merchandising strategy of talisman ltd garments

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MERCHANDISING STRATEGY OF TALISMAN LTD GARMENTS

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Internship Report on

Merchandising Strategy of Talisman Ltd Garments

Prepared for:

Md. Tapan Mahmud

Lecturer

Faculty of Business Studies

Bangladesh University of Professionals

Prepared by:

Md. Manik Miah

[email protected]

ID: M-1112031

MBA -12

Department of Marketing


Bangladesh University of Professionals Mirpur Cantonment

Dhaka- 1216

January 10, 2013

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Declaration of originality

I am Md. Manik Miah student of Master of Business Administration (MBA), 12th batch

ID: M-1112031, declare that this Internship report on “Merchandising Strategy of

Talisman Ltd Garments” is completely of my own work. References are provided, as it is

free of plagiarism.

Md. Manik Miah

ID: M-1112031

MBA 12th Batch


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Supervisor Certificate

This is to certify that the Internship on “Merchandising Strategy of Talisman Ltd

Garments” has submitted for the award of Master of Business Administration (MBA)

with major in “Marketing” from Bangladesh University of Professionals carried out by

Md. Manik Miah, ID: M-1112031, MBA 12th batch under my supervision.

This report is free from plagiarism. He is permitted to submit the Project and Thesis

report.

........................................................ Md. Tapan Mahmud Lecturer Faculty of Business Studies Bangladesh University of Professionals

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Letter of Transmittal

January 10, 2013 Md. Tapan Mahmud Lecturer Faculty of Business Studies Bangladesh University of Professionals

Dear Sir,

Subject: Submission of internship report on “Merchandising Strategy of Talisman

Ltd Garments”.

I am pleased to submit my internship report on “Merchandising Strategy of Talisman Ltd

Garments”. This internship report is a part to complete my MBA program.

I have prepared this internship report under the instruction of you. Though it was a tough

job but it’s a great pleasure to perform the task and it enriches my knowledge. I have

given my sincere effort to complete the internship report. Finally I am submitting the

assignment and will be grateful if you kindly accept it.

Sincerely Yours

……………………………………………………

Md. Manik Miah ID: M-1112031 MBA 12th batch Department of Marketing Bangladesh University of Professionals

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Acknowledgement

The obligations incurred in preparing this dissertation paper are far too many to allow

adequate acknowledgements to be made in a brief note.

My sincere gratitude goes to Lecturer Md. Tapan Mahmud, Faculty of Business Studies,

Bangladesh University of Professionals, my supervisor, for everything he has made for

me starting from introducing such a bit complex issue on “Merchandising Strategy of

Talisman Ltd” to offering suggestions, guidance and constructive criticism and

inspiration for the accomplishment of this study.

My cordial thanks go to Senior Merchandiser Golam Mostaque Ahmed, HR and

Compliance Head Arif Zaman, Deputy General Manager of HR Mohammad

Moniruzzaman, Store officer Harun Ur Rashid, Cutting Manager Chaminda. They help

me thoroughly in the study area in collecting data and information, introduced different

department officers, providing other information which is very much important for me.

I would like to extend my gratitude to Major Md Rafiqul Islam, our program coordinator,

who arranged this internship.

Finally, I acknowledge the support of my family for their practical assistance

encouragement and financial support without which my internship report could not be

completed.

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Executive Summary

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

highest foreign currency earning sector in Bangladesh. Among this sector,

Talisman Ltd is growing very rapidly due to smaller investment requirement, greater

backward linkage facility and higher profit than woven garments.

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

Ltd Dhaka. The proposed study will cover the appraisal, practice, procedures and

techniques followed by the merchandising department of Talisman Ltd. It is also the way

products are chosen and presented to shoppers through display, pricing, advertising, and

education. Talisman Ltd is a garments sector whose main aim is to earn profit through

exchange of money and credit instruments by providing satisfactory services to the

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

those two functions simultaneously. At first it has highlighted the general introduction

about the Talisman Ltd. Here fourteen departmental activities are briefly described of

Talisman Ltd. Secondly it has discussed about the merchandising strategy of Talisman

Ltd. How do Talisman Ltd governs their merchandising activities i.e. operation procedure

of merchandising. Merchandising of Talisman Ltd performs their work in some

chronological processes. Sample is done for merchandisers first actions to attract the

buyer for buying their garments. They begin their activities through sequence of sample.

It is beginning through pattern sample and ending through shipping sample. And they

display different types of board like as Swatch board and Trims board. They also

communicate continuously with different buyers. I got some findings about

merchandising department from my questionnaire survey. The overall satisfactory level

of merchandising department is 55% that means average of all my respondents.

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Table of Contents

Page no.

Declaration of originality ..................................................................................... i

Supervisor Certificate ........................................................................................... ii

Letter of Transmittal .......................................................................................... iii

Acknowledgement ........................................................................................... iv

Executive Summary ............................................................................................. v

Chapter-01:

1.0: Introduction .......................................................................................... 1-2

1.1: Purpose of the study .................................................................................... 3

1.2: Objectives of the Study ................................................................................. 3

1.3: Scope of this study .................................................................................... 4

1.4: Methodology of the study .................................................................... 4-5

1.5: Activity Schedule .................................................................. 5

1.6: Limitation of the study ........................................................................... 6

Chapter-02:

2.1: Background Talisman Ltd ............................................................................ 7

2.2: Present situation of Talisman Ltd .................................................................. 7

2.3: Mission and Vision of Talisman Ltd ........................................................... 8

2.4: Services package covers ............................................................................. 8

