Bharati Vidyapeeth (Deemed to be

University), Pune
Institute of Management and Entrepreneurship
Development, Pune

A Study on Merchandise Planning

At

With reference to Central Store, Pune

A Summer Training Project Report

Submitted in Partial Fulfillment of the Requirements for the
Award of Degree of

Master of Business Administration

2018-20

Submitted by:- Guided by:-

Satya Prakash Singh Mr. Y. Gurav
Roll no. -135
Div- C

1 | Study of Merchandise Planning

 Certificate of originality

This is to certify that the project report entitled “STUDY OF MERCHANDISE

PLANNING” with reference to CENTRAL STORE, PUNE submitted to BHARATI
VIDYAPEETH DEEMED TO BE UNIVERSITY, PUNE in partial fulfilment of the
requirement for the award of the degree of MBA is an original work carried out by SATYA
PRAKASH SINGH under the guidance of Mr. YOGESH GURAV The matter embodied
in this project is a genuine work done by SATYA PRAKASH SINGH to the best of my
knowledge and belief and has not been submitted before , neither to this university nor to any
other university for the fulfilment of the requirement of any course of study.

Signature of the Student Signature of the Guide

2 | Study of Merchandise Planning

 Certificate

This is to certify that the project titled A STUDY ON MERCHANDISE PLANNING with
refence to Central Store, Pune is an academic work done by “SATYA PRAKASH SINGH
“ submitted in the partial fulfillment of the requirement for the award of the Degree of MBA
from BHARATI VIDYAPEETH (DEEMED TO BE UNIVERSITY), Pune. It has been
completed under the guidance of Mr. YOGESH GURAV We are thankful to Central store,
Pune for having allowed our student to undergo project work training. The authenticity of the
project work will be examined by the viva examiner which includes data verification,
checking duplicity of information etc. and it may be rejected due to non-fulfillment of quality
standards set by the Institute.

(Director IMED)

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 ACKNOWLEDGEMENT

I wish to express to my gratitude to the management of PUNE CENTRAL for giving me an

opportunity to be a part of their esteemed organisation and enhance my knowledge by
granting me the permission to do my summer training project under their guidance.

The project could not have been completed without Ms. SHWETA VERMA who not only
served my supervisor and mentor but also encouraged and challenged me throughout my
training program. Hey patiently guided me throughout, never accepting less than my less
efforts. I thank them from my bottom of the heart.

I wish to acknowledge my internal faculty member Mr. YOGESH GURAV for sharing his
valuable time with me and providing me a specialist’s viewpoint in the concerned subjects.

Last but not the least I would like to thank all the staff members of PUNE CENTRAL for
their kind cooperation and help during the course of my training.

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 PREFACE

This study is undertaken as requirement for the award of full time degree in MASTER OF
BUSINESS ADMINISTRATION from the INSTITUTE OF MANAGEMENT OF
ENTREPRENEURSHIP DEVELOPMENT (IMED), PUNE.

The management of marketing is very challenging and complicated task for those who are
entrusted with the Successful running of an organisation. Therefore, Marketing need to be
understand in their proper prospective and utilised effectively to achieve goals of an
organisation. The management process is made up of four steps embracing “People ,
dimension” -getting them, preparing them, activating them and keeping them.

My project titled “A STUDY ON MERCHANDISE PLANNING” has enabled me to have

a broader knowledge about the overall marketing activities in diverse perspective in PUNE,
CENTRAL.

5 | Study of Merchandise Planning

 INDEX

Chapter A Study on Merchandise Planning Page no.

1. Introduction
a) Overview of Industry as a Whole
b) Profile of Organisation
c) Competitors Information
d) SWOT

2. Research Methodology
a) Concept of Tittle
b) Objectives
c) Scope
d) Types of Research
e) Data collection methods
f) Limitations

3. Conceptual Discussion
a) Literature Review
b) Current Issues
c) Offers

4. Data Analysis
a) Questionnaire
b) Data Analysis

5. My contribution and learning

a) My contribution
b) My Learnings

6. Findings and Suggestions

a) Findings
b) Observations
c) Suggestions

7. Bibliography

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 Chapter-1

Introduction

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 OVERVIEW OF INDUSTRY AS A WHOLE

A first-generation entrepreneur, Kishore Biyani started his

journey selling stone-wash denim fabric in Mumbai in the
1980s. His dream was of making available to everyone what
only the rich could afford. Soon, he would launch his own
brands, retail networks and invest heavily in creating the
country’s leading consumption ecosystem. During this
journey he also invested and mentored many other
entrepreneurs and brands. He embodies the organisation’s
credo, ‘Rewrite Rules, Retain Values’ and considers
Indianness as the core value driving the organisation.

Rewrite Rules, Retain Values – this simple idea has

been at the core of our business since the inception of
Future Group. Today, a wide portfolio of brands in
food, FMCG and fashion, complement the country’s
pioneering modern retail networks.

More than 600 million customer visits are recorded across the 2,000 Future Group retail stores,
covering over 24 million square feet of space in over 400 cities and towns. Millions more
interact with group’s brands and businesses through ecommerce sites, social media and mobile
apps like FuturePay and EasyDay Club.

Future Group’s food value chain operates with its nation-wide network, reaching the smallest
towns and cities with its sourcing and manufacturing units, and integrated distribution systems.
Tasty Treat, Golden Harvest, Karmiq, Kara, Sunkist, ThinkSkin, Mother Earth, Kosh, Nilgiris
are among the leading brands from the Future Group.

In fashion, our manufacturing facilities produce garments designed and sourced by a talented
team of trend-spotters, designers and merchandizers. Brands like Lee Cooper, John Miller,
CoverStory, Indigo Nation, Scullers, Knighthood, DJ&C, Bare, UMM, and Ancestry are some
of our key brands.

The flagship retail brand Big Bazaar is ranked among the most valuable Indian brands
(Interbrand), and among the most trusted brands (Nielsen). Leading department store network,
Central, smart prices retailer, Brand Factory, and popular fashion destination FBB are also a
part of the group, along with a growing chain of small neighbourhood stores, EasyDay and
Heritage Fresh, and convenience stores WH Smith and 7-Eleven.

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HISTORY-

Future Retail Ltd was incorporated in the year 1987 under the name of Manz Wear Private Ltd. The
company changed its name to Pantaloon Fashions (India) Limited in 1991. Further it has changed its
name to Future Retail Ltd in 2013. Bharti Retail Ltd joined hand with the company in 2016.
Subsequently name of Bharti Retail Ltd is changed to Future Retail Ltd. Future Retail Ltd is the flagship
company of Future Group India's retail pioneer catering to the entire Indian consumption space.

Through multiple retail formats the company connects a diverse and

passionate community of Indian buyers, sellers and businesses. The collective impact on business is
staggering: Over 500 million customers walk into its stores each year and choose products and services
supplied by over 30000 small medium and large entrepreneurs and manufacturers from across India.

Future Retail operates multiple retail formats in both the hypermarket supermarket and home segments
of the Indian consumer market including: Big Bazaar Easyday Fashion at Big Bazaar Food hall Home
town Ezone As India's leading retailer Future Retail inspires trust through innovative offerings quality
products and affordable prices that help customers achieve a better quality of life every day.

