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A PROJECT ON

A COMPARATIVE STUDY OF MERCHANDISE ASSORTMENT


PLANNING OF VARIOUS APPAREL OUTLETS AND RETAIL COUNTERS
OF JALANDHAR.

By

Tajinder Pal Saini

2020070329
A THESIS ON

A COMPARATIVE STUDY OF MERCHANDISE ASSORTMENT


PLANNING OF VARIOUS APPAREL OUTLETS AND RETAIL COUNTERS
OF JALANDHAR.

By

Tajinder Pal Saini

2020070329

A report submitted in partial fulfillment of

the requirements of

THE MBA PROGRAM


(The Class of 2009)

Lovely Professional University


DECLARATION

I Tajinder Pal Saini hereby state that this Project Report has been
submitted to Lovely Professional University in partial fulfillment
of the requirements of MBA (Master of Business Administration)
Program Class of 2009.

The empirical information of this report is based on my own


research and observation. Any part of this project has not been
reported or copied from any report of any university and others.

Date: 15 /5/2009
Tajinder Pal Saini

Place: Phagwara
(2020070329)
CERTIFICATE

This is to certify that the Management Thesis work entitled “A


comparative study of Merchandise Assortment planning of various
apparel outlets and retail counters of Jalandhar .” is being
submitted by Tajinder Pal Saini for partial fulfillment of MBA to
the Lovely Professional University is recorded a Bonafide work
carried out by him under my guidance and supervision.

Date: 15/5/2009
Ms.Gurdeep Kaur

Place: Phagwara
(Faculty Supervisor)

Lovely Professional University

Phagwara
ACKNOWLEDGEMENT

I am writing this Final Report of Management Thesis for the


program of Master of Business Administration for Lovely
Professional University (Phagwara).

It has been a great challenge but a plenty of learning and


opportunities to gain huge knowledge on the way preparing this
management thesis. I would not succeed without Ms.Gurdeep
Kaur My amazing faculty supervisor, who seemed to be with me
always; and prepared to give me feedback and guidelines
whenever I needed it. Thank You Madam!

I also would like to thank all my friends, my colleagues and all


those persons whom I met in this time period for all feedback and
help which they provided to me. And of course to all those
executives from various apparel outlets whom I interviewed for all
their help and support. Thank You all!

I have learned a lot during this time period of preparing this


thesis and I hope you will find my working as interesting and
knowledge earning as I have and that this report is presenting to
all. And it will be useful for others wanting to learn about apparel
industry and retailers’ policies and strategies about merchandise
assortment planning.

Tajinder Pal Saini

2020070329
ABSTRACT

In today’s competitive scenario where more and more players are


coming into the picture, there is a need to look into the customer
or client behavior to know your client well. And also there is a
need to spread their business like this in which one can choose
the best for them. Till now here in India most of people prefer
unbranded clothing and they buy clothing from traditional apparel
stores but after entrance of big giants in this segment, today’s
emerging retailing environment, people’s income level and
spending power, increasing preference for fashion & new trends;
hence there is a wide scope in India for apparel industry and till
now it is at the flourish stage.

The variety and assortment of merchandise offered by a store


play a major role in attracting customers. Merchandise comes in a
variety of sizes, colors, makes and models. So any retailer, big or
small, take many decisions regarding what to purchase and what
to made the goods available to customers. This is called
systematic merchandise planning. So basically merchandise
decisions are related to what type of product they are going to
offer and assortment planning is related to the varieties of
product and goods offered by them in their outlets.

Because of high cut-throat competition, when all market players


are fighting with each-other for attracting and retaining
customers. But today customers are also very smart and they
know the value of their money; and a lot of choices are available
in the market for them. Especially in apparel industry, a lot of
brands and a wide range of fashion are available so it’s too
difficult for customers to taking the purchase decision. So it’s
necessary for every retailer to provide the best and biggest
possible range of product to customers. And researcher studied
these all in preparing this thesis and found that these decisions
and planning are continuously adopting by every big and small
retailer; because it is the demand of current time.

INTRODUCTION

Retailing Overview

In Apparel Segment and Merchandise Assortment Planning

Objectives

Limitations

Benefits to.
Retailing Overview-

It’s a human tendency to have a comfort, luxurious life and have


all facilities to him. And as there is a golden period going on now;
anybody can enjoy these benefits. And retailing concept is also
from one of these facilities. Retailing is simply provides the end
product to customer. So retailers are directly in touch with
customers. Retailing in India is witnessing a huge revamping
exercise. India is rated the fifth most attractive emerging retail
market: a potential goldmine.
As per a report by KPMG the annual growth of department stores
is estimated at 24%. Ranked second in a Global Retail
Development Index of 30 developing countries drawn up by AT
Kearney.

Retail Sales in India


This chart is showing three lines mainly, overall retail sales; food,
beverages and tobacco segment sales and clothing sales. And
here researcher’s focus is on clothing segment. So let now
discuss about apparel industry. As we know apparel is one of the
basic needs of any person. And now in India, either a rural person
or an urban person, all prefer these easy and comfort retail
formats for them. As a research conducted by KPMG/research
firm; in India, in rural segment there is a 61% spending and in
urban market, there is 39% spending.
Indian Organized Retail is set to explode with Food & Lifestyle
retail as major segments

Pharma
Entertainment Durable 2%
1% 10%
Home
3%

Clothing and Textile


36%
Food & Grocery
14%

Health & Beauty


1%

Books, Music & Gifts


3%
Footwear
Watch & Jewellery 13%
17%

And apparel industry is also one of these SBU’s; so definitely


these all things make it more valuable than others.

Global retail sales are estimated to cross US $ 12 trillion in 2007,


reflecting the growth in the world economy, global retail sales
grew strongly in the last five years (2001-06) at an average
nominal growth of about 8 per cent per annum in dollar terms.
This is in contrast to near stagnant global retail sales during the
previous five years, 1996-01. Grocery dominates retail sales with
a share of approximately 40 per cent which varies from about 30
per cent in rich Japan to an average of 60 per cent in poor Africa.
Retail sales through modern formats have been rising faster than
total retail sales; the share of modern retail has risen from about
45 per cent in 1996 to over 52 per cent in 2006.

The growth of the retail trade in India is associated with the


growth in the Indian economy. Gross domestic product (GDP)
grew by an annual rate of 6.6 per cent during 1994-00 but the
growth slackened to 4.7 per cent per annum during the next
three years before the growth remarkably rose to 8.7 per cent per
annum in the last four years. This meant a substantial rise in
disposable income of Indian households since the mid-1990s.
Based on the Market Information Survey of Households (MISH) of
the National Council of Applied Economic Research (NCAER), the
number of people in the income groups of “aspirers” and the
middle class with annual income ranging from Rs. 90,000 to one
million, more than doubled from 157 million to 327 million during
the last decade 1995-96 to 2005-06.3 The data from the Central
Statistical Organization (CSO) indicate that the growth of real
private final consumption expenditure, which dipped from an
average of 5.7 per cent per annum during 1994-00 to 4 per cent
per annum during 2000-03, shot up to 6.7 per cent per annum
during 2003-07. Retail sales (in nominal terms) in the country
also followed a similar pattern: a high annual growth of 13.6 per
cent during 1994-00, a low growth of 4.8 per cent during 2000-03
and a smart pick up in the last four years, 2003-07 at around 11
per cent.

Retail Sector is the most booming sector in the Indian economy.


Some of the biggest players of the world are going to enter the
industry soon. It is on the threshold of bringing the next big
revolution after the IT sector. Although organized retail market is
not as strong as of now, it is expected to grow manifolds by the
year 2010. The sector contributes 10% of the GDP, and is
estimated to show 20% annual growth rate by the end of the
decade as against the current growth rate of 8.5%. A CRISIL
report says that the Indian retail market is the most fragmented
in the world and that only 2% of the entire retailing business is in
the organized sector. This suggests that the potential for growth
is immense. There are about 300 new malls, 1500 supermarkets
and 325 departmental stores currently being built in the cities
across India.

