Internship Report of Md. Rashadul Haque

Internship Report

On

“Analysis of Merchandising Strategy in Garments Sectors of Bangladesh-

A Study on East West (BD) Inc.”

Prepared For

Mohammad Nazmul Huq

Assistant Professor

Assistant Superintendent of Examination

Department of Business Administration (Marketing)

Stamford University Bangladesh

Submitted By:

Md. Rashadul Haque

ID No: MBA 045 12670

Batch No # 45th

Program # MBA


Date of Submission: …………….


1

LETTER OF TRANSMITTAL

Mohammad Nazmul Huq

Assistant Professor & Assistant Sup. Of Exam

Department of Business Administration


Sub: Application for the submission of Internship Report.

Dear Sir:

Here I submit the report, you permitted me to prepare on “Analysis of Merchandising

Strategy in Garments Sectors of Bangladesh- A Study on East West (BD) Inc.” as a part

of my Master of Business Administration (MBA) Program.

As you will come across in the report, you will find that it focuses on the Merchandising

Strategy use at Garments in Bangladesh this report is an outcome of my knowledge on

Merchandising Strategy in Garments Sectors as well as my ability to work and specifically

my report writing skill.

Lastly, I would be thankful once again; you please give your judicious advice on my effort

and grant my paper to fulfill the requirements of MBA program.

Sincerely Yours,

_________________Md. Rashadul Haque

ID No: MBA 045 12670

Program # MBA

Major in Marketing


2

STUDENT’S DECLARATION

I am Md. Rashadul Haque student of Master of Business Administration (MBA), 45th batch

ID No: MBA 045 12670, from Siddeswary Campus, declare that this Internship report on

East West (BD) Inc. Titled “Analysis of Merchandising Strategy in Garments Sectors of

Bangladesh- A Study on East West (BD) Inc.” is completely of my own work. References

are provided, as it is free of plagiarism.

__________________Md. Rashadul Haque

Master of Business Administration.

Stamford University Bangladesh.

Batch: 45th

ID No: MBA 045 12670

Major in Marketing

3

SUPERVISOR’S DECLARATION

This is to certify that the Internship on East West (BD) Inc“Analysis of Merchandising

Strategy in Garments Sectors of Bangladesh- A Study on East West (BD) Inc.” has

submitted for the award of Master of Business Administration (MBA) with major in

“Marketing” from Stamford University Bangladesh carried out by Md. Rashadul Haque, 45 th

batch bearing ID No. MBA 045 12670 under my supervision. This report is free from

plagiarism.

He is permitted to submit the Project & Thesis report.

______________________

Mohammad Nazmul Huq

Assistant Professor

Assistant Superintendent of Examination

Department of Business Administration (Marketing)


4

Acknowledgement

Completion of any thing requires supports from various sources and it also an immense

pleasure for me to thank a large number of individuals for their precious help and

encouragement, which contributed directly, and indirectly to prepare this report.

First of all I want to convey my sincere gratitude to my advisor Mohammad Nazmul Huq,

Assistant Professor, Assistant Superintendent of Examination Department of Business

Administration (Marketing) Stamford University Bangladesh for his wholehearted

supervision. His suggestion and comments to make the report a good one was really a great

source of spirit for me.

I am also indebted to thank Mr. Najrul Islam, Sr. Merchandiser, East West (BD) Inc. Mr.

Shajamal Hossain, Merchandiser, Mr. Mohammed Fasiul Mowla, Jr. Merchandiser and Mr.

Sarker Abul kalam underwriter and all of the employees of East West (BD) Inc.

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Executive Summary

This research report is a partial requirement of the internship phase of MBA program,

Stamford University, Bangladesh. The topic of this research project “Analysis of

Merchandising Strategy in Garments Sectors of Bangladesh- A Study on East West

(BD) Inc.” was assigned by organization supervisor, East West (BD) Inc. and approved by

the University Supervisor. Thus the paper divided into two major parts: the organization and

the project. East West (BD) Inc. regarded as the pioneer in the private sector of Bangladesh.

Garments sector is the biggest and fastest growing sector in Bangladesh. It is also the highest

foreign currency earning sector in Bangladesh. Among this sector, East West (BD) Inc. is

growing very rapidly due to smaller investment requirement, greater backward linkage

facility & higher profit than woven garments. That’s why export of knit garments is

increasing steadily for last few years and up to now.

The report will mainly focus on the appraisal of “Merchandising department” at East West

(BD) Inc. Dhaka. The proposed study will cover the appraisal, practice, procedures and

techniques followed by the merchandising department in the preparation of order to shipment

in East West (BD) Inc.

Merchandising is an ongoing process of achieving the standards and goals set forth in this

policy. It is also the way products are chosen and presented to shoppers through display,

pricing, advertising, and education. The Merchandising Policy provides standards and goals

for product selection, including food prepared by the Good Tern Coop. It is the responsibility

of all staff who make merchandising decisions, under the direction of the General Manager,

to judge products according to these standards and goals approved by the Board of Directors.

6

The East West (BD) Inc. is brained child of some successful business people. It’s started the

historical operation on March 23, 1998 through opening at 190, inner Circular road,

Arambag, Dhaka-1000. East West (BD) Inc. is a Garments Sector whose main aim is to earn

profit through exchange of money & credit instruments by providing satisfactory services to

the customers. It is a service oriented as well as profit oriented organization. To perform

those two functions simultaneously. East West (BD) Inc. is one of the leading private

Garments sector having a spread network 05 branches across Bangladesh.

In Bangladesh, the future of garment industries is brighter in the era of globalization. Ultra

modern technology are being used in the woven and knit garment industries in the outside

world other than Bangladesh. At first it has highlighted the general introduction about the

East West (BD) Inc. Secondly it has discussed about the Garments sectors & the profile of

East West (BD) Inc. & it has briefly discussed about the Merchandising Strategy & it has

discuss the Marketing strategy practice and required elements to do it. It has done some

comparisons among the export, import and total foreign exchange. It has completed my

Internship in the 190, inner circular road of East West (BD) Inc.

During Internship period it has found here a good job environment and also got a lot of

cooperation from every department and every person. It is a great task to prepare a report on a

big branch.

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Table of Contents

PAGELatter of Transmittal 2Student’s Declaration 3

Supervisor’s Declaration 4

Acknowledgement 5Executive Summary 6-7Table of Content 8-10

Chapter 1: Introduction: 11-15 1.1 Introduction: 12

1.2 Origin of the Report 121.3 Background of the Study 131.4 Objectives of the Study 131.5 Scope of the Study 141.6 Methodology 141.6.1 Sources of Information 14

1.6.1.1 Primary Data Source 141.6.1.2 Secondary Data Source 15

1.7 Limitations 15Chapter -2: Profile of East West (BD) Inc.. 16-252.1 Historical Background of East West (BD) Inc. 172.2 Vision 172.3 Mission 172.4 Business Ideology: 18

2.5 Export Product Categories: 182.6 Company Nature: 192.7 Different Department: 192.8 Division of East West (BD) Inc. 202.9 Management System 202.10 Management Hierarchy of East West (BD) Inc. 212.11 Board of Director 222.12 Sister Concern of East West (BD) Inc. 232.13 Major Byres 242.14 Organization of East West (BD) Inc. 25

Chapter 3: Merchandising Strategy 26-52

3.1 Merchandise Strategy: 27

3.2 Merchandising Defined

273.3 Merchandising Policy: 27

8

3.4 Shared Responsibility. 283.5 Merchandising Standards 28

3.6 Flexible Merchandising 28

3.7 Differentiation Strategy: Cooperation With National Brand: 29

3.8 Buying & Merchandising Strategy 293.9 Business Strategy: 303.10 Primacy of The Business Front Line: 303.11 Scheme For Large Sales: 31

3.12 Source of Business Strength-Three Forces: 32

3.13 Visual Merchandising 333.14 Improved Presentation of Merchandise: 34

3.15 Set-Up of Brand Corner: 34

3.16 Support From The Scheme For Large Sales: 34

3.17 Marketing 34

3.18 Media Mix Strategy: 353.19 Trinity 36

3.20 Database Marketing: 36

3.21 Globalization Strategy: 373.22 Why Integrated Retail? 383.23 Merchandising Strategy, Merchandise Strategy Case Study Web-

Design for Marketing and Promotion Optimization39

3.24 Developing Your Merchandising Strategy: 393.25 Merchandising Strategy for Independent Retailers: 403.26 Product Locators: 433.27 Problem-Solving Techniques: 44

3.28 A Product Line-Up That Reflects The Opinions of Store Staff: 463.29 East West (BD) Inc. Meeting: 46

3.30 Merchandise Exhibition: 473.31 Back-Up By The Scheme For Large Sales: 47

3.32 Why Integrated Retail? 48

3.33 Promotion Optimization: 48

3.34 Definitions and Responsibilities 49

3.35 Merchandising Standards 50

3.36 Membership : 50

3.37 Product Range 51

3.38 Item of Product 51

3.39 Production Capacity: 51

3.40: How A Merchandiser Track His Production In The Factory:

