Internship Report

On

“A PERFORMANCE EVALUATION STUDY OF

MERCHANDISERS OF EPYLLION GROUP

- A GARMENTS INDUSTRY”

Internship Report

ON

“A performance evaluation study of Merchandisers of

Epyllion Group - A Garments industry”

PREPARED FOR

RAZIA SULTANA SUMI

Lecturer

Department of Business Administration

Stamford University Bangladesh

PREPARED BY

S. M. SHAHIDULLAH MAHMUD

ID#BBA 02808360

28th ‘A’ (MKT)

Stamford University Bangladesh

Letter of Transmittal

September 09, 2009

To,

The Supervisor

Internship Program

Dept. of Business Administration

Stamford University Bangladesh

Subject: Submission of Internship report

Dear Madam,

It gives me enormous pleasure to submit the internship report on “A performance

evaluation study of Merchandisers of Epyllion Group - A Garments

industry” as per the supervisor’s instruction .I expect this report to be informative as

well as comprehensive.

I demonstrate my best mark of respect and gratitude to you for providing me the

opportunity to do my internship. I feel the 9 weeks experience will facilitate me a lot in

my future career life. For any further explanations about the report please summon me, I

will be gladly available to clarify the ins and outs.

Sincerely Yours

S. M. SHAHIDULLAH MAHMUD

ID#BBA 02808360

28th ‘A’ (MKT)

Stamford University Bangladesh

Declaration

I, S. M. SHAHIDULLAH MAHMUD here by declare that this internship report on “A

performance evaluation study of Merchandisers of Epyllion Group - A

Garments industry” submitted by me to Stamford University Bangladesh, in partial

fulfillment of the requirement for the degree of BBA is an original work. It has not been

submitted earlier, either partly or wholly to any other University or Institution for the

award of my Degree, Diploma, Fellowship or other similar titles or prizes and that the

work has not been published in any journal or magazine.

S. M. SHAHIDULLAH MAHMUD

ID#BBA 02808360

28th ‘A’ (MKT)

Stamford University Bangladesh

Certificate

This is to certify that the internship report on “A performance evaluation study of

merchandisers of Epyllion Group - A Garments industry” submitted in

partial fulfillment of the requirement for the degree of Bachelor of Business

Administration of Stamford University Bangladesh. S. M. SHAHIDULLAH

MAHMUD, ID-BBA 02808360.Has worked under my supervision and guidance and

that no part of this has been submitted for the award of any other Degree, Diploma,

Fellowship or other similar titles or prizes and that the work has not been published in

any journal or magazine.

Certified

RAZIA SULTANA SUMI

Lecturer

Department of Business Administration

Stamford University Bangladesh

Acknowledgement

At first, I would like to express to my gratitude to almighty Allah for enabling me the

strength and opportunity to complete the report in the schedule time successfully.

I am deeply indebted to my supervisor RAZIA SULTANA SUMI, Lecturer,

department of business administration, studies for her stimulating inspiration, kind

guidance, valuable suggestions & sagacious advices during my internship period. Her

suggestions & guidance have made the report in a good manner.

I express my sincere gratitude to M. R. Farid Commercial Manager of Epyllion Group,

who has guided me by giving his valuable suggestions. Special thanks to Mr. M. A.

Rahim Dhali, GM of Commercial department, Mr. Al-Amin Merchandiser in Epyllion

Group who has provided me a lot of information and his valuable knowledge &

suggestions.

I would like to express my deep sense of gratitude and thanks to Mr. M. Aminul Islam –

General Manager of HR in Epyllion Group, Md.Babar Chowdhury Assistant Manager of

HR in Epyllion Group, for their guidance, valuable knowledge & suggestions during my

internship period. I would like to convey my best regards to all the officials and workers

of the Epyllion Group. I especially like to thank my parents & all my family members for

extending their helping hand at a time when I need it most. I remember all the care and

love of my friends who made my every existence more meaningful and worthy.

Table of Contents

S L .No Topic Page No

Chapter One - Garments at a Glance

1.1: What is garments

1.2: History of garments in the world

1.3: Garments in Bangladesh

1.4: Export history of Bangladesh

1.5: Requirements to build a garments factory

1.6: Formality to be a member of BGMEA

1.7: SWOT analysis of garments industry

Chapter Two - Overview of Epyllion

Group

2.1: Brief description of Epyllion Group

2.2: Objectives of Epyllion Group

2.3:Corporate Information

2.4: Organizational chart

2.5: Investment type

2.6: Export product categories

2.7: Growth of Epyllion Group

2.8: Company nature

2.9: Bank references

2.10: Main Buyers

2.11: Certification & Achievement

2.12: Organization’s with whom the business is

available

2.13: Future Projects

Chapter Three - Merchandising dept.

that I concerned for the study

3.1: Different functional department of Epyllion

Group

3.2: Introduction of Merchandising

3.3: Need of merchandiser

3.4: Responsibility of merchandiser

3.5: Chronological process of merchandising

3.6: Sequence of sample

3.7: First pattern

3.8: Second pattern

3.9: Counter sample

3.10: Sales man sample

3.11: Photo sample

3.12: Approval sample

3.13: Size set

3.14: Mock up

3.15: Pre-Production sample

3.16: Production sample

3.17: Shipping sample

3.18: Swatch

3.19: Trims

3.20: Communication in International Business

3.21: The information normally get about an order

3.22: How a merchandiser meet buyers

requirements

3.23: Methods of purchasing raw materials

3.24: Procedures of imported goods

3.25: How does the accepted order is passed on the

floor

3.26: How a merchandiser track his/her production.

3.27: Conclusion

Chapter Four - Body of the Study

4.1: Introduction of the study

4.2:Background of the study

4.3: Scope of the study

4.4: Objectives of the study

4.5: Methodology of the study

4.6: Limitations of the study

Chapter Five- Findings

5.1: SWOT analysis of Epyllion Group

5.2: Overall findings

5.3:Some findings of Merchandising Dept.

Chapter Six- Recommendation and

conclusion

6.1: Recommendations

6.2: Conclusion

Bibliography

Appendices

Executive Summery

The ready-made garment sector (RMG) is one of the largest industrial sectors in the

economy of Bangladesh. The sector contributes more than 75% of Bangladesh‘s total

export earnings. To a large extend, the future economic development of Bangladesh will

be correlated with the performance of the RMG industry.

Starting in late seventies, the apparel industry of Bangladesh is in a good position now.

Business is increasing day by day .To about 30 countries around the world, Bangladesh

presently exports ready-made garments, with over 45% to USA, 50% to the countries in

EU and 3% to Canada and rest to the other countries of the world. Country's apparel

export has been growing on an average at the rate of 25% for last several years.

Bangladesh ranked 6th largest apparel exporter to the USA and the EU last year.

