for the given project.

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.

Sample size of 150 for customers is believed by the Researcher to be Representative


of the population.

More information about sample:


I worked on the following cluster of respondents for my market research. The type and
size of cluster is explained below:

• 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.

 The respondent should be a frequent visitor to the store/market

RESEARCH PROCESS
Understanding Background of the Problem

Defining Research Methodology

Designing Data Collection Methods

Determining Sample Design and Sample Size

Organizing and Conducting Field Study

Processing, Analyzing, Interpretation and Conclusion

MARKET RESEARCH ANALYSIS


Segregating the data base on the basis of various variables:

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.

ARROW (Indira Nagar Store)

2. Colour Scheme not


followed:
The presentation of T shirts in the standing wall
Fixtures should follow the “VIBGYOR
THEME” i.e the merchandise should be
displayed as-violet colour T shirts at the bottom of
the vertical wall shelf and red colour Tshirts at the
top of the shelf.
ARROW (Indira Nagar Store)

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.

Pic. Depicting suggestive merchandise presentation

5. Colour Assortment and colour blocking


missing: The colours and designs’ assortment (size wise) is an
important aspect of visual merchandise presentation .It was missing to
some extent in the Brigade Road store.

Same design
merchandise
stacked in two
different racks.

ARROW (Brigade Road Store)

6. Attention to detailing:
The stores require greater attention to minutes detailing. Like ironing the hung Products
and keeping them wrinkle free.

ARROW (Brigade Road Store)

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.

Arrow Store ( Brigade Road)

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.

Arrow Store ( Brigade Road)

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.

Arrow Store ( Brigade Road)

10. No special demarcation for ARROW


WOMENS’ in store :
There is no special demarcation made for ARROW WOMENS’ merchandise in the store.
By using special flooring or colour of fixture , we can easily differentiate the women’s
merchandise from rest of merchandise. Also only one mannequin is used in Brigade Road
store.

11. More neatness required in


merchandise stacking: The
merchandise which is stacked in shelves
require more attention and neatness in its
stacking. The merchandise stacked in
Brigade Road store in womens wear section
were not neat.
Arrow Store ( Brigade Road)

12. Lightings needs more


attention:
The trial room must be properly lighted. The trial room of
ARROW BRIGADE ROAD lighting has Fused Tube lights
and hence needs more attention.

Arrow Store ( Brigade Road)

13. Price point not taken into account:


While presentation of merchandise as we enter into store the price point should move up
with increasing depth but this scheme was not taken care of.

STORE
ENTRANCE

Minimum price point merchandise to Maximum price point merchandise

Suggestions for Visual Display of Brand


Arrow
1. Windows Must be Exclusive
to a Look:
The outer window and the inner window
should not be mixed. The exclusivity of a
window remains if it is differentiated from
other Brand. One important suggestion for the
brigade road window display is that the outer
window mannequins must be separated from
inner window to create an effect. This can be
done with the help of partitions in the form of
postures of Arrow or a white background with
a LCD SCREEN can create a difference.
This will also help in laying emphasis on the Brand presentation with the help ask and
focus lights.( As it will prevent the light from scattering in the window.

2. Focal points need to be


worked on: The entrance of the store
layout gives the first image of the store
and also serves as the focal point for the
store. Highly visible, high profile locations
such as windows, strike-zones and
cash/service areas, feature walls, tops of
fixtures and end-caps are all ideal for
display highlights. The products at the entrance show the Brands’ USP, Seasons’
special and also depict the theme they want to portray. Hence the focal point should
be worked in such a way that it portrays everything in one go rather than confusing
the customers.

3. Use of Suggestive Mannequins: Let the mannequins suggest the


which we want to portray on a particular floor. The kind of mannequins used (till
bust, parts of body etc.) ,way in which mannequins are dressed and the pose of the
mannequins should suggest the look of that section of merchandise as well as store.

4. More Stress on Floor, Props, cleanliness and accessories:


More stress should be put on these four parameters to create a differentiation in
presentation. The store will be able to speak louder about its merchandise if these
parameters are intact.

5. The furniture and free standing units should portray


similar image: The furniture and F.S.U .s’ displayed should be properly
correlated and coordinated according to store.

6. The best selling products should be displayed in high


traffic areas or multiple locations: Sales performance is directly
related to visibility and accessibility. The staples should be displayed in the major
traffic area. The customers should be able to see, touch, and examine products
without having to ask for assistance. The interaction between people and your
products should be facilitated.

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.

8. Negative space should be respected: The eyes need to have a place of


rest. Too much clutter in the upper 1/3 of the store will create visual noise, and
obstruct site lines. Tops of floor fixtures/gondola are best at a standardized height.