52

Chapter 4: A Specific (Merchandising Management) Department That Assigned To Me For Study

53-61

4.1 Introduction: 54

9

4.2 Merchandiser Is A Data Bus Between Buyer & Seller 54

4.3 Merchandising Chronological Processes: 55

4.4 Sequence of Sampling 55

4.5 Second Pattern: 56

4.6 Counter Sample: 56

4.7 Salesman Sample: 57

4.8 Photo Sample: 57

4.9 Approval Sample: 57

4.10 Size Set: 58

4.11 Mock Up: 584.12 Pre-Production Sample 58

4.13 Production Sample 58

4.14 Shipping Sample 58

4.15 Swatch: 58

4.16 Trims: 58

4.17 Communication In International Business: 59

4.18 The Information Normally Get about an order: 594.19 How A Merchandiser Meet Buyers Requirements: 60

4.20 Method of Purchasing Raw Materials: 60

4.21 Procedure of Imported Goods: 50

4.22 How does the accepted order Is Passed on the Floor 61

Chapter 5: SWOT Analysis and Findings 62-72

5.1 Major Findings:Major Findings: 61

5.2 SWOT Analysis 715.2.1 Strength: 71

5.2.2 Weakness: 725.2.3 Opportunity: 73

5.2.4 Threat: 73Chapter 6: Recommendation & Conclusion 74-826.1 Recommendations: 756.2 Conclusion 77

Bibliography 78 Appendix 80 Questionnaire 81-82

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CHAPTER ONE: Origin of the report

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1.1 Introduction:

Garments sector is the biggest and fastest growing sector in Bangladesh. It is also the highest

foreign currency earning sector in Bangladesh. Among this sector, East West (BD) Inc. is

growing very rapidly due to smaller investment requirement, greater backward linkage

facility & higher profit than woven garments. That’s why export of knit garments is

increasing steadily for last few years and up to now.

In Bangladesh, the future of garment industries is brighter in the era of globalization. Ultra

modern technology are being used in the woven and knit garment industries in the outside

world other than Bangladesh. To survive in the free market of the world, we have to use

world standard latest technology in our ready made garment sector.

The report will mainly focus on the appraisal of “Merchandising department” at East West

(BD) Inc. Dhaka. The proposed study will cover the appraisal, practice, procedures and

techniques followed by the merchandising department in the preparation of order to shipment

in East West (BD) Inc.

Bangladesh is an under developing country. The development and progress of the country

largely depends on Export performance. In case of Bangladesh, among the Export Sectors,

the ready-made garments are the main earning source of foreign currency. In the garment and

Textile industry, merchandisers have been playing a vital role for the execution of export

orders. There are large numbers of merchandising personnel who are working in the garments

sector.

1.2Origin of the Report

This report titled “Merchandising Strategy use at Garments in Bangladesh” is a

curriculum requirement for Master of Business Administration Degree of Stamford

University, Bangladesh under the supervision of Mohammad Nazmul Huq (Assistant

12

Professor, Department of Business Administration, Stamford University Bangladesh)

organized at East West (BD) Inc, 202 House-128, Gulshan 1,Dhaka-1212, Bangladesh. So

this report is the outcome of my three months practical knowledge at East West (BD) Inc.

1.3 Background of the Study:

Garments sector is a very curtail part of a country. It plays a very much important role in the

economy and always tries to make a sign on the economy. This institution is responsible for

the financial stability of a country. Due to globalization of the market, all the industries have

to face the competition. And the present developing economy of Bangladesh demands

immediate development of garments sector which can make a good step to build up a strong

economic infrastructure. In this view the organization have to drive their operation in such

way which can make a contribution on the economy. And make a contribution into the

economy; organization needs efficient personnel with modern knowledge. This report has

been prepared in the light of this view to gather practical knowledge and prepared under the

guidance and supervision of the core teacher.

1.4 Objectives of the study:

The main objectives of this study are scrutinize the Merchandising Department of. East West

(BD) Inc. Academic knowledge is not perfect, practical knowledge is essential with it. The

objectives of the study are to gather knowledge through practical work. It will fulfill the

experience through theoretically as well as practically.

• To work in reputed company.

• To define and evaluate the Merchandising Dept.

• To observe the effectiveness of Merchandising Dept.

• To get the additional knowledge in different sectors about the organization.

• To identify the problems of the Merchandising dept.

• To interchange opinions of the officials regarding their organization

• To know the economic condition of Bangladesh through East West (BD) Inc. of

Bangladesh

To know the condition of the exporting organizations (specially garments

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Related) of Bangladesh

• To know the operational procedures of East West (BD) Inc. as a Buying House.

• To know the condition of the exporting organizations (specially garments related) of

Bangladesh

1.5 Scope of the study:

This report is the outcome of my practical knowledge during the period of three months

internship at East West (BD) Inc. House-128, Gulshan 1,Dhaka-1212. The study covered in

Organization areas are:

Marketing Department.

Logistic Department

Accounts Department

Administration

1.6 Methodology of the study:

This is a descriptive type of research that has undertaken insights and understanding about

overall operation of East West (BD) Inc. In Bangladesh. This report is prepared on the basis

of primary and secondary sources. The relevant information was collected through direct

interview of the personnel engaged in various department of East West (BD) Inc. The

secondary information was collected from different past files, which were collected from

personal visit of the company files.

1.6.1 Sources of Information:

In order to make the report more meaningful, two sources of data have been collected.

1.6.1.1 Primary Data Source:

Face to face conversation with the respective officers and staffs of the branch.

Informal conversation with the clients.

Practical work experience from different department of the Organization.

Relevant files and documents as provided by the concerned officers.

14

http://www.skyviewbd.com/Polymer.html

http://www.skyviewbd.com/imperial.html

1.6.1.2 Secondary Data Source:

Annual Report of the Organization.

Various books, articles and manuals etc.

Different web sites.

1.7 Limitation of the study:

The main limitations of the study are as follows:

• Due to the shortage of time could not get at depth knowledge of the Merchandising

operation and implementation practices in the company, as the period for which was assigned

to work as a merchandiser was very short.

• The merchandisers of the company are always busy, so they could not provide every

information timely.

• Sufficient records, facts and figures are not available. These constraints narrowed the

scope of the real analysis.

• There is no special training department for study.

• At lest six months required for completion of the final report but given only three

months. So to acquire a vast knowledge it is the most important limitation to me.

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CHAPTER 02:

PROFILE OFEast West (BD) Inc.

16

2.1 Historical Background of East West (BD) Inc.:

East West (BD) Inc. is a name in the Buying House sector of the country widely known to the

exporters of readymade woven and knight wear garments.

Bangladesh liaison office is located at, House no-16, Road no-32, Gulshan Model Town,

Gulshan-1, Dhaka-1212 Bangladesh in the VIP area of the capital. The organization has

emerged in the export market in early 2000, since then it has been exported quality garments

with entire satisfaction of global market like U.S.A, Canada, Germany, France, Italy,

Belgium, Britain, Sweden, Denmark, Netherlands, Switzerland, Mexico, Austria and many

others country of Europe. To ensure high level of quality, the organization is equipped with

modern machineries and highly qualified Local and Foreign employers and experts. A team

of well groomed technical and non technical personnel’s are working round the clock to

ensure the high level of quality, timeliness and cost effective export, thus ensuring the best

possible quality price. To keep up with the customer’s ever changing choice of garments

qualified technicians in the Research and Development department, who are working

meticulously to comply with the choice of customers garment in time.

ADDRESS:

Head Office

East West (BD) Inc.

202, House-15, Road- 128

Gulshan 1, Dhaka-1212

2.2 Vision of East West (BD) Inc:

They strive to provide the best quality garments to their buyers. They practice advanced

technology in all aspects of our operation to attain excellence concerning quality,

dependability and commitment for apparel industry and society.

17

2.3 Mission of East West (BD) Inc.:

The organization is committed to satisfying diverse needs of its customers through an array of

products at a competitive price by using appropriate technology and providing timely service

so that a sustainable growth, reasonable return and contribution to the development of the

country can be ensured with a motivated and professional work-force.

2.4 Business Ideology:

Alongside providing best service to the clients, patronizing and taking part in social

development activities as well as making due contribution to growth of the national economy.

2.5 EXPORT PRODUCT CATEGORIES:

A. Woven

i. Shirt

ii. Trouser

iii. Overall

iv. Jacket

B. KNIT

i. Knitted T-Shirt

ii. Knitted Polo Shirt, Polo Pique

iii. Knitted Legging

iv. Knitted Sweat Shirt

v. Nightwear

vi. Knitted Boy’s and Girls under Pant

vii. Knitted Shock & Shock in

viii. Knitted Women Jacket, Blazer including sky suit

ix. Silk women’s Blouse’s pullover

x. Silk Unisex Blouse’s pullover

xi. Children Swim wear

vii. Knitted Shock & Shock in

viii. Knitted Women Jacket, Blazer including sky suit

ix. Silk women’s Blouse’s pullover

x. Silk Unisex Blouse’s pullover

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xi. Children Swim wear

2.6 COMPANY NATURE:

100% garments export oriented buying house. It receives the buyer order and place it factory.