2.5: Management hierarchy of Talisman Ltd ........................................................ 9

2.6: Board of Directors ........................................................................................ 10

2.7: Factory Capacity and Locations .................................................................. 11

2.8: Department of Talisman Ltd ........................................................... 12-18

2.8.1: Store department ................................................................................. 12

2.8.2: Cutting department .............................................................................. 12

2.8.3: Fabric inspection department ................................................................... 13

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2.8.4: Sample department ........................................................................... 14-16

2.8.5: Production department ........................................................................ 16

2.8.6: Washing department.......................................................................... 17

2.8.7: Finishing department.......................................................................... 17

2.8.8: Human resources department (HRD) ............................... 17

2.8.9: Logistic ...................................................................................................... 18

1.8.10: Accounts and finance ................................................................................. 18

2.8.11: Marketing and customer service ................................................................ 18

2.8.12: Quality control department ...................................................................... 18

2.8.13: Commercial department ........................................................................... 18

2.8.14: Merchandising department ...................................................................... 18

Chapter-03:

3.0: Literature Review ..................................................................................... 19-21

Chapter-04:

4.0: Findings and Analysis ...................................................................... 22-36

4.1: Merchandising Processes of Talisman Ltd ................................................. 22

4.1.1: Sequence of Sampling ....................................................................... 22-23

4.1.2: Swatch ............................................................................................ 23

4.1.3: Trims ............................................................................................... 24

4.1.4: Others activities of merchandisers ............................................. 24-25

Questionnaire findings .............................................................................. 26-35

4.2: Synopsis of the Findings ................................................................................................ 36

5.0: Recommendation ................................................................................. 37

6.0: Conclusion .................................................................................................. 38

Bibliography .................................................................................................. 39

Appendix ......................................................................................... A01 – A09

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List of the tables

Page no.

Table-1: Buyer inspecting garments chart .......................................... A -04

List of figure

Page no.

Figure-1: Process of Transaction of Letter of Credit (LC) .............................. A-05

Figure-2: Hanger band ..................................................................... A-06

Figure-3: Hand cutter machine ..................................................................... A-06

Figure-4: Digital auto cutter machine ................................................................. A-07

Figure-5: Cutter machine ................................................................... A-07

Figure-6: Relax Machine ................................................................. A-08

Figure-7: Preparing Marker ................................................................. A-18

Figure-8: Pattern .................................................................. A-09

Figure-09: Sewing Floor .................................................................. A-09

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Chapter - 01

1.0: Introduction:

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

highest foreign currency earning sector in Bangladesh. Among this sector,

Talisman Ltd is growing very rapidly due to smaller investment requirement, greater

backward linkage facility and higher profit than woven garments.

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

Ultramodern technology are being used in the woven and knit garment industries in the

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

to use world standard latest technology in our ready made garment sector.

The ready-made garment (RMG) industry of Bangladesh started in the late 1970s

and became a prominent player in the economy within a short period of time. The

industry has contributed to export earnings, foreign exchange earnings, employment

creation, poverty alleviation and the empowerment of women. The export-quota system

and the availability of cheap labor are the two main reasons behind the success of the

industry. In the 1980s, the RMG industry of Bangladesh was concentrated mainly in

manufacturing and exporting woven products. Since the early 1990s, the knit section of

the industry has started to expand. Shirts, T-shirts, trousers, sweaters and jackets are the

main products manufactured and exported by the industry. Bangladesh exports its RMG

products mainly to the United States of America and the European Union. These two

destinations account for more than a 90 per cent share of the country’s total earnings from

garment exports. The country has achieved some product diversification in both the

United States and the European Union. Recently, the country has achieved some level of

product upgrading in the European Union, but not to a significant extent in the United

States. Bangladesh is less competitive compared with China or India in the United States

and it is somewhat competitive in the European Union.

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The phase-out of the export-quota system from the beginning of 2005 has raised the

competitiveness issue of the Bangladesh RMG industry as a top priority topic. The most

important task for the industry is to reduce the lead time of garment manufacturing. The

improvement of deep-level competitiveness through a reduction in total “production and

distribution” time will improve surface-level competitiveness by reducing lead time. Such

a strategy is important for long-term stable development of the industry, but its

implementation will take time. In contrast, the establishment of a central or

common bonded warehouse will improve surface-level competitiveness by reducing lead

time, but deep-level competitiveness will not be improved and long-term industry

development will be delayed. Therefore, granting permission to establish in the private

sector such warehouses with special incentives, such as the duty-free import of raw

materials usable in the export-oriented garment industry for reducing the lead time in

garment manufacturing is a critical issue for Bangladesh.

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

Ltd DEPZ. The proposed study will cover the appraisal, practice, procedures and

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

shipment in Talisman Ltd.

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

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

Sectors, the ready-made garments are the main earning source of foreign currency. In the

garment and Textile industry, merchandisers have been playing a vital role for the

execution of export orders. There are large numbers of merchandising personnel who are

working in the garments sector.

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1.1: Purpose of the study:

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

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

responsible for the financial stability of a country. Due to globalization of the market, all

the industries have to face the competition. And the present developing economy of

Bangladesh demands immediate development of garments sector which can make a good

step to build up a strong economic infrastructure. In this view the organization have to

drive their operation in such way which can make a contribution on the economy. And

make a contribution into the economy: organization needs efficient personnel with

modern knowledge. This report has been prepared in the light of this view to gather

practical knowledge and prepared under the guidance and supervision of the teacher.

1.2: Objectives of the Study:

There are mainly two objectives such as broad objective and specific objectives.

