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Visual Merchandising at Retail Stores MPBIM 2009 A Project Report on VISUAL MERCHANDISING IN THE RETAIL SECTOR (A Case Study

of Best Practices and Effective Strategies of Visual Merchandising at Retail Stores, Bangalore) A Dissertation submitted in partial requirements for the award of MBA Degree of Bangalore University By DILIPA S NAIK Reg No: 07XQCM6021 MBA Fourth Semester (2007-2009 Batch) M.P.Birla Institute of Management Bangalore-560001 Under the Guidance and Supervision of Dr K V Prabhakar Senior Professor Page 1 M.P.Birla Institute of Management, Bangalore Visual Merchandising at Retail Stores MPBIM 2009 Page 2 DECLARATION I hereby declare that this dissertation entitled “Visual Merchandising in Retail Sector (Retail Stores, Bangalore)” is the result of my own research work carried out under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M P Birla Institute of Management, Bangalore. I also declare that this dissertation has not

been submitted earlier to any Institute/University/Institution for the award of any degree or diploma or similar title. Place: Bangalore Date: Merchandising at Retail Stores MPBIM 2009 Page 3 PRINCIPAL’S CERTIFICATE This is to certify that this dissertation entitled “Visual Merchandising in Retail Sector (Retail Stores, Bangalore)” is the result of research work carried out by Mr. DILIPA S NAIK under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M.P. Birla Institute of Management, Bangalore Place: Bangalore Date: (Dr. Nagesh S. Malavalli) Principal Visual Merchandising at Retail Stores MPBIM 2009 Page 4 GUIDE’S CERTIFICATE I hereby state that the dissertation entitled “Visual Merchandising in Retail Sector (Retail Stores, Bangalore)” is the result of research investigation carried Out by Mr. DILIPA S NAIK under my guidance and supervision. Place: Bangalore Date: Stores MPBIM 2009 Page 5 ACKNOWLEDGEMENT (Dr. K V Prabhakar) Senior ProfessorVisual Merchandising at Retail (Dilipa S Naik) Visual

I express my gratitude to Dr. Nagesh S. Malavalli, (Principal, M. P. Birla Institute of Management) for providing me with the academic support. I extend my sincere thanks to Dr. K V Prabhakar, Senior Professor, M.P.Birla Institute of Management, Bangalore for guiding me effectively

Dilipa S Naik Visual Merchandising at Retail Stores MPBIM 2009 Page 6 TABLE OF CONTENTS Contents EXECUTIVE SUMMARY ................................................................................................... 9 CHAPTER 1- INTRODUCTION ...................................................................................... 10 CHAPTER 2 - INDUSTRY PROFILE ................................................................................. 13 CHAPTER 3 - VISUAL MERCHANDISING .................................................................... 27 CHAPTER 4 - COMPANY PROFILE .............................................................................. 38 PART A- THEORITICAL SETTING................................................................................ 42 CHAPTER 5 - Significance of Research .................................................................... 43 CHAPTER 6 - Literature Review.................................................................................. 44 Chapter 7 – Research Gap ....................................................................................... 46 CHAPTER 8- Problem Statement and Research Objective.................................. 47 CHAPTER 9 - Hypothesis.............................................................................................. 48 CHAPTER 10 - Research Methodology .................................................................... 49 CHAPTER 11 - RESEARCH LIMITATIONS ..................................................................... 50 PART B - SURVEY FINDINGS ..................................................................................... 51 CHAPTER 12 - Data Analysis & Inference ................................................................ 52 CHAPTER 13 - Hypothesis Testing .............................................................................. 82 CHAPTER 14 - Major Findings of Research .............................................................. 84

....................................................................................................... biscuits for casual customer................................... 93 SELECT BIBLIOGRAPHY ........................................opinion on space between aisles..................... 52 Table 2 – opinion on store display ...........................................opinion about soft drinks. 100 Directions for further Research........... 86 CHAPTER 15 ................................................................................................PART C .....................opinion on fixtures & hardware .......... 65 Table 8 – opinion of signs in the store .................................. 101 List of Tables Table 1 – frequency of visit ........................... 76 Table 13 – opinion on seasonal & high margin merchandise locations. 55 Table 3 – opinion of ambience of store .......................................................... 59 Table 5 – opinion of color & lighting ............................................................. 96 EXPALANATION TO RESEARCH INSTRUMENT USED.................RECOMMENDATIONS............................................................................................ 80 Table 15 ................................... 63 Table 7........................ 78 Table 14 – opinion on overall professionalism of the store............................... 67 Table 9 – opinion on convenience in reaching for items in rack ......................................................... 94 Visual Merchandising at Retail Stores MPBIM 2009 Page 7 QUESTIONNAIRE ............ 86 CHAPTER 16 ......................................................................................... 74 Table 12....................................... 57 Table 4 – opinion of store design...............Hypothesis Testing........ 92 Annexure .........Recommendations ................................................................................................................ 69 Table 10....................................................................... 72 Table 11............................................................................. 83 Visual Merchandising at Retail Stores ..............................................................opinion on whether window display should be changed weekly................ 61 Table 6 – opinion of props & decorative items ......................................................................................................................................................Conclusion.....................................

.......................... that creates a positive image of the business and results in attention......................... 19 Figure 4 ............. 63 Figure 10 ............................... 59 Figure 8 .......opinion of fixtures & hardware ................................................MPBIM 2009 Page 8 List of Charts Figure 1 Retail Sales in India............................... 76 Figure 16 ................................................. 61 Figure 9 .Frequency of visit to Retail Stores ............................................................. 17 Figure 3 ......... both exterior and interior.. 16 Figure 2...................... 81 Visual Merchandising at Retail Stores MPBIM 2009 Page 9 EXECUTIVE SUMMARY “Visual Merchandising is everything the customer sees................................................................. interest............................................................... biscuits located at exit doors for casual customers .............opinion on seasonal & high margin merchandise......................................................................opinion on window display ........opinion of ambience of Retail Stores...........................opinion of color & lighting.......................................................................................................opinion of props & decorative items.......................opinion of store dispaly.opinion on convenience in reaching for items in the rack . 65 Figure 11 ........................ 78 Figure 17 ............ 55 Figure 6 ......................Projected Retail in India............................ 53 Figure 5 ................. 70 Figure 13 – opinion on chocolates............................................................... 68 Figure 12 ......................................................................... 74 Figure 15 ........................demographics............opinion on overall professionalism of the store ...................opinion of store display.............................opinion on space between the aisles...opinion of signs at Retail Stores ............ 57 Figure 7 ........................................... desire and action on part of the customer” ........................ 72 Figure 14 .........

The methodology followed is questionnaire method with a total sample size of 100 respondents. . Bangalore. Visual merchandising will lead to impulse purchase of the product. The data is tabulated and graphically represented through. The project deals with components of Visual Merchandising and its influence on customer purchasing decision. The field of . Visual Merchandising at Retail Stores MPBIM 2009 Page 10 The ambience of the store is a very important element in Visual Merchandising as it influences consumers in purchase decision. 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 Retail Stores. CHAPTER 1‐ INTRODUCTION RETAILING Visual Merchandising at Retail Stores MPBIM 2009 Page 11 RETAILING Retailing consists of those business activities involved in the sales of goods and services to consumers for their personal.. Bar graph. the understanding of Visual Merchandising impact and effectiveness is still in its infancy. family or household use. The study is based on how the visual merchandising components such as Color and Lighting. But even as it continues to grow. 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. Fixtures and Hardware. Props and Decorative items.There is a growing recognition of the need for an effective Visual Merchandising. Piecharts. The study is conducted at Retail Stores. Store Design and Display and overall ambience of the store plays a crucial role in influencing the purchase decision making of the customer.