It serves customers in more than 250 cities across the country through over 12 million square
feet of retail space. On 7 November 2016 Future Retail announced that the company's Board of Directors
has approved a proposed consolidation of the retail and allied businesses of Heritage Foods Limited.
The retail business of Heritage Foods includes the popular Heritage store chain of 124 stores in three
key southern cities of Hyderabad Bangalore and Chennai. These retail stores compliment well with
Future Retail's existing network of 379 small format EasyDay stores in northern cities of India.

The retail and allied businesses of Heritage Foods posted revenue of Rs 629.70 crore
during the financial year 2015-16. On closure of the transaction Heritage Foods will own 3.65% of the
shareholding in Future Retail through fresh issuance of shares by the company. As part of the scheme
of arrangement for the acquisition Heritage Foods will spin off its retail bakery agri-sourcing and
veterinary care business in a fully owned subsidiary. Subsequently all these businesses except veterinary
care will then be merged with Future Retail.

The Board of Directors of Future Retail

at its meeting held on 20 April 2017 considered and approved segregation of the Home Retail Business
of the company operated through Home town stores into Praxis Home Retail Private Limited by way of
a demerger. The proposed segregation would be carried out vide a Composite Scheme of Arrangement
between Future Retail and Bluerock e-Services Private Limited (BSPL) and Praxis Home Retail Private
Limited (PHRPL or the resulting company) and their respective shareholders. In consideration of the
demerger of the Home Retail Business of FRL into PHRPL in terms of the scheme PHRPL will issue
one fully paid up equity share of Rs 5 each to the equity shareholders of FRL as on the record date for
every 20 fully paid up equity shares of Rs 2 each of FRL.

The equity shares

of PHRPL to be issued to the shareholders of FRL pursuant to the scheme shall be listed on the stock
exchanges. The Board of Directors of Future Retail at its meeting held on 20 April 2017 approved
increase in the investment limit of Registered Foreign Portfolio Investors (including FIIs) in equity share
capital of the company from present 24% to 49% of the company's total paid-up equity share capital.

The Board of Directors of Future Retail at its meeting held on 5 October 2017 considered and
approved the acquisition of entire equity share capital of M/s Hypercity Retail (India) Limited (HRIL)
from its existing shareholders for part cash and part share consideration aggregating up to Rs 655 crore.
9 | Study of Merchandise Planning
HRIL is mainly into retail business and operating its various stores across India and does not have any
overseas presence.

HRIL clocked turnover of Rs 1191 crore in FY 2016-17.The Board of

Directors of Future Retail at its meeting held on 6 December 2017 considered and approved the Scheme
of Arrangement between Hypercity Retail (India) Limited (HRIL) and Future Retail Limited. The
Scheme inter-alia provides for the demerger of Retail Business Undertaking of HRIL into the company
and for reorganisation and reclassification of balance lying in the Capital Reserve Account into
Securities Premium Account of the company.

HRIL is a wholly owned subsidiary of Future

Retail. On 13 March 2018 Future Retail announced that the company has entered into Shareholders
Agreement on 13 March 2018 with Khimji Ramdas LLC a leading business conglomerate in Oman for
the formation of a joint venture company to undertake business to operate fbb brand fashion outlets
commencing in Oman and across other member states of GCC.On 1 June 2018 Future Retail announced
that it has completed the acquisition of the Retail Business Undertaking operated under the brand name
Foodworld (Foodworld Business) from Foodworld Supermarkets Private Limited (FSPL) in terms of
Business Transfer Agreement and other related documents (the Agreement) which were executed
between the company FSPL and erstwhile Promoters of FSPL for acquisition of Foodworld Business.

FSPL originally incorporated on 25 August 1999 is mainly into retail business

format in food FMCG and general merchandise category. For FY 2017-18 FSPL clocked turnover of Rs
119 crore on provisional basis.

MISION AND VALUES-

I share the vision that their customers and stakeholders are best served by creating and executing
future scenarios in the consumption space leading to economic development.

They will be the trendsetters in evolving consumer brands and delivery formats and by making
consumption affordable for all customer segments. We shall infuse Indian brands with
confidence and renewed ambition. We shall be efficient, cost- conscious and committed to
quality in whatever we do.

They shall ensure that our positive attitude, sincerity, humility and united determination shall
be the driving force to make us successful.

Values of Future group can be listed-

RESPECT AND HUMILITY in dealing with everyone within and outside the organisation

FLOW by constantly learning and being inspired from the universal laws of nature

INDIANNESS by believing in oneself and doing things the Indian way

INTROSPECTION for continuous learning, self-development and personal excellence

OPENNESS AND ADAPTABILITY by accepting new ideas and knowledge, and being
proactive in meeting challenges emerging from changing business scenarios
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VALUING AND NURTURING RELATIONSHIPS with customers, business associates,
stakeholders, communities and the society LEADERSHIP in thought and in business

SIMPLICITY AND POSITIVITY to foster innovation, speed and imagination

RETAIL INDUSTRY

The Indian Retail sector has caught the world’s imagination in the last few
years. The Indian retail market is the fifth largest retail destination all across the globe. It has
been ranked as the most attractive emerging for investment in the retail sector in 2009.

With the retail giants in India like Reliance, Tata, Future Group and
the world’s largest retailer Wal-mart and Carrefour planning to operate in India, there is an
aggressive competition among the retail chains to win the maximum market share in the retail
industry.

In this scenario, advertisements and promotions play a significant role

in achieving the objective of a retailer. Advertising differentiates them from the other retailers
and the different promotions that they adopt attract the customers and increase the sales.

This study revolves around understanding and analyzing the effectiveness of the
Promotions and Visual Merchandising technique used by reliance fresh. It is also important to
evaluate the store performance in order to establish the ease of managing the store operations
effectively, adhering to the standards.

Retail is India’s largest industry and for over 10% of the

India’s GDP and around 8% of the employment. Retail sector is one of India’s fastest growing
sectors with a 5% compounded annual growth rate. As India has huge middle class base and its
untapped retail industry are key attractions for global retail giants planning to enter new
markets. Due to the changing lifestyles, strong income growth in the middle class population
and favorable demographic patters, Indian retail is expected to grow 25% annually and expected
that retail business in India could be worth US$ 175-200 billion by 2016.

Size of the Industry-

In the next few years the organized Retail Sector in India is expected to triple
its size. The food and grocery retail sector is expected to multiply five times in the same time
frame. The market size of Indian retail industry is about US$ 312 billion. The organized
11 | Study of Merchandise Planning
retailing comprises only 2.8% of the total retailing market and is estimated at around US$ 8.7
billion and the organized retail sector is expected to grow to US$ 70 billion.

Types of retail formats-

1. Convenience Stores: These are the stores that provide a high level of convenience to
their customer especially in terms of food and other essentials items. These items are
usually low in cost, consumed vey frequently and easy to obtain. Hence convenience
stores offer a limited variety and assortment of merchandise at a location usually within
1500 to 8000 sq ft.

