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Arvind New Int Report PDF
Arvind New Int Report PDF
Arvind New Int Report PDF
- FLYING MACHINE
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.
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.
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.
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.
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.
Aeropostale
GANT
Nautica
UNLIMITED
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)
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
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
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
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
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.
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
FLYING MACHINE
VISUAL
OPERATIONS MARKETING
PLANNING TEAM PRODUCT TEAM MERCHANDISING DESIGN TEAM
TEAM TEAM
TEAM
Chapter II:
DEPARTMENT STUDIES
OF FLYING MACHINE
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.
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.
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
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.
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.
The planning team of Flying Machine has 7 members playing a key functional role for the
brand.
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)
SEASON START
BUY PLANS
OBD
COMMERCIAL
APPROVALS
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.
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.
Forward Planning
Post season Review
In-season Planning
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.
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.
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.
1 My Selection 4
Generate Layout
2
5
Logging In
Login Name:
4. Upload Status
5. Export Status
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.
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).
1. Upload Operations
Use various icons as marked below to run the common filtering, sorting, grouping and reset
operations:
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.
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.
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.
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.
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.
Sl
Activity Responsible
No
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
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
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
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.
SPEC SHEET
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.
Making Visual changes like adding the brand ambassador's picture with
the new merchandise
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
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.
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)
Mood Board
Inspiration Board
Sillhouttes
Trims to be used
Washes if any
Developing Prints
Deciding Threads
Wash Developments
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.
Inventory
Analysis
Cost
Management
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
Instagram Page
Twitter Page
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.
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.
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
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
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.
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.
Gatepass is made
OBD is released
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
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.
CHAPTER III:
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.
SELL
THROUGH
RATE %
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
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
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
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.
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.
CHAPTER IV
LEARNINGS
WITH THE
PLANNING TEAM
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%
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%
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:
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.
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
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
MERCHANDISE STUDY:
Flying Machine has various range of collection catering to different tastes for the customers.
Their sub categories are:
Men's wear:
Denim
Shirts
Basic shirts which does
CORE not have any discounts
throughout the season
T-Shirts
Basic shirts which does
CORE not have any discounts
throughout the season
Women's wear:
Women's
wear
CHAPTER V
REFERENCES: