DECLARATION

I, Varun Basanagoudar, hereby declare that the project report entitled “Organizational Study”
with reference to “Brand Factory” prepared by me under the guidance of Mr. Sameer Gudi,
Professor and HOD of BBA Department (Oxford College of Business Administration, Hubli).
And external assistance by Mr. Sunny Katwe (Store Manager) of Brand Factory. I also declare
that this project is towards the partial fulfillment of the University Regulations for the award of
degree of BBA, by Karnataka University Dharwad. I have undergone a project for a period of
four weeks. I further declare that this project is based on the original study undertaken by me and
has not been submitted for the award of any degree / diploma from any other University /
Institution.

Place : Hubli Varun Basanagoudar

Date: (USN: 18N10619)

1
 ACKNOWLEDGEMENT

With great pleasure I express my gratitude to the management of BRAND FACTORY,

HUBLI for giving me this golden opportunity to work as a trainee in their company. I would like
to express my sincere gratitude to everyone who has helped me in the preparation of my project
report successfully.

I would like to express my sincere thanks to Mr. Sameer Gudi, Professor and HOD of
BBA Department (Oxford College of Business Administration, Hubli) for his valuable
suggestions to bring this project successfully.

I would like to express my profound gratitude to Mr. Sunny Katwe (Store Manager) for
providing me this opportunity to undergo in project at Brand Factory Hubli.

I convey my sincere thanks to Mr. Chetan Sing Rajput (Department Manager) for
supporting me as a company guide during the training period, and giving the valuable
information regarding the company and helping me in the completion of this project.

2
 INDEX
Sl No. Title Page No.

1 Executive Summary 5

2 Objectives of the Study 5

3 Sources of data collection 6

4 Industry Profile 8

5 Company Profile 12

6 Department Overview 19

7 Product Description 23

8 Organization Structure 23

9 SWOT Analysis 24

10 McKensy’s 7S Model 34

11 Conclusion 41

12 Bibliography 42

3
 CHAPTER 1

1 Executive Summary

2 Objectives of the Study

3 Sources of data collection

4 Industry Profile

4
 Executive Summary
Organization is a set of people working together the accomplishment of a common
objective. The roles and responsibilities are stated clearly without any ambiguity. The positions
occupied by different individuals are presented in the form of organization chart. Organizational
structure is essential for continuity of the mission and co-ordinates and controls the business
activities. Origination helps management to perform its activities effectively, optimum use of
technological improvement growth and diversification, creatively, effective use of physical
resources and HR.

Objectives of the study

 To understand the organization structure or hierarchy of the company.

 To understand the working of the various departments.
 To enable us to gain an insight into the corporate world.
 To understand the various responsibilities and duties carried out by each department.
 The study is aimed at understanding how an organization practically works in a real
situation.

Scope of the study

 This report is based on the study conducted at BRANDFACTORY, Hubli.
 It aims at understanding the company’s establishment, organization structure,
departments, techniques, marketing strategies and the advantages it is having over the
competitors.
 An attempt is made to analyze the company’s performance in comparison to the
theoretical aspects.

5
  It aims to understand the skills of the company in the areas like technological
advancements, competition and in management.

Limitation of the study

 Time is the major constraint.

 As per the company rules many information was not disclosed.
 As the managers are busy in their schedules it is not possible for us to spend more time in
interaction and discussion with them.

Methodology adopted for the study

 Observing the working of various departments like finance, safety, human resources,
production, purchasing, billing etc.
 Discussion with the company executives, managers and employees.

Sources of data collection

Primary Data

The data collected for the first time through observation and interview method. The
collected by observing the working of various departments. It is also obtained by the help of staff
members.

Secondary Data

The data is collected by secondary sources also. The data is collected through company
manual, product brochure, company website, annual report and other sources.

6
7
 Competitors

As Brand Factory is the India’s biggest retail marketing brand so it has many
competitors also such as :

 Pantaloons
 Reliance trends
 Reliance smart
 Reliance market
 Reliance footwear
 Bigg bazaar
 Max
 Inmark
 Blackberry
 And many other retail stores.