From receiving the inquiry of the buyer and contracting the factory to shipment the product to

the buyer all activities have done it.

2.7: Different department:

19

Different Departments

a) knitting Section:

Knitting

Inspection

b) Dyeing section:

Batch section

Dye house

Dyeing lab.

Quality control

Finishing

c) Garments section:

Merchandising

Sample

Cutting Section

Sewing Section

Finishing Section

d) Maintenance section:

Electrical

Mechanical

e) Store Section

f) Administration Section

g) Security Section

h) Marketing Section

i) Production Planning & Control

2.8 Division of East West (BD) Inc.:

Name of the divisions of East West (BD) Inc. are as follows:

a. Human resources division (HRD):

It is one of the important divisions of the Organization. It formulates the draft policies for the

20

Organization that is usually placed in the board meeting to accept. The division controls all

the administrative activities of the Organization. Decision about requirement, and postings of

the organization employees in different divisions or branches as well as other important

decisions are taken by the division. East West (BD) Inc. has 40 security guards working

round the clock to ensure the security of the organization.

b. Logistic:

Logistical services include repair maintenance facilities such as plumbing and prompt

troubleshooting. Permanent maintenance personnel ensure that the products are in good

condition.

c) Accounts and Finance:

East West (BD) Inc. has a experienced team in this department headed by senior most cost

and management accounting professionals of Bangladesh.

d) Marketing and Customer Service :

One of East West (BD) Inc. strongest point is its efficient Marketing Service Department.

This department gives personal attention to each client and is known for its prompt, effective

action. A warm, friendly atmosphere is created for the client who can make purchase

decisions at his/her pace without feeling pressurized

(e) MERCHANDISING DEPARTMENT:

This department is very important for every garment industries and garment related buying

house. Merchandiser is a Data Bus between Buyer and sellers. Merchandising department

perform the activities from collecting order to reaches the product on buyer. This department

is responsible for providing all the raw materials needed for all kinds of garments products.

(f) QUALITY CONTROL DEPARTMENT:

This department always cares on quality. This dept. control by the Q.C. Managers. They verify the quality as the buyer indicates their order. They audit all the process, pre-production to packing & final audit. Q.C. process is indicated previous. (g) COMMERCIAL DEPARTMENT:

21

Total transportation activities, i.e. import- export, L/C open, or any other Organization

activities performed by Commercial department. Commercial Managers cover all the

activities.

2.9: MANAGEMENT SYSTEM:

Intercom telephone

Fax

E-mail

Written letters

Oral

2.10

CHAIRMAN|

BOARD OF DIRECTORS.|

22

MANAGING DIRECTOR.|

EXECUTIVE DIRECTOR.|

GENERAL MANAGER |

ASSISTANT GENERAL MANAGER|

MANAGER|

ASSISTANT MANAGER|

Sr. Merchandiser |

Merchandiser|

Jr. Merchandiser|

Assistant Merchandiser|

OFFICE ASSISTANT OFFICE ATTENDENTIHelper

2.11

MR. DR. NURUZZAMAN Chairman

Mrs. Rakiba Zaman Director

23

http://www.nblbd.com/board.aspx#%23

Mrs. Raihana Zoha Director

MR. N. ZOHA Managing Director

2.12: Sister Concern of East West (BD) Inc. :

1. Knitivo Knitwears ltd.

2. Zaman Knitwears ltd.

3. Fakir Apparels Ltd.

4. KnitivoFashion Ltd.

5. Fakir Dyes & Chemicals

6. ZamanPackaging Industries

7. Zaman Label Industrie

2.13: MAJOR BYRES:

# Basewear Fashion GmbH

ABC STR-47,

20354, Hamburg,

Germany. Phone: 0049-040-808150

# Greystone Textilhandelsges GmbH

Aspelohe 27C,

22848, Norderstedt,

Germany. Phone: 0049-040-53431042

# Le-go Bekleidungswerke GmbH

Am Wiesengrund 20,

95032 Hof, Postfach 3240, 95004, Hof, Germany.

# Gebr. Huber & Co.

Austra Be 28,

72459, Albstadt, Germany.

Phone: 0049-7431-959761

24

# Brands Corporate Wear GmbH & Co.

Ohepark 1,

21224 Rosengarten

Germany. Phone : + 49(0) 4108-4177-11

# Hebestreit Garments International GmbH

Karlsbader Str.10,

D-90759 Langenzenn,

Germany. Phone: + 49 09101-608111

# Jack Wolfskin

Ausrustung Fur Draussen GmbH & Co KGaA

Limburger StraBe 38-40

65510 Idstein, Phone + 49(0) 6126954-374, Fax 49 (0) 6126 954 -179

# POINT ZERO

Canada

# AMBER ENDURABLE

Canada

# AMBER ENDURABLE

Canada

# ENIGMA

Spain

# ENIGMA

2.14 Organization of East West (BD) Inc.:

Numbers of Employees:

East West (BD) Inc.is the pioneer in private Garments sector. The numbers of employees

increased throughout its life because of growing nature. In 2009 the numbers of employees

were 3000, which were 2500 in 2008 and 2000 in 2007. Number will be increased when the

number of branches will be increased.

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Numbers of Employees.

Years 2005 2006 2007 2008 2009

Number of Employees 1600 1800 2000 2500 3000

Graph 02: Graph of Numbers of Employees.

It seems that as the branches increases, the numbers of the employees also increases to

provide better customer service to retain the passion in the Garments sectors. It indicates that

the East West (BD) Inc. is performing well over the last five years.

26

CHAPTER THREE:Merchandising Strategy

Merchandising Defined:


policy. It is also the way products are chosen and presented to shoppers through display,


for product selection, including food prepared by the Good Tern Coop. It is the responsibility

27

of all staff who make merchandising decisions, under the direction of the General Manager,

to judge products according to these standards and goals approved by the Board of Directors.

3.4 Shared Responsibility:

Merchandising priorities are determined through a dynamic process involving

communication among the manager, staff, the Board, and owners:

1. The Board affects decisions by setting policy and advising the General Manager. The

Board is responsible for an annual review of the Merchandising Policy and for revising and

updating it as necessary.

2. Manager and Staff affect decisions by recommending and choosing products consistent

with the merchandizing policy and in response to input from owners and prevailing sales

records.

3. Owners affect decisions by requesting new products or challenging existing products.

3.5 Merchandising Standards:

Merchandising is the way products are chosen and presented to shoppers through display,

pricing, advertising and education. It is the responsibility of all staff who make

merchandising decisions, under the direction of the General Manager under the general

direction of the Board of Directors, to judge products according to these standards and goals.

The Board's Policy Committee is responsible for an annual review of the Merchandising

Policy and informing and advising the Board of Directors on merchandising policy issues.

Merchandising priorities will be managed through a dynamic process involving

communication among staff, the Board, and owners:

• Owners affect decisions by informally requesting new products, complaining about

products, and/or making formal product recommendations.

• Staff affects decisions by recommending and choosing products.

• The Board affects decisions by setting policy and advising the General Manager.

Merchandising is an ongoing process of achieving these standards and goals. The following

standards and goals guide the decisions of EAST WEST (BD) INC., including customer

special orders.

28

3.6 Flexible Merchandising:

The keys to effective online merchandising are simple: the site and sales process should be

interesting, dynamic, appealing, and, most importantly, relevant to each shopper. Relevance

means having the flexibility to provide a range of merchandising techniques to suit the needs

of different shoppers, or the same shopper in different buying situations. Here is a collection

of flexible merchandising strategies used on e-commerce sites—product locators, problem-

solving techniques, and customer relationship tools.

3.7 Differentiation Strategy: Cooperation with National Brand:

The company offer an impressive selection of popular merchandise by dealing with the

leading brands of jeans and diverse product categories surrounding jeans on an ongoing basis.

The company also enhance differentiation from our competitors through collaboration models

and advanced sale of topical products. Particularly in the collaboration models, the number of

national brands that participate in the collaboration with Right On has been steadily

increasing, as these models have acquired a strong reputation among customers.

3.08 Buying & Merchandising Strategy:

Why Buying & Merchandising Strategy?

This would encompass three broad areas of consulting:

Sourcing

Vendor Management

Pricing

Retail Buying and Merchandising Strategy Service caters to the needs of:

Entrepreneurs and organizations venturing into the retail domain

Retailers who want to optimize financial returns by improving sales and margins,

reducing lost sales and markdowns.

Existing retail businesses eyeing new and innovative product lines as a part of their

differentiation strategy.

29

How?

3.9 Business Strategy:

All of our business strategies and initiatives are based on the primacy of the business front

line which begins with sales outlets. The company meet the needs of customers by reflecting

opinions voiced at the stores in our merchandise and services.

Based on this primacy of the business front line,company aim to construct in our mid-term

management strategy the “Scheme for Large Sales” in order to achieve lasting growth by

reinforcing our business foundation.

3.10 Primacy of the Business front Line:

The company comprehensively pursue the concept of the primacy of the business front line,

and quickly respond to the changes in the market by incorporating the concept that cannot be

obtained from using only POS data, into our business decision-making procedure.