Exhibit – A. GDP, Private Final Consumption Expenditure and


Retail Sales

Growth, 1994-07 (Compound Annual Growth Rate)

1994-95 2000-01 to 2003-04 to


to
2002-03 2006-07
1999-00

Real GDP 6.6 4.7 8.7

Real private final 5.7 4.0 6.7


consumption
expenditure

Retail sales 13.6 4.8 10.9

Traditionally retailing in India can be traced to the emergence of


the neighborhood ‘Kirana’ stores catering to the convenience of
the consumers, an era of government support for rural retail:
Indigenous franchise model of store chains run by Khadi & Village
Industries Commission, 1980s experienced slow change as India
began to open up economy. Textiles sector with companies like
Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the
emergence of retail chains. Later Titan successfully created an
organized retailing concept and established a series of
showrooms for its premium watches. The latter half of the 1990s
saw a fresh wave of entrants with a shift from Manufactures to
Pure Retailers. For example Food World, Subhiksha and Nilgiris in
food and FMCG; Planet M and Music World in music; Crossword
and Fountainhead in books. Post 1995 onwards saw an
emergence of shopping centers, mainly in urban areas, with
facilities like car parking targeted to provide a complete
destination experience for all segments of society. Emergence of
hyper and super markets trying to provide customer 3 V’s - Value,
Variety and Volume. Expanding target consumer segment: The
Sachet revolution - example of reaching to the bottom of the
pyramid.India is on the radar screen in the retail world and global
retailers and at their wings seeking entry into the Indian retail
market. The market is growing at a steady rate of 11-12 percent
and accounts for around 10 percent of the country’s GDP. The
inherent attractiveness of this segment lures retail giants and
investments are likely to sky rocket with an estimate of Rs 20-25
billion in the next 2-3 years, and over Rs 200 billion by end of
2010. Indian retail market is considered to be the second largest
in the world in terms of growth potential. Exhibit –B. India Retail
- Share of Categories (per cent)

2003-04 2004-05 2005-06 2006-07

1. Food & 66.4 62.5 61.7 59.6


grocery

2. Beverages 2 2.7 3.1 3.6

3. Clothing & 7.3 8.8 8.6 9.3


footwear

4. Furniture, 4.8 5.8 6.2 6.8


furnishing,
appliances &
services

5. Non- 9 8.6 8.5 8


institutional
healthcare

6. Sports 2 2.4 2.6 2.7


goods,
entertainment
, equipment &
books

7. Personal 3.5 3.8 3.9 4.2


care
8. Jewellery, 5 5.4 5.4 5.9
watches, etc

Total Retail 100 100 100 100

In Apparel Segment and Merchandise Assortment Planning-

Issues such as what merchandise to purchase and in what


quantity, are of strategic significance to every retailer, especially
for the multi-store retail chains of today. For decisions on these
matters, a thorough plan called a merchandise assortment plan
has to be adopted.

And as clothing is one of the basic needs of every person. So


definitely apparel industry has a wide scope. That’s why right now
many players are operating in this industry and new players are
also coming. So competition is also increasing in this industry day
by day. And as retailing environment is emerging now a days and
Indian economy is also developing so a wide range of fashionable
and trendy clothing is available now and customers have a lot of
options in their hand that’s why it is essential for every retailer to
position themselves as a different and best option for customers.

For every industry, its product range and varieties are the best
way to attract and retain customers. That’s why this concept of
merchandise and assortment planning emerged and now most of
retail organizations focusing on this for being alive in the market.
The retailer must make decisions regarding the merchandise
offered depending on the sales targets and financial objectives of
the store. Merchandise comes in a variety of sizes, colors, makes
and models. Retailers should be very careful while deciding on
the amount of stock to be maintained in each category, if large
stocks are maintained in a particular category, there may not be
sufficient resources left for providing a deeper assortment of
goods. Hence, the retailer should establish a trade-off between
the type of categories or assortment and the inventories being
maintained. This is called merchandise assortment planning.

An assortment plan depicts what should be carried in a specific


category of merchandise. (Exhibit- C) An assortment plan for a
merchandise category based on fashion will not identify particular
stock keeping units, because fashions vary from year to year and
sometimes, from season to season. The more fashion-oriented the
merchandise category is, the more necessary it is for the
merchandise planner to accommodate changes in fashion, and
hence, the lower the level of detail in the assortment plans. The
starting point for developing an assortment plan for a given
season is the historical data for a particular merchandise
category. Apart from the assortment plan for a merchandise
category in the previous season, sales, inventory turnover and
GMROI (Gross margin return on inventory investment) figures are
used to develop an assortment plan for the current season. The
merchandise planner then makes the required changes according
to his expectations of what products or fashions will be really
significant for the coming season.

EXHIBIT: C

Assortment Plan For Boys’ Jeans

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


leg leg leg

Retail 999 1399 1799 1299 1599


price (in
Rs.)

Type of Regular Stone Tinsel- Broken Over dyed


Fabric denim washed Lyera twill
denim based
denim

Colors Light blue Dark blue Light blue Light blue Blue
Black Indigo Black Black Black

Black Deep blue

This plan describes general styles, price levels, fabric composition


and colors. The process of developing an assortment plan can be
quite complex, especially in multi-store chains like Shoppers’
Stop, Pantaloons or FoodWorld. An effective assortment plan
requires equal or more effective sales, inventory turnover and
GMROI forecasts, to complement the experienced judgment of the
merchandise planner.

Need and Scope of study

Need

By identifying the factor crucial to target market retailers could


add more value to the garment value chain by focusing on
specific factors rather that following please all policy. By
identifying the important factors expectation of the customer can
be easily met. So it is required to explore the apparel attributes
that are perceived as important and attributes that please more
to males and females.

Scope

Doaba region of Punjab have been considered to identify the


apparel related attributes that are more important to population
of Doaba region. To represent region respondents from three
major cities will be considered Kapurthala, Jalandhar and
Phagwara.
Review of Literature

As merchandise assortment planning is one important issue for


consideration for apparel retailers, and by this an organization
can gain a high level competitive advantage over their rivals. So
for this research, researcher has to go through-Past
reports/information available on this topic. References books or
study materials for understanding the topic in details.Available
data on internet, through electronic databases.And for this topic,
the areas of literature should be examined are-

The concept of merchandise and assortment(stock keeping units


and categories),

Organizing the buying process by categories,

Category management,

Levels of buying organizations,

Financial objectives,

Gross margin return on inventory investment( GMROI),

Sales forecasting

Product mix trends.

Literature review is important for-

Identify critical issues in literature,

Discuss how different authors works have complement one


another and how they can disagree,

Writing literature review develops research’s focus.

And on this topic, here in Jalandhar before this study, never a


research has been conducted and because Jalandhar is not a big
city so here sources are limited but scope for these type of study
is very huge.
But now here so many apparel outlets are available for making
this research successful like John Players, Adidas, Oxemburg,
Spykar, Reebok, Peter England, Lilliput, Sportking, Gini & Jony,
Monte Carlo, Priknit, Cotton County, Koutons,Gas,Tommy
Hilfiger,Espirit,and many more. So a good research will be
possible on this topic. And my research study is restricted to one
aspect of retail management i.e. Merchandise Assortment
Planning.

Sudhir nagpal in his article Global apparel retailers gear up for


India stated that in Coming 2008 and the $350-billion Indian
retail industry will witness the entry of a slew of international
apparel brands. According to industry sources, Chemistry of the
US, S Oliver of Spain, Splash from the Middle East, as well as
Salamander Design and H&M from Europe are some of the
leading global manufacturers readying to set up shop here. Their
entry will also bring domestic store design in sync with global
trends. Other retailers expected to join the Indian bandwagon are
Promod, Gador, Hogl and Estee Lauder.

These retail majors are likely to tie up with mall developers to


come in as anchor tenants. They could also tie up with domestic
apparel retailers to market their brands, like the recent
agreement between Tata’s Trent and Italy’s Benetton. The arrival
of international style malls will also see new technology and
comfort for shoppers, such as the ‘no-doors’ concept. Besides,
new technologies to lower noise pollution during rush hours could
find their way here, too. Property development consultants say
Indian retail mall developers need to bring in such technologies if
they wish to remain competitive.

Surinder mishra in his article India third most attractive market


for apparel retailers has found thatIndia has emerged the third
most attractive market destination for apparel retailers,
according to a new study by global management consulting firm
AT Kearney.
India comes after Brazil and China in the AT Kearney Retail
Apparel Index, which looks at ten drivers, including apparel
consumption and clothing imports/exports, to rank the top 30
emerging markets for retail apparel investments.

"In India , apparel is the second largest retail category,


representing 10 percent of the $37 billion retail market. It is
expected to grow 12-15 percent per year," said Hemant Kalbag,
principal of Consumer Industries & Retail Practice, AT Kearney
India.

The Authors Jaya Halepete, Marymount University,


Arlington, Virginia, USA K.V. Seshadri Iyer, Akanksa Inc.,
Fairfax, Virginia, USA in their article said that the main
purposes of this paper isto perform a micro- and macro-
dimensional analysis, and to apply the theory of eclectic firm to
understand the investment dimension in the apparel retail
environment in India. A micro and micro analysis of the retail
industry in India was conducted. Eclectic firm theory was then
applied to the analysis to understand the apparel retail
environment in India.

Tarun kumar in his article stated that The arrival of global retail
giants on Indian shores has spurred their unassuming suppliers
based in India even before their setting shop here.

Vadodara-based Goradia group, which makes toothbrushes under


the Jewel brand and several private labels and is among the
largest suppliers toothbrushes to Unilever, Ikea among others,
says it is busy chalking out fresh business strategies with the
announcement of Wal-Mart's entry in Indian market.

The entry of local heavy-weights like Reliance is also a booster.


The Goradia group is hoping to generate 30% of its total
revenues from private labels as compared to about 15% now.

The group is now increasing its focus in domestic market and


newly launched household product category through organised
retailers. Goradia group is also set to launch premium products in
India in different segments.

Sujata Dutta Sachdeva in his study It's time for retail


offshoring to take a leap announced that Everyone knows, how
India's retail sector is poised to take off and we will be among the
top five retail markets in the world in the next 10 years. But that
is only one part of the big story. For making the most of the retail
boom worldwide is another

sunshine sector that is - the IT and ITeS. While global retail


chains are chalking out their India plans, Indian IT firms are
quietly providing them back office and other core support from
here.

Most top retail chains are either outsourcing their work to third
parties in India or opening captives centres here. And it's been
happening for sometime now. For example, UK-based chain
Tesco, has set up a back office - Hindustan Service Centre in
Bangalore - with a headcount of 2,000 people. Target, a US-based
retailer has a captive centre in Bangalore and plans to expand it.
Marks & Spencer, Sainsburys, Best Buy - all have outsourced their
work to India.

Parag Pateria in his research paper

The Future of Organised Retailing in India: A Curtain Raiser The


word 'retail' is extracted from the French word 'retaillier' meaning
'to cut a piece off' or 'to break bulk'. In simple terms it involves
activities whereby products or services are sold to final
consumers in smaller quantities. Although retailing in its various
formats has been around in India for many years, it has been
confined for a long time to family owned corner shops or mom
and pop shops popularly known as kirana shop. Retailing in more
developed countries is big business and better organised than
what it is in India. Report published by McKinsey & Co. in
partnership with Confederation of Indian Industry (CII) states that
the global retail business is worth a staggering US $ 7 trillion.
The ratio of organised retailing to unorganized in US is around 80
to 20, in Europe it is 70 to 30, while in Asia it comes to around 20
to 80. Hence there lies a great scope in India.

Shabshelowitz, Eric in his study Opening for business in India:


retailers' options found from his study thatIndia's retail market is
currently valued at over $250 billion, and reports indicate it is
growing at a rate of ten percent each year. (1) This tremendous
growth is encouraging even Mickey Mouse to enter India's retail
market. (2) Because of recent policy changes encouragingforeign
investment, Disney and many other retailers have leapt at the
opportunity to enter the market. (3) However, foreign retailers
are still limited in their ability to operate in India because Indian
law strictly regulates foreign participation in its retail market. (4)
As foreign retailers formulate their plans to expand into India,
they must consider the allowable modes of operation and identify
which of these options best suit their business needs. (5) This
Note evaluates the various ways in which foreign retailers may
operate retail stores and manufacturing facilities in India. (6) Part
II of this Note introduces some of the reasons foreign retailers are
so interested in India. (7) Part III discusses the legal obstacles
foreign retailers face and recent developments in Indian law
intended to open the country's doors to foreign businesses. (8)
Part IV discusses the allowable modes of operation for foreign
retailers. (9) Part V suggests the optimal choices for foreign
retailers to operate retail stores and manufacturing facilities in
India.

Kala Vijayraghavan & MV Ramsurya in their study Birlas' More


likely to stitch retail plans around clothes biz The Aditya Birla
group is understood to be revisiting the business strategy for its
retail businesses which could result in greater long-term
emphasis on apparel retailing, sources close to the development
said. In a series of review meetings at the Mumbai-based
conglomerate's office, the top management and the retail team
are understood to have taken a relook at the design, positioning
and merchandise offered by More - the supermarket format under
Aditya Birla Retail, which has recently seen slow growth. The
review meeting, which according to group sources is conducted
every six months, was called to focus on challenges that Aditya
Birla Retail has been facing, especially on issues such as
managing the more competitive food & grocery format, and
related challenges such as supply chain , merchandising and
competitive pricing in the face of high operating costs. Aditya
Birla Retail currently has 550 outlets under More and a
hypermarket. At the same time, the group's think-tank seems
keen to increase spends and focus on apparel retail currently
being undertaken by Madura Garments, a unit of Aditya Birla
Nuvo, which has seen a significant jump in sales. Madura
Garments targets all class segments with its multi-price points.

Ak Modi in his Study Of emerging trends in Indian retail market


has suggested.The Indian retail sector is going through a
transformation and this emerging market is witnessing a
significant change in its growth and investment pattern. Both
existing and new players are experimenting with new retail
formats. Currently two popular formats -hypermarkets and
supermarkets are growing very fast. Apart from the brick -mortar
formats, brick -click and click-click formats are also increasingly
visible on the Indian retail landscape. Consumer dynamics in
India is changing and the retailers need to take note of this and
formulate their strategies and tactics to deliver value to the
consumer. This paper investigates modern retail developments
and growth of modern formats in this country. We also discuss
the challenges and opportunities available to the retailers to
succeed in this country.

Sk Sharma et all studied the Indian economy growth for retail


Indian economy has shown an impressive growth of over 6 per
cent for last five years and continues to surge ahead. GDP growth
rate in 2003-04 recorded a fifteen year high of 8.5% and
subsequently maintained a steady growth for the next two years.
Real GDP growth accelerated from 7.5 per cent during 2004-05 to
8.4 per cent during 2005-06 on the back of buoyant
manufacturing and services activity supported by a recovery in
the agricultural sector. The central bank forecasts similar growth
of 7.5-8 percent during 2006-07. With strong economic growth
consumerism is increasing in the country and India is the fourth
largest economy as far as purchasing power parity is concerned,
just behind USA, Japan and China.

BS Goyal in his study has research of consumer trends in retail


market has found that India is currently having the largest young
population in the world and 54 per cent of India’s population is
below 25 years of age and 80 per cent are below 45 years. As per
India’s Marketing Whitebook (2006) by Businessworld, India has
around 192 million households. Of these only a little over six
million are ‘affluent’ – that is, with household income in excess of
INR215, 000. Another 75 million households are in the category of
‘well off’ immediately below the affluent, earning between
INR45,000 and INR215,000. This is a sizable proportion which
offers excellent opportunity for organized retailers to serve.

AK Gupta in his study Retailing in India is currently estimated to


be a USD 200 billion industry, of which organised retailing makes
up 3 percent or USD 6.4 billion. By 2010, organised retail is
projected to reach USD 23 billion and in terms of market share it
is expected to rise by 20 to 25 per cent. The report also predicts
a stronger retailer growth than that of GDP in the coming five
years.

SD Asthana in his study Mall development is phenomenal in


India. The mall mania is spreading fast and entering even the
second tier cities in India. Real estate developers are jumping
very fast to take this further from Metro cities to smaller cities
and corporate houses like ITC and Sriram group are making
steady progress to make this phenomena feasible in rural market
also. There is no denying that the top notch cities like Mumbai,
Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Pune are
leading the way but the second tier cities like Ludhiana,
Chandigarh, Nagapur and Surat are catching the eye of all
retailers. Retail developers are in such a mood that they may
over ride the requirement in a specific city.