There are about 2500 export oriented ready-made garment industry in Bangladesh those

are clustered over mainly Dhaka and Chittagong. Such distribution offers buyers

advantage to choose the right manufacturers and exporters, throughout the year, with

minimum effort.

Merchandising is the major key dept. in a garments industry and merchandiser is the most

responsible employee of a garments industry. Merchandising dept. or merchandiser deal

with buyer and negotiate the other factors with the buyers. Focusing the delivery of order

they determine a production plan and distribute it in the factory. Company’s success &

failure, gain & loss depend on merchandising dept. or merchandiser. The future of

garments industry mostly depends on the performance merchandising dept. or

merchandiser in the case of a fruitful dealings and negotiations with buyers.

In Epyllion Group, there is good practice of merchandising. Performance of

merchandisers of Epyllion Group is also good. Epyllion Group is progressing year by

year for a good team work of merchandisers. Merchandisers are also keeping a good

adjustment with others department. Merchandisers of Epyllion Group are always active to

meet the buyer requirements. Merchandisers always try to expand their market share in

the world garments market. Merchandisers of Epyllion Group are also aware to negotiate

with world recognized branded companies and well established buying houses.

Currently, the RMG sector is facing critical operational challenges evoked and

aggravated through rising production costs and decreasing product prices. The

international market for garment products is a buyer’s market. Consequently, efficient

utilization of existing resources is paramount to improve management structures,

productivity and help the local industry to remain competitive

Chapter One - Garments at a Glance

1.1: What is garment? :

Garment means dress that is use to wear. Garments may be oven, sweater or knitwear. In

garments industry it is produced at a large scale.

1.2: History of garments in the world:

In the 1950s, labors in the Western World became highly organized; forming trade

unions. This and other changes provided workers greater rights including higher pay;

which resulted in higher cost of production. Retailers started searching for places where

the cost of production was cheaper. Developing economies like Hong Kong, Taiwan and

South Korea presented themselves as good destinations for relocations because they had

open economic policies and had non-unionized and highly disciplined labor force that

could produce high quality products at much cheaper costs.

In order to control the level of imported RMG products from developing countries into

developed countries, Multi Fiber Agreement (MFA) was made in 1974. The MFA

agreement imposed an export rate 6 percent increase every year from a developing

country to a developed country. It also allowed developed countries to impose quotas on

countries that exported at a higher rate than the bilateral agreements. In the face of such

restrictions, producers started searching for countries that were outside the umbrella of

quotas and had cheap labor. This is when Bangladesh started receiving investment in the

RMG sector. In the early 1980s, some Bangladeshis received free training from Korean

Daewoo Company. After these workers came back to Bangladesh, many of them broke

ties with the factory they were working for and started their own factories

1.3: Garments in Bangladesh:

Garment Industry Large-scale production of readymade garments (RMG) in organized

factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual

tailors made garments as per specifications provided by individual customers who

supplied the fabrics. The domestic market for readymade garment, excepting children

wears and men's knit underwear was virtually non-existent in Bangladesh until the sixties

Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an

export-oriented industry although; the domestic market for RMG has been increasing fast

due to increase in personal disposable income and change in life style. The sector rapidly

attained high importance in terms of employment, foreign exchange earnings and its

contribution to GDP.

With the growth of RMG industry, linkage industries supplying fabrics, yarns,

accessories, packaging materials, etc. have also expanded. In addition, demand for

services like transportation, banking, shipping and insurance has increased. All these

have created additional employment.

In the 1980s, there were only 50 factories employing only a few thousand people.

Currently, there are 4490 manufacturing units. The RMG sector contributes around 75

percent to the total export earnings. In 2007 it earned $9.35 billion. This sector also

contributes around 13 percent to the GDP, which was only around 3 percent in 1991. Of

the estimated 2 million people employed in this sector, about 70 percent of them are

women from rural areas. USA is the largest importer of Bangladeshi RMG products,

followed by Germany, UK, France and other EU countries.

The RMG industry is highly dependent on imported raw materials and accessories

because Bangladesh does not have enough capacity to produce export quality fabrics and

accessories. About 90% of woven fabrics and 60% of knit fabrics are imported to make

garments for export. The industry is based primarily on sub-contracting, under which

Bangladeshi entrepreneurs work as sub-contractors of foreign buyers. It has grown by

responding to orders placed by foreign buyers on C-M (Cut and Make) basis. During its

early years, the buyers supplied all the fabrics and accessories or recommended the

sources of supply from which Bangladeshi sub-contractors were required to import the

fabrics. However, situation has improved. At present, there are many large firms, which

do their own sourcing.

1.4: Export history of Bangladesh:

The hundred percent export-oriented RMG industry experienced phenomenal growth

during the last 15 or so years. In 1978, there were only 9 export-oriented garment

manufacturing units, which generated export earnings of hardly one million dollar. Some

of these units were very small and produced garments for both domestic and export

markets. Four such small and old units were Reaz Garments, Paris Garments, Jewel

Garments and Baishakhi Garments. Reaz Garments, the pioneer, was established in 1960

as a small tailoring outfit, named Reaz Store in Dhaka. It served only domestic markets

for about 15 years. In 1973 it changed its name to M/s Reaz Garments Ltd. and expanded

its operations into export market by selling 10,000 pieces of men's shirts worth French

Franc 13 million to a Paris-based firm in 1978. It was the first direct exporter of garments

from Bangladesh. Desh Garments Ltd, the first non-equity joint-venture in the garment

industry was established in 1979. Desh had technical and marketing collaboration with

Daewoo Corporation of South Korea. It was also the first hundred percent export-

oriented company. It had about 120 operators including 3 women trained in South Korea,

and with these trained workers it started its production in early 1980. Another South

Korean Firm, Youngones Corporation formed the first equity joint-venture garment

factory with a Bangladeshi firm, Trexim Ltd. in 1980. Bangladeshi partners contributed

51% of the equity of the new firm, named Youngones Bangladesh. It exported its first

consignment of padded and non-padded jackets to Sweden in December 1980.

Within a short period, Bangladeshi entrepreneurs got familiar with the world apparel

markets and marketing. They acquired the expertise of mobilizing resources to export-

oriented RMG industries. Foreign buyers found Bangladesh an increasingly attractive

sourcing place. To take advantage of this cheap source, foreign buyers extended, in many

cases, suppliers' credit under special arrangements. In some cases, local banks provided

part of the equity capital. The problem of working capital was greatly solved with the

introduction of back-to-back letter of credit, which also facilitated import of quality

fabric, the basic raw material of the industry. The government assigned high priority to

the development of RMG industry

Till the end of 1982, there were only 47 garment manufacturing units. The breakthrough

occurred in 1984-85, when the number of garment factories increased to 587. The

number of RMG factories shot up to around 2,900 in 1999. Bangladesh is now one of the

12 largest apparel exporters of the world, the sixth largest supplier in the US market and

the fifth largest supplier of T-shirts in the EU market. The industry has grown during the

1990s roughly at the rate of 22%. In the past, until 1980, jute and jute goods topped the

list of merchandises exported from Bangladesh and contributed more than 50% of the

total export earnings. By late 1980s, RMG exports replaced jute and jute goods and

became the number one in terms of exports.