30

3.11 Scheme for Large Sales:

The Scheme for Large Sales is a system that supports our strategies for store-opening,

merchandise, sales promotions and merchandise supply. The system is designed to achieve

the five pillars of success, namely “the right time, the right products, the right quantity, the

right place, and the right price” by organically combining three dynamics, stores, products

and sales based on the concept of the primacy of the business front line. Company are going

to strengthen the foundation of our business and would like to grow our business lastingly by

promoting the structure of the Scheme for Large Sales.

31

3.12 Source of Business Strength-Three Forces:

In the retailing industry, there are three essential forces, Store Dynamics, Product Dynamics

and Sales Dynamics. Store Dynamics―opening stores in good locations and providing a

housing to enable large sales Product Dynamics―purchasing merchandise for large sales

Sales Dynamics―the power to sell the merchandise The company not only reinforce and

exploit each force individually but also combine them organically under The company

concept of the primacy of the business front line in order to accomplish the competitive

leadership.

32

3.13 Visual Merchandising:

The company conduct own visual merchandising (VMD) to underscore the attractiveness of

our merchandise to the maximum extent and produce our selling spaces in a comprehensive

manner.

The company create sales sites that make it easy for our customers to look at and select

merchandise by designing them to maximize the characteristics of individual products and

brands and introducing products based on a vivid image of actual sales sites.

Set-up of Brand Corner:

For the main brands, The company promote in a robust way the attraction of each brand by

setting up a brand corner in cooperation with multiple national brands. In doing so, we fully

showcase the charms of our merchandise by incorporating the intentions and thoughts of the

merchandise producers in the store interior.

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3.16 Support from the Scheme for large Sales:

Thanks to the Scheme for Large Sales, The company are able to design and procure

merchandise with an image of how they are actually displayed at stores and how customers

look at and touch them. The company aim to maximize sales by creating sales sites that are

carefully planned in every detail.

3.17 Marketing:

The company believe that it is important to establish extensive information contact points

with customers.

For that purpose, The company carry out mass marketing extensively, with such measures as

sending information on merchandise and events using flyers and our website, listing our

merchandise in magazines, and broadcasting TV commercials simultaneously. The company

also carry out one-to-one marketing sending mail magazines through mobile phones and the

Internet and sending catalogs and direct mail.

3.18 Media Mix Strategy:

The company basic stance for marketing is to adopt “media mix strategy,” using multiple

media efficiently and effectively by capturing the characteristics of each advertising media.

In consideration of the features of each product and the location of each store, The company

work to generate synergy in our marketing by supplementing the advantages and offsetting

the disadvantages of each media, using media suitable for the customer base as the main

target, while creating consistency in the key visuals and messages transmitted by the

campaign in each season.

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Brand Corner

3.19 Trinity:

Throughout the year, company strive to construct a trinity of “merchandise, sales sites and

sales promotion” by making links among merchandise plans, displays and sales plans at

stores, and the marketing plan.

The company aim to maximize sales by combining sales promotion media and tools with our

main products and sales sites in each season.

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3.20 Database Marketing:

The company accumulate purchase histories of all card members using a membership card

with a bar code issued to customers free at the time of purchase. By analyzing purchase

activities based on the purchase history, The company can approach customers’ specific

needs directly. In addition, as the purchase history enables us to analyze customer segments,

The company can conduct marketing for each segment and provide loyal customers with

services and special privileges to build a closer relationship.

3.21 Globalization Strategy:

Why Globalization Strategy?

To help retailers reach out and expand their retail networks beyond the geographical

boundaries of their domestic countries. Some of the steps involved in this service are:

Assisting retailers in evaluating geographic markets best suited to their business

objectives

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Helping retailers frame a strategy (including overseas acquisitions) as a part of Market

Entry Strategy

Help retailers evolve formats best suited for targeted markets

Facilitate the identification of JV partners in the new markets

For Whom?

Globalization Strategy service caters to the needs of:

Retail organizations eyeing international markets

Retailers acquiring new businesses overseas as a part of their diversification strategy

Overseas retailers planning to enter the Indian market

How?

3.22 Why Integrated Retail?

Integrated Retail carries out Globalization Strategy services based on the following strengths:

Large team with over 200 man-years of retail operations and business experience

A client base of over 100 retail companies across Asia in retail automation solutions

Successful implementation track record of similar projects

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Constantly updated repository of best business practices in retail from across the

world

Data Organization of benchmark retail performance data

Access to macro-economic data impacting overall retail and consumer businesses

3.23 Merchandising strategy, Merchandise strategy Case Study Web-Design for Marketing and Promotion Optimization:

OVERVIEW

This Case Study is a brief outlook on what you should be thinking about if you want to start a

business on the Internet and join the doc com phenomenon.

CHALLENGE

The challenge in this case study is do the following

Suggestions for Cost Analysis for a perceived virtual business

Design, creation, & implementation of your multi-page interactive, fully functional

web site

Developing your Merchandising strategy

Promotion Optimization

SOLUTION

Suggestions for Cost Analysis for a perceived virtual business

The e part of the "business"

Domain name registration

Hosting Costs

SSL Certificate registration with a CA Authority

Payment system

Developing your Brand guidelines, logo, mission statement

Business part of the "business"

Registering a Ltd company (If required)

Hiring an Accountant to file your records

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Legal costs may apply (partnership agreement).

Supply Chain and Logistics

Developing your Merchandising strategy

Developing your Web site design

Design, creation, & implementation of your multi-page interactive, fully functional

web site.

Design, creation, & implementation of your multi-page interactive, fully functional web site

Deciding the content of your site

Create a sitemap illustration your pages and links

Develop templates

Validated your templates for quality (W3C WIA)

Create a Wire Frame

User acceptance testing

Propagate content to the wire frame using templates

Make a final quality check by Re-validating your pages

3.24 Developing your Merchandising strategy:

Retail merchandising is a science. Traditional retail store chains pay millions of pounds every

year to have merchandising experts lay out stores and handle product placement. Online retail

merchandising is no less difficult - but the variables are different. Some of the questions you

need to ask yourself:

Which products are ideal "leaders" to bring in traffic?

Should you use "loss leaders"?

How should you arrange your cross-sell, and secondary items?

Where will you find the best advertising opportunities online for your leaders?

How should your site's merchandising be laid out for each of your main product

types?

What types of pricing?

Price is a key component but value is the overall package you are providing your consumer

and it is important to review the different aspects that effect this proposition:

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What is the return policy?

How easy it is for a consumer to return a product that is defective or unsuitable?

What risk is being put on the consumer?

How can the consumer purchase the product and what payment options are available

to them?

Is it easy for the consumer to purchase the product?

Are services offered during the purchase process?

Do they fully understand what they are purchasing?

What warranty options are available for the consumer to protect their purchase? Are

these included or are they an additional charge?

How is the product delivered? Can additional services like next day shipping,

installation or white glove services be purchased?

Is the purchase/delivery process considered a positive experience, something your visitors

cannot get anywhere else?

3.25 Merchandising Strategy for Independent Retailers:

For just about every independent retailer, cash is king. Whether the focus is on daily and

weekly sales to assure that there's money in the Organization to meet payroll and other

expenses, or on building a cash balance during the busy season to get you through the slower

times, most independent retailers keep a very close eye on cash flow.

Obviously, there are many factors that determine whether a small retailer is meeting, or

exceeding, its cash requirements and building cash balances on an ongoing basis. But for

most, the cash profile of the business can be traced directly back to a series of fundamental

decisions concerning positioning and merchandising strategy.

The critical strategic advantage of any independent retailer is the ability to focus on, and

respond quickly to, customer needs, while providing a superior level of customer service and

state-of-the-art product knowledge. The one thing that the big-box retailers excel at is driving

down costs and offering their customers the lowest price for commodity or near-commodity

goods. They understand that for these items the vast majority of shoppers are highly price

sensitive.

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But for any item, and especially for those that are not commodities, there is a critical segment

of customers who are not price shoppers, who focus instead on product quality, service, and a

relaxed, friendly experience.

In other words, independent retailers should avoid competing on the basis of price, because

there will always be a competitor with larger, deeper pockets who will be able to undercut

you. Competing on the basis of product quality, product knowledge, and customer service

enables a small retailer to present to their customers a compelling value proposition and

maintain critical price integrity.

Strategic positioning, therefore, leads directly to product selection and pricing policy. Selling

higher quality, specialty products on the basis of their intrinsic value, and the product

knowledge and customer service that accompany them, insulates a small retailer from price

competition, and enables the retailer to obtain a higher initial markup, and avoid corrosive

sales, price promotions, and other incentives that eat into margins.

How is this done? Here are a few specific ideas to help position your store as a premium

destination for the finest products, knowledge and service, and generate the margins you’ll

need to assure continuing positive cash flows:

Adopt a better/best pricing structure, rather than a good/better/best structure. The

classic retail pricing structure for any product category is three-tiered, with an

opening priced "good" quality item, a mid-priced "better" quality item, and a higher-

priced "best" quality item. The nature of contemporary retailing is that for most any

product category, there is a big box who is seeking to lock up the opening price point.