Broad objective: The Broad objective of the report is

Scrutinize the Merchandising Department of Talisman Ltd garments.

Specific Objectives: The specific objectives are

To define and evaluate the performance of Merchandising Department.

To identify the problems of the Merchandising department.

To observe the effectiveness of Merchandising Department.

To know the operational procedures of Talisman Ltd as a Buying House

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1.3: Scope of this study:

As a student of Marketing, as a potential marketing executive, it is very much necessary

for me to know about the national and international marketing. I have been

assigned in Talisman Ltd garments. I have worked in factory and head office. I covered

the way to get myself familiarized with the official and factory environment in a garments

industry for the first time.

Merchandising department is the main key department in any garments industry. As well

as merchandising department of Talisman Ltd play a major role in the run of

their operations.

1.4: Methodology of the study:

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

about overall operation of Talisman Ltd in Bangladesh. This report is prepared on the

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

direct interview of the personnel engaged in various department of Talisman Ltd. For

primary data collection, I selected 30 respondents who are designation of manager, officer

and assistant officer of different department in Talisman Ltd. The secondary information

was collected from different past files, which was collected from personal visit of the

company files.

1.4.1: Sources of data collection:

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

1.4.1.1: Primary data source:

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

Practical work experience from different department of the Organization.

Relevant files and documents as provided by the concerned officers.

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1.4.1.2: Secondary data source:

Various books, articles and manuals etc.

Different web sites.

1.5: Activity Schedule:

The working schedule of my internship is given from Mr. Arif Zaman who is advisor (HR

and Compliance) of Talisman Ltd. He gave me permission going to merchandising

department at any time in internship period for research purpose.

Working Place Duration Weeks/ Days

Store Department 4 th November – 10th November 1 Week

Cutting Department 11 th November – 17th November 1 Week

Fabric Inspection Department 18 th November – 24th November 1 Week

Sample and Pattern Department 25 th November – 1 st December 1 Week

Production Department 2nd December – 8th December 1 Week

Quality Department 9th December – 15 th December 1 Week

Finishing Department 17 th December – 23 rd December 1 Week

Washing Department (Washing process and Lab works)

24 th December – 30 th December 1 Week

Merchandising 31 st December – 12 th January 13 Days

Total 8 Weeks and 13 Days

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1.6: Limitation of the study: The main limitations of the study are as follows

In garments factory most of the employee doesn’t have any educational

background they do their job only with experiences.

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

potential information timely.

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

the scope of the real analysis.

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Chapter - 02

2.1: Background Talisman Ltd:

Talisman Ltd is a part of FCI Group, UK-based Company that was incorporated in the

Dhaka Export Processing Zone in Bangladesh in 2010. The Group consists of four

companies: FCI (BD) Ltd, Talisman Ltd, Alliance Stitches Ltd and FCI Clothing Ltd.

They are producing high quality ready-to-wear garments at competitive prices. For

instance, they were the first fully Nike compliant factory in Bangladesh and the first to

produce Nike football jerseys.

They manufacture a wide range of soft-tailored and structured formal outerwear for many

of the world's top brands, including MandS, Zara, Nike and Alexon.

2.2: Present situation of Talisman Ltd:

They are renowned for a vibrant and dynamic management team helped by a committed

and motivated workforce of around 1500 employees. Their key strengths lie in our

constant monitoring of industry standards, technical know-how and technology, and

stringent quality control.

They operate within the international retail ethics policy. All our factories are fully

compliant on manufacturing standards, offering a clean, safe operator environment. They

equip them with modern machines and manufacturing systems, including the latest design

and CAD technology.

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2.3: Mission and Vision of Talisman Ltd:

Mission:

Talisman Ltd aims to continue building long-term and sustainable partnerships with their

customers.

They are achieving this in several ways, above and beyond providing exceptional

products. For instance, their customer service is second to none. They have regional sales

teams in the UK and in Bangladesh and dedicated account managers who provide an

excellent and professional service. As a well-run and well-managed organization, they

can offer versatility and the ability to meet tight deadlines under stringent compliance

requirements.

Vision:

They want to be seen as an innovative leader within their industry and are proactive in

promoting business practices at the cutting edge of change. Their innovative services in

product development, fabric sourcing and technical support help leading retailers deliver

their next product range with ease, confidence and quality assurance.

Their next ambition is to become a world-class manufacturer in supplying first-class

global brands with sports and performance wear and versatile woven products. To do so,

they are currently building a new, state of the art factory to expand their production. This

exciting development will encompass lean manufacturing and enable us to produce one

million garments every month - all at the high standards that the Group is known for.

2.4: Services package covers:

Product development

Fabric sourcing

Technical support

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2.5: Management hierarchy of Talisman Ltd:

Chief Operating Officer

General Manger

Asst. General Manager

Manager

Senior Executive

Executive

Officer

Director

Chairman

Vice Chairman

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2.6: Board of Directors:

Group Chairman M. A. Matin MBE

Vice Chairman Kaiser Rahman

Director Maher Matin

Director Juned Ahmed

Director Imran Ahmed

Group Chairman M. A. Matin MBE

Email: [email protected]

Director

Maher Matin


Cell: +8801726202081 / +447894491160

Chief Operating Officer

Md. Abdul Hadee


Cell: +8801713436017

Director (Sales and Marketing)

Anila Kularatne


Cell: +8801711595889

General Manager (Merchandising)

Rufus Malai


Cell: +8801730703687

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2.7: Factory Capacity and Locations: They supply to the exacting needs of their

international clients through their factories located in the Dhaka Export Processing Zone

(DEPZ).

