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Internship Report “Development & Implementation of Merchandising Plan” Company Name: Fashion Global Retail Ltd. (Future Group) Submitted By: Nilesh Sinha Smba08139 1 | Page

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Page 1: Internship Report -Nilesh Sinha

Internship Report

“Development & Implementation of Merchandising Plan”

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

Submitted By: Nilesh Sinha

Smba08139

Institute of Management Technology, Dubai

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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

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

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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.

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.

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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.

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

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INTRODUCTION

F U T UR E G R O U P

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

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,

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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.’

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.

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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

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.

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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

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.

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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

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:

o Current market value.

o Quantity of stocks available.

o Period available for sale (expiry date).

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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:

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.

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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:

o First check the correct consignment has been reached or not.

o Getting unloaded the boxes to the warehouse properly.

o Checking the Box condition whether the box is in proper condition or not, if not

then making the complaint along with company stamp.

o Does the receiving signature and put the company stamp on receipt.

After receiving boxes the warehouse manager also does the following activities:

o Checking of Carton Quantity

o Checking Delivery Number

o Making Good Received Note (GRN) in the SAP.

o 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 :

o Delivery Number

o Purchase Order Number

o Number of Quantity of product received.

o Stock Transfer Note Number

o Total Amount

o Good Received Note Quantity

o Good Received Number

After that the store Manager does the section wise Display of the SKU’s with proper

price signs and offers.

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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.

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.

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Major L e a r ning 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

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

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other customers.

Bibliography

www.futuregroup.in

By communicating and receiving data from the employees and staffs.

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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 amount,

discount (savings) & net amount would be as

given below

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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:

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.

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Category wise Sales and Margin table heading

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.

\

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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 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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