Let them. They are more than happy to trade margin for volume, and have the deep

pockets to do it. Instead, protect your margins by focusing your efforts on better

quality goods, using a "better" quality item as your opening price point, and focusing

your energies around the quality and features of the "best" item.

By the same token, avoid carrying the same items as the competing big-box store.

This may not always be possible, but if you must, think of those items as

accommodations to your customers, rather than key items that you are trying to

maximize the sale of. Rather, build your business around unique items and unique

product categories in niche markets to a carefully targeted clientele.

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http://www.articlesbase.com/small-business-articles/merchandising-strategy-for-independent-retailers-1060739.html




Keep your inventories lean to minimize markdowns and their impact on margins. The

instinct of many small retailers is to have enough stock to never miss a sale, but all

that inventory carries tremendous markdown risk, which can decimate margins and

cash flow. Bring fresh inventory into your store as close to the time of anticipated

sales as possible. That way, you'll also always have something new and exciting to

offer your customers.

Don't get locked into standardized pricing formulas, like key stoning. Your pricing

should not be merely a function of what you paid your vendor for the item, but rather

the intrinsic value of the item, and the accompanying service you provide your

customers. The product knowledge and customer service that comes with your

product offerings has a value to your customers. Don't be afraid to include that value

in your pricing.

Avoid price-item advertising at all costs. Focus your advertising on building the brand

cache of your store, not specific sales or promotions. When customers think about

you, make sure your advertising has left them with the thought that you are a

destination for premium quality and selection, state-of-the-art product knowledge, and

outstanding customer service, and not price.

From a customer's perspective, customer service and product knowledge are the

means to resolving problems. Whether a customer turns to you for something to

knock back the pesky weeds in their vegetable garden or for a truly unique

anniversary gift for their favorite aunt, customers are willing to pay for solutions.

Make sure you and your staff are armed with state-of-the-art product knowledge and

the offer your customers the very finest service.

Define your mission around offering your customers premium specialty products, state-of-

the-art product knowledge, and the finest customer service, and you will insulate yourself

from corrosive price competition, while protecting your margins and cash flow.

3.26 Product Locators:

Product locators help buyers find the products they need, often by using both a classification

scheme and a search mechanism. Products need to be classified so buyers can easily locate

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them on your site. The efficient way is to incorporate classification data into the product

detail and let e-commerce tools generate the Web pages as needed. The alternative is to

laboriously paste the product data into Web page templates at the desired locations—and

repast if the site design changes. The following are some product locator strategies enabled

by product classification data:

Categories

Visual catalog

Parametric comparison

Categories:

Many e-commerce sites organize products by category—beginning with a broad

classification, such as clothing, and narrowing in steps, such as outerwear, until individual

items, such as mountain parkas, are reached. This metaphor organizes products in a familiar

way like paper catalogs, and buyers click through Web pages to reach real products.

Visual Catalog:

An electronic components supplier provides a visual catalog that makes it easy to navigate by

inspecting a tree of products and selecting items that look like the ones needed. This

metaphor, which can be developed with custom templates, helps the occasional buyer who

doesn’t know industry terminology. The supplier also provides search tools for frequent

buyers that use full-text descriptions, product codes, or competitors’ product codes.

Parametric Comparison:

A PC accessories reseller lets the buyer pick product models and accessories from pull-down

menus and then presents a table of items that match. Then, the buyer can compare

specifications of individual items against each other and select which to buy. This metaphor,

available with custom templates, creates virtual mini-catalogs on the fly to suit buyer

requirements.

3.27 Problem-Solving Techniques:

Locating products is one thing, making the sale is another. Problem solving (matching the

right products to the customer’s need) increases the chance of closing the sale and bolstering

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volume. Successful matching requires linking product uses to needs. The following are some

problem-solving techniques made possible by product usage attributes:

Questions and answers

Up- and cross-selling

Accessorization

Customer relationship tolls

Up- and Cross-Selling:

Sites are beginning to add up-selling and cross-selling capabilities to enhance per-sale

revenues. Up-selling offers more capable (and more costly) versions of a product. Cross-

selling offers a complementary product to be purchased at the same time to expand the range

of problems solved. Up- and cross-selling require links between models with varying levels

of capacity and features and links to products with complementary uses.

Accessorization:

Some sites focus on providing all items needed for specific uses, problems, or applications.

For example, road warriors who want a portable printer may also need specific cable,

batteries, power supplies, replacement print cartridges, ink tanks, special types of papers,

helper applications, portable scanners, and even online access to clip art—all items that can

be classified as “for use with” the portable printer.

Customer Relationship Tools:

The customer relationship data, such as product preferences, past purchases, and

demographics, can help shape merchandising strategies, if the relationship information is

recorded in data attributes. The efficient way to employ customer relationship data is to

accumulate preferences and purchase history on an ongoing basis in a customer profile—and

ensure that this data can be linked with product detail for subsequent promotions. This

approach is being adopted by increasing numbers of retailers and direct marketers for their

customer loyalty programs.

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Or, you can analyze past sales data and classify customers after the fact. This is difficult if

product descriptions are the usual haphazard abbreviations shown on invoices. The following

merchandising techniques can be based on linkage of customer relationship attributes to

product information:

Customer preferences

Past purchases

Contracts

Customization/personalization

Customer Preferences:

Keeping a record of preferences can enhance your relationship with customers in many ways.

For example, maintaining the customer’s preferred payment method reduces form fill-in at

payment time. Size, color, texture, style, genre, lifestyle, and language preferences can

simplify the purchasing process and enhance sales for clothing, house wares, sports gear,

music, books, periodicals, and other goods. Customer preferences need to tie back to category

or item-level attributes to work effectively.

Past Purchases:

Records of past customer purchases, especially equipment, can enhance sales opportunities

for extended warranties, supplies, maintenance, upgrades, and add-ons. Past purchases of

supply items can drive seasonal or customer-specific promotions. Leveraging purchases data

is straightforward if the product codes used in recording the original sale are accurate and

meaningful.

Contracts:

Much business purchasing is done under supply contracts. Contracts can be administered

systematically online if discounted items are explicitly listed in the contract (in other words, a

contract-specific version of the catalog is prepared). Tiered discounts are often based on

purchase volumes by commodity class, which requires accurate classification of product

items.

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Customization/Personalization:

Meeting customer-specific requirements can cement your relationships. Customization

requires data fields at the item level, carrying them through the order process. Business-to-

consumer examples include storing measurements for make-to-order clothing and custom-fit

bicycles in a profile and enabling custom selections of music on CDs. Business-to-business

examples include storing specifications for make-to-order servers, routers, lab equipment,

and specialty chemicals in a profile, and enabling custom configuration of personal

computers and servers

Finally, product locators, problem-solving techniques, selling strategies, and customer

relationship tools all rely on attributes to associate products with one another, merchandising

techniques, and customer groups. Until recently, it has been difficult to rapidly deploy new

merchandising strategies, because of the need to add new attribute fields and update existing

field values for catalog entries.

3.28 A Product line-up that reflects the opinions of store staff:

To reflect the requests and responses from our customers in product line-ups, The company

actively seek out and adopt opinions of our staff at stores. For planning and procurement as

well as for introduction and distribution of merchandise, The company always respect the

opinions of the staff on site and obtain their approval.

As an opportunity to directly draw opinions from them, we hold SY (short for “suguyaru” in

Japanese, meaning “prompt action”) and SY section meetings from time to time to discuss

immediate tasks and find solutions. In addition, in the merchandise exhibition held every half

year, we present specific explanations of our products to our store managers nationwide and

give them feedback on how the opinions of the staff at stores have actually been incorporated.

3.29 East West (BD) Inc. Meeting:

At the SY Meeting, we discuss the merchandise to be injected, and its volume and sales

promotions. Then we make adjustments the balance of supply and demand of merchandising

at the stores by working together with the head office and the stores.

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East West (BD) Inc. Section Meeting:

At the SY Section Meeting, the members including store staff, distributors, buyers of the

company, are divided into groups by types of merchandise. The company discuss what kind

of merchandise should be introduced in the future by group, based on the past experience on

the balance of the merchandise at their stores.

3.30 Merchandise Exhibition:

The company hold a merchandise exhibition every six months, bringing together all store

managers. At the exhibition, we give feedback to the store managers on how the opinions of

the store staff are being commercialized by giving specific explanations about merchandise

being introduced in the coming six-month period.

3.31 Back-up by the Scheme for large Sales:

The Scheme for Large Sales enables us to offer ideal product line-ups with the five pillars of

success (the right time, the right product, the right quantity, the right place, and the right

price).

By offering “the right product” at “the right time” in “the right display,” we reduce

opportunity costs and losses from price cuts, and improve efficiencies in inventory. As the

inventory risk declines, The company are able to work on more challenging products.

