Arun's Visual Merchandising (1)

7/27/2019 Arun's Visual Merchandising (1)

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CONTENTS:

1. Declaration

2. Acknowledgement

3. Guide certificate

4. Executive summary

5. Introduction

6. Indian Retail industry Overview

7. Company Profile

8. Visual merchandising

9. Data analysis & Interpretation

10. Recommendation

11. Conclusion

12. Bibliography

13. Annexure


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DECLARATION

I do hereby declare that the project report submitted by me for the partial

fulfillment of the course post graduate program in retail management is

genuine and of my own and it is not submitted to any other institution or

published anywhere before.

Date- J.ARUN KUMAR

Regd.no. 1106107031


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ACKNOWLEDGMENT

I would like to express my sincere thanks to our Principal. Professor

Mr.S.R.Mahapatra and our Dean Mr. A.K.Panda, who had given opportunity to

carry out the Project work.

I am very much thankful to the Store manager Mr.Jayanarayan Pujapanda of

Big Bazaar (Kharvel Nagar), who has kindly permitted me to undertake the

project work in this esteem organization.

I am also sincerely thankful to Dm. Mr. Srimanta Samanta, Mr Prabodh

Baral,Mr.Ansuman Matiamishra.and TL Mr.Mohd.faruq and sales person like

Mr.Manas,Mr Debendra,Mr.Trilochan, Mr. Prasanta; who had helped a lot in

completing this project work. I also take pleasure to express my heart full

gratitude to my project guide Mr.Jayanarayan Pujapanda once again, who

encourage me all the time without which this project couldnt be completed.

I would like to thankful to my internal faculty mentor Mr.P.D.Das

for his support guidance and encouragement throughout my study.

I also like to thankful to my family member for their moral and financial

support in time, which helps me, lot in completing the project successfully.

I am grateful all my friends who helped me directly and/or indirectly in

preparation of this project report and successful completion of this project.

I am also grateful to God who made me mentally strong by His/hers blessing in

this endeavor of mine.


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CERTIFICATE OF INTERNAL GUIDE

This is to certify that the project entitled VISUAL MERCHANDISING AT BIG

BAZAAR, BHUBANESWAR is a bonafide record of interim report carried out by

Mr. J.Arun kumar a student of Centre for IT education bearing university Regd.

No: - 1106107031 have successfully completed his summer project for the

partial fulfillment of the requirements of the award of the degree of Master of

business Administration of Biju Pattanaik University of Technology,

Bhubaneswar, Odisha. To the best of my knowledge and belief, this project is

original effort and contribution which he has worked sincerely under my

guidance in this duration. The summer project report has not been submitted

earlier to this university or to any other university/Institutions. Wishing him

good luck for a successful career all future endeavors.

Date: Signature of the Guide

Place Mr. P.D.Das


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CERTIFICATE OF SUPERVISOR

I hereby certify that I have rendered necessary advice to Mr. J.Arun kumar, 2nd

year MBA student of this institution in preparing the final report on visual

merchandisingatBig Bazaar. In partial fulfillment for the award of Master in

Business Administration under Biju Pattanaik university of Technology.

I wish his all success in his future endeavors.

Signature


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EXECUTIVE SUMMARY

Visual Merchandising is everything the customer sees, both exterior

and Interior, that creates a positive image of the business and results in

attention, interest, desire and action on part of the customer There is a

growing recognition of the need for an effective Visual Merchandising. But

even as it continues to grow, the understanding of Visual Merchandising

impact and effectiveness is still in its infancy. The project deals with

components of Visual Merchandising and its influence on customer purchasingdecision. The study is conducted at Big Bazaar, Bhubaneswar.

The study is based on how the visual merchandising components such as Color

and Lighting, Props and Decorative items, Fixtures and Hardware, Store Design

and Display and overall ambience of the store plays a crucial role in influencing

the purchase decision making of the customer. The methodology followed is

questionnaire method with a total sample size of 100 respondents.

The data is tabulated and graphically represented through, Pie charts, Bar

graph. Based on the response obtained through questionnaire major Research

findings are presented and suitable recommendations are made in order to

improve the customer shopping experience at Big Bazaar. The ambience of the

store is a very important element in Visual Merchandising as it influences

consumers in purchase decision. .

A customer is highly influenced by the look and feel of the store Visual

merchandising when used effectively is no doubt a powerful tool to entice

customers in making a purchase decision. Visual merchandising will lead to

impulse purchase of the product.


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INTRODUCTION

Retailing

The word retail is derived from the French word retailer, meaning to cut a

piece off or to break bulk. In simple terms, it implies a first-hand transaction

with the customer.

Retailing involvers a direct interface with the customer and the coordination of

business activities right from the concept or design stage of a product or

offering to its delivery and post-delivery service to the customer. The industryhas contributed to the economic growth of many countries and is undoubtedly

one of the fastest changing and dynamic industries in the world today.

Indian retail industry

Performance

The Indian retail industry is the fifth largest in the world. Comprising of

organized and unorganized sectors, India retail industry is one of the fastest

growing industries in India, especially over the last few years. Though initially,

the retail industry in India was mostly unorganized, however with the change

of tastes and preferences of the consumers, the industry is getting more

popular these days and getting organized as well. With growing market

demand, the industry is expected to grow at a pace of 25-30% annually

In todays dynamic and shaky business world, the retail industry is constantly

upgrading itself. With an endless array of customer choices, fierce competitors,

pervasive use of the internet, and a complex global economy, retailers need to

focus on finding ways to sustain and grow their businesses. Traditional growth

models that focused on rolling out more stores and adding more product lines,

no longer enjoy the return on investment they once did. Successful retailers

are those who are able to adapt and change to the environment and develop


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new ways of serving customers, respecting the dynamics of current trends and

adapting accordingly.