8
 Industry Profile

India retail industry is the largest in India, with an employment of around 8% and contributing
to over 10%of the country’s GDP. Retail industry in India is expected to rise 25% yearly being
driven by strong income growth, changing lifestyles, and favorable demographic patterns.

It is expected that modern retail in India will be worth US$ 200-250 billion. India retail industry
is one of the fastest growing industries with revenue expected amount US$ 350 billion and is
increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail
in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural
consumption. It has further been predicted that the retailing industry in India will amountUS$7.5
billion.

.
9
 Shopping in India has witnessed a revolution with the change in the consumer buying
behavior and the whole format of shopping also altering. Industry of retail in India which has
become modern can be seen from the fact that there are multi- stored malls, huge shopping
centers, and sprawling complexes which offer food, shopping, and entertainment all under the
same roof.

India retail industry is expanding itself most aggressively; as a result a great demand for
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that, India may have
600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate
of 9% annually. The branded food industry is trying to enter the India retail industry and convert
Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of
non-branded items.

India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combine effort.

10
Their Subsidiary groups are as follows:

 Future Retail
 Future Lifestyle Fashion
 Future Consumer
 Future General India (Insurance)
 Future Supply Chain
 Future Ideas
 Future Learning
 Future Enterprises Ltd.

11
 CHAPTER 2

1 Company Profile

2 Product Description

3 Organization Structure

4 Department Overview

5 SWOT Analysis

12
 Company Profile

Future Group is one of the country’s leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The group
operates over 10 million square feet of retail space, has over 1000 stores and over 30000 people.
Future Group is present in 61 cities and 65 rural locations in India. Some of its leading retail
include, Brand factory, Big Bazaar, Food Bazaar, Home Town, eZone, Depot, Future Money and
online retail format, futurebazaar.com.

13
 Future group companies includes, Future Capital Holdings, Future Generali India Indus
League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co.
Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer
credit. It manages assets worth over $1billion that are bring invested in developing retail real
estate and consumer-related brands.

The group’s joint venture partners include Italian insurance major, Generali, French
retail ETAM group, US-based stationary products retailer. Staples Inc and UK-based Cooper and
India-based Talwalkar’s, Blue Foods and Liberty Shoes.

14
 Brand factory is a chain of retail stores operated by Future Group. Its head office is in
Mumbai. Launched in September 2006, it has 100 stores across 50 cities in India as of
December 2018. It is India’s largest discount retail chain and offers a wide range of apparel
brands in different categories for men, women, infants, accessories, cosmetics, footwear,
sportswear and luggage. The chain plans to expand its number of outlets to 100 by 2018.

The outlets are between 70,000 and 150,000 square feet in size and hosts several
Indian and International fashion brands like Levis, Pepe Jeans, Wrangler, Provogue, Arrow,
Nike, Adidas, Reebok, Louis Phillippe, Allen Solly, Reid & Wilwon, Puma, Lee Cooper, DJ&C,
Denim Jeans & Casuals, John Miller, Daniel Hechter, Knighthood, Peter England, Oxemberg,
VanHeusen, Spunk, Umbro, Santa Barbara Polo, Buffalo, Puma, Skybag, Crocodile, Ruggers,
Classic Polo, Wrogn, U S Polo, Lee etc.

It has stores in Amritsar, Channai, Bhilai, Raipur, Bhubaneswar, Cuttack, Kanpur,

Kolkata, Hyderabad, Asansol, Bangalore, Mysore, Hubli, Jabalpur, Indore, Mangalore,
Coimbatore, Guwahati, Trivandrum, Ahmedabad, Mumbai, Bhuj, Thane, Nagpur, Ujjain,
Vijayawada, Visakhapatnam, Puna, Kalyan, Calicut, Patna, Vadodara, Salem, Lucknow, Agar,
Nashik, Surat, Rajkot, Jaipur, Siliguri, Tirupati and Thrissur.