3.32 Why Integrated Retail?

Integrated Retail carries out Buying & Merchandising Strategy based on the following strengths:

Large team with over 200 man-years of retail operations and business experience

Successful implementation track record of similar projects

47

Constantly updated repository of best business practices in retail from across the

world

Data Organization of benchmark retail performance data

Access to macro-economic data impacting overall retail and consumer businesses

3.33 Promotion Optimization:

Online marketing budget

Awards with Google

Overture

Direct Mail Marketing

Viral Marketing

Get listed with:

Dmoz.org

Yell.com

Blogs relating to your site

Offline marketing budget

Leaflets

Newspaper

Radio

Referral scheme (Merchandising Strategy)

The Goal of all of these is to bring visitors to your Landing page

On you landing page you want to:

Attract click and drive traffic

Retain traffic

Make it easy for user to take the desired action

If the user takes the desired action it is know as a conversion

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How to design a landing page to capture your visitors and lead the visitors to take action?

Interesting Headline

Prominent images or graphics

Simple promotional text

Call to action such as add to cart

3.34 Definitions and Responsibilities:

Merchandising is the way products are chosen and presented to shoppers through display,


for product selection, including food prepared by EAST WEST (BD) INC.. It is the

responsibility of all staff who make merchandising decisions, under the direction of the

General Manager, to judge products according to these standards and goals approved by the

Board of Directors.

Responsibilities. The Board's Policy Committee is responsible for an annual review of the

Merchandising Policy and for informing and advising the Board of Directors on

Merchandising Policy issues.

Shared Responsibility. Merchandising priorities are managed through a dynamic process

involving communication among staff, the Board, and owners:

Owners affect decisions by requesting new products or challenging existing products.

Staff affect decisions by recommending and choosing products.

The Board affects decisions by setting policy and advising the General Manager.

Response to Product Safety and Other Consumer Concerns. The General Manager is

responsible for ensuring that staff responds promptly and appropriately to required food and

product safety recalls. In addition, East West (BD) Inc. management is responsible for

staying aware of controversial consumer concerns that are likely to be of interest to East West

(BD) Inc. owners and customers. As quickly as possible, management is expected to prepare,

update, and make available to customers balanced information about controversial food and

product issues.

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3.35 Merchandising Standards:


policy. The following standards and goals guide the product decisions of East West (BD) Inc.

including customer special orders.

3.36 Membership :

BGMEA

BKMEA

Oeko-Tex

3.37 Product Range:- Men Women Kids

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3.38 Item of Product:

Knit fabric : Single jersey, Heavy jersey, Pique, Lacoste

Interlock, Rib & pleated design rib, French

Terry, Fleece, Collar & cuff made of cotton,

Viscose, Modal, Cotton/modal, Polyester,

Cotton/polyester, CVC etc are also made

Garments : T-shirt, Polo shirt, Sweat-shirt,

Tank Tops, Children wear, Jogging suits,

under wear, Runners pant, Functional wear,

Fashion Dresses and Sports wear etc.

3.39: Production Capacity: Section Capacity

Knitting 37 Tons /DayDyeing 45 Tons/DayFinishing 40 Tons / DayGarments 80,000 Pcs / DayGarments washing 25000 Pcs /DayPrinting 25000 Pcs /Day (upto 8 colors )Embroidery 92 Heads (Total)

4.40 How a Merchandiser Track His Production In The Factory:

1. Follow-up yarn supply in factory

2. Knitting follow-up

3. Linking follow-up

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4. Accessories supply

5. Finishing follow-up

6. Ready for export

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CHAPTER- FOURMerchandising in East West (BD) Inc.”

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4.1 Introduction:

The “Merchandising” is known to the persons specially involved in garments trade.

The term merchandising has been derived from the ‘merchandise”. Merchandise means

buying and selling huge amounts of goods.

The term “MERCHANDISING” may be define as Person who merchandises the

goods, specifically for export purposes. Garments merchandising means buying raw materials

& accessories, producing garments, maintaining required quality level and exporting the

garments within scheduled time.

It has been found working as a merchandiser in the organization. Here five

merchandisers working with different Buyer. At first the Buyer gives them a inquiry sheet

with measurement chart sketch of sample. Then they make a development sample & send it

to the Buyer. Buyer makes comments on it, it is OK/ NOT. Then the question of price the

merchandiser going to negotiate. Sometimes they successful, sometimes they being fail. If

they success they order Yarn, Trims, & accessories. In front of their shipment time they are

trying to arrange everything as early as possible. When all items are in store then Yarn

is given for 2/3 pcs of garments sample send for make size set. When size set made then they

measure it. If it is OK the Yarn provide for 100% production. In production process the

merchandiser just follow up his order, what is the condition of his order? During that total

time merchandiser inform his Buyer what is the condition of his product. In our 90 days

working period I have also follow up five whole worth order.

4.2 Merchandiser Is a Data Bus between Buyer & Seller:

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Merchandiser is he/she who builds up relationship with the buyer and acts as a Seller.

He plays a vital role in an organization in a sense that he bears more responsibility than other

in regards to execution of an order. The responsibilities which he bears on the job are as

follows:

• He represents as a buyer to the Factory.

• He represents as a seller to the buyers.

• He inspects Quality as a buyer (from the Buyer’s point of view).

• He negotiates a price for the sellers.

• He looks at the deal from seller’s point of view.

• He looks into the business to flourish more in the future.

• He tries to offer the deal more competitive without compromising the Quality.

• His object is to satisfy the buyers to progress more of the future Business.

• His aim is to impress the buyers by means of:

1. Right products

2. Right Quality

3. Right Quantities

4. Right Time

5. Undamaged condition

4.3 Merchandising Chronological Processes:

A. Salesman Samples, Counter Samples, Approval Samples, Photo Samples, Preproduction

Samples, Production Samples, Shipping Samples.

B. Swatch and Trims, Trim’s related Affairs, Communication in international Business.

Sample: Reference garment corresponds to

•• • The ARTWORK (styling) done by designer and/ or developer •• • Particular PURCHASE ORDER •• • Any REVISION to the style work

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•• • CONFORM with any specific requirement etc

4.4 Sequence of Sampling:

First Pattern

Def.: The first physical version of any garment as per the artwork done by designer and/or

developer.

HUMAN MIND > SKETCH > PAPER PATTERN > SAMPLE

Purpose:

See the DESIGN work & test the FITTING

Status:

Nothing specific

Material:

Available

Price:

Not conformed

Quantity:

1 (for customer) + 1 (for Merchandiser)

Delivery:

As per URENGECY

4.5 Second Pattern:

Usually designer/ developer always ask for some CHANGES to the first pattern.

Second pattern is made as per comments.

4.6 Counter Sample:

Where first pattern is made on designers artwork, Counter sample is to make not on

designer’s artwork, has to follow another sample given by the merchandiser.

Purpose:

See the WORKMANSHIP &Test the FACTORY

SKILL

Status:

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Nothing specific

Material:

Available

Price:

Not conformed

Quantity:

1 (for customer) + 1 (for self keeping)

Delivery:

As per request

4.7 Salesman Sample:

Sample is made when PRICE is confirmed and orders are on speculation, usually in L size in

all color combinations of expected order. Buyer arranges a meeting with its customer and

record their response on order quantity per COLOR, SIZE etc. and finally place order to their

vendor.

Purpose:

Sales Meeting by Retailers, Market Appraisal,

Demand / Order

Forecast

Status:

Final stage of the order confirmation

Material:

Actual

Price:

Confirmed

Quantity:

There is MINIMUM quantity per color

combination

Delivery:

Very important to MEET the delivery date.

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4.8 Photo Sample:

Samples are made with actual color and material to be worn by the models on the event of

SHOOTING for catalog.

4.9 Approval Sample:

In any discrete period of time, whenever it required any revision in the sample, a new sample

is made (some times mock-up is workable too) as per new specification. It is sent to buyer for

his APPROVAL of the conformity that- the revision is done correctly.

4.10 Size Set:

Consists of 1 pc from Each Size for Each Color combination.

4.11 Mock Up:

Any part of the garment to make for particular purpose, not complete garment. Sometimes it

is necessary to send to the buyer any part of the garments, such as sleeve, collar, neck etc and

some accessories.

4.12 Pre-Production Sample:

When material for bulk production arrived, factory makes a sample with the actual material

and sends to buyer.

4.13 Production Sample:

It is a reference to the buyer that the bulk is being produced as per specification. Buyer wants

to be assured that correct material is sourced and line workmanship confirm to the quality.

4.14 Shipping Sample:

A sample is kept from every Pre Shipping inspection to be referred, if required, after the

order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is important.

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4.15 Swatch:

Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific

style/order. Usually small piece of fabric and each piece of accessories are attached in board

paper in a systematic manner. Swatch is very important for production line to make the

correct construction of a garment and QC department ensures it. Concerned merchandiser

should confirm/approve the swatch.

4.16 Trims:

Trims cover all the items used in the garment except the basic fabric. There are hundreds of

items used to manufacture the garments, proper selection of trims and its quality are very

important for styling, otherwise the garment may be rejected or returned by the customers.

Following is a part of list that covers some names of the trims:

• Zipper/Fastener

• Sewing Thread

• Main Label

• Flag Label

• Button

• El as t i c

• Eyelet

• Tag s

• Tag pin

• Plastic clip

• Sticker

• Hanger

• Poly bag

• Scotch tape

• Gum tape

• Photo Board

• Back Board

• Tissue

• Carton. Etc.