The retail industry in India is hailed as a sunrise sector, and is estimated to

double in value from US$ 330 billion in 2007 to $640 billion by 2015. In fact,

India has topped AT Kearney's annual Global Retail Development Index (GRDI)

for the third year in a row as the most attractive market for retail investment.

The bad news is, despite the fact that India has one of the largest numbers of

retail outlets in the World, organized retail accounts for only 4% of the total

market. This makes it especially difficult to apply sophisticated merchandising

and sales tools, enhance consumer interaction and also, make very accurate

analysis. That said, analysts believe the sector is likely to show significant

growth of over 9 % p.a over the next 10 years and also see rapid development

in organized retail formats, with the proportion likely to reach a more

respectable 25% by 2018.


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Growth of Indian retail industry

Growth Potential

The key growth areas include the urban, luxury segment on one end of the

spectrum and serving the rural sector on the other. In addition, government

policy encouraging FDI in the segment has resulted in a plethora of

international retailers keen on entering the market; American retail giant Wal-

Mart has tied-up with Bharti Enterprises and global coffee giant Starbucks' has

tied up with PVR Limited. In addition, Carrefour, Boots and others are also

expected to come in. With so much action, it is natural that there is a huge

scope for employment opportunities, and experts estimate that the sector will

generate employment for ~ 2.5 million people in 2010. The top retail

companies in India include the Raheja Group, Reliance Retail, Tata Trent,

Future Group, RPG Retail, and Ebony Retail Holdings.Future Prospects

There are many opportunities for those seeking to enter this sector, and entry

level positions such as sales executives dont even require a degree. Naturally,

the higher order jobs for graduates with relevant degrees and work

experience, involve more responsibility, challenges and remuneration. MBAs

are increasingly being recruited, which marks a change of HR policy, from the

traditional preference to hire those from the FMCG and hospitality sectors. In

fact, senior executives in retail such as operations heads are extremely well

looked after, and HR consultants believe they are paid in excess of Rs. 60 lakhs.

The good news for graduates is that since the sector is so young and vibrant,

career growth happens very rapidly, and these positions are very achievable in


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a compressed time period. Successful candidates across all levels are those

who are dynamic, able to multi-task and are equipped with great

communication skills.

Major Retailers in India

Pantaloons:

Pantaloons is one of the biggest retailers in India with more than 450 stores

across the country. Headquartered in Mumbai, it has more than 5 million sq. ft.

retail space located across the country. It's growing at an enviable pace and is

expected to reach 30 million sq. ft. by the year 2010. In 2001, Pantaloons

launched country's first hypermarket Big Bazaar. It has the following retail

segments:

Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection-I

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with itssubsidiary Trent, which operates Westside and Star India Bazaar.

Established in 1998, it also acquired the largest book and music retailer in India

Landmark in 2005. Trent owns over 4 lake sq. ft. retail space across the

country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it

came into food & grocery retailing in 1996 with its retail Food world stores.Later it also opened the pharmacy and beauty care outlets Health & Glow.


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Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300

Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail

market. Its expecting its sales to reach Rs. 90,000 crores by 2010.AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands

like Louis Philippe, Allen Solly, Van Heusen, and Peter England are quite

popular. It's also investing in other segments of retail. It will invest Rs. 8000-

9000 crores by 2013.Another big player in the segment will be the Bharti

group. Overhauling this part of the supply chain will be the key to the success

of any retail venture in food and groceries segment.

Wal-Mart, the worlds largest retailer, and Bharti Enterprises have signed a

Memorandum of Understanding (MoU) to explore business opportunities in

the Indian retail industry. This joint venture will mark the entry of Wal-Mart

into the Indian retailing industry a retail chain like Future Groups Big Bazaar

may be clocking heady sales (growing at 100% year- on- year), but the dozen

odd shops operating in its proximity wear a deserted look, giving a somewhat

hollow ring to the much- talked- about retail boom in the country. The key

players currently operating in the Indian retail industry includes Future Group,

Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd,

Provogue India Ltd, Videocon Appliances Ltd, ITC Ltd, Godrej Agrovert Ltd, and

DCM-Hariyah Kissan Bazaar.

Retailers ranging from Pantaloons to RPG to Piramals or the Tatas are

working towards exploiting this model, perceived by consumers as more value

enhancing. But in the long run, what is most likely to succeed is a more

balanced multi-format strategy. Finally, while in the first flush of the retail

boom, the elimination of traditional intermediaries may bring windfall gains (as

well as bring welcome and much-needed relief to the producers), this source

will increasingly dry out as competition intensifies and margins come under

pressure a few years down the line. What would set the survivors apart from

those who are forced to sell out or go belly-up will be differentiators like

location, value-added services (convenience), private labels and customer

loyalty programs other than price. The last, a result of retailer-manufacturer


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tie-ups, state-of-the-art supply chain infrastructure, global sourcing and scale

will be a key factor. And, if experience in other markets is anything to go by, an

uncanny ability to read shifting trends.

Retail formats in IndiaHyper marts /supermarkets: large self-servicing outlets offering products from

a variety of categories.

Mom-and-pop stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a personal

touch.

Departmental stores: are general retail merchandisers offering quality

products and services. Convenience stores: are located in residential areas with slightly higher

prices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers

a mix of all types of products and services including entertainment and

food under a single roof.