15
Brief information about the company:

Name of the company BRAND FACTORY

Industry Retail Fashion store

Founder and CEO Kishore Biyani

Head office Mumbai

Founded on September 2006

Number of stores 100

Parent company Future Group

Product Men’s wear, Women’s wear, Kids wear,

Youth wear, Sports wear, and Footwear’s.

No. of employees 80

16
BRAND FACTORY LOGO:

Working Staff of Brand Factory Hubli Store:

 Store Manager – Sunny Katwe

 HR Manager – Rajeshwari Somankoppa

 Admin – Aziz Khan

 Department Manager – Chetan Sing Rajput

Vijay Baratakke

 Warehouse Manager – Rahul Pawar

 Cash Department – Sudhakar

17
1)Future lifestyle fashion ltd (FLFL) Brands:

BUFFALO THE KNIGHTHOOD UMM

PRIVIELEGE
CLUB

ETHNICITY UMBRO RIG BARE

SCULLERS SRISHTI NAYANA JOHN MILLER

SPUNK HANGOUT INDIGO DANIEL

NATION HECHTER

LEE COPER HEY MORPANKH JEALOUS 21

ATHEESH NAVARAS MOTHER ALL

EARTH

PRIMA DIVA CONVERSE NIKE PUMA

REEBOK ADIDAS SHYLA URBANA

PINK AND DJ &C JM SPORTS FILA

BLUE
FLFL Brands are own brands which is produced by Future Group.

List of FLFL Brands

18
2) Partner Brands:

PETER CLASSIC POLO MARK TAYLOR BASICS

ENGLAND

LONDONBRIDGE TURTLE OXEMBERG J HAMPSTEAD

CROCODOLE COLORS THEME COLORS PLUS

WRANGLER LEE SPYKER FLYING

MACHINE

US POLO PEPE JEANS DUKE INEXCESS

PROLINE KILLER STSTUS QUE RUGGERS

EXCALIBUR LOCOMOTIVE HIGHLENDER LEVIS

NEWPORT CELEBRITY OPTION DOLLAR

BIGBOSS

SKYBAGS LENE PERROS DISNEY PRONTO

19
 Departmen
t Overview

Brand Factory provides different categories for men, women, infants, accessories, cosmetics,
footwear, sportswear and luggage.

Brand factory is discount store located around 25 cities in India. They offer more then
200Indian and global brands at 20% to 70% discount.

Brand factory sells different products under different segments.

Men’s section:

 Formal Shirts and Pants

 Casual Shirts and Pants
 Suit, Blazers and Trousers
 Party wears and Ethnic
 Jeans and T-Shirts
 Ties, Belt and Handkerchiefs

Women’s section:

 Ethnic wear
 Westerns wear
 Casual wear
 Nightwear

Kid’s section:

 Cotton Frocks
 T-Shirts
 Raincoats
 Shirts & Short Pants

20
Footwear section:

 Sports Shoes
 Casual Shoes
 Men’s & Ladies Sandals
 Formal Shoes
 Ladies Fancy slipper

Luggage section

 Travel Bags
 School and College Bags
 Ladies Bags & Purse
 Trolleys

Vision :

Future Group shall deliver Everything, Everywhere, Everytime for every Indian
consumer in the most profitable manner.

Mission :

We share the vision and belief that our customers and stakeholders shall be served only
by creating and executing future scenarios in the consumption space leading to economic
development.

We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments-for classes and for masses.

We shall be efficient, cost- conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united determination shall
be the driving force to make us successful

21
Values:

 Indianness.
 Leadership.
 Respect & Humility.
 Introspection.
 Openness.
 Valuing and Nurturing Relationships.
 Simplicity & Positivity.
 Adaptability.
 Flow.

22
INFRASTRUCTURE

Brand factory is a fashion retail outlet situated in Hubli. It covers 16000 Sq.ft with two
floors.

The following are the major infrastructure facilities available in Brand factory Hubli.

 First Aid facilities are provided.

 Proper ventilation and lighting.
 Lift and exalter facilities available.
 Washrooms are available.
 Pure Drinking water.
 Sufficient trial room in both the floor.
 They have electricity control room.
 Sufficient Air conditioning facility provided.
 Well arranged warehouse.
 Efficient parking space is provided.
 Fun zone is provided to employees.
 Locker facility is given to employees.