In 1983-84, RMG exports earned only $0.9 billion, which was 3.89% of the total export

earnings of Bangladesh. In 1998-99, the export earnings of the RMG sector were $5.51

billion, which was 75.67% of the total export earnings of the country. The net foreign

exchange earnings were, however, only about 30% of the figures quoted above because

approximately 70% of foreign exchanges earned were spent in importing the raw

materials and accessories to produce the garments exported.

Both external and internal factors contributed to the phenomenal growth of RMG sector.

One external factor was the application of the GATT-approved Multi Fiber Arrangement

(MFA) which accelerated international relocation of garment production. Under MFA,

large importers of RMG like USA and Canada imposed quota restrictions, which limited

export of apparels from countries like Hong Kong, South Korea, Singapore, Taiwan,

Thailand, Malaysia, Indonesia, Sri Lanka and India to USA and Canada. On the other

hand, application of MFA worked as a blessing for Bangladesh. As a least developed

country, Bangladesh received preferential treatment from the USA and European Union

(EU). Initially Bangladesh was granted quota-free status. To maintain competitive edge

in the world markets, the traditionally large suppliers/producers of apparels followed a

strategy of relocating RMG factories in countries, which were free from quota restrictions

and at the same time had enough trainable cheap labor. They found Bangladesh as a

promising country. So RMG industry grew in Bangladesh

By 1985, Bangladesh emerged as a strong apparel supplier and became a powerful

competitor for traditional suppliers in the US, Canadian and European markets. Since

1986, Bangladesh has been increasingly subjected to quota restrictions by USA and

Canada. RMG industry suffered setback in a number of countries in the 1980s. Some

countries had internal problems, for example, Sri Lanka; and some other countries of

Southeast Asia experienced rapid increase in labor cost. Buyers looked for alternative

sources. Bangladesh was an ideal one as it had both cheap labor and large export quotas.

The EU continued to grant Bangladesh quota-free status and GSP privileges. In addition,

USA and Canada allocated substantially large quotas to Bangladesh. These privileges

guaranteed Bangladesh assured markets for its garments in USA, Canada and EU. The

domestic factor that contributed to the growth of RMG industry was the comparative

advantage Bangladesh enjoyed in garment production because of low labor cost and

availability of almost unlimited number of trainable cheap labor. The domestic policies of

the government contributed to the rapid growth of this sector. The government provided

various kinds of incentives such as duty-free import of fabrics under back-to-back L/C,

bonded warehouse facilities, concessionary rates of interest; cash export incentive, export

processing zone facilities, etc. The government also took a number of pragmatic steps to

streamline export-import formalities.

1.5: Requirements to build a garments factory:

List of Minimum Requirement to Built a New Garments factory:

Trade License

Bank Account

Company registration by Joint Stock Company

Company profile

Project and working capital loan sanction from bank

Project profile

TIN & VAT certificate

Project permission letter from board of investment govt. of Bangladesh

Factory floor installation

EPB registration certificate from EPB

IRC & ERC certificate from CCI

Fire insurance

Bond license

Factory layout plan

Environment certificate

Fire certificate

BGMEA membership certificate

Labor certificate

Pass book for EPZ and Chittagong customs

Chamber of Commerce certificate

Electricity, gas WASA, boiler connection in the factory building

Telephone, FAX and computer with internet connection in the factory

Compliance

Appointments of worker, staff and executives as per company policy

1.6: Formality to be a member of BGMEA:

First, collect the registration form from BGMEA after depositing Tk.200 to BGMEA

account related bank. Then submit to the following documents with completed

registration form.

Required documents are as follows:

Trade license

Board of Investment certificate “BOI” ( Registration Copy)

Machineries Invoice

Bill of lading (B/L) entry

Import L/C (ILC) copy

Photo draft of all directors

Article of Memorandum

Bank solvency Certificate

Fire Insurance

Factory Layout

1.7: SWOT analysis of garments industry:

A SWOT analysis is overall evaluation of the company’s Strength, Weakness,

Opportunities and Threat. Strength and Weakness are internal value creating (or

destroying) factors such as assets, skills or resources etc. And Opportunities and Threat

are external value creating (or destroying) factors a company unable to control.

1.7.1 Strengths:

Considerable Qualified/keen to learn workforce available at low labor

charges. The recommended minimum average wages (which include

Traveling Allowance, House Rent, Medical Allowance, Maternity Benefit,

Festival Bonus and Overtime Benefit) in the units within the Bangladesh

Export Processing Zones (BEPZ) are given as below; on the other hand,

outside the BEPZ the wages are about 40% lower:

Energy at low price

Easily accessible infrastructure like sea road, railroad, river and air

communication

Accessibility of fundamental infrastructure, which is about 3 decade old,

mainly established by the Korean, Taiwanese and Hong Kong Chinese

industrialists.

FDI is legally permitted

Moderately open Economy, particularly in the Export Promotion Zones

GSP under EBA (Everything But Arms) for Least Developed Country

applicable (Duty free to EU)

Improved GSP advantages under Regional Cumulative

Looking forward to Duty Free Excess to US, talks are on, and appear to be on

hopeful track

Investment assured under Foreign Private Investment (Promotion and

Protection) Act, 1980 which secures all foreign investments in Bangladesh

OPIC's (Overseas Private Investment Corporation, USA) insurance and

finance agendas operable

Bangladesh is a member of Multilateral Investment Guarantee Agency

(MIGA) under which protection and safety measures are available

Adjudication service of the International Centre for the Settlement of

Investment Dispute (ICSID) offered

Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD

& Cellular services

Weakness of currency against dollar and the condition will persist to help

exporters

Bank interest@ 7% for financing exports

Convenience of duty free custom bonded w/house

Readiness of new units to enhance systems and create infrastructure accordant

with product growth and fast reactions to circumstances

1.7.2 Weaknesses:

Labor productivity in the RMG sector of Bangladesh is lower than many of its

competitors.

Bangladeshi workers are not as efficient as those of Hong Kong, South Korea

and some other countries and in most factories, technologies used are not the

latest.

In addition to the fact that the industry is vulnerable because it is highly

dependent on the imported raw materials

The infrastructure in the country is deplorably underdeveloped.

Problems in power supply, transportation and communication create serious

bottlenecks.

Inadequate port facilities result in frequent port congestion, which delays

shipment.

All these increase the lead-time to process an order, i.e. the time from the date

of receiving an order to the date of shipment

Lack of marketing tactics

The country is deficient in creativity

Absence of easily on-hand middle management

A small number of manufacturing methods

Low acquiescence: there is an international pressure group to compel the

local producers and the government to implement social acquiescence. The

US GSP may be cancelled and purchasing from US & EU may decrease

significantly

M/c advancement is necessary. The machinery required to assess add on a

garment or increase competence are missing in most industries.

