Internship Report

On
Analysis of Merchandising Strategy in Garments Sectors of BangladeshA 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 Stamford University Bangladesh

Date of Submission: .

Stamford University Bangladesh

LETTER OF TRANSMITTAL

Mohammad Nazmul Huq Assistant Professor & Assistant Sup. Of Exam Department of Business Administration Stamford University Bangladesh

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 Stamford University Bangladesh

STUDENTS 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

SUPERVISORS DECLARATION

This is to certify that the Internship on East West (BD) IncAnalysis 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, 45th 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) Stamford University Bangladesh

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.

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. Thats 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. The East West (BD) Inc. is brained child of some successful business people. Its 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.

Table of Contents
Latter of Transmittal Students Declaration Supervisors Declaration Acknowledgement Executive Summary Table of Content Chapter 1: Introduction: 1.1 Introduction: 1.2 Origin of the Report 1.3 Background of the Study 1.4 Objectives of the Study 1.5 Scope of the Study 1.6 Methodology 1.6.1 Sources of Information 1.6.1.1 Primary Data Source 1.6.1.2 Secondary Data Source 1.7 Limitations Chapter -2: Profile of East West (BD) Inc.. 2.1 Historical Background of East West (BD) Inc. 2.2 Vision 2.3 Mission 2.4 Business Ideology: 2.5 Export Product Categories: 2.6 Company Nature: 2.7 Different Department: 2.8 Division of East West (BD) Inc. 2.9 Management System 2.10 Management Hierarchy of East West (BD) Inc. 2.11 Board of Director 2.12 Sister Concern of East West (BD) Inc. 2.13 Major Byres 2.14 Organization of East West (BD) Inc. Chapter 3: Merchandising Strategy 3.1 Merchandise Strategy: 3.2 3.3 3.4 3.5 3.6 3.7 Merchandising Defined Merchandising Policy: Shared Responsibility. Merchandising Standards Flexible Merchandising Differentiation Strategy: Cooperation With National Brand: PAGE 2 3 4 5 6-7 8-10 11-15 12 12 13 13 14 14 14 14 15 15 16-25 17 17 17 18 18 19 19 20 20 21 22 23 24 25 26-52 27 27 27 28 28 28 29

3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 3.39 3.40:

Buying & Merchandising Strategy Business Strategy: Primacy of The Business Front Line: Scheme For Large Sales: Source of Business Strength-Three Forces: Visual Merchandising Improved Presentation of Merchandise: Set-Up of Brand Corner: Support From The Scheme For Large Sales: Marketing Media Mix Strategy: Trinity Database Marketing:

29 30 30 31 32 33 34 34 34 34 35 36 36

Globalization Strategy: 37 Why Integrated Retail? 38 Merchandising Strategy, Merchandise Strategy Case Study Web- 39 Design for Marketing and Promotion Optimization Developing Your Merchandising Strategy: 39 Merchandising Strategy for Independent Retailers: 40 Product Locators: 43 Problem-Solving Techniques: 44 A Product Line-Up That Reflects The Opinions of Store Staff: East West (BD) Inc. Meeting: Merchandise Exhibition: Back-Up By The Scheme For Large Sales: Why Integrated Retail? Promotion Optimization: Definitions and Responsibilities Merchandising Standards Membership : Product Range Item of Product Production Capacity: 46 46 47 47 48 48 49 50 50 51 51 51

How A Merchandiser Track His Production In 52 The Factory: Chapter 4: A Specific (Merchandising Management) Department That 53-61 Assigned To Me For Study 4.1 Introduction: 54 4.2 Merchandiser Is A Data Bus Between Buyer & Seller 54 4.3 4.4 4.5 Merchandising Chronological Processes: Sequence of Sampling Second Pattern: 55 55 56

4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22

Counter Sample: Salesman Sample: Photo Sample: Approval Sample: Size Set: Mock Up: Pre-Production Sample Production Sample Shipping Sample Swatch: Trims: Communication In International Business: The Information Normally Get about an order: How A Merchandiser Meet Buyers Requirements: Method of Purchasing Raw Materials: Procedure of Imported Goods: How does the accepted order Is Passed on the Floor