E-trailers: are retailers providing online buying and selling of products

and services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages,

snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories.

They are known as category killers as they focus on specific categories,

such as electronics and sporting goods. This is also known as Multi Brand

Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and

provide deep assortment. Mumbai's Crossword Book Store and RPG's

Music World is a couple of examples.

Challenges facing Indian retail industry

The tax structure in India favors small business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options Shortage of trained manpower


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Low retail management skill

Categories of Indian Retailers:-

Corporate Houses

RPG group: Food World, Health and Glow etc.

ITC: Wills Life Style

Raheja group: (Shoppers Stop), DLF (DT cinemas).

Nike, Rbk. Zodiac

Multi-brand outlets

Vijay Sales, Viveks etc.

Manufacturers/ Exporters

Pantaloons, Bata, Weekender

Classifying Indian Retailers:

1. Modern Format Retailers

o Supermarkets (food World)

o Hypermarkets (Big Bazaar)

o Department Stores (shoppers Stop)

o Specialty Chains (Ikea)

o Company Owned Company Operated

2. Traditional Format Retailers

o Kiranas: traditional Mom and Pop Stores

o Kiosks

o Street Market

o Exclusive /Multiple Brand Outlets

3. Hypermarketo Big Bazaar

o Giants

o Shoprite

o Star

5. Entertainment

o Fame Ad labs

o Fun Republic

o Inox

o PVR

4. Departmento Lifestyle

o Pantaloons

o Pyramids

o Shoppers Stop

o Trent


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Company profile

Guess what? 3 million square feet of retail space spread across 25 cities where 12

crore Indians will shop this year! This is Pantaloons Retail (India) Limited, (a

Pantaloons Knowledge Group Company) - Indias face of organized retailbusiness.

Pantaloons Retail (India) Limited, is India's leading retail company with presence

across multiple lines of businesses. The company owns and manages multiple retail

formats that cater to a wide cross-section of the Indian society and is able to capture

almost the entire consumption basket of the Indian consumer. Headquartered inMumbai (Bombay), the company operates through 4 million square feet of retail

space, has over 140 stores across 32 cities in India and employs over 14,000

people. The company registered a turnover of Rs 2019 crore for FY 2005-2006.

Pantaloons Retail forayed into modern retail in 1997 with the launching of fashion

retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket

chain that combines the look and feel of Indian bazaars, with aspects of modern

retail, like choice, convenience and hygiene. This was followed by Food Bazaar, food

and grocery chain and launch Central, a first of its kind seamless mall located in the

heart of major Indian cities. Some of its other formats include, Collection i (home

improvement products),

E-Zone (consumer electronics), Depot (books, music, gifts and stationary), all

(fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky

(fashion accessories). The group's subsidiary companies include, Home Solutions

Retail India Ltd, Pantaloons Industries Ltd, Galaxy Entertainment and Indus League

Clothing. The group also has joint venture companies with a number of partners

Mr. Kishore Biyani

Managing Director

Pantaloons Retail (India)
http://www.pantaloon.com/http://www.pantaloon.com/


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including French retailer Etam group, Lee Cooper, Manipal Healthcare, Talwalkar's,

Gini & Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee

of international brands like Marks & Spencer, Debenhams, Next and Guess in India.

It has recently launched its etailing venture, futurebazaar.com.

Future Group:

Pantaloons Retail is the flagship enterprise of the Future Group, which is positioned

to cater to the entire Indian consumption space. The Future Group operates through

six verticals: Future Retail (encompassing all retail businesses), Future Capital

(financial products and services), and Future Brands (management of all brands

owned or managed by group companies), Future Space (management of retail real

estate), Future Logistics (management of supply chain and distribution) and Future

Media (development and management of retail media).

Future Capital Holdings, the group's financial arm, focuses on asset management

and consumer finance. It manages two real estate investment funds (Horizon and

Kshitij) and consumer-related private equity fund, in division. It also plans to get into

insurance, consumer credit and other consumer-related financial products and

services in the near future.

Group Vision:

"Deliver Everything, Everywhere, Every time to Every Indian

Consumer in the most profitablemanner."


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Group 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 infuse Indian brands with confidence and renewed ambition.

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.

Core Values:

o Indianness: confidence in ourselves.

o Leadership: to be a leader, both in thought and business.

o Respect & Humility: to respect every individual and be humble in our

conduct.

o Introspection: leading to purposeful thinking.

o Openness: to be open and receptive to new ideas, knowledge and

information.

o Valuing and Nurturing Relationships: to build long term relationships.

o Simplicity & Positivity: Simplicity and positivity in our thought, business and

action.

o Adaptability: to be flexible and adaptable, to meet challenges.

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

Corporate credo:

Rewrite rules, Retain values.
http://www.pantaloon.com/values.htmhttp://www.pantaloon.com/values.htm


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History:

Founded in 1987 as a garment manufacturing company, the company forayed into

modern retail in August 1997 with the launch of its first department store, Pantaloons

in Kolkata.

1987 Company incorporated as Mens Wear Private Limited. Launch of Pantaloons

trouser, Indias first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 The Pantaloons Shoppe exclusive menswear store in franchisee format

launched across the nation. The company starts the distribution of branded

garments through multi-brand retail outlets across the nation.

1995 John MillerFormal shirt brand launched.

1997 PantaloonsIndias family store launched in Kolkata.

2001 Big Bazaar, Is se sasta aur accha kahi nahin-Indias first hypermarket launched

2002 Food Bazaar, the supermarket chain is launched.

2004 CentralShop, Eat, Celebrate In the Heart ofOur City

Indias first seamless mall is launched in Bangalore.

2005 Fashion Station - the popular fashion chain is launched

alla little larger- exclusive stores for plus-size individuals is launched

2006 Future Capital Holdings, the companys financial arm launches real estate

funds Kshitij and Horizon and private equity fund in division. Plans forays into

insurance and consumer credit. Multiple retail formats including Collection I,

Furniture Bazaar, and Shoe Factory, EZone, Depot and futurebazaar.com are

launched across the nation.


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2007 Pantaloons Retail wins the International Retailer of the Year award at US-based

National Retail Federation convention in New York, and Emerging Retailer of the

Year award at the World Retail Congress held in Barcelona.

2008 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of

the hypermarket format anywhere in the world.

2009 Pantaloons Retail celebrates its first Shopping Festival across all retail formats in

key Indian cities.

I sse sasta aur accha kahin nahi

Shop til l you drop! Big Bazaar has democratized shopping in I ndia and is so much more

than a hypermarket. Here, one can fi nd over 170,000 products under one roof that caters

to every need of a family, making Big Bazaar Indias favorite shopping destination.

At Big Bazaar, one wil l get the best products at the best pr ices. F rom apparel to general

merchandise like plastics, home furni shings, utensi ls, crockery, cutl ery, sports goods, car

accessories, books and music, computer accessories and many, many more. Big Bazaar is

the destinati on where you get products available at pr ices lower than the MRP, setti ng a

new level of standard in pri ce, convenience and qual ity.If you are a fashion conscious

buyer who wants great clothes at great prices, Big Bazaar is the place to be. Leveraging on

the companys inherent strength of fashion, Big Bazaar has created a strong value-for-

money propositi on for its customers. This highl ights the uniqueness of Big Bazaar as

compared to traditional hypermarkets, which pri ncipally revolve around food, groceries

and general merchandise.Boasting of an impressive array of pr ivate labels, Big Bazaar is

continually striving to provide customers with a completelook. So be it mens wear,

womens wear, kids wear, sportswear or party wear, BigBazaar fashions has it all .


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VISUAL MERCHANDISING

Visual Merchandising is everything the customer sees, both exterior and Interior,

that creates a positive image of the business and results in attention, interest, desire

and action on part of the customer A successful retailing business requires that a

distinct and consistent image be created in the customers mind that permeates all

product and service offerings. Visual Merchandising can help create that positive

customer image that leads to successful sales. It not only communicates the stores

image, but also reinforces the stores advertising efforts and encourages impulse

buying by the customer. Visual merchandising is a major factor often over looked in

the success or failure of a retail store. It is second only to effective customerrelations. A story can be told that communicates to the prospective customer what

the store is all about. It includes the dramatic presentation of merchandise as well as

other important subtle features that create the stores overall atmosphere.

Eighty percent of our impressions are created by sight; that is why one picture is

worth a thousand words. Each customer has a mental image of a store and its

merchandise. A store should have an inviting appearance that makes the customer

feel comfortable and yet eager to buy. Some businesses maintain a minimum staff to

reduce costs, which means it is even more important for the merchandise to sell

itself. Greater effort must be spent on merchandise displays that make it easier for

the customer to find and purchase the items they want or need.

The basic objective for visual merchandising is a desire to attract customers to place

of business in order to sell the merchandise. Visual merchandising is offered to the

customer through exterior and interior presentation. Each should be coordinated with

the other using the stores overall theme.

Visual Merchandising Evolution

Every shopkeeper and merchant's primary objective is to sell merchandise. When

the giant nineteenth century dry goods establishments like Marshall Field & Co.

shifted their business from wholesale to retail the visual display of goods became

necessary to attract the retail customer. The store windows no longer simply allowed


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natural light to shine in the building or act as storage space for stock; they became

important venues to attractively display the store's merchandise.

Gradually, the design aesthetic used in window displays moved indoors and became

part of the overall interior store design, eventually displacing the importance windows

altogether in suburban malls. The Victorian era made window displays popular and

the Great Exhibition of 1851 in London established the prominence of display over

the items while commercializing the practice. In due course visual merchandising

became an inalienable part of the fashion and retail industry.

As far as the term Visual Merchandising is concerned, it became widespread only in

1970 even though it was coined during the 1940s. From the late 1800s till the 1920s,

visual merchandisers were known as window trimmers. By the late 1920s, the

window trimmers were referred to as display men, just as advertising industry called

its people ad men. The industry is evolving and entering new domains, Visual

Merchandising is increasingly perceived as a part of the overall brand

communication process.

COMPONENTS OF VISUAL MERCHANDISING

STORE IMAGE

Image can be described as the overall look of a store and the series of mental

pictures and feelings it evokes within the beholder. For the retailer, developing a

powerful image provides the opportunity to embody a single message, stand outfrom

the competition and be remembered.

As a rule, image is the foundation of all retailing efforts. While store layout,

presentation, signing, displays and events can all change to reflect newness and

excitement from week to week, season to season, they must always remain true to

the

underlying store image. The following elements combine to form a distinctive image

that not only reaches out and grabs the customer's attention, but also makes a

positive impression within those precious few seconds. Image forms the solid

foundation for

The remaining components of Maximizing Store Impact


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STORE DESIGN

Store design plays a crucial role in branding: it reflects and reinforces the

Corporate image. The sights, sounds, smells and other any other aspect should

Therefore reflect what the retailer brand is about and what its attributes are.

Different types of store design are:

Grid: It contains long gondolas (a free standing block of shelves used to

Display goods in a supermarket) of merchandise and aisles in repetitive

Pattern.

Racetrack: also known as loop. It provides a major aisle to facilitate customer

Traffic that has access to the stores multiple entrances.

Free Form: also known as boutique; arranges fixtures and aisles

asymmetrically.

Visual merchandising creates a connection between the companys image and the

look of the store.

EXTERIOR DESIGN

STORE NAME

An effective store name sets the tone and provides a store's identification by

conjuring up an image in the customer's mind. An effective name is consistent with

both the product mix and the store atmosphere.

VISUAL TRADEMARK

An identifiable trademark adds a visual image to the memory recall of a store

name, by combining words and pictures, color, shape, typeface, texture and/or style

to make it stand out. Visual Merchandising at Big Bazaar

STORE FRONT

Storefront is also an important element, which adds to the store image like the

exterior architecture, signing and window displays.

EXTERIOR ARCHITECTURE


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A store's exterior look is often referred to as the architecture, and comprises

aspects such as building materials, architectural style and detail, colors and textures.

These elements give a lasting first impression to the consumer. It is important that

the

exterior look and feel right to the shopper.

STORE SIGN

The store sign is a vital element of the storefront and also an important

component of Visual Merchandising it helps in identifying the store In realizing the

value of a strong storefront sign, many retailers are employing new design

techniques

which include projecting or cantilevering the store sign beyond the lease line, adding

motion, or using three-dimensional lettering and unique lighting applications to add

depth to the sign.

WINDOWS DISPLAY AND FLOORING

A store's exterior windows or glass storefront provide an additional

Opportunity to reach out and grab the passing customer. Windows are integral in

Creating a positive impression since they offer an opportunity to begin telling the

Stores unique merchandise story. The flooring and the number of floors a retail

outlet

Has, also make an important impact on the consumers.

INTERIOR DESIGN ELEMENTS

The elements of interior design can be used to create an image that matches the

desired customer profile.

FIXTURES

A major consideration in developing an appropriate store design involves the

use of fixtures. They are used to display merchandise, to help sell, to guard it and to

provide a storage space for it. They should be attractive and focus customers.

Attention and interest on the merchandise.


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DISPLAYS

Displays play an important role in a retail store. An attractive and informative

display can help sell goods. There are several principles that help ensure this

effectiveness. They are achieving balance, provide dominant point, create eye

movement etc.

MERCHANDISE PRESENTATION TECHNIQUE

Merchandise Presentation technique is one of the most important component

of Visual Merchandising.

The following are the different presentation techniques:

1. Idea-Oriented Presentation: a method of presenting merchandise based on a

specific idea or image of the store.

2. Style/Item Presentation: organizing stock by style or item

3. Color Presentation: A major role in a display is that of the color and

lighting. Aesthetic and innovative use of them can lure customers to visit more

aisles than they usually do and spend more time there.

4. Price- lining: is the technique when retailers offer a limited number of

predetermined price points within a classification.

5. Vertical Merchandising: merchandise is presented vertically suing walls and

high gondolas

6. Tonnage Merchandising: here large quantities of merchandise are displayed

Together to enhance and reinforce a stores price image

7. Frontal Presentation: here the retailer exposes its much of the product as

possible to catch the customers eye .

8. Fixtures: the primary purposes of fixtures are to efficiently hold and display

merchandise.

COLOUR

The psychological effect of colour continues to be important to retailers.


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Color probably more than any other factor except price, is the .stopper. that catches

the consumers attention. Intelligent use of color is important in store design.

LIGHTING

Proper lighting is one of the most important considerations in retail outlet.

Today lighting has become a display medium. It is an integral part of the stores

Interior and exterior design. Lighting is used to highlight merchandise, sculpt space

and capture a mood or feeling that enhances the stores image.

CEILINGS

Ceiling represents a potentially important element of interior design. Ceiling

heights color and material used will influence the store look.

FLOORING

Flooring choices are important because the coverings can be used to separate

departments; muffs noise in high-traffic areas and strengthen the store image.

SHELVING

The material used for shelving as well as its design must be compatible with

the merchandising strategy and the overall image desired. Music and scent in the

retail

outlet can influence consumer behavior to a large extent.

VM supports Retail Strategy:

VM physically carries out a store's promotional selling strategies by designing

and executing window and interior displays that supports ad goals

Installing promotional signing for in-store selling

Producing workable departmental layouts and interior dcor

Devising merchandise fixture layouts for day to day operations

Placing and presenting merchandise on walls and fixtures

Working as team members with the store's promotional staff

VM supports selling:


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Communicate the latest trends in fashion and colors

Assists customers in making a buying decision

Create an exciting environment within the store

VM transforms a shopper into a buyer

VM supports gift shopping

VM stimulates customers' appetites for artfully presented merchandise in the

same way that the gourmet cook stimulates diners' appetites for the artfully

presented meal Visual

VM supports retailing trends:

A trend is a direction in which fashion seems to be moving. VM is the

invisible force that doing a lot of the pushing behind the trend. Trends put 'fun'

in fundamental merchandising. Some of the prominent trends include:

Consumerism is the trend: Consumers like an opportunity to thoroughly

inspect the product before making a purchase

The barriers to 'showcase selling' had to come down. Stores began to move in

the direction of self service

Assortment which the consumers like is another trend

V Merchandisers should become experts in anticipating and responding to

lifestyle trends. The crux is how to target the customers live their lives

Stand along stores in shopping villages is a trend where customers are able to

park their vehicles in front of retail stores

Non-store retailing will affect VM

VM also supports international retailing


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Visual Merchandising Dos and Donts

Dos

Window display should be changed weekly or fortnightly to ensure freshness.

The display and layout should differentiate the store from competition. Colors

and design should be characteristic of the brand image.

Impulse purchase items (perfumes, watch straps, gifts) should be close to the

entry and exit doors for non-serious or causal customers would like to browse

the whole store. Their purchase is not pre-planned and because these impulse

purchase items are relatively cheaper they might buy them in a whim. Also

when customers wait at the billing counter the people accompanying the buyer

may snoop around and make a purchase too.

Use symbols as directions

Distance between the aisles should facilitate the easy for movement shoppers.

Donts

Avoid too many floors.

Racks shouldnt be too high, especially in bookstores because customers

might not be able to reach the books.

Lighting shouldnt be poor and at the same time shouldnt be very bright.

Shadows are essential for that added effect.

The display shouldnt be contrast to the section in which it is. It also shouldnt

be unaesthetic.


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Significance of Research

Visual merchandising is the art and science of displaying and presenting product on

the sales floor and in the windows with the purpose to increase store traffic and salesvolume.

Along with your store design, it is a key component of your stores unique identity

and your best form of advertising. Through them you are able to communicate to

your target customeryour brands identity, what is unique and special about your

offering and what makes you better than other stores. When deciding how to

present your product in your store, always remember that visual merchandising is an

extension of your stores customer service. That is why when planning for your

stores look and feel and product presentation, you must make sure that they:

Enhance the feeling of service and make your customer feel good. Above all you

want your customer to feel good and be happy. If they are happy you know that they

are going to buy. You also want to build loyalty and repeat purchases by creating a

good shopping experience.

Create a memorable impression: make it a feast for the senses. Shopping isn't just

about picking up a product. Its about temptation, attraction, and creating a

memorable impression that will encourage the customer to come back over and over

again. Customers are giving you what little time they have. You should reward them

with benefits beyond the products you carry.

A memorable impression can be created in many different ways. It could be about

the sensory experience of entering a store and being surrounded by light, color,

texture, and sound. While there is substantial amount of research on each of the

components of visual merchandising, a holistic approach towards visual

merchandising involving the consumers perceptions has not attracted much of

research effort. So this has prompted me to take up the research.

Research Gap

Visual Merchandising is an integral part of retail today. There is a growing

recognition of need for Visual Merchandising. But even as it continues to grow, the

understanding of Visual Merchandising impact and effectiveness is still in its infancy.

The shopping behaviour which governs the decision to buy is a function of three

stimuli viz., visual, auditory and kinaesthetic; the visual stimulus is the easiest and

most widely used tool for attracting customers. While there is substantial amount of

research on each of the components of visual merchandising, a holistic approach

towards visual merchandising involving the consumers perceptions has not attracted


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much of research effort. There is a vital gap in the current research and this has

prompted to take up research investigation in this field.

Problem Statement and Research Objective

VM carries with its 'touch points' from the customers' point of view. These touch

points comprise the customer environment and it is through interacting with that VM

that customer preference is formed. The VM is an excellent analytical tool for

discovering the nature of these touch points, their essentiality for preference

formation and the combination and sequence of such touch points that result in a

customer environment that maximizes corporate ability to construct sustained

customer preference. What are these touch points? How does VM unzip these touch

points?

What should be the appropriate configurations to the VM? This problem statement

has been crystallized into the following research objectives

Research Objective

To examine the impact of VM in consumer buying decisions

To make recommendations for the alignment of VM in the process of Customerpreference.


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Research Methodology

TYPE OF RESEARCH

The study can well be described as descriptive. As a descriptive research, the study

will deal with the variables affecting the customer preference process via VM. It finds

facts.

AREA OF ENQUIRY

It is proposed to conduct research in Bhubaneswar City.

Secondary Data

The secondary data of the study will be based on the available literature in Journals

in the retailing sector.

Primary Data

Primary Data was collected using the structured questionnaire. A sample size of 100

respondents was chosen through random sampling technique.

Construction of questionnaire:

The questionnaire was used as the respondents had to give a specific answer to the

questions. This also made it easier for the respondents to give their opinion without

too much time. Personal interaction with the consumers at the store and observation

technique was also used.

Sample Size

Total 100 respondents were selected as the sample size. Random Sampling

RESEARCH LIMITATIONS

Our research investigation is beset with the following constraints:

Time and resource constraints.

At the micro level, the scope of our research investigation is restricted to only oneretail unit in Bhubaneswar City.


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Bias/prejudice creeping into the responses of the respondents. However we will

exercise due care to obviate it through meticulous cross checking of data;

(Delphi Method).

Limited sample size, but, in our opinion, it is adequate enough to make valid

projections.


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Literature Review

Visual Merchandising is everything the customer sees, both exterior and interior,

that creates a positive image of the business and results in attention, interest, desire

and action on part of the customer Source: Visual Merchandising for retailers by

Holly Bastow Shoop, North Dakota State University Dale Zetocha, North Dakota

State University Gregory Passewitz, the Ohio State University

Merchandising and display are an important part of the marketing plan, and should

have a reasonable budget allocated - even for a retailer operating on a shoestring.

In today's competitive retail environment a retailer cannot afford to consider

merchandising as a 'frill'.

Everyone is competing for the customers' dollar. There are more choices out there

for consumers than ever before. Posters covering the door and windows, hand

lettered signs, lack of lighting and untidy displays send the message that your

business isn't serious. If your store looks like a bargain basement, customers will

expect bargain basement prices and may draw the conclusion that your product is

poor quality. This judgment may have little to do with the product itself, but be theresult of poor presentation. Melanie McIntosh, a retail consultant and founder of

Inspire Retail Solutions, a British Columbia firm that helps retailers create strong,

professional business images that attract customers.

Merchandising is more than simply the arrangement of products on the shelf. It is an

integral component of the business image. It should be considered when you design

your logo, business cards, brochures, letterhead, packaging, and product mix.

When you examine your merchandising, you examine what the customers'

Experience, from their first sight of your store front, until they leave store - hopefully

With a purchase in hand. Merchandising is also about understanding the way

customers shop.

By using this knowledge, you can position your merchandise to increase sales. You

need to create an environment that attracts the customer, is comfortable to shop,

and encourages the customer to return.


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Are the store front and windows attractive & inviting?

Is all signage clear, professional and legible?

Is the store interior welcoming and comfortable?

Is merchandise presentation appealing?

Are seasonal and high-margin merchandise placed in high profile locations?

Overall, is the store appearance professional?


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InterpretationAndAnalysis


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1.How frequently you visit big bazaar?

(a) Once in a week (b) twice in a week (c) once in a month (d) not

specific

Out of the 100% respondents,

50% said that they visit BIG BAZAAR once in a week. 30% of

them said that they visit twice in a week.

15% said that they visit once in a month and 5% were said that

they are not specific.

50%

30%

15%5%

how frequently you visit big bazaar?

once in a week

twice in a week

once in a month

not specific


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2.Is the pricing clearly informed on the Shelf?

a)Yes( ) b) No( )

Out of 100% respondents,

79% of respondents said that pricing is clearly informed in the self

21% of respondents said that pricing is not clearly informed.

79%

21%

Is the pricing clearly informed on the self?

YES NO


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3.Do you think Offers are clearly informed through Displays in

Store?

Yes( ) b) No( )

Out of 100% respondent,

70% of the respondents said that offers are clearly informed through

displays in store

30% of the employs think that offers are not clearly informed.

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

70%

30%


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4.How do you rate the arrangement of Products in Store?

a) Poor ( ) b) average ( ) c) good ( ) d) outstanding ( )

5% of the respondents said that the arrangement of products is

poor whereas 37% said that arrangement is average whereas

53 % of respondents said that arrangement is good. Only 5% of

respondents said that arrangements were outstanding.

5%

37%

53%

5%

how do you rate the arrangement of

products in store?

poor

average

good

outstanding


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5.Do you think due to displays it is easy to shop in Store?

a)Yes( ) b) No( )

Out of 100% of respondents,

86% of respondents said that due to displays it is very easy to

shop whereas 14% of respondents said that displays doesnt

help them in shopping.

0%

20%

40%

60%

80%

100%

YES

NO

86%

14%


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6. Does the Visual Merchandising activities in Store made you to visit Store

Again?

a) Yes( ) b) No( )

Out of 100 respondents,

72% of customers said that visual merchandising activities in the

store made them to visit store again

28% of customers said that it doesnt much attract them.

0%

10%

20%

30%

40%

50%

60%

70%

80%

72%

28%

YES

NO


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7. Which is the best communication media which attracts you to come

bigbazaar?

Out of 100 respondents,

35% of them said that ads shown in the T.V attracts them towardsshopping at BIG BAZAAR.

30% of respondents said that ads given in the news paper attracts

them.

19% of them said that others media such as friends, signboards,

radio and so on attracts them.

16% of them not responded.

0% 5% 10% 15% 20% 25% 30% 35%

T.V

NEWS PAPER

OTHERS

NOT RESPONDED

35%

30%

19%

16%


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8. Do you like the atmosphere inside the store?

a) Yes( ) b) No( )


80% of respondents said that they like the atmosphere inside the

store whereas 20% of respondents said that they didnt like the

atmosphere.

80%

20%

YES

NO


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9. Do you like the frequent display changes inside the store?

a) Yes( ) b) No( )

Out of 100% respondents, 79% of respondents said that they like the

frequent display changes inside the store

Whereas 29% of the respondents said that they didnt like the

frequent display changes.

79%

21%

YES

NO


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10.How important is the ambience of the store while shopping?

a) Very important( ) b) important( ) c) not important( ) d) not at

all important( )


26% of respondents said that the ambience of the store while

shopping is very important.

56% of respondents said that ambience of the store while shopping

is important.

12% of respondents said that ambience is not important.

6% of respondents said that for them ambience of the store is not at

all important.

0%

10%

20%

30%

40%

50%

60%

very important important not important not at all important

26%

56%

12%

6%


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11.How do you rate the store as basis of colors and lighting?

a) poor( ) b) average( ) c) good( ) d) outstanding( )


3% of respondents said that stores color and lighting are poor.

21% ofrespondents said that stores color and lighting are average.

64% of respondents said that stores color and lighting are good.

Only 12% of them said that color and lighting are outstanding.

0% 10% 20% 30% 40% 50% 60% 70%

POOR

AVERAGE

GOOD

OUTSTANDING

3%

21%

64%

12%


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12.How do you rate the store on props and decorative items?



4% of respondents rate the stores props and decorative items as

poor.


average.

49% of respondents rate the stores props and decorative items asgood.


outstanding.