Mohan and Gupta (2007) examined the combination of factors


that are important for meeting the expectations of customers.
Different factor have been considered in study that range
between apparel and store attributes. They explained that
retailers can add more value to the garment value chain by
identifying strengths and weaknesses of the store and apparel
related factors and with combinations of these factor apparel
retailers can target their potential customers, like if stores, which
cannot offer travel conveniences can compromise by providing
attractive displays. Likewise stores with constraints on indoor and
window displays can provide travel and shopping conveniences,
personalized attention and services, and repeated satisfaction
and rewards.
Neihm and Yoon (2006) examined relationship of Generation Y
(Gen Y) customers (18-27) shopping orientations and
expectations for retail services. They also explain importance and
impact of service expectations and perceptions on customer
satisfaction and loyalty for apparel in different types of retail
outlets. They discuss that retail services create value and
satisfaction for Gen Y customers and that aid in development of
service strategies and training programs by store outlet. It is
found that customers expected courteous employees most when
shopping for apparel at specialty stores and appealing store
appearance, knowledgeable employees. While purchasing
clothing at discount stores, expectation is for convenient
operation hours, customers feel secure in transactions, courteous
employees and error-free record. This indicates strategic
implications retailers targeting younger apparel customers. Gen Y
customers indicated that they preferred to shop most often for
apparel at specialty stores, followed by department and discount
stores. Gen Y customers also expected more service from
specialty stores, followed by department and discount stores.

Visser, Preez, and Noordwyk (2006) focus on store image


attributes that are perceived as important by female apparel
consumers. From the earlier studies nine dimension of store has
been taken into consideration that are merchandise, service,
clientele, physical facilities, convenience, promotion, store
atmosphere, institution factor, post transactional factor. It is
found that consumers perceive store image attributes as varying
in their degree of importance; secondly, consumer behavior is
related to their perception of the importance of store image
attributes; and finally, different consumer groups (e.g. gender
groups) may vary in their perception of the importance of store
image attributes. It is concluded that merchandise and clientele
were the two most important store image dimensions, while other
dimensions service, store atmosphere, post transaction
satisfaction, promotion, and physical facilities, in this order,
followed in perceived importance.
Scarpi(2006) analyze the relation between hedonic/utilitarian
shopping behavior and a number of key variables, such as store
loyalty, perceived value, purchase frequency, money spent, price
consciousness, age and gender. In this study hedonism has been
measured by examining fun consumer enjoyed during the
shopping trip, like they had a good time while shopping, they
enjoyed being involve in new products, and they enjoyed
shopping.. Utilitarianism has been measured, by seeking that
whether consumers could find what they were looking for; if they
would have been disappointed if they had to go to another shop;
and if they accomplished what they wanted on the shopping trip.

Algie and Korlimbinis (2005) studied upon men’s store


preferences when shopping for fashion and apparel items. It is
found that store layout and design of many retail fashion stores
largely reflects the shopping preferences of female shoppers as
they shop more frequently and have a greater interest in fashion
than men. But owing to increase in young males shopping for
their own clothes their study examined only men’s shopping
satisfaction and store preferences, specifically investigating the
importance (in rank order) of various store attributes to male
shoppers. In study they have taken 11 shopping attributes
related to apparel stores and these are: (1) price of merchandise,
(2) quality of merchandise, (3) friendly personnel, (4) brands
carried in the store, (5) selection of merchandise, (6) sales
service, (7) stock newest fashion, (8) employee knowledge, (9)
convenience to home and (10) charge credit and (11) ease of
finding items. The study found that the most important attributes
for participants when shopping for their own apparel were 1)
price 2) quality and 3) selection of merchandise also in study it
has done comparison of younger and older shopper rank order
preference of shopping attribute.

Gehrt (2004) examined the influence of situational as well as


consumer and retailer factors on preference for retail formats and
show that situational factors have significant influence on online
and catalog format selection and perceptions of attributes that
are very important to that selection. It shows that situational
factors affect retail attribute importance except for the price
factor. Like if shoppers have ample time, the retailer personality
factor is critical, shopping atmosphere, the presence of the right
brands and general familiarity with the retailer are important. On
the other if shoppers have less time, the merchandise factor and
the transaction service factor are critical.

North and Kotze (2003) in their findings explained that apparel


products are composed of many physical characteristics, which
are perceived differently by consumers. When considering a
product purchase, consumers tend to compare and contrast
alternative products made up of different attribute combinations.
Their preferences for items of apparel mainly depend on the joint
influence of price and product attributes such as quality, style,
and brand. Analyses have been done on female consumers’
apparel purchasing decisions, on the basis of the value they
attach to certain product attributes and results indicates that
style is the most important attribute of apparel to women when
making purchasing decisions, with price being the second most
important attribute. It concluded that there is a relationship
between age and style as well as between age and brand.

Paulins and Geistfeld (2003) studied consumer perceptions of


retail store attributes to determine their effect on store
preference, it is found that four variable affects the most store
preference type of clothing desired in stock, outside store
appearance, shopping hours, and advertising. Along with this it
found relationship between customer perception of store
attributes, education and age. It has taken set of attributes of
stores included: advertising, appeal of clothing in the store,
displays, dressing rooms, ease of location of merchandise,
layaway plan, outside appearance, parking, prices, rest rooms,
return policy, sales assistance, shopping hours, and store location
And it had found that different attribute effects preference for
different stores, like consumers tend to be more critical of store
attributes as education increases, consumer are willing to
sacrifice some store attributes when they receive lower prices
Mattila and Wirtz (2001) examined the importance of store
environment in enhancing shopping experience, using effects of
many pleasant ambient stimuli such as music and scent. They
manipulated scent and music in a 3 (no music, pleasant low
arousal and high arousal music) by 3 (no scent, pleasant low and
high arousal scents) factorial design in a field setting and result
show that when ambient scent and music are congruent with
each other in terms of their arousing qualities, consumers rate
the environment significantly more positive, exhibit higher levels
of approach and impulse buying behaviors, and experience
enhanced satisfaction than when these environmental cues were
at odds with each other.

Moye (2000) examined the influence of selected environmental


dimensions on store patronage using specific apparel shopping
scenarios. Past retail and marketing studies have identified
several consumer-oriented store attributes such as price, quality,
variety, discounts, store reputation and their relationship to store
patronage, but these studies ignores how the physical
environment affects retail store patronage. In study various
environmental dimensions have been considered like
temperature, air quality, lighting, noise, scent, music, layoff,
flooring, fixture, signs, style of décor, et al. The Bargain

Apparel Shoppers had higher mean scores on the environmental


factors than the other shopper groups. With regard to first store
choice, the department store was chosen most often as first store
choice because of environmental factors.

Darley and Su Lim (1999) examined the effects of store image


and general attitude toward secondhand stores on “shopping
frequency” and “distance traveled”. Shoppers who held more
favorable store specific attitudees and had a positive quality-
availability perception were more likely to shop at a secondhand
store and to travel longer distances to patronize that store. It has
taken three hypotheses that more favorable store image, more
frequently an individual will shop at a secondhand store.
Secondly, more favorable an individual’s quality-availability
perception, the more likely the individual will shop frequently at a
secondhand store. Finally, more favorable one’s attitude toward
secondhand stores, the more frequently an individual will shop at
a secondhand store. It has find that consumers who frequently
shop at a secondhand store are more favorably inclined toward
that specific store and its merchandise quality and when there is
more favorable quality-availability perception and store image
they were more willing to drive the extra distance to patronize
their store.

RESEARCH PROBLEM/OBJECTIVES OF THE STUDY

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


of a Management Thesis is to train the student in designing and
implementing a research project in respect of a business
problem. A Management Thesis is the culmination of training
provided to the student on practical applicability of the
theoretical concepts learned by them. Apart from this objective
the other objective related to the project study is given below.

The study was performed aiming at the following objectives:

Objective of the study-

Understanding the merchandise assortment planning concept and


process adopting by apparel outlets at Jalandhar.

To study about customer’s preferences towards it.

To analyze product requirement of consumers from provision


store, superstore etc. with frequent use.

And apart from these all stated objectives my first and foremost
objective was to acquire the practical knowledge about the
Merchandise Assortment Planning like how these retailers do this
process for their survival and how they fulfill demands of
customers.

LIMITATIONS OF THE STUDY

Time constraint- The major limitation of this project is the time


period for this thesis because it is not possible to look in to each
and every aspect of Merchandise Assortment Planning in such a
short span of time.

Because all research is related to Jalandhar only and here a


limited scope is available for these types of studies.

People whom data will be collected can be biased on some time


and because of lack of awareness and lack of knowledge people
can give wrong opinions.

Since the results will draw on the basis of Information which will
be provide by the respondents; chance of response error might
possible. Disinterest of customers may generate non response
while collecting data.

BENEFITS

To Self-

Knowledge earning.

Gaining practical exposure to Merchandise Assortment Planning.

Gain knowledge about customer preferences.

To companies-
This report will be beneficial for companies and outlets too
because from this report they get to know about their customer’s
preferences.