Total Production Capacity:

Blouse 1,100,000 units

Ladies or Men’s Casual Jackets 550,000 units

Ladies Dress Pants 1,200,000 units

Ladies Casual Trouser 1,000,000 units

Men’s Casual Trouser 1,000,000 units

Skirt 1,400,000 units

Their Customers:

It has a wide range of renowned and successful clients: the following are just a few of our

many customers.

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2.8: Department of Talisman Ltd:

Name of the department of Talisman Ltd are as follows:

2.8.1: Store department: This department is engaged how they collect the different

types of fabrics and accessories materials. In talisman most of fabrics are collected from

Taiwan. And different types of accessories are collected from local and foreign market.

Most of accessories are collected from local market. They receive fabrics in some

procedures thorough unloading area zone. First they cooperate with suppliers through

email. When the truck comes at Talisman garments, store officer see tag number of truck

that is examined secret number. If it is correct, the store officer permits to open the lock.

At that time, different angels’ pictures are captured. Then these fabrics are kept at their

color basis.

2.8.2: Cutting department: It receives the order for cutting a garment style from the

production manager. Cutting order is and authorization by the production manager to cut

a given amount of styles from the spreads. It comes in form of a package file that carries

the following details.

• Sample average, weight of garment (basic fabric consumption only) and other

trims averages.

• Measurement sheet.

• Purchase order

• Fabric requisition sheet

• CAD mini marker

• Marker planning length of lay etc. Size ration and colors in which the patterns are

to be cut.

•

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2.8.3: Fabric inspection department:

In Talisman Ltd garments, four point grading system is followed in the fabric inspection

department. All fabrics are inspected under the 4 point inspection system. Penalty points

are assigned based on the standard fault size for every type of fault and colored stickers

are then put for the identification of serious defects in the subsequent process.

Fault description under the 4 point inspection system.

10% inspection of total fabric receiver (color wise).

Example: Total fabric ( 300 Yds received, 5 colors per colours 300 yds.)

Then Talisman check 300× 10% = 30 Yds/ Mtr per colour

Point allowed for defects:

1 inch to 3 inch = 1 point

3 inch to 6 inch = 2 poin

6 inch to 9 inch =3 point

9 over/ any hole = 4 point

Talisman can find out how to calculate defect point for 100 square Yds/ Mtrs.

Total defect × 36 × 100 =?

Actual Roll Length Actual Roll Length

Maximum points allowed:

0 to 20 points = A Grade

20 to 30 points = B Grade

30 to 40 points = Second grade

40 to above are rejected

0 to 26 points = A grade ( only for Zara)

26 to above are rejected ( only for Zara)

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2.8.4: Sample department:

In any export house, the sampling department is one of the most important departments

and it plays a vital in the uplifting of a unit.

Sampling departments directly coordinates with the merchandising and production

department. Sampling is done to see how the product will look like when produced in

bulk and to check whether there are any discrepancies in the pattern are made according

to the buyer’s specification.

Types of Samples:

I. Proto/Development sample: Proto sample is the abbreviation of designer’s idea or

it is the reflection of the first Techpack received from buyer. Only one garment is stitched

and it is sent to the buyer for the design approval. Fabric and/or trims instructions for the

garment may or may not be followed. The garment is produced in the base size as asked

by the merchandiser. Sometimes sketches are given according to the buyer’s requirement.

Samples are made as per the sketch and sent to the buyer through merchandiser. The

comments and the second Techpack is sent back by the buyer if there is any change in the

design.

II. Fit sample: Comments from the merchandiser are received regarding the shape, size

and fullness. Fit sample is based on the measurement list. Only base size given by the

buyer is made and fit is checked on mannequins. This sample is done on the actual fabric.

The main factors that are considered are:

a. Perfect style

b. Quality

c. Measurement

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III. Second fit Sample: Similar to the first fit sample, new fit sample of the basic size

is made with few changes according to the comments and new techpack sent back by the

buyer. Again, third or may be fourth fit sample can be made as required. If the sample is

approved, the buyer confirms the order to merchandiser and the specifications of the

fabric and trims along with the techpack are sent back to the merchant. If the fabrics and

trims supplier is not nominated by the buyer, the merchant sends one or two fabric

swatches and lab dip for approval. Finally, the approval of the fabric and trims is decided

by the mutual understanding between the buyer and merchandiser.

IV. Buyer size set: In this stage of sampling, actual fabric is used to stitch the garment.

If the fit sample is approved, buyer size set is produced in all colors and all sizes e.g. S,

M, L, XL, 2XL. Two samples of each size are made. One set is sent to the buyer and one

set remains at Manufacturer in standard case. Original trims and accessories are used. If

not approved then again size set is made.

V. PP sample (Pre- Production Sample): This sample is known as the Bible of

production in the garment industry. It is done for the base size of any color but the actual

fabric is used. If this sample is approved, buyer Q.A will wait for the Internal Size-Set

Sample i.e. Pilot run sample.

VI. Internal Size Set/Pilot run: Two pieces of jumped size to be taken with each

colour are offered to the buyers qis.

VII. GPT (Garment Performance Test) sample: Two or three garments are sent

for the GPT test if asked by the buyer.

VIII. Gold Seal Sample: Gold Seal sample is sent back by the buyer after the approval

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of size set sample. Seal is attached on this sample and it is maintained in the production

department and finishing department for the requirements of the quality parameters. Once

the sealer sample is received industry is not allowed to make any changes in the garment

and this sample should only be followed as the standard for production.