Lack of training organizations for industrial workers, supervisors and

managers.

Autocratic approach of nearly all the investors

Fewer process units for textiles and garments

Sluggish backward or forward blending procedure

Incompetent ports, entry/exit complicated and loading/unloading takes much

time

Speed money culture

Time-consuming custom clearance

Unreliable dependability regarding Delivery/QA/Product knowledge

Communication gap created by incomplete knowledge of English Subject to

natural calamities

1.7.3 Opportunities:

EU is willing to establish industry in a big way as an option to china

particularly for knits, including sweaters

Bangladesh is included in the Least Developed Countries with which US

is committed to enhance export trade

Sweaters are very economical even with china and is the prospect for

Bangladesh

If skilled technicians are available to instruct, prearranged garment is an

option because labor and energy cost are inexpensive.

Foundation garments for Ladies for the FDI promise is significant because

both, the technicians and highly developed machinery are essential for

better competence and output

Japan to be observed, as conventionally they purchase handloom textiles,

home furniture and garments. This section can be encouraged and

expanded with continued progress in quality

1.7.4 Threats:

Electricity facility is not available in Bangladesh to run garments industry

smoothly.

Infrastructure is not well developed according to buyer requirement.

Wages structure is not good according to industry of labor. They are

deprived from their normal wages most of the time.

Gender discrimination is present here.

Port facility is not modernized. Discharge and upload of ship taking a long

time. As a result cost increase for both buyer and supplier.

Unstable political condition is one of the main threats for Bangladesh.

In the recession of the world economy, order from buyers has declined and

price is also low.

Transport facility is not so healthy in Bangladesh. As a result garments

goods take a long time to reach in the port.

Chapter Two - Overview of Epyllion Group

2.1 Brief description of Epyllion Group:

˜EPYLLION' is a house of Readymade Garments and engaged in manufacturing and

exporting of knit Apparels since1993. The Organization is a well structured one and

manned by a group of trained and professional managers at every level of management.

Epyllion Group within a brief time of its inception in 1994 secured a remarkable position

in the emerging industry of Ready Made Garments. They start with only 2 sewing lines

and total of 200 workforces at Mirpur in Dhaka. Epyllion Group has new swelled up with

8250 workforce with 54 sewing lines in several locations of Dhaka and Gazipur.

The management of the group is vested with a team of professionals under direct

supervision of the Managing Director, Executive Director, two General Managers,

Factory and Production Managers, Departmental Heads for each section, marketing,

Administrative and a Production team of 1,075 skilled and semi skilled workers.

A team of qualified persons is assigned to check vigorously if the elements involved in

the process to meet the international standards. Computerization and Automation in the

different departments of Garments and Fabric manufacturing process with computer

aided designing, digital color matching and communication make the process accurate

and eliminate the possible human error.

The philosophy of continuous development through R & D in the laboratories, designing

section equipped with instruments from Data Color USA an computer aided cutting and

pattern making instruments/software form Lectra System-France, are the main strength of

the sampling and product development of Epyllion.

2.1. a Concerns of Epyllion Group:

TEXTILE INDUSTRIES

GARMENTS INDUSTRIES

GARMENTS ACCESSORIES

REAL ESTATE

2.1. b Group Members:

TEXTILE INDUSTRIES:

Epyllion Knitex Ltd.

Epyllion Fabrics Ltd.

GARMENTS INDUSTRIES:

Epyllion Style Ltd.

Epyllion Knitwears Ltd. Unit 1&2

Mirabella Dresses Ltd.

Dekko Knitwears Ltd. Unit 1&2

Dazzling Dresses Ltd.

ACCESSORIES:

Epyllion Ltd.

Epyllion Washing Ltd.

REAL ESTATE:

Nina Holdings Ltd

2.2: Objectives of Epyllion Group:

Epyllion’s objective is to meet the needs and wishes of our buyers while maintaining and

improving quality. Epyllion Group is fully aware of their responsibilities to their

customers, our employee, to the community, the society, the nation and the environment.

Epyllion Group is taking all steps to ensure that their factories are:-

Compliant with social standards stipulated in Bangladesh.

Safety and health precautions are fully looked into.

Local environment standards are met.

Dignity of labor and human rights are upheld.

2.3: Corporate Information:

Plot # I/1, Road # 06, Section # 07, Mirpur I/A Dhaka 1216

Website: www.epylliongroup.com

2.4: Organizational chart:

2.5: Investment type:

Epyllion Group is a 100% Private Limited Company and Local Based Company.

Managing Director of the organization is the only investor of it.

2.6: Export product categories:

Knitwear-

Knitted T-Shirt

Knitted Polo Shirt, Polo Pique

Knitted Legging

Knitted Sweat Shirt

Nightwear

Knitted Women Jacket, Blazer including sky suit

Silk women’s Blouse’s pullover

Silk Unisex Blouse’s pullover

2.7: Growth of Epyllion Group:

Figure: Growth in Dollar ($)

In recent years there is a tremendous growth in Epyllion Group. The column chart

express the growth of Epyllion Group that was from 2004-2005 to 2005-2006 there is an

increase of $ 5 million. In 2005-2006 to 2006-2007 increase $ 4 million. In 2006-2007 to

2007-2008 there increase $ 8 million. And In 2007-2008 to 2008-2009 increase amount

was $ 10 million. The positive growth of Epyllion Group takes place on its development

continuously.

Figure: Growth in Percentase (%)

The collum chart express the growth rate of Epyllion Group year by year. From the

collum chart, growth rate increase 8.62% in 2005-2006 than the privious year 2004-2005.

In 2006-2007 financial year growth rate increase 6.35% from the year 2005-2006.

Growth rate increase 11.94% in 2007-2008 from the financial year 2006-2007. And in

2008-2009 the growth rate 13.33% than the privious financial year 2007-2008.

2.8: Company nature:

100% export oriented garments industry. It receives the buyer order and place it factory.

From receiving the inquiry of the buyer and contracting the factory to shipment the

product to the buyer all activities have done it.

2.9: Bank references:

IFIC Bank Ltd.

Eastern Bank Ltd.

Janata bank Ltd.

Jamuna Bank Ltd.

Premier Bank Ltd.

Prime Bank Ltd.

Dhaka Bank Ltd.

The City Bank Ltd.

Uttara Bank Ltd.

First security Bank Ltd.

2.10: Main Buyers:

C & A

MARKS

CELIO

SMITH & BROOKS

KAPPA

POLO RALPH LAUREN

TEMA

ZARA

KARIBAN

OXFORD

ERVE

2.11: Certification & Achievement:

BGMEA

BKMEA

BTMA

OeKo-Tex

Organic Exchange

C & A best supplier award

WRAP

SEDEX

C-TPAT

Under Process:

ISO-9001:2000

SA-8000

2.12: Organization’s with whom the business is available:

Nasa Taipey Textile Mills Ltd.