From this report they will get the knowledge about required
changes in their strategies and customer base.

To customers-

They will get to know about retailer’s strategies and their work
process.

From this report they can say their views and their opinions about
these retailing strategies, so it is beneficial for them to make all
required changes in system.

RESEARCH METHODOLOGY

For the perfect thesis one has to know each and every aspect of
the concept thoroughly. And then for merchandise assortment
planning one has to get update with the latest trends and all
factors which are continuously affecting these decisions. So
acquiring the data regarding this I gone through by several things
like:

Books;

Magazines;

Journals; and
Web site.

In order to understand the merchandise assortment planning


process, as per the objective stated, the various steps which are
to be followed are given below:

Planning the research design.

Selecting the research method.

Selecting the sampling procedure.

Data collection.

Evaluating the data.

Preparing and presenting the research report.

RESEARCH DESIGN

Research design essential because it facilitates the smooth flow


of various research processes. In order to get the appropriate
results on a clearly defined research topic, the design chosen by
the research is exploratory in nature.

Exploratory studies: This research is carried out to make the


problem suited to more precise investigation or to frame a
working hypothesis from an operational prospective. It is not used
in case where definite result is desired as in our research case
where only impact is to be studied.

This research can be conducted using both qualitative and


quantitative technique.

As a part of exploratory studies the secondary data is being


collected since this topic is very highlighted in all over India and
the sector growth is also very rapid. On the basis of that in
Jalandhar context this research is an attempt to know the
perception of Jalandhar people and the apparel store retailers.
RESEARCH METHOD

After developing an appropriate research plan, it is important for


the researcher to select a proper research method. For this
research, the research method chosen by the researcher are
secondary data and survey methods.

Secondary data studies: This is concerned with the analysis of


already existing data that is related to the research topic in
question.

Surveys: This is a research technique, which is used to gather


information from a sample of respondents by employing a
questionnaire.

These surveys will be conducted among the:

Apparel store retailers,

Customers,

And all the sources I got to know by the proper guidance and
immense knowledge and experience of my faculty supervisor. So
these are the main sources of my project study.

SAMPLING PROCEDURE

Sampling is generally a part of the research design but is


considered separately in the research process. Sampling is a
process that uses a small number of items or a small portion of a
population to draw conclusion regarding the whole population.
For this research the sampling method chosen is simple random
sampling and Convenient Sampling.Since in Jalandhar only few
organized apparel outlets is their so the unorganized retailers
also being chosen for interviews and customers are chosen at
random.

Sample Size: Sample size is around 13 for apparel outlets to


study their merchandise assortment planning and around 100 for
customers to understand their preferences.
Sampling Unit: John Players, Adidas, Oxemburg, Spykar,
Reebok, Peter England, Lilliput, Sportking, Gini & Jony, Monte
Carlo, Priknit, Cotton County, Koutons Gas,Tommy Hilfiger,Espirit,

Sampling Area: Jalandhar City.

DATA COLLECTION

After preparing a suitable sample, the researcher collects the


data from the units in this sample. As stated above that research
method which will be used in the research comprises of surveys
therefore data collected will be of primary in nature and partly
secondary since secondary data will also be taken.

EVALUATING AND ANALYSING THE DATA

This step includes editing, coding, tabulation and processing of


collected data. The Schedules are required to be edited during
the field survey for necessary corrections. After the survey was
complete they are required to be checked again for
completeness, accuracy and uniformity.

The next step was coding. Different categories were identified


into which responses are classified. Then tabulation was done.
Data was sorted into different categories and numbers of cases
that belong to those categories were counted.
PROCESS FLOW OF THE PROJECT

DESIGN OF QUESTIONNAIRE
PILOTING BASED ON
QUESTIONNAIRE AFTER
FEEDBACK

REDESIGN THE
QUESTIONNAIRE

QUALITY CHECK

GETTING QUESTIONNAIRE
FILLED

CORRECTION OF DATA

DATA ENTRY

DATA CLEANING

ANALYSIS

FINDINGS, RECOMMENDATIONS
& CONCLUSION
EMPIRICAL ANALYSIS
Growing economy, globalization, retail trends, increasing income
levels, healthy life-style, technical advancement; these are some
of the factors which are continuously affecting every business
segments. So we can say this is a golden period for business
world. But on the other side because of increasing competition,
inflation, high customization; these business persons are finding
some new and effective ways to overcome these problems. And in
apparel segment, it is world’s biggest business industry. Clothing
is one of the basic needs of a common person. So in every
circumstance, this is a sector which is definitely going to make
profit.

And it will increase more and make a brand leader of this


segment only by adopting some latest strategies i.e. Merchandise
Assortment planning.

As researcher have taken interviews from some executives from


various apparel outlets, from that collected data he analyzed
that-

About retailers-

Retailers are very much aware about this and they are making
their all strategies according to it.

There are so many factors which came in front of taking these


decisions i.e. price, quality, fashion/trends, looks, brand name.
And after considering these all, retailers choose the best product
mix for their outlets.

And it is not a story of only big giants, even small players and
traditional shopkeepers also now adopting these strategies to
attract and retain customers.

Now a customer can find all those features and product which he
thinks, in a single store only because of these planning. For
example, in a single outlet a range of various styles in various
sizes in various colors product is available. (apparel segment)
Before these decisions a retailer considers so many other factors
too like sales targets, financial objectives etc.

In merchandise assortment planning, for these retail outlets,


apparel companies are also providing support to them so that
they can make profits for themselves and for company too.

Basically apparel industry is based on latest fashions and trends.


And fashion remains for a little time of period. So it is too difficult
to keep a wide number of verities in their stores for retailers. As
fashion become outdated their stock of inventory will become
waste. So they are very much considering merchandise
assortment planning and other benefit providing by apparel
companies to them. If it happened that fashion will become
outdated then companies will also provide full support to these
outlets and they share loss also with them.

Customer’s preferences about it-

The main thing which researcher found about customer’s


perception about it that they said, “When we wear any branded
apparel then automatically they feel a sense of satisfaction, a
sense of grace in them.” Said by Sukhkit Sandhu and Rajdeep
Gill.

And Mr. Gagandeep said they prefer mainly the discounts or any
offers in outlets. According to him because now in market all
companies are providing a good and similar quality, so why not
we go for a discount store.

A tea-staller in front of Peter England outlet, Mr. Pappu said he


also wears Peter England shirts and the store owner also provides
him a high rebates for it and in this he feel more confident.

Mr. Deepak Bhardwaj said he prefer the goodwill/ brand name for
purchasing any new apparel. As he said he prefers Peter England
and John Players more than Koutons or Cotton County.

Miss Anisha said when John Players launched their new segment,
Miss Players, from that time she prefers Miss Players outlet for a
new purchase.
And according to Mr Suresh, because of Hrithik Roshan, as a
brand ambassador of John Players, he also prefers John Players.

Different customers have their own demands and needs so their


preferences also varied from each other.

But mostly youth/college going young boys n girls of Jalandhar


prefer Spykar,Kapsons and No exit Outlet for apparel purchase.

While young business persons and professionals prefer John


Players and Peter England for apparel purchase.

And in children’s segment, a surprising result came after research


that is mostly parents prefer traditional outlets for children’s
apparel purchasing. Because in these outlets, they will found
more varieties and apparel categories then a branded outlet and
they can make here a high bargaining also.

But if we see overall result, so today even so many branded


outlets are here in market then also mostly people prefers
traditional outlets for purchasing apparels. One thing is that also
these branded clothing is available in these unbranded outlets
too and on these unbranded outlets, customer found these
clothing at much cheaper rate then their own brand’s outlet.
(Mostly people think this)

So researcher analyzed so many important and some funny


aspects also but these all analysis shows the booming stages of
retailing in India. And for these retailers so many things are
important for making profits as brand name, brand ambassador,
quality, price, displays/advertising, discounts and categories of
merchandise. And researcher found that Merchandise assortment
is a vital need for them. After adopting these strategies now they
are feeling the change in terms of customer base, in terms of
brand equity, in terms of profits and in terms of happiness.
Findings &
Suggestions

FINDINGS AND SUGGESTIONS


As for this topic, there are two type of hypothesis can be
possible, i.e.-

Null Hypothesis- Merchandise assortment is essential part for any


retailer for gaining competitive advantage & customers are
satisfied and they have positive perception towards it.

Alternative Hypothesis- Retailers can ignore it and customers also


have negative perception towards it, they are not satisfied with it.