IX. TOP sample: The buyer Q.A. picks up one size or all set of sizes from the first bulk

production. It is considered to be the perfect sample with respect to all sizes and all

colors. In the base size the sample produced should be double. For example

* If not approved, then again TOP sample is produced.

* If approved, then bulk production of the garment starts.

X. Shipment Sample: Before the shipment, the buyer Q.A. picks up a carton randomly

and checks for the quality. Shipment can only happen after of the approval over shipment

sample.

2.8.5: Production department: Before starting the proper production the

production floor does a process of batch setting for the floor which is training the

operators for the new style that has to be produced bulk; this teaching session will go on

for about 2-4 days.

Once the cut parts is received from the cutting and sorting section then the parts are

prepared and assembled according to the line that is planned. After the assembling of

parts is done then there will be a line checking, where the shade matching and the

measurements are checked and sent.

During the process of garment making there exist two types of checking they are

In process checking.

End line checking

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2.8.6: Washing department:

Once the garment has been finished with all the operators then they are sent to the

washing department for the washing or finishing. And garments are checked according to

the buyer’s specifications. Hence it plays a vital role in the final feel and texture of the

garment which has to match the specifications of the buyer 100%.

2.8.7: Finishing department:

The finishing department is the department which comes after all the departments and it

plays an equally important role in the final appearance of the garment. This department

includes majority of the following steps

Trimming: This involves the removal of the extra threads from the garment at the

stitched areas.

Inspection: The inspection depends on the buyer requirement i.e; if the buyer

emphasizes for a 100% inspection then the Talisman has to do as specified.

Tagging: Once the garments are done with the inspection and complete pressing then

they send for tagging the labels and the labels include the size labels, price tags and

miscellaneous labels etc.

Packing: The packing is always done in the carton boxes and there are several criteria

for the garments.

2.8.8: Human resources department (HRD): It is one of the important

divisions of the Organization. It formulates the draft policies for the Organization that is

usually placed in the board meeting to accept. The division controls all the administrative

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

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

decisions are taken by the division. Talisman Ltd has 15 security guards working round

the clock to ensure the security of the organization.

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2.8.9: Logistic: Logistical services include repair maintenance facilities such as

plumbing and prompt trouble shooting. Permanent maintenance personnel ensure that

the products are in good condition.

1.8.10: Accounts and finance:

Talisman Ltd has a experienced team in this department headed by senior most cost and

management accounting professionals of Bangladesh.

2.8.11: Marketing and customer service:

Talisman Ltd strongest point is its efficient Marketing Service Department. This

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

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

decisions at his/her pace without feeling pressurized.

2.8.12: Quality control department:

This department always cares on quality. This department control by the Q.C. Managers.

They verify the quality as the buyer indicates their order. They audit all the process, pre-

production to packing and final audit. Q.C. process is indicated previous.

2.8.13: Commercial department:

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

Organization activities performed by Commercial department. Commercial Managers

cover all the activities.

2.8.14: Merchandising department:

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

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

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

This department is responsible for providing all the raw materials needed for all kinds of

garments products.

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Chapter – 03

3.0: Literature Review:

This section reviews the literature relevant of merchandising to the garment industry of

Bangladesh. There have been a few of studies examining the merchandising of the textile

and RMG industry in Bangladesh. Some researchers (Paul-Majumder, 2002; Khundker,

2002; Afsar, 2000) have focused on merchandising and its effects of garment industry.

These researchers also showed how the merchandising strategy is affected exports of

garments product.

Some brilliant entrepreneurship was one of the main reasons for this enormous growth of

garments industry in Bangladesh (Quddus, 1996). The extraordinary growth rates of

Bangladesh apparel industry was result of combination of Multifibre Agreeement (MFA),

merchandising strategy, favorable policy by the government with adequate infrastructure

(Martin and Bhardwaj, 2001). Similar patterns found on the rise of the garment industry

by other researchers (Haider, 2000).

The other study focused on the problem associated with the RMG industry; it was found

that infrastructure constraints and sometimes lack of suitable merchandising activities are

the main bottleneck (Bow, 2001; Sattar et al. 2005). But in case of capacity building

constraints much of the research to date has focused on job training and primary

education for workers. Khundker (2002) looked for capacity building through training

and introduction of skill related course, while World Bank funded on fashion and Design

Development; Rahman (2000) stressed on workers primary education for better

productivity through less mistakes, using sophisticated machines through experience and

being substitute in absence of others; Bhattacharya and Rahman (2000) asked for skill

development, facilitating technology transfer through short term incentive package.

30

Comparing with the rest of the world Bangladesh’s wages are among the lowest, but

surprisingly the productivity is also lowest among the rest, limiting any competitive

advantage that might be gained from low-cost production. Despite these low wages,

overall in the country the employment in this sector has helped to alleviate poverty

drastically, as well as empowering women. The average annual growth in per capita

income had steadily accelerated from about 1.6 per cent per annum in the first half of the

1980s to 3.6 percent by the latter half of the 1990s and 5.2 percent for the 1990s

(Khundker , 2002).

A big number of researches focused on quota issues of MFA and concentrated on

merchandising the ramification of post quota period. This includes different organizations

like The World Bank (2003, 2004, 2005) through separate individual study, United

Nations (2005), to individual researcher Bhattacharya and Rahman (2000), Sattar et al.

