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ARVIND LIFESTYLE BRANDS LTD.

- FLYING MACHINE

CHAPTER I: 1.1COMPANY PROFILE: ARVIND

ARVIND LIMITED

Arvind Ltd is the flagship company of the Lalbhai Group that has been around since 1930.
Arvind started as a superfine fabric manufacturer in the early 30s. Since then, the company
has been constantly reinventing itself by venturing into new categories in textiles like denim,
suiting,shirting, etc. Its headquarters is in Naroda, Ahmedabad, Gujarat, India. It has units at
Santej (Near Kalol). Its segments are Textiles; Brands and Retail; Real Estate, and Others.
The Textiles segment includes fabric, yarn and garments. The Brands and Retail segment
includes retailing of branded garments, apparels and fabrics. The Real Estate segment
includes real estate development. The Others segment includes electronics, technical textile,
construction, e-commerce and project activity. It also manufactures cotton shirting, denim,
knits and bottom weights (Khakis) fabrics, and jeans and shirts garments. The Company,
through its subsidiary, Arvind Lifestyle Brands Limited, markets branded apparel and
licenses international brands in India. Its brands portfolio includes international brands, such
as Arrow, US Polo, Izod, Elle and Cherokee. It also operates Unlimited apparel value retail
stores. Sanjaybhai Lalbhai is the Chairman & Managing Director of Arvind & Lalbhai
Group. It also has presence in telecom business directly and through joint venture
companies.

Figure 1 ARVIND HEADOFFICE AT BANGALORE

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ARVIND'S PROGRESS OVER THE YEARS:

1991 – Arvind reached 100 million meters of denim per year, becoming the fourth largest
producer of denim in the world

1992 – The company increased the production of denim cloth by 23,000 tonnes per day by
modernizing the plant at Khatraj of Ankur Textiles.

1994 – The company operations were divided into Textile Division, Telecom division and
Garments division.

1995- Garment division launched ready to stitch jeans pack under the brand Ruf & Tuf.

1997 – The marketing and distribution network of `Newport` brand was strengthened and the
relaunched Flying Machine and Ruggers brand were strengthened.

a. Arvind Mills set up an anti-piracy cell for the first time in India to curb large
scale counterfeiting of their brands Ruf & Tuf and Newport jeans.
b. Arvind Mills adopts the franchisee system for the manufacture and distribution
of Ruf and Tuf jeans.
c. Arvind Fashions doubles its capacity in the manufacturing facility in
Bangalore to produce Lee jeans
1998 – Arvind Mills emerges as the world's third largest manufacturer of denim.

2003 – For the fourth quarter, Arvind Mills witnesses 280% growth in the net profit

2005 – For the fourth quarter in a row, Arvind Mills posted a profit growth in excess of 80
per cent. Arvind Mills buys entire stake in Arvind Brands from ICICI Ventures.

2007 – Arvind expands its presence in the brands and retail segment by establishing
MegaMart One of India's largest value retail chains.

2010 – Arvind launches The Arvind Store, a concept putting the company's best fabrics,
brands and bespoke styling and tailoring solutions under one roof. Arvind launches its first
major Real Estate projects. Arvind becomes one of India's largest producers of fire
protection fabrics.

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2012 – Joint venture with PD Group, Germany, for manufacture of glass fabrics.

2014 – Joint venture with PVH Corp for Calvin Klein Businesses in India. Launches Formal
4
suits with Goodhill Corporation Limited of Japan. Joint venture with OG Corp, Japan, for
manufacture and sale of non-woven fabrics, project being spearheaded by Dr. Kunal Shah.
Forayed into the E-commerce segment with custom clothing brand 'Creyate'.

2016 – The company completely entered online retailing and launched the omnichannel retail
platform NNNOW in 2016.

2018- Witnessed the launch of futuristic denim technology brands like E-Indigo, Boomerang
360, Boomerang Bounce, Chrome Cord and Hybrid Chinos at the Arvind Festive 2018.

1.2CSR ACTIVITY DONE BY ARVIND LTD.:

The Founders were instrumental in setting up pioneering institutions for sustaining and
improving Educational, Social, Cultural and Religious conditions in Ahmedabad – the
primary center of the Company’s businesses. Ahmedabad Education Society, Indian Institute
of Management – Ahmedabad, Center for Environmental Planning and Technology, H L
College of Commerce and Lalbhai Dalpatbhai Institute of Indology are examples of some of
the institutions they set up. Thus, Arvind has been supporting initiatives of educational, social
and cultural renewal much before the term ‘CSR’ – Corporate Social Responsibility – was
coined. Arvind’s CSR activities so far have been carried out through SHARDA Trust and
NLRDF working urban and rural settings respectively. Arvind Foundation – a recently set up
section 8 company will now lead company’s CSR initiatives.

Their energies are focused on four distinct development segments:

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1.3ARVIND BRAND DIVISION:

Arvind Lifestyle Brands Ltd has been a pioneer in bringing international brands to India.The
company has licensing relationships with many international Brands including U.S. POLO
ASSN., Gant, Arrow, Izod, Nautica, Elle, Ed Hardy, Hanes, Cherokee, Sephora, Aeropostale,
Nautica, GAP, The Children’s Place.

Arvind also has a portfolio of 12 of its own brands across Value and premium segments.

The company has one of the strongest distribution networks in the Indian apparel sector with
over 1.3 million sq.ft. of retail space available pan-India, across 1100 retail stores spread over
192 towns. Additionally ALBL has international presence in the Middle East and South
Africa.

HERITAGE BRAND DIVISION (HBD)


 Arrow
 Hanes
 IZOD

LIFESTYLE BRAND DIVISION(LBD)


 Flying Machine
 US Polo
 Ed Hardy
 TCP
 TrueBlue

BRIDGE TO LUXURY: (BTL)

 Aeropostale
 GANT
 Nautica

SPECIALITY RETAIL DIVISION:


 Sephora

UNLIMITED

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HIERARCHY OF BRANDS IN ARVIND

ARVIND M.D.
(MR.J.SURESH)

HERITAGE BRANDS
UNLIMITED BUSINESS LIFESTYLE BRAND BRIDGE TO LUXURY
DIVISION SEPHORA
DIVISION DIVISION BRANDS DIVISION
(MR.SUMIT (MR.PARAG)
(MR. SHEKHAR) (MR.ALOK DUBEY) (MR.PARAG)
DHINGRA)

USPA ARROW NAUTICA

FLYING MACHINE IZOD GANTT

ED HARDY HANES GAP

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1.4ARVIND LIFESTYLE BRANDS LIMITED

Arvind Lifestyle Brand is a subsidiary of Arvind Ltd. which is one of the most respected
groups in the Textile Business of India. It has been a pioneer in bringing many International
Brands to India with Arrow being the first brand in 1993. Later many brands like GANT,
IZOD, Hanes, Cherokee, USPA, Elle, Massimo, Calvin Klein, and GAP came under its hood.
Arvind also has a joint venture with Tommy Hilfiger for its business in India.

It owns and operates approximately 800 stores and 14.2mn retail space. The company is
based in Bengaluru, India. Arvind Lifestyle Brands Limited is a subsidiary of Arvind Brands
and Retail Limited.

VISION, MISSION AND CORE VALUES

VISION
Their Vision is ‘Enriching Lifestyles’.
To Enable People to experience a Better Quality of Life by providing Enriching and Inspiring
Lifestyle Solutions.

MISSION
The Company is driven by Collective Excitement and Resolve to be the Market Leader in
Chosen Market Segments by 2020.

VALUES
 Service: Putting the Needs of the Customers & Consumers First
 Speed: Act quickly and decisively to get things done efficiently
 Innovation: Driven by Out of the Box Thinking and New Ways of Working
 Living the Brand: Being a ‘proud ambassador’ by personifying the brand values and
principles
 Care: Respect and Dignity for the Individual and Well Being of Employees above
anything else

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1.5ARVIND LIFESTYLE BRAND DIVISION HIERARCHY

PLANNER

BUSINESS MANAGER
PLANNING HEAD PLANNER
(FLYING MACHINE)
BRAND HEAD FOR
USPA, FM AND ED
HARDY
BUSINESS
MANAGER(USPA AND PLANNER
ED HARDY)
BRAND HEAD FOR USPA
KIDS,FM KIDS,TRUE
BLUE AND TCP

PRODUCT HEAD

CEO OF LBD
(MR.ALOK DUBEY)

DESIGN HEAD

MARKETING HEAD

OPERATIONS HEAD

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

1.6FLYING MACHINE

Owned by Arvind Lifestyle Brands Ltd., Flying Machine is India’s first home bred denim
brand. Launched in 1980, the brand was the first amongst the first in its category to introduce
authentic details, original graphics, first in class urban innovation and true Italian styling to
achieve cult status over the next ten years.

Today, Flying Machine is sold in over 175 exclusive brand outlets, 242 Large Format Stores
like Shopper’s Stop and Lifestyle, and over 500 Multi Brand Outlets nationwide.

Born in the year 1980, flying machine was considered a cult for the next 10 years. Launched
in 1980, at a time when only smuggled jeans were available

Cornered substantial market with innovations of Indian fit, a ‘guaranteed brand’ available at a
decent price. By 1994 it had become a leader in branded jeans in India and is still seen as
trendy and premium.

Flying machine has a tie up with the famous Italian designer Chicco who has designed for
names like Brad Pitt, Beyonce etc. Chicoo has given brand an Indo-Italian touch which has
added to the brands style quotient and popularity. The tagline of the brand “I am sexy when I
am me” has a Very good recall value as youngsters can easily relate to it.

Flying Machine also recognized the need to keep pace with the rapid changes in India with
the new store design, an international collaboration of Italian style, Indian craftsmanship had
come together to launch a new urban youth fashion store 'Flying Machine' in India, designed

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by JHP – London which aimed to showcase 'eclectic fusions of Indo-Italian style, translated
into a contemporary store environment that will be become the instant signature of the stores'.

Flying machine range of apparel reflects the future of Indian youth fashion that believes in
bringing real time international fashion to Indian audience. The brand with its contemporary
styling focuses on trends and fads of season. These styles are created for the Indian youth
which is not only well-informed, but also well-travelled. With the introduction of
Nanotechnology, flying machine has come up with technological advances like temperature
regulation as the wearer goes through hot and 10
cold zones and stain free jeans.

Flying Machine is casual clothing & accessory brand whose target customers have always
been young fashion-conscious people and that might be the reason why face of brand is
Sushant Singh Rajput.

Flying machine product assortment includes apparels, footwear, accessories. Flying machine
collection every season is different, better and funkier than the last one. The clothing line of
Flying Machine includes denims, t-shirts, shorts, shirts etc. for men and women. Flying
machine has really trendy footwear in bright as well as monochromatic colors. The shoes are
available in different styles like high ankle, distressed etc. which complements the uber cool
clothing line of the brand. Flying Machine also has a range of accessories which includes
sunglasses, caps etc. under its name. The association of the designer Chicoo has given a
vintage touch to the brand and made it a unique combination of trendy present and classy
pass.

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1.7 Competitors of Flying Machine:

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1.8FACTS AND FIGURES OF FLYING MACHINE:


• Flying machine is the 2nd most profitable brand in the company.
• It is also the fourth largest brand.
• Revenues made by the brands:
 USPA: 1000cr
 ARROW: 800cr
 UNLIMITED: 700cr
 FLYING MACHINE: 400cr
• The major revenue comes from Reliance with 385cr targeted and 375cr achieved by
the brand.
• Maximum sales (90%) happen from the men’s category of products.
• Approximately 3.4% of sales happen from women’s category.
• This year the target is 500cr.
• From the key accounts the revenue achieved was 280cr.

1.9 SEGMENTATION, TARGET AND POSITIONING OF FLYING MACHINE:


Segmentation: The brand caters to the youth segment who are fashion conscious.
Target: Urban Youth from middle class of age 15-25 years.
Positioning: It has positioned itself as "lifestyle" brand and as a brand that connects
to the youngsters.

USP OF FLYING MACHINE:


Variety in apparel with an Italian touch
Good quality apparels with latest fashion at reasonable prices

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SWOT ANALYSIS:

STRENGTH
1. Brand has tied up with Italian designers
to get an Italian touch to Indian clothing.
2. Owns over 200+ stores in India
WEAKNESS
3. Belongs to the prestigious Arvind group 1. Still hasn’t been able to reach out to the
which extends their brand image growing urban centres in India completely
4. Good advertising and brand building 2. Global presence is very limited
through ad campaigns
5. Good perception of the brand as a high
quality yet affordable product

FLYING
MACHINE

THREATS
OPPORTUNITY 1.Existing competition from international
1.The market for the youth segment is and Indian brands
huge 2.Dependence on the Indian market,
where there is a possibility of high brand
2.Foreign market for expansion switching and low loyalty due to many
options

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

Various departments of Flying Machine Brand:

FLYING MACHINE

VISUAL
OPERATIONS MARKETING
PLANNING TEAM PRODUCT TEAM MERCHANDISING DESIGN TEAM
TEAM TEAM
TEAM

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Chapter II:

DEPARTMENT STUDIES

OF FLYING MACHINE

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2.1RETAIL PLANNING:

Merchandise planning and allocation is the retail supply chain discipline to initially predict,
and subsequently react to, changing consumer tastes and buying patterns. Merchandise
planners and allocation specialists are responsible for both inventory budgets and determining
the movement of merchandise to the stores. When done correctly, inventory moves, sales
grow and profit margins reward. Get it wrong and the retailer sees markdowns, out of stocks,
poor performance and an inventory bubble that needs to be digested through the selling cycle,
consuming space, inventory dollars and profits.
There are two types of Planning functions:
 Inventory Planning
 Financial Planning

Inventory Planning

Achieving profit and merchandising objectives through optimal inventory and service levels:
Today’s retail companies are increasingly pressured to more profitably manage their largest
financial asset – inventory. This goal requires retailers to minimize costs, decrease lost sales
and improve customer service while reducing inventory investment and keeping shelves
stocked with the right products.

Successfully addressing these challenges while spurring buyer productivity requires the
ability to accurately predict customer demand and make merchandising decisions that result
in high service levels at the lowest inventory investment. In short, retailers must be able to
determine accurate item-level seasonal forecasts and then use these forecasts to set profitable
inventory policies that drive optimized ordering – maximizing customer service while
minimizing all inventory costs.

Under Inventory planning the divisions are: -


 Stock Allocation- Stock allocation is the decisions made about how quantities held at
a central point will be distributed amongst several outlets in a retail chain.
 Rate of Sale (ROS)- Rate of sale of merchandise is the number of SKU’s sold over a
period of time. Formula: Sales/Number of Trading Days.

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 Sell Through- Sell-through refers to the percentage of a product that is sold by a


retailer after being shipped by its supplier, typically expressed as a percentage.
Formula: Quantity Sold/Quantity Bought
 Performance Index: P.I. refers to the performance of each style code during the
season. Formula: Sell through/Trading Days
 Cover Days: Cover days is the number of days the merchandise will be available for
the season. Cover days for Flying machine is 12 weeks for the season. Formula: Stock
On Hand/Rate of Sales.
 Automatic Replenishment System (ARS): Automatically replenishing a product
once it is sold off or acquiring a product on regular basis to support the anticipated
need.

Financial Planning:

Financial planning is the task of determining how a business will afford to achieve its
strategic goals and objectives. Usually, a company creates a Financial Plan immediately after
the vision and objectives have been set. The Financial Plan describes each of the activities,
resources, equipment and materials that are needed to achieve these objectives, as well as the
timeframes involved.

The Financial Planning activity involves the following tasks:

 Assess the business environment


 Confirm the business vision and objectives
 Identify the types of resources needed to achieve these objectives
 Quantify the amount of resource (labor, equipment, materials)
 Calculate the total cost of each type of resource
 Summarize the costs to create a budget
 Identify any risks and issues with the budget set.

Under Financial planning the divisions are: -


 Gross Margin: Net sales- Cost of good sold
 Net Profit: Profit – tax – other expenses.

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PLANNING TEAM:

In Flying Machine, Planning team is the link between Sales team and Marketing team on the
front end and Supply chain at the back end. Planners carry out the most important
merchandising activity that is the four W’s: what to sell, when to sell, where to sell,
and who to sell to. These four W’s are critical for sales, marketing, and supply chain team
because a brand must know them in order to balance a positive consumer experience,
available inventory, and the ability to meet consumer’s future needs in timely manner.
The Planners are considered as "Financial drivers" for Flying Machine Brand.

The planning team is responsible for the movement of stock for every new season in different
channels of distribution. The brand is widespread across different cities including 2-tier
cities. Their channels of operations are:

Channels

Exclusive Brand Multi-Brand


Outlets Outlets Key Accounts
(EBO) (MBO)

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Flying Machine Channel Layout:

Exclusive Brand Outlet

1. EBO: This is company owned and company operated. (COCO) The brand can
operate the store and take measures when they feel it is best suited.
2. EO: This is Exclusive Brand Outright channel. Here the stock, store and staff
ownership lies with the franchisee. By the end of the season, only 5%-10% of the
stock can be returned back to the company.
3. ER: Exclusive sale or return. Here only the ownership of the store and staff lies in the
hands of the franchisee. The stock ownership lies with the company. Therefore, the
whole dead stock can be returned.

Multi Brand Outlet

1. MBO: These channels help the customers reach the brand where the company fails to
reach out to the customers in smaller towns and cities. It is an outright channel
handled by the distributor where 5%-10% of the stock can be returned to the
company. Example: Mom&Pop Store, Shop In Shops, etc.
2. MR: These are multi brand channels which are sale or return where the whole dead
stock can be brought back by the company. Example: Iconic, Kapsons,etc.

Key Accounts: These are departmental stores where the brand is present along with the other
competitive brands. The advantage of being present in these stores is to obtain the market
share for the brand as well as the brand can do "competition benchmarking" with the other
brands. This means Flying Machine's biggest competitor is Levis. It is competition
benchmarking as Levis sells its merchandise at a higher price and is present in the market
way before than Flying Machine. But Flying Machine sells the same kind of denim with more
or less same kind of durability at a lesser price than Levis. This gives more options to the
customers while shopping from these stores as they could buy the same denim from Flying
Machine with more or less same fit and style at a lesser price than Levis. Flying Machine
gives around 32% margin to these department stores for selling their merchandise. Example:
Reliance, Lifestyle, Pantaloons, Central, Shoppers Stop and Globus.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

Organisational Structure of Planning team of Flying Machine:

The planning team of Flying Machine has 7 members playing a key functional role for the
brand.

HIERARCHY AND FUNCTIONAL ROLE OF THE TEAM AND ITS MEMBERS

Business Manager
of Flying Machine
(Mr.Himanshu)

Planning Head of
Flying Machine
(Mr.Anukool)

Planner
Planner Planner Planner
(Mr.Harsh)
(Miss Greeshma) (Mr. Sunil TK) (Mr.Tharapati)

Planner for the Key


Planner for the Planner for the Planner
aaccounts channel
Multi brand outlets exclusive brand
and accessories for (Mr. Lingaraju)
and Brand Factory outlets of the store
the brand

Responsible for the


supply chain and
stock movement

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STOCK MOVEMENT PROCESS:

SEASON START

BUYING - ROLE OF A PLANNER


ROADSHOW IN STOCK ALLOCATION
AND MOVEMENT
INDENT
PREPARATION

BUY PLANS

OBD

COMMERCIAL
APPROVALS

PICK AND PACK

BILLING

TRANSPORT FROM
WAREHOUSE

A planner is thus responsible from allocating the stock in each store and ensuring the stock is
dispatched in an effective manner. A planner does "option buying" for each season depending
on the store grading done. Store Grading is done in terms of the highest sales achieved in that
store as well as the space allotted in that store. If a planner observes in the last season that the
a particular store did not achieve its target and a lot of stock was remaining by the end of the
season, then that store gets a lower grading. Therefore, less number of options are sent to that
store. Store Grading is an essential task done by the Planners.

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IMPORTANT ROLE OF A PLANNER:

PLANNING TEAM

PRE-SEASON IN-SEASON POST SEASON


PLANNING PLANNING PLANNING

Assessment and Assessment and Rectification and


planning done planning done cross evaluating
before the season. during the season. the plans post the
Eg: SS’19 Eg: SS’18 season.