2. Supermarkets: These are primarily self service food stores offering almost all items of
daily necessity like groceries, meat products, fresh produced and non food items as well.
The stores normally spread across 30000 sqft in size.

3. Hypermarkets: Hypermarkets are extremely large self service retail outlets. These are
a combination of discount stores as well as superstores and are built in large warehouse
type coverings. This size could vary from 80,000 to 2, 20,000 sqft and they stock over
50,000 different items. They offer both food and non food items like clothes, Jewellery,
hardware, sports equipments, cycles, motor accessories, books, CDs, DVDs, videos,
TVs, electrical equipments and computers and combine the supermarkets, discount, &
warehouse retailing principles. The cheapest prices will normally be found in these
stores.

4. Specialty Stores: Specialty Stores irrespective of convenience stores offer a much

different range of services. They attract customers by specializing in a particular line of
merchandise in which they have a large variety both in terms of the width and depth of
their respective product base. Specialty stores usually concentrate on apparel, Jewellery,
fabrics, sporting goods, furniture etc. they have a very clearly defined target market and
their success lies in serving their needs. These stores provide services usually in area
less than 18,000 sq ft.

5. Department Stores: Department stores are very large stores which are usually multi
tiered and stock a vast range of products in separate departments. The variety of

12 | Study of Merchandise Planning

 merchandise stocked by department stores is much wider than any other retail format
although the merchandise mix may vary company to company. They seem like a co
lection of specialty operations all under one roof having one owner.

6. Shopping Malls: Shopping Malls signify a common mall in which a large number of
stores are located. While every shopping mall has one or even a couple of anchor stores,
the variety of retailers that are located within them are usually quite different from each
other. Promoters of shopping malls would do well to select the retailers based on the
product mix that they stock so that there are neither too many nor too few retailers of
some merchandise.

Growth and Development of Retail-

Retail and real estate are the two booming sectors of India in the present times. And if industry
experts are to be believed, the prospects of both the sectors are mutually dependent on each
other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic
and fast paced industries of our times with several players entering the market. Accounting for
over 10% of the country’s GDP and around 8% of the employment retailing in India is gradually
inching its way towards becoming the next boom industry.

As the contemporary retail sector in India is reflected in extensive shopping centres, multiplex-
malls and huge complexes offer shopping, entertainment and food all under one roof, the
concept of shopping has altered in terms of format and consumer buying behavior, ushering in
a revolution in shopping in India. This has also contributed to large-scale investments in the
real estate sector with major national and global players investing in developing the
infrastructure and construction of the retailing business. The trends that are driving the growth
of the retail sector in India are:

1. Low share of organized retailing

2. Falling real estate prices
3. Increase in disposable income and customer aspiration
4. Increase in expenditure for luxury items (CHART)

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Present Status of Retail Industry-

The present value of the Indian retail market is estimated by the India Retail
Report to be around Rs.12, 00,000 crore($270 billion) and the annual growth rate is 5.7%. Retail
market for food and grocery with a worth of Rs. 7,43,900crore is the largest of the different
types of retail industries present in India. Furthermore around 15 million retail outlets help India
with the crown of having the highest retail outlet density in the worlds.

As India’s retail industry is aggressively expanding itself, great demand

for real estate is being created. The cumulative retail demand for real estate across India is
expected to reach 43 million sqft by 2015.

Around 46% of the total estimated demand between 2011 and

2015 will be come from Tier-1 cities. For instance, Pantaloon retail added 2.26 million sqft of
retail space during the fiscal and booked over 9 million sqft of retail space to fructify its
expansion plans in future.

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 PROFILE OF ORGANISATION

Blues and Pune Central mall in Pune, is a one-stop shopping

destination for all shopaholics. The mall has the latest
collection in fashion and accessories from over 100 brands.
It was first launched on May, 2004 in Bangalore with the
aim to give customers an unobstructed and pure shopping
experience and to make the best brands available in the
Indian market. Later, it was opened in many other cities
including Pune. Enjoy shopping in Pune at Pune Central mall, with the variety of brands housed
here.

Central Store is retail Departmental retail chain operated by Future Retail

Limited, the operating company of future group which also runs another popular hypermarket
chain, Central mall.

Central has outlets in Ahmedabad, Bangalore, Bhubaneswar, Cochin,

Hyderabad, Pune, Nashik, Mangalore, Mumbai, Navi Mumbai, New Delhi, Vadodara,
Gurgaon, Indore, Nagpur, Patna, Jaipur, Surat, Visakhapatnam. It has a clothes and food chain
with 3 Amigos, Slambay, Baskin Robbins among many others and has three main restaurants
like Bombay.

Vision-

1. 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.
2. We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
3. We shall infuse Indian brands with confidence and renewed ambition.
4. We shall be efficient, cost- conscious and committed to quality in whatever we do.
5. We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
6. Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.

15 | Study of Merchandise Planning

Mission-

1. 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.
2. We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments - for classes and for masses.
3. We shall infuse Indian brands with confidence and renewed ambition.
4. We shall be efficient, cost- conscious and committed to quality in whatever we do.
5. We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.

Core Values-

1. Indianness: confidence in ourselves.

2. Leadership: to be a leader, both in thought and business.
3. Respect & Humility: to respect every individual and be humble in our conduct.
4. Introspection: leading to purposeful thinking.
5. Openness: to be open and receptive to new ideas, knowledge and information.
6. Valuing and Nurturing Relationships: to build long term relationships.
7. Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
8. Adaptability: to be flexible and adaptable, to meet challenges.
9. Flow: to respect and understand the universal laws of nature.

Products-
1. Clothing
2. Footwears
3. Bags
4. Cosmetics
5. Accessories
6. Food Court

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Services-
1. Complementary WIFI
2. Whatsapp Shopping
3. Express Alterations
4. Premium valet Parking
5. LUXE Billing
6. Options for Personal Shopping
7. Smart Exchange
8. Wheel Chair
9. Premium Gift Wrappings
10. Baby Care Room
11. Baby Trolley

Brand that shapes consumption-

Retail-

FMCG-

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HOME-

Fashion-

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 COMPETITORS INFORMATION

Competitors all over world:

a) WAL- MART (United States)

b) CARREFOUR (France
c) METRO (Germany)
d) TESCO ( United Kingdom )
e) THE KROGER Co ( US)
f) TARGET CORP (United States )

Competitors In India:

a) Kishore Biyani’s CENTRAL MALL., CENTRALS, FOOD BAZAR

b) K Raheja’s SHOPPER’S STOP
c) MukeshAmbani’s RELIANCE RETAIL
d) Aditya Birla Retail- MORE, PANTALOONS
e) TATA’s STAR BAZAAR
f) SPENCERS
g) RPG’s FOOD WORLD
h) EASY DAY

Shoppers Stop is an indian retailing company promoted by the K Raheja Corp Group, started
in the year 1991 with its first store in Andheri mumbai. Shoppers Stop Ltd has been awarded
"the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World retail
congress at Barcelona, on April 10, 2008 Shoppers Stop is listed on the BSE. As of 2013,
Shoppers Stop has 73 stores in India. Shoppers Stop began by operating a chain of department
stores under the name “Shoppers’ Stop” in India. Shoppers Stop has 74 stores across 35 cities
in India.

