National Institute of Fshion Technology

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION TO INDIAN RETAIL INDUSTRY..........................................8
1.1. INDIAN RETAIL INDUSTRY............................................................................................8
1.2. VALUE RETAILING.........................................................................................................12
1.3. KIDSWEAR MARKET......................................................................................................13
CHAPTER 2: COMPANY PROFILE...........................................................................................17
2.1. V-MART RETAIL LIMITED............................................................................................17
2.2. MARKETING STRATEGY OF V-MART RETAIL LIMITED.......................................29
2.4. CORPORATE SOCIAL RESPONSIBILITIES ACTIVITIES..........................................32
2.5. OMNICHANNEL STRATEGY.........................................................................................34
2.6. GLIMPSES OF 2018: V-MART RETAIL LIMITED........................................................36
NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 1

2.7. ROAD AHEAD – ‘LAKSHYA 2019’................................................................................36
CHAPTER 3: ORGANISATIONAL STRUCTURE....................................................................38
3.1. BOARD OF DIRECTORS.................................................................................................38
3.2. SENIOR LEADERSHIP TEAM........................................................................................38
CHAPTER 4: FUNCTIONS OF VARIOUS DEPARTMENTS...................................................41
4.1. MERCHANDISING DEPARTMENT...............................................................................41
4.2. MARKETING DEPARTMENT.........................................................................................54
4.3. HUMAN RESOURCE DEPARTMENT............................................................................55
4.4. FINANCE DEPARTMENT...............................................................................................57
4.5. VISUAL MERCHANDISING DEPARTMENT................................................................59
CHAPTER 5: KIDSWEAR DIVISION........................................................................................61
CHAPTER 6: PROJECT UNDERTAEKN...................................................................................71
6.1. TOPIC OF THE PROJECT................................................................................................71
6.2. OBJECTIVE OF THE PROJECT.......................................................................................71
6.3. RESEARCH METHODOLOGY........................................................................................71
6.4. RESEARCH DESIGN........................................................................................................72
6.5. LITERATURE REVIEW...................................................................................................75
6.6. ABOUT: FAB BLU’19 CAMPAIGN...............................................................................85
“UNDERSTANDING BUYING PROCESS AND DEVELOPING FAB BLU’19

ASSORTMENT MIX FOR KIDSWEAR CATEGORY (GIRLS DIVISION)”.......................88
Kidswear category – GIRLS..................................................................................................88
Step 1: Open-to-buy (O-T-B) working – Girls Division.......................................................88
Step 2: Developing Assortment mix and quantity plan..........................................................89
Step 3: Vendor selection.........................................................................................................91
Step 4: Order Placement.........................................................................................................93

Step 5: Pre-production samples and approval........................................................................94
Step 6: Goods receiving date..................................................................................................98
CHAPTER 7: KEY FINDINGS....................................................................................................99
7.1. FAB BLU’19 TRACKER TILL APRIL 19........................................................................99
7.2. VISUAL MERCHANDISING DISPLAY PLAN – FAB BLU’19..................................100
CHAPTER 8: REFERENCES.....................................................................................................103
INDEX OF FIGURE
Figure 1. Growth Drivers for Retail in India (IBEF, 2019).............................................................7

Figure 2. Growth Drivers of Kidswear Market (Gugnani & Bhrama, 2018)................................11
Figure 3. Journey of V-mart Retail Limited..................................................................................15
Figure 4. V-mart Retail Limited - Vision......................................................................................16
Figure 5. V-mart Retail Limited - Mission....................................................................................17
Figure 6. Business Segments of V-mart Retail Limited................................................................17
Figure 7. Product Categories under Apparel & Non-Apparel Segments.......................................18
Figure 8. Apparel & Non-Apparel Segments................................................................................20
Figure 9. V-mart Retail Limited - Store locations - Map View (V-mart, 2019)...........................22
Figure 10. Vendor Dedicated Portal..............................................................................................24
Figure 11. Vendor Portal: Shipment Tracking..............................................................................24

Figure 12. Marketing Mix of V-mart Retail Limited....................................................................26
Figure 13. Glimpses of Project Koshish (V-mart, 2019)...............................................................30
Figure 14. Glimpses of Project Readvantage................................................................................31
Figure 15. Glimpses of 2018.........................................................................................................33
Figure 16. Lakshya 2019...............................................................................................................34
Figure 17. Board of Directors........................................................................................................35
Figure 18. Senior Leadership Team...............................................................................................37
Figure 19. Merchandising Department..........................................................................................38
Figure 20. Apparel Category.........................................................................................................39
Figure 21. Non-Apparel Category.................................................................................................39
Figure 22. Open-to-buy Working..................................................................................................41
Figure 23. Buying Process at V-mart Retail Limited....................................................................43
Figure 24. Purchase order creation................................................................................................45
Figure 25. Check points for Pre-Production sample......................................................................46
Figure 26. Bar code & system generated purchase order..............................................................47
Figure 27. Allocation: functions....................................................................................................50
Figure 28. Marketing Flow............................................................................................................52
Figure 29. Finance functions.........................................................................................................55
Figure 30. VM – functions.............................................................................................................57
Figure 31. Kidswear division at V-mart........................................................................................59
Figure 32. Contribution of Kidswear division...............................................................................61
Figure 33. Merchandising Strategies.............................................................................................74
Figure 34. Range Plan Hierarchy...................................................................................................79
Figure 35. Buy mix - FAB BLU'19...............................................................................................87
Figure 36. Window display - FABBLU'19....................................................................................98
Figure 37. In store VM - FABBLU'19.........................................................................................101
Figure 38. FABBLU'19 Campaign shots.....................................................................................101

INDEX OF TABLES
Table 1. Total value of Apparel & Non-Apparel segments for the year 2019..............................24
Table 2. Private Label Brands of V-amrt Retail Limited..............................................................25
Table 3. Number of Stores.............................................................................................................28
Table 4. Number of Yet to be open Stores....................................................................................28
Table 5. O-T-B Budget for SS19...................................................................................................49
Table 6. Division, Article, Min & Max of MRP...........................................................................67
Table 7. Vendors List - GIRLS DIVISION...................................................................................70
Table 8. Departments - Girls Junior..............................................................................................70
Table 9. Departments - Girls Senior..............................................................................................71
Table 10. Departments - Girls Toddler..........................................................................................71
Table 11. ECO Article – Girls Division........................................................................................72

Table 12. Exclusive Article - Girls Division.................................................................................72
Table 13. NOOS Article - Girls Division......................................................................................72
Table 14. Premium Article - Girls Division..................................................................................73
Table 15. PROMO Article - Girls Division...................................................................................73
Table 16. REGULAR Article - Girls Division..............................................................................73
Table 17. Details of Fab blu'19 Campaign....................................................................................90
Table 18. Department, Article and MRP wise O-T-B...................................................................91
Table 19. Selected Vendors list.....................................................................................................96
Table 20. Order date and goods receiving date...........................................................................101
CHAPTER 1: INTRODUCTION TO INDIAN RETAIL INDUSTRY
1.1. INDIAN RETAIL INDUSTRY
Retail Industry
The Indian retail industry has developed as a standout amongst the most dominant and fast paced
organizations due to the section of a few new players. Absolute utilization is depended upon to
reach about US$ 3,600 billion by 2020 from US$ 1,824 billion out of 2017. It represents excess
of 10 percent of the country's Gross Domestic Product (GDP) and around 8% of the business.
India is the world's fifth-largest worldwide goal in the retail space.[ CITATION IBE19 \l 1033 ]
Retail Formats in India

 Mom and Pop Stores
These are little family-possessed organizations, which pitch a little accumulation of merchandise
to the clients. They are independently run and oblige little areas of the general public. These
stores are known for their exclusive expectations of client administration.
 Department Stores
Retail chains are general merchandisers. They offer to the clients mid-to top notch items. In spite
of the fact that they sell general merchandise, some retail chains sell just a chose line of items.
Models in India would incorporate stores like "West side" and "Way of life"- well known retail
establishments. "Central Brand.New" is likewise excellent case of Departmental store.
 Category Killers
Claim to fame stores are called category Killers. Category Killers are represented considerable
authority in their fields and offer one classification of items. Most well known instances of
Category Killers incorporate electronic stores like Best Buy and sports frill stores like Sports
Authority.
 Malls
A standout amongst the most famous and most visited retail arranges in India is the Malls. These
are the biggest retail position in India. Malls give everything that an individual needs to
purchase, all short of what one rooftop. From garments and accomplices to sustenance or films,
shopping centers give the majority of this, and that's just the beginning. Examples include
Spencer’s Plaza in Chennai, India, or the Forum Mall in Bangalore.
 Discount Stores
Discount stores are those that offer their items at a markdown, that is, at a lesser rate than the
greatest retail cost. This is for the most part done when there is extra stock left over towards the
finish of any season. Markdown stores sell their products at a diminished rate with a point of
illustration deal customers.
 Supermarkets

One of the other famous retail arranges in India is the markets. A market is a supermarket that
sells sustenance and family products. They are extensive, regularly self-administration and offer
a colossal assortment of items. Individuals head to markets when they have to stock up on
foodstuffs and different things. They give items to sensible costs, and of mid to high caliber.
 Hypermarkets
Like grocery stores, hypermarkets in India are a blend of general store and retail chain. These are
huge retailers that give a wide range of basic needs and general products. Saravana Stores in
Chennai, Big Bazaar and Reliance Fresh are hypermarkets that draw tremendous groups.
 Kiosks
Kiosks are box-like shops, which sell little and modest things like cigarettes, toffees, papers and
magazines, water parcels and here and there, tea and espresso. These are most ordinarily found
on each road in a city, and cook fundamentally to nearby occupants.[ CITATION IBE19 \l 1033 ]
Market Size
India's retail showcase is required to increment by 60 percent to reach US$ 1.1 trillion by 2020,
on the back of variables like rising salaries and way of life changes by white collar class and
expanded computerized network. Online retail deals are determined to develop at the rate of 31
percent year-on-year to reach US$ 32.70 billion of every 2018.
Extravagance market of India is relied upon to develop to US$ 30 billion before the finish of
2018 from US$ 23.8 billion 2017 bolstered by developing introduction of worldwide brands
among Indian youth and higher acquiring intensity of the privileged in level 2 and 3 urban
communities, as indicated by Assocham
Growth Drivers for retail in India

Figure 1. Growth Drivers for Retail in India[ CITATION IBE19 \l 1033 ]
Consumer Prefrences
 India’s per capita GDP increased to Rs 143,048 (US$ 1,982.65) in FY19 from Rs
129,901 (US$ 1,800.43) FY18.
 Indian consumers are now shifting more towards premium brands by paying more for
value and service.
Brand Consciousness
 Factors like young demographic composition, increasing personal disposable income,

more preference towards affordable luxury and rising middle class population are
developing preferences for specific brands.
Consumer Finance Opportunities

 Consumers have become more comfortable using online services due to demonetization.
 Online retail segment provides various credit and payment options driven by increasing
internet penetration, speed, and 24-hour accessibility and convenient and secured
transactions.
FDI Approvals
 Department for Promotion of Industry and Internal Trade (DPIIT) approved three foreign
direct investments (FDI), Mountain Trail Food, Kohler India Corporation, and Merlin
Entertainments India in the single brand retail sector.
 The DPIIT has approved two FDI proposals worth more than Rs 400 crore (US$ 62.45
million) within the retail sector.
Investments
 India’s retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18 million) in
2018. As of January 2019, Future Supply Chain Solutions will invest Rs 1,000 crore
(US$ 138.60 million) to set up India Food Grid with a network of 38 food distribution
centers.
 Beccos, a South Korean designer brand is set to enter the Indian market with an
investment of about Rs 1.00 billion (US$ 14.25 million) and open 50 stores by June 2019.
Road Ahead
E-commerce is extending relentlessly in the nation. Clients have the regularly expanding
selection of items at the most minimal rates. Internet business is likely making the greatest
transformation in the retail business, and this pattern would proceed in the years to come. India's
web based business industry is determined to reach US$ 53 billion by 2018. Retailers should use
the computerized retail channels (web based business), which would empower them to spend less
cash on land while connecting with more clients in level 2 and level 3 urban communities.

