Internship Report

“Development & Implementation of Merchandising Plan”

Company Name: Fashion Global Retail Ltd. (Future Group)

Submitted By: Nilesh Sinha

Smba08139

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 Institute of Management Technology, Dubai
Table of Content
Acknowledgement………………………………………………………….3
Executive Summary……………………………………………………….4
Introduction………………………………………………………………...5

Future Group………………………………………………………...5

Values………………………………………………………………..7

Mission………………………………………………………………7

Loot Mart…………………………………………………………………..8

Clearance sale Outlet store………………………………………………...8

The Project…………………………………………………………………9

Methodology ………………………………………………………....9

Issues of Concern……………………………………………………..10

Operations part at warehouse and store……………………………....12

Recommendation……………………………………………………...13

Major Learning in Internship………………………………………………...14

Bibliography……………………………………………………………….....15

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 Appendices…………………………………………………………………...16
REM (Retail Enterprise Management)…………………………………...16
Cash Memo……………………………………………………………….17
Daily Sales Report (DSR)………………………………………………..18
Category wise sales and margin Table headings…………………………19
Conclusion……………………………………………………………………20
ACKNOWLEDGEMENT

This project report has provided me with a deeper knowledge about the area of Store operation
and about the retail sector. With this project, I hope to develop a futuristic view of industry’s
progress. Behind every major endeavor lies not merely individual brilliance but the Ideas,
Assistance and Guidance of a Team of Individuals. A study like this cannot be completed
without help from other persons and therefore I would like to express my gratitude to all persons
having contributed to completition of this project.

I Would thank the Management at Fashion Global Retail Pvt Ltd ( Future Group) giving me the
opportunity to do my two-month project training in their esteemed organization.

My sincere thanks to Mr. Upamanyu Bhattacharya, CEO, Fashion Global Retail Pvt Ltd. (Future
Group) for granting me to undertake my Internship training. I am also thankful to him for giving
me his valuable time and trusting me.

I am highly obliged to Mr. Hemant Kejriwal, Deputy General Manager, for guiding me a long
way and for successful completion of my internship with in the time frame, who has given me
the initial orientation about the organizational activities, whose patience and faith in my abilities
always boosted my confidence.

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I am also thankful to Mrs. Nimisha Gupta, Senior Executive Manager for providing me with the
conceptual base and secondary data and for her timely and valuable suggestions and help
throughout this internship period.
Last but not the least , I want to thank all the team and staff member of Fashion Global Retail Pvt
Ltd.,Jogeshwari and clearance sale outlet,Dadar,Mumbai for the support that they gave me over the
course of two months of training program.

EXECUTIVE SUMMARY

India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
As a part of my MBA curriculum I have done my internship training at Fashion Global Retail
Pvt Ltd. (a Future Group Company), Mumbai, India. In this report I am going to share my
experience in that company for the period of 60 days from 5.05.2009 to 05.07.2009. During my
internship my project Title was “Development and Implementation of Merchandising Plan”. As
a part of this task I have some objectives to do at Clearance Sale Outlet store, Dadar,
Mumbai. i.e.
Daily Tracking Category wise sale and Margins.

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Tracking of Key SKUs and Brands.
Analysis and Action Required to Improve Sales & Margins
Customer observation.
Identification of New SKU’s
Suggesting The Pricing and Offers for the SKU’s

INTRODUCTION
FUTURE GROUP

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail
forms the core business activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand development, retail real estate
development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of
retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons,
a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee
brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian
bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a
hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and
Bangalore.

The group’s speciality retail formats include, books and music chain, Depot, sportswear retailer,
Planet Sports, electronics retailer, eZone, home improvement chain, Home Town and rural retail
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chain, Aadhaar, among others. It also operates popular shopping portal, futurebazaar.com.
Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth
over $1 billion that are being invested in consumer brands and companies, real estate, hotels and
logistics. It also operates a consumer finance arm with branches in 150 locations. The group’s
presence in Leisure & Entertainment segment is led through, Mumbai-based listed company
Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and
family entertainment centers, F123. Through its partner company, Blue Foods the group
operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti
Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Group’s joint venture partners include, US-based stationery products retailers, Staples
and Middle East-based Axiom Communications.

Other group companies include, Future Generali, the group’s insurance venture in partnership
with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future
Logistics, providing logistics and distribution solutions to group companies and business
partners and Future Media, a retail media initiative.
Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The
group’s corporate credo is, ‘Rewrite rules, Retain values.’