56 57 57 57 58 58 58 58 58 58 58 59 59 60 60 50 61 62-72 61 71 71 72 73 73 74-82 75 77 78 80 81-82

Chapter 5: SWOT Analysis and Findings 5.1 Major Findings: 5.2 SWOT Analysis 5.2.1 Strength: 5.2.2 Weakness: 5.2.3 Opportunity: 5.2.4 Threat: Chapter 6: Recommendation & Conclusion 6.1 Recommendations: 6.2 Conclusion Bibliography Appendix Questionnaire

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CHAPTER ONE:
Origin of the report

11

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. Thats 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 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.

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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 To To To To define observe identify interchange the work and the in evaluate the of the effectiveness problems of the of reputed Merchandising Merchandising Merchandising regarding their company. Dept. Dept. dept. organization

To get the additional knowledge in different sectors about the organization. opinions officials

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

Bangladesh To know the condition of the exporting organizations (specially garments 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 13

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. 1.6.1.2 Secondary Data Source: Annual Report of the Organization. Various books, articles and manuals etc. Different web sites. 14

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 Sufficient records, facts and figures are not available. These constraints narrowed the There is no special training department for study. At lest six months required for completion of the final report but given only three months. information timely. scope of the real analysis.

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

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CHAPTER 02:
PROFILE OF East 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 personnels 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 customers 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 East 202, House-15, Road- 128 Gulshan 1, Dhaka-1212 West (BD) Office Inc.

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.

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

17

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
A. Woven i. ii. iii. iv. Shirt Trouser Overall Jacket

EXPORT

PRODUCT

CATEGORIES:

B. KNIT i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. vii. viii. ix. x. xi. Knitted T-Shirt Knitted Polo Shirt, Polo Pique Knitted Legging Knitted Sweat Shirt Nightwear Knitted Boys and Girls under Pant Knitted Shock & Shock in Knitted Silk Children Swim wear Knitted Shock & Shock in Knitted Silk Children Swim wear Women Jacket, womens Blazer including Blouses sky suit pullover Women Jacket, womens Blazer including Blouses sky suit pullover

Silk Unisex Blouses pullover

Silk Unisex Blouses pullover

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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:

a) knitting Section: Different Departments Knitting Inspection Batch section Dye house Dyeing lab. Quality control Finishing Merchandising Sample Cutting Section Sewing Section Finishing Section Electrical Mechanical

b) Dyeing section:

c) Garments section:

d) Maintenance section:

e) Store Section f) Administration Section g) Security Section h) Marketing Section i) Production Planning & Control

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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 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

20

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: 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

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2.10 CHAIRMAN
|

BOARD OF DIRECTORS.
|

MANAGING DIRECTOR.
|

EXECUTIVE DIRECTOR.
|

GENERAL MANAGER
|

ASSISTANT GENERAL MANAGER

|

MANAGER
|

ASSISTANT MANAGER
|

Sr. Merchandiser
|

Merchandiser | Jr. Merchandiser | Assistant Merchandiser | OFFICE ASSISTANT OFFICE ATTENDENT I Helper

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2.11

MR. DR. NURUZZAMAN Mrs. Rakiba Zaman Mrs. Raihana Zoha MR. N. ZOHA

Chairman Director Director 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 20354, Germany. Phone: 0049-040-808150 # Greystone Textilhandelsges GmbH Aspelohe 22848, Germany. Phone: 0049-040-53431042 27C, Norderstedt, STR-47, Hamburg,

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# 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 # Brands Corporate Wear GmbH & Co. Ohepark 21224 Germany. Phone : + 49(0) 4108-4177-11 # Hebestreit Garments International GmbH Karlsbader D-90759 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 Str.10, Langenzenn, 1, Rosengarten

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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. Numbers of Employees. Years Number of Employees
3000 2500 2000 1500 1000 500 0 Years Number of Employees

2005 1600

2006 1800

2007 2000

2008 2500

2009 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.