0%

10%

20%

30%

40%

50%

POORAVERAGE

GOOD

OUTSTANDING

4%

42%49%

5%


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13.Does the Displays and Promotional offers informed in the store attracts

you?

a) Yes( ) b) No( )


71% of respondents said that the displays and promotional offers

informed in the store attracts them to shop.

Whereas 29% of respondents said the displays and promotional

offers informed in the store doesnt help much.

0% 10% 20% 30% 40% 50% 60% 70% 80%

YES

NO

71%

29%


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14.Did you find problem in reaching for items in the racks?

a) Yes( ) b) No( )


88% of respondents said that they didnt found any problem in

reaching for items in the racks.

While 22% of them said that they found problems in reaching for

items in the racks.

22%

88%

YES

NO


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15.Your overall shopping Experience at BIG BAZAAR?



9% of respondents rate that overall experience at BIG BAZAAR is

poor.

26% of respondents rate that overall experience at BIG BAZAAR is

average.

59% of respondents rate that overall experience is good.

While only 6% of respondents rate that overall experience is

outstanding.

0%

10%

20%

30%

40%

50%

60%

POOR AVERAGE GOOD OUTSTANDING

9%

26%

59%

6%


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FEEDBACK FORM sl.no._____

Could you please spare us a few minutes to tell us about your experience;

1) How frequently you visit big bazaar?

(a) once in a week( ) (b) twice in a week( ) (c) once in a month( ) (d)not specific( )

2) Is the pricing Clearly informed on the Shelf?

b) Yes( ) b) No( )

3) Do you think Offers are clearly informed through Displays in Store?

a) Yes( ) b) No( )

4) How do you rate the arrangement of Products in Store?


5) Do you think due to displays it is easy to shop in Store?

a) Yes( ) b) No( )

6) Does the Visual Merchandising activities in Store made you to visit Store Again?

b) Yes( ) b) No( )

7) Which is the best communication media which attracts you to come bigbazaar?

____________________

8) Do you like the atmosphere inside the store?

b) Yes( ) b) No( )

9) Do you like the frequent display changes inside the store?

b) Yes( ) b) No( )

10)How important is the ambience of the store while shopping?

1) Very important( ) b) important( ) c) not important( ) d) not at all

important( )


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11)How do you rate the store as basis of colors and lighting?


12)How do you rate the store on props and decorative items?


.

13)Does the Displays and Promotional offers informed in the store attracts you?

b) Yes( ) b) No( )

14)Did you find problem in reaching for items in the racks?

b) Yes( ) b) No( )

15)Your overall shopping Experience due to offers and discounts in XYZ Retail Store?


Name: Age-

Phone number: _________________ Email Address:


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Major Findings of Research

From the research conducted it is evident that overall ambience of the

store is a very important component of Visual Merchandising and clearlyinfluences Consumers purchasing decisions. Proper planning must be

done while designing the store since, a customer isHighly influenced by

the look and feel of the store. Effective visual merchandising is essential

to attract shoppers enticing them to make a purchase. Effective visual

Merchandising should also be supported by good sales staff to close

deals with shoppers.

1) Most of the people who visited Big Bazaar had no exact time frame.

2) Nearly half of the respondents believed that the overall store display at

Big Bazaar was good, and over 20% respondents feel that there was

further need for improvement.

3) Almost all the respondents felt that the overall ambience of the store is

important while shopping

4) Majority of the respondents believe that signs in the store were

informative. While few said otherwise.

5) 72% of respondents feel that Visual merchandising activities in store

made them to visit store again. While 28% of them said otherwise.

6) Majority of respondents like the frequent display changes inside the

store while few said otherwise.

7) Many respondents believed that Seasonal and High margin

merchandise were placed in high profile location.

8) Promotions, props and Decorative items are huge attractions with

regard to visual merchandising.

9) Almost all the respondents like the atmosphere inside the store.

10) About 78% of respondents said that they have no problem in reaching

for items in the racks while 22% of said otherwise.


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Recommendations

Based on the research and interaction with the customers, we make

following specific recommendations:

1) Faster replenishment of shelf during peak hours must be taken care of.

2) Customers who visit Big Bazaar weekly once or twice must be treated as

loyal customers and special attention must be given for them. Since

most of the respondents who visit the store has no time frame.

3) Lightings near the grocery department must be bright to enable the

customers to carefully select the groceries.

4) For casual customers items such as chocolates, biscuits, bubble gum,

chips must be kept near the billing area in order to stimulate last minute

purchasing or casual purchasing.

5) Flooring can be made innovative. Since the flooring currently at store is

plain and is of metallic cement colored. Floor Graphics can be used also

as signs to help locate certain segments of product.

6) Window display needs to be changed once every fortnight in order to

give a new look.

7) Fixtures at the store were rated as average. So decorative, creative

fixtures should be used to create a good store image.

8) Offers must be more clearly informed through displays in the store.

9) Displays and promotional offers must be made more attractive so that

they attract more customers.

10) Stores music should be pleasant as most of the customers feel it is

disturbing.


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ConclusionVisual merchandising when used effectively is no doubt, a powerful tool

to entice customers in making a purchase decision. Retailers can attract

more customers and increase sales by proper use of visual

merchandising techniques.

With new competitors entering into India Retail Sector such as Bharti

Wal-Mart, Tesco and many more, it becomes even more necessary for

Indian domestic retailers to focus and give importance to visual

merchandising techniques in order to create a good customer shopping

experience and use it as a customer retention tool.

Through effective use of visual merchandising a store can improve its

image and also build a brand that helps in achieving long term goals of

the retailer.

Arun's Visual Merchandising (1)

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Transcript of Arun's Visual Merchandising (1)