23
 Production Description

Brand Factory is a chain of retail stores operated by Future Group. It is India’s largest
discount retail chain and offers a wide range of apparel brands in different categories for men,
women, infants, accessories, cosmetics, footwear, sportswear and luggage.

Organization Structure

24
 SWOT Analysis

Strengths:

 Market leader.
 Strong relationship with distributors.
 Strong backup from the Parent group.
 Advertising.
 Discounts.

Weakness:

 Low variety in kids and women section.

 Low product differentiation.
 Customer Service.
 Few outlets.

Opportunities:

 Expansion in sub-urban cities.

 Rising income of middle class income group.
 Low average age of Indian Society

Threats:

 Low entry Barriers.

 Seasonal Sales of Exclusive retailers.

25
 Supply Chain of Brand Factory

The supply chain of BRAND FACTORY is very will organized. In the store level Team
leaders of the different Categories report about the merchandise replenishment levels and buying
trends of the merchandise to the Category Managers at the store and zonal office. The category
manager’s in turn will place orders to vendors and they will either send the merchandise directly
to the store or Distribution center and from there the merchandise is sent to the store distribution
center and made available to the customer.

All the communication is done through effective use of ERP software’s like REM and SAP.

Below is the brief representation of merchandise and information of supply chain of BRAND
FACTORY.

Customer

Sales information

Buyer/Planner Stores
Quick response

system

Vender Distribution
center

26
 Activities at Store Level

1)Getting Products to Shelf

Indenting & Purchase Orders (PO’s)

(a)Indenting:-

Indenting will be happen after checking stock in the store and goods in tansit. Or whenever
if required and changes in indenting due to season, weekends or any festivals then the quantity is
modified. The indents will be raised to Zonal office in Bangalore. Delivery of fruits & vegetables
is after 48hours after being raise. Indenting for milk and dairy products id delivered after
36hours.

(b)Raising PO:-

PO(purchase order) for different merchandise is placed and is released to the venders by the
stores. PO on venders can be raised only once each day & its validity will be for one time and all
the delivery and payment conditions are mentioned in it.

2) Receiving:-

(a) Checking of Delivery in DC

All the Dry DC delivery will be checked by a store staff in the DC staging area before
packing and loading. This is to minimize delivery count error and ensure that right quantity is
delivered to the stores. Behind this all the activity owner is Store Manager.

27
(b) Receiving Goods in Store: From DC & CPC

Receiving indented goods form the DC & CPC as per the delivery schedule. At the time of
receiving goods form DC many things which is followed by the SCM, ASCM, & CSA.

 . Check the seal in front of driver.

 Note down the air condition temperature.
 Inspect stocks for transit damages.
 If any HU (Handling unit) / article is found damaged, excess, or missing noted it on the
trip sheet for return to DC.
 Do the GRN (Goods return note) for the delivery for the actual received quantity.
 Stores are not unloading transit damaged stocks. Transit damages will be returned to DC
in the same delivery truck.
 The main focus during goods receiving must be to unload the crates/ cartons from the
truck as quickly and safely as possible.

28
(c) Receiving from vendors

Procedure for receiving goods directly from vendors. Behind this whole activity owner is
store manager/ asst. store manager. Food bazaar store indenting specially bakery, beverage and
books/magazines and music. SCM/ASCM

 Check the deliveries for quantity, damages and freshness and accept only good products
as per shelf life norms.
 Do not accept any short shelf life or damage quantity from vendor and reduce it from the
invoice if required.
 Remove all expired products from the shelf and get them replaced with fresh product
without any GRN for the same.
 In case of books/magazines and music SCM/ASCM check bar-codes on the books or
music CDs delivered by the vender & return the unsold items to the vender.
 Venders and store staff check physically check DSD deliveries for damages and freshness
and accept only fresh saleable products.

3) Replenish Shelf from Goods receiving Area

Storing and cross docking :

The merchandise received from DC and CPD are either stored or cross docked in floor wise
order and sent to be respective floors.