It is anticipated that by 2021 customary retail will hold a noteworthy offer of 75 percent,
composed retail offer will achieve 18 percent and web based business retail offer will achieve 7
percent of the all out retail showcase.
By the by, the long haul standpoint for the business is sure, upheld by rising salaries, great
socioeconomics, section of outside players, and expanding urbanization.
Conversion scale Used: INR 1 = US$ 0.0139 as on Q3 FY19
1.2. VALUE RETAILING
Interest for different clothing classifications fluctuates considerably the nation over. The urban
market that for the most part includes metro urban communities, for example, Delhi/NCR,
Mumbai, Bangalore, Chennai, and so forth. The greatest markets for attire in India and contribute
23 percent to the Indian clothing market. Considering the way that very nearly 70 percent of the
populace dwells in towns, the significant commitment of urban areas to the clothing market
shows the higher obtaining intensity of the general population in urban areas, their recurrence of
buys and propensity to buy premium and quality items. The metro urban communities house
practically all the enormous national and universal brands, driven by the all around educated and
utilized populace.
Numerous worldwide brands have begun entering into Tier - I and - II urban communities, while
household brands are likewise reinforcing their situation in these business sectors. Many retailers
and clothing brands have effectively settled themselves in smaller urban communities.
Value Retailing is a big format store idea, where marked items and adornments are sold under
best arrangements. This idea is for the most part arranged for the most part for II and III level
urban communities with the advancement of super investment funds offer. These urban areas
have great potential giving as yearning to the customers to purchase items, best case scenario
bargains. Value Retail locations offer items with a value sticker price. Additionally their
advancements take the pretense of value cuts, included complimentary gifts, off-names, included
limits enormous bill-sizes and some more.[ CITATION Fib18 \l 1033 ]

Growth of value Retailers
 10 years prior, an item that was sold in the market at a limited rate would stimulate
doubts in the purchasers' psyches in regards to its value. All the more regularly, these
sorts of items involved seconds, and rejected things.
 Be that as it may, this wonder took a total turn with the rise of significant worth retailing
idea. Clients like to benefit as much as possible from what these stores are putting forth
them. These items demonstrate to be sans deformity and furthermore given a shopping
background to clients that were like the high boulevards.
 Value Retailing give quality merchandise at inexpensive prices; items that are neither
seconds, nor rejected. While their fundamental stores hold supply of new product
coordinating with the ebb and flow seasons, the surplus stock offers route to this new
retail idea. Product are sold at these stores with round the year limits running somewhere
in the range of 20-80%.
 The inside of the store starts the customers to have a desire to claim a brand, and
furthermore give the capacity to get it. The main restrictions of these stores being, that
they depend on surplus stock, and sell stock that is a season old, however the majority of
the customers don't have any grumblings with respect to the equivalent. [ CITATION Fib18 \l
1033 ]
1.3. KIDSWEAR MARKET
The Kidswear section is one of the quickest developing fragments in the Indian attire advertise.
The Indian children wear showcase in 2016 was evaluated to be worth Rs 61,201 crore and
represented 21 percent of the all out attire market of the nation. It is relied upon to develop at a
CAGR of 10.5 percent to achieve Rs 1, 66,147 crore by 2026. With such market potential,
various national and universal players have entered this fragment. India, being one of the most
youthful countries on the planet with 29 percent of its populace under 14 years is a rewarding
business sector. Mindfulness about most recent Kidswear isn't just constrained to metro urban
communities however it is across the board among Tier - II and - III urban communities likewise
because of access to different media, for example, TVs, PDAs, motion pictures and so on. With
developing extra cash, introduction to worldwide style patterns and passageway of outside

brands in the nation – spending on Kidswear by Indian masses has expanded. [ CITATION Gug18 \l
1033 ]
Growth drivers of Kidswear Market
Change in family system and increased spending

on children
Growing Brand awareness among kids
Greater focus on Kidswear market by organized

player
Figure 2. Growth Drivers of Kidswear Market[ CITATION Gug18 \l 1033 ]

Urban India today is characterized by a nuclear family with double income parents who are
willing to spend extra higher share of their wallets on their children. Consequently the spending
on children’s apparel, with better brand image and quality has received a boost.
 Indian kids in both urban and semi-urban India are increasingly exposed to various media
and are thus aware about brands which cater to them. They have also started participating
actively in purchase decisions relating to their apparel.
 Organized retailers and brands have also contributed immensely to the growth of the
Kidswear market. Some of them have invested time and money in establishing brands
which target the requirements of children as well as parents. They have managed to
attract consumers through the right product assortment, better visual merchandising, and
focused advertising and promotional strategies.
Characteristics of Kidswear Market
 Although the branded Kidswear segment has recorded higher growth in recent years, it
still remains a largely unbranded market, with products sold mostly through unorganized
retail channels. The low average lifespan of children’s apparel, a result of the growing

height of children, has forced many value-conscious parents to hold back on spending on
children’s apparel, especially in the medium, economy and low-end of the market.
 However, market dynamics vary drastically in the premium and super-premium
categories. Brands are a very important decision-making criterion for parents and
children in these segments. In fact, some of the designers and retailers have even begun
catering to the demand for children’s bespoke apparel.
Boyswear & Girlswear Market
 The Indian Kidswear showcase is marginally skewed towards boy’s wear which
represents 51 percent of the all out Kidswear market. In 2016, boy’s wear was evaluated
to be worth Rs 31,552 crore and is relied upon to develop at a CAGR of 10.3 percent and
achieve Rs 84,678 crore by 2026.
 The different classifications among boy’s wear are shirts, denims, base wear, ethnic,
winter wear and garbs. Regalia, shirts and base wear are the overwhelming classes among
boy's wear. They together contribute around 78 percent of the complete boy's wear
market.
 Girl’s wear market, which represents remaining 49 percent of the Kidswear showcase,
includes base wear, ethnics, shirts, denims, dresses, winter wear and outfits. Like boy’s
wear, regalia are the ruling class among girl’s wear too. It is worth Rs 9,013 crore and is
required to develop at a CAGR of 11 percent to achieve Rs 25,591 crore by 2026.
 Another overwhelming classification in this fragment is ethnic wear, which contains 23
percent of the young lady's wear advertise. In any case, a noteworthy move has been
found in pattern among Girl’s wear as of late.
Conclusion
Despite the interesting growth story of the Kidswear segment, a lot remains to be achieved in this
market. The opportunities within the Kidswear market are definitely lucrative, but tapping these
requires well-formulated strategies and high levels of commitment. Brands and retailers also
have to ensure better penetration beyond urban pockets and cater to the price-sensitive children’s
segments in semi-urban and rural India. Some of the Kidswear brands have struggled in terms of
planning store expansions with adequate prudence and analysis and thus have been forced into
rolling back plans or have got entangled in high debt traps and unwarranted business litigations.
New entrants could shorten their own learning curve by learning from the challenges and
roadblocks faced by the early entrants as well as existing players. The ability of brands and
retailers to address the specific requirements of children as well as their parents and to offer
fashion solutions rather than mere products will be critical for their success. [ CITATION Gug18 \l
1033 ]
CHAPTER 2: COMPANY PROFILE

2.1. V-MART RETAIL LIMITED
V-Mart is a complete family fashion store that provides its customers true value for their money.
They offer their customers a great shopping experience each time they visit V-Mart store by
offering a vast range of products under one roof. Maintaining high standards in quality and
design, V-Mart offers fashion garments at down-to-earth prices and over a period of time has
emerged as the destination of choice for bargain hunters and the fashionable alike.
They primarily operate in tier II & tier III cities with the chain of “Value Retail” departmental
stores. Their stores cater to the needs of the entire family altogether by offering apparels, general
merchandise and kirana goods.
“Price less Fashion” is the main motto through which they believe in providing the latest trends
to the upwardly mobile Indians at the best possible price. They have 221 stores across 156 cities
in 15 states and union territories, with a total retail area of 1.5 Million sq. ft (139354.56 Sq
Metro). Their stores are located in prime states/cities such as Bihar, Chandigarh, Gujarat,
Haryana, Jammu and Kashmir, Madhya Pradesh, New Delhi, Punjab, Rajasthan, Uttarakhand
and Uttar Pradesh. They are among the pioneers in setting up modern ambiance stores or large

retail malls across various small towns and cities like including Sultanpur, Ujjain, Motihari and
more.[ CITATION Vma19 \l 1033 ]
Journey of V-mart Retail Limited
Figure 3. Journey of V-mart Retail Limited
 First incorporated as Varin Commercial Private Limited under the Companies Act in
2002 in West Bengal. Then in 2003, they opened their maiden store in Ahmedabad
(Gujarat).
 In the Year 2004 they opened their first store in capital city, New Delhi. Further in 2006
they crossed 1 lac sq.ft. Retail space and subsequently renamed to V-Mart Retail Private
Limited.
 In the year of 2008, they hit the base by registering V-Mart Retail as a public limited
entity and also crossed the turnover of 1,000 million INR. As the time passes by they

took the shape of a renowned family brand that caters the needs of whole family by
offering high quality retail products. Along with growing customers, they achieved a
turnover of over INR 2,000 million in 2011-12
 In the Year 2012 they have crossed the retail space of 5 lac Sq. Ft.
 In the Year 2013 IPO of 57,46,000 equity shares were issued
 In the Year 2014 they opened their 100th store.
 In the Year 2015 they crossed 10 lac sq ft retail areas. Further in 2016 they marked their
presence in 106 cities with 123 stores.
 In the Year 2017 they reached the milestone of 150 stores.
 In 2018 BLOOMBERG titled V-mart retail limited as “The world’s best performing
department store”
V-mart Retail Limited: VISION
Figure 4. V-mart Retail Limited - Vision

“Create value and make our ecosystem proud” To uphold and contribute to the realization of a
sustainable society by balancing our business activities with nature using the resources we have
in making a real and sustainable difference.
V-mart Retail limited: MISSION

Figure 5. V-mart Retail Limited - Mission
 V-mart Retail Limited Mission is to show care for Customer aspirations, discover and
nurture fresh talent, sustained ethical growth for Stakeholders and harness vendor
relationships.
 Commitment in maintaining a firm philosophy and conviction in enhancing the living
conditions of the society and environment around us.
Business Segments of V-mart Retail Limited
Figure 6. Business Segments of V-mart Retail Limited

Business Segments of V-mart Retail Limited can be divided into two major segments:
1. Apparel Segment:

 This segment comprises of – Kidswear, Ladies wear & Menswear
2. Non-Apparel Segment:
 This segment comprises of – Home mart, Lifestyle & Foot mart
Below given flow chart shows product categories under Apparel and Non-Apparel segments of
V-mart Retail Limited
Figure 7. Product Categories under Apparel & Non-Apparel Segments
Business Segments:
 V-mart Retail Limited business is divided into two segments, namely fashion (91% of
revenue mix) and kirana bazaar (9% of revenue mix), with the primary area of focus
being fashion. In its initial years,

 V-mart Retail Limited set up all its stores with the kirana bazaar format. The idea behind
this was to drive footfalls as kirana purchases are more frequent when compared with
apparel.
 Generally, any apparel business follows a standard pattern wherein the men’s segment
dominates the revenues followed by the women’s segment and then the kids’ segment.
With VRL having more of women’s western wear than Indian, its revenue mix is a tad
different with the men’s segment contributing 43%, followed by 31% contribution from
the kids’ segment and 26% from the women’s segment (considering the fact that most
VRL’s stores operate in Tier-II and Tier-III cities where women still prefer wearing
Indian clothes over western). 4%-5% of its sales come from the wedding wear segment.
Footwear accounts for 3% of VRL’s sales.[ CITATION Vma19 \l 1033 ]
DIVISION GROUP DIVISION TOTAL VALUE

APPAREL Boys 5210
Girls 3737
Infant 2855
Ladies 8921
Men 17409
APPAREL TOTAL 38132
NON APPAREL Home Mart 2891
Lifestyle 1202
Toys & Games 529
NON APPAREL TOTAL 4621
GRAND TOTAL 42752
The above table shows total value of apparels & non-apparels division for the year 2019, where
Table 1. Total value of Apparel & Non-Apparel segments for the year 2019.
Apparel division total value is 38132 lacs (89%) and Non-Apparels division accounts for 4621
lacs (11%).