The success of a retailer depends on how well he/she selects. It has enormous impact on the economy. or multiple segments). more sophisticated management practices and industry consolidation. Retailing is the final stage in the distribution process. marketing planning can easily be dominated by the actions of competitors or internal influences. the ultimate decider of the eventual success of an alternative retail channel is the CONSUMER. generally as a consequence of new technologies. As in all other industries. Since consumers are extremely crucial for retailers. non-profit firms. it does not necessary have to include a . market segment. identifies and understands his customers.retailer. and other organization are also considered as retailers when they sell goods and/or services to final consumers. an understanding of consumer behavior is an essential prerequisite of successful retail marketing strategy and one of the most fundamental principles of in exerting influence on consumer patronage decision process. The feasibility of new retail channels is also highly dependent on retailers. Ability to select the type of consumer segments to reach (mass markets. Consumers refer to individuals who buy products and services for themselves or on behalf on their households. Competition in the retailing scene has intensified manifold for the past few decades.retailing is both fascinating and complex. Without customer focus. to identify the characteristics and needs of the . and its relationship with companies that see goods and services to retailers for their resale or use. Manufacturers. These trends have been especially pronounced in the food industry. and wholesalers. They are invariably either users of these products or Visual Merchandising at Retail Stores MPBIM 2009 Page 12 services or responsible for the welfare and well being of those who are. importers. in distribution. There has been a significant amount of studies that examine the issues of retail channel management and retail marketing strategies to tackle the fierce competition in existing retail channels in food industry.

. the most successful examples of innovation and evolution in retail formats are retailers that respond accurately and profitably to previously unsatisfied needs.ft and more • Large supermarkets. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. ft.000 sq. • Discount/shopping list grocery Visual Merchandising at Retail Stores MPBIM 2009 Page 13 CHAPTER 2 ‐ INDUSTRY PROFILE INDIAN RETAIL SCENARIO Visual Merchandising at Retail Stores MPBIM 2009 Page 14 RETAIL INDUSTRY IN INDIA The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores. typically 750-1. typically 8. • Convenience stores.000sq.000 sq.specific target market and understanding how consumers make decisions. Organised retail is on all time high in India. typically 1.500-5. typically 3.000 sq. ft. • Mini supermarkets. ft. hypermarkets. supermarkets and specialty stores. The sector is at an inflexion point where the growth of organised retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. According to Peter McGoldrick. TYPES OF RETAIL OUTLETS The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: • Hyper marts. The Indian population is witnessing a significant change in its demographics.000-2.

• The annual growth of the retail market in India is expected to be around 8 per cent. and is likely to reach 22 per cent by 2010. • The total retail market size in India is likely to touch US$ 416 billion by 2010. • The estimated annual growth of organised retail sector is 40 per cent. • The investment into modern retailing formats over the coming 4-5 years is expected to be around US$ 25-30 billion. various brands which are gaining value thereby enhancing industry growth. In a joint study recently conducted by ASSOCHAM and KPMG. availability of various funding options. It is currently around 12 per cent.The growth is boosted by various factors such as availability of professional practices. regulations like VAT implementation to make processes simple. media proliferation. the following findings were revealed: • The total retail market size in India in 2008 was estimated at US$ 353 billion. The Indian retail market. • The size of organised retail sector by 2010 is estimated to reach US$ 51 billion. • The present share of organised retail sector is estimated at 7 per cent. which is the fifth largest retail destination globally. sea change in demographics of country and international exposure. • The estimated share of organized retail in total retail by 2010 is 12 per cent. The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. Retail Sales in India Visual Merchandising at Retail Stores . was ranked second after Vietnam as the most attractive emerging market for Visual Merchandising at Retail Stores MPBIM 2009 Page 15 investment in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI). in 2008.

1 per cent. with India projected to outpace the other developed economy markets by 2050. with the Indian consumers confident about their earnings and are spending a large portion of their high disposable incomes. Analysts predict India to sustain an average GDP growth rate of 5 per cent till the mid of this century. The average annual growth rate for 1994-2004 was pegged at 6. Rapid Economic Growth The fast and furious pace of growth of the Indian economy is the driving force for Indian consumerism. with its young population just beginning to embrace significant lifestyle changes. India offers to be an attractive destination for global corporations and leading retailers seeking emerging markets overseas. Projections by analysts suggest that India has the potential to be labelled the fastest-growing economy and outpace the developed economies by 2050. comparable to most of the leading economies .Projected Retail in India Page 17Visual Merchandising at Retail Stores MPBIM 2009 Page 18 Advantage India Against the backdrop of an accelerating modern retail revolution.MPBIM 2009 Figure 1 Retail Sales in India Page 16 Projected Retail in India Visual Merchandising at Retail Stores MPBIM 2009 Figure 2. second only to China. The more recent growth rates of over 9 per cent posted for India. promise a continued robust growth story. India presents a significant market. Private consumption accounted for 62 per cent of India’s GDP in 2004-05.

700. India is home to 20 per cent of the global population under 25 years of age. with the median age of 23 years. India is home to a large base of consumers with annual incomes ranging from US$ 1. comprising of over 75 million households. with the share set to reach its maximum in 2010. Two-thirds of Indian population is under 35. The Young India Against the backdrop of an ageing world.000 – US$ 4. The large proportion of the working-age population translates to a lucrative consumer base vis-à-vis other economies of the world. Figure 3 .demographics Page 19Visual Merchandising at Retail Stores MPBIM 2009 Page 20 Potential untapped market India ranks first. spanning from rural retailing to luxury retailing. A steadily rising percentage of rich and super rich population and impressive disposable incomes offers a spectrum of opportunities. placing India on the radar as one of the most promising retail destinations of the world. 35 per cent of India’s population is under 14 years of age and more than 60 per cent of the population is estimated to constitute the working age group (15-60) till 2050. Organised retail penetration is on the rise and offers an attractive proposition for entry of new players as well as scope for expansion for existing players. The impressive retail space availability and growing trend of consumerism in the . as opposed to the world median age of 33. India possesses the advantage of having a largely young population. in terms of emerging market potential and is deemed a “Priority 1” market for international retail. ahead of Russia. Visual Merchandising at Retail Stores MPBIM 2009 This trend is projected to continue for the next decade.around the world.

Indian retailers are a happy lot.000.000 higher education institutions in 2005-06.700.5 per cent during the September 2008 quarter over the same period in 2007. with over 15 premier institutes offering specialised courses in Retail Management. With the 30-40 per cent drop in retail rentals. Abundant availability of skilled Labour India has a vast resource base of talent and skilled labour. “The Indian economy is more stable than other economies across the world and one must not confuse India with the rest of the world”. Despite the inflation experienced during the period. retailers are also foreseeing further drops in rentals in 2009 and they are optimistic about their expansion plans for this year.000 students were enrolled in about 150. Indian retailers are still optimistic about the India growth story. The great Indian consumer market is still going strong. India has one of the largest number of retail outlets in the world.emerging cities and small towns add to the market attractiveness. In fact.000 in 14. A report by . the second-quarter results of leading 70 consumer-related firms revealed that their aggregate revenues increased by 8. Despite the global economic slowdown. the language skills of the Indian workforce score higher than that of emerging economies.000 pre-college institutes and over 11. Even though this was a tad lower than the 9 per cent growth posted during the first quarter of 2008-Visual Merchandising at Retail Stores MPBIM 2009 Page 21 09. Over 37. With English being the language for business in India. Retail Management is a sought after education stream amongst students. it was a lot higher than the 7 per cent registered during the previous three quarters for these firms. The ETIG analysis carried out by the Economic Times revealed that most mass consumer goods and service in India were not much affected by the global economic slowdown.