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The Future Group employs over 30,000 people and was counted among 15 best employers in
India in a survey conducted by Hewitt Associates in 2007 in association with The Economic
Times.
A staunch believer in the group’s corporate credo, ‘Rewrite Rules, Retain Values,’ Kishore
Biyani considers Indianness as the core value driving the group. He was recently awarded the
Ernst & Young Entrepreneur of the Year 2006 in the Services Sector and the Lakshmipat
Singhania - IIM Lucknow Young Business Leader Award by Prime Minister, Dr. Manmohan
Singh in 2006. He was also awarded the CNBC First Generation Entrepreneur of the Year 2006.
Kishore Biyani was born in August 1961 and is married to Sangita and they have two daughters.
He recently authored a book, ‘It Happened in India’ that captures his entrepreneurial journey and
the growth of modern retailing in India.
Values

• Indianness: confidence in ourselves.

• Leadership: to be a leader, both in thought and

business.

• Respect & Humility: to respect every individual

and be humble in our conduct.

• Introspection: leading to purposeful thinking.

• Openness: to be open and receptive to new ideas,

knowledge and information.

• Valuing and Nurturing Relationships: to build

long term relationships.

Mission

We share the vision and belief that our customers and

stakeholders shall be served only by creating and
executing future scenarios in the consumption space

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leading to economic development.

We will be the trendsetters in evolving delivery formats,

creating retail realty, making consumption affordable for
all customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and

renewedambition.We shall be efficient, cost- conscious
and committed to quality in whatever we do. We shall
ensure that our positive attitude, sincerity, humility and
united determination shall be the driving force to make
us successful.

Loot Mart (Fashion Global retail Pvt Ltd)

Loot Mart is an apparel store from the Future Group. They stock several brands for men, women
and kids at affordable prices, which is their USP. The collection includes formals, casuals and
party wear. They have denims and formal shirts and trousers. You will also get tops, jeans,
trousers, skirts, cargos etc. The store offers several good discounts and deals and would be a
good place to look if you wish to purchase large amounts.

Clearance Sale Outlet at Dadar

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Dadar is a small place in Mumbai with a railway station on the Mumbai Suburban Railway. It
has Western Railway line and the Central Railway line on both the side. Dadar is clearly
demarcated into East and West by the railway line. Dadar East is better known as the Dadar T.T
and Dadar West is referred to Dadar B. B. The shopping market in Dadar West Market is
popular for shopping amongst the residents of Mumbai.
The Clearance Sale outlet is the company’s liquidation store, where the company brings all its
dead stocks from the other stores around the India and sale it on the best offer for the consumer
to attract. In this store the company puts the items like Apparels, Crockery’s, Electronics ,toys,
Books, Luggage,Bags,kitchenware items etc.The company is facing the competition with local
market and stores situated in Dadar area near this clearance outlet store.
The need for the project arises to sustain as well as increase the current market share through
Development and implementation of merchandising plans. After the careful analysis of current
environment the only feasible solution comes of doing the attractive pricing and good offers for
the customer to get attracted.
THE PROJECT
This is the company’s First Clearance sales outlet store in Dadar area with the Intention of
Liquidation of extremely old and slow moving merchandise from all categories across all the
businesses within the group. The categories include like Luggage, Home ware, Kitchenware,
Furniture’s, Electronics, Apparels, Crockery etc. at deep discounts including selling at most the
below cost to clear up the stock and create space in warehouses as well as convert the dead
inventory into cash and get back in circulation.
It was the first time a clearance sale of this type happened where there was no clear
merchandising strategy to start with and the entire buying merchandise model needed to be
developed a model to evaluate the viability and possibility of more such outlet in various parts
of India.

Methodology

• The work involves liaising with the category managers of each of the category across the

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 business to check on merchandise availability for liquidation.

• IT Configuration of the article masters, purchase order/stock transfers order following up

for the dispatch the delivery and time inventory at the store.

• Space planning at the store based on the category, adjacency, infrastructure requirements
and quantity of stock available.

• Decision on pricing and promotion to be run on various categories based on physical

condition of the merchandise like:
○ Current market value.
○ Quantity of stocks available.
○ Period available for sale (expiry date).

• Tracking the performance (sales Qty, revenue, margins) of key SKU’s, Brands and
categories.

• Revising the price for promotion, location for the available categories in the store.

• Circulation of the category wise clearance sale performance to the respective category
managers to keep them updated as well as to get their feedback on changes to be made in
pricing/promotion if any.

Issues of Concern

The issues of concern at the clearance sale outlet which leads to the low sales and low margins
are:

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• As the store is non air conditioned, so it becomes very humid and stuffy environment
inside the store which creates difficulty for the customer to stay for longer time.

• The Lack of skilled and trained staff in the store, who cannot able to convince the
customer to buy the product and could not able to maintain their respective section
attractive and easy to get product which also affects the overall sale of the store.

• The Poor Ambience of the store leads to low customer entry so it is also one of the major
concern for the company to liquidate the products.

• There is no proper segregation of the items in any particular section, which makes
difficult for the customer to look at particular item, which also reduces the sale.

• There is no Guarantee/warranty on any of the product displayed on the floor which

creates some doubt in the minds of the customer about the quality of the product.

• As this is a liquidation store so there are Limited number of items in each category which
also dissatisfy the customer who are looking for any particular item which is not present
in the store due to limited stocks.

• The Pricing should be done in keeping with the type of customers entering into the store.

• The major competition is with the nearby local market stores who are selling the same
items in good price.

• The Lack of maintenance of the store and cleanness of the SKU’s also distract the
customer in buying the product.
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Operations work at the warehouse and store
•Warehouse Manager receive the SKU’s boxes from the suppliers then does the following
work:
○ First check the correct consignment has been reached or not.
○ Getting unloaded the boxes to the warehouse properly.
○ Checking the Box condition whether the box is in proper condition or not, if not
then making the complaint along with company stamp.
○ Does the receiving signature and put the company stamp on receipt.

• After receiving boxes the warehouse manager also does the following activities:
○ Checking of Carton Quantity

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 ○ Checking Delivery Number
○ Making Good Received Note (GRN) in the SAP.
○ Making STO (Stock transfer Order) about the quantity which is not present in
the Box.

• After That the Warehouse manager does register entry of the following :
○ Delivery Number
○ Purchase Order Number
○ Number of Quantity of product received.
○ Stock Transfer Note Number
○ Total Amount
○ Good Received Note Quantity
○ Good Received Number

• After that the store Manager does the section wise Display of the SKU’s with proper
price signs and offers.

Recommendations
There are few recommendations that are recommended if the project is to be conducted again in
future.
• As this store is for liquidation of dead stocks, so pricing should be done keeping it in
mind.

• The running offers on the products should be made more attractive, which also helps in
attracting more numbers of customers.

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 • By Improving the Ambience of the Store helps in attracting more customers and
increases the sale.

• The understanding of consumption pattern area-wise will help us to target and promote
our self easily in the specific areas.

• To do the customer profiling based on area (geographic) as well as on community and on

their consumption patterns.

• To hire more Skilled and trained Staff to help the customers and to also improve the
sales as if in depot section, a skilled worker can improve the sale by segregating the
section category wise.

• The Employees should be more involved in decision making to become more

differentiated and the Company should provide good incentives to store staff.

Major Learning in the Internship

About Retail Industry
• Retailing in India is gradually inching its way toward becoming the next boom industry.
• Modern retail has entered India as seen in sprawling shopping centers, multi- storied
malls and huge complexes offer shopping, entertainment and food all under one roof.

In Store
• Events form the major audience attraction. People love to see their kids perform, so any
activity involving them creates a lot of footfalls.

• The customer of coming to store can be classified has highly price conscious and little
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 quality driven, any change in price can drive the customer away or pull a lot of crowd as
seen in picture.

• The shrinkage or generally termed as Shortage while handling or storing or theft of

goods forms a major chunk of losses and need to be kept in control.

• Most of all major responsibility of customer satisfaction lies on the shoulders of floor
staff, the lowest on the hierarchy. Because they are the one who communicate to the
customer directly and form the everlasting impression.

• With plethora of options open to customer it is the customer service which would
eventually become the defining criteria for the preferred retailer.

• I did learn about the operations and merchandise treatment the two crucial factors for
routine.

• I enjoyed working here since as soon as I used to step out of the small back office I
would transform into a routine shopper, roaming around, looking for stuff & observing
other customers.

Bibliography

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www.futuregroup.in
By communicating and receiving data from the employees and staffs.

Appendices
REM (Retail Enterprise Management)

i. Front end software to manage the daily

operations
ii. Mostly used at the point of sale
iii. Main use: to create bills, update offers, generate reports etc

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Cash Memo

• Products are entered directly from the REM

• The products will be searched according to the brand or category
• The required products will be entered along with their quantity
• Final bill with the total quantity, gross
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 amount, discount (savings) & net amount
would be as given below

Daily Sales Report

This is the daily Sales Report of the clearance outlet Store, which is generated to have the better
understanding about the following:

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 • Total Amount
• Total Quantity Sold.
• Number of customer entry.
• Total number of bills made.
• To see the catergorywise and overall margin and sale of SKU’s.
• To see the Gross and Discount amount in each category sold.

Category wise Sales and Margin table heading

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This is the snap shot of the heading of the category wise sales and margin excel data sheet in
which the compilation of daily sales report is done. The Data are confidential so not shown.

Conclusion
In these 8 weeks of the internship program, I came to know much about the retail industry and
its working culture. I got a good exposure about what really the corporate life is about. It’s

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waking along with targets and mind stresses every morning. The person who can manage these
target and stress are shining in those fields.

The project also helped me in understanding the operation and working at the store and the
warehouses. The project also helped me in compiling the data, making pivot tables and
analyzing the data for better understanding of daily sales and margins.

I personally think that sales and marketing is not everyone’s cup of tea but if one set his target
high and continuously strive towards that, nothing is impossible. The only thing required in our
field is the right attitude or a positive attitude towards attaining one’s goal.

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