Figure 8. Apparel & Non-Apparel Segments
Few major private labels of V-mart Retail Limited
Few major Private Label brands of V-mart Retail limited are as follows:
1. Kidswear Private Label

 Girlswear – Be Princess
 Boyswear – Twist, Twist Boys
 Infant wear- Kidistan
2. Womenswear Private Label
 Western Wear – Charcoal

 Ethnic Wear – Desi Mix
3. Menswear Private Label
 Casual Wear – Flick

 Formal Wear – J white
Presence of V-mart Retail Limited – Number of Stores
Figure 9. V-mart Retail Limited - Store locations - Map View[ CITATION Vma19 \l 1033 ]
Cluster-based Approach:

 VRL follows a cluster-based strategy wherein it opens a new store within a radius of
100km-150km of its existing stores.
 Cluster-based approach yields enhanced brand with a strong regional recall, better
understanding of regional fashion trend, higher inventory churn, less dead stock,
maximized regional advertisement spending and better human resource management.
 Uttar Pradesh (UP) and Bihar are the main clusters for VRL accounting for 62% of its
total store count. Out of total 135 stores, VRL has 56 stores in UP alone followed by 28
stores in Bihar.
Store classifications:
VRL has store formats that are designed keeping in mind all its consumers.
 V-Mart Aspire - Caters to the youth segment keeping in mind the latest fashion trends.
 V-Mart Plus - Caters to all age groups, basic as well as discretionary needs of customers,
with presence in highly populated areas having kids and senior citizens.
 V-Mart Corporate - Caters to office goers, the product line has been internally termed as
Gold Line Fashion where the population comprises working professionals.
 V-Mart Values - Caters to all age groups, cost-competitive quality products keeping in
mind the economic profile of the people in the region.
V-mart Retail limited has marked its presence in various regions like Bihar, Jharkhand, and
north-east, Uttar Pradesh, Madhya Pradesh, Punjab, west Bengal and many more.
Below given table shows various regions where V-mart Retail Limited is present and number of
stores in each region
Region Number of Stores

BIHAR 43
DELHI NCR 10
GUJARAT/RAJSTHAN 10
HIMACHAL PRADESH 1
HP (PB & JK) 2
JHARKHAND 18
MADHYA PRADESH 7
Table 3. Number of Stores
NORTH EAST 9
ODISHA 10
PUN/JK
NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 24 10
UTTAR PRADESH 88
WEST BENGAL 13
TOTAL 221
Yet to be open Stores:
Below table shows list of regions and number of stores in each region which are yet to be open
Region Yet to be open Stores

BIHAR 3 1
JHK2 1
NE 2
UP3 1
BIHAR 1 1
BIHAR 3 1
DELHI NCR 1
Himachal Pradesh 1
HP (PB & JK) 1
JHK1 1
NE 1
PUN, J&K (Tentative) 1
PUN/JK 1
UP2 1
UP6 2
WB 2
TOTAL 19
Table 4. Number of Yet to be open Stores
Vendor Management at V-mart Retail Limited
VRL has launched a vendor-dedicated portal to enhance vendor-centric merchandise visibility

across each store.

Figure 10. Vendor Dedicated Portal
 In a business-strengthening initiative, VRL has launched a vendor-dedicated portal to

enhance vendor-centric merchandise visibility across each store.
 The information, available at the click of a button, makes it possible for vendors to take
proactive calls in re-pricing their stock to accelerate sales flow
 Besides stock movement-generated leads regarding which vendors should deliver and
when their next consignment to the centralized warehouse facility (neither overstocking
nor stocking out), resulting in a better warehouse space efficiency.
 The number of vendors currently stands at 700.
Figure 11. Vendor Portal: Shipment Tracking

Inventory Management
Inventory management is one of the key parameters that make or break a retail business. As
changing fashion trend can lead to inventory erosion, the cluster-based approach helps VRL in
inter-store stock movement and easy stock rotation from its stores. Being entirely focused on
Tier-II and Tier-III cities, VRL easily rotates out-of-fashion stock within the vicinity of nearby
stores as semi-urban areas tend to catch up with the changing fashion trend at a slower pace
compared to Tier-I cities. The company has effectively reduced its inventory days from 111 days
to 91 days.
IT Infrastructure, systems and processes

VRL has strong focus on systems and processes. It invests ~Rs100mn per year on technology. It
uses a software called ‘GINESYS’, which fulfils all business requirements right from sourcing,
making payment to vendors, understanding the requirement of supply chain, maintaining
customer database, and last but not the least managing the accounts by using complete ERP
solution. It also uses software called ‘ORACLE DISCOVER’ which is an efficient tool for
comprehensive analysis of data pertaining to operations of the company which enables the
management to exercise control over the stores, supply chain and financial management. In
addition, management information system (MIS) appraises the management on critical areas
relating to operations of the company at regular intervals.
Customer database
VRL currently has a database of about 9mn customers which helps it to track customer purchases
and preferences. Out of all the customers who make purchases at its stores, VRL manages to
obtain phone numbers from 50% of them while the rest do not share their phone numbers.
Cost Structure
VRL is one of the most efficient players in Indian retail Industry with a lean cost structure. As
most VRL’s stores are located in Tier-II and Tier-III cities, its lease rentals are lower at
Rs30/sq.ft/month. VRL’s lease rentals, at 4.9% of sales, are much lower compared to
7.5%/8.8%/10.7% of Trent or TL/Shoppers’ Stop or SSL/Aditya Birla Fashion Retail or ABFRL,
respectively, on a standalone basis. Similarly, its employee costs stand at 7.7% compared to

8.8%/7.2%/9.8% in case of TL/SSL/ABFRL, respectively. Operating margin of VRL stands at
7.7% compared to 10.9%/6.9%/6.7% of TL/SSL/ABFRL, respectively.[ CITATION Aro18 \l 1033 ]
2.2. MARKETING STRATEGY OF V-MART RETAIL LIMITED
The Various Marketing Strategies Adopted By V-Mart Are:
 Regional Cluster Based Expansion And Penetration

 Enhancing Brand Visibility
 Understanding Customer Preferences
 Better Utilization Of Human Resources
 Effective Implementation Of Marketing Activities
 PROMOTIONAL EVENTS –Free Eye Checkup, Blood Donation Campaign.
 Dedicated Focus Towards Increasing Same Store Sales Growth.
 Cross Promotion Through “Intelligent Marketing”
 Increase in Customer Loyalty.
 Continue To Invest In IT Infrastructure.
 Foray Into E-Commerce And Start Our Online Retail Portal.
 Continue To Provide Training To Our Employees And Invest In Human Capital.

Figure 12. Marketing Mix of V-mart Retail Limited
Product
A product is an item that satisfies a need or a desire. This can be a physical item, a service or a
virtual offering. It is produced at a cost and is subsequently made available to the right audience
at a price. Whatever the nature of the product, it will follow a lifecycle and through reasonable
predictions of this lifecycle, a company can increase its competitive edge.[ CITATION Kot12 \l
1033 ]
 V- Mart offers a wide range of products which starts from apparels to food items,
footwear to home furnishing, child care products to toys, watches, drinks etc.
 In pursuance of their business plan to diversify their portfolio of offerings, FMCG
products play a key role.
 FMCG products are usually meant to fulfill the daily needs of consumers and therefore,
V- Mart believe retailing of FMCG products will bring customers to their stores on a
frequent basis and this may in-turn lead to consumption of their apparels.
Price
A price is the quantity of payment or compensation given by one party to another in return for
one unit of goods or services. A price is influenced by both production costs and demand for the

product. A price may be determined by a monopolist or may be imposed on the firm by market
conditions.[ CITATION Kot12 \l 1033 ]
 V- Mart promises its consumers Price less fashion. The concept of psychological
discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool.
 V- Mart also caters on Special Festival Pricing (Diwali, Christmas, and New Year etc.).
Selling combo- packs and offering discount to customers. The combo-packs they add
value to customer and through bundling, they reduce the price of the products.
 The efforts of V-Mart retail business are targeted towards “lower middle” and “middle”
income groups. V-Mart follows uniform pricing policy across their stores in respect of
private labels and non-branded products sold by them.
 In relation to the other products, the prices may vary between stores on account of state-
specific taxation and vendor policies.
Place
Goods are produced to be sold to the consumers. They must be made available to the consumers
at a place where they can conveniently make purchase. The organization has to decide whether to
sell directly to the retailer or through the distributors/wholesaler etc. It can even plan to sell it
directly to consumers.
 V-Mart stores are located in 156 cities and 15 states and union territories. V-MART has
presence in almost all the major Indian cities. They are aggressive on their expansion
plans.
 V-mart Retail limited targets cities with urban population of 1 million people or above or
can be classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens retail
outlets on the outskirts, rather than the prime area. They recently entered into Tier-4 cities
also.
 Company overcome competition to some extent due to its first mover advantage (as
competitors have relatively less space in tier-2 and tier-3 cities) and helps to lower rental
costs.

Promotion
Promotion is an important part of marketing mix as it refers to a process of informing,
persuading and influencing a consumer to make choice of the product to be bought. Promotion is
done through means of personal selling, advertising, publicity and sales promotion. It is done
with a view to provide information to prospective consumers about the availability, features and
uses of a product. It stimulates potential consumer’s interest in the product, compare it with
competitors’ product and make right choice.
 V-Mart advertisements are mainly seen in print media i.e. newspapers, Television with
in advertisement, and sometime road-side billboards.
 V-Mart category management system is used to plan promotional schemes. They launch
promotional schemes weekly. Apart from general sales promotion, the category manager
formulates promotional plans for ‘slow movers’.
 In addition, to promote sales, they focus on layout of the stores and positioning,
presentation and display of merchandise, in order to attract customers and increase
footfalls.
 V -mart unveiled campaign with Ayushmann Khurrana and Bhumi Pednekar as Brand
Ambassadors - This campaign was first major branding exercise to create brand
differentiation and recall amongst the consumers, has been designed by Dentsu Impact.
[ CITATION Exc18 \l 1033 ]
2.4. CORPORATE SOCIAL RESPONSIBILITIES ACTIVITIES

Corporate social responsibility (CSR) is how companies manage their business processes to
produce an overall positive impact on society. It covers sustainability, social impact and ethics,
and done correctly should be about core business – how companies make their money – not just
add-on extras such as philanthropy[ CITATION Bak04 \l 1033 ].
To grow business and achieve long-term success, V-mart Retail Limited aims at adding value to
life while acting responsibly towards the environment and the communities they are a part of.
CSR activities initiated by V-mart retail limited are as follows:

Saksham
“V-Mart to sell products for visually challenged persons on no-profit, no-loss basis across
its stores”
 V-mart retail limited joined hands with Saksham Charitable Trust to make available
Braille and other assistive & utility items across its stores on no-profit, no-loss basis to
empower visually challenged persons.
 A wide range of assistive and utility products including Braille watches, Talking items,
Low vision items, Canes, Braille learning device, Writing frames device,
Math’s/Geometry items, Games, Stylus, Computer/Daisy books reading & recording
devices, Audio described films, Nuance talks software for mobile/Screen software for
computer and other items will be made available at V-Mart stores across India.
Project Koshish
 On 26th January, 2017 an underprivileged professional football programme has been

initiated to develop the underprivileged kids into professional footballers with an aim to
develop a livelihood and instill a positive effect in the community using football as a
development tool.
 Under this program, these children undergo rigorous training to play at various Local,
National and International Football Tournaments. Regular monitoring on their skills,
energy, strength and stamina is tested.
 V-mart’s vision is to provide a 360 degree holistic platform for underprivileged talented
footballers both boys and girls, who will get an opportunity to get trained and play for the
Indian National as well as International Teams.[ CITATION Vma19 \l 1033 ]

Figure 13. Glimpses of Project Koshish[ CITATION Vma19 \l 1033 ]
Project Readvantage
 V-Mart in association with Stones2Milestones started a program called Project

Readvantage wherein they focused on enabling the skill to make English reading easy &
enjoyable.
 The responsibility is identifying the cluster of schools & enable them as ‘raise a happy
reader’ by gifting each one of them the ‘skill & will to read’, which is the foundation for
kids to learn English as a language.[ CITATION Vma19 \l 1033 ]

Figure 14. Glimpses of Project Readvantage
2.5. OMNICHANNEL STRATEGY
Omni channel is a multichannel approach to sales that seeks to provide customers with a

seamless shopping experience, whether they're shopping online from a desktop or mobile device,
by telephone, or in a brick-and-mortar store. An Omni channel approach means there's
integration between distribution, promotion and communication channels on the back end.
[ CITATION Tec18 \l 1033 ]
V-mart Retail Limited – Omnichannel Strategy

 Value retailer V-Mart Retail, which primarily operates in smaller towns, is formulating a
Omni-channel (offline and online retail) strategy to expand business and reach its
customers. The company is also looking at investing Rs 100 crore in 2019 to open new
stores and setting up a new warehouse.
 V-Mart primarily operates in tier II, tier III and tier IV cities and follows a cluster-based
model approach to expand and has a set a target to invest Rs 300 crore to double store
count and treble its turnover to Rs 3,500 crore in the next five years.
 "We are considering an Omni-channel strategy and plan to get into online retail to
reach our customers. It may happen by end of next year ," - Lalit Agarwal (Chairman
& Managing Director) [ CITATION Eco18 \l 1033 ]

2.6. GLIMPSES OF 2018: V-MART RETAIL LIMITED
Figure 15. Glimpses of 2018

Above Figure shows achievements of V-mart Retail Limited in the year 2018 in terms of
customer footfall, opening of new stores, addition of retail sq.ft area, bills generation and sales
growth in the year 2018.
2.7. ROAD AHEAD – ‘LAKSHYA 2019’
Below figure shows V-mart’s road ahead for the year 2019, which are mentioned below:
 V-mart retail limited is looking up at setting up new warehouse in the year 2019 to
service their stores. It may come up either at Uttar Pradesh or at Bihar.
 V-mart retail limited also aims at 75 new store openings (NSO) at different regions.

 V-mart Retail sales target for the year 2019 is 2050 Cr. (2000 Cr. from offline channel
and 50 Cr. From online channel)
 Target for Store EBITDA is @15%
 Value retailer V-Mart Retail, which primarily operates in smaller towns, is formulating
an Omni-channel (offline and online retail) strategy to expand business and reach its
customers.[ CITATION Eco18 \l 1033 ]
Figure 16. Lakshya 2019

CHAPTER 3: ORGANISATIONAL STRUCTURE
3.1. BOARD OF DIRECTORS
Figure 17. Board of Directors
3.2. SENIOR LEADERSHIP TEAM

V-mart Retail Limited’s senior leadership team comprises of:
Chief Operating Officer (COO), Chief Finance officer (CFO), President – Sourcing &
Procurement, Sr. Vice President – Operations & Marketing, Vice President - Planning and

Supply Chain, Vice President – Store Operations, Vice President – Supply Chain Management &
FMCG, Head, Skill Development Initiative, Vice President, Strategy and Corporate
Communication & AVP – Human Resources

Figure 18. Senior Leadership Team

CHAPTER 4: FUNCTIONS OF VARIOUS DEPARTMENTS
4.1. MERCHANDISING DEPARTMENT
There are various departments in V-mart retail limited which have to work in well-coordinated
way to make sure the process flow in smooth and in time.
In V-mart Retail Limited, Merchandising department comprises of three sub-departments:
1. Planning Department
2. Buying Department
3. Allocation Department
Figure 19. Merchandising Department

Merchandise Category
APPAREL CATEGORY
Figure 20. Apparel Category
NON-APPAREL CATEGORY
Figure 21. Non-Apparel Category

P LANNING
Planning department main function is to evaluate what kind of product is to be brought and how
it should be priced, promoted and placed so that customer is attracted towards the product.
CMD of V-mart Retail limited decides the budget for a particular financial year. CMD and CFO
allocate that budget into different category.
Planning department determine budget for every season. This budget is in the form of O-T-B
(Open-to-buy) and it is planned 3 months before starting of the season. This buying budget is
distributed into whole season month wise. For example, budget for spring summer season is
divided month wise (January-June) Open-to-buy.
In V-mart Retail limited, Planning team is responsible for planning budgets for both buying team
and Allocation team.
Planning team determine budget for different seasons in a financial year. In V-mart retail limited
they plan for:
Spring summer, summer, Autumn & Winter

For planning next year budget, planning team takes into account historical data + current year
performance
O-T-B WORKING
Figure 22. Open-to-buy Working
For determining open-to-buy planning team takes into consideration following factors:
Forward Sale Cover:
 It allows a planner to think about their inventory across time and is essential to
effectively managing inventory levels.

 FWOS is calculated as the number of weeks of planned sales from the next week
forward that the current inventory value represents.
 When FWOS is entered in a plan, it will calculate the ending period inventory
(EOP) by counting the forward number of weeks of sales and summing the value
to calculate the required ending inventory.
 Planned sales trends are the driving factor when using FWOS. Inventory levels
are planned to meet future sales and the potential for overstock situations is
diminished. FWOS puts the focus on maximizing the return on the inventory
investment by linking inventory levels directly to planned sales.
Inventory:
 Stock- on-hand: It is the total amount of any given item that you currently have
in your warehouse, regardless of whether it is available for use or sale. It includes
unallocated as well as allocated stock.
 Pending Purchase orders: The Pending Purchase Orders report will display the
details of all the Purchase Orders raised with a party, which are not in closed
state.
 O-T-B: OTB is essentially the difference between how much inventory is needed
and how much is actually available. This includes physical inventory on hand, in
transit, and any outstanding orders.
B UYING
As soon as planning of upcoming season is done, buying process starts.
Buyers will have fixed budget under which they have to buy cloths of each merchandise
category. As per plan, sell through analysis and trend which is identified by buyer will make his
mind for certain options which has to be purchase because those options where fast moving in
previous seasons. Also buyers do grading while they are buying, they grade each merchandise
category into grade A, grade B, grade C, grade D. As soon as options in each merchandise
category are bought, number of pieces to buy and where to deliver list is supplied to vendors by
the buyer provided buyer gives information of design, style code, MRP, collection, product,
month to be supplied, fit, sleeves, category, how much to supply etc.
Figure 23. Buying Process at V-mart Retail Limited
1. Budget Preparation: Buying budget is derived by planning team for every season. This
budget is in the form of O-T-B (Open-to-buy) and it is planned 3 months before starting of
season. This budget is derived considering factors like number of new stores opening & previous

year data. Additional O-T-B is given for festive season. This buying budget is distributed into
whole season month wise. For example, budget for spring summer season is divided and
distributed into month wise (January-June) budget or Open-to-buy (O-T-B).
SYSTEM OTB As On Date 07th Jan-2019
FINAL OTB JAN To JUN-2019
SS19 OTB Initial
Division Group JAN FEB MA AP MA JU Total

R R Y N
G.Total 6702 7592 8730 780 6573 535 4275

2 5 2
S.TotaL 6256 6978 7919 691 5720 434 3813

5 3 2
Apparels 10 11.4 10.8 6. 5.8 4. 49.

.31 8 6 50 6 11 13
Apparel 16 14.5 15.6 7. 3.7 3. 61.

.11 3 1 90 6 64 55
Apparel 12.2 11.6 8. 6.8 5. 52.

7.70 5 2 84 5 68 94
Table 5. O-T-B Budget for SS19

2. Buying Plan: Once the budget is finally decided by the planning team, buying team on the
basis of budget proceeds with preparation of buying plan of their respective divisions and
departments. Basically they plan for option allocation, assortment mix, MRP/RSP, Vendors etc.
3. Vendor Selection: Vendor selection is done on the basis on Sell-through analysis of

respective vendors.
4. Sample presentation & Sample development: Vendor can present samples to buyers either
at head office or at factory visits. A buyer also coordinates with designer and instructs vendors to
develop some new samples as per the ongoing fashion trends.

5. Design Selection: After sample presentation by vendors, buyers select designs from presented
samples.
6. Matching Designs with options: Once the designs are selected by the buyers, designs are
then matched against planned options and final selection is done.
7. Creation of manual purchase order (PO): Once the design is finally selected buyers then
proceeds with creation of manual purchase order wherein they give details of selected styles with
images, size, color, brand, quantity details, Pre production comments if any, etc.
Figure 24. Purchase order creation
8. Manual Purchase order confirmation: Once manual purchase order is prepared, it is then
sent to vendor for verification & changes required if any, after that changes are made and

purchase order is finalized and confirmed by the buyers and generated by purchase order creation
team.
9. Pre Production Sample: Once the purchase order is confirmed, then the vendor starts sending
pre production samples (vendors send 2 Pcs. i.e. 1 original sample and one counter sample for
future reference) of each of the selected styles at head office for approval of pre-production
samples (PPS). There are defined standards of measurement, sizes, fabric quality, label on the
basis of which PPS is approved. After PPS is approved and sealed it is sent to vendor’s address
so that he can start the production process of approved samples.
Figure 25. Check points for Pre-Production sample
10. System Purchase order & Bar code file creation: Once PPS is approved, final manual
purchase order is sent for system purchase order generation. Once system purchase order is

generated its PDF file is automatically sent to vendor’s mail id from the system and Bar code file
is also created simultaneously.
Figure 26. Bar code & system generated purchase order

11. Inspection: Once production is done, quality inspection takes place wherein quality
inspectors check the quality of garments manufactured and certain other aspects as per the
standards.
Stages of inspection process:
a. In-line & Mid-line Inspection
b. Final Inspection (quality inspection when garment is finally ready)
12. ASN Request & confirmation: Once the quality inspection is done and approved, vendor
request for ASN (advance shipping number) it means that production is done and goods are
ready for shipment. ASN requested by vendor is confirmed by buyers, once the ASN is
confirmed goods are shipped.
13. Goods-in-transit & GRC: Good receiving means entry of goods in warehouse.
14. Store Allocation: Once the goods are received in the warehouse, goods are allocated to
stores of v-mart for consumer consumption.
15. Sell through analysis: 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. Sell-through is
calculated during a period (usually 1 month). Sell through refers to sales made directly (Direct
sales).This is done to know the top selling styles, merchandise categories, etc. in order to analyze
their sales targets and achievements.

A LLOCATION
Logistics is the process of planning, implementing and controlling the efficient, cost effective
Flow and storage of raw materials, in-process inventory, finished goods and related information
from point of origin to point of consumption for the purpose of conforming to customers’
requirements. Inventory control can be defined as “determining and maintaining optimum
investment in inventory given the significance of benefits and cost association with holding
inventory”. Inventory control relates to “a set of policies and procedures by which industries
determine which materials it will hold in sock and the quality of each that it will carry in stock”.
Functions of Allocation team are explained below with the help of a flow chart:

Figure 27. Allocation: functions
Inward Process
 First to check the document at security check point (Gate Pass, STO and Trip
Sheet) and Vehicle seal.
 FIFO Stamping will be done at vehicle itself before unload the stock (As per
Process Audit).
 Security will check the Number of Boxes through “Cartoon Control Sheet “and
same should match with the warehouse Gate Pass Number of Boxes.
 If Any Variance in number of boxes, variance will be given to transporter on
Transport Lorry Receipts with the Drivers Signatures. (Communication to
Warehouse Team).

 Number of boxes is tallied “Cartoon Control Sheet” and Ware House Gate Pass
Number of Boxes, Acknowledgement to be given to the Transporter on Lorry
Receipt.
 All the stocks will be moved from Unloading Bay to warehouse and manual
counting will be done by the ware house team.
 Goods Receipt Note will be prepared. And Tagging process will be completed,
and then scan the 100% merchandise.
 If the Article Code is not available, Stock Will be hold at warehouse.
 Warehouse Team will maintain the Floor Inward / Outward Register and
respective Brand
 Global Count Register update by the Brand Staff and stock will be displayed on
floor.
Outward Process:
 On the basis of store wise budget allocation and performance of the store
requirement is calculated.
 Sales orders (S.O.) are generated
 Goods are dispatched once the sales orders are generated.
 Stock inward process takes place in stores across different regions.

4.2. MARKETING DEPARTMENT
Figure 28. Marketing Flow

The marketing department has overall responsibility for growing revenue, increasing market
share and contributing to company growth and profitability. In V-mart retail limited, marketing
department is responsible for :
 Organizing events, such as exhibitions, seminars, sales conferences or customer
hospitality events. They plan the logistics of the event, booking exhibition booths or
meeting facilities, for example, and provide event material, such as displays,
presentations or handouts.
 They also promote external events to customers and prospects to ensure successful
attendance.
 Marketing department plans campaigns and develop communications material to
promote products and services to customers and prospects. Depending on their
available budgets, they may plan advertising campaigns, develop e-mail marketing
programs, create promotional content for the company website, write press releases or

product publications, such as company brochures, product data sheets or customer
newsletters.
 They may write and design the promotional material if they have skills within the
department or they may appoint advertising agencies or design firms to produce the
work.
Schemes offered at V-mart Retail limited:
 BOGO (Buy one get one)
 Bill Buster
 Flat Rate
 Free Gifts/Assured Gifts
 Power Pricing
 Bulk Discounts
4.3. HUMAN RESOURCE DEPARTMENT

The human resources department provides the organization with structure and the ability to meet
business needs through managing the company's most valuable resources - its employees. In V-
mart retail limited there are several HR disciplines or areas. The HR team takes care of:
Recruitment
The success of recruiters and employment specialists generally is measured by the number of
Positions they fill and the time it takes to fill those positions. Recruiters who work in-house – as
Opposed to companies that provide recruiting and staffing services -- play a key role in
developing the employer's workforce. They advertise job postings, source candidates, screen
applicants, conduct preliminary interviews and coordinate hiring efforts with managers
Responsible for making the final selection of candidates.
Safety & Security

Workplace safety is an important factor. Under the Occupational Safety and Health Act of 1970,
Employers have an obligation to provide a safe working environment for employees. One of the
main functions of HR is to support workplace safety training and maintain federally mandated
logs for workplace injury and fatality reporting.
Training and Development

Employers must provide employees with the tools necessary for their success which, in many
cases, means giving new employees extensive orientation training to help them transition into a
new organizational culture. The HR departments also provide leadership training and
professional development.
Compliance
HR team helps in the compliance with labour and employment. The compliance law is a critical
HR function. Noncompliance can result in workplace complaints based on unfair employment
practices, unsafe working conditions and general dissatisfaction with working conditions that can
affect productivity and ultimately, profitability.
Compensation and Benefits

On the compensation side, the HR functions include setting compensation structures and
evaluating competitive pay practices. A comp and benefits specialist also may negotiate group
health coverage rates with insurers and coordinate activities with the retirement savings fund
administrator. Payroll can be a component of the compensation and benefits section of HR;
however, in many cases, employers outsource such administrative functions as payroll.
4.4. FINANCE DEPARTMENT
Figure 29. Finance functions

Book-keeping
This is the most basic function of the finance department. It involves the day-to-day recording,
analysis and interpretation of a company’s financial transactions. This will include the tracking
of all expenses (purchases, payments etc.) and sales of finished products.
Management of company’s cash flow

It is the duty of the finance department to manage all cash flows into and out of a company and

ensure that there are enough funds available to meet the day-to-day running of the company.
Budgets and forecasting

In this function, the finance department works with managers to prepare the company’s budgets
and forecasts and also give feedback with regards to the financial standing of the company. This
information can be used to fulfill/ the cash needs of each department, plan company staffing
levels, plan asset purchase and expansions at minimum cost before they become necessary.
Advising and sourcing longer-term financing

It is the duty of the finance department to advise companies on the best financing mix that could
yield the company the best profit and also help them source longer-term financing at the lowest
cost such that there is a profit level of liquidity.
Management of Taxes
Running a company involves paying tax, and it is the duty of the finance department to handle
tax issues. This includes creating good corporate relationships with government by remitting
PAYE (Pay As You Earn) to the relevant authority, and ensuring that implementation of tax
matters are done within the framed policies.
Management of Company’s Investments

Apart from analyzing and selecting new investments, it is also the duty of the finance department
to manage company’s existing assets. The finance department should be concerned with current
assets apart from fixed assets.
Financial Reporting and analysis

Financial reporting and analysis is the function that takes raw accounting entries and transforms
them into meaningful, usable and comparable financial statements. The finance department
contributes to organizational growth by measuring and reporting on regular bases, key numbers
that are vital to the success of the company.
Assist managers in making key strategic decisions

The finance department provides company management with information necessary to make

strategic decisions, making sure that money is being used in the best way.
4.5. VISUAL MERCHANDISING DEPARTMENT
Figure 30. VM – functions
Visual merchandisers use their design skills to help promote the image, products and services of
retail businesses and the organizations. They create eye-catching product displays and store
layouts and design to attract customers and encourage them to buy. Visual merchandising
designers who work in V-mart retail limited head office collaborate closely with other
departments to create annual visual strategies and promotional events in order to entertain, excite
and maintain the interest of the target markets.
VM Display will focus on:

Aesthetics - Aesthetic display of the merchandise to attract the potential buyers. Prompt them to
buy and eventually increase the sale of the store.
Psychological – Capitalizing on what exactly interest shoppers.
Transactional – Transactional marketing has one focus: the Sale and nothing but the Sale.

CHAPTER 5: KIDSWEAR DIVISION
In V-mart retail limited Kidswear division comprises of three sub-divisions:
Figure 31. Kidswear division at V-mart

BOYS DIVISION:

 BOYS SENIOR (BS)
 BOYS JUNIOR (BJ)
 BOYS TODDLER (BT)
GIRLS DIVISION:
 GIRLS SENIOR (GS)

 GIRLS JUNIOR (GJ)
 GIRLS TODDLER (GT)
INFANTS: INFANTS BABA & INFANTS BABY
Kidswear at a glance: 2017-2018
Sales fetched from oracle retail cube | Amount Rs. in lacs
 From the above data it is clear that Boys sales contribution in the year 2018 was 11%,
girls contribution was 7% and Infants contribution was 6 %
 At company level Kidswear division (Boys + Girls + Infants) contribution is approx. 23%
 At Apparel level contribution of Kidswear division is approx 29%
Kidswear at a glance: 2019

Division Total Value
Boys 5210
Girls 3737
Infant 2855
Grand Total 11801

Infant
24%
Boys
44%
Girls
32%
Figure 32. Contribution of Kidswear division
Division, Article, Min & Max of MRP
Division Article Min of MRP Max of MRP

ECO 79 299
Boys
EXCLUSIVE 399 1899
NOOS 199 199
PREMIUM 199 1499
PROMO 149 799
REGULAR 99 599
ECO 79 299
Girls
EXCLUSIVE 599 1499
NOOS 129 149
PREMIUM 399 999
PROMO 49 299
REGULAR 129 399
Infant ECO 39 219
EXCLUSIVE 269 649
POPULAR 99 469
PREMIUM 219 419

PROMO 39 269
REGULAR 29 519
Table 6. Division, Article, Min & Max of MRP
Kidswear – Girl
Vendors – Kids – Girls

Below given table is the list of vendors for Kidswear (Girls). Major vendors are from Kolkata,
Ludhiana, Tripura, Mumbai & New Delhi.
Arjun Apparels
AHMEDABAD LOCAL Sundip Enterprises
A B Creation
AMRAVATI New Palak Creation
Radha Creation
BANGALORE Radha Rani Creation

Mansi Fashion
GHAZIABAD The Brooks International (Up)
GURUGRAM Bioworld Merchandising India Pvt Ltd
Bhaskar Textile
HOWRAH Eon Creation
Kidz World Garments LLP
M/S Archita Apparels
Shivam Garments(Krishna Bhavan, Kolkata)
Tulsi Creation
A K Creation
KOLKATA Designer Exports
Dilip Apparels

Fighter International
G. Fast
G.D. Dresses
KOLKATA
J.K. Apparel.
Jai Hanuman Traders
Jaida & Sons Pvt. Ltd
Kajol Dresses Pvt Ltd
Krishna Creation
Mamta Sales Management
Matangi Garments
Mini Wear Export Pvt. Ltd.-1
Misbahi Triple Iii Garments
MMB Textile Private Limited
Moozoo International
Mudpie Girls Wear
Munshiram Jai Bhagwan
Nake Collection
Niomoda Clothing Pvt Ltd.
NRS Hosiery (P) Ltd.
Omkar Apparel
Rbeauty Fashion India Private Limited
Robin International
Shiv Ashish Textiles
Shree Niwas Textile Private Limited
Sun Trexim
Vardhman Kids
Aman Knitwears
LUDHIANA Ansari Knitwears
Ashish Jain Hosiery
Dharam Parkash Industries
Everest Hosiery Industries
Fashion Sports
Indra Values
Jai Mata Di Creation
Khurana Knitwears
Long Man Knitwears-Pk02
Poonam Knitwears
Prince Hosiery Factory
S R Matta & Sons
S.R.Sethi Knitwear
Shree Padmavati Knit
Usha Knit Fab

Yonex Wears
Akshi Fashion
MUMBAI Atlas Multitrade Pvt Ltd. (Mumbai)
B & B Clothing
B Fashion Studio LLP
B.Fashion
Basic Kids-Bk01
Kristy Fashion
ND
Nexty Clothing
N-Twenty
Priya Creation
Priya Fashion
Show Kids
Sony Collection
Zeel Fashion-Zf009(Mumbai)
Arpit Fashions Pvt.Ltd.
NEW DELHI Atlas Multitrade Pvt Ltd.
D A Fashion
Dhaniya Garments
Dollcy Garments
Fine Creation
J.M.Jain-Delhi Tilak Bazar
Jai Jagdambe Garments
Jain Casuals Wears Pvt Ltd
Jhh Apperals
Knit Kraft Impex
Lotus Trends (P) Ltd
M M Clothing Co.
Manmark
Mansi Creation-(Mc05 Gandhinagar)
Mansi Fashion
Om Garments
Shakti Arts
Sidhaa Corporation
SSD International
Wingson Wear(-Ww01)
Youth Star
Anshu Apparels
TIRUPUR Athletic Classic LLP
Chhavi International
Mangal Exports
Meru Creation LLP

Navkar Packers
Prabhat Knitwear
Shree Garments.
Shree S.U.M Fashions
Sri Tulshi Clothing Company (P) Ltd
Sri Vaigai Garments
Sukriti
Swastik Fashions
Table 7. Vendors List - GIRLS DIVISION
GIRLS – Departments
Below given tables is the list of section and departments under Girls Division
Division Section Department
Girls Girls Junior Capri[GJ]

Girls Girls Junior Casual Set[GJ]
Girls Girls Junior Frock[GJ]
Girls Girls Junior Jeans[GJ]
Girls Girls Junior Legging[GJ]
Girls Girls Junior Pant[GJ]
Girls Girls Junior Pyjama[GJ]
Girls Girls Junior Shorts[GJ]
Girls Girls Junior Skirt[GJ]
Girls Girls Junior Top[GJ]
Table 8. Departments - Girls Junior
Girls Girls Senior Capri[GS]

Girls Girls Senior Harem[G]
Girls Girls Senior Jeans[GS]

Girls Girls Senior Jegging[G]
Girls Girls Senior Legging[GS]
Girls Girls Senior Night Suit[G]
Girls Girls Senior Pant[GS]
Girls Girls Senior Party Wear[G]
Girls Girls Senior Pyjama[GS]
Girls Girls Senior Shorts[GS]
Girls Girls Senior Skirt[GS]
Girls Girls Senior Top[GS]
Table 9. Departments - Girls Senior
Girls Girls Toddler Casual Set[GT]
ECO
Table 10. Departments - Girls Toddler
GIRLS – Articles, Section & MRP

GIRLS
List of articles, Sections and respective MRP of girls division are JUNIOR
given below:
Division Article Section MRP

79
99
GIRLS SENIOR 149
GIRLS 199

299
79
99
149
169
GIRLS TODDLER 199
199
249
Table 11. ECO Article – Girls Division

EXCLUSIVE
GIRLS JUNIOR

599
GIRLS SENIOR 699

799

899
GIRLS 999
599
699

799

899
999
1299
GIRLS TODDLER
1499
599
699
GIRLS PREMIUM
Division Article
NOOS Section
GIRLS SENIOR MRP

129
149
Table 13. NOOS Article - Girls Division

399

GIRLS JUNIOR 499

GIRLS 599
699
399

499

599
699
799

Table 12. Exclusive Article - Girls Division
GIRLS SENIOR
999
GIRLS TODDLER 399
499
Table 14. Premium Article - Girls Division

49
149
GIRLS 199
249

GIRLS JUNIOR 299
149
PROMO
199

GIRLS SENIOR 249
299
Table 15. PROMO Article - Girls Division

129
149
179
GIRLS
199
249
299
GIRLS JUNIOR 399
149
199
249
REGULAR
299
GIRLS SENIOR 399
GIRLS TODDLER 299
Table 16. REGULAR Article - Girls Division
CHAPTER 6: PROJECT UNDERTAEKN
6.1. TOPIC OF THE PROJECT
“TO UNDERSTAND BUYING PROCESS AND DEVELOP FAB BLU’19 ASSORTMENT

MIX FOR KIDSWEAR CATEGORY (GIRLS DIVISION)”

6.2. OBJECTIVE OF THE PROJECT
To develop Fab blu’19 assortment mix for Kidswear category – Girls division
Sub-objectives
 To work on strong set of merchandising strategies - excitement generation & Image

enhancing, in coordination with marketing team.
 FAB BLU’19 collection was launched as an outcome of set of merchandising strategies
-excitement generation & Image enhancing.
 In order to gain greater share of wallet, increase footfalls, de-clutter from core/value
competitors & highlight fashion quotient, more customer-centric assortments that appeal
to the emerging trends and are in line with strategies need to be offered.
 This study would help in developing the assortment mix for FAB BLU’19 collection
while considering the objectives of this campaign and working accordingly.
 To determine & work on business driver merchandise category, quantity plan, vendor
selection and order placement and ultimately understand the buying process.
6.3. RESEARCH METHODOLOGY
Type of Research
The research carried out is descriptive in nature. The main goal of this type of research is to
describe the data and characteristics about what is being studied. This research is mainly done to
gain a better understanding of topic.
Data collection.
Secondary data collection:
Under mentioned data provided by the company have been used for this project:
 O-T-B data provided by planning team to analyze buy mix department, article and MRP
wise.
 Sell through report of vendors for vendor selection

6.4. RESEARCH DESIGN
Sample design:
 FAB BLU’19 collection to be launched for 70 stores.
 All the stores come under the category of A+, A and B grade stores, which means best
performing stores giving sales of more than 1 cr.
Following is the list of 70 stores:

Operational Design:
Following steps were taken for this research:
 Determining strong set of merchandising strategy

 Come up with campaign and its objectives
 Aligning my objectives with campaign objectives.
 O-T-B plan working
 Working on Assortment mix and quantity plan
 Vendor selection
 Order placement and order delivery

6.5. LITERATURE REVIEW
Merchandising
[ CITATION Mal14 \l 1033 ] , in his article defined merchandising as offering right kind of product at
right place and in right price. A retailer has to plan to have in his store the product that is desired
by the customer. Success of any retail organization depends on its merchandise planning. In
simple words merchandising can be defined as “Planning and control of merchandise inventory
of the retail firm, in a manner, which balances between the expectation of target customer and
strategy of firm”.
Merchandising Process
Merchandise planning is planning of product price, range and assortment. Retailer has to
undertake, marketing measures like advertising sales promotion etc., to ensure that the
merchandise is sold. It is planning & buying right kind of product, fixing a right kind of price
providing adequate range of products through an appropriate assortment, and ensure adequate
space to showcase and sell the product.[ CITATION Lir13 \l 1033 ]
Forecast of sales: Merchandise budget is dependent on estimated sales which is made based on
past records, present scenario and fashion trends. Forecast of sales for entire organization,
department and product wise is made.
Budget: Estimate is made at head office level that determines merchandise required for each
store or department. Merchandise required for each department and likewise for each store and
for entire organization and along with this firm also makes financial implication of investment in
merchandise.
Merchandise control: Retailer has to balance between purchase and sale of merchandise. It is
necessary to avoid either over or under stocking of merchandise. Daily and weekly stock reports
are taken to monitor the movement of stock.

Assortment Mix: Assortment is arrangement of products category wise. It is presentation of
entire products range classified under categories, department or section. Each assortment have
relevant or related items, every category must have adequate SKU (Stock keeping units) no shelf,
should be empty. At the same time it should be ensured that department or product category is
not overloaded.
Merchandising strategies
Merchandising strategies are an inherent part of any retailer’s success. To stay relevant and
stable in a competitive market, retailer’s strategies should vary by category and should be
customised to respond to a particular objective. Developing and implementing merchandising
strategies is a collaborative process.[ CITATION Dot16 \l 1033 ]
Figure 33. Merchandising Strategies

Strategies focus to enhance the strengths of a category, focus on combating category threats, and
create opportunities for the segments across your stores. Merchandising strategies are explained
below:
Traffic Building Strategies:

 The aim of the traffic building strategy is to draw your customers’ attention into the
store, then to the aisle, and into a category.
 Traffic Building strategy is used for products that are price sensitive, are frequently
purchased and have a high degree of household penetration.
 Products are displayed at eye-level, which is deemed prime position because it generates
the most sales.
Transaction Building / Cash Generating Strategies:
 This strategy aims on increasing the size of the average category transaction, by
encouraging potential consumers to purchase complementary products.
 Products are displayed to encourage impulse purchases, and using promotions to
encourage up-trading, for example, 3 for the price of 2.
Profit Generating Strategies:
 This strategy takes into consideration factors like: higher selling price, higher gross profit
% (margin) and categories that have a high GP% and a high stock turn.

 This strategy aims at increasing consumer’s exposure to higher margin items by
merchandising these categories in high traffic areas.
Excitement Generating:
 This strategy is used to create excitement for a particular category by communicating a
sense of urgency or opportunity to the consumer.
 This strategy, focus on offering fashionable and innovative products or promotions.
 Seasonal items, latest arrivals, special items, limited editions, rapidly growing segments,
and items that encourage impulse purchases fall under this category
Image Enhancing:
 Image enhancing strategies are used to enhance image in any of the following areas:
quality, variety, price, service, presentation, delivery and brands available.
 This may include anything from exclusive product offerings, suggestions, the variety of
product assortments, or competitive pricing

Developing a strong set of merchandising strategies will allow taking full advantage of the
strengths of each of categories.
Assortment Planning
An assortment plan is an organized collection of related merchandise, which includes

specifications for brands, colors, sizes, and material. The assortment plan is built or organized
according to the classification system used by the retailer. The system should be made with
customer attracting features in mind because the system will be used to plan the merchandise that
will be bought by the buyer. The process of developing this plan is the assortment planning
process.
[ CITATION Lev09 \l 1033 ] in their journal article stated that retailers conduct product assortment
planning (PAP), on the basis of (1) The variety of merchandise, (2) The depth of merchandise,
and (3) Service level or the amount of inventory to allocate to each stock-keeping unit (SKU).
This article at the same time addresses the variety, depth, and service level aspects of PAP to
provide a more thorough understanding.
The assortment plan can also be used to determine specific quantities of merchandise within each
class or subclass. The more diverse the product assortment is for the retailer, the more need is
present for a detailed assortment plan, which should be prepared prior to the buying trip. The
assortment plan may have several versions. The version that is most closely related to the
forecast will be one that is organized as the customer might shop. The style features that would
be considered first in the shopping process by the consumer would be the major classes within
the merchandise classification and subclasses would be categories of additional features, and

finally color, size, and vendor. With the addition of sales cash and quantities, the assortment plan
becomes the quantitative or detailed sales forecast. This quantitative forecast with both styles and
volume is based on the quantitative information from the sales plan and the six-month plan and is
used to make the buying lists for market trips. The detailed forecast combines the style
information from fashion forecasting with the cash information from sales planning. An
assortment plan is developed in both rows and columns. The rows are established with the
following steps: (a) select general classifications of products, (b) divide the general classes into
subclasses, (c) identify additional characteristics of the sub-classes that will be needed (e.g.,
colors, fabrics, and sizes), and (d) set up a spread sheet with rows for classes, subclasses.
Range & Assortment Planning
According to an article published by [ CITATION Ret10 \l 1033 ] , Range Plan or Merchandise Plan
form the basis for the development of the store / store cluster level assortment plan and in a fully
integrated planning process are the trigger for both the demand planning and visual
merchandising processes. A good range plan also allows the buyer and merchandiser to measure
the effectiveness of their ranges against the original budgets and against plan. It allows for hard
and soft constraints to be applied in operations, such as Open to Buy (OTB), management of
intake, delivered margins, promotional activity and markdown / residuals planning.
 Range plan enables company plans

 Range offering complete
 Price points appropriate
 Store clustering enabled
 Localized pricing and promotions possible
 Assortment supportive of demand chain
 Reduction of markdowns
 Planned rather than tactical promotions
 Maximized margins and inventory
Hierarchy:

Figure 34. Range Plan Hierarchy
Assortment planning process

Assortment planning, also known as product line selection and product portfolio optimization, is
concerned with the problem of choosing which products to offer or display or "put on the shelf".
Assortment planning is a key element in retail merchandizing, and as [ CITATION Fis08 \l 1033 ]
concluded in an early review, it is a vital factor in the final profitability of retailers. Displaying or
offering a larger variety of products increases market share, as it attracts a more heterogeneous
set of customers and satisfies customer’s variety-seeking tendencies [ CITATION Tan06 \l 1033 ].
The value of assortment planning is clearly illustrated [ CITATION Ros06 \l 1033 ] who develops an
optimization-based methodology and report that their recommendations for a grocery store chain,
when compared with the existing approach, result in profit increases of more than 50%.
Similarly, [ CITATION Raj01 \l 1033 ] use a non-linear integer programming model for assortment
planning in large catalog retailer specializing in women’s apparel, and report a profit increase of
40%.
[ CITATION Rus10 \l 1033 ], Concluded assortment planning by not only deciding a products
allocated space, but also its location: it has been shown that the location of a product affects its
sales. They consider a setting in which products are categorized as part of a family, and the
integrity of a family should be maintained. An important aspect of the research in the above-
mentioned papers, and much of the assortment literature, is modeling product substitution.
Most of the research related to product substitution in assortment planning assumes that the
demand distribution is known in advance and can thus be categorized as static assortment
planning.[ CITATION Gau06 \l 1033 ]
[ CITATION Car071 \l 1033 ] , developed a stylized dynamic assortment planning model to study the
sale of fashion items, where the size of the market is unknown. They employ a finite horizon
multi-armed bandit model with several plays per stage and Bayesian learning. To solve the
model, they use Lagrangian relaxation to handle the weakly coupled dynamic programs, an
approach that we will also use.
The above mentioned paper shows how an organization chooses, or should choose, its strategy in
a changing environment. (The problem can be viewed as assortment planning with a shelf space
of size one.) Learning, more specifically exploration to generate new knowledge about the
environment, is incorporated to enhance the quality of decision making.

A major portion of the academic literature focuses on dynamic pricing which, adopting the
definition of [ CITATION Wea92 \l 1033 ] arises in situations where a perishable and nonrenewable
product has a stochastic demand over a finite period of time.
In a landmark paper, [ CITATION Git79 \l 1033 ] show that learning, or what they call the
information acquisition problem, and the exploration vs. exploitation tradeoff can be reduced to a
series of one-dimensional problems using an index policy.
Buying
The Buying-Selling Cycle is a never ending circle of retail processes and activities that take
place in the retail store continually throughout the year. However, these job responsibilities of
the retail buyer/merchandiser are never completed one-at-a-time or on a one-time basis per week,
month, or year. The buyer is constantly multi-tasking and attempting to keep abreast of all
factors that impact the day-to-day as well as future operations of the business. The circle of
activities begins with planning (i.e., estimating and budgeting sales in dollars and units) and
evaluating (i.e., anticipating and forecasting future fashion trends) [ CITATION Cot18 \l 1033 ].
The job responsibilities in this step include analyzing the dollar and unit sales volume of the
previous year, for the same season, for which a seasonal plan is being created, and forecasting
the future fashion trends that meet the wants and demands of the target consumer. The next step
of the process is procuring (i.e., searching for, evaluating market offering, selecting product
classification, and purchasing product) the merchandise mix or product classifications for the
seasonal offering. Other continuous steps of the cycle include promoting merchandise (i.e.,
advertising, special events, publicity, visual merchandising), merchandising the department (i.e.,
merchandise presentation, creative display of product), supervising personnel, and managing the
store/department.
Generally all buyers are responsible for planning and evaluating, procuring, and assisting in
promoting merchandise. For each of these major fashion seasons, the buyer develops a
merchandise plan, including a Six-Month Merchandise Budget, product assortment plan, and
sales promotional plan in order to drive the business of the store/department.

Promoting Merchandise
Frequently many buyers play a major role in the marketing of the product, selecting trends and
product to feature in advertisements, suggesting special events to promote the goods, and
requesting specific visual presentations in the department or store. All buyers, in some manner or
form, will assist in marketing the product, whether it be acting as a liaison between the store and
the vendor in order to provide an open channel of communications or whether it be assisting with
the actual creation of the marketing piece or event. Furthermore, buyers glean ideas in the market
for fashion events and/or special promotions and events that are most appropriate for marketing a
specific brand, trend, or new product offering. It behooves the buyer to create as much
excitement and entertainment as possible in the retail store in order to assure that selected
merchandise assortments sell. Also, “retailtainment” (i.e., retail entertainment) assures that the
store’s target consumers are excited about that particular store in comparison to the competitors’
stores.[ CITATION Bla16 \l 1033 ]

6.6. ABOUT: FAB BLU’19 CAMPAIGN
The FAB BLU’19 campaign of V-mart retail limited is a part of SS’19 season. It came up as
excitement generating merchandising strategy which aims to create excitement for a
particular category by communicating a sense of urgency or opportunity to the consumers. This
strategy, focused on offering fashionable and innovative products or promotions. Under this
campaign, all the apparel & fashion accessories merchandise collection was planned in blue /
indigo colors and mostly in denim fabric. An additional budget (O-T-B) division, section and
department wise was given to buying department to source relevant merchandise according to
the theme from top nominated vendors.

Objectives of FAB BLU’19 Campaign:
 To increase the footfall
 To de-clutter from core/value competitors & highlight fashion quotient
 V-Mart retail limited introduced this for the first time in the portfolio and desired
perception is “An exclusive collection this summer in line with latest fashion”
 This is a stop-gap collection, which means a temporary way of dealing with a problem or
satisfying a need. This campaign is not only restricted to the collection of 'blue'. V-mart is
introducing a whole new theme collection in itself.
Communication Strategy:
 Fashion is an individual self expression. A range with unique appeal.
 Fashion is ephemeral, here today one tomorrow. Use the limited availability to drive
curiosity, urgency and thereby footfalls
Visual Treatment:
 Showcase fashion in ‘real’ life
 Create a unique urgency for ‘blue’
Timeline of FAB BLU’19
WORKING STARTED FAB BLU’19 WAS

FROM 10TH LAUNCHED ON 12TH
JANUARY, 2019 APRIL, 2019

REGIONS COVERED Uttar Pradesh, Bihar, Jharkhand,
Madhya Pradesh, Rajasthan, Punjab,
Orissa, Delhi-NCR, Jammu & Kashmir
STORES COVERED FAB BLU’19 Campaign was launched

at 70 stores of V-mart retail limited.
All the stores covered falls under A+,
A and B grade stores.
TARGET MARKET Youth
DURATION April-May 2019
LAUNCH DATE 12TH April, 2019
Table 17. Details of Fab blu'19 Campaign

“UNDERSTANDING BUYING PROCESS AND DEVELOPING FAB
BLU’19 ASSORTMENT MIX FOR KIDSWEAR CATEGORY (GIRLS
DIVISION)”
Kidswear category – GIRLS

Following steps were taken to understand the buying process and develop
assortment mix for FAB BLU’19 collection campaign.
Step 1: Open-to-buy (O-T-B) working – Girls Division
Open-to-buy budget for FAB blu’19 collection was estimated and given by planning team. Total
O-T-B of 82.90 lacs was given for procuring blue theme merchandise to girls division.
Below given table shows department, Article and MRP wise O-T-B.
DEPARTMENT Article MRP VALUE
Capri[GJ] B3-PREMIUM-DNM-[BGLC04] 499 3.65

Capri[GJ] B-EXCLUSIVE-[BGLC05] 599 4.25
Capri[GS] C-EXCLUSIVE-[CGLC05] 599 8.51
Frock[GJ] B3-PREMIUM-HOS/CTN-[B3GF04] 499 8.53
Frock[GJ] B3-PREMIUM-HOS/CTN-[B3GF04] 599 6.43
Jeans[GJ] B2-PREMIUM-[BGUF04] 499 3.51
Jeans[GJ] B2-PREMIUM-[BGUF04] 599 3.98
Jeans[GS] C4-PREMIUM-[CGJN04] 599 8.57
Top[GJ] B3-PREMIUM-[BGTP04] 499 11.72
Top[GS] C3-PREMIUM-[CGTP04] 499 14.04
Top[GS] C4-EXCLUSIVE-[CGTP05] 599 9.72
TOTAL 82.90
Table 18. Department, Article and MRP wise O-T-B

Figure 35. Buy mix - FAB BLU'19
From the above table & pie chart it is clear that out of total 82.90, 20% buying is to done in
Capri (both for girls senior and junior) , 18% frock (Girls junior), 19% jeans (girls senior and
junior) and 43% Tops (girls senior and junior).
Step 2: Developing Assortment mix and quantity plan
FAB BLU’19 collection is in itself an assortment. Following table illustrates assortment mix and
quantity plan for FAB BLU’19 collection
QUANTIT
ASSORTMENT DEPARTMENT PO VALUE Y UDF 3
BLUE
CAPRI WITH PRINT Capri[GJ] 4.47 1350.00 THEME
BLUE
WITH WASH EFFECT AND SIDE TAPE Capri[GJ] 3.83 1350.00 THEME
BLUE
WITH WASH EFFECT AND SIDE TAPE Capri[GS] 4.47 1350.00 THEME
BLUE
WITH WASH EFFECT Capri[GS] 4.47 1350.00 THEME
BLUE
DENIM WITH WASH EFFECT Frock[GJ] 2.33 600.00 THEME
DENIM FROCK WITH LACE Frock[GJ] 2.95 1080.00 BLUE

THEME
BLUE
DENIM FROCK WITH PEARL Frock[GJ] 3.40 1080.00 THEME
FAB
DENIM FROCK WITH PETER PAN COLOR Frock[GJ] 3.35 1080.00 BLU'19
FAB
DENIM AOP Frock[GJ] 1.44 516.00 BLU'19
FAB
FAB
FAB
DENIM JOGGER WITH CAMOUFLAGE Jeans[GJ] 4.17 1345.00 BLU'19
FAB
DENIM JOGGER WITH WASH EFFECT Jeans[GJ] 3.69 1350.00 BLU'19
FAB
JOGGER WITH WASH EFFECT Jeans[GS] 4.61 1350.00 BLU'19
FAB
DENIM JOGGER WITH CAMOUFLAGE Jeans[GS] 1.01 310.00 BLU'19
FAB
DENIM JOGGER WITH CAMOUFLAGE Jeans[GS] 3.39 1040.00 BLU'19
FAB
DENIM TOP WITH PEARL Top[GJ] 2.89 1080.00 BLU'19
FAB
DENIM TOP WITH PEARL Top[GJ] 3.18 1080.00 BLU'19
FAB
ALL OVER PRINT DENIM MIDDY Top[GJ] 3.18 1080.00 BLU'19
FAB
DENIM LONG DRESS WITH EYELET Top[GS] 3.29 1080.00 BLU'19
FAB
DENIM LONG DRESS WITH EYELET Top[GS] 3.29 1080.00 BLU'19
FAB
DENIM SHIRT WITH PEARL Top[GS] 2.89 1080.00 BLU'19
FAB
DENIM SHIRT WITH WASH EFFECT Top[GS] 2.89 1080.00 BLU'19
FAB
OFF SHOULDER WITH EMBROIDERY Top[GS] 2.84 1080.00 BLU'19
FAB
AOP DRESS Top[GS] 3.63 1080.00 BLU'19
COLD SHOULDER DRESS WITH WASH FAB
EFFECT Top[GS] 3.06 1080.00 BLU'19
COLD SHOULDER DRESS WITH WASH FAB
EFFECT Top[GS] 3.06 1080.00 BLU'19
QUANTITY WORKING OF DEPARTMENTS

CAPRI (GJ)
CAPRI (GS)
JEANS (GJ & GS)
TOPS (GJ & GS)
Step 3: Vendor selection
Vendor selection for different departments were done on the basis of sell-through analysis of Vendors
and as per their current season performance.
Capri Department:
There were around 30 vendors who deal in Capri for girls junior (GJ) out of 30 vendors , we
selected LOTUS TRENDS PVT LTD. on the basis of their sell-through and performance, for the
sourcing of Capri (GJ) and Capri (GS).
Division Section Department Customer-Vendor Name Sell through

Girls Girls Junior Capri[GJ] LOTUS TRENDS (P) LTD 70%
Girls Girls Junior Capri[GJ] Akshi Fashion 69%
Girls Girls Junior Capri[GJ] Youth Star 69%
Girls Girls Junior Capri[GJ] Priya Fashion 68%
Girls Girls Junior Capri[GJ] Kristy Fashion 66%
Girls Girls Junior Capri[GJ] Zeel Fashion-ZF009(Mumbai) 64%
Girls Girls Junior Capri[GJ] Wingson Wear(-WW01) 60%
Girls Girls Junior Capri[GJ] JHH Apperals 59%
Girls Girls Junior Capri[GJ] Arpit Fashions Pvt.Ltd. 49%
Girls Girls Junior Capri[GJ] Priya Fashion 45%
Girls Girls Junior Capri[GJ] Zeel Fashion-ZF009(Mumbai) 45%
Girls Girls Junior Capri[GJ] Dharam Parkash Industries 43%
Girls Girls Junior Capri[GJ] Akshi Fashion 42%
Girls Girls Junior Capri[GJ] Kristy Fashion 22%
Similarly for other departments also, same selection process was done and vendors
were selected. Following is the list of vendors for respective departments.
VENDOR DEPARTMENT
LOTUS TRENDS (P) LTD Capri[GS]
LOTUS TRENDS (P) LTD Capri[GS]
Matangi Garments Frock[GJ]
Mansi Fashion Frock[GJ]

JHH Apperals Frock[GJ]
JHH Apperals Jeans[GJ]
JHH Apperals Jeans[GJ]
LOTUS TRENDS (P) LTD Jeans[GS]
JHH Apperals Jeans[GS]
JHH Apperals Jeans[GS]
Mansi Fashion Top[GJ]
Mansi Fashion Top[GJ]
B Fashion Studio LLP Top[GJ]
Sun Trexim Top[GS]
Sun Trexim Top[GS]
Mansi Fashion Top[GS]
Mansi Fashion Top[GS]
JHH Apperals Top[GS]
B Fashion Studio LLP Top[GS]
Table 19. Selected Vendors list
Step 4: Order Placement
After developing quantity plan and vendor selection, order placements starts with vendors:

Step 5: Pre-production samples and approval
Once the order is placed, vendor initially sends pre-production sample to head office for quality
check and after its approval production starts.
Following are the selected samples for FAB BLU’19 collection:

Step 6: Goods receiving date
Once the production is complete, final inspection is done and orders are dispatched by respective
vendors and goods are received at warehouse. Once the goods are received at warehouse,
allocation team starts with allocation planning for different stores.
Departmen
t Vendor Name Article Name Orddt Valid From Valid To
04/04/1
Jeans[GS] JHH Apperals C4-PREMIUM-[CGJN04] 02/20/19 02/22/19 9
04/01/1
Top[GJ] Mansi Fashion B3-PREMIUM-[BGTP04] 02/28/19 03/02/19 9
03/31/1
Jeans[GJ] JHH Apperals B2-PREMIUM-[BGUF04] 02/20/19 03/12/19 9
03/31/1
Capri[GJ] LOTUS TRENDS (P) LTD B-EXCLUSIVE-[BGLC05] 02/19/19 02/20/19 9
B3-PREMIUM-DNM- 03/31/1
Capri[GJ] LOTUS TRENDS (P) LTD [BGLC04] 02/19/19 02/20/19 9
03/31/1
Capri[GS] LOTUS TRENDS (P) LTD C-EXCLUSIVE-[CGLC05] 02/20/19 03/11/19 9
03/20/1
Top[GS] Mansi Fashion C3-PREMIUM-[CGTP04] 02/28/19 03/08/19 9
03/08/1
Capri[GS] LOTUS TRENDS (P) LTD C-EXCLUSIVE-[CGLC05] 02/20/19 03/08/19 9
03/07/1
Top[GJ] B Fashion Studio LLP B3-PREMIUM-[BGTP04] 02/19/19 02/20/19 9
Table 20. Order date and goods receiving date

CHAPTER 7: KEY FINDINGS
7.1. FAB BLU’19 TRACKER TILL APRIL 19
Fab blu’19 was launched on 12th April, 2019 in stores, following data shows sell through of sales
till 19th April, 2019.
Sell through is calculated here at stock, by applying formula IFERROR (M16/(I16+M16),0).
M 16: Cost, I 16: Stock
 Capri both in section of girls senior and girls junior is performing good with sell through
of 47% & 34% respectively.
 Frock department in girls junior section gave sell through of 35%, followed by top (GJ)
with sell through of 31% and Top (GS) with sell through of 28%.
 Jeans (GJ) and Jeans (GS) with sell through of 12% and 14% respectively.
 Capri, frock and Top department for girl’s junior section is well performing.

7.2. VISUAL MERCHANDISING DISPLAY PLAN – FAB BLU’19
Visual merchandising is a crucial retail strategy that maximizes the aesthetics of a product with

the intent to increase and maximize sales. In considering the importance of visual merchandising
on retail businesses the single and most important reason is to engage and inspire shoppers, to
encourage them to buy more of the products you want them to, increasing your sales, margin and
return on space . That engagement process of course starts even before they have set foot in
store.
Below image shows window display and in store display of FAB BLU’19:
Figure 36. Window display - FABBLU'19

VM Scope Area:-
1. Show Window
2. Focal Point
3. In-store

4. Merchandise display highlights
5. Mannequin Styling
6. Signage
Below images shows the in store displays and window display of FABBLU’19 Campaign
collection:

Figure 37. In store VM - FABBLU'19

Figure 38. FABBLU'19 Campaign shots
CHAPTER 8: REFERENCES
Arora, R., & Pai, G. (2018). Management Meet updates. Mumbai: Nirmal Bang equities pvt ltd.
Baker, M. (2004, April 3). Mallen Baker. Retrieved May 14, 2019, from Mallen Baker: http://www.
mallenbaker. net/csr/CSRfiles/definition. html>,
Black well Publishing. (2016). The role of fashion buyer. Black well Publishing.
Caro, F., & Gallien, J. (2007). Dynamic assortment with demand learning for seasonal consumer goods.
Management Science , 276-292.
Cotton works. (2018). Retail Product Merchandising: Retail Buying-Selling Cycle. Cotton works.
Dot Activ. (2016). 6 Merchandising Strategies That Increase Category Sales.
Economic Times. (2018, September 24). ET Tech. Retrieved April 10, 2019, from ET tech website:
https://tech.economictimes.indiatimes.com/news/corporate/v-mart-retail-evaluating-omni-channel-
route-to-expand-business/65928264

Exchange 4 Media. (2018, April 30). Exchange 4 Media. Retrieved May 14, 2019, from Exchange 4 Media
website: https://www.exchange4media.com/advertising-news/v-mart-unveils-campaign-with-
ayushmann-khurrana-and-bhumi-pednekar-as-brand-ambassadors-89713.html
Fibre2fashion. (2018, March 22). Fibre2Fashion. Retrieved May 14, 2019, from www.fibre2fashion.com:
https://www.fibre2fashion.com/industry-article/5129/value-retailing-are-brands-losing-their-luster-
Fisher, M., & KOK, A. (2008). Assortment planning: Review of literature and industry practice. Retail
supply chain management , 99-153.
Gaur, V., & Honhon, D. (2006). Assortment planning and inventory decisions under a locational choice
model. . Management Science , 1528-1543.
Gittins, J., & Jones, D. (1979). A dynamic allocation index for the discounted multiarmed bandit problem.
. Biometrica , 61-74.
Gugnani, A., & Bhrama, K. P. (2018, January 12). Technopak. Retrieved May 14, 2019, from Technopak
Web site: http://www.technopak.com/Files/kidswear-market-in-india
IBEF. (2019, April 1). Indian brand equity foundation. Retrieved MAY 8, 2019, from www.ibef.org:
https://www.ibef.org/industry/retail-india.aspx
Kotler, P. (2012). Kotler on Marketing. Chicagp: Simon and Schuster.
Levy, M., & Shah, D. (2009). Why is Assortment Planning so Difficult for Retailers? A Framework and
Research Agenda. Journal of Retailing , 85 (1), 71 - 83.
Liraz, M. (2013). Guide to effective retail merchandising management. Liraz publication.
Mallick, S. (2014, April 30). Business management. Retrieved May 12, 2019, from Business management
website:http://www.businessmanagementideas.com/retail-marketing/merchandise-
planning/merchandise-planning-components-and-process-retail-marketing/17536
Peter, J., Olson, J., & Grunert, K. (1999). Consumer behaviour and Marketing strategy. McGraw-Hill ,
329-48.
Rajaram, K. (2001). The impact of product substitution on retail merchandising. European journal of
operational research , 582-601.
Retail Acumen. (2010, October 30). Retail Acumen wordpress. Retrieved May 14, 2019, from Retail
Acumen Website: https://retailacumen.wordpress.com/2010/10/06/retail-range-planning-merchandise-
planning-and-assortment-planning/
Rose, D., & Leven, S. (2006). U.S. Patent & Trademark.
Russel, R., & Urban, T. (2010). The location and allocation of products and product families on retail
shelves. . Annals of operation research , 131-147.

Tang, C. (2006). Robust strategies for mitigating supply chain disruptions. International journal of
logistics , 33-45.
Techtarget. (2018, April 30). Search customer experience. Retrieved May 14, 2019, from Techtarget
website: https://searchcustomerexperience.techtarget.com/definition/omnichannel
V-mart. (2019, Januaury 1). V-mart Retail Limited. Retrieved May 14, 2019, from V-mart retail Limited
Web site: http://www.vmart.co.in/welcome/journey
Weatherford, L., & Bodily, S. (1992). A taxonomy and research overview of perishable-asset revenue
management: Yield management, overbooking, and pricing. Operation Research , 831-844.

National Institute of Fshion Technology

Uploaded by

Copyright:

Available Formats

National Institute of Fshion Technology

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

National Institute of Fshion Technology

Uploaded by

Copyright:

Available Formats

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION TO INDIAN RETAIL INDUSTRY..........................................8

1.1. INDIAN RETAIL INDUSTRY............................................................................................8

1.2. VALUE RETAILING.........................................................................................................12

1.3. KIDSWEAR MARKET......................................................................................................13

CHAPTER 2: COMPANY PROFILE...........................................................................................17

2.1. V-MART RETAIL LIMITED............................................................................................17

2.2. MARKETING STRATEGY OF V-MART RETAIL LIMITED.......................................29

2.4. CORPORATE SOCIAL RESPONSIBILITIES ACTIVITIES..........................................32

2.5. OMNICHANNEL STRATEGY.........................................................................................34

2.6. GLIMPSES OF 2018: V-MART RETAIL LIMITED........................................................36

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 1

CHAPTER 3: ORGANISATIONAL STRUCTURE....................................................................38

3.1. BOARD OF DIRECTORS.................................................................................................38

3.2. SENIOR LEADERSHIP TEAM........................................................................................38

CHAPTER 4: FUNCTIONS OF VARIOUS DEPARTMENTS...................................................41

4.1. MERCHANDISING DEPARTMENT...............................................................................41

4.2. MARKETING DEPARTMENT.........................................................................................54

4.3. HUMAN RESOURCE DEPARTMENT............................................................................55

4.4. FINANCE DEPARTMENT...............................................................................................57

4.5. VISUAL MERCHANDISING DEPARTMENT................................................................59

CHAPTER 5: KIDSWEAR DIVISION........................................................................................61

CHAPTER 6: PROJECT UNDERTAEKN...................................................................................71

6.1. TOPIC OF THE PROJECT................................................................................................71

6.2. OBJECTIVE OF THE PROJECT.......................................................................................71

6.3. RESEARCH METHODOLOGY........................................................................................71

6.4. RESEARCH DESIGN........................................................................................................72

6.5. LITERATURE REVIEW...................................................................................................75

6.6. ABOUT: FAB BLU’19 CAMPAIGN...............................................................................85

“UNDERSTANDING BUYING PROCESS AND DEVELOPING FAB BLU’19

Kidswear category – GIRLS..................................................................................................88

Step 1: Open-to-buy (O-T-B) working – Girls Division.......................................................88

Step 2: Developing Assortment mix and quantity plan..........................................................89

Step 3: Vendor selection.........................................................................................................91

Step 4: Order Placement.........................................................................................................93

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 2

Step 6: Goods receiving date..................................................................................................98

CHAPTER 7: KEY FINDINGS....................................................................................................99

7.1. FAB BLU’19 TRACKER TILL APRIL 19........................................................................99

7.2. VISUAL MERCHANDISING DISPLAY PLAN – FAB BLU’19..................................100

Figure 1. Growth Drivers for Retail in India (IBEF, 2019).............................................................7

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 3

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 4

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 5

CHAPTER 1: INTRODUCTION TO INDIAN RETAIL INDUSTRY

1.1. INDIAN RETAIL INDUSTRY

Retail Formats in India

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 6

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 7

Growth Drivers for retail in India

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 8

 Factors like young demographic composition, increasing personal disposable income,

Consumer Finance Opportunities

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 9

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 10

Conversion scale Used: INR 1 = US$ 0.0139 as on Q3 FY19

1.2. VALUE RETAILING

NATIONAL INSTITUTE OF FSHION TECHNOLOGYPage 11

1.3. KIDSWEAR MARKET