IMPORTANT TERMS IN PLANNING:

These are used in Planning for:

 Future Forecasting of the next season


 Identification of Slow Moving Stock and Fast Moving Stock
 For In-Season Discounting

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IMPORTANT ASPECTS OF PLANNING TEAM:

FAST MOVING STOCK: Style code has higher sell through rate in specified
trading days.
SLOW MOVING STOCK: Style code has lower sell through rate and does not
move in the specified trading days. Planners need to identify the SMS by checking
with the sell through rate and Trading Days. Then they check with the VM
communication done by the team, promotional offers by marketing team and also the
MRP at which it is sold in the market. With the help of the operations team, they
incentivise the store and try to put some minimum in-season discounting to those
stock. If it still does not sell, it is pulled out from the store and stocked for EOSS.
STORE GRADING: To ensure right quantity of stock is sent at the right placBe.
EOSS: End of season sale happens to make way for the new season and to provide
freshness to the nest season.
Partial Season Launch are done and stock is allocated by the planners because
partial season launch adds freshness to the old season and controls the overall
discounting happening during EOSS.
Planners have to allot stock in such a way so that ideally the stock has a cover of
minimum 84days at the store.

BUY PLAN:

In retail terms, it is also known as OTB. Certain numbers have to be achieved by each store
as a given target. A planner has to decide how much quantity and how many options to keep
in a store. They also decide what percentage margin has to be maintained and how much to
sell at in the market. It also needs to record how much stock to dispatch, how much stock has
to be maintained and the tracking of stock.

Buying Plans include:

Forward Planning
Post season Review
In-season Planning

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2.2PRODUCT TEAM:

This team synchronises with the Planning team and the Design team for the Road show to
plan for the two major seasons of the brand- Spring Summer and Autumn Winter. The Road
show happens in the month of July for Spring Summer and in February for Autumn Winter.
During the Road Show, many buyers come in for the buying activity:

 Central
 Lifestyle
Key Accounts - Departmental Stores
 Shoppers stop
 Globus
 Pantaloons
 Exclusive Brand Outlets
 Online partners - Myntra, Jabong, Amazon
 Vendors
 Multi Brand Outlets

In the Road show, pre-season planning and buying is done for the brand. The planning team
decides the number of options to be selected in each category. These options are decided
based on reviewing the previous seasons and doing a sell through analysis of each style code
in every category. They approximately have around 80-90 options for the road show.

There is CTS Meeting between product development, planning and the design team where
they review the previous season and analyse which styles had the highest sell through. The
designer presents the range of new styles as per the season along with the story and the fabric.
This is done with the help of product development team. Once the range is finalised, the
colour and the types of fabric to be used is conveyed to the sourcing department. The
sourcing department then coordinates with its team and sources for new fabrics and trims and
sends it to the product development team for approval. All the samples have to be approved
by the product development team. They review and assess the technicality of each product.

Just after the Road show when they receive the order about the quantity of the merchandise
from the different buyers, the sourcing team conducts a mill week where different fabric mills
participate.

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During that week, they display the fabric (fabric show) and negotiation and finalisation of
different fabrics by the design and product development team takes place. They place their
orders with the different mills quoted at the best price according to them. The sourcing team
selects the 'hangers' and puts it on the list with the fabric price and sends it to the product
development team.

The product development team then decides which hangers and which trims to approve. It
also seeks the help from the design team to know which fabric and colour best suits the
designated category. The main focus of the product development team is to achieve the
company's multiple of every garment. They can make a few exceptions for certain
merchandise as recommended by the designer whose sell through will be high and will be a
good demand in the market. The planning team sets forth the price point for every
merchandise and then the product development team checks with the multiples that has to be
maintained by the company. Then the team decides which fabric and trims to be further
finalised depending on the price point set and the multiple to be maintained as per the
company.

160 product sampling options are prepared by the design team. Out of 160, approximately
120 options are selected and decided by the product development team which is presented for
the road show range. The planning team selects around 80 options for their exclusive brand
outlets. They also decide the number of options to be kept in each category.

After the road show, the total number of quantity ordered is prepared by the planning team
and passed on to the product team. The product team sends two sets of samples to the
planning team who passes it on to the regional buyers who were unable to come for the road
show. Another one set of sample is passed to the sourcing team for them to carry forward the
mass production. The core and the essential category goes to all the stores and the allocation
of it is decided by the planning team.

All the sample approvals, size set approvals, fabric approvals and tag approvals have to be
first done by the product development team.

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2.3CORPORATE STRATEGY TEAM:

There is a central strategy team for Arvind which is present for all the brands of Arvind. This
team acts like a support functions of the other teams. These teams are allotted with different
projects alongside with the other departments. After working for a few years, the company
absorbs its members into their main functional departments like Planning, Sourcing, Product
development etc.

They deal with softwares like Automatic Replenishment system (ARS) where the system
automatically replenishes the merchandise. Its present for Reliance and Pantaloons. Example
if 1 style has 6 options and two options gets sold the system is updated about it and the
replenishment takes place. They also handled MANTHAN which is an analytical tool which
derives the sales data from the POS software. This team takes care of these operations as
well. They handled SAPFMS transition software as one of their projects. They also had
projects with the sourcing team to minimise the cost to improve efficiency.

SLICER KANVAS SOFTWARE:


Kanvas is an image analytical tool which helps to identify which stores are top sellers and
bottom sellers for a particular season. This software is used by the corporate strategy team to
update data about each style code for the use of the planners, product team and the designers.
This software enables the planner , designer and the product team to closely understand the
sell through and performance of each style code in every store. This software is only for the
EBO'S of every brand. At the end of every week, sales data is received from each store and
updated here. As sell through is very important for every retailer, it keeps a track of how their
stores are performing and which are the slow movers and fast movers in that season. Kanvas
helps in:
 Generating Catalogs
 Mapping of sell through
 Mapping of GRN
 Mapping of Sold quantity
 Mapping of Stock on Hand
 Manage digital assets (images) and their attribute data (text and numbers) in an
integrated and cohesive manner. One can tag your images with icons, colour tags,
and user defined text tags for easy storage and retrieval.

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 Perform Analysis (Pre-Season, In-season or Post-Season)


 Create Assortments
 Creates report, outputs and other forms of instructions
Overview of SLICeR Kanvas
Slicer Kanvas follows a 5-stage process for handling images and data for analysis and
creation of desired outputs.

1. Upload images and data pertaining to products


2. Enrich the images with tags (Icons, Text or Colour tags)
3. Analyse by filtering, grouping and slicing and dicing of the image sets along
with Deep data analysis, and create a reduced set to process further
4. Generate a template based output from the shortlisted images
5. Export the output in one of the popular formats like JPG, PPT & PDF and email them

1 My Selection 4
Generate Layout

2
5

Logging In

Login Name:

The login name is usually your official email ID.


Landing Screen upon login – Dashboard

This Dashboard shows you shortcuts for 5 screens in one go.


1. Recent Images (Preview of the ‘My Selection’ manipulation page for Images /
Data)
2. Workspaces (previously saved selections
3. Quick filtering panel using attributes to shorten the selection

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4. Upload Status
5. Export Status

Slide out Menu

The main operations of Using the My Selection screen, Uploading Images and Data;
Enriching the same with tags , Managing Workspaces and Creating Outputs can be initiated
by clicking on the menu options from a slide out menu bar which shows up when you click on
the home screen.

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My Selection

This is the main screen in Kanvas where the image set can be filtered by applying filters on the
various attributes, text tags, hierarchy values etc. (this is explained in much greater detail in the
‘Key User Operations’ section).

Key User Operations in Kanvas

1. Upload Operations

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2. Upload Images with attributes

My Selection - Filtering, Sorting and Grouping Operations

Use various icons as marked below to run the common filtering, sorting, grouping and reset
operations:

Filtering on Attributes/ Tags –

 Click on any of the ‘+’ signs on the various attributes to expand, click on any values
(multiple values/multiple attributes can be filtered) and click on APPLY button to
filter the group to the desired set of images.

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 Click on any of the numeric measures in the ‘Attributes’ filtering Tab. This will show
a distribution spread of the items based on the range of the values available.

 Show Measures Click on the ‘Show Measures Controls’ icon in the Filtering panel to
select up to 6 measures in the ‘Show Measures’ pop up panel and then click on the
‘Save & Apply’ button to quickly.

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 Sorting the selection Click on the ‘Summary & Sort Controls’ icon in the filtering panel to
apply ascending, descending sort and/or summary for the chosen measures. See Icon for
Sorting & Summary Control.

VM Layout – Image options


When creating a VM Layout, Images can be set as hanging stacks or folded stacks with the
click of a button.

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Exporting Outputs

Once ‘Preview’ is done and user is happy with the layout being used and the order of the
items, the layout can be exported in various formats. Click on the EXPORT tab to choose an
option to export and follow the prompts.

 For JPEG, PNG, PDF, PPT, use ‘CURRENT TEMPLATE OPTION” and choose
desired options.

 For Excel exports, choose the ‘IMAGES’ option.

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CONCEPT TO SHELF (CTS) MEETING:

These meetings are implemented by the corporate strategy team. These meetings take place 4
times in one season and a total of 8 times in two seasons. These meetings are only conducted
for fashion category. These meetings take place majorly pre-road show, post-roadshow, mid-
season review and end season review. In this meeting, the planning team gives the
requirement of the styles and options needed for their stores. The design team takes the
requirements into consideration and develops a story and takes inspiration from it to create
the sketches. Then the design is presented to the planning and the product team during the
meeting and finally is communicated to the sourcing department.

The final option plan is made on doing the sales analysis of the previous season. For example
if printed shirts were better performing than checks last season then printed shirts will get
repeated in more number of options in the coming season. They review the sell through
reports of the previous season to come to a conclusion. In the sell through reports, they check
the hit flat misses of every style. If the sell through is more than 60% that style is adopted in
the next season also. Its termed as "yes" for the new season. If the sell through is 50%, it is
termed as "flat" that is they still consider if they should take it to the next season or not. If the
sell through is less than 40% then the style has "missed" it and it is not carry forwarded in
the coming season.

CTS MEETINGS SCHEDULE LINE AND ACTIVITY FOR SS'19:

Sl
Activity Responsible
No

1 AW17 Full Price Season read presentation Merchandise planning team


2 Submission of SS19 Option Plan Merchandise planning team

3 Season kick off meeting Milestone

4 Changes to SS19 Option Plan (if any post EOSS) Merchandise planning team
Handover CADs and fabric indent (woven) and knits FG
5 Product team
dockets from product to sourcing
6 Create PRs in system for woven and knits Product team
Handover of dockets (woven) and all remaining
7 Product team
categories from product to sourcing

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8 Analyse SS18 sales - 6 weeks season read Merchandise planning team


9 Analyse SS18 KA and competitor trends KA team

10 Concept Finalization Milestone

11 Incorporate design inputs from season read Design team


Dockets submission to sourcing post incorporating
12 Product team
design inputs from season read : Part (A) - Knits
Dockets submission to sourcing post incorporating
13 design inputs from season read : Part (B) - Other Product team
categories
14 Raise PRs in the system for sampling Product team
Product team to provide detailed target cost (Bugdet
15 File with break up) to sourcing against each design Product team
code
Sourcing to prepare costing basis design dockets -
16 Sourcing team
Knits
Sourcing to prepare costing basis design dockets -
17 Sourcing team
Woven and other categories
18 Provide print strike-offs (Paper print) Sourcing team
19 Approve print strike-offs (Paper print) Design team
20 Provide print strike-offs (Fabric Print) Sourcing team
21 Approve print strike-offs (Fabric Print) Design team
22 Line Selection Milestone
Submit revised knits docket to sourcing basis inputs
23 Product team
from line selection - max 10% edits
Submit revised docket to sourcing for all other
24 categories basis inputs from line selection - max 10% Product team
edits
25 Sample garments delivered to office Sourcing team
26 Submit pre-roadshow sample based costing Sourcing team
27 Line Adoption Milestone
28 Roadshow Milestone
Design to submit final sales man sample with comments
29 Design team
for edits
30 Raise PRs for long lead time options Merchandise planning team
31 Collate all orders own stores + other channels Merchandise planning team
32 Freeze OTB for the season Merchandise planning team
33 Finalize drop scheduling for the season Merchandise planning team
Finalize and share pipeline wise option delivery - core,
34 Merchandise planning team
essential, fashion
35 Upload PRs in system for Hit 1 (Drop 0 + Drop 1) Merchandise planning team
36 Update 5 mandatory fields in SAP Merchandise planning team
Finance to clear all PRs for Hit 1 processing (Drop 0 +
37 Finance team
Drop 1)
38 Line Freeze Milestone
Sourcing to upload revised costing basis volumes and
39 Sourcing team
road show edits
40 Publish final delivery schedule Sourcing team

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2.4 SOURCING DEPARTMENT:


Once the orders are received from the Road Show, mill week is conducted and bulk
production for the coming season begins. The product team gives the BOM - Bills of Material
to the sourcing team which has the entire detail of each style. Details on what fabric to be
used, which trims to put, what threads to use, any finishes in the fabric, type of weave/knit,
any particular type of wash, if any embroidery work to be done, any back pocket to be
attached, etc. The quantity of merchandise to be made is given by the planning and product
team to the sourcing team. The size breakup of each option and the number of pieces in each
option is decided by the planning team.

Sourcing has two major teams - Bulk buying team and Sampling team. Bulk buying team
takes the entire order once all the samples are approved by the product development and
Quality checking team. For example if a particular sample of denim comes (base size of
denim sample is 32 for men) the quality team does risk analysis of the sample. They analyse
the intricate details of the sample. Product development team along with Quality team checks
for any complication in the sample. Samples once approved by the respective teams, then
bulk production happens.

The main coordination of the sourcing department takes place with the product development
team of the brand. The entire costing along of each option is done by the product
development team along with maintaining their multiples of the company. The Bill of
material is uploaded in the system by the sourcing team and it goes for approval to the
product development team. Once it is approved the sourcing team starts its production
function. If there is any extra work like an embroidered design on the garment, then
approvals for this has to be taken from the product development team and design team
together.

There is a sealed specification sheet made by the technical team of Arvind. There is a pattern
master who is in charge of making a few samples as instructed by the designing team. Along
with the sealed specification sheet the size set of the PP(pre-production sample) is given to
the product team. The product team checks the thread shade, back pocket, buttons, tag, etc.
and then approves the samples. The Quality team also inspects the samples in terms of its
wash, shade blanket, etc. After the samples are approved, it goes to the sourcing team where
production seals are put which is a green signal for the production of the season.The

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approved sample is then given to the vendor and further negotiations and final deals are made
with the vendor. Once the sourcing team hands over the samples to the vendor, the vendor
has to prepare a costing sheet along with a Time and Action calendar. Once the production is
done, the good are dispatched to the warehouse. There again, the quality team checks the bulk
production sent by the vendor.
The sourcing team has direct and overall coordination with these teams:

Sourcing
Team

Product Design Supply


team team chain team

 The Product team approves the samples given by the sourcing team.
 The Bill Of Material is prepared by the Product team and passed to the sourcing team for
detailed information about the product to be made.
 The Design team communicates with the sourcing team if there is any complicated design or
a different/new fabric to be sourced for a particular kind of garment.
 The Supply Chain team does the drop wise planning in the stores and confirms the delivery of
the stock with the sourcing department.

The sourcing team is also in charge of visiting the factory to cross check with the TNA given
by the vendors.

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BILL OF MATERIAL SNAPSHOT:

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TIME AND ACTION CALENDAR:

SPEC SHEET

SS18 FLYING MACHINE JEANS - BLUE LABEL


STYLE NO - FMJN3985 DATE : 15-12-2017

SKINNY JACKSON FIT


AFTER WASH
SL NO SIZE's TOL + / - 28 30 32 34 36 38 40
1 TOP WAIST 1/2 28 1/2 30 1/2 32 1/2 34 1/2 36 1/2 38 1/2 40 1/2
2 BOTTOM WAIST 1/2 30 32 34 36 38 40 42
3 WAIST BAND HEIGHT 0 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4
4 SEAT (excluding w/b 3 points) 0 4 1/2 4 3/4 5 5 1/4 5 1/2 5 3/4 6
5 SEAT ( measure at 3 points ) 1/2 34 1/2 36 1/2 38 1/2 40 1/2 42 1/2 44 1/2 46 1/2
6 THIGH AT CROTCH 3/8 21 22 23 24 25 26 27
7 KNEE 14" BELOW CROTCH 1/4 14 1/4 14 3/4 15 1/4 15 3/4 16 1/4 16 3/4 17 1/4
8 BOTTOM 1/4 12 1/2 13 13 1/2 14 14 1/2 15 15 1/2
9 BOTTOM HEM HEIGHT 0 3/8 3/8 3/8 3/8 3/8 3/8 3/8
10 FRONT RISE EXCL WB 1/8 7 7 1/4 7 1/2 7 3/4 8 8 1/4 8 1/2
11 BACK RISE EXCL WB 1/8 12 3/4 13 13 1/4 13 1/2 13 3/4 14 14 1/4
12 INSEAM LENGTH 1/2 33 33 33 33 33 33 33
13 FRONT SCOOP POCKET OPENING AT WAIST SEAM 1/8 4 1/4 4 1/4 4 3/4 4 3/4 5 5 5 1/4
14 FRONT SCOOP POCKET OPENING AT SIDE SEAM 1/8 3 1/2 3 1/2 3 1/2 3 1/2 3 1/2 3 1/2 3 1/2
15 COIN POCKET WIDTH AT WIDEST POINT 1/8 3 1/4 3 1/4 3 1/2 3 1/2 3 3/4 3 3/4 4
16 COIN POCKET WIDTH AT BOTTOM 1/8 2 3/4 2 3/4 3 3 3 1/4 3 1/4 3 1/2
17 COIN POCKET HEIGHT AT CENTER 1/8 3 1/4 3 1/4 3 1/4 3 1/4 3 1/4 3 1/4 3 1/4
18 COIN POCKET HEIGHT AT SIDE 1/8 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2
19 COIN POCKET PLACEMENT FROM BELOW W/B SEAM 0 1/2 1/2 1/2 1/2 1/2 1/2 1/2
20 COIN POCKET PLACEMENT FROM SIDE SEAM 0 3/8 3/8 3/8 3/8 3/8 3/8 3/8
21 BACK POCKET WIDTH AT TOP 1/8 6 1/4 6 1/4 6 1/2 6 1/2 6 3/4 6 3/4 6 3/4
22 BACK POCKET HEIGHT AT CENTER 1/8 6 1/8 6 1/8 6 3/8 6 3/8 6 5/8 6 5/8 6 5/8
23 BACK POCKET HEIGHT AT SIDE 1/8 5 5 5 1/4 5 1/4 5 1/2 5 1/2 5 1/2
24 BACK POCKET WIDTH AT BOTTOM 1/8 5 1/2 5 1/2 5 3/4 5 3/4 6 6 6
25 BACK POCKET PLACEMENT FROM SEAT SEAM 1/8 1 1/2 1 3/4 1 7/8 2 1/8 2 1/4 2 1/2 2 3/4
26 BACK POCKET PLACEMENT FROM BELOW YOKE SEAM AT SIDE SEAM 1/8 1 1/2 1 1/2 1 1/2 1 1/2 1 1/2 1 1/2 1 1/2
27 BACK POCKET PLACEMENT FROM BELOW YOKE SEAM AT SEAT SEAM 1/8 7/8 7/8 7/8 7/8 7/8 7/8 7/8
28 YOKE HEIGHT AT SIDE 0 1 1 1 1 1 1 1
29 YOKE HEIGHT AT C.B 1/8 2 1/4 2 1/4 2 1/4 2 1/4 2 1/4 2 1/4 2 1/4
30 LOOP HEIGHT 1/8 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2 2 1/2
31 LOOP WIDTH 0 1/2 1/2 1/2 1/2 1/2 1/2 1/2
32 CENTER BACK "2" LOOPS WIDTH ( ONLY ) 0 3/4 3/4 3/4 3/4 3/4 3/4 3/4
33 NO OF LOOPS INCL CB "2" LOOPS 0 6 6 6 6 6 6 6
34 BACK LEATHER PATCH PLACEMENT FROM SIDE LOOP 0 1/2 1/2 1/2 1/2 1/2 1/2 1/2
35 BACK LEATHER PATCH PLACEMENT FROM TOP OF W/B 0 1/2 1/2 1/2 1/2 1/2 1/2 1/2
36 FRONT FLY "J" STITCH WIDTH 0 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4 1 3/4
37 FRONT FLY "J" STITCH LENGTH 1/8 5 5 5 1/2 5 1/2 6 6 6 1/2
38 ZIPPER LENGTH 0 4 4 4 1/2 4 1/2 5 5 5 1/2
NOTE : MEASUREMENT FOLLOW SPEC. OTHER STITCHING DETAILS FOLLOW SAMPLE. ONE SIZE SET APPROVED FROM QA TEAM & MERCHANDISER BEFORE START BULK. BASE FIT - 2502

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2.5 VISUAL MERCHANDISING TEAM


The Visual Merchandising Team of Lifestyle Brands i.e. Flying Machine, U.S. Polo, Ed
Hardy and True Blue sit in the same work place. The Visual Merchandiser Head is Mr.Pankaj
who handles all the responsibilities of Visual Merchandising of Flying Machine. Since Flying
Machine is a youth oriented brand targeting at the age group of 18-35 years, their look and
feel of their stores mostly communicates youthful, energetic and casual vibes. The Visual
Merchandising team mainly coordinates with the product team and the design team. During
sales or offers in a season, the Operations team and the Marketing team coordinates with the
Visual Merchandising team for the offer or discount promotion in the stores communicated to
the customers. The key functional areas of this team are:

Setting up of Live window display


during RoadShow

To maintain the look and feel of the


stores throughout the season

To ensure the communication


between the brand and the customers

To put the merchandise attractively on


the fixtures

To communicate offers and discounts


during the season

For printing of promotional offers or discounts the regional Visual Merchandising team looks
for a vendor and negotiates with him and places the order. The vendor will locally develop
the print of the offer or discount, for eg:"Flat 50%" on the vinyl flask sunboard. For example,
if the offer is only applicable to the stores in Chandigarh, the vendors are looked only in that
area so that the offer is communicated easily and without any hassle. The commercial team
does the payment to the vendors. The bills are submitted to the commercial team by the
vendors and then the purchase order number is communicated to the Visual Merchandising
team and the commercial team by the vendors. It takes minimum 45 days to release the
payment for the vendors by the Visual Merchandising team.

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Plan of Action before Season Launch:

Designing of window for communication of the story for the new


season

Making of Planogram book - How to display the new season's


merchandise

Deciding the In-store display for the new season

Making Visual changes like adding the brand ambassador's picture with
the new merchandise

Designing of new signages which communicates about the new


season's theme and story

The Design Team sends the soft copy in the form of a presentation to the Visual
Merchandising team which has the details of the mood, inspiration and story of the new
theme for the upcoming season. It gives insights about the colour theory developed for the
season along with the designs of the new merchandise. Colour pantones are also shared for
better understanding of the theme. This helps the team to understand what kind of look and
feel the store should have as well as effective communication to the customers by designing
an attractive window display.

The Visual Merchandising team communicates with the Planning team to know how much
stock is coming in the store and how many options are coming for different categories of
merchandise. Their stock count gives them guidelines on how effectively the merchandise
can be displayed in the store. Also, the planning team guides them if more number of options

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are coming in a particular style so that those merchandise are displayed in more number of
fixtures. For example, AW18's story is Eco warriors. The collection of Eco warrior has 2
options and Rebel Warriors have 15 options. Therefore, more emphasis of Visual
Merchandising on Rebel Warriors should be given.

Fixtures commonly used in the store:

 Gondolas
 Round Nesting Table
 Denim Table (To fold the denim)
 Two and Four Arm Fixtures
 Acrylic Sunglass Display Holder

Before the season launch a Visual Merchandising manual is made which is given to the store
managers both in hard copy and soft copy to the store managers so that they keep the stores
prepared according to given theme. Also, every week instructions are given to all the EBO's
if there is any change in the Visual Merchandising that has to be done. To design the floor
layout and the placement of the fixture Coral Draw and Photoshop are used as their
software.
Organisational Hierarchy of Visual Merchandising Team:

Visual
Merchandising
Head

Head Office
team (7
members)

Regional Office
team (7
members)

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2.6 DESIGN TEAM:


The CTS meeting happens between the Sourcing, Planning, Product Development and the
Design team. This meeting happens before the road show where final range has to be decided
between these teams. The design team undergoes a lot of research processes to finally
develop and come up with a range for the next season. For example: For AW19 season, the
CTS meet will happen by the month of this end.

Steps taken by the design team before the RoadShow:


 Secondary and Primary research done to develop a range.
 Inputs about future forecasting and trends taken from WGSN and ADMAX
 Presentation is made which consists of a few details: (Ideation Stage)

Story for the season

Mood Board

Inspiration Board

Colour theory - Pantones

Sillhouttes

Trims to be used

Washes if any

 Design Development process:

Developing Prints

Any extra artwork in the fabric

Deciding Threads

Wash Developments

Deciding appropriate trims

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 Presentation (Concept Finalisation stage): Actual designs are finally made along with the
processed work for the range.
 The docket consists of the minute details of the design along with fabric and trim details
and is handed over to the product team.
 The design and the making is shown to the vendor and he develops the prototypes and
makes the samples for the roadshow in two sizes - S and M. (Small and Medium)
 Range Finalisation: Lastly the approvals are taken from the product, sourcing and planning
teams for the range and the range is ready for the RoadShow.

The Design team works very closely with the Product Team and the Sourcing Team for the
different kinds of approvals related to their range. The design team have to keep in mind of the
company's multiple and then come up with a range so that the price point is not affected. The
design team on a regular basis in every 15 days keeps a track of the current trends in the
market. If they find a new trend developing in the mid-season, they quickly develop around 6-
10 articles of it and push those trends for the brand so that the brand is also up to dated with the
current demand and tastes and preferences of the customer. This range is called "SPEED TO
MARKET" range.

The Design team has discussions with the Planning team during mid-season and the end of
season. They review all the styles and price-points for that particular season to find which
price-point worked the best and worst that season. "Sell through rate" plays an important role
for the design team as well as it indicates about the performance of each style that particular
season.

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2.8 OPERATIONS TEAM:


Retail operations management requires an understanding of merchandising, logistics and cost
control in order to move items from stores or production facilities into the hands of
consumers. The operations team works very closely with the Planning team, Visual
Merchandising team and the Commercial team. The operations department looks after all the
exclusive brand outlets of Flying Machine all over the country. Their main goal is to measure
the Key performance Indicators effectively and ensure the store is achieving their targets every
month. The operations team ensures with the planning team about stock allocation and
dispatching of those stock positively within the store. The planning team after every season
grades the stores accordingly based on their store performance. This data helps the operations
team to set the targets accordingly for every store. The operations team along with the planning
team understands the sell through report and decides along with the marketing team about
promotional offers and in-season discounting as wells End of Season Sale. Once that is
decided, the operations team communicates it to the Visual merchandising team for the display
of offers and discounts. Their functional role is to ensure that the EBO's operate properly
without any mishandling of stocks like - "Overage and Shrinkage."

Their basic key operational roles are:

Inventory
Analysis

Employee Operations Visual


Motivation Merchandising
Team

Cost
Management

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Common KPI terms with formula:


 Average Transaction Value (ATV) : Net Amount/Total number of Bills
 Average Selling Price (ASP) : Net Amount/Total Quantity
 Average Basket Size: Total Quantity/Total number of Bills
 Conversion percentage: Total number of Bills/Total number of walk-ins
 Sales per square foot (PSFPD): Total sales/Total area of the store
These KPI's are assessed on a monthly basis by the team and are known as "Daily Sales report
(DSR)."
The operations team also focuses on employee motivation and makes sure that the store
manager along with his sales people achieve their daily and weekly targets. They also develop
and maintain the Standard Operating Procedure (SOP) of the store.

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2.9MARKETING TEAM:
Flying Machine is a well established growing Indian brand. It was established in the year 1980.
Flying Machine was a cult brand in the late 90`s but with the advent of foreign players in the
market it lost its brand recognition in the masses. It was re-launched in 2007 with an Italian
designer and since then it has been constantly coming up with new ad campaigns to woo the
young target segment. The marketing team does various online and offline marketing.
Flying Machine caters to 75% of its merchandise for menswear and 25% to womenswear. It
also has its different division in the kids sector. The marketing for flying machine is done both
in online and offline medium.
Offline Mode:
 Print Media
 TV Commericals
 Billboards and Hoardings

Online Mode:

Facebook Page

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Discount Buzzfeed on facebook page

Update of Autumn-Winter collection 2018 on Facebook page

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Instagram Page

Campaign Promotion On Instagram Page

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Twitter Page

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AD CAMPAIGNS OF FLYING MACHINE


AD CAMPAIGN - 2007
Brand Endorser – Abhishek Bachhan was chosen in all Ad and communication campaign as
he was considered to be youthful, energetic, well established and fun loving celebrity at that
point of time.

This campaign was a good start by the brand to hit the right premium target segment who
were very individualistic in style and want to stand out in the crowd.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

AD CAMPAIGN - 2011

This campaign has been the most successful campaign by the brand till date which got a lot
of eyeballs catching. Indeed the communication plan was also integrated with social media
platforms like Facebook, Youtube and Twitter. The fan page of Flying Machine brand shot
from some few hundreds to 1,045,660 which clearly showed its recognition among the
youth. The brand aimed to build a “pliable” and trendy fashion label in its appeal to its target
audience.