Even as the organised retail market is starting to take off. the franchise route is available for retail operators.Images Retail estimates the number of operational malls to grow more than two-fold. Government Initiatives The government has taken various measures to promote and encourage investment in the Indian retail industry. Besides. even as the stringent regulatory environment encumbers investment by foreign brands. Cooperatives have been present in India for several decades. Organizational characteristics Given the traditional and underdeveloped state of the Indian retail sector. Most of them belong to independent enterprises in the form of small family businesses. which viewed the cooperative . with 205 million square feet by 2010. and a further 715 malls to be added by 2015. This fuels the growth of the grey market and duty-free purchases. with major retail developments even in tier-II and tier-III cities in India. To further attract global retailers. the organizational characteristics of retail enterprises are rudimentary. Visual Merchandising at Retail Stores MPBIM 2009 Page 22 However. Top realtors and local retail chains are developing malls in regional boroughs. to cross 412. the economic survey 2007–08 has suggested a share for foreign equity in all retail trade and 100 per cent in respect of luxury brands and other specialised retail chains. specifically to sell premium branded goods. there is an associated surge in branded discount outlets in India. spurred by the encouragement given by the Indian Government. many industry experts feel that the Indian tariff structure has to be streamlined as India levies one of the highest duties and taxes on imported luxury goods. The Government allows 100 per cent FDI in cash and carry through the automatic route and 51 per cent in single brands.

while retailing currently remains closed to FDI. this is an area of ongoing debate. since the 1990s. or in businesses upstream of retailing. Visual Merchandising at Retail Stores MPBIM 2009 Page 23 Price controls have been progressively liberalized since 1992. both as a global base and as a domestic market. Sales of franchises grew at a rapid pace of 14% per annum over the review period. franchising emerged as a popular mode of retailing. but a small number of items remain fully controlled. with recent calculations putting the annual value of Indian retailing anywhere between US$180 billion and US$292 billion in 2003. Regulatory controls on foreign direct investment (FDI) have relaxed considerably in recent years. At present the . India represents an economic opportunity on a massive scale. franchising or licensing. competition and foreign investment since the 1990s led to a proliferation of brands with both foreign and Indian companies acquiring strong brand equity for their products. There are also extensive controls on packaging. such as wholesaling.movement as an integral component of its erstwhile socialist policies. The retail sector is largely made up of what is known in India as the unorganized sector. located in residential areas. However. or by having a manufacturing base in India. there were about 35. However.000 outlets run by cooperatives. This means that foreign retailers and consumer goods manufacturers can only participate in the retail market through indirect access strategies. there has been a reduction in government support for cooperatives. with a shop floor of less than 500 square feet. Estimates of the size of the retail sector vary. Hence. labelling and certification. Economic liberalization. This sector consists of small family-owned stores. However. In 2002. the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration.

The number of department stores is growing much faster than overall retail.organized sector (everything other than these small family-owned businesses) accounts for only 2 to 4 percent of the total market although this is expected to rise by 20 to 25 percent by 2010. coupled with poor quality of the distribution sector. Visual Merchandising at Retail Stores MPBIM 2009 Page 24 Consumer credit will also grow. This depends both on the growth of personal disposable income and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. driven by changing lifestyles and by strong income growth. The structure of retailing will also develop rapidly. Companies expect retail growth in the coming five years to be stronger than GDP growth. which in turn will be supported by favourable demographic patterns. and announced development plans project at least 150 new shopping malls by 2008. They consider that there are considerable opportunities for organized retailers in the kind of rural territories that many companies have failed to address. Poor quality of infrastructure. assisted by the likely fall in retail lending rates and more efficient and consumer-friendly lending practices. and inventories which have to be maintained at an unusually high level. Many of the companies surveyed believe that the potential size of this market is underestimated. Distribution continues to improve. at an annual 24 percent. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades. A critical issue is how fast and how far the consuming class will grow. Shopping malls are becoming increasingly common in large cities. results in logistics costs that are very high as a proportion of GDP. Marketing and . but it still remains a major inefficiency.

Companies expect that the next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Foreign brands remain very powerful in India. and the emergence of the kind of trend-conscious consumers that India has not seen in the past. Companies are concerned about identifying consumer insights and the profusion of media channels. The main growth opportunity in the segment is in processed foods: rapid growth in the processed food segment is already apparent. Advertising is becoming a retailger part of the marketing mix. And if retailing is liberalized. The very fact that Visual Merchandising at Retail Stores MPBIM 2009 Page 25 politicians have left the issue open leads us to think the restrictions are going to be reviewed. say companies.advertising are of increasing interest and concern to consumer companies. as consumers move away from traditional retail settings reliant on family retailers. changing lifestyles and food habits are resulting in the rapid expansion of branded food outlet and café chains. Organized jewellery retailers are increasingly offering brand solutions to the demand for quality and value. All companies agree that Indian consumer markets are changing fast. but so will competition. media channels that allow companies to communicate with consumers are growing in diversity and reach. growth will be boosted. with rapid growth in disposable incomes. the development of modern urban lifestyles. say companies. but increasingly brands have to be associated with value. Indian companies know Indian markets better. Indian consumers are becoming increasingly sophisticated and knowledgeable about products. but foreign players . Food and beverage offer the greatest organized retail growth opportunities. Gemstones and jewellery represent the most significant specialist segment of Indian retailing. especially in clothing and personal care products.

the retailgest success is K Raheja's Shoppers Stop.000 sq. discount stores or factory outlets. Retail Formats in India Malls The largest form of organized retailing today.00. Piramyd. RPG's Music World and the Times Group's music chain Planet M. Discount Stores As the name suggests. offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. ft) across India and even has its own in store brand for clothes called Stop. Retail Stores. classified into localized departments such as clothing.000 sq ft to 7. Further. a Pantaloon. groceries.000 sq ft and above. catering to a variety of consumer needs. Chains such as the Bangalore based Kids Kemp. Specialty stores. all under a common roof. Hyper Marts/ Super Markets . toys. are focusing on specific market segments and have established themselves strongly in their sectors. Among these. ft. home. in proximity to urban outskirts Ranges from 60. which started in Mumbai and now has more than seven large stores (over 30. Located mainly in metro cities. Department Stores Large stores ranging from 20000-50000 sq. the power to drive down prices. The product category can range from a variety of perishable/ nonperishable goods. service and entertainment. They lend an ideal shopping experience with an amalgamation of product. Reliance.will come in and challenge the locals by sheer cash power. the Mumbai books retailer Crossword. etc. Examples include Shoppers Stop. Departmental Stores are expected to take over the apparel Visual Merchandising at Retail Stores MPBIM 2009 Page 26 business from exclusive brand showrooms.

Super Markets can further be classified in to mini supermarkets typically 1.000 sq ft. also known as Category Killers. catering to varied shopper needs are termed as Supermarkets. interest. Visual Merchandising can help create that positive customer image that leads to . offer several brands across a single product category. having a strong focus on food & grocery and personal sales. Visual Merchandising at Retail Stores MPBIM 2009 Page 27 CHAPTER 3 ‐ VISUAL MERCHANDISINGVisual Merchandising at Retail Stores MPBIM 2009 Page 28 VISUAL MERCHANDISING “Visual Merchandising is everything the customer sees.000 sq. desire and action on part of the customer” A successful retailing business requires that a distinct and consistent image be created in the customer’s mind that permeates all product and service offerings.500 sq ft to 5. These stores today contribute to 30% of all food & grocery organized retail sales. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day.000 sq ft to 2. These are located in or near residential high streets. both exterior and interior. These usually do well in busy market places and Metros.000 sq ft and large supermarkets ranging from of 3. that creates a positive image of the business and results in attention. seven days a week. MBO’S Multi Brand outlets. Prices are slightly higher due to the convenience premium.Large self-service outlets. Convenience Stores These are relatively small stores 400-2. feet located near residential areas.

Visual Merchandising Evolution Every shopkeeper and merchant's primary objective is to sell merchandise. It not only communicates the store’s image. that is why one picture is worth a thousand words. The basic objective for visual merchandising is a desire to attract customers to place of business in order to sell the merchandise. but also reinforces the stores advertising efforts and encourages impulse buying by the customer. Visual Merchandising at Retail Stores MPBIM 2009 Page 29 Eighty percent of our impressions are created by sight. A store should have an inviting appearance that makes the customer feel comfortable and yet eager to buy. A story can be told that communicates to the prospective customer what the store is all about. Visual merchandising is a major factor often over looked in the success or failure of a retail store. Visual merchandising is offered to the customer through exterior and interior presentation. 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. When the giant nineteenth century dry goods establishments like Marshall Field & Co. The store windows no longer simply allowed natural light to shine in the building or act as storage space for stock.successful sales. It is second only to effective customer relations. Each customer has a mental image of a store and its merchandise. Some businesses maintain a minimum staff to reduce costs. they became . Each should be coordinated with the other using the store’s overall theme. shifted their business from wholesale to retail the visual display of goods became necessary to attract the retail customer. It includes the dramatic presentation of merchandise as well as other important subtle features that create the store’s overall atmosphere. which means it is even more important for the merchandise to sell itself.

it became widespread only in 1970 even though it was coined during the 1940s. By the late 1920s. the window trimmers were referred to as display men. stand out from the competition and be remembered. signing. presentation. they must always remain true to the underlying store image. The following elements combine to form a distinctive image . image is the foundation of all retailing efforts. Visual Merchandising at Retail Stores MPBIM 2009 Page 30 As far as the term Visual Merchandising is concerned. eventually displacing the importance windows altogether in suburban malls. just as advertising industry called its people ad men. While store layout. developing a powerful image provides the opportunity to embody a single message. In due course visual merchandising became an inalienable part of the fashion and retail industry.important venues to attractively display the store's merchandise. displays and events can all change to reflect newness and excitement from week to week. the design aesthetic used in window displays moved indoors and became part of the overall interior store design. Gradually. As a rule. Visual Merchandising is increasingly perceived as a part of the overall brand communication process. The industry is evolving and entering new domains. 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. From the late 1800s till the 1920s. visual merchandisers were known as window trimmers. season to season. 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. For the retailer.

Image forms the solid foundation for the remaining components of Maximizing Store Impact STORE DESIGN Store design plays a crucial role in branding: it reflects and reinforces the corporate image. by combining words and pictures. but also makes a positive Visual Merchandising at Retail Stores MPBIM 2009 Page 31 impression within those precious few seconds. typeface. • Racetrack: also known as loop. VISUAL TRADEMARK An identifiable trademark adds a visual image to the memory recall of a store name. sounds. arranges fixtures and aisles asymmetrically. 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. 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. colour. The sights. • Free Form: also known as boutique. Visual merchandising creates a connection between the company’s image and the look of the store. shape. smells and other any other aspect should therefore reflect what the retailer brand is about and what its attributes are. texture and/or style .that not only reaches out and grabs the customer's attention. It provides a major aisle to facilitate customer traffic that has access to the stores multiple entrances. An effective name is consistent with both the product mix and the store atmosphere.

Visual Merchandising at Retail Stores MPBIM 2009 Page 32 STOREFRONT Storefront is also an important element. EXTERIOR ARCHITECTURE A store's exterior look is often referred to as the architecture. 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. adding motion. and comprises aspects such as building materials. colours and textures.to make it stand out. INTERIOR DESIGN ELEMENTS Visual Merchandising at Retail Stores MPBIM 2009 Page 33 . architectural style and detail. These elements give a lasting first impression to the consumer. It is important that the exterior look and feel right to the shopper. 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. signing and window displays. which adds to the store image like the exterior architecture. many retailers are employing new design techniques which include projecting or cantilevering the store sign beyond the lease line. also make an important impact on the consumers. The flooring and the number of floors a retail outlet has. Windows are integral in creating a positive impression since they offer an opportunity to begin telling the store's unique merchandise story.

They are achieving balance. Price. Colour Presentation: A major role in a display is that of the colour and lighting. Attention and interest on the merchandise.The elements of interior design can be used to create an image that matches the desired customer profile. They are used to display merchandise. provide dominant point. 5. 2. FIXTURES A major consideration in developing an appropriate store design involves the use of fixtures. to guard it and to provide a storage space for it. Style/Item Presentation: organizing stock by style or item Visual Merchandising at Retail Stores MPBIM 2009 Page 34 3. The following are the different presentation techniques: 1. create eye movement etc. Idea-Oriented Presentation: a method of presenting merchandise based on a specific idea or image of the store. Vertical Merchandising: merchandise is presented vertically suing walls and high gondolas .lining: is the technique when retailers offer a limited number of predetermined price points within a classification. MERCHANDISE PRESENTATION TECHNIQUE Merchandise Presentation technique is one of the most important component of Visual Merchandising. Aesthetic and innovative use of them can lure customers to visit more aisles than they usually do and spend more time there. An attractive and informative display can help sell goods. DISPLAYS Displays play an important role in a retail store. to help sell. They should be attractive and focus customers. There are several principles that help ensure this effectiveness. 4.

6. Colour probably more than any other factor except price. SHELVING The material used for shelving as well as its design must be compatible with the merchandising strategy and the overall image desired. LIGHTING Proper lighting is one of the most important considerations in retail outlet.stopper. CEILINGS Ceiling represents a potentially important element of interior design. Lighting is used to highlight merchandise. Music and scent in the retail outlet can influence consumer behaviour to a large extent. Tonnage Merchandising: here large quantities of merchandise are displayed together to enhance and reinforce a stores price image 7. It is an integral part of the stores interior and exterior design. Frontal Presentation: here the retailer exposes its much of the product as possible to catch the customer’s eye 8. Today lighting has become a display medium. muffs noise in high-traffic areas and strengthen the store image. Fixtures: the primary purposes of fixtures are to efficiently hold and display merchandise. FLOORING Visual Merchandising at Retail Stores MPBIM 2009 Page 35 Flooring choices are important because the coverings can be used to separate departments. that catches the consumers attention. COLOUR The psychological effect of colour continues to be important to retailers. . Intelligent use of colour is important in store design. is the . Ceiling heights colour and material used will influence the store look. sculpt space and capture a mood or feeling that enhances the stores image.

Stores began to move in the direction of self service . 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. VM is the invisible force that doing a lot of the pushing behind the trend. Trends put 'fun' in fundamental merchandising.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 décor • 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: • 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 mealVisual Merchandising at Retail Stores MPBIM 2009 Page 36 VM supports retailing trends: • A trend is a direction in which fashion seems to be moving.

The display and layout should differentiate the store from competition. Colors and design should be characteristic of the brand image. Their purchase is not pre-planned and because these impulse purchase items are relatively cheaper they might buy them in a whim. especially in bookstores because customers might not be able to reach the books. . gifts) should be close to the entry and exit doors for non-serious or causal customers would like to browse the whole store.• Assortment which the consumers like is another trend • V Merchandisers should become experts in anticipating and responding to lifestyle trends. watch straps. Don’ts • Avoid too many floors. • Racks shouldn’t be too high. 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 Visual Merchandising Do’s and Don’ts Visual Merchandising at Retail Stores MPBIM 2009 Page 37 Do’s indow display should be changed weekly or fortnightly to ensure freshness. • Impulse purchase items (perfumes. • Lighting shouldn’t be poor and at the same time shouldn’t be very bright. 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.

aLL. Food Stores. Star and Sitara. It also shouldn’t be unaesthetic. Blue Sky. Some of its other formats include. the company operates over 5 million square feet of retail space. futurestores. a chain of seamless destination malls. Brand Factory. Visual Merchandising at Retail Stores MPBIM 2009 Page 38 CHAPTER 4 ‐ COMPANY PROFILE RETAIL STORES Visual Merchandising at Retail Stores MPBIM 2009 Company Profile Pantaloon Retail (India) Limited. A subsidiary company. convenience and quality and Central. a chain of fashion outlets. • The display shouldn’t be contrast to the section in which it is. selling home furniture products and E-Zone focused on catering to the consumer electronics segment. touch and feel of Indian storess with aspects of modern retail like choice. The company’s leading formats include Pantaloons. Depot. Fashion Station. is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Collection i.Shadows are essential for that added effect. operates Home Town. a large-format home solutions store. Page 39 Pantaloon Retail was recently awarded the International Retailer of the Year . Retail Stores. Shoe Factory. Home Solutions Retail (India) Limited. has over 450 stores across 40 cities in India and employs over 18. Headquartered in Mumbai (Bombay). The company also operates an online portal. a uniquely Indian hypermarket chain. a supermarket chain. blends the look.com. Top10.000 people.