Pantaloons Fashion & Retail Limited is an Indian premium clothing Retail chain. The first
Pantaloons store was launched in Gariahat, Kolkata in 1997. As of November 2013, there are
76 Pantaloons stores in 44 cities. Pantaloons was previously controlled by the Future Group,

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but has now been taken over by Aditya Birla Nuvo Limited (ABNL). According to the Brand
Trust Report 2014, a study conducted by Trust Research Advisory, Pantaloons featured among
100 most trusted brands in India.

The term lifestyle can denote the interests, opinions, behaviours, and behavioural orientations
of an individual, group, or culture.

The term was originally used by Austrian psychologist Alfred Adler (1870-1937). The term
was introduced in the 1950s as a derivative of that of style in modernist art. The term refers to
a combination of determining intangible or tangible factors. Tangible factors relate specifically
to demographic variables, i.e. an individual's demographic profile, whereas intangible factors
concern the psychological aspects of an individual such as personal values, preferences, and
outlooks.

A rural environment has different lifestyles compared to an urban metropolis. Location is

important even within an urban scope. The nature of the neighborhood in which a person resides
affects the set of lifestyles available to that person due to differences between various
neighborhoods' degrees of affluence and proximity to natural and cultural environments. For
example, in areas within a close proximity to the sea, a surf culture or lifestyle is often present.

Reliance Retail Ltd. is a subsidiary company of Reliance Industries. Founded in 2006 and
based in Mumbai, it is the largest retailer in India in terms of revenue. - Its retail outlets offer
foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic
goods, and farm implement and inputs. The company’s outlets also provide vegetables, fruits
and flowers. It focuses on consumer goods, consumer durables, travel services, energy,
entertainment and leisure, and health and well-being products, as well as on educational
products and services.
It has a total of 3,383 stores as of June 2016 in India with an area of over 13 million square feet
across 210 cities.

SWOT
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Retail companies, like other businesses, often use a SWOT (strengths, weaknesses,
opportunities and threats) analysis to evaluate their businesses. A SWOT analysis for retail is a
detailed look at the retailer's strengths, weaknesses, opportunities and threats versus key
competitors in the marketplace. Strengths and weaknesses are considered internal factors, over
which a retailer has more control. Opportunities and threats are external factors, which are
positive and negative situations that retailers continuously face.
Identify and List Strengths

The first step in doing a SWOT analysis for a retail company entails identifying strengths. One
possible strength may be the retailer's financial backing if it has plenty of capital and access to
bank loans. Another strength may be the retailer's cheaper wholesale prices. Additionally, the
company may offer unique products compared to other retailers.

For example, a clothing store may sell high-quality but slightly defective clothing at a low price.
Whatever the case, a retailer should make a list of all its strengths versus key competitors.
Identify Palpable Weaknesses

A retail company should identify its most palpable weaknesses in a SWOT analysis. Through
market research, the retailer can check if it has a weak brand image versus key competitors or
lack of identity in the marketplace. For instance, the store may sell both cheap and expensive
brands, so it lacks a defined place in the minds of consumers. Essentially, the store selling to
all market segments may mean it has no competitive advantage that sets it apart from other
retailers.
Look for Opportunities

Another step in a retail SWOT analysis is identifying key opportunities in the market, often
through a review of a company’s sales force and market research. Opportunities can include
unfilled consumer needs. For example, a small web design company may see an opportunity to
add consulting services, if it identifies customers who desire it when conducting marketing
research. Or a retail company may identify an opportunity to purchase a smaller retailer to
increase market share through a SWOT analysis.
Pinpoint Potential Threats

A retailer can identify certain threats through a SWOT analysis. Threats can include a decrease
in consumer demand, a recession, price wars among key competitors or even an increase in
competition. Even a change in shopping habits can be a major threat to a retailer.

21 | Study of Merchandise Planning

For example, when people started migrating to the suburbs in the 1950s and 1960s, downtown
retailers, which represented the traditional way of shopping, were affected. These days, the
growing popularity of online shopping represents an ongoing threat to bricks-and-mortar
retailers.
Analyze SWOT for Better Decision-making

Retailers should not just identify their strengths, weakness, opportunities and threats; they must
also use this analysis to develop effective marketing strategies. This can be accomplished by
matching an internal variable, like strengths, to an external variable, like opportunities. For
example, the owner of a chain of gift shops may have a tech-savvy marketing team – a strength
– so she may see the opportunity to increase sales and profits through social media campaigns
over the Internet that the marketing team can spearhead.

SWOT analyses can also be integrated into a retailer’s hiring practices. Asking a potential
manager prospect to complete a SWOT on the business or a competitor as part of the vetting
process can reveal helpful information and identify candidates with the analytical skills to
improve the company’s bottom line.

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 Chapter- 2

Research
Methodology

23 | Study of Merchandise Planning

 CONCEPT OF TITLE

Merchandising is defined as offering right kind of product at right place and in right price. A
retailer has to plan to have in his store the product that is desired by the customer. Success of
any retail organisation depends on its merchandise planning.
Merchandise planning is defined as “Planning and control of merchandise
inventory of the retail firm, in a manner, which balances between the expectation of target
customer and strategy of firm”.
Strategy of a firm may be profit maximization growth and expansion of its market.
Expectation of customers is always a product that is desired by him and that satisfies his need.
There is interlink between them, i.e., a firm can meet its target of profit or market share, when
it is in a position to stock and sell the product that is liked by the customer. This call for
merchandise planning.

Components and Process of Merchandise Planning:

1. Product
2. Price
3. Range
4. Assortment
5. Range

(1) Product:
Product or merchandise is the basic component of marketing mix. Retailer has to cater to the
products that are expected by his segments. He has to maintain adequate inventory of product
category expected by his customer.
Products may be broadly classified into:
a. Staple- Like food and clothing that have regular demand. Adequate stock of that
is to be maintained.
b. Seasonal products- that are in demand during the season. Adequate inventory of
that is to be augmented before the season and the stock is to be maintained to
sustain the season.
c. Fashions- Goods that are in demand until the fashion prevails. Retailer has to
estimate the quantum of demand to last the fashion trend.
d. Fads- the kind of products that have limited period of demand. Retailer has to
be careful to estimate the demand and buy the fad products.

24 | Study of Merchandise Planning

(2) Price:
Another important component of marketing mix. Price is an important variable in a country like
India, where people are price sensitive. Retailer has to determine his segment and the price
range to which they belong. Broadly it can be classified as low, Medium and premium range.
Retailer has to offer the product that meets price range of his target customers. Apart from this
retailer has to adopt different price strategies like Price Skimming, Mark down price, discounts
price and offers like buy one and get one depending on demand for the goods and extent of
stock. The planning should be to offer an attractive price package that can result in regular sale,
stock clearance and assure adequate profits.