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LATEST BRAND AMBASSADOR


SUSHANT SINGH RAJPUT

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4P'S FOLLOWED BY FLYING MACHINE

PRODUCT:
Flying Machine offers variety of products for men's and women's wear. It also has
expanded itself by adding accessories section in it.
Men's wear:
 Jeans - Blue Label, Kojima, Core, Fashion
 Shirt - Blue Label, F2000, Core, Fashion
 T-shirt - Blue Label, F2000, Core, Fashion
 Trousers - F2000
 Joggers
 Jackets
 Sweater
 Sweatshirts
 Shorts
Women's wear:
 Jeans
 Dresses
 Shorts
 Shirts
 T-shirts
 Tops
 Knit pants
Accessories:
 Caps
 Wallets
 Belts
 Shoes
 Flipflops
 Eyewear

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PRICE

Men's wear:

 Jeans : 1299-3399
 Shirts: 999-2299
 T-shirts: 399-1799
 Sweatshirt: 1699-2499
 Sweater: 1999-2599
 Shorts: 1499-1699
 Jacket: 2699-6999
 Joggers: 1499-2499
 Trousers: 2099 - 2499
Women's wear:
 Jeans: 1399-2099
 Dresses: 999-1699
 Shorts: 899-1899
 Shirts:1399-1799
 T-shirts: 499-999
 Tops: 999-1699
 Knit pants: 1799
Accessories:
 Caps: 599-799
 Wallets: 1099-1699
 Belts: 1099-1699
 Shoes: 1399-3299
 Flipflops: 499-799
 Eyewear: 999-1699

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

 PLACE:
Flying Machine operates through different channels of distribution. It has its own
exclusive brand stores operated by the company as well as given as franchisee to the
franchisor. They also sell through distributors in multi-brand outlets like ICONIC,
KAPSONS,etc. They operate through key accounts channel too i.e., via department
stores like Shoppers Stop, Reliance, Central, Lifestyle, Pantaloons and Globus. They are
also present in online channels like Myntra, Amazon and Jabong. Arvind has made its
own online portal through which they promote their brands like Aeropostale, U.S. Polo,
Ed hardy, Arrow, Nautica, GANT, GAP, True Blue, IZOD, Arrow, Unlimted, The
Childrens Place, Sephora and Flying Machine. The website is called as NNOW.COM

PLACE

ONLINE OFFLINE

KEY
MYNTRA KOOVS FLIPKART SNAPDEAL JABONG AMAZON NNOW EBO'S MBO'S
ACCOUNTS

 PROMOTION:
Flying Machine does a lot of promotional campaigns from time to time to rejuvenate the
brand. It ensures to change its "Brand Ambassadors" and keep up with the celebrities who
are young and enthusiast in the industry so that the brand is uplifted because of the them.
Through its online medium, it keeps signifying about any contests or offers happening.
Flying Machine has more than 270+ stores and keeps all their exclusive stores updated
with various in-season discounting and promotional offers in that season.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

3.0 SUPPLY CHAIN TEAM:


The supply chain team of Flying machine works very closely with Planning team. After the
roadshow the orders are received from the buyers and then the planners start allocating the
stock as per the orders received. "Bin Allocation" is done where virtual bins are made and
stocks are allocated. "Out Bound Delivery - OBD" is made where final allocation of stock is
done by the planners and it is sent out to the warehouse.

BIN ALLOCATION

STOCK ALLOCATION

PURCHASE INDENT

OBD
The warehouse is located in Hoskote, Bangalore for Flying Machine, Arrow, Ed hardy and
True blue. The winter wear collection's warehouse of Flying Machine is located in Gurugram.
All the Returns happening from different partners in a season goes to a different warehouse in
Bangalore-Mysore Highway. The warehouse where fresh stock arrives every season is 47,000
square feet with 86 people working for all the brands. For AW'18 7 lakh dispatchment was
scheduled where 5 lakh orders were from stores and 2 lakh orders were online.

The warehouse Manager is responsible of receiving and dispatching of stock timely once they
receive the order from the Planning team. There are different bins allocated of every category
like - Shirts, T-shirts, Jeans, Accessories, etc. There are a total of 31,000 bins in the warehouse
designated for Flying Machine. The bins for denims are kept on the 1st floor because of their
weight. All the other categories bins are placed on the ground floor. The Accessories bin area
is locked to avoid pilferage. Style code wise the stocks are segregated and the quantity in each
bin is mentioned outside the label put in every bin.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

PROCESS FOR RECEIVING STOCKS INSIDE THE WAREHOUSE:

Vehicle loaded with stock


arrives

Gatepass is made

Quality check of the style


codes

Approval of the Gatepass

Unloading of the stock in the


pre-GRN area

GRN area- Stocks are checked


and kept on the table

Put Away of stock

Stock goes to the designated


row,rack,level and bin

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

DISPATCHING OF STOCK TO THE RESPECTIVE BUYERS:

OBD is released

Pack List is prepared

Audit team checks the list

Picking of stock is done

The stocks are put in carton boxes


according to the packing list

Carton boxes are shrinked


wrapped to protect from damage

Carton stickers are put

Weight check of every carton box


is done

Lorry Receipt details mentioned


to track where the stock is

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

The most vital role of the entire process is to ensure that the "Inward and Outward" of stocks
are done timely. Every morning the warehouse manager receives the requirement report from
ARS if there is any shortage of stock in any of the company operated store or from the
partners. In every row, all the corners have admin bin in the end where less than 5 pieces of
stock are kept to know about the last few pieces in that category.

RF Gun is used to scan every barcode of the style code. It helps in three major aspects:

 Avoid mis-shipments
 Avoid difficulty locating material
 Avoid inaccurate information entered manually

Benefits of using RF Gun Scanner:

Receiving

Provides verification of receipts against purchase orders, advanced shipping notices (ASNs) or
blind receipts. Received product may be adjusted or corrected. During the receiving process
items may be placed on hold with a reason code associated to this action.

Cycle Count

Allows operators to verify inventory counts by product, location, or through system generated
cycle count orders. Counts may be user initiated or based on a system generated cycle count
request that can be set for business needs. Configuration allows for open or blind cycle counts.

Putaway

Provides movement of product from receiving into the primary (active), secondary (reserve or
overstock) storage locations. The level of scan verification is adjustable and can include
product and/or location barcodes. User based rules are configurable for a variety of put-away
strategies.

Picking

Supports a variety of picking methods. Operators can be directed via RF and prompted to
confirm scan locations or the information may be tied in with automation to complete the
picking. Operator-based configurations can limit order batch sizes for different operators.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

CHAPTER III:

CROSS-FUNCTIONING OF
PLANNING TEAM WITH
OTHER DEPARTMENTS

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CROSS-FUNCTIONING OF PLANNING TEAM WITH OTHER DEPARTMENTS:

The Planning team alone is not responsible for the sell through rate of each style. It is the
working of different departments together to ensure that the sell through is above 55% for each
style code and is running successfully in the market.

Teams responsible for higher or lower percentage of Sell Through Rate:

SELL
THROUGH
RATE %

PLANNING PRODUCT SUPPLY CHAIN OPERATIONS


DESIGN TEAM
TEAM TEAM TEAM TEAM

The Planning team works closely with these teams to ensure that the sales performance is
uplifted every season for Flying Machine.

DESIGN TEAM:
Cross Functional Role with Planning team:
The Designers are actually the creators of the product. The Planning team coordinates with the
designers and updates them about which style codes are "fast-moving" and "slow-moving." If a
certain style code is a "hit" or a "flat", the planning team at the end of season's review meeting
tell them about the performance. The store managers directly coordinate with the planners
when they need stock. They also update about the merchandise and complaints if received
about any product in that store. The planner will update these reviews to the design team and if
necessary corrective actions are taken.

Direct coordination
PLANNING TEAM DESIGN TEAM

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The Designers also seek approval from the planning and the product team of the range they
develop for a season and present it during the CTS meeting.
If the Designer wishes to introduce the "Speed to Market Range" it coordinates with the the
planning team to understand better how many options can be well suited to introduce in the
stores as the planners are the stock allocators.
SUPPLY CHAIN TEAM:
Cross Functional Role with Planning team:
The Planners have very significant and vital relationship with the supply chain. They need to
have their synchronisation in an effective manner for smooth functioning of the business.
These two teams work very hand in hand and hence two people in the planning team play a
key functional role of the supply chain. The planners create virtual bins as soon as they receive
orders from the RoadShow. After bin allocation is done, OBD is released to the supply chain
team and in turn to the warehouse manager. These have details about how much stock is
allocated for each partner and distributor as well as for their exclusive brand outlets. This is
done in the beginning of each season and is well communicated to the supply chain in order to
dispatch the designated quantity. Effective communication and quick preparation is an
essential key functional role required for these teams.

Direct coordination
PLANNING TEAM SUPPLY CHAIN
TEAM

VISUAL MERCHANDISING TEAM:


Cross Functional Role with Planning team:

The VM team and Planning team do have much inter-linked responsibilities with each other.
The VM team is primarily responsible for the look and feel of the stores. The Visual
Merchandising team communicates with the Planning team to know how much stock is
coming in the store and how many options are coming for different categories of
merchandise. Their stock count gives them guidelines on how effectively the merchandise
can be displayed in the store. Also, the planning team guides them if more number of options
are coming in a particular style so that those merchandise are displayed in more number of
fixtures. For example, AW18's story is Eco warriors. The collection of Eco warrior has 2

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options and Rebel Warriors have 15 options. Therefore, more emphasis of Visual
Merchandising on Rebel Warriors should be given.

MARKETING TEAM:
Cross Functional Role with Planning team:
The Marketing team and Planning team communicate with each other regarding any promotional
offer and is-season discounting during the season. The planners identifies from the sales report if a
particular style code is working or not. It informs the marketing team and designs discounts that is
best suited. It also decides together what promotional offer to come up with which improves the sell
through during the season. During EOSS, every week new discounting offers come up which is
decided along with planning team depending on how fast the stock is moving during EOSS.
Example: Week 1 - Buy 1 40%, Buy 2 30%
Week 2 - Buy for 5000 get 5000 merchandise free
Week 3 - Buy at flat 50% off
Week 4- Buy 1 @50%off, Buy2 @40%off, Buy 3 @30%off.

OPERATIONS TEAM:
Cross Functional Role with Planning team:
The operations team and the Planning team operate together for their Exclusive Brand Outlets.
There is no Buying team for Flying Machine. The Planners are only the Buyers. The operations
team along with the Planning team does Brand Buying for their EBO outlets. The Planners does
option buying for its own EBO and the operations team coordinates along with this activity and
ensures more number of options are allocated to better performing stores. The Planning team and
Operations team does Store Grading depending on the sales performance of every store in each
season. The stores are graded depending on their store and the percentage of target achieved during
that season. The operations team also communicates with the planning team regarding discounting
done during the season.

CORPORATE STRATEGY TEAM:


Cross Functional Role with Planning team:
The Strategy team and Planning team play a key functional role with each other during the CTS
meetings. The strategy team provides a list of activities well in advance with the planning, Design,
Sourcing and the Marketing team. It provides a platform to conceptualise their pre-season
discussion before the roadshow takes place. They also ensure these Meetings are done 6 times in a

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year and 3 times in each season between these teams. It holds these teams together and ensures
smooth functioning. Also, Planners use Kanvas to know about the stores performance in each
region and checking with the sell through rate of each style code. This data is updated by the
strategy team for quicker information detail about their stores, sales performance and sell through
rates.

PRODUCT TEAM:
Cross Functional Role with Planning team:
This team functions very effectively with the Planning team. The Product team coordinates with the
Planning team before the Roadshow to take the quotation of the number of options to be taken for
the RoadShow. The Planners gives them a list of options that has to be taken for the roadshow for
the buyers. The Planners are the price-point makers for their brand. The product team ensures to
maintain the multiple of the company and coordinates with the sourcing team to get the product
done at the best prices. The key functional link between them is to maintain the multiple of the
company in accordance with the price set by the planner and the Purchase Requisition Quantity
given by the planners for different channels - MBO, EBO, Key Accounts and Online. Once the
product team gets the PR quantity it starts coordinating with the sourcing and design team.