Sayham Textile Mills Ltd.

Pahartoli Textile Mills Ltd.

Padma Textile Mills Ltd.

Akij Textile Mills Ltd.

Ambar Cotton Mills Ltd.

Arif Knit pin Ltd.

RSWM Ltd. India.

Youth Spinning Mills Ltd.

Nahar Spinning Mills Ltd. India.

Suthan Spinning Mills Ltd. India.

NRG Spinning Mills Ltd. India.

Pacific Cot Sin Ltd. India.

2.13: Future Projects:

Epyllion Group can expand their business in consumer good item and pharmaceuticals in

future.

Chapter Three - Merchandising dept. that I

concerned for the study

3.1: Different functional department of Epyllion Group:

In Epyllion Group there are two types of department, one is departments in factory and

another one is departments in office.

Department in Factory:

I. Fabric Inspection Department

II. Store Department ( General store, Fabric store)

III. Cutting Department

IV. Sample Department

V. Work-Study Department

VI. Sewing Department

VII. Iron & Finishing Department

VIII. Quality Control Department

Department in Office:

I. Merchandising Department

II. Commercial Department

III. Accounts Department

IV. Finance Department

V. Human Resource Department

VI. IT Department

Among all the department of Epyllion Group I have determined for the study on

Merchandising Department.

3.2: Introduction of Merchandising:

The “Merchandising” is known to the persons specially involved in garments trade. The

term merchandising has been derived from the ‘merchandise”. Merchandise means

buying and selling huge amounts of goods.

The term “MERCHANDISING” may be defined as Person who merchandises the goods,

specifically for export purposes. Garments merchandising means buying raw materials &

accessories, producing garments, maintaining required quality level and exporting the

garments within scheduled time.

3.3: Need of merchandiser:

The position "Merchandiser" is playing a vital role in the RMG sector today.

Merchandiser is the person who handles around 75% of the cost related to the garment &

the production cost is only be almost about 25% of the garment. There by the role of

Merchandiser in the apparel sector plays the most responsible part mainly for the

financial benefit of the Company. The Merchandiser's small mistake will affect 75% of

income of the order which will leads to a big disaster. This has to be understood by the

Merchandisers seriously.

3.4: Responsibility of merchandiser:

Now days, major companies are adopting merchandising concepts, which comply with all

procedures to execute and dispatch the shipment on time, considering quality, cost and

time. Merchandisers are serious in the success of any garment retail business. They

provide the right products at the right time, enabling a company to match with latest

market trends and meet the market demand. In the merchandising concept, time

management is a gig to manage one's time properly, so he can focus on value adding

actions.

Today's garment merchandisers have to move with frequent changes in demand and the

developing technologies utilized in manufacturing and production. To find out customer

requirements, they regularly visit retail outlets, and come up with latest updates from

frontline staff. In order to keep an eye on developments in sourcing, site visits are made

every week to mainland factories to meet suppliers and study production.

In garment merchandising, there is no specific rule, so it's important to be able to think on

one's feet.

The main procedures of merchandisers are as followed:

Understanding Sample Order

Merchandiser has to understand the buyer's requirements after receiving specification in

the sample order. In many cases, there are modifications pertaining to the specifications

in the order to dispatch on time and the right quality.

He has to talk with the in-house veterans on the execution problems of sample orders, as

the right information is required in decision making.

Managing order route card and production timetable

Merchandiser has to manage every single production schedule and order route card that

helps to follow-up the execution in the planned way. It is expected to be acknowledged of

the various descriptions like: design, no. of modules, no. of operators, how many

processes, and date of dispatch, quantity, output capacity, and deadlines in the schedules.

The sub-ordinates are normally assigned to follow-up with execution of the plan.

Merchandiser plans the activities depending on the essentials or non-essentials, and top

priority are given to the most essential tasks. This is customary that the essential activities

are handled personally or with the support of junior merchandisers/sub-ordinates.

In a "daily schedule", merchandiser has to carry-out and categorize which is the most

significant and urgent task. The activity that has to be focused with full attention to

sweep-off non-essential activities and have to be to be corrected by prioritizing to meet

the deadlines.

Using route card to reschedule activities

To get updated on the current status on the order, the route cards should be utilized. The

latest status can be fed into the computers. In case, the buyer ask for the goods prior to

the deadline, then merchandiser has to reorganize the schedules to accomplish tasks,

output capacity, no. of pieces to be produced daily, substitute arrangements, time

availability, supply time, scheduling critical ratio, etc.

Submitting pre-production samples

The pre-production samples should be provided on time to the concerned buyers. Quality

of the sample must be verified. If required, revised samples should be made available to

the buyers. Merchandiser should adjust to the required changes demanded by the buyer.

The execution of bulk orders should be made only after samples are approved by the

buyer.

In-process inspection denote between any tasks in order-execution. In case of non-

conformation, it is better to focus on the concerns of quality. Merchandisers that work on

complete orders have to check deviation to the production teams so that any amendments

can be done to avoid the non-conformities.

Solving shortage problem

The merchandiser should know about the dearth of any commodity such as fabric, yarn,

etc. From the beginning actions should be taken immediately to arrange required

materials, after discovering the shortage. It is expected that the merchandisers should

verify quality of the goods prior to execution of the order. If the material is found

unavailable, the superior should be informed about the concern.

Communicating with associated people and buyer

It is essential to communicate with the buyers regarding the order. It is expected to give

some time to the buyer to read the sent messages. Merchandiser should to go through the

messages received from the buyer and reply on time. In many cases, merchandisers have

to provide order status to the buyers. Also, merchandiser has to communicate with the

people that are in-house, venders, contractors and job-workers. Only through the right

communication can one meet deadline for the concerned orders.

Concluder remark on merchandising:

Apart from the above mention procedures, merchandiser has to assign subordinates to

help him in the order execution, and direct the procedures. He has to revise his

knowledge from time-to-time to know current market trends. To record preferences for

all the planned activities, use daily or time log systems.

The Merchandiser should find out exact reasons for time consumption. It is necessary to

keep record of time value and keeping it safe, as it is going to be shared with concerned

parties/buyers. It is certain that merchandising jobs need huge time planning.

3.5: Chronological process of merchandising:

(A). Salesman Samples, Counter Samples, Approval Samples, Photo

Samples, Preproduction Samples, Production Samples, Shipping Samples.

(B). Swatch and Trims, Trim’s related Affairs, Communication in international Business.

Sample: Reference garment corresponds to -

The artwork (styling) done by designer and/ or developer

Particular purchase order

Any revision to the style work

Confirm with any specific requirement etc.