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CHAPTER THREE:
Merchandising Strategy

26

Merchandising Defined:
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.

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.

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 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.

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 sitesproduct 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

28

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.

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.

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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.

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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 Dynamicsopening stores in good locations and providing a housing to enable large sales Product Dynamicspurchasing merchandise for large sales Sales Dynamicsthe 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.

3.13 Visual Merchandising:

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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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Brand Corner

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. 33

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

35

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 Constantly updated repository of best business practices in retail from across the world 36

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 WebDesign 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 Legal costs may apply (partnership agreement). Supply Chain and Logistics 37

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:

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

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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. 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. 39

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 youll 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.

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

40

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-theart 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 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 locationsand repast if the site design changes. The following are some product locator strategies enabled by product classification data:

Categories 41

Visual catalog Parametric comparison

Categories:
Many e-commerce sites organize products by categorybeginning 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 doesnt know industry terminology. The supplier also provides search tools for frequent buyers that use fulltext 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 customers need) increases the chance of closing the sale and bolstering 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

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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 artall 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 profileand 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. 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

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Customer Preferences:
Keeping a record of preferences can enhance your relationship with customers in many ways. For example, maintaining the customers 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.

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

44

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.

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

45

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 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

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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

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

47

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.

3.35 Merchandising Standards:

Merchandising is an ongoing process of achieving the standards and goals set forth in this policy. The following standards and goals guide the product decisions of East West (BD) Inc. including customer special orders.

3.36 Membership :

BGMEA

48

BKMEA

Oeko-Tex

3.37 Product Range: Men Women Kids

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,

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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 Knitting Dyeing Finishing Garments Garments washing Printing Embroidery Capacity 37 Tons /Day 45 Tons/Day 40 Tons / Day 80,000 Pcs / Day 25000 Pcs /Day 25000 Pcs /Day (upto 8 colors ) 92 Heads (Total)

4.40 How a Merchandiser Track His Production In The Factory:

1. Follow-up yarn supply in factory 2. 3. 4. 5. Finishing follow-up 6. Ready for export Knitting Linking Accessories follow-up follow-up supply

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CHAPTER- FOUR
Merchandising in East West (BD) Inc.

51

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 &

52

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:

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 Buyers point of view). He negotiates a price for the sellers. He looks at the deal from sellers 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.

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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, Trims 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 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 Purpose: See the DESIGN work & test the FITTING Status: Nothing specific Material: Available Price: Not conformed 54 MIND > SKETCH > PAPER PATTERN > SAMPLE

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 designers artwork, has to follow another sample given by the merchandiser. Purpose: See SKILL Status: Nothing specific Material: Available Price: Not conformed Quantity: 1 (for customer) + 1 (for self keeping) Delivery: As per request the WORKMANSHIP &Test the FACTORY

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.

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Purpose: Sales Meeting by Retailers, Market Appraisal, Demand / Order Forecast Status: Final stage of the order confirmation Material: Actual Price: Confirmed Quantity: There combination Delivery: Very important to MEET the delivery date. is MINIMUM quantity per color

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:

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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.

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

57

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:

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:

58

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 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

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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

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CHAPTER- FIVE
Findings & SWOT Analysis

5.1 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.

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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:

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

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East West (BD) Inc. will have Modern looking equipment 0% 9% 11% SD D N A SA

51% 29%

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

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

0%

14% SD D N A SA 34%

41%

11%

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 63

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

0% 26%

14% SD D N A SA

29% 31%

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.. 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% SD 43% 57% 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. 64

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

14%

0%

14% SD D N A SA

29% 43%

This is important question for Customer satisfaction. Here, it has been seen that, 0% of total Sample Size is strongly Disagree,14% is Disagree, 43% is Neither Agree nor Disagree or Neutral, 29% is Agree and 14% is Strongly Agree. So from the survey it is understood that 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. Personnel in East West (BD) Inc. Will give prompt service To Clients. 0% 26% 9% SD D N A SA

31%

34% Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 9% is Disagree, 31% is Neither Agree nor Disagree or Neutral, 34% is Agree and 26% is Strongly Agree. So from the survey it has been seen that Customers are East West (BD) Inc. are happy about their service.