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

CHAPTER IV

LEARNINGS
WITH THE
PLANNING TEAM

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Sell Through Analysis :


As an integral function of being a planner, it is very important to know how to calculate sell
through and analysis those reports to understand the FMS and the SMS during that season.
During the Spring Summer season 2018 ( SS'18), planner keeps a check on the sell through
from time to time basis. During my internship study, I have worked on the various sell
through reports of Men and Women to understand the sales performance in each category.
These reports gave me an understanding of which style codes are working and not working.
Sell through percentage higher than 55% is considered as a fast mover in that Stock. Once,
STR is calculated, Performance Index can be found out and Grading is done for the style
codes. Sell through rates are then arranged from highest to lowest percentage.

SS18 SELL THROUGH FOR MEN'S WEAR AND WOMEN'S WEAR:

Values
Sales Sales SOH SOH Sell
Product Brick Contribution qty Contribution Qty Thru
DRESSES 2.96% 254 1.46% 238 52%
JEANS 42.17% 3617 51.45% 8413 30%
SHIRTS 19.42% 1666 10.59% 1732 49%
TOPS 10.88% 933 14.02% 2293 29%
TROUSERS 0.01% 1 0.03% 5 17%
TSHIRTS 24.55% 2106 22.45% 3671 36%
Grand Total 100.00% 8577 100.00% 16352 34%

STATE WISE SELL THROUGH REPORT:

Values
Sales Sales SOH SOH Sell
State Contribution qty Contribution Qty thru
AP & TEL. 9.28% 796 11.41% 1866 30%
Arunachal
Pradesh 2.48% 213 2.79% 456 32%
Assam 0.61% 52 3.24% 530 9%
BIHAR 3.91% 335 6.99% 1143 23%
DELHI 1.26% 108 3.01% 493 18%
GUJARAT 3.36% 288 2.62% 429 40%
HARYANA 8.79% 754 8.90% 1455 34%
Jammu & Kashmir 1.31% 112 2.45% 401 22%
KARNATAKA 16.57% 1421 12.07% 1973 42%
Kerala 6.16% 528 4.67% 763 41%
MAHARASHTRA 5.28% 453 8.44% 1380 25%
ORISSA 3.43% 294 4.38% 716 29%

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PUNJAB 4.10% 352 1.87% 305 54%


TAMIL NADU 15.56% 1335 11.82% 1932 41%
UTTAR PRADESH 9.91% 850 8.46% 1383 38%
Uttarakhand 3.56% 305 1.66% 271 53%
WEST BENGAL 4.44% 381 5.23% 856 31%
Grand Total 100.00% 8577 100.00% 16352 34%

SS18 STYLE PERFORMANCE SELL THROUGH AND SORTING OF SELL


THROUGH RATE FROM LOWEST TO HIGHEST PERCENTAGE:

Product Trading Cover Sale Sales SOH SOH Sell


Style Brick Days ROS Days % Qty % Qty thru
FWDR0189 DRESSES 40 0 260 0.02% 2 0.08% 13 2%
FWDR0192 DRESSES 68 3 8 2.48% 213 0.15% 24 5%
FWDR0193 DRESSES 60 1 309 0.45% 39 1.23% 201 5%
FWJN1241 JEANS 102 3 42 3.11% 267 0.67% 109 5%
FWJN1242 JEANS 81 2 78 2.18% 187 1.11% 181 6%
FWJN1243 JEANS 49 0 82 0.07% 6 0.06% 10 7%
FWJN1245 JEANS 102 2 53 2.83% 243 0.77% 126 8%
FWJN1246 JEANS 102 2 86 1.92% 165 0.85% 139 9%
FWJN1247 JEANS 99 2 83 2.08% 178 0.92% 150 10%
FWJN1248 JEANS 67 2 91 1.88% 161 1.33% 218 10%
FWJN1249 JEANS 131 1 296 1.21% 104 1.44% 235 11%
FWJN1250 JEANS 99 1 215 1.28% 110 1.46% 239 12%
FWJN1251 JEANS 67 2 91 1.45% 124 1.03% 168 12%
FWJN1253 JEANS 78 1 359 0.82% 70 1.97% 322 12%
FWJN1254 JEANS 76 0 1397 0.24% 21 2.36% 386 12%
FWJN1256 JEANS 63 1 184 1.06% 91 1.63% 266 13%
FWJN1257 JEANS 123 1 116 2.15% 184 1.06% 174 13%
FWJN1258 JEANS 135 1 242 1.49% 128 1.40% 229 13%
FWJN1260 JEANS 103 1 256 1.28% 110 1.67% 273 13%
FWJN1261 JEANS 102 1 206 1.26% 108 1.33% 218 13%
FWJN1263 JEANS 68 1 249 0.96% 82 1.83% 300 13%
FWJN1264 JEANS 37 0 79 0.08% 7 0.09% 15 13%
FWJN1269 JEANS 102 2 79 2.16% 185 0.87% 143 14%
FWJN1270 JEANS 102 1 212 1.20% 103 1.31% 214 15%
FWJN1273 JEANS 67 2 87 1.89% 162 1.28% 210 15%
FWJN1274 JEANS 76 1 493 0.59% 51 2.02% 331 16%
FWJN1280 JEANS 38 0 228 0.03% 3 0.11% 18 17%
FWJN1282 JEANS 16 1 115 0.26% 22 0.97% 158 17%
FWJN1283 JEANS 20 2 77 0.43% 37 0.87% 143 17%
FWJN1285 JEANS 77 1 144 1.05% 90 1.03% 168 17%
FWJN1287 JEANS 18 2 102 0.35% 30 1.04% 170 18%
FWJN1289 JEANS 63 1 299 0.50% 43 1.25% 204 19%

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FWJN1291 JEANS 17 1 224 0.13% 11 0.89% 145 19%


FWJN1292 JEANS 8 0 400 0.03% 3 0.92% 150 21%
FWJN1293 JEANS 16 0 331 0.08% 7 0.89% 145 21%
FWJN1296 JEANS 65 1 181 0.82% 70 1.19% 195 21%
FWJN1297 JEANS 77 0 498 0.40% 34 1.35% 220 22%
FWJN1298 JEANS 63 1 435 0.38% 33 1.39% 228 22%
FWJN1301 JEANS 30 1 194 0.22% 19 0.75% 123 23%
FWJN1302 JEANS 81 1 258 0.69% 59 1.15% 188 23%
FWJN1303 JEANS 66 1 192 0.71% 61 1.08% 177 24%
FWJN1304 JEANS 81 1 152 1.00% 86 0.98% 161 24%
FWJN1305 JEANS 78 0 872 0.26% 22 1.50% 246 24%
FWJN1306 JEANS 76 1 366 0.51% 44 1.30% 212 25%
FWJN1307 JEANS 17 1 130 0.22% 19 0.89% 145 25%
FWJN1308 JEANS 18 1 129 0.26% 22 0.97% 158 26%
FWJN1310 JEANS 66 1 283 0.45% 39 1.02% 167 26%
FWJN1313 JEANS 62 0 915 0.19% 16 1.44% 236 29%
FWSH1058 SHIRTS 134 1 87 2.06% 177 0.70% 115 29%
FWSH1059 SHIRTS 100 2 91 1.75% 150 0.84% 137 29%
FWSH1060 SHIRTS 45 0 21 0.17% 15 0.04% 7 29%
FWSH1063 SHIRTS 101 1 253 0.96% 82 1.25% 205 30%
FWSH1064 SHIRTS 103 2 35 2.51% 215 0.45% 73 31%
FWSH1065 SHIRTS 134 1 282 1.13% 97 1.25% 204 32%
FWSH1066 SHIRTS 120 1 220 1.24% 106 1.19% 194 32%
FWSH1068 SHIRTS 100 1 178 1.19% 102 1.11% 182 32%
FWSH1069 SHIRTS 125 1 158 1.55% 133 1.03% 168 32%
FWSH1070 SHIRTS 79 2 69 1.66% 142 0.76% 124 32%
FWSH1071 SHIRTS 65 1 85 1.11% 95 0.76% 124 33%
FWSH1072 SHIRTS 68 1 18 1.18% 101 0.16% 26 35%
FWSH1073 SHIRTS 66 2 30 1.43% 123 0.34% 55 35%
FWSH1074 SHIRTS 67 2 62 1.49% 128 0.72% 118 35%
FWTO1046 TOPS 126 1 400 0.79% 68 1.32% 216 35%
FWTO1047 TOPS 100 1 187 1.11% 95 1.09% 178 36%
FWTO1049 TOPS 102 2 60 2.09% 179 0.65% 106 36%
FWTO1050 TOPS 126 1 161 1.43% 123 0.96% 157 38%
FWTO1052 TOPS 133 1 422 0.80% 69 1.34% 219 38%
FWTO1054 TOPS 127 1 426 0.78% 67 1.38% 225 42%
FWTO1056 TOPS 134 0 1350 0.31% 27 1.66% 272 42%
FWTO1057 TOPS 83 1 207 0.80% 69 1.05% 172 42%
FWTO1058 TOPS 74 0 428 0.42% 36 1.27% 208 43%
FWTO1059 TOPS 78 1 287 0.63% 54 1.22% 199 44%
FWTO1060 TOPS 71 0 495 0.36% 31 1.32% 216 44%
FWTO1061 TOPS 67 2 73 1.34% 115 0.76% 125 44%
FWTR0274 TROUSERS 30 0 150 0.01% 1 0.03% 5 45%
FWTS1277 TSHIRTS 106 0 962 0.33% 28 1.55% 254 46%
FWTS1278 TSHIRTS 128 1 439 0.76% 65 1.36% 223 48%

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FWTS1279 TSHIRTS 125 1 120 1.66% 142 0.83% 136 48%