the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India.. a chain of seamless malls. Mr. Led by its flagship enterprise. Kishore Biyani. In the lifestyle segment. Retail stores is owned and operated by Future Stores India Ltd. Central. While retail forms the core business activity of Future Group. Pantaloon Retail. a business group catering to the entire Indian consumption space. As part of India’s largest retail chain.2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. leisure and entertainment. Visual Merchandising at Retail Stores MPBIM 2009 Page 40 Pantaloon Retail is the flagship company of Future Group. Future Group Future Group. led by its founder and Group CEO. Food Stores. Headquartered in Mumbai (Bombay). a fashion retail chain and Central. a subsidiary of Pantaloon Retail (India) Limited. group subsidiaries are present in consumer finance. is one of India’s leading business houses with multiple businesses spanning across the consumption space. Retail . Pantaloon Retail (India) Limited led by Kishore Biyani is the country's largest retailer. Fashion Station. Depot and many others. Pantaloon Retail employs around 30. retail real estate development. The company follows a multiformat retail strategy that captures almost the entire consumption basket of Indian customers. It owns and operates multiple retail formats including Pantaloons. the group operates Pantaloons. Retail Stores. brand development. so that customers get a great range of products at great prices. insurance. it enjoys the benefits of buying in bulk for the entire group and keeps the margins low. capital. In the value segment.000 people and is listed on the Indian stock exchanges. retail media and logistics. EZone. its marquee brand.

Visual Merchandising at Retail Stores MPBIM 2009 Page 41 In 2008. • We shall be efficient. Home Town and rural retail chain.com. making consumption affordable for all customer segments – for classes and for masses. futurestores. touch and feel of Indian storess with the choice and convenience of modern retail. Group Vision Future Group shall deliver Everything. sportswear retailer. • We shall infuse Indian brands with confidence and renewed ambition. among others. • We will be the trendsetters in evolving delivery formats. The first set of Retail Stores stores opened in 2001 in Kolkata. Depot. Hyderabad and Bangalore. Ezone. marking the fastest ever organic expansion of a hypermarket.Stores is a hypermarket format that combines the look. books and music chain. Every time for Every Indian Consumer in the most profitable manner. • We shall ensure that our positive attitude. Aadhar. Visual Merchandising at Retail Stores MPBIM 2009 . Retail Stores opened its 100th store.conscious and committed to quality in whatever we do. 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. It also operates popular shopping portal. Planet Sports. home improvement chain. creating retail realty. sincerity. The group’s specialty retail formats include. Everywhere. humility and united determination shall be the driving force to make us successful. cost. electronics retailer.

. Through them you are able to communicate to your target customer your brand’s identity. You also want to build loyalty and repeat purchases by creating a good shopping experience. it is a key component of your store’s unique identity and your best form of advertising. and creating a memorable impression that will encourage the customer to come back over and over again. If they are happy you know that they are going to buy. • Create a memorable impression: make it a feast for the senses. It’s about temptation. always remember that visual merchandising is an extension of your store’s customer service. Customers are giving you what little time they have.Page 42 PART A‐ THEORITICAL SETTINGVisual Merchandising at Retail Stores MPBIM 2009 Page 43 CHAPTER 5 ‐ 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 sales volume. You should reward them with benefits beyond the products you carry. you must make sure that they: • Enhance the feeling of service and make your customer feel good. what is unique and special about your offering and what makes you better than other stores. Shopping isn't just about picking up a product. Above all you want your customer to feel good and be happy. attraction. 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. Along with your store design. When deciding how to present your product in your store. That is why when planning for your store’s look and feel and product presentation.

Everyone is competing for the customers' dollar. texture. a retail consultant and founder of Inspire Retail . but be the result of poor presentation. hand lettered signs. desire and action on part of the customer” Source: Visual Merchandising for retailers by Holly Bastow Shoop. the Ohio State University Merchandising and display are an important part of the marketing plan. If your store looks like a bargain basement. North Dakota State University Gregory Passewitz. CHAPTER 6 ‐ Literature Review “Visual Merchandising is everything the customer sees. There are more choices out there for consumers than ever before.even for a retailer operating on a shoestring. This judgment may have little to do with the product itself.colour. In today's competitive retail environment a retailer cannot afford to consider merchandising as a 'frill'. Melanie McIntosh. lack of lighting and untidy displays send the message that your business isn't serious. So this has prompted me to take up the research. a holistic approach towards visual merchandising involving the Visual Merchandising at Retail Stores MPBIM 2009 Page 44 consumer’s perceptions has not attracted much of research effort. customers will expect bargain basement prices and may draw the conclusion that your product is poor quality. and should have a reasonable budget allocated . both exterior and interior. that creates a positive image of the business and results in attention. interest. While there is substantial amount of research on each of the components of visual merchandising. North Dakota State University Dale Zetocha. Posters covering the door and windows. and sound.

until they leave store . The shopping behaviour which governs the decision to buy is a function of . and product mix. is the store appearance professional? Visual Merchandising at Retail Stores MPBIM 2009 Page 46 Chapter 7 – Research Gap Visual Merchandising is an integral part of retail today. There is a growing recognition of need for Visual Merchandising. 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. It should be considered when you design your logo.hopefully with a purchase in hand. a British Columbia firm that helps retailers create strong. from their first sight of your store front. business cards. It is an integral component of the business image. • Are the store front and windows attractive & inviting? • Is all signage clear. You need to create an environment that attracts the customer.Solutions. professional business images that attract customers. Merchandising is also about understanding the way customers shop. letterhead. But even as it continues to grow. you can position your merchandise to increase sales. packaging. is comfortable to shop. Visual Merchandising at Retail Stores MPBIM 2009 Page 45 Merchandising is more than simply the arrangement of products on the shelf. and encourages the customer to return. you examine what the customers' experience. When you examine your merchandising. the understanding of Visual Merchandising impact and effectiveness is still in its infancy. brochures. By using this knowledge.

The VM is an excellent analytical tool for discovering the nature of these touch points. a holistic approach towards visual merchandising involving the consumer’s perceptions has not attracted 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. auditory and kinaesthetic. 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. These touch points comprise the customer environment and it is through interacting with that VM that customer preference is formed. the visual stimulus is the easiest and most widely used tool for attracting customers. Visual Merchandising at Retail Stores MPBIM 2009 Page 47 CHAPTER 8‐ Problem Statement and Research Objective VM carries with its 'touch points' from the customers' point of view. visual. 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 customer preference Visual Merchandising at Retail Stores MPBIM 2009 Page 48 CHAPTER 9 ‐ Hypothesis .three stimuli viz. While there is substantial amount of research on each of the components of visual merchandising.