Data collected after survey-

Researcher went to all those sample units for collecting data and
found data from direct interviews and surveys from customers
and retailers.

Questionnaire for Retailers-

Q.1. Tell me something unique about your outlet and brand and
about your vision and mission?

Ans.- For answering this questions, all retailers told about their
own outlet’s specialties.

As John Players and Peter England have a good name in formal


apparels and they have a good brand name also.

While on other side Adidas, Reebok, Spykar, Oxemburg,Lee


,Lewis,Wrangler have a huge impact on youths, they are named
as fashionable and casual apparel brands.

And on other side some brands are there, those focuses on all
family apparel needs like Sportking, Monte Carlo, Priknit, Cotton
County, Koutons.
Same as Gini & Jony and Lilliput focuses only on children’s
apparels.

So these all apparel outlet have their own identification in market


by their own brands, their own products features, varieties. And
these all things give them competitive advantage and customers
are also satisfied with them.

Q.2. Which is your target market and what you doing to capture
it?

Ans.- As given in above question’s answer, these all retailers


have their own target markets and their all efforts are focused on
capture as high market share as possible.

Formals John Players, Peter England

Casuals Adidas, Reebok, Spykar, Lee,


Lewis,Wrangler,Gas,Tommy
Hilfiger

All family apparel Sportking, Monte Carlo, Priknit,


market Cotton County, Koutons,Lee
solly,

Children’s market Gini & Jony, Lilliput

And they are adopting so many strategies for it, like pricing
strategies, promotional strategies and most important
merchandise assortment planning decisions.

Q.3. Before taking decisions about your product varieties and


range (Merchandise Assortment Planning), what factors you
considered?
Ans.- For selecting what and how much merchandise they have to
purchase and they have to keep in their organization, they
considers mainly-

Financial Objectives

Customer’s preferences and demand

GMROI figures

Retail brand’s image and good will

Seasonal demand and fashion

Q.4. Is there any proper strategy you are adopting for these
decisions?

Ans.- Some stores have their own strategic plans for capturing
market and company’s management also helps these store
owners in strategic planning. As all brands have their own vision
and mission so mainly these apparel store owners also adopting
same strategies for them. But as all customers have their own
specialties so these retailers also have to change their strategies
according to their own localities.

As these retailers are getting their own sales plan for every year
and for every month from companies. Then they make some
modifications in the plan according to the local circumstances.

Q.5. Is it important to make a prior planning or strategy for


merchandise decisions? And if yes then why?

Ans.- Without any planning or strategy, we can do any work but


for be assure about the work’s success we should make some
planning or strategies. Same is applicable in business context
also. And merchandise decision is not a small aspect for any retail
organization. Merchandise is the most important part for apparel
industry. It shows the image of the company, the vision of
company, customer’s satisfaction or dissatisfaction.

So for create a good image in customer’s mind and for capturing


most of the market share, they have to make a prior planning.
Q.6. Are you facing any kind of problems or difficulties for these
decisions and planning because I think in a city like Jalandhar, it
is not possible to keep a deep variety and we can’t keep a
limited range of variety also because of quickly changing
customer’s preferences and competition?

Ans.- Yes this thing is also very important for any apparel retailer.
Sometimes because of brand’s image and influencing customers
they have to keep that merchandise also which have no demand
in market but often they prefer only that merchandise which has
demand in local market.

Q.7. Are all decisions related with your outlet’s merchandise are
independently taking by you or is there any interference or
support by company’s side also?

Ans.- As in above questions’ answers given, local retailer got


support from company side too for their strategies and planning
and they make some changes according to the local
circumstances.

Q.8. Do you think your plans are going well according to your
expectations?

Ans.- Well, this is the question on which researcher found


different approaches from retailers. As John Players, Peter
England, Adidas, Reebok these are some of the outlets, which
have a range of products of high prices. So in Jalandhar normal
customers don’t prefer these types of clothing because of its high
prices. And others retailers as Cotton County, Priknit, Koutons
have low range products also and people of Jalandhar like these
products much so they are enjoying profits more than high price
showrooms

Questionnaire for Customers-


Q.1. From where you prefer to buy apparels-

Any traditional store (unbranded) or

A branded retail outlet.

Ans.- Mostly people from Jalandhar prefers unbranded and


traditional stores more.

62 people from total 100 customers said this. And others prefer
branded clothing.

Q.2. What factors you are considering before taking any apparel
purchasing decision, most-

Price,
Variety

Quality

Looks

Fashion/trend

Ans.- As research is being conducted in Jalandhar so, here most


people prefers less price items means price factor is most
important thing for them. And they can compromise with quality
but they want fashionable and good looks items.

Q.3. Are you satisfied with the services and varieties of products
provided by these apparel outlets?

Highly Satisfied
Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Ans.- Important thing is that they are getting large categories


with low prices because of high competition. So customers are
satisfied with all these retailing scenario because it is in favor of
them

.
Q.4. Which apparel outlet you prefer most for buying clothing?
(To college/school going youths.)

Spykar

Tommy Hilfiger

Adidas

Reebok

Sportking

Monte Carlo

Koutons

Cotton County

Or any other organized or unorganized retail outlet

Ans.-

Q.5. Which apparel outlet you prefer most for buying clothing?
(To young professionals.)

John Players

Peter England

Koutons

Cotton County

Monte Carlo

Or any other organized or unorganized outlet

Ans.-
Q.6. Which apparel outlet you prefer most for buying clothing?
(For children apparel purchasing)

Lilliput

Gini & Jony

Or any other organized or unorganized outlet

Ans.
Q.7. Do you think in organized retail store, a customer have less
opportunities for bargain, less number of choices, high prices,
less knowledge and so many other negative factors?

Yes

No

We can ignore them.

Ans.-
Q.8. Then what you think is this new retailing scenario good for
India? As in India, literacy rate is so low, people are not so much
aware about new retail concept. So in this time is it has a good
future in India or not?

Yes, definitely

No, not at all

Can’t say anything now, let see in future.

Ans.-
Q.9 So do you want to keep your loyalty with your favorite brand
or can switch?

Brand loyal,

Nothing like loyalty, just like this brand (on the base of past sales
and observation) but can switch if found any other good option,

Any brand no matter; just it should satisfy their needs.

Ans.-
Q.10. If you have to give marks to your favorite brand from out of
10, then how much will you give?

Ans.

MARKS NUMBER OF CONSUMERS


GIVEN MARKS IN THIS
CATEGORY

10 19

9 21

8 12

7 16

6 11

5 7

4 6

3 5

2 3

1 0
MARKSGIVENBYCONSUMERSTOTHEIRFVORITEBRANDS

0
2 3
3
4 6
7
MARKS

6 11
16
8 12
21
10 19
0 5 10 15 20 25
NUMBEROFCONSUMERS
Conclusio
n
CONCLUSION:

From all findings collected by researcher, he reached to the


conclusion that in this quick-moving environment, now retailers
also have realized that they need to work strategically for their
survival. That’s why now they are taking merchandise assortment
decisions seriously and spending their time and efforts for it.

And it is vital for them to consider it also before doing any


business. It is not only for apparel industry but now for every
business segment it is necessary. Today’s scenario has totally
changed from past. Now market is totally customer-centric and
highly competitive. So if any company wants to alive here and
wanna a long-term business then they have to fulfill all demands
of customers and follow all required patterns either it is a big
giant or a small business unit.

That’s why in a city like Jalandhar also, retailers are very much
aware about these things and they are doing their business
according to it. And here also customer can get all those qualities
and varieties which before some years they were only thinking in
dreams or watching in TVs, Movies. Now all branded items
available here only because of emerging market situations and
customer-friendly market.

And if we talk about favorite brand of Jalandhar people then on


the base of research findings, we found that-

Spykar is most famous between college/school going youths.

John Players is most favorite brand for Professionals.

And in children’s segment, parents prefer traditional outlets


mostly.

And all other brands are still there in market and fighting each
other for attracting more and more customer market towards
them. And this high retailing scenario affects traditional
unorganized outlets business too and now they are also giving a
high competition to these organized retailers.

So for keep their presence with a great margin of profits also, all
organized and unorganized retailers are facing a high cut-throat
competition with each other. Here same famous Darwin’s Law (on
Evaluation Theory) is applicable on retailers also,”the most
powerful and quick updating creature, according to the
circumstances will remain alive and others who couldn’t adopt
themselves according to the changing environment, will be
finished.”