(3) Range:
Range refers to width, breadth and depth of products offered for sale. Customers should have
opportunity to make choice or selection depending on the type of retail store i.e.-
Specially store specialises in limited width i.e., particular category (Bata, Raymond’s) But it
must have depth i.e., different designs, number, color, price-range etc., so that customer can
make choice. Departmental store which deals in long category of products must not only have
width, but also must have breadth (different brands) and depth.

(4) Assortment:
It refer to combination of products made available to customer at retail outlet. Merchandise is
assorted and presented category wise and department wise.
E.g. – Cosmetics, Toiletries, Electronics, Staples, Vegetable, Furniture etc., each category
further will have different products or different brands at different size and price level.
E.g. – Toothpaste, Shampoo, Soaps, etc., are presented in one category of different brands
companies and brands.

(5) Space:
Products should visible to visiting customer. Retailer have limited floor space, he should
provide adequate space for display of each product. Available space for display of each product
is utilized to showcase and presents goods.
E.g. -Products may be classified as new arrivals, fads, fashions staples, vegetable, electronics,
furniture’s, kids etc.
Retailer has to priorities the place for different products:
a. He has to ensure that the products are visible.
b. Customers have convenience and comfort in picking the products.

25 | Study of Merchandise Planning

MERCHANDISING DISPLAY IDEAS

Merchandising display refers to anything that can be seen by the customer inside and outside a
store, ie., Products, with the overall purpose of getting customers into the store.

But Merchandising display goes beyond window displays that lure customers in, says Chris
Guillot, founder and retail consultant of Merchant Method.

“It really is much more comprehensive than that. The goal is to get customers to come into your
store and spend money.”

How can retailers go look beyond product displays and score some visual merchandising ideas
that will pack a punch? Here are 10 steal-worthy ideas you might not have thought of on your
own.

1. Turn your Products into art.

2. Take advantage of Technology.

3. Flower Power.

4. Upcycled Product displays.

5. Use Real Humans in Lieu of Mannequins.

6. Guide your customer through your store.

7. Use your customer.

8. Interactivity.

9. Do your customers a service.

10. Repurpose.

1. Turn Your Products Into Art

Have you ever stepped into a store where the products were also the artwork? It’s quirky,
but memorable. And while it may not always be functional, it can be a new way to
position your products.

“I love when there are artful displays of products, because it shows true mastery of the
principles of design,” says Guillot. “It’s almost conceptual art, or conceptual retail.”
26 | Study of Merchandise Planning
 The striking art of the nose makes passersby stop to take a closer look — which will
reveal the perfumes beneath the nose. The marriage of art and product strikes a great
balance that’s tasteful yet effective in attracting customers.“In [retailers’] ability to
create an artful piece, they’re also showcasing that this is an important piece for the
customer to have it. It’s an artful version of a spotlight and I love it,” says Guillot.

PRO TIP: “Denim is so easy to do something like that with. A product like denim hangs
well, molds well, it’s visually appealing, there are a variety of ways to hang and fold
denim.”

2. Take Advantage of Technology

There are so many possibilities when it comes to technology — you just have to find
the right way that works for you.

For retailers like Apple and Verizon, hands-on experiences with their technology
products, as well as touchscreen walls and interactive displays in their flagship stores,
technology is so close to their product. But it can work for other industries, too.

Guillot points to Ada’s Technical Books and Café in Seattle as the perfect example of a
not-so-tech-centric retailer that has found a way to incorporate technology in a way that
makes sense.

“They were able to reclaim a fireplace mantel piece, and above it they have a huge flat-
screen TV,” Guillot describes. “They use it to advertise events in the store, new
products, café menus, and other things like that.”

PRO TIP: You don’t have to make a huge investment. “Something like an iPad you
can use to customize playlists that are for the benefit of the customer in the way that
enhances the brand.”

3. Flower Power

There’s actually scientific proof behind the benefits of fresh flowers — they’ve been
found to make people feel “comfortable, relaxed and natural.” And what retailer
wouldn’t want an easy-going and happy customer to step foot in their store?

Macy’s caught on to this more than 70 years ago, with its annual Macy’s Flower Show,
which now attracts about a half-million people to its participating New York,
Philadelphia, San Francisco, and Chicago stores.

There’s a reason we give flowers as gifts to the special people in our lives, and they’re
a major expense for most weddings. And to see these flowers in such a large, artful
display is an experience most retailers don’t offer.

And it’s not just the visual of the flowers, it’s the scent that contributes to the visual
merchandising as well. “Part of the comprehensive experience of visual merchandising

27 | Study of Merchandise Planning

 — even though it’s called visual — is how things smell and how things sound,” Guillot
points out.

PRO TIP: A massive event the size of Macy’s Flower Show isn’t feasible for most
retailers, and you don’t have to be a florist to take advantage of flowers.

Place fresh flowers outside your storefront to greet customers, and sprinkle them
throughout your store and near the cash registers. Look for ways to thoughtfully
integrate them with your product — maybe you use a pitcher as a vase, or you could
create fresh flower headpiece for your mannequins.

4. Upcycled Product Displays

Instead of dime-a-dozen display cases, stands, and racks, opt for a less traditional —
and more environmentally friendly — way to put your products on show.

The Trina Turk Boutique in New York City did exactly that with old logs. Rather than
displaying her fashion apparel and accessories on standard product stands, she took a
rustic, creative approach with trees.

It adds a different visual appeal and speaks to your brand identity when you use outside-
the-box product displays. And if you upcycle smartly, it can also save you some serious
room in your budget.

PRO TIP: Logs aren’t the only way to be creative. Find something that suits your store:
Music shops could use refurbished record players, wind chimes, or necklaces could be
displayed on a vintage coat rack, or a wheelbarrow can hold flower seeds at a home and
garden shop.

5. Use Real Humans in Lieu of Mannequins

Especially relevant for apparel and accessory retailers, using real humans in your store
in place of mannequins can be a powerful visual merchandising tactic.

Abercrombie & Fitch and sister stores abercrombie and Hollister have mastered this. As
teenage girls and boys, their target market, walk past the storefront, they’re attracted to
this real-life manifestation of what they aspire to be.

“I am a huge advocate for this notion … being this living embodiment of wearing the
apparel,” Guillot says. “That personalized experience, whether it's visual or not, is so
critical. But I love it when it's visual because then you are weaving seamlessly in it
around the space.”

This is extremely effective for these stores because of the lifestyle they sell and their
strong brand image, and the models are tangible proof that the Abercrombie & Fitch
image is attainable.

28 | Study of Merchandise Planning

 They’ll want to buy the clothes those models are wearing so they can live this lifestyle,
too — not to mention the photos with the models they’ll share all over social media.

PRO TIP: If your store is starkly different from Abercrombie & Fitch, you can still find
ways to use real people instead of mannequins to merchandise your products. Make
your products part of the employee uniform, host a fashion show, or host demos where
your employees show how they use your products in real life.

6. Guide Your Customers Through Your Store

If ever a retailer mastered how to direct customers through the store, it’s IKEA. The
Sweden-headquartered furniture retailer has laid out their brick-and-mortar locations so
well that they practically guide every step their customers take.