29
Tagging :

All the merchandise from DC and CPC’s are tagged with security tags to prevent
merchandise from shrinkage.

There are different guidelines for different products to be tagged.

All the pants and briefs are tagged on the left side of the pocket, shirts are tagged at the front
part between 2nd and 3rd button and foot wear are tagged to the left wear.

All the accessories are tagged with paper tags and soft tags.

30
Managing Price Changes:

All the SKU’s are scanned before sending to floor to check the price variation and the
discrepancies are sent to the zonal category staff. All the changing of SKU’s isdone by category
staff at Zonal office in Bangalore.

Replenishing merchandise to shelf’s:

After all the above process is done, the respective floor manager is intimated about the
stock to his floor and a gate pass is generated and he would come and collect the merchandise
and stock to the shelf’s of his floor.

customers

stores

Vender Distribution Center

31
 Block Diagram of the process

4) Managing waste and markdowns:

Segregation of damaged and expiry in store:

For F & V crates are received carefully for the item not for sale as per PRIL quality and
are removed from the shelf. It is done by Team leader/Floor manager.

Expiry:

 Near expiry product is markdown as per the RR rule.

 An expired product is segregated and is treated as per following.

Vendor supply:

Exchange with fresh stock from the vender at the time of next delivery.

DC supply: Dump in store.

Markdown for damages and near expiry:

Damaged and near expiry products is markdown as per the following rules:

Markdown criteria:

 Up to Rs.15 or 15% of selling price (whichever is lower) & it is down by store manager.

 Up to Rs 30 or30% of S P (whichever is lower) & it is also done by DM /AM.

 Beyond Rs 30 or 30% of S P & it is done by state fresh head.

32
Dumping of Damages and Expiry products

 For processing of dump (damaged & expired) approval is obtained from store manager.
 After dumping, the entire dump is entered into dump register in the presence of SM with
his/her signature.
 The entire dumped product is then get hand overed to garbage collection agency.
 For some type of damaged product some part of each product is kept as proof.
 Finally the dump register is sent to the supply chain office for system entry which will be
audited at the zonal and head offices.

5) Returns:

The goods that are not fast moving or having defects or expired or damaged are returned
to respective distribution centres or vendors.

The respective floor managers generate the out pass for movement of merchandise form
floor to the store DC. Where the merchandise are physically counted or weighted, untagged and
an out pass to the DC is generated and loaded to the vehicle.

The vehicle is tagged with the security tag and a return invoice is generated and handed
over to the vehicle driver after taking the signature.

33
 CHAPTER 3
1 McKensy’s 7S Model

2 Conclusion

3 Bibliography

34
McKensy’s 7S Model

35
 Structure:

“Structure” is the organizational structure or the hierarchy of the organization that

comprises of the authority, responsibility and relationships in the firm. This function of
framework is concerned with direction of the delegation of authority, organizational structure
whether flat or tall and the degree of centralization or decentralization.

Store
Manager

Head Cashier Department Human Admin Visual Logistic

Manager Resources Merchandisin Manager
g Manager

Customer Team Leaders Security Logistic

Support assistant
Department

Cashier Customer House Replacement

Sales Keeping
Team

Loaders

36
 Strategy:

The business strategy of Brand factory Retail has been to capture the entire
consumption space of the Indian consumers. The company has moved from one retail business to
another, keeping in pace with the changing needs and aspirations of the Indian consumer. They
company which primarily started as a garment retailing company has moved into multiple
businesses on the backdrop of the endless opportunities being provided by the growing Indian
economy. The company has adopted a strategy to serve all segments of the Indian Consumer
market whether it is lifestyle stores like Brand factory that aims to offer customers enhanced
shopping experience or value format stores like Big Bazaar which follows a strategy of always
providing at the lowest possible prices as well as the convenience of finding everything under
one roof.

The company has adopted a strategy of catalyzing consumption and not just capturing
it. The company follows a strategy of discovering new customers, new markets, new geographies
and new business possibilities.