But ultimately these all things are going in favor of customers


and customer will be benefited at last.
Appendic
es
APPENDICES

Appendix-1

Questionnaire for Retailers- As this project study is totally


based on detailed research on topic Merchandise Assortment
Planning so here researcher has used open ended and free
response questions in questionnaire, those ares-

Tell me something unique about your outlet and brand and about
your vision and mission?

Which is your target market and what you doing to capture it?

Before taking decisions about your product varieties and range


(Merchandise Assortment Planning), what factors you considered?

Is there any proper strategy you are adopting for these decisions?

Is it important to make a prior planning or strategy for


merchandise decisions? And if yes then why?

Are you facing any kind of problems or difficulties for these


decisions and planning because I think in a city like Jalandhar, it
is not possible to keep a deep variety and we can’t keep a
limited range of variety also because of quickly changing
customer’s preferences and competition?

Are all decisions related with your outlet’s merchandise are


independently taking by you or is there any interference or
support by company’s side also?
Do you think your plans are going well according to your
expectations?

So at last if you wanna anything to change or wanna something


should be like that way which you want then you can say me?

Appendix-2

Questionnaire for Customers-

1)From where you prefer to buy apparels-

Any traditional store (unbranded) or

A branded retail outlet.

2)What factors you are considering before taking any apparel


purchasing decision, most-

Price,

Variety

Quality

Looks

Fashion/trend

3)Are you satisfied with the services and varieties of products


provided by these apparel outlets?

Highly Satisfied

Satisfied

Neutral
Dissatisfied

Highly dissatisfied

4)Which apparel outlet you prefer most for buying clothing? (To
college/school going youths.)

Spykar

Oxemburg

Adidas

Reebok

Sportking

Monte Carlo

Koutons

Cotton County

Or any other organized or unorganized retail outlet

5)Which apparel outlet you prefer most for buying clothing? (To
young professionals.)

John Players
Peter England

Koutons

Cotton County

Monte Carlo

Or any other organized or unorganized outlet

6)Which apparel outlet you prefer most for buying clothing? (For
children apparel purchasing)

Lilliput

Gini & Jony

Or any other organized or unorganized outlet

7)Do you think in organized retail store, a customer have less


opportunities for bargain, less number of choices, high prices,
less knowledge and so many other negative factors?

Yes

No

We can ignore them.

8)what you think is this new retailing scenario good for India? As
in India, literacy rate is so low, people are not so much aware
about new retail concept. So in this time is it has a good future in
India or not?
Yes, definitely

No, not at all

Can’t say anything now, let see in future.

9)So do you want to keep your loyalty with your favorite brand or
can switch?

Brand loyal,

Nothing like loyalty, just like this brand (on the base of past sales
and observation) but can switch if found any other good option,

Any brand no matter; just it should satisfy their needs.

10)If you have to give marks to your favorite brand from out of
10, then how much will you give?

Ans. - ……………………………………………

Do you wanna anything change in their operations or wanna


something more from them then you can tell me?

Appendix-3

Assortment Plan For Boys’ Jeans

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


leg leg legTight
bottom

Retail 999 1399 1799 1299 1599


price (in
Rs.)

Type of Regular Stone Tinsel- Broken Over


Fabric denim washed Lyera twill dyed
denim based
denim

Colors Light Dark blue Light Light Blue


blue blue blue

Black Indigo Black Black Black

Black Deep
blue

Figure: Assortment Plan for Boy’s Jeans at Spykar

Source: Data collected from Spykar team.

Appendix- 4

Ladies Wear

An item of apparel in order to protect regular


Apron clothing. Generally made of cotton & may be
decorative. It is fastened at the back using straps.

It is a wrap around robe styled with long sleeves, a


Bathrobe shawl collar held by sash at the waist. Generally
made of terry cloth.

Clothing for the upper part of the body made


Blouses generally of soft cloth & less tailored than a shirt
May be embroidered with or without front opening.

A fitted under garment worn by women to hold &


mould breasts, usually consists of two cups & held by
Bra
straps & elastic at the back. May be of cotton or p/v
material.

Panties Apparel item for women worn under the outer


garment covering torso below the waist. May be
laced or without lace. With elasticated waistband.

This is a short length blouse with straight top and


Camisole
broad shoulder straps.

This is a sleeveless outer garment of various lengths


Cape cut in full circle, in a segment & may have slit for
arms & may have front opening.

Named after 7th earl of cardigan, generally it is a


Cardigan knitted item which is open with ribbed cuffs & hem.
May be half or full sleeves.

One piece garment which has a foundation with firm


support achieved by boning. Sometimes has an inner
Corset
belt which helps to flatten abdomen & to shape the
figure.

Dresses It is a main item of apparel worn by women & girls. It


Knitted & may be made in one or two pieces & joined at the
Woven waistline may be front or without front opening.

Basically elastic straps to hold the hose. These straps


Garters
connect at waist line to an elastic band around waist.

Designed to be worn over other clothing generally


hip length. Mostly the coats are with set- in sleeves
Jacket/Coat
& the classic coats are generally fully lined & front
open.

Knitted/
A set of garments other than suits made up of same
Woven
fabric. This set covers upper & lower part of body.
Ensemble

Knitted apparel item which is fitted and in one piece


Leotards with tail which snaps between legs. Usually meant
for dancers & acrobats.

Made from light weight fabric & worn while sleeping.


Night Dress Generally it is decorated and may have pleats or
gathers with small / delicate print motifs.

Overall Pants with a bib top & suspender straps over the
shoulder which close at the back.

Introduced during the 1930's for winter sports, this


Parka garment is a pull-on jacket with an attached hood &
may have distinctive style features. .

It is an under garment for girls/ women starting at


Petticoat the waist. Depending on over garment it may be full
or narrow, lace trimmed, tailored long or short.

Designed to be worn during rainy season & made up


of water proof material or fabric with special surface
Raincoat
finish to make it water repellent. It is generally front
open with attached hood.

One piece sport suit or jump suit with shirt & shorts
Romper or bloomer joined by waistline seam. May have
elasticized waist.

Apparel for the upper part of the body. Usually worn


with pants & buttoned right over left for women.
Shirts
Attached with collars in different styles such as
button down or cut away & worn casually or formally.

Similar to shirt, but this item is meant for casual


Shirts With
wear with zip opening in front. May be with or
Zipper
without hood & with or without sleeves.

Pants shorter than knee length mainly worn by adults


Shorts
& children for sports and/ or casual wear.

Separate item of clothing starting above or from the


natural waistline. May be full knee or mini length.
Skirts This item of apparel is generally neatly tailored with
zip or button opening. May be pleated or wrap
around.

Undergarments worn by women starting from bust &


Slips generally held in place by shoulder straps. Length
can vary according to the length of the dress.

Swim-Suit As the name suggests it is an outfit designed for


swimming or sun bathing, two pieces or one piece.
This outfit reveals more body as top is similar to
brassier & the other piece similar to panties.

Knitted, pullover sport apparel made in any colour,


T-Shirt frequently screen printed. May be crew neck or polo
neck & with ribbed collor & cuffs.

Designed to cover lower torso & made to fit around


Trousers each leg. Usually made with waistband & fly front or
button closing.

An item of apparel of waist length worn over shirt or


Waistcoat under a suit jacket usually made of cotton / silk with
or without embroidery with back part in satin fabric.

Generally light weight nylon jacket, zipped front with


Wind
close fitting elastic waistband & cuffs or drawstring
Cheater
waist often with attached hood

Appendix-5

Men's Wear

Hip length jacket with drawstring hem & waist with zip
Anorak front. Often quilted or fur lined, designed for cold
weather.

It is a wraparound robe styled with long sleeves, a


Bathrobe shawl collar held by sash at the waist. Generally made
of terry cloth.

Jacket with a low waist line & usually shorter than hip
Blouson length and gathered into flat waistband or pulled by
drawstring.

Shorts with elasticated waistbands similar to those


Boxer
worn by boxers & often printed in interesting motifs
Shorts
made up of cotton or synthetic material.

Coats, generally of hip length with full front opening.


Carcoat May be single or double breasted with long sleeves.
These are utility coats comfortable for driving.
Named after 7th earl of cardigan, generally it is a
Cardigan knitted item which is open with ribbed cuffs and hem.
May be half or full sleeves.

Night
Styled for sleeping time and worn over night suit. It is
Gown /
generally made of silk or cotton. With string fastening
Dressing
at the waist.
Gown

Sleeping outfit generally made of cotton. The shirt


Night Suit being front open and loose fitted while pants are with
drawstring waist and wide bottom.