This works so well, because when you know how your customers are traveling through
the space, you also know where they’re likely to look and they’re likely to see. Using
that knowledge, IKEA can place promos, new products, and other priorities in those
high-trafficked, visible spots.

Essentially, they can dictate where their customers spend the most time. And that’s
valuable for guiding consumer behaviors.

PRO TIP: Often when retailers are setting their floor plan or thinking about a refresh,
they’ll go to inspirational resources, but it doesn't always translate to what a revenue-
driving retail experience is. And so, one of the things that I encourage all my clients to
do is to consider customer line of sight,” Guillot says.

What she’s talking about is the concept of the 45-degree customer sight line. “Customers
scan and view the store at about 45 degrees from their own path of walking. So,
oftentimes when merchants or owners or even employees are setting or fixing the visual
merchandising display, they’re doing it right in front, head on, without respecting how
customers are walking around.”

Guillot has advice for breaking out of that habit: “After you merchandise, or when you're
merchandising, actually physically walk around your space and scan the customer’s line
of sight to make sure they’re seeing and approaching the product from this 45-degree
angle.”

7. Use Your Customers

Guillot recently hosted an event at The Carrot Flower Company, a local floral shop.
“The owner had the windows open, a bench outside, and we were using that — not only
the inside, but the whole front of the store, too.”

Pedestrians walking by see that there’s a group of people at this store — social proof
that this is a place worth checking out. And though no products were part of this display,
it’s visual merchandising for your brand and the experience you provide.

29 | Study of Merchandise Planning

 PRO TIP: Welcome your customers to spend time in your store, even if they’re not
shopping. Provide a cozy space for customers to hang out. Things like offering free
water, tea and coffee can make customers more at ease in posting up for a while.

8. Interactivity

The word “interactive” has this technology feel, but you can use interactive visual
merchandising sans tech.

IKEA Canada recently hosted the IKEA Play Café, a pop-up shop, in Toronto. The
homeware store turned a space in downtown into an area where guests could eat, play,
and shop.

While almost everything in the shop was interactive, one of the low-tech but popular
games was a tic-tac-toe table created with dinnerware.

These kinds of unique fixtures draw customers in, even if they don’t know much about
your products.

PRO TIP: To further capitalize on the real-life traffic, promote a branded hashtag along
with your interactive display. Broadcast this hashtag near the display to entice customers
to share on social media, build buzz, and drive more foot traffic.

9. Do Your Customers a Service

Any retailer who gives their customers something in return is on their way to lots of
loyal customers. And when you consider the in-store experience, there a few retailers
who have done this with their visual merchandising.

Asheville, North Carolina’s Mast General Store sells rocking chairs, but they also have
them littered throughout the store and near the storefront. Customers are more than
welcome to sit, while their companions browse the vast selection of souvenirs and
trinkets.

This is thoughtful, because Asheville is a tourist destination, meaning there are lots of
pedestrians walking around downtown — eating, drinking and shopping. All that
sightseeing is tiring, and some people in the store are uninterested; they’re there solely
because their travel mates want to be.

By providing relief and relaxation to the shopping wingmen and women, they’re less
likely to rush the customers who are interesting in buying Mast General Store products.
This gives them more time to shop — and more time to spend more money.

Plus, the store has a chance to turn that reluctant customer into a loyal one after they see
how comfortable those rocking chairs truly are.

30 | Study of Merchandise Planning

 PRO TIP: Even if you don’t sell rocking chairs, or any type of seating for that matter,
find out ways that you can make your product useful during the shopping experience.

Grocery stores can provide customers with a free in-store snack, while baby stores can
offer free use of a baby carrier for new moms.

10. Repurpose

The famous Pearl Street in Boulder, Colorado is a top tourist shopping and dining
destination. The pedestrian mall spans a few blocks and is lined with quaint shops,
restaurants, and drinking holes.

Just a block off the main mall is Salon Liquid, along with its vintage bicycles adorned
with flower pots. You might wonder what bicycles have to do with hair, and the
connections really are limited. The impact it makes, though, is standing out from the
crowd.

“Walking up and down boutique streets, I see really typical signage, like A-frame signs,
blade signs, signage painted on windows and awnings,” Guillot says. “People think
that’s the fastest way to attract customers.”

PRO TIP: Ditch the standard folding chalkboard and go for something more unique for
your storefront. Inspiration can be found almost anywhere — check out Craigslist, yard
sales and second-hand shops to see what gems you can uncover.

BRANDS OF PRODUCT-
1. Ladies Western- ONLY, VERO MODA, COVERSTORY, ELLE, LEVI’S, PEPE
JEANS, ALLEN SOLLY, VAN HEUSEN, SCULLERS, LEE COOPER, UMM,
JEALOUS 21.

2. Ladies Ethnic- GLOBALDESI, BIBI, MOTHER EARTH, FUSION BEATS, A,

MORPANKH.

3. Men’s Formals- PARK AVENUE, VAN HEUSEN, RAYMOND, ARROW,

BLACKBERRYS, LOUIS PHILIPPE, GIOVANI.

4. Men’s Casuals- SCULLERS, ARROW, ALLEN SOLLY, US POLO ASSN., LP

JEANS, INDIGO NATION, INDIAN TERRAIN, CELIO, COLOR PLUS, IZOD,
SUCCESS.

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 5. Youth Wear- JACK & JONES, US POLO ASSN., ED HARDY, SPYKER, FLYING
MACHINE, ROYAL MACHINE, PEPE JEANS, LEE, LEVI’S, ARROW,
WRANGLER, LEE COOPER, INDIGO NATION, LP JEANS, UMM, VOI JEANS.

6. Sports Wear- NIKE, ADIDAS.

7. Handbags- AND, GLOBALDESI, ALLEN SOLLY.

8. Ladies Footwear- ALLEN SOLLY.

9. Men’s Footwear- ALLEN SOLLY, LEE, LEE COOPER, PEPE JEANS, ONLY,
ROYAL ENFIELD, SPYKER, FLYING MACHINE, LEVI’S, ARROW,
WRANGLER, INDIGO NATION, LP JEANS, UMM, VOI JEANS, LOUIS
PHILIPPE, JACK & JONES, ED HARDY, US POLO ASSN.

10. Kids Wear- SCULLER, PEPE JEANS, US POLO ASSN., INDIAN TERRAIN, LEE
COOPER, UNITED COLOURS OF BENETTON.

11. Travel Gear- TOMMY HILFIGER, FAST TRACK.

12. Fragrances- CALVIN KLIEN, TOMMY HILFIGER.

13. Cosmetics- MAYBELLINE.

14. Eye wear- RAY BAN, POLICE, CALVIN KLIEN, TOMMY HILFIGER, FCUK,
SPRIT, FASTRACK, POLAROID.

15. Lingerie- AMANTE, TRIUMPH, JOCKEY.

MARKET STRATEGIES-

A retailer needs to decide as to what it wants to achieve for its customers. It has to decide the

target market and then select the appropriate combination of product, price, place and
promotion.