9. Cardboard box should be avoided from sight: There is nothing


attractive about cardboard boxes, so its better to keep them off the retail floor and
out of customer sight.
A FEW TIPS ABOUT SIGNAGE OF ARROW
The basic purpose of in-store signing is:
• To provide information
• To provide direction
• To draw attention to merchandise
• To stimulate customer purchases

o Present signs in the retail environment in a well organized manner.


o The message on signs should be simple, concise and expressed with clarity. Avoid
excessive wording.
o Directory signs should be clear and easily read from a distance.
o Avoid “visual clutter” by removing unnecessary signs.
o Create sign templates on a computer program like Word or Adobe PageMaker. Avoid
the usage of handwritten signs.
o Be consistent with color usage and the letter style (font).
o Use sign holders (not tape) for a professional look. They’re available in many shapes,
sizes, colors, and finishes and are adaptable to a variety of uses.
o Use the same format of sign holder within a department or display. Create a unified
look with consistent placement.
o Product pricing should be understandable to both customers and staff. Use shelf tags
and peg-out clips to clearly mark products without price tags.
o Price points for product within the same category should be standardized. For example,
all prices ending in .95 , 99 or .00
o Use one standard message/sign for products grouped together on promotion or sale. For
example “all titles $1.99” or “select clothing 50% off”.
o Signs, holders and all fittings should be file and stored immediately after usage to avoid
damage and becoming misplaced.
BENEFITS OF VISUAL MERCHANDISE

• Increased sales
It increases sales by ensuring ranges to be presented in their best possible
position/adjacencies.

• Reduction in average stock


holding
It provides details on the display quantities required for each item, the business
can smooth the inflow of goods whilst maintaining a credible presentation.

• 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.

• Increased customer satisfaction


Customers are more likely to revisit stores where product is clearly merchandised
and well stocked as well as properly displayed.
MARKET MAPPING
During my whole period of project and its stages (Be it Competitive Market Survey or
Market research),I came across various relevant facts, information, findings, problems
(related to market) which I jotted down and which I feel, is important for effective
positioning.

Market Mapping Is Done To Stream Line the Brands Presence in the Market and To Fill
the Necessary Gaps

It Helps Us To

 Identify the gaps in the market


 Allows high penetration
 Competition analysis
 Explore opportunities of new business

Bangalore is divided into 5 regions


 East Bangalore
 North Bangalore
 South Bangalore
 West Bangalore
 Central Bangalore
Findings from Market Mapping

 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

• Good Product in terms of


Quality.
Timely availability of stock is
• Premium Brand image
a problem.
Visibility - marketing.

OPPORTUNITIES THREATS

• Smaller dealer base –


easier to build an Lost market share and
emotional connect. customers to other brands
• Customers upgrading due to late deliveries.
themselves.
SUGGESTIONS
• The brand should increase market presence through new stores and retail formats.

• INCREASE VISIBILITY

o Advertise the sub themes to create excitement.


o Advertising plan for merchandise which will be displayed in the ads should
be formulated such that the same styles can be marked and the dealers can
book more pieces for the same as costumers come asking for a specific style
which they have seen in the ad.
o Product specific Advertisement is required as consumers ask for the product
which they see in the advertisement. Brand image already exists.
o In store branding should be given priority – signage, booking store window
for a period.

• 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 reporting of the stores should be made more efficient.


 There shall be regular training plans including product training and display
training for each new store staff
 Apart from the regular incentive scheme periodically Reward and recognitions
shall be organized for sales staff to motivate them
 Service and the lead time for new stores need to be reduced by improving the
supply chain process
LIMITATIONS OF THE RESEARCH

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.

 Budgetary Constraints were a limit to the extent of market scanning of competitors,


the Researchers could undertake.
 The time of the project was at the end of the season when most of the retailers/brands
were on sale or about to be on sale. When new season started project was about to
finish.

 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.

 Respondants might be baised at times .

 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.

Dear Sir/Madam , I am a student of NIFT, Hyderabad. I am required to carry out a survey


on Mens formal/casual wear for my academic purposes. Please cooperate with me in
filling this questionnaire.
MENS FORMAL/CASUAL WEAR : GIVING
COMPLETENESS TO PERSONAL IMAGE
Name
Email(optional)
ANNUAL Between Between Between Above 10 lacs
INCOME 1 – 2lacs 2 – 5 lacs 5 – 10 lacs
(please tick)
Your age: Occupation: Sex:

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

2. List six brands of your choice for Mens formal wear.


Brand 1
Brand 2
Brand 3
Brand 4
Brand 5
Brand 6

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)

Friends/Girl Friends Family Members Colleagues Any Other

6. Where would you like to shop for Branded mens formal wear among the places
mentioned below? (Please tick)

E.B.O’S M.B.O’S Exclusive Men’s store Shopping Malls Local/Any Other

7. What are the feature(s) which attract you while you purchase premium Formal
wear like shirts/ trousers for executive attire?

Exclusivity Design Fabric Styles Brand Image

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 ?

Poly wools Cotton Corduroy Denims Any other

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

13. Which brand’s visual merchandise presentation you liked most ?

14. Which brands fit you like most in formal wear category ?

Shirts
Trousers

Any comments or feedback:

* * * * * 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:

• Market Research: Boyd and Stach


• Market research: G.C Beri
• IMAGES BOF
• IMAGES RETAIL

Resource Centre/Libraries:

• National Resource Centre, NIFT, Bangalore

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