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

6%

11% SD D N A SA

43% 17%

23% 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 . Q-13: Personnel in East West (BD) Inc.will never be too busy to respond to Clients' requests. Personnel in East West (BD) Inc. will never be too busy to respond to Clients' requests. 9% 31% 6% 20% SD D N A SA

34% Very important question for Customer satisfaction. Here, it has been seen that, 9% of total Sample Size is strongly Disagree,6% is Disagree, 20% is Neither Agree nor Disagree or 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.

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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% SD D N 31% 29% A SA

14%

Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 26% is Disagree, 29% is Neither Agree nor Disagree or Neutral, 29% is Agree and 31% is Strongly Agree. So it has been seen that customers are happy for their operating hours of the Organization . 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 Sample Size is strongly Disagree,20% is Disagree, 26% is Neither Agree nor Disagree or 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.

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East West (BD) Inc. will have the Clients' best interests at heart. 3%

11% 14% SD D N A SA

52%

20%

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. The personnel of East West (BD) Inc. will understand the Specific needs of their Clients. 0% 29% 20%

14% SD D N A SA

37% Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 14% is Disagree, 20% is Neither Agree nor Disagree or Neutral, 37% is Agree and 29% is Strongly Agree. So 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.

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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.

Customer Satisfaction Analysis

N 22% D 13% SD 2%

Other 63%

A 32% SA 31%

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

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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:

The SWOT analysis comprises of the Organizations 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

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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.

5.2.3 Opportunity:
Scope of market penetration through diversified products Governments 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

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Chapter Six:
Recommendation

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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 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

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Automatically discovers related product groupings Reads, understands and categorizes all the products by concepts based on intuitive and nonintuitive relationships Manages dynamic product categories 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

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6.2 CONCLUSION:
Todays 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 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.

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BIBLIOGRAPHY

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BIBLIOGRAPHY 1. How to be a Smarter Garment Merchandiser Conway Liu 2. Way of Good Merchandiser Md. Zahidul Islam (Aoyn) 3. Research Report of Bgme Institute of Fashions and Technology (Bift)

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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 78

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 Disagree 1. East West (BD) Inc. will have Modern looking equipment. 2. The physical facilities at East West (BD) Inc. will be visually appealing 3. Personnel at East West (BD) Inc. 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. 5. When East West (BD) Inc. Promise to do something by a Certain time they will do so. 6. When a Client has a problem, East West (BD) Inc. will show a sincere interest in solving it. 7. East West (BD) Inc. will get Things right the first time. 8. East West (BD) Inc. will Provide their services at the time They promise to do so. 1 9. East West (BD) Inc. will Insist on error-free records. 10. Personnel in East West (BD) Inc. Will tell Clients exactly when Services will be performed. 11. Personnel in East West (BD) Inc. Will give prompt service to Clients. 12. Personnel in East West (BD) Inc. Will always be willing to help Clients. 13. Personnel in East West (BD) Inc. 79 1 2 2 3 3 4 4 5 5 1 1 1 2 2 2 3 3 3 4 4 4 Strongly Agree 5 5 5

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2 2

3 3

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Will never be too busy to respond To Clients' requests. 14. The behavior of personnel in East West (BD) Inc.will instill confidence In Clients. 15. Clients of East West (BD) Inc. Will feel safe in their dealings with the Organization 16. Personnel in East West (BD) Inc. Will be consistently courteous with Clients. 17. Personnel in East West (BD) Inc. Will have the knowledge to answer Clients' questions. 18. East West (BD) Inc. will give Clients individual attention. 19. East West (BD) Inc. will have Operating hours convenient to all Their clients. 20. East West (BD) Inc. will have staff Who give Clients personal attention?

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5 5

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1 22. The personnel of East West (BD) Inc. Will understand the specific Needs of their Clients. 1

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