32 | Study of Merchandise Planning

33 | Study of Merchandise Planning
 OBJECTIVES

1. To study Merchandising & display in respect of a retail store.

2. To understand the Merchandise Planning process at Central Store.

SCOPE

1. This study comprises of in depth coverage of Merchandise Planning and little bit of
retail industry also covered.
2. However, this study is limited to extent that it is only related to Study of Merchandise
Planning.
3. This study does not focus on wide spectrum use of Merchandise Planning in daily life
on social lives and businesses.
4. Scope of study is limited to extent of information gather from internet.
5. This study will help the people to learn about the substitute available for the same
product.
6. This study explains about the factors which involves in managing the sale and purchase
over network also.

TYPES OF RESEARCH

Business research methods can be defined as “a systematic ad scientific procedure of data

collection, compilation, analysis, interpretation, and implication pertaining to any business
problem”. Types of research methods can be classified into several categories according to the
nature and purpose of the study and other attributes-
1. Qualitative v/s Quantitative Research
2. Descriptive v/s Analytical Research
3. Applied v/s Fundamental Research
4. Conclusive v/s Exploratory Research

This study is Exploratory type of research.

34 | Study of Merchandise Planning

 DATA COLLECTION METHODS

There are traditional as well as new types of data collection methods that I wish to discuss with
you, namely:

1. Surveys – With the right kind of questionnaires, surveys can give you a wealth of
information. Depending on your budget and need you may opt for the following. A one-
one one survey. While this method is time consuming and costly you are able to get the
right information as your research team interact directly with the respondents.The other
option involves a telephone survey which is a very fast method of information gathering.
However people are now more guarded to responding on the phone due to many
unsolicited marketing calls they receive. Mail surveys remain a cheap option for small
companies or research staff on a low budget. Mail surveys have a very low response
rate since customers have to mail back the questionnaire. An email survey will give you
a faster response and has no geographical limits. The only problem is establishing or
acquiring an email list for your target audience.

2. Focus groups – This method is useful for an indepth kind of research. If you are looking
to unearth matters related to perceptions, then a focus group would be the ideal place to
start. This is not an expensive method since you are not required to pay the respondents.
The only problem is the sample size which may be considered too small to represent the
general public.

3. Personal interviews – Remain a great way to gather information however it is a slow

method since one member of your research team can only interview one respondent at
a time.

4. Sampling – A good way to get instant feedback form consumers. You may choose to
target specific target market where customers they make their purchases. Sampling is a
good way to gather information as you will get the first reaction of the potential
customers in real time.

5. Research from Literature – If you have been considering doing some historical
research that can be found from written material you will be surprised how much
information is in our public libraries and on the internet. A simple online search will
reveal hundreds of sources that you can choose from.

6. Correlational research – This type of research is used to study the relationship

between variables. The researcher may want to find out why particular actions lead to
certain outcomes. This research takes time to deliver results.

7. Experimental research – This type of research is used to gauge the effect of a certain
treatment on a select group among a number of groups. The group given the separate
treatment is observed to establish the change in behavior after the treatment.

35 | Study of Merchandise Planning

 8. Design experiments – These are used in actual classrooms to study the effect of certain
interventions in the learning environment. The studies are conducted over a long period
of time before any noticeable trends are recorded.

9. Micro genetic research – This type of research is carried out on a single person who is
observed intensively over a long period of time. This type of research is mostly used to
study learning habits based on certain training procedures.

New types of research methods will continue to play a huge role in the development of Science,
Education, Brands and other fields. Power will belong to those who are able to understand
human behavior and adapt their services and products to suit the emerging trends.

LIMITATIONS

It is not possible for any market study to make it accurate due to many hurdles in the
collection and computation of data. Some limitations of the study are listed below

1. The sampling frame to conduct the study has been restricted to Central Store, Pune.
2. Respondents show reluctance towards giving correct information.
3. Findings of the study are based on the assumption that respondents have disclosed in
the questionnaire.
4. Time was a major constraint.
5. The sample was limited to only customers who have made a purchase at Central Store,
Pune.

36 | Study of Merchandise Planning

 Chapter- 3

Conceptual
Discussion

37 | Study of Merchandise Planning

 LITERATURE REVIEW

1. A first-generation entrepreneur, Kishore Biyani started his journey selling stone-wash

denim fabric in Mumbai in the 1980s.

2. More than 600 million customer visits are recorded across the 2,000 Future Group retail
stores, covering over 24 million square feet of space in over 400 cities and towns.

3. Future Retail Ltd was incorporated in the year 1987 under the name of Manz Wear
Private Ltd.

4. It serves customers in more than 250 cities across the country through over 12 million
square feet of retail space.

5. Central has outlets in Ahmedabad, Bangalore, Bhubaneswar, Cochin, Hyderabad, Pune,

Nashik, Mangalore, Mumbai, Navi Mumbai, New Delhi, Vadodara, Gurgaon, Indore,
Nagpur, Patna, Jaipur, Surat, Visakhapatnam.

6. Retail is India’s largest industry and for over 10% of the India’s GDP and around 8%
of the employment.

7. Indian retail is expected to grow 25% annually and expected that retail business in India
could be worth US$ 175-200 billion by 2016

8. The market size of Indian retail industry is about US$ 312 billion. The organized
retailing comprises only 2.8% of the total retailing market and is estimated at around
US$ 8.7 billion and the organized retail sector is expected to grow to US$ 70 billion

9. The present value of the Indian retail market is estimated by the India Retail Report to
be around Rs.12, 00,000 crore($270 billion) and the annual growth rate is 5.7%.

38 | Study of Merchandise Planning

 CURRENT ISSUES

1. Currently in central mall happiness sale is goes on. Flat 50-60% discount on over the
500 brands.
2. Future group is doing tie ups with different other companies
3. It is a corporate tie up.
4. . For this tie up future group is giving FPC (future previllige card) . the benefit of this
card is the person who is holding card that person will take 3-10% discount on all outlets
which comes under the future group.
5. Company giving the offers on axis bank user, they just have to swipe their axis bank
debit card and they will get 10% cashback
6. Bajaj finance card user have the special scheme they can shop on EMI in central mall.
7. Company giving the offer to paytm user if they shop for RS 3000 they will get RS 1000
paytm cashback.

39 | Study of Merchandise Planning

 OFFER

1. Get Rs 250 for every old garments from 9th to 31st August.

2.

3. Buy 2 get 1 free on buying t- shirts.

4. Shop for Rs 5999 and get Rs 1000 cashback and coupons worth Rs 2000.

5. Get American Tourister Cabin Luggage worth Rs.8,800 for 1,999 on shopping of
Rs.3,999.

6. Additional 10% Discount on ICICI Credit & Debit Cards.

40 | Study of Merchandise Planning

 7. Central Free Shopping Offer: Central 3 Days Free Shopping : 4th – 6th
August 2017.

8. Shop for Rs. 6000 & Pay only Rs. 3000 + Also Get Rs.3000 Back too

9. Happiness Sale: Up to 51% Discount at Central, Pune

41 | Study of Merchandise Planning

 Chapter- 4

Data
Analysis

42 | Study of Merchandise Planning

 DATA ANALYSIS

Primary data-

Primary data means the raw data (data without fabrication or not tailored data) which has just
been collected from the source and has not gone any kind of statistical treatment like sorting
and tabulation. The term primary data may sometimes be used to refer to first hand information.