(2005), Minor (2002), Yang (2004), Hayashi (2005), Islam (2001). All of these studies

predicted more or less, extreme to moderate downfall for the Bangladesh apparel exports

and merchandising activities after the quota free period. However there are two different

outcomes of these studies. The Western researchers gave negative outcome of

merchandising, on the other hand local researcher’s outcome was challenging, if not

optimistic.

For example, a Swiss consultant, Gherzi Textile Organization, commissioned by the

Bangladesh Ministry of Commerce, predicted bad scenario unless Bangladesh improved

its infrastructure, merchandising strategy and suggested that exports would decrease by

$2 billion and around 800,000 jobs would disappear. The World Bank (Sattar , 2005),

using GTAP 1 model, predicted export shocks and economic welfare losses for

Bangladesh. Over three-to-four years, the model predicted, the economic welfare costs

could run to $370 million. In terms of jobs, Bangladesh losses could be significant – 17

percent of the current workforce in apparel and 5 percent in textiles.

On the other hand, local researchers Islam (2001), Bhattacharya and Rahman (2000),

Khundker (2002) took cautiously merchandising approach in analyzing the post MFA

situation. Though everybody showed concern about the fall of the garment export, their

studies concentrated on merchandising activities and infrastructure development, survival

31

and growth by policy reforms, compliance and labor law implementation but with local

tacit knowledge.

Talisman Ltd is a growing garment in our country that was established in 2010. There

have no any study of it’s about merchandising strategy. Hence merchandising department

is most important in a garments industry than others department. So I tried show that

how they conducted their present merchandising system and what steps have to take for

the development of merchandising system of this company.

32

Chapter – 04

4.0: Findings and Analysis:

Here six merchandisers are working with different Buyer. At first the Buyer gives them

an inquiry sheet with measurement chart sketch of sample. Then they make a

development sample and send it to the buyer. Buyer makes comments on it, it is ok/ not.

Sometimes they successful, sometimes they being fail. If they success they order Yarn,

Trims, and accessories. In front of their shipment time they are trying to arrange

everything as early as possible. When all items are in store then yarn is given for 2/3

pieces of garments sample send for make size set. When size set made then they measure

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

merchandiser just follow up his order. During that total time merchandiser inform his

buyer what is the condition of his product. In my 70 days working period I have also

follow up whole worth order.

4.1 : Merchandising Processes of Talisman Ltd: Merchandising of Talisman

Ltd garments have some chronological processes. These are given below-

4.1.1: Sequence of Sampling:

Serial Number

Name of Sample Explanation

I. 1st Pattern The first physical version of any garment as per the artwork done by designer and/or developer.

II. 2nd Pattern Usually designer/ developer always ask for some changes to the first pattern. Second pattern is made as per comments.

III. Counter Sample Where first pattern is made on designers artwork, Counter sample is to make not on designer’ start work, has to follow another sample given by the merchandiser.

33

IV. Sales man Sample Sample is made when price is confirmed and orders are on speculation, usually in L size in all color combinations of expected order. Buyer arranges a meeting with its customer and record their response on order quantity per color, size etc. And finally place order to their vendor.

V. Photo Sample Samples are made with actual color and material to be worn by the models on the event of shooting for catalog.

VI. Approval Sample (

Size set, Mock up)

It consists of 1 piece from each size for each color combination. Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve, collar, neck etc and some accessories.

VII. Pre production

Sample

When material for bulk production arrived, factory makes a sample with the actual material and sends to buyer.

VIII. Production Sample It is a reference to the buyer that the bulk is being produced as per specification. Buyer wants to be assured that correct material is sourced and line workmanship confirm to the quality.

IX. Shipping Sample A sample is kept from every pre shipping inspection to be referred, if required, after the order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is important.

4.1.2: Swatch: Swatch is a presentation of all the materials is (Fabric and Accessories)

used for any specific style/order. Usually small piece of fabric and each piece of

accessories are attached in board paper in a systematic manner. Swatch is very important

for production line to make the correct construction of a garment and QC department

ensures it. Concerned merchandiser should confirm/approve the swatch.

4.1.3: Trims: Trims cover all the items used in the garment except the basic fabric.

There are hundreds of items used to manufacture the garments, proper selection of trims

34

and its quality are very important for styling, otherwise the garment may be rejected or

returned by the customers.

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

Zipper/Fastener, Sewing Thread, Main Label, Flag Label, Button, Elastic, Eyelet, Tags,

Tag pin, Plastic clip, Sticker, Hanger, Poly bag, Scotch tape, Gum tape, Photo Board,

Back Board, Tissue, and Carton etc.

4.1.4: Others activities of merchandisers:

Activities Name Way of completion work

Communication of International Business Telephone Conversation, Fax/ E-Mail,

Formal Meeting, Lunch and Dinner

The Information Normally Get About An

Order.

Factory Loading, Factory Capacity,

Factory History, Factory Setup Details,

Market Reputation, Type of Buyers

Dealing

How a merchandiser meet buyers

requirements.

Merchandiser detail to buyer about factory profile.

Merchandiser Understand the Order sheet.

Arrange the all component for order execution.

Production Tracking.

Timely Shipment

Method of purchasing raw materials:

Lab-Dip, Approval the Lab-Dip, Collect

price Quotation, Negotiation, Back to Back

L/C transfer, Delivery Chelan received.

35

Procedure of Imported goods Price Inquiry (Quotation), L/C Opening,

Received Shipping Advice, Facing

Customs, Closing Transaction

How the accepted order is passed on the

floor.

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

Make production schedule

Trim and Accessories Card Prepare

Make well finishing according to buyer requirement in case of –

Labeling, Zippering, Buttoning, Ironing, Packaging, Cartooning,

How a merchandiser track his production in

the factory.