Men's coat, heavier than topcoat and designed for


Overcoat very cold weather. Often fully lined, with fur or
without fur.

Knitted apparel item- round, crew or V-neck pulled on


Pullover over the head. May be in interesting knit structures
such as purl, cable, and jacquard.

Apparel for the upper part of body. Usually worn with


pants & buttoned left over right for men. Attached
Shirts
with collars in different styles such as button down or
cut away & worn casually or formally.

Pants shorter than knee length mainly worn by adults


Shorts
& children as sportswear and casual wear.

As the name suggests, it is generally worn for winter


sports especially for skiing. It may be a jumpsuit or
Skisuit two piece suit. Trousers are medium width with
knitted band at the ankles. Jackets may be quilted
with nylon insulation which is added for extra warmth.

Knitted, pullover sport apparel made in any colour,


T-Shirt frequently screen printed. May be crew neck or polo
neck & with ribbed collar & cuffs.

Track Suit Outfit designed for exercising, popularized in 60's.


Consisting of zippered jacket and loose pants with
elastic waistband. This suit is generally made up of
fleece or velour.

Designed to cover lower torso & made to fit around


Trousers each leg. Usually made with waistband & fly front or
button closing.

It is an under garment generally tight fitted & made


Under Pants up of stretch fabric/ knitted fabric with elasticated
waistband.

An apparel item of waist length worn over shirt or


Waistcoat under a suit jacket. Usually made of cotton/ silk with
or without embroidery with back part in satin fabric.

Generally light weight nylon jacket. Zipped front with


Wind
close fitting elastic waistband & cuffs or drawstring
Cheater
waist, often with attached hood.

Basically one piece garment and with functional


Workwear features. It is mainly for industrial use & made up of
heavy fabric without any fancy features.
REFERENCE
S

REFERENCES

List of books and articles-

Retail Management, ICFAI University Press,


Business Research Methods, ICFAI University Press,

Case studies in Retail Management (Volume-2), ICFAI University


Press

Nordstrom’s Perpetual Inventory System, Page No. 245-260

Turnaround of JC Penney, Page No. 261-274

Big Bazaar: Serving the Classes, Page No. 275-276

Retail Management Review, ICFAI University Press

Cases of Retail Management, Prentice-Hall Publications.

Retailing Environment in India, Tata-McGraw Hill Publications.

Retail Managemen,lewin

Journals:

Algie, J. & Korlimbinis K. (2005), “Improving The Store Design Of Male Fashion
And Apparel Retailers”, ANZMAC conference,
http://smib.vuw.ac.nz:8081/WWW/ANZMAC2005/cd-site/pdfs/4-Retailing/4-
Algie.pdf [viewed on 05/03/09]

Darley, W.K. & Su Lim, J(1999), “Effects of store image and attitude toward
secondhand stores on shopping frequency and distance traveled”,
International Journal of Retail & Distribution Management, Vol.27, pp311-318

Gerth, K.C. (2004), “Situational, consumer, and retailer factors affecting


Internet, catalog, and store shopping”, International Journal of Retail &
Distribution Management, Vol.32, pp5-18

Mattila, A.S. & Wirtz, J. (2001), “Congruency of scent and music as a driver of
in-store evaluations and behavior”, Journal of Retailing

www.accessmylibrary.com [viewed 05/03/2009].


Neihm, L.S. & JinMa, Y. (2006), “Service expectations of older generation Y
customers; An examination of apparel retail settings”, Managing service
quality, Vol.16,Issues 6,pp620-640

North, E.J. & Kotze, T (2003), “The importance of apparel product attributes
for female buyers”, Journal of family Ecology and Human sciences, vol. 31

Paulins, V.A. & Geistfeld, L.V. (2003), “The effect of consumer perceptions of
store attributes on apparel store preference”, Journal of Fashion Marketing
and Management, Vol. 7, pp371-385

Scarpi, D. (2006), “Fashion stores between fun and usefulness”, Journal of


Fashion Marketing and Management, Vol. 10, pp.7-24

Visser, E.M., Prez, R.D. & Noordwyk, H.J. (2006), “Importance of apparel store
attribute: Perception of female customers”, Journal of Industry psychology,
vol. 32(3), pp.49-62

Mohan, R. & Gupta, C. (2007), “Customer preference patterns in apparel


retailing in India”, Asia pacific retail conference

www.cygnusindia.com/pdfs/TOC-Indian%20Retail%20Industry.pdf[viewed on
25/02/09]

Moye, L.N. (2000), “Influence of shopping orientations, selected


environmental dimensions with apparel shopping scenarios, and attitude on
store patronage for female consumers”
http://scholar.lib.vt.edu/theses/available/etd-03022000-
13200029/unrestricted/part12.pdf [viewed on 2/03/09]

List of websites articles-

www.google.com

www.wikipedia.com

www.johnplayers.com

www.koutonsindia.org

www.cottoncounty,com

www.customerresearch.com

www.researchindia.org

www.adidas.com

www.priknit.com

www.rbk.com

www.lilliput.com

www.oxemburg.com

www.montecarlo.com

www.answers.com

www.managementjuice.com

www.businesscases.com

www.prenticehall.com

http://www.indiainbusiness.nic.in/
GLOSSAR
Y
GLOSSARY

Administrative Management Problems- The problems related


to the resources retail firms, chiefly, financial, human and
locational resources.

Advertising Effectiveness- The degree to which the


advertisements have produced the desired results of helped the
retailer accomplish its advertising goals.

Allowances- The additional discounts and price reductions that


are given to customers by the retailer.

Analog Model- It is used to estimate the potential sales of a new


store on the basis of the revenues of existing stores in identical
areas, the competition at a prospective location, the expected
market share of the new store at the proposed location, and the
size and density of the primary trade area of the location.

Balance Sheet- It is a snap shot of the financial position of the


retailer at that moment of time. The balance sheet consists of
three components Assets, Liabilities and Owner’s equity (Net
Worth). The balance sheet is based on a simple concept, i.e., in
order to acquire assets, a firm (retailer) must pay for them with
either debt (liabilities) or with the owner’s capital (shareholders’
equity).

Chain Stores- Stores that have two or more retail outlets that
are commonly owned and controlled. These stores have a
centralized buying, and merchandising system and sell similar
lines of merchandise.

Combination Store- A blends of a super market and a general


merchandise store, where the general merchandise contributes
more than 40 percent of the sales.

Customer service- A set of activities and programs taken up by


a retail organization to offer their customers a rewarding
shopping experience.

Customization- The production of individually customized


merchandise at the cost of a mass produced product.

Destination Store- Store that has larger trading area than a


competitor with a less unique appeal. It offers a better product
assortment, have heavy promotions, and a stronger image.

Everyday low pricing (EDLP)- A version of customary pricing,


whereby a retailer strives to sell its good and services at
consistently low prices throughout the selling season.

Franchise Store- A store based on a contractual arrangement


between a franchiser (manufacturer) and a retail franchisee,
which allows the franchisee to conduct a given form of business
under as established name and according to a given pattern of
business.
GMROI- Gross Margin Rate on Investment.

Hypermarket- A large retail store that offers products at a low


price. It is a combination of a discount store and a food based
supermarket.

Main Store approach- Main store approach in this approach, the


main store or the parent organization control the operation of the
branches.

Market Positioning- The kind of image the retailer wants to


establish among its target group and the group of firms with
which it wishes to compete and coexist.

Market Segment- A group of customers whose needs will be


satisfied by the same retail offering because they have similar
needs and go through similar buying processes.

Merchandise Controlling- A process for evaluating revenues,


profits, turnover, shortage of inventory, seasonal fluctuations and
costs for each product in the merchandise category being offered
by the retailer.

Merchandise Handling- The physical handling of the


merchandise by the retailer.

Merchandise Mix- The total range of products that a store offers


to its customers.

Resellers- Retailers who buy merchandise in large quantities at


discounted prices from the retailers, and sell them at normal
prices in their shops.
Shopping Goods- Shopping goods are bought less frequently
than convenience goods. These goods include clothing and
electronic goods etc.

Specialty store- A specialty store is a type of general


merchandise store that sells limited lines off closely related
products or services to a select group of customers.

Store Image- Image of a store comprises how the consumer


feels about the store. Therefore, retailers must be sure about how
they want their store to be perceived by the customers.

Warehouse stores- are discount food retailer with a size of


100,000 square feet. They cater to customers who look for low
price deals.