FWTS1280 TSHIRTS 133 1 112 1.78% 153 0.79% 129 49%
FWTS1284 TSHIRTS 102 2 71 1.95% 167 0.71% 116 51%
FWTS1285 TSHIRTS 99 1 137 1.40% 120 1.02% 166 51%
FWTS1286 TSHIRTS 99 1 120 1.50% 129 0.95% 156 51%
FWTS1288 TSHIRTS 30 0 285 0.02% 2 0.12% 19 52%
FWTS1295 TSHIRTS 44 0 286 0.02% 2 0.08% 13 52%
FWTS1297 TSHIRTS 67 2 29 1.22% 105 0.28% 45 53%
FWTS1298 TSHIRTS 66 1 69 0.91% 78 0.50% 82 54%
FWTS1299 TSHIRTS 65 1 69 1.06% 91 0.59% 97 54%
FWTS1300 TSHIRTS 79 1 185 0.85% 73 1.05% 171 54%
FWTS1301 TSHIRTS 46 1 53 0.38% 33 0.23% 38 56%
FWTS1302 TSHIRTS 62 1 154 0.82% 70 1.06% 174 59%
FWTS1303 TSHIRTS 30 0 223 0.14% 12 0.54% 89 61%
FWTS1304 TSHIRTS 67 1 140 0.99% 85 1.08% 177 63%
FWTS1305 TSHIRTS 77 1 338 0.54% 46 1.24% 202 64%
FWTS1306 TSHIRTS 77 1 381 0.48% 41 1.24% 203 66%
FWTS1307 TSHIRTS 83 2 22 2.26% 194 0.31% 51 68%
FWTS1308 TSHIRTS 44 0 350 0.23% 20 0.97% 159 69%
FWTS1309 TSHIRTS 65 1 107 1.07% 92 0.92% 151 70%
FWTS1310 TSHIRTS 18 0 319 0.08% 7 0.76% 124 71%
FWTS1311 TSHIRTS 66 1 200 0.77% 66 1.22% 200 75%
FWTS1312 TSHIRTS 69 3 38 2.03% 174 0.59% 97 79%
FWTS1313 TSHIRTS 67 1 243 0.66% 57 1.27% 207 80%
FWTS1316 TSHIRTS 61 1 217 0.63% 54 1.17% 192 90%

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Checking on footwear arrival in EBO's during EOSS


A planner also has to ensure that the stock reaches the store at the right time. Before EOSS,
stocks for footwear had to be reached in the respective EBO's. I was in charge of calling up
the 30 stores in the country to understand the following details:
 Whether the stock for footwear was received or not.
 Date when it was received.
 Quantity that was received.
 Any old stock that was left in the season.
 Performance of footwear in the respective stores.
 Any remarks about the footwear.

The stores had to send the photos of the footwear and how they had displayed it in their
stores. Presentation was made of the photos sent by the store managers. Out of 30 stores, only
3 stores had not received the footwear stock.

OBSERVATION:

 Majority of the stores had received their stock


 Majority of the stores still had their old stock left and unsold.
 The sales performance of footwear was 2%-3%
 Remarks:
Lot of stores had their remarks on footwear that size 6,7 which was the fastest
selling size was not replenished.
White sneakers were good selling but variety was needed.
Fixtures were not given to display the footwear.
Colour fading issues in flipflops.

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Review of Core T-shirts and their reasons of Non-performance:


As a planner, it is very important to find out if a particular style code or codes are not
working well in the market. I was given 5 style codes and their reasons for low performance
in SS18 season. These were core t-shirts priced at MRP 699. Style codes:
FMTS9655
FMTS9656
FMTS9657
FMTS9659
FMTS9660
OBSERVATION:
Store calling was assigned for 30 stores.
Round neck T-shirts were moving faster than V-neck. V-neck style T-shirts for men
was less demanded in the market.
The demand of All over Print in T-shirts is increasing. Solid colours had become main
stream.
Stock was not replenished and only size XXL was available.
Core T-shirts are not on discount. During EOSS, customers chose to pick up the
merchandise from the sale.
FMTS9657 was the slowest mover amongst the other stock because of its colour. It is
orange in colour and was not liked by most of the customers.

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Analysis of 50 stores sales performance and suggesting corrective


measures for next season.
I was given the task of calling up 50 stores all over India and finding out answers for a few
questions as mentioned by my mentor. Corrective suggestions was to be given for the
betterment of the sales performance.
Questions to be asked to the store manager:
How much is the target achievement for the last month (Month of May)
Category which was slow moving
Women's wear performance
Accessories performance.
Is the conversion rate above 60%?
Is the ATV above 4000?
Competitors
Offer running in the month of June

OBSERVATION:
Out of 50 stores, 18 stores did achieved their sales target in the month of May
There was footfall issue due to Ramzaan in the month of May.
Due to harsh weather in the northern part of the country, stores in Jaipur and Kota
faced severe footfall issues.
There was no promotional Offer running during the month of May.
All the stores had offer running of Shop for 8000 and get 2000 worth merchandise
free.
Women's wear performance was only 7-8% on average.
Branding of women's wear was done less inside the store.
Accessories: 5%
Their main competitor in the market was Levis, Lee and Pepe Jeans.
The competitors performed better in the month of May because of their offers
running. Levis had offer "Buy 1 get second at 50% off". Lee had offer "Buy 2 get 1 free"
and Pepe Jeans had " Buy 1 get 1 free"
In Men's category Joggers and F2000 t-shirts were slow moving. Check prints in blue
colour was slow moving.

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Stores located in the northern part of the country had issues in selling dark colour
shirts and T-shirts.
Accessories contribution: 5%
Only 12 stores had conversion rate of more than 60% and ATV more than 4000
Blue Label Denim was selling the best in Men's category.
F2000 Shirts had good sales performance.
In combined stores with U.S.Polo and Ed hardy, customers were more inclined to
shop from U.S.Polo. For Women's wear customers preferred to shop from Ed Hardy.
Printed Denim was the slowest mover in denims for men's wear.

SUGGESTIONS:
The company should release their old stock every month and put some promotional
offer with it. This would help in moving out the old stock as well as new stock.
For Women's wear not all categories should be sent across all the stores. For example:
Stores of Kota, Jaipur and Jodhpur needed tops and T-shirts of full length rather than
dresses and crop tops. Similarly in small cities like Vizag and Kochi the dresses and
crop tops were not moving due to the lifestyle of the customers. Therefore proper
allocation of stock can be done in the other stores like Mumbai, Delhi, Chandigarh
etc. where customers demand for such merchandise.
In SS18 season, Printed denims were the slowest movers in all the stores. The design
team should take care of this and not come up with this range again.
Check shirts were slow moving as compared to Printed shirts this season. Next season
variation in more of printed shirts (floral) should come.
Lot of Blue colour was used in shirts. Brighter colours like Yellow and Red are more
demanded in the market.
Quality of T-shirts with the price range 699-799 must improve.
Colour Bleeding Issues in shirts must have a check on it next season.
In Accessories, Bags are the slowest mover due to the price range. Also, there are
only bagpacks. There should be an affordable range for bags along with variety in it.
Branding of Women's wear needs to strengthen for Flying Machine. There should be
more exciting promotional offers for this section.
In combined stores, the store managers needs to be trained for more persuasive skills
to attract the customers for Flying Machine first. The store should come up with better

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competing offers in the store and should ensure the inventories are stacked up just like
the other brands in the store.
In the north side, more of party wear and bright colours of merchandise should be sent
as compared to the south side.

STORE VISITS:
For better understanding of the brand and the merchandise I visited a few EBO's and key
accounts. I was asked to study the store and ensure that the brand communicated well with the
customers. A few observations that I was asked to make:
Average Monthly Sales
Price Point best working in each category
VM done in the store
Overall discounting in the store
Offer which was best during the season
Women's wear contribution
Merchandise study
SS18 sales contribution vs. AW18
Average Basket Size
Conversion Rate
Average footfall
Area of the store
Option counting in each category
EBO'S visited:
Flying Machine: Brigade Road
Flying Machine: Indiranagar 100 ft.road
Flying Machine: Mantri mall
Flying Machine: Phoenix Mall
Flying Machine: Orion Mall
Flying Machine: Brigade Road (Combined Store)
Key Accounts visited:
Central Mall: Bellandur
Lifestyle: Mantri Mall
Central: Orion
Shoppers Stop: Orion

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MBO Channel: (T2 Channel)


BRAND FACTORY (LIQUIDATION CHANNEL)
OVERALL OBSERVATION:
Average Monthly Sales for flying Machine: 8-10lacs a month
Overall Discounting during the season: 32%
Area of the stores: 900-1100 sq.ft.
Average footfall in a month: 300-400
Conversion rate of the stores: 55%-60%
Offer best during the season: Shop for 5000 get 5000 rupees merchandise free
Average Basket size: 2.5-3.0

MERCHANDISE STUDY:
Flying Machine has various range of collection catering to different tastes for the customers.
Their sub categories are:
Men's wear:

These collections never


Core have discounts and are
present in every season

These are premium


Blue Label
range of denim

They are seasonal


Fashion
Merchandise

Denim

These are "speed to


Flash
market" range

Japanese designed jeans


KOJIMA
of premium quality

F2000 Party wear collection

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ARVIND LIFESTYLE BRANDS LTD. - FLYING MACHINE

F2000 Party wear collection

Blue Label Premium Quality

Shirts
Basic shirts which does
CORE not have any discounts
throughout the season

Fashion Seasonal Merchandise

F2000 Party wear collection

Blue Label Premium Quality

T-Shirts
Basic shirts which does
CORE not have any discounts
throughout the season

Fashion Seasonal Merchandise

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Women's wear:

Women's
wear

Shirts T-shirts Tops Dresses Shorts Jeans

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CHAPTER V

GLOSSARY FOR PLANNERS:


 EBO: Exclusive Brand Outlet
 MBO: Multi-brand Outlet
 STR: Sell through rate
 CVR: Cover Days
 ROS: Rate on sales
 PI: Performance Index
 OSM: Old stock merchandise
 OBD: Out Bound Delivery
 OTB: Open to Buy
 ARS: Automatic Replenishment System
 RTV: Return To Vendor
 TD: Trading Days
 SOR: Sale or Return
 SOH: Stock on Hand
 GRN: Good Received Note
 SMS: Slow moving stock
 FMS: Fast moving stock
 PR QTY: Purchase Requisition Quantity
 EOSS: End of Season Sale

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REFERENCES:

http://www.arvind.com/. (2018, June). Retrieved from www.arvind.com: http://www.arvind.com/

https://flyingmachine.nnnow.com/. (2018, July). Retrieved from flyingmachine.nnnow.com:


https://flyingmachine.nnnow.com/

Department of FMS May-July 2018 Page 80

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