3.6: Sequence of sample:

Name of Sampling-

1st Pattern

2nd Pattern

Counter Sample

Sales Man Sample

PHOTO Sample

Approval Sample (Size Set, Mock-up)

Pre-production Sample

Production Sample

Shipping Sample

3.7: First pattern:

First physical version of any garment as per the artwork is done by designer or

developer.

HUMAN MIND > SKETCH > PAPER PATTERN > SAMPLE

Purpose: See the DESIGN work & test the FITTING

Status: Nothing specific

Material: Available

Price: Not conformed

Quantity: 1 (for customer) + 1 (for Merchandiser)

Delivery: As per URENGECY

3.8: Second pattern:

Usually designer/ developer always ask for some changes to the first pattern. Second

pattern is made as per comments.

3.9: Counter sample:

Where first pattern is made on designers artwork, Counter sample is to make not on

designer’s artwork, has to follow another sample given by the merchandiser.

Purpose: See the workmanship &test the factory skill

Status: Nothing specific

Material: Available

Price: Not conformed

Quantity: 1 (for customer) + 1 (for self keeping)

Delivery: As per request

3.10: 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 records their response on order quantity per color, size etc. and finally place order to

their vendor.

Purpose: Sales Meeting by Retailers, Market Appraisal, Demand / Order forecast

Status: Final stage of the order confirmation

Material: Actual

Price: Confirmed

Quantity: There is minimum quantity per color combination

Delivery: Very important to meet the delivery date.

3.11: Photo sample:

Samples are made with actual color and material to be worn by the models on the event

of shooting for catalog.

3.12: Approval sample:

In any discrete period of time, whenever it required any revision in the sample, a new

sample is made (sometimes mock-up is workable too) as per new specification. It is sent

to buyer for his approval of the conformity that- the revision is done correctly.

3.13: Size set:

In size set, consists of 1 piece from each size for each color combination.

3.14: Mock up:

Any part of the garment to make for particular purpose, not complete garment.

Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve,

collar, neck etc and some accessories.

3.15: Pre-Production sample:

When material for bulk production arrived, factory makes a sample with the actual

material and sends to buyer.

3.16: 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.

3.17: 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.

3.18: Swatch:

Swatch is a presentation of all the materials is (Fabric & Accessories) used for any

specific style/order. Usually small piece of fabric and each piece of accessories are

attached in board paper in a systematic manner. Swatch is very important for production

line to make the correct construction of a garment and QC department ensures it.

Concerned merchandiser should confirm/approve the swatch.

3.19: Trims:

Trims cover all the items used in the garment except the basic fabric. There are hundreds

of items used to manufacture the garments, proper selection of trims and its quality are

very important for styling, otherwise the garment may be rejected or returned by the

customers.

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

Zipper/Fastener

Sewing Thread

Main Label

Flag Label

Button

Elastic

Eyelet

Tags

Tag pin

Plastic clip

Sticker

Hanger

Poly bag

Scotch tape

Gum tape

Photo Board

Back Board

Tissue

Carton. Etc.

3.20: Communication in International Business:

Telephone Conversation.

Fax/ E-Mail

Formal Meeting

Lunch & Dinner

3.21: The information normally gets about an order:

Factory Loading

Factory Capacity

Factory History

Factory Setup Details

Market Reputation

Type of Buyers Dealing

3.22: How a merchandiser meet buyer’s requirements:

Merchandiser detail to buyer about factory profile.

Merchandiser Understand the Order sheet.

Arrange the all component for order execution.

Production Tracking.

Timely Shipment.

3.23: Methods of purchasing raw materials:

Here fabric and some related accessories are the main raw materials. They are:

Lab-Dip

Approval the Lab-Dip

Collect price Quotation

Negotiation

P.I. Received

Back to Back L/C transfer

Delivery Chelan received

3.24: Procedures of imported goods:

Procure of IRC

Price Inquiry (Quotation )

P.I. Received and Placing Order

L/C Opening

Received Shipping Advice

Facing Customs

Closing Transaction

3.25: How does the accepted order is passed on the floor:

Merchandiser searches the scope of knitting machine according to required

Gauge.

Make production schedule

Trim & Accessories Card Prepare

Make well finishing according to buyer requirement in case of –

• Labeling

• Zippering

• Buttoning

• Ironing

• Packaging

• Cartooning

3.26: How a merchandiser track his/her production:

Follow-up yarn supply in factory

Knitting follow-up

Linking follow-up

Accessories supply

Finishing follow-up

Ready for export

3.27: Conclusion:

In conclusion we can say that, the MERCHANDISING Department of Epyllion Group

gives me a pleasure to learn the Merchandising activities properly. From this department,

I have learned practical knowledge about merchandiser. A merchandiser has to perform

the activities from preliminary to end of the order.

Chapter Four - Body of the Study

4.1 Introduction of the study:

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

Ultra modern technology are being used in the woven and knit garment industries in the

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

to use world standard latest technology in our readymade garment sector.

The report will mainly focus on the “Merchandising department” in Epyllion Group. The

proposed study will cover the appraisal, practice, procedures and techniques followed by

the merchandising department in the preparation of order to shipment in Epyllion Group

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.

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.

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 (RMG) 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 garment and textile sector.

4.2 Background of the study:4.2 Background of the study:

The Bachelor of Business Administration (BBA) was introduced by Stamford University

Bangladesh with an objective to supply an adequate number of highly trained and

educated graduates to the economy. As the BBA program is the integrated, theoretical

and practical method of teaching major disciplines in the preceding years of their courses.

To undergo internship program each participant has to prepare a report on the particular

topic related with the organization. I have already completed my internship program from

Epyllion Group-A Garments Industry. Based on my practical experience as well as

theoretical knowledge, I have accomplished the report regarding “Impact of the activities

of merchandising department on the growth of Epyllion Group- A garments industry.

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

as merchandising department of Epyllion Group play a major role in the run of their

operations

4.3 Scope of the 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

Epyllion Group - A garments industry. I have worked in factory and head office thus

paved me the way to get myself familiarized with the official and factory environment in

a garments industry for the first time.

4.4 Objectives of the study:

4.4.1 Broad objective:

The Broad objective of the report is to learn about the activities of merchandising

department in Epyllion Group - a garments industry. Academic knowledge is not perfect,

practical knowledge is essential with it.

4.4.2 Specific Objectives:

This term paper has been prepared for fulfilling the following specific objectives:

To enlarge the dimension of knowledge regarding merchandising.

To define and evaluate the performance of Merchandising Department

To observe the effectiveness of Merchandising Department

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

To interchange opinions of the officials regarding their organization.

To know the economic condition of Bangladesh through Epyllion Group of

Bangladesh.

To identify the difference between theory (what we have learned from the text)

and practice (what is really happened).

To compare the improvement of the present condition of the Epyllion Group with

the previous years.

To mention the problems that the Epyllion Group face in the process of

production and delivery of garments & give some suggestions.

To identify the strengths, weaknesses, opportunities and threats of the Epyllion

Group.