Follow-up yarn supply in factory, Knitting

follow-up, Linking follow-up, Accessories

supply, Finishing follow-up, Ready for

export,

36

Merchandising department of Talisman Ltd well experienced but I have got some

findings during my internship period when I worked with merchandising dept. These

findings have point out by discussing with GM of merchandising department, Manager

of merchandising department, Assistant Manager and employee of merchandising and

other departments to the following questions. These findings are as follows-

Q‐1: Which skill do you prefer to recruit employees in merchandising

department?

The most of the Merchandisers may technically sound enough. But the main lacking is

that they are weak in "Management Skills". As a result, the executives of merchandising

department in Talisman Ltd feel the lacking about “Management Skill”.

Q-2: The working environment of Talisman Ltd is good for merchandisers.

From the survey it has been seen that, 0 % of total sample size is strongly disagree,10% is

disagree, 23% is neither agree nor disagree or neutral, 42% is agree and 25% is strongly

agree. So from the pie chart, we can say that most of the respondents are satisfied about

working environment this garment.

37

Q- 3: Talisman Ltd provides extra facility for their merchandisers.

From the survey it has been seen that, 0% of total sample size is strongly disagree,10% is


agree. So we see that merchandiser’s employee get more salary or others facilities than

others.

Q- 4: The merchandising department maintains proper order-follow up system.



agree. So we can say that most of Talisman Ltd clients are satisfied proper order follow

up system.

38

Q- 5: All merchandisers have clear about their job responsibilities.

From the survey it has been seen that, 10% of total sample size is strongly disagree,20%

is disagree, 40% is neither agree nor disagree or neutral, 20% is agree and 10% is strongly

agree. Here it is confused that only 30% respondents are agree this statement, so here

satisfactory level is inferior.

Q- 6: Talisman Ltd should not take necessary steps to improve the communication skills of merchandisers.



agree. Here satisfactory level is also inferior.

39

Q- 7: Talisman Ltd does not need of merchandising skill development training program for their merchandisers.



agree. So here most respondents are indifference or neutral. So Talisman should emphasis

this matter.

Q- 8: Merchandisers are independent to negotiate with buyers.



agree. So, Talisman should focus that merchandisers can negotiate independently of their

buyers.

40

Q- 9: Salary structure for merchandisers is good enough comparatively others.

From the survey it has been seen that, 10% of total sample size is strongly disagree, 20%


agree. So we can conclude that salary structure of merchandisers is more than others

employee.

Q- 10: The physical facilities at Talisman Ltd are visually appealing.



agree. So Talisman should focus visual facilities like as transport facilities.

41

Q- 11: When Talisman Ltd Promise to do something, they do timely.



agree. So from the survey we are understood that customers are satisfied about

commitment of the employee of Talisman Ltd.

Q- 12: When a Client has a problem; Talisman Ltd shows a sincere interest in solving it.

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

sample size is strongly disagree,0% is disagree, 35% is neither agree nor disagree or

neutral,35% is agree and 30% is strongly agree. So from the survey we are understood

that most customer of the Talisman Ltd is neutral about their interest to solving the

problem.

42

Q- 13: Talisman Ltd insists on error-free records.

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

total sample size is strongly disagree,14% is disagree, 43% is neither agree nor disagree

or neutral, 29% is agree and 14% is strongly agree. So from the survey it is understood

that most of the customers are not express their opinion about error-free record of

Talisman Ltd employees.

Q- 14: Personnel in Talisman Ltd always are willing to help Clients.

This is very important question for customer satisfaction level of Talisman Ltd here, it

has been seen that, 6% of total sample size is strongly disagree,11% is disagree, 17%

is neither agree nor disagree or neutral, 23% is agree and 43% is strongly agree. So

employees of the Talisman Ltd. Intensions are to always help the clients.

43

Q- 15: Personnel in Talisman Ltd never are too busy to respond to Clients' requests.

It is very important question for customer satisfaction. Here, it has been seen that, 9% of

total sample size is strongly disagree,6% is disagree, 20% is neither agree nor disagree

or neutral, 34% is agree and 31% is strongly agree. So we are understood that most of

the proportions of the customers are satisfied about the willingness of the employee of

Talisman Ltd for solution client’s problem.

Q- 16: Clients of Talisman Ltd feel safe in their dealings with the Organization.



agree. From this survey we understood that most of the clients feel safe dealings with the

organization.

44

Q- 17: Personnel in Talisman Ltd are consistently courteous with Clients.



agree. It shows that personnel of Talisman Ltd are courteous with clients.

Q- 18: Talisman Ltd gives client’s individual attention.

From the survey it has been seen that, 0% of total sample size is strongly disagree, 5% is


agree. It shows that Talisman Ltd Company is satisfactory level with individual client’s

attention.

45

Q- 19: Talisman Ltd has operating hours convenient to all their clients.

Here, it has been seen that, 0% of total Sample Size is strongly Disagree, 20% is Disagree, 34%is

Neither Agree nor Disagree or Neutral, 25% is Agree and 21% is Strongly Agree. So it has been

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

Q- 20: The personnel of Talisman Ltd understand the specific needs of their Clients.

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

total sample Size is strongly Disagree,20% is Disagree, 27% is Neither Agree nor

Disagree or Neutral, 28% is Agree and 25% is Strongly Agree. From the survey it has

been seen that every staff of the Talisman Ltd has personal attention to their client.