Sources of Primary Data-

1. Personal Investigation
2. Through Investigators
3. Through Questionnaire
4. Through Local Sources
5. Through Telephone
6. Through Internet

Secondary Data-

Data which has already been collected by someone, may be sorted, tabulated and has undergone
a statistical treatment. It is fabricated or tailored data.

Sources of Secondary Data-

1. Government Organizations
2. Semi-Government Organization
3. Research Journals and Newspapers
4. Internet.

Data Analysis using primary and secondary data-

Which mall you prefer for shopping in pune?

a) Central mall [ ]
b) Phoenix market city [ ]
c) Pantaloons [ ]
d) Shoppers stop [ ]

43 | Study of Merchandise Planning

 customers preference
6

0
central mall pheonix market city pantaloons shoppers stop

customers preference

Interpretation- According to feedback by the customers it shows that the maximum

number of customers would like to go for shopping in phoenix market city then
Central Store.

Current planning environment-

For many of the retailers surveyed (44%), planning still occurs separately within each channel, which
indicates that the organization is still operating in distinct silos without the benefits and efficiencies
offered to a unified planning organization.

Planning Responses
Planning seperately with each
channel 44%
Plan multiple channels with
combined inventory 11%
Plan across channels with combined
inventory 30%
Plan customer first, channels second 11%
Others 4%

44 | Study of Merchandise Planning

 Responses

OTHERS 4%

PLAN CUSTOMER FIRST, CHANNELS SECOND 11%

PLAN ACROSS CHANNELS WITH COMBINED

30%
INVENTORY

PLAN MULTIPLE CHANNELS WITH

11%
COMBINED INVENTORY

PLANNING SEPERATELY WITH EACH CHANNEL 44%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Assortment Planning- which type of assortment you like the most-

a) Department wise [ ]
b) Company wise [ ]

Responses in
Assortment % respondant
Department wise 75% 35/50
companywise 25% 15/50

Responses in %

COMPANYWISE 25%

DEPARTMENT WISE 75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

45 | Study of Merchandise Planning

 Interpretation- 75% of customer wants department wise assortment of product for easily
finding their product.

Selection of Product- What type of Products you buy most in Central Store-

a) Staple Products [ ]
b) Seasonal Products [ ]
c) Fashion Products [ ]
d) Fad Product [ ]

total
Product responses respondant
Staple 30 50
Seasonal 5 50
Fashion 10 50
Fads 5 50

60
50 50 50 50
50

40
30
30

20
10
10 5 5

0
Staple Seasonal Fashion Fads

responses total respondant

Interpretation- 60% of customers liked to buy staple products.

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 Chapter- 5

My
Contribution
& Learning
47 | Study of Merchandise Planning
 MY CONTRIBUTION

1. Approaching customers for enrolment in Future Pay App.

2. Registration in Promotional activities such as Kidz Carnival Festival.

3. Meeting Customer grievances in CSD (Customer Service Department)

LEARNING

1. How to approach customer.

2. Handling customer’s grievances in case of any problem arises due to any product or
services.

3. Managing Events Regarding promotion of Organisation.

4. Merchandise Display ideas.

5. Merchandise Planning.

48 | Study of Merchandise Planning

 Chapter- 6

Findings
&
Suggestions
49 | Study of Merchandise Planning
 FINDINGS

1. The happiness sale was liked the most by customer .

2. 44% of Retailers believe planning still occurs separately within each channel, which indicates
that the organization is still operating in distinct silos without the benefits and efficiencies
offered to a unified planning organization.
3. 75% of customer wants department wise assortment of product for easily finding their
product. 25% like Company wise as they are brand conscious.
4. 60% of customers liked to buy staple products.

OBSERVATION

1. By Merchandise Planning it is found that Central Store have efficient Products and

Services.

2. Central Store have more attractive offers than many of their competitors due to

Merchandise Planning strategies.

3. Central mall have good merchandising than others.

50 | Study of Merchandise Planning

 SUGGESTIONS

1. Welcome the customers to spend more time in the store, even if they are not shopping.
Provide a recreational space for customers to Hang out. Things like offering free
water, tea and Coffee can make customers more at ease in posting up for a while.

2. Use Real Humans in Lieu of Mannequins

3. Use both type of assortment as those who are brand conscious, goes for that particular
company products.

4. Turn your Product into Art to attract more and more customers.

51 | Study of Merchandise Planning

 APPENDIX

Questionnaire are set of Questions asked to customers for knowing the Demand and
Supply in present as well as in future. Questionnaire prepared with the help of certain questions
can be listed below…
1) What made you choose us over other competitors?
a) Variety of products [ ]
b) Offers [ ]
c) Service provided [ ]
d) Food Court [ ]

2) How often do you visit our store?

a) Once a week [ ]
b) Once a fortnight [ ]
c) Once a month [ ]
d) Others [ ]

3) For what reasons did you have to visit?

a) Killing time [ ]
b) Shopping [ ]
c) To eat [ ]
d) For services [ ]

4) How easy was it to find for items you were looking?

a) Very easily [ ]
b) Easily [ ]
c) Average [ ]
d) Hardly [ ]

5) How likely are you to purchase our product again?

a) Always [ ]
b) Sometimes [ ]
c) Never [ ]

6) How we have exceeded your expectation?

a) By Product [ ]
b) By Services [ ]
c) By Offers [ ]
d) Others [ ]

7) What other products would you be interested in Purchasing from our store?
a) Clothing and Footwear [ ]
52 | Study of Merchandise Planning
 b) Accessories & Cosmetics [ ]
c) Food Court [ ]
d) Home appliances [ ]

CUSTOMER FEEDBACK SURVEY QUESTIONS-

When creating a customer feedback survey for your retail store, you
need to keep you specific store in mind. Take these question suggestions and tailor them to your
store, location, and customers. You might already know of some topics you’d like customer
feedback on, such as store hours or in-store events. Your survey can change over time as your
data needs change–just make sure you keep most of your survey consistent to be able to create
benchmarks you can track over time.

To help get you started, here are 10

questions to consider including in your retail customer feedback survey to ensure your business
is collecting data that will drive smart business decisions.

1. Did the store have everything you needed in stock?

a) Yes
b) No
2. Did you enjoy the selections of products?
a) Yes
b) No
3. Did you easily find what you need?
a) Yes
b) No
4. Are store prices fair?
a) Yes
b) No
5. How likely are you to recommend this store to others?
a) Good
b) Average
c) Bad
6. How would you rate our service overall?

7. What merchandise would you like to see offered?

8. Why do you shop at this store?
a) Nearly
b) Offer
c) Service
d) Others
9. What do you like most about the store?
a) Nearly
b) Offer
c) Service
d) Others
10. What would you like to change?
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 BIBLIOGRAPHY

1. www.futuregroup.in

2. www.scribd.in

3. Wikipedia

4. https://centralandme.com

54 | Study of Merchandise Planning