. Construction of questionnaire: Visual Merchandising at Retail Stores MPBIM 2009 Page 50 The questionnaire was used as the respondents had to give a specific answer to the questions. 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. It finds facts.We seek to achieve the above objectives through testing the following hypothesis: H0: All factors are equally important in Visual Merchandising HA: All factors are not equally important in Visual Merchandising Visual Merchandising at Retail Stores MPBIM 2009 Page 49 CHAPTER 10 ‐ Research Methodology TYPE OF RESEARCH The study can well be described as descriptive. 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. the study will deal with the variables affecting the customer preference process via VM. A sample size of 100 respondents was chosen through random sampling technique. AREA OF ENQUIRY It is proposed to conduct research in Bangalore City. As a descriptive research.

in our opinion. the scope of our research investigation is restricted to only one retail unit in Bangalore City. However we will exercise due care to obviate it through meticulous cross checking of data.Sample Size Total 100 respondents were selected as the sample size. Random Sampling CHAPTER 11 ‐ RESEARCH LIMITATIONS Our research investigation is beset with the following constraints: • Time and resource constraints. Visual Merchandising at Retail Stores MPBIM 2009 Page 51 PART B ‐ SURVEY FINDINGSVisual Merchandising at Retail Stores MPBIM 2009 Page 52 CHAPTER 12 ‐ Data Analysis & Inference 1) How often do you visit Retail Stores? Respondents Once in 3 days 0 Once in a week 10 Monthly 23 No time frame 67 Table 1 – frequency of visitVisual Merchandising at Retail Stores MPBIM 2009 0 . • At the micro level. • Limited sample size. (Delphi Method). but. it is adequate enough to make valid projections. • Bias/prejudice creeping into the responses of the respondents.

10 23 67 0 10 20 30 40 50 60 70 80 Once in 3 days Once in a week Monthly No Time Frame frequency of visit Respondents Figure 4 . Page 53Visual Merchandising at Retail Stores MPBIM 2009 Page 54 2) What is your opinion of the Store Display? Respondents Very Good 15 . ¾ 10% visited the store Weekly.Frequency of visit to Retail Stores INFERENCE: From the above observations it is found that: ¾ 67% respondents visit to Retail Stores has no definite Time Frame. ¾ 23% of respondents visit Retail Stores once in a Month.

Good 53 Satisfactory 22 Poor 10 Very Poor 0 Visual Merchandising at Retail Stores MPBIM 2009 Table 2 – opinion on store display 0 10 20 30 40 50 60 Very Good Good Satisfactory Poor Very Poor St or e Di spl ay Respondents Figure 5 . Page 55Visual Merchandising at Retail Stores MPBIM 2009 Page 56 3) How important is the Ambience of the store while shopping? . ¾ 10% felt that Store Display was Poor. ¾ 22% felt that Store Display was Satisfactory.opinion of store dispaly INFERENCE From the above observations it is found that: ¾ 53% of respondents felt that overall Store Display at Retail Stores was Good. ¾ 12% of the respondents felt that overall Store Display was Excellent.

Page 57 . ¾ 56% of the respondents feel that Ambience of the Store is Important.Respondents Very Important 44 Important 56 Not Important 0 Visual Merchandising at Retail Stores MPBIM 2009 Not at all Important 0 Table 3 – opinion of ambience of store 44 56 00 0 10 20 30 40 50 60 Very Important Important Not Important Not at all Important Ambience Response Figure 6 .opinion of ambience of Retail Stores INFERENCE From the above observations it is found that: ¾ 44% of the respondents feel that Ambience of the Store is Very Important.

¾ While none of the respondents feel that Ambience of the store is not important. Visual Merchandising at Retail Stores MPBIM 2009 Page 58 4) How do you rate the store on basis of Store Design & Display? Respondents Excellent 14 Visual Merchandising at Retail Stores MPBIM 2009 Good 63 Average 23 Poor 0 Table 4 – opinion of store design 14 63 23 0 0 10 20 30 40 50 60 70 Excellent Good Average Poor St or e Design & Display Response .

Visual Merchandising at Retail Stores MPBIM 2009 Page 60 ¾ 23% of the respondents feel that Store Design and Display was Average. ¾ While none of the respondents felt that overall Store Design and Display was Poor. Page 59 ¾ 63% of the respondents feel that Store Design and Display was Good.Figure 7 . 5) How do you rate the store on basis of Colors & Lighting? Visual Merchandising at Retail Stores MPBIM 2009 Respondents Excellent 8 Good 66 Average 22 Poor 4 Table 5 – opinion of color & lighting 8 66 22 4 0 10 20 .opinion of store display INFERENCE From the above observations it is found that: ¾ 14% of the respondents feel that Store Design and Display was Excellent.

¾ 4% of the respondents feel that Color and Lighting at Retail Stores was Poor. ¾ 22% of the respondents feel that Color and Lighting at Retail Stores was Average. 6) How do you rate the store on basis of Props & Decorative items? Visual Merchandising at Retail Stores MPBIM 2009 Respondents Excellent 8 Good 71 Average 18 Poor 2 .30 40 50 60 70 Excellent Good Average Poor Col or & Li ght i ng Response Figure 8 .opinion of color & lighting INFERENCE Page 61 From the above observations it is found that: Visual Merchandising at Retail Stores MPBIM 2009 Page 62 ¾ 8% of the respondents feel that Color and Lighting at Retail Stores was Excellent. ¾ 66% of the respondents feel that Color and Lighting at Retail Stores was Good.

Table 6 – opinion of props & decorative items 8 71 18 2 0 10 20 30 40 50 60 70 80 Excellent Good Average Poor Props & Decorat ive it ems Response Figure 9 .opinion of props & decorative items Page 63Visual Merchandising at Retail Stores MPBIM 2009 Page 64 INFERENCE From the above observations it is found that: ¾ 8% of the respondents felt that Props & Decorative items at Retail Stores were Excellent. ¾ 71% the respondents felt that Props & Decorative items at Retail Stores was Good. .

opinion on fixtures & hardware 4 36 58 2 0 10 20 30 40 50 60 70 Excellent Good Average Poor Fixt ur es & Har dwar e Response Page 65 .¾ 18% the respondents felt that Props & Decorative items at Retail Stores was Average. ¾ 2% the respondents felt that Props & Decorative items at Retail Stores was Poor Visual Merchandising at Retail Stores MPBIM 2009 7) How do you rate the store on the basis of Fixtures & Hardware? Respondents Excellent 4 Good 36 Average 58 Poor 2 Table 7.

opinion of fixtures & hardwareVisual Merchandising at Retail Stores MPBIM 2009 Page 66 INFERENCE From the above observations it is found that: ¾ 4% felt that Fixtures and Hardware at Retail Stores was Excellent ¾ 36% felt that Fixtures and Hardware at Retail Stores was Good ¾ 58% felt that Fixtures and Hardware at Retail Stores was Average ¾ 2% felt that Fixtures and Hardware at Retail Stores was Poor Visual Merchandising at Retail Stores MPBIM 2009 Page 67 8) How Informative was the signs in the store? Respondents Very Informative 12 Informative 65 Not Informative 22 Not at all Informative 1 Table 8 – opinion of signs in the storeVisual Merchandising at Retail Stores MPBIM 2009 12 65 22 1 0 10 20 30 .Figure 10 .

40 50 60 70 Ver y Infor mative Infor mative Not Infor mative Not at all Informative Si gns i n t he st or e Response Figure 11 .opinion of signs at Retail Stores INFERENCE From the above observations it is found that: 12% felt that Signs at Retail Stores was Very Informative 65% felt that Signs at Retail Stores was Informative 22% felt that Signs at Retail Stores was Not Informative 1% felt that Signs at Retail Stores was Not at all Informative Page 68Visual Merchandising at Retail Stores MPBIM 2009 Page 69 9) Did you face problem in reaching for items in the rack? Respondents Yes 32 No 68 Table 9 – opinion on convenience in reaching for items in rack Visual Merchandising at Retail Stores MPBIM 2009 32 .

biscuits for casual customer 68 28 4 0 10 20 .opinion about soft drinks. Biscuits.opinion on convenience in reaching for items in the rack INFERENCE From the above observations it is found that: 32 % felt that they had problem in reaching for the items in the rack 68% felt that they had no problem in reaching for the items in the rack Page 70Visual Merchandising at Retail Stores MPBIM 2009 Page 71 10) Do you agree that items such as Chocolates.68 items in the rack Ye s No Figure 12 . and Soft Drinks should be close to entry and exit doors for casual customers? Respondents Agree 68 Visual Merchandising at Retail Stores MPBIM 2009 Somewhat Agree 28 Disagree 4 Table 10.