4.17 Communication in International Business:

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• Telephone Conversation.

• Fax/ E-Mail

• Formal Meeting

• Lunch & Dinner

4.18 The Information Normally Get About An Order:

1. Factory Loading

2. Factory Capacity

3. Factory History

4. Factory Setup Details

5. Market Reputation

6. Type of Buyers Dealing

4.19 How a merchandiser meet buyers requirements:

1. Merchandiser detail to buyer about factory profile.

2. Merchandiser Understand the Order sheet.

3. Arrange the all component for order execution.

4. Production Tracking.

5. Timely Shipment.

4.20 Method of purchasing raw materials:

Here fabric and some related accessories are the main raw materials. They are:

1. Lab-Dip

2. Approval the Lab-Dip

3. Collect price Quotation

4. Negotiation

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5. P.I. Received

6. Back to Back L/C transfer

7. Delivery Chelan received

4.21 Procedure of Imported goods:

• Procure of IRC

• Price Inquiry (Quotation)

• P.I. Received and Placing Order

• L/C Opening

• Received Shipping Advice

• Facing Customs

• Closing Transaction

4.22 How does the accepted order is passed on the floor:

1. Merchandiser searches the scope of knitting machine according to required Gauge.

2. Make production schedule

3. Trim & Accessories Card Prepare

4. Make well finishing according to buyer requirement in case of -

• Labeing

• Zippering

• Buttoning

• Ironing

• Packaging

• Cartooning

61

CHAPTER- FIVEFindings & SWOT Analysis

62

5.1 Findings:Findings:

Top Management set up the target of profit for depending of the volume of the

organization.

All the information, proposal, or any kind of letter signed by the Manager is

responsible for all of the activities.

There are some rules and regulation for filing all the documents. The document is not

distorted even if its expirees.

The identified reasons behind customer satisfaction:

o Overall Environment of the Organization.

o Quick services

o Well Behaved Employees.

o Knowledge about the service.

o Smartness and Professionalism.

The identified reasons responsible for customer dissatisfaction:

Lack of employees

Importance to Customer and Satisfaction at East West (BD) Inc.

In this section the findings of the East West (BD) Inc. customers’ importance put to various

service attributes and satisfaction at East West (BD) Inc. are shown briefly. The results are

presented according to the various service quality dimensions. Each dimension consists of its

own specific questions. The results of the survey are presented according to these questions

that were asked to the respondents with the help of a structured questionnaire. The results of

this study are as follows:

63

Reliability:

Aspects relating to reliability dimension of service quality were asked in 22 different

questions. Those questions are collected from the Servaqual Parasurance and Zeithnal whose

are express best questionnaire for Satisfaction Customer. Here the sample size is 35. After

conducting the survey I have got the findings by which the satisfaction level of customer of

East West (BD) Inc.. Can be measured. From those some important findings are analyzed

bellow:

Q-01: East West (BD) Inc. will have Modern looking equipment

The respondents placed a high importance in this characteristic of the service.

Here, it has been seen found that, 0% of total Sample Size is strongly Disagree, 9% is

Disagree, 11% is Neither Agree nor Disagree or Neutral, 29% is Agree and 51% is Strongly

Agree. So from it has been seen that most of the Customer satisfied about of equipment.

Q-03: Personnel at East West (BD) Inc. will be neat in appearance

East West (BD) Inc. will have Modern looking equipment

0%

9%

11%

29%

51%

SDDNASA

64

Here, it has been seen that, 0% of total Sample Size is strongly Disagree,14% is Disagree,

14% is Neither Agree nor Disagree or Neutral, 34% is Agree and 41% is Strongly Agree. So

it has been seen that most of the Customer satisfied about neat in appearance of East West

(BD) Inc. Personnel.

Q-05: When East West (BD) Inc. Promise to do something by a certain time they will do so

From the Survey it has been seen that, 0% of total Sample Size is strongly Disagree,14% is

Disagree, 29% is Neither Agree nor Disagree or Neutral, 31% is Agree and 26% is Strongly

Agree. So from the survey we are understood that Customers are satisfied about commitment

of the employee of East West (BD) Inc..

Personnel at East West (BD) Inc. Will be neat in Appearance

0% 14%

11%

34%

41%

SD

D

N

A

SA

When East West (BD) Inc. Promise to do something by a Certain time they will do so

0% 14%

29%

31%

26%SDDNASA

65

Q-06: When a Client has a problem, East West (BD) Inc. will show a sincere interest in solving it.

When a Client has a problem, Prime Bank will show a sincere interest in solving it

0%

0%

0%

43%

57%

SD

D

N

A

SA

This is very important question for Customer satisfaction. Here, We found that, 0% of total

Sample Size is strongly Disagree,0% is Disagree, 0% is Neither Agree nor Disagree or

Neutral, 43% is Agree and 57% is Strongly Agree. So from the survey we are understood that

every Customer of the East West (BD) Inc.is satisfied about their interest to solving the

problem.

Q-09: East West (BD) Inc. will insist on error-free records.

This is important question for Customer satisfaction. Here, it has been seen that, 0% of total


Neutral, 29% is Agree and 14% is Strongly Agree. So from the survey it is understood that

East West (BD) Inc. will insist on error-free records.

0% 14%

43%

29%

14%

SDDNASA

66

most of the Customers are not express their opinion about error-free record of East West

(BD) Inc. employees.

Q-11: Personnel in East West (BD) Inc. will give prompt service to Clients.

Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 9% is Disagree,


from the survey it has been seen that Customers are East West (BD) Inc. are happy about

their service.

Q-12: Personnel in East West (BD) Inc. will always be willing to help Clients.

This is very important question for Customer satisfaction level of East West (BD) Inc. Here,

it has been seen that, 6% of total Sample Size is strongly Disagree,11% is Disagree, 17% is

Neither Agree nor Disagree or Neutral, 23% is Agree and 43% is Strongly Agree. So

employees of the East West (BD) Inc.. Intensions are to always help the Clients

Personnel in East West (BD) Inc. Will give prompt service To Clients.

0%

9%

31%

34%

26%SDDNASA

Personnel in East West (BD) Inc. will always be willing to help Clients.

6%11%

17%

23%

43%

SDDNASA

67

.Q-13: Personnel in East West (BD) Inc.will never be too busy to respond to Clients' requests.

Very important question for Customer satisfaction. Here, it has been seen that, 9% of total


Neutral, 34% is Agree and 31% is Strongly Agree. So we are understood that most of the

proportions of the Customers are satisfied about the willingness of the employee of East West

(BD) Inc. for Solution Clients problem.

Q-19: East West (BD) Inc. will have operating hours convenient to all their clients.

Prime Banks will have operating hours convenient to all their clients.

0%

26%

29%

31%

14%

SD

D

N

A

SA



it has been seen that customers are happy for their operating hours of the Organization .

Personnel in East West (BD) Inc. will never be too busy to respond to Clients' requests.

9%

6%

20%

34%

31% SDDNASA

68

Q-20: East West (BD) Inc. will have a staff who gives Clients personal attention.

This is important question for Customer satisfaction. Here, it has been seen that, 0% of total


Neutral, 28% is Agree and 20% is Strongly Agree. From the survey it has been seen that

every staff of the East West (BD) Inc.has personal attention to their client.

Q-21: East West (BD) Inc.s will have the Clients' best interests at heart.

This is very important question for Customer satisfaction level of East West (BD) Inc. Here,

it is found that, 3% of total Sample Size is strongly Disagree,11% is Disagree, 14% is Neither

Agree nor Disagree or Neutral, 20% is Agree and 52% is Strongly Agree. So employees East

West (BD) Inc. will have the Clients' best interests at heart.

Q-22: The personnel of East West (BD) Inc. will understand the specific needs of their

Clients.

East West (BD) Inc. will have the Clients' best interests at heart.

3% 11%

14%

20%

52%

SDDNASA

69



it has been seen that customers are happy for their operating hours of the Organization . This

is very important answer for Customer satisfaction level of East West (BD) Inc., we are

found that employees of the East West (BD) Inc.try to indicate the specific need of the clients

and fulfill their needs.

Summary of the Findings

The general approach used to design this survey defines satisfaction as the difference

between importance customers’ puts on service attributes and what he/she actually receives

from EAST WEST (BD) INC.. In this survey, satisfaction is measured along thirty different

attributes of EAST WEST (BD) INC.services that were grouped into seven major

dimensions.

The personnel of East West (BD) Inc. will understand the Specific needs of their Clients.

0% 14%

20%

37%

29% SDDNASA

70

Customer Satisfaction Analysis

SD2%

D13%

N22%

A32%

SA31%

Other63%

SD

D

N

A

SA

The overall satisfaction results of the survey were average if the total scenario is considered

for an average Organization. But in terms of EAST WEST (BD) INC., which is a world-class

service provider worldwide, the results were highly dissatisfactory. Only 31% of the

respondents were highly satisfied and were loyal to the Organization. In total, 32% of the

respondents were found to be satisfied with the services of the Organization. The rest of the

respondents were found on the neutral and highly dissatisfied with the Organization. This

number represents the customers that perceived the Organization as inferior. The result

showed that a high degree of correlation exists between problem resolution and satisfaction.