4.5 Methodology of the study:

Every research program should follow some basic form of procedures. To complete this

report at first I try to acquire a clear theoretical knowledge on garments industry. I study

various books of different writers regarding the topic. This type of study helps me to

acquire knowledge on an overview of garments industry. However mainly this report is

written on the basis of experience gathered during the period of Internship. I carefully

observed the various activities of different department, especially merchandising

activities of Epyllion Group. A qualitative research is used to conduct this study.

In order to make the report more meaningful and presentable two sources of data and

information have been used widely. Both primary and secondary data have been used to

prepare the report

4.5.1 Primary Data:

Observe the environmental behavior, facts. Action, record and present condition

of the program.

Case study.

Have conversation with my supervisor and regular employees of the Epyllion

Group.

Ask question to the different department of Epyllion Group to get relevant

information.

Formal questionnaire to General Manager, Assistant Manager, Manager and

Executives of Merchandising Department

Direct experiment and group discussion there.

Personal interview through face to face

4.5.2 Secondary data:

I have got data from Epyllion’s profile, export volume report, documents, related books

and articles on garments industry, BGMEA, BKMEA. Since advantage in computer and

technology, I got data through browsing internet.

4.6 Limitations of the study:

During the internship program in Epyllion Group I try to learn something about the

garments sector as well as merchandising and marketing. I found some officers and staffs

are very helpful and cooperative. But there are some limitations also. These are as

follows:

4.6.1 Short of Experience:

During the completion of my report I got help from officers as well as operators. But I

don’t have not much experience on garments sector so the report may be suffer in few

areas.

4.6.2 Limitations of Time:

Generally two month period is not enough to complete the report but within this time I try

to input total activities of garments marketing before starting the report work. At lest six

months required for completion of the final report but I have given only two months. So

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

4.6.3 Lack of Information:

Lack of elaborate discussion with the high ranked officials due to their business because

this company is very big and responsibilities is huge. The merchandisers of the company

are always busy, so they could not provide information timely. During my internship

period I found many new employees joined here who were inexperienced about their job.

So, it is little bit difficult to collect some departmental information.

Chapter Five- Findings

5.1: SWOT analysis of Epyllion Group:

A SWOT analysis is overall evaluation of the company’s Strength, Weakness,

Opportunities and Threat. Strength and Weakness are internal value creating (or

destroying) factors such as assets, skills or resources etc. And Opportunities and Threat

are external value creating (or destroying) factors a company unable to control.

5.1.1 Strengths:

Epyllion Group’s factories are established in their own land.

Epyllion’s factories are well equipped with skilled, expertise and productive

manpower. They are doing timely shipment and exporting 100% quality

garments.

They arranged required yarn & accessories as per requirement of their valued

buyers and provide samples on specific quires in a very quicker way.

Epyllion produced fabrics as per buyer requirement.

Experienced management team.

Innovative product line.

They are corresponding with buyers firstly.

Epyllion manage all the paper work; supervise the production from start to end

and shipping the good s as per the requirement of buyers.

5.1.2 Weaknesses:

After shipment of the products they are not collecting actual post purchase

behavior of buyers.

Short of marketing expertise

Number of employee is not so much.

Need to require proper coordination with different section.

Delay in payment from supplier.

The subordinate are not taking any decision or policy making in meeting. The

decisions always come from the top management.

Salary structure is not that much good in compare to others.

Power centralization by the top management.

Factories of Dhaka are congested.

5.1.3 Opportunities:

Covering more market area of EU & USA.

Can expand their business area by establishing the yarn, woven & sweater

factories.

They can lead against weak competitor.

Epyllion can hire higher dynamic young employee for more output.

Attain different trade fair and get new idea related with today’ business.

5.1.4 Threats:

Most of the big Garments industries are established spinning plant. As a result

they can sell their product more cheaply but Epyllion Group don’t have any

spinning plant for that reason their cost of production is high.

Government tax and vat structure are not suitable for garment industry.

In Bangladesh, there are a number of garment industries. For that reason buyer are

offering lower price.

Competitor constantly offer innovative and substitute products.

Increased trade barriers and quota system withdrawals.

Delay of payment from buyer creates some times bad situation of company’s

liquidity and future financial budget plan.

Strike (Hartal)

Skilled employee switching.

5.2: Overall Findings of Epyllion Group:

Every employee of Epyllion Group is well experienced in their job.

Good team work environment is here.

Workers of Epyllion Group have good concentration in their job.

Transportation facility is available for the employee to cover one factory to

another.

Accommodations facility (staff quarter) in the factory of Gazipur.

Industry plant, machineries and others equipment are more modernized than

others.

Epyllion Group has very good human resource management system.

Managers in Epyllion Group practice a number of powers to motivate employee’s

behavior and get them to act in a certain way.

Each time a new employee is appointed she\he has to join a training

program. In the program she\he has to work in every department for two days, to be

familiar with the total organization. The main of this program is the

socialization of the employees.

Human resource management of Epyllion Group has built an organizational

commitment to quality. Every employee of Epyllion Group is highly committed to

the company to increase its service quality.

To evaluate quality Epyllion Group has established different quality measuring

system in different level of activity. Epyllion Group sets challenging quality goals

and offers many monetary and non-monetary incentives to the employees to

motivate them.

Epyllion Group carefully collects solicit employees’ suggestions about

improvement that can be made.

Epyllion Group establishes cross-functional teams for various purposes. For

example, reward giving committee.

Performance appraisal conducted by Epyllion Group on yearly basis.

High performance is appreciated at Epyllion Group by giving attractive rewards

Epyllion Group has own power plant in Gazipur.

Epyllion Group has a big and experienced merchandiser team.

Merchandiser has good commanding skills in the factory.

Merchandisers of Epyllion Group has good capability in the case of negotiation

with buyers.

Epyllion Group is able to make garments according to exact buyer requirements.

Epyllion Group uses most updated and modern software in their factory and

office.

Epyllion Group maintains the rules strictly about child labor.

Epyllion Group has health care facility for their worker and employee.

Epyllion Group has prayer room in the factory & office.

Epyllion Group has child care room in the factory.

Epyllion Group has own good and experienced fire man in the factories.

Employee of Epyllion Group is always busy. It is very hard to get appointment to

discuss with them on a specific for a long time.

Among the factories of Epyllion Group, Factories in Gazipur is well organized

and wide space, big gap from one line to another. But factories of Dhaka are not

well organized but congested from one line to another.

5.3: Findings (Merchandising Department in Epyllion Group):

Merchandising dept. of Epyllion Group 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

department to the following questions. These findings are as follows-

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

lacking is that they are weak in "Management Skills". Because the courses on

merchandising in Bangladesh focus on technical side not concern on management

skill. As a result, the executives of merchandising department in Epyllion Group

feel the same lacking about “Management Skill”.