30 40 50 60 70 80 Agr ee Somewhat Agr ee Disagr ee Response Figure 13 INFERENCE From the above observations it is found that: Page 72 ¾ 68% Agreed that items such as Chocolates. Biscuits & Soft Drinks should be placed near entry and exit doors for casual customers Visual Merchandising at Retail Stores MPBIM 2009 Page 73 ¾ 28% Somewhat agreed that items such as Chocolates. Biscuits & Soft Drinks should be placed near entry and exit doors for casual customers ¾ 4% Disagreed that items such as Chocolates. Biscuits & Soft Drinks should be placed near entry and exit doors for casual customers 11) Do you agree that Window Display should be changed weekly or for every Fortnight to ensure fresh display? Visual Merchandising at Retail Stores MPBIM 2009 Respondents Agree 67 Somewhat Agree 33 .

opinion on window display INFERENCE Page 74 From the above observations it is found that: Visual Merchandising at Retail Stores MPBIM 2009 Page 75 ¾ 67% Agreed that Window Display should be changed every fortnight to ensure fresh display ¾ 33% Somewhat Agreed that Window Display should be changed every fortnight to ensure fresh display .opinion on whether window display should be changed weekly 67 33 0 0 10 20 30 40 50 60 70 80 Agree Somewhat Agree Disagree Window Display Response Figure 14 .Disagree 0 Table 11.

opinion on space between aisles 62 38 Aisles Yes No Figure 15 .opinion on space between the aisles Page 76Visual Merchandising at Retail Stores MPBIM 2009 Page 77 INFERENCE From the above observations it is found that: 62% felt that distance between the Aisles facilitated for easy movement for the shoppers 38% felt that distance between the Aisles did not facilitate for easy movement for the shoppers Visual Merchandising at Retail Stores MPBIM 2009 .¾ While None of them Disagreed that Window Display should be changed every fortnight to ensure fresh display Visual Merchandising at Retail Stores MPBIM 2009 12) Did the distance between the Aisles facilitate for easy movement of the Shoppers? Respondents Yes 62 No 38 Table 12.

opinion on seasonal & high margin merchandise Visual Merchandising at Retail Stores MPBIM 2009 Page 79 INFERENCE From the above observations it is found that: ¾ 58% respondents felt Seasonal & High Margin Merchandise were placed in high profile location ¾ 42% respondents felt Seasonal & High Margin Merchandise were not placed in high profile location Visual Merchandising at Retail Stores MPBIM 2009 Page 80 14) Overall. is the Store Appearance Professional? Respondents Yes 44 No 24 .13) Are Seasonal and High Margin Merchandise placed in high profile locations? Respondents Yes 58 No 42 Table 13 – opinion on seasonal & high margin merchandise locations 58 42 Seasonal & High Margin Merchandise Yes No Page 78 Figure 16 .

Somewhat 32 Table 14 – opinion on overall professionalism of the storeVisual Merchandising at Retail Stores MPBIM 2009 44 24 32 0 5 10 15 20 25 30 35 40 45 50 Ye s No So m e w h at Response Figure 17 .opinion on overall professionalism of the store INFERENCE From the above observations it is found that: 44% of the respondents felt that the overall Store Appearance was Professional 24% of the respondents felt that the overall Store Appearance was Not Professional 32% of the respondents felt that the overall Store Appearance was Somewhat Professional and needed some improvements .

5.04 Color & Lighting 8 66 22 4 278 287.6 11.6 0. and 7. 3.32 . H0: ALL THE FACTORS ARE EQUALLY IMPORTANT IN VISUAL MERCHANDISING HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN VISUAL MERCHANDISING Visual Merchandising at Retail Stores MPBIM 2009 FACTORS (ranking) E *4 G *3 A *2 P *1 OBSERVED EXPECTED (O-E)2 E Ambience 44 56 0 0 344 287.6 0. 6.Page 81Visual Merchandising at Retail Stores MPBIM 2009 Page 82 CHAPTER 13 ‐ Hypothesis Test i ng Hypothesis Conducted on Question no 2.06 Store Design & Display 14 63 23 0 291 287. 4.

Hypothesis Testing E: Excellent G: Good A: Average P: Poor Expected (E): E= OBSERVED / NO OF FACTORS E= 1438 / 5 E= 287.6 7.23 O=1438 Ψ2 cal=18.488 Therefore Ψ2 tabulated < Ψ2 .07 Fixtures & Hardware 4 36 58 2 242 287.Props & Decorative items 8 71 18 2 283 287.72 Table 15 .6 Ψ 2 calculated = 18.6 0.72 Page 83Visual Merchandising at Retail Stores MPBIM 2009 Page 84 Level of Significance: 5% Degrees of Freedom: (5-1) = 4 Ψ2 tabulated = 9.

calculated HO IS REJECTED There fore HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN VISUAL MERCHANDISING

CHAPTER 14 ‐ 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 clearly influences consumers purchasing decisions. Visual Merchandising at Retail Stores MPBIM 2009 Page 85 Proper planning must be done while designing the store since, a customer is highly 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 Retail Stores had no exact time frame. 2) Nearly half of the respondents believed that the overall store display at Retail Stores 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) Over 60% of the respondents felt that items such as chocolates, biscuits, soft drinks should be close to entry and exit doors for casual customers. 6) 67% of the respondents feel that window display should be changed

weekly or every fortnight. 7) Nearly 44% of the respondents feel that Retail Stores store is professional 8) Many respondents believed that Seasonal and High margin merchandise were placed in high profile location. 9) Some respondents felt that during peak hours the shelf were not replenished faster, resulting in longer waiting periods. 10) Promotions, props and Decorative items are huge attractions with regard to visual merchandising. Visual Merchandising at Retail Stores MPBIM 2009 Page 86 PART C ‐ RECOMMENDATIONS CHAPTER 15 ‐ Recommendations Based on the research and interaction with the customers, we make following specific recommendations: Visual Merchandising at Retail Stores MPBIM 2009 Page 87 1. Faster replenishment of shelf during peak hours must be taken care of. 2. Customers who visit Retail Stores 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 customer’s 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. Parking for especially 2 wheelers should be arranged. Since currently few parking spaces are available and no other arrangements are made. 7. Better training to service staff can result in overall increase in professionalism. 8. Window display needs to be changed once every fortnight in order to give a new look. 9. Fixtures at the store were rated as average. So decorative, creative fixtures should be used to create a good store image. 10. Retail Design Strategies: The success of the retail architect's design hinges on the work of the visual merchandisers. They are responsible for capturing the architect's vision of the store and implementing it through their choice of fashion, color, props, lighting and focal points. The creativity and hard work of the visual merchandisers are the linchpins of effective store design. We give below the design principles which must be adopted by Retail Stores: DESIGN PRINCIPLES ™ Unity ™ Harmony ™ Repetition Visual Merchandising at Retail Stores MPBIM 2009 Page 88 ™ Balance ™ Rhythm (movement) ™ Contrast ™ Emphasis ™ Surprise DESIGN ELEMENTS:

Example: yellow with violet plus greet with red 3. Double-complementary consists of four colors--two colors plus their complements. Example: yellow with yellow-green 6. Monochromatic consists of a single color in different values and intensities (more white or grey blended into the basic color). green and violet 5. Triadic consists of three colors that are equidistant from one another on the color wheel (They form a triangle when we look at the wheel) Example: orange. Split-complementary consists of three colors--one central color plus the two colors on either side of its component: Example: yellow with red-violet and blue-violet 4. Example: blue with medium blue and light blue 11. Analogous (color families) consists of two or more colors that are next to each other 9adjacent) on the color wheel.™ Color ™ Texture ™ Proportion ™ Direction ™ Size ™ Shape ™ Line ™ Sequence ™ Tension COLOR SCHEMES: 1. MAGIC OF THE WINDOW DISPLAY: Window display should synchronize . Complementary schemes consists of two colors that are directly opposite to each other on the color wheel--example yellow and violet 2.