37
 Skills :

Brand factory by tying with various management institutes in India has ensured that it
has sufficient inflow of managerial skill required. In addition to that the human resource
department undertakes various training and development programs to ensure that the employees
have the necessary skills to discharge their responsibilities.

Also another area where Brand factory scores over its competitors is its bargaining skills.
It has been able to ensure higher margins for itself from the suppliers. Also the supply chain
skills of the company are among the best in the Indian retail sector. The company carefully
rationalizes its vendors. For instance, Brand factory buys its dry staples directly from millers for
its Food Bazaars; it is now experimenting with contract farming, too, to lower its cost
structure.

38
 Staff :

Brand factory has been successful in keeping its workforce of 25000 highly satisfied and
motivated. The company has an attrition rate of 8.12%, much below industry levels.
Brand factory would not have been able to expand and have the same level of success without
hiring and taking care of quality employees. Some of Brand factory human resource activities
include employee advancement, employee recruitment on college universities, and employee
training and development. Additionally, while most firms in retail facing talent crunch
Brand factory has tied up with various college and institutes to ensure it has fresh supply of
talent at its disposal. Close to 46% of the employees in the organization are women and the
average age within the organization is 27 years.

The company has a adopted a policy of collaborating on joint degree programs with 15
management schools, design institutes and institutes of higher learning in areas like food
business, supply chain management, design experience management etc. This. Seekho
program for the external and internal candidates ensures a steady stream of mid-level, well
trained retail professionals every year. The company’s. Gurukool program provides the
front-end employees an opportunity to imbibe the company’s values and a sense of
ownership to the company.

39
 Styles :

At Brand factory, empowerment and freedom of work is clearly apparent. This can be
seen with various category managers at each store level being empowered with taking all
decisions with respect to their departments from deciding inventory levels to placing
replenishment orders. Out of the Box thinking has become a way of life at Brand factory and
living with the change, a habit. Such a culture in necessary to go in line with the organizational
strategy of exploiting changing consumer aspirations. In the quest of creating an Indian model of
retailing, Brand factory has taken initiatives to launch many retail formats that have come to
serve as a benchmark in the industry. The management is very dynamic and does not focus or
focus of predicting future but rather believes in creating the future.

Systems :

Considering this scale of expansion, technology plays a significant facilitating role. The
introduction of SAP in 2005-06 and its roll out during the year positively impacted the
business. Big Bazaar has initiated the process of Auto Replenishments Systems, thus
improving operational efficiencies and productivity. The company has also rationalized
nearly 250 vendors through better vendor management in terms of potential to expand, and
for inclusion and up gradation to the online B2B platform.

40
Shared values :

The Future group as the name suggests believes in exploring areas yet unexplored.
Writing rules yet unwritten as well as creating new opportunities have been the building blocks
of its success. The group does not believe in waiting for the future to unfold itself rather it
believes in creating future scenarios. The group does not just spots trend but also creates them.
While doing all these, the following core values are shared and transpires among everyone in
the organization

 Indianness: confidence in ourselves.

 Leadership: to be a leader, both in thought and business.
 Respect & Humility: to respect every individual and be humble in our conduct.
 Introspection: leading to purposeful thinking.
 Openness: to be open and receptive to new ideas, knowledge and information.
 Valuing and Nurturing Relationships: to build long term relationships.
 Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
 Adaptability: to be flexible and adaptable, to meet challenges.

 Flow: to respect and understand the universal laws of nature.

41
 Conclusion

The organization study carried out in Brand Factory Hubli Branch. It was successful in
achieving the specific objective. It helped to familiarize with the organization structure
and its functioning. It also helped to familiarize with different departments in the
organization and there functions and activities.

The study helped to understand how the key business process are carried out in the
organization and how information is used in the organization for decision making at
various levels. The study was successful in understanding the extent of marketing
strategy used.

The study helped in improving practical knowledge. The organization study was
beneficial as it helped to gain confidence and awareness.

42
 Biblography

 www.brandfactory.com

 www.wikipedia.com

 www.futuregroup.com

 www.futureretail.co.in

43