The merchandisers those who are having experience, sometimes not clear about

their exact job responsibilities. Because the executives of merchandising

department sometimes feel lacking in proper direction from higher authority or

senior level management of Epyllion Group.

They have no proper order follow-up system to organize their day to day work.

Because the merchandisers of Epyllion Group have to arrange other necessary

accessories according to exact buyer requirement. So, they did not get enough

time to maintain proper order follow-up system day by day.

It is highly noted that all the Merchandiser's should improve the communicational

skills strongly to make their job easier. Because communication skills are very

important for merchandisers to communicate in effective way with buyers and

other parties.

Merchandisers those who are working in the factories do not go to floor & other

depts. to find out what is happening in the factory. Because merchandising

department maintain software, from the software merchandiser observe the total

progress of every department. So, they don’t need to go to the factory floor

regularly.

Therefore as a precautionary measure all Merchandisers must undergo training to

learn to do their job very effectively in a professional manner and deliver a fruit

full experienced presentation regarding garments in front of buyers.

Merchandisers are independent in some extent not in full extent in case of

negotiation with buyers. Because in the time of price negotiation, merchandiser

have to consider the C-M (cost of making) of the garments and profit also.

The working environment of Epyllion Group for merchandisers is very good.

Because Epyllion group has world class factory and good expertise man power.

So that Epyllion is able to make and deliver garments as per buyer requirements.

Merchandisers of Epyllion Group work with famous brand and buying houses.

In Epyllion Group switching rate of merchandisers and others department’s

employees are very low. Because salary structure and others facility is good

enough comparatively than other garments industry.

Epyllion Group provides transport facility for their merchandisers to cover the

factories and also provide technical expertise in the time of dealings with buyers.

Epyllion Group also arrange different recreational program for their

merchandisers like travel historical and beautiful places inside the country and

outside the country.

Chapter Six- Recommendation and conclusion

6.1: Overall Recommendations on Epyllion Group:

I would like to recommend on the following areas that’s should be help to achieve the

goals of Epyllion Group. Generally I will give concentration on marketing and

merchandising activities of Epyllion Group.

Identify the market segmentation efficiently, then setting their target market and

forecast which market offering more opportunity.

Epyllion’s marketing department must try to understand the buyer need, want and

demand.

Need to develop long term relationship with key parties – buyers, buying houses

and suppliers.

To achieve the goals, Epyllion’s marketing team need to establish effective

marketing mix (product, place, price and promotion).

Epyllion has some limitation but if they follow the proper marketing concept then

they can achieve the ultimate goals.

Need strong relationship with repeat buyer. Because one estimate is that attracting

a new customer can cost 5 times as much as pleasing an existing one. Also, It

might cost 16 times as much to bring the new buyer to the same level of

profitability as the lost buyer.

Customer retention is more important than customer attraction- if Epyllion follow

this concept then they will gain more.

Epyllion should share their mission with manager and all the staff. A clear

mission statement guides the employee to work independently and to achieve the

organizational objectives.

Epyllion should follow the “modern customer orientation organization” chart

instead of “traditional organizational” chart.

Through the growth share matrix, BCG (Boston Consulting Group approach)

Epyllion can measure their annual growth rate of the market whether business

operates effectively or not.

Today’s business world moving very fast by the digital revolution. The impact of

digital revolution Epyllion can implement data based marketing.

Survey on buyer intention regarding plant, equipment, raw materials, place,

compliance etc.

Consult with garments expertise regarding garments business to get more output.

Identify their position based on the product life cycle and position of competitors,

and then take a corrective action.

Epyllion can implement their design section and from there they can create unique

and innovative products design for marketing. In this purpose they can contract

with professional fashion designer in Bangladesh and abroad.

They can improve the procurement department for better coordination with other

section.

Epyllion can use the efficient promotional tools for buyer awareness about their

business. In this purpose Epyllion can develop their website with detail

information about their business.

Build a sound relation with marketing department to others department. As a

result marketing communication style should follow and communicate

accordingly.

Epyllion management team can recruit the effective & efficient employee and

ensure its- “right people for the right place”.

Feel the employees more important inside the organization.

Allow employees to participate decision making process that affect them

increased more productivity, commitment to work.

Guide rather than order. Create a good example; the top management set the ideal

for his people so that subordinates can follow their boss.

Reward should be given based on performance.

Ensure the due time salary & wages otherwise employee and worker fly away.

Need strong commitment.

Concentrate only to develop knit composite in this moment.

6.2: 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 with

international business. The experienced merchandisers are always demandable in every

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

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

Management of merchandising is a big job and is a complex one. The result of the study

showing that there is lot of step for Epyllion Group to improve their merchandising

management has certain implications for the business community as well as national

merchandising planners. The study “The impact of the activities of merchandising dept.

on the growth of Epyllion Group- a garment industry” revealed that Merchandiser is most

valuable human resources for the progress of the organization. For the development of

these valuable resources there are many factors involved. To increase the productivity of

an organization effectively, efficient merchandiser will have to develop. Preparation of

future business managers should provide for the development of managerial skills

relating to merchandiser function. Colleges and universities offering business

administration curriculum would do well to evaluate their courses as they relate to the

findings of this study.

This direct study indicates the potential utility that could be derived from undertaking

more comprehensive investigations covering only merchandising dept. of Epyllion

Group. There are consequent developments of newer knowledge can definitely contribute

to increase the efficiency of business management and this, in turn, will increase the

satisfaction of all interested buyer parties, which will be the ultimate goal of business.

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.

Bibliography

1. KOTLER PHILIP & AMSTRONG GRAY (copyright 2006 by Prentice-Hall,

Inc.)- PRINCIPLES OF MARKETING (11th Edition)

2. Malhotra. K. Naresh (copyright 2007 by Prentice-Hall, Inc.)-

MARKETING RESEARCH: An Applied Orientation (5th Edition)

3. Griffin W. Ricky (copyright 2005 by Houghton Mifflin Company)-

management (8th edition)

4. http://www.epylliongroup.com

Appendices

Questionnaire

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

I. Technical Skill

II. Management Skill

And why?

2. Does the merchandising department maintain proper order-follow up system?

I. Yes

II. No

And why?

3. Are all merchandiser clear about their job responsibilities?

I. Yes

II. No

And why?

4. Do you take steps to improve the communication skills of merchandisers?

I. Yes II. No

And why?

5. Do merchandisers go to factory floor regularly?

I. Yes

II. No

And why?

6. Does Epyllion Group organize merchandising skill development training program for their merchandisers?

I. YesII. No

And why?

7. Are the merchandisers independent to negotiate with buyers?

I. YesII. No

And why?

8. What about the working environment of Epyllion Group for merchandisers?

I. GoodII. Bad

And why?

9. Are salary structure for merchandisers is good enough comparatively others?

I. YesII. No

And why?

10. Does Epyllion Group provide extra facility for their merchandisers?

I. YesII. No