Thus my hypothesis “The service that customers place most importance in are well satisfied

by East West (BD) Inc. Bangladesh” is not a valid statement but has been rejected by the

findings of the report.

Based on the above results, it can be said that EAST WEST (BD) INC. should reconsider its

service strategies in Bangladesh and design products and services that better satisfy customer

needs and requirements. Organization should be more tactful in dealing with the customers

and launch new products that fully meet customer expectations.

Based on the survey a finding a set recommendation is presented in the next section of the

research and a general list of suggestions to the Organization is discussed.

5.2 SWOT ANALYSIS:

71

The SWOT analysis comprises of the Organization’s internal:- strength and weakness and

external:- opportunities and threats. SWOT analysis gives an organization an insight of what

they can do in future and how they can compete with their existing competitors. This tool is

very important to identify the current position of the organization relative to others, who are

playing in the same field and also used in the strategic analysis of the organization. That is

why this section of the report discusses about SWOT analysis of East West (BD) Inc..

5.2.1 Strength: Sound profitability and growth with good internal capital generation. Experienced and efficient management term and human resource Recruitment of brilliant MBA, BIBM, BBA Quality products and services Better infrastructural facilities and friendly corporate culture Already established Company reputation and goodwill as a leading Organization Long historical business experience in the region. Strong Financial Position Motivated young people with strong commitment. Customer loyalty. Welfare for the society Strong image and good reputation. Always consumer focus. Clear vision. Highly motivated and pro-active team of employees. Full-fledged back –up data center support.

5.2.2 Weakness:

Marginal capital adequacy High concentration on fixed deposits and large-scale loans Lack of full scale automation Smaller number of branches in Bangladesh in comparison with the major competitors

likes the organization. Lack of proper motivation, training and job rotation Customer service booths are not available. Not flexible. Very compliant to rules and regulations. Some lack of experience and motivation at mid-level management. Employees not have enough basic knowledge about computer. They only know how

can use the Mysis (Software). Greater participation in management could be achieved. Indicate working force Lack of computer in the organization. There is no IT manager. So sometime simply problem kill the valuable time both the

client and employees.

72

5.2.3 Opportunity:

Scope of market penetration through diversified products Government’s policy of encouraging heavy inflow of foreign investment Regulatory environment favoring private sector development Value addition in products and services Increasing purchasing power of people Increasing trend in international business

5.2.4 Threat:

Market pressure for lowering of lending rate National and global political unrest Political instability. Intense competition Market segmentation Government rules and regulation

73

Chapter Six:Recommendation

6.1 Recommendation:

Provides retailers with a comprehensive offering for automatically managing dynamic

product catalogs, taxonomies and recommendations across multiple channels

Automatically understands and categorizes content from product catalogs

Connects shoppers with relevant products at the right moment

74

Discovers product trends and purchasing patterns

Dynamically delivers intelligent recommendations

Increases business profits through automated merchandising

Though the garments sector plays a very important role to earn foreign exchange to our

country, so buying house importance is very high. A large amount of foreign money comes

from the exporting of garments product.

East West (BD) Inc. is very established garments exporting buying house. Though a large

number of workers maintain their live on this sector. So, government should take special

nursing in garments sector. Some points are given to overcome the problems of inventory

management of this sector:

The authority should improve their knowledge about merchandising management.They should follow appropriate merchandising management technique.Most of the officer has to motive to teach every employee and researcher of their own inspiration

Every department will communicate their problem with other department of the company.

A specific department for training and research, which will provide adequate training and research facilities for personnel for development.

East West (BD) Inc. should follow a specific inventory costing method, in the context of rising trend in raw materials price.

Delivers intelligent recommendations

Recommends products to customers at each stage of the purchasing process through targeting

or automatic hyper linking

Easily scales to growing volumes of products and customers

Offers massively scalable technology to handle billions of product items, millions of

consumers and unlimited interactions

Automatically discovers related product groupings

Reads, understands and categorizes all the products by concepts based on intuitive and non-

intuitive relationships

Manages dynamic product categories

75

Automatically updates categories and recommendations when new products are added or

deleted from the catalog

Discovers trends in consumer behavior

Displays clusters of product and customer information to identify new trends in product

relationships and consumer behavior

Manages products and recommendations in any language

Understands content, products and interactions with global customers, regardless of the

language

6.2 CONCLUSION:

Today’s organization demands that the Merchandising management function deliver a

valuable side of earning foreign currency and take part a vital role to communicate

international business. The experienced merchandiser always demandable in every country. It

may an honorable professional for educated persons. For developing garment sector

76

merchandising management system will have to focuses on modern system. The future of

garment industries is brighter in the era of globalization. Ultra modern technology are being

used in the woven and knit garment industries in the outside world other than Bangladesh. To

survive in the free market of the world, we have to use world standard latest technology in

our ready made garment sector.

Management of merchandising is a big job and is a complex one. The result of the study

showing that there is lot of step for East West (BD) Inc. to improve their merchandising

management have certain implications for the business community as well as national

merchandising planners. The study “Merchandising Management of East West (BD) Inc.

revealed that Merchandiser is most valuable human resources for the progress of the

organization. For the development of these valuable resources there are many factors

involved. To increase the productivity of an organization effectively, efficient merchandiser

will have to develop. Preparation of future business managers should provide for the

development of managerial skills relating to merchandiser function. Colleges and universities

offering business administration curriculum would do well to evaluate their courses as they

relate to the findings of this study.

This direct study indicates the potential utility that could be derived from undertaking more

comprehensive investigations covering only merchandising management of East West (BD)

Inc.. There are consequent developments of newer knowledge can definitely contribute to

increase the efficiency of business management and this, in turn, will increase the satisfaction

of all interested buyer parties, which will be the ultimate goal of business.

In conclusion we can say that, the MERCHANDISING Department of East West (BD) Inc.

give me a pleasure to learn the Merchandising activities properly. From this department, I

have learned practical knowledge about merchandiser. A merchandiser has to perform the

activities from preliminary to end of the order.

77

BIBLIOGRAPHY

BIBLIOGRAPHY

1. How to be a Smarter Garment

78

Merchandiser

Conway Liu

2. Way of Good Merchandiser

Md. Zahidul Islam (Aoyn)

3. Research Report of Bgme Institute of “Fashions and Technology (Bift)

79

Appendix

Questionnaire

Dear Sir,I am a student of Stamford University Bangladesh and currently conducting an Internship report on Merchandising Strategy use at Garments in Bangladesh. To serve this purpose, as a customer or client of the Organization, I need some information from you. It would be highly

80

appreciable if you provide me information in this regard and I assure you that all the data will be used for academic purposes only and will be kept confidential.

Strongly Strongly Disagree Agree

1. East West (BD) Inc. will have Modern looking equipment. 1 2 3 4 5

2. The physical facilities at East West (BD) Inc. will be visually appealing 1 2 3 4 5

3. Personnel at East West (BD) Inc. 1 2 3 4 5 Will be neat in appearance

4. Materials associated with the service (Such as pamphlets or statements) Will be visually appealing in East West (BD) Inc. 1 2 3 4 5

5. When East West (BD) Inc. Promise to do something by a Certain time they will do so. 1 2 3 4 5

6. When a Client has a problem, East West (BD) Inc. will show a sincere interest in solving it. 1 2 3 4 57. East West (BD) Inc. will get Things right the first time.

1 2 3 4 58. East West (BD) Inc. will Provide their services at the time They promise to do so.

1 2 3 4 59. East West (BD) Inc. will Insist on error-free records. 1 2 3 4 5 10. Personnel in East West (BD) Inc. Will tell Clients exactly when Services will be performed. 1 2 3 4 5

11. Personnel in East West (BD) Inc. Will give prompt service to Clients. 1 2 3 4 5

12. Personnel in East West (BD) Inc. Will always be willing to help Clients. 1 2 3 4 5

13. Personnel in East West (BD) Inc.

81

Will never be too busy to respond To Clients' requests. 1 2 3 4 5

14. The behavior of personnel in East West (BD) Inc.will instill confidence In Clients. 1 2 3 4 5 15. Clients of East West (BD) Inc. Will feel safe in their dealings with the Organization 1 2 3 4 5

16. Personnel in East West (BD) Inc. Will be consistently courteous with Clients. 1 2 3 4 5

17. Personnel in East West (BD) Inc. Will have the knowledge to answer Clients' questions. 1 2 3 4 5

18. East West (BD) Inc. will give Client’s individual attention. 1 2 3 4 5

19. East West (BD) Inc. will have Operating hours convenient to all Their clients. 1 2 3 4 5

20. East West (BD) Inc. will have staff Who give Clients personal attention?

1 2 3 4 522. The personnel of East West (BD) Inc. Will understand the specific Needs of their Clients. 1 2 3 4 5

82

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Internship Report of Md. Rashadul Haque

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