46

4.2: Synopsis of the Findings:

In this survey, satisfaction is measured along twenty different attributes of Talisman Ltd

services.

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

considered for an average organization. But in terms of Talisman Ltd, which is a world-

class service provider worldwide, the results were highly dissatisfactory. Only 24% of the

respondents were highly satisfied and were loyal to the organization. In total, 31% of the

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

the respondents were found on the neutral and highly dissatisfied with the organization.

This number represents the customers that perceived the organization as inferior. The

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

satisfaction. Based on the above results, it can be said that Talisman Ltd should reconsider

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

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

the customers and launch new products that fully meet customer expectations.

47

Chapter - 5

5.0: Recommendation:

The garments sector plays a very important role to earn foreign exchange to our country,

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

the exporting of garments product.

Talisman Ltd is very established garments exporting buying house. Though a large

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

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

merchandising department of this garment.

• The authority should improve their knowledge about merchandising management.

• A specific department is needed for training and research, which will provide

adequate training and research facilities for personnel for development.

• Talisman Ltd should follow a specific inventory costing method, in the context of

rising trend in raw materials price.

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

of consumers and unlimited interactions.

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

product relationships and consumer behavior.

• Understand content, products and interactions with global customers, regardless of

the language.

• Should automatically update categories when new products are added or deleted

from the catalog.

48

Chapter - 06

6.0: Conclusion:

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

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

international business. The experienced merchandiser is being demanded in every

country. It may an honorable professional for educated persons. For developing garment

sector merchandising management system will have to focuses on modern system. The

future of garment industries is brighter in the era of globalization. Ultra modern

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

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

standard latest technology in our ready made garment sector. Management of

merchandising is a big job and is a complex one. The study “Merchandising Management

of Talisman Ltd revealed that Merchandiser is most valuable human resources for the

progress of the organization. For the development of these valuable resources there are

many factors involved. To increase the productivity of an organization effectively,

efficient merchandiser will have to develop. Preparation of future business managers

should provide for the development of managerial skills relating to merchandiser

function.

The RMG sector is expected to grow despite the global financial crisis of 2009. As China

is finding it challenging to make textile and foot wear items at cheap price, due to rising

labor costs, many foreign investors, are coming to Bangladesh to take advantage of the

low labor cost.

49

Bibliography

Rahman, Rushidan Islam, 2006, Industrialization in a Labour Surplus Economy: The

Apparel Sector in Bangladesh, Pratima Paul-Majumdar and Binayak Sen, Dhaka.

Rahman, Mustafizur, Ananya Raihan, 2007, China's Accession to the WTO:

Consequences for Bangladesh's Export Oriented RMG Sector, Center for Policy

Dialogue, Dhaka.

Rahman, Shahidur, 2009, “Global Shift: Bangladesh Garment Industry in Perspective,”

Asian Affairs, Volume XXI, Number 1, page 75-91.

http://www.talismanbd.com/November20,2012,9:30pm.

http://www.fcibd.com/Novemver 23,2012,10:25pm.

50

Appendix

Questionnaire

Respondent Name:

Post:

Address:

Phone no.:

Time and Date of Interview:

I, the student MBA program student of Bangladesh University of Professionals,

have under taken a study on “Merchandising Strategy of Talisman Limited Garments” as

a requirement case. It would be highly appreciable if you provide me information in this

regard and I assure you that all the data will be used for academic purposes only and will

be kept confidential.

1. Which skill do you prefer to recruit employees in merchandising

department? (1)

I. Technical Skill

II. Management Skill

51

A-01

2. Give your agreement in a scale of +2 (Strongly agree) to -2 (Strong disagree) regular in

following statements. Please give only one tick mark which is appropriate of you.

Questions Scale

-2 -1 0 +1 +2

I. Working environment is good of Talisman Ltd

for merchandisers.

II. Talisman Ltd provides extra facility for their

merchandisers.

III. The merchandising department maintains proper

order-follow up system.

IV. All merchandisers have clear about their job

responsibilities.

V. Talisman does not take necessary steps to improve the

communication skills of merchandisers.

VI. Talisman Ltd does not need of merchandising

skill development training program for their

merchandisers.

VII. Merchandisers are independent to negotiate

with buyers.

VIII. Salary structure for merchandisers is go enough

comparatively others.

IX. The physical facilities at Talisman Ltd are visually

52

appealing.

X. When Talisman Ltd Promise to do something, they do

timely.

XI. When a Client has a problem, Talisman Ltd shows a

sincere interest in solving it.

XII. Talisman Ltd insists on error-free records.

XIII. Personnel in Talisman Ltd always are willing to help

Clients.

XIV. Personnel in Talisman Ltd never are too busy to

respond to Clients' requests.

XV. Clients of Talisman Ltd feel safe in their dealings with

the Organization.

XVI. Personnel in Talisman Ltd are consistently courteous

with Clients.

XVII. Talisman Ltd gives client’s individual attention.

XVIII. Talisman Ltd has operating hours convenient to all

clients.

IX. The personnel of Talisman Ltd understand the specific

needs of their Clients.

53

T ab l e - 1 : B uy e r i n s p e c t i n g g a r me n t s c h a r t .

54

Figure-1: Process of Transaction of Letter of Credit (LC)

55

Figure-2: Hanger band

Figure-3: Hand cutter machine.

56

Figure-4: Digital auto cutter machine.

Figure-5: Cutter machine.

57

Figure-6: Relax Machine

Figure-7: Preparing Marker

58

Figure-8: Pattern.

Figure-09: Sewing Floor.

merchandising strategy of talisman ltd garments

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