It leads shopper from viewing to purchasing. a single item or a special store-wide event. low.with the visual merchandising. table linens that relate to the dinner theme. ™ Drive-by-windows are exterior windows viewed by people driving on city streets or passing through shopping mall parking lots ™ Live or Demo windows capture shoppers' attention. Holidays like Mother's Day and Valentine's Day provide opportunities to stage exciting window functions ™ Sale windows announce the store's major sale events and may not feature any merchandise at all--implying that the store is stripped down and ready to sell out to the bare walls at low. We give below the dynamics of window display which must be considered by Retail Stores. dinnerware. encouraging shoppers to create all of the ambience may might find in a restaurants in their own homes ™ Promotional windows feature products that are part of an advertising strategy promoting an entire line of products. Windows entice people into our world and into our mindsets. Retail theatre with a live actor draws curious crowds into the store ™ Interactive or through-glass windows. Visual Merchandising at Retail Stores MPBIM 2009 Page 89 Window Display Functions: ™ Fashion windows are about creating excitement and desire in shoppers who are always open to something new and different ™ Fashion apparel windows tout the store's fashion leadership position by presenting the store's newest trend merchandise ™ Home fashion windows may feature the latest dining trend. They may also feature candles. Electronic components invite passerby . low prices.

Merchandise looks more 'true to life' than it does in the window. Window's motif (dominant theme idea) is a good supporting device for visual merchandising. They echo the theme of the window display Visual Merchandising at Retail Stores MPBIM 2009 Page 90 but are now presented in the context of the store. comedies. romances. These are stepped-down presentations. This is fantasy stage ™ The retailer presents the window merchandise inside the store and less theatrically using editorial space in prime interior locations. Some times themes are set by the corporate advertisers . Shoppers have the chance to personally impact the merchandise ™ The window merchandise is ready for purchase. dramas. Fantasy-to-Reality Theory guides shoppers from their first look at merchandise in windows and editorial displays to the selling floor and into the fitting room in three steps: ™ The window's larger-than-life version of fashion-merchandise that is dropped or posed to amaze. This is reality stage.to interact with window displays by touching sensitive panels on the exterior glass which are connected to oversized screens set up in the window's interior. This is a breakthrough innovation for retailing Window display theory: Window theatrics may be retail fantasies. or adventure stores but they are always designed to engage imagination and make shoppers think about what it would be like to own the merchandise on display. amuse and enthuse--draws window shoppers into the store. Here is final reality where shoppers can finally handle the items they have admired or to try them on Window Display Themes (Retail Advertisement Message): Thematic inspiration for window displays is always the merchandise itself.

fabrication.1990) ™ New developments in props or decorative items available from the display industry---innovative items like metal shopping bags. Here some useful guidelines: .The theme inspiration can come from: ™ Products' end use. Visual Merchandising at Retail Stores MPBIM 2009 Page 91 It is not unlike how we get dressed each day. recurring on retrospective fashion designers. decorative or stylistic elements exclusively characteristic of the retailer's image or the store's design ™ Holidays: Mothers Day. We carefully coordinate the clothes you want to wear and the manner in which our style your hair or apply make-up. crystal clear up-scaled ice cubes. plays. Mechanics of window Display Magic: The window display is the first message we are sending to regular and potential customers. architecture. national or local happenings that involve or influence fashion ™ Influential cultural directions--fads. merchandising and lifestyle trends. current or upcoming events--global.1980. new books and magazines. ™ Historical perspectives---well-known symbols. art. Valentine Day ™ Nostalgia--(1970. The storefront window displays should be given the same level of importance. unusual looking mannequins and alternatives. recent films. entertainment etc. significant anniversaries of events ™ Retail image decisions---unique or 'signature' architectural. styles and color ™ Current directions in fashion design ™ Popular color parallels--market-driven color choices ™ Recent. Fathers Day. Therefore we must carefully plan he merchandise and how it is presented.

watch straps. . it is our strong belief and conviction that visual merchandising. kids cloths. Their purchase is not pre-planned and because these impulse purchase items are relatively cheaper they might buy them in a whim. To sum up. ™ Avoid too many floors. T-shirts etc ™ Select the color story: If T Shirts come in both bright and pastels. The following prerequisites of an effective visual merchandising are quite helpful: ™ Window display should be changed weekly or fortnightly to ensure freshness. ™ Impulse purchase items (perfumes. The display and layout should differentiate the store from competition. choose first one color group for the window ™ Select the theme ™ Select the props ™ Select mannequins ™ Select accessories ™ Sketch proposed window presentation. ™ Use symbols as directions: Distance between the aisles should facilitate the easy for movement shoppers. if appropriately implemented. Also when customers wait at the billing counter the people accompanying the buyer may snoop around and make a purchase too. will go a long way to entice the customers into the store. Colors and design should be characteristic of the brand image. as they mess up the items ™ Racks should not be too high especially in book stores because customers might not be able to reach the books ™ Lighting should not be poor and at the same time should not be very bright. gifts) should be close to the entry and exit doors for non-serious or causal customers would like to browse the whole store.™ Select the merchandise category--example.

Tesco and many more. Also it should not be unaesthetic. 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. The whole point of visual merchandising is to help the retailers to communicate brand message so that customers can make better-informed choices.Shadows are essential for that added effect Visual Merchandising at Retail Stores MPBIM 2009 Page 92 ™ The display should not be contrast to the section in which it is. or sand witch or chocolates CHAPTER 16 ‐ ConclusionVisual Merchandising at Retail Stores MPBIM 2009 Page 93 Visual merchandising when used effectively is no doubt. Retailers can attract more customers and increase sales by proper use of visual merchandising techniques. 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. Pearson Publication ™ Retailing in India. With new competitors entering into India Retail Sector such as Bharti WalMart. AnnexureVisual Merchandising at Retail Stores MPBIM 2009 Page 94 SELECT BIBLIOGRAPHY BOOKS: ™ Retail Management by Ron Hasty & James Reardon. a powerful tool to entice customers in making a purchase decision. ICFAI Publications. Consumers increasingly shop by what attracts their eye whether it is perfume. .

BIRLA INSTITUTE OF MANAGEMENT.com ™ www.com ™ www.wikipedia. Bangalore) Dear Respondent. Dale Zetocha – North Dakota University.pantaloon.™ Marketing Management by Philip Kotler (Chapter on Retailing) ™ Holly Bastow Shoop.comVisual Merchandising at Retail Stores MPBIM 2009 QUESTIONNAIRE VISUAL MERCHANDISING IN THE RETAIL SECTOR (A Case Study of Best Practices and Effective Strategies of Visual Merchandising at Retail Stores. I am a student of M.mbaindia. .mint.P.o. d.slideshare.org ™ www.ibef.com ™ www.com ™ www. Gregory Passewtiz.p – May 2001 JOURNALS & MAGZINES ™ Business Today ™ Marketing Mastermind ™ Journal of Marketing ™ Back numbers of A & M ™ International Journal of Management Sciences WEBSITES: Visual Merchandising at Retail Stores MPBIM 2009 Page 95 ™ www. Visual Merchandising for Retailers.com ™ www.com ™ www.acumen.timesofindia.

Below is the questionnaire crafted for this purpose. Good () () c. I need some information from you. Once in 3 days b. Bangalore). In this connection. Once in a week c. I am doing a survey for my research project entitled "VISUAL MERCHANDISING IN THE RETAIL SECTOR (A Case Study of Best Practices and Effective Strategies of Visual Merchandising at Retail Stores.000 50. I humbly assure you that the information so provided will be kept confidential and shall be used for academic purpose only Dilipa S Naik Name _______________________ Age ___________ Gender _______________ Income per annum: <50. No Time Frame ( ) 2) What is your opinion of the Store Display? a.Bangalore. Very Poor () () 3) How important is the ambience of the store while shopping? . Very Good b. Monthly () () () d. Poor e. Kindly give responses to the questions contained in the questionnaire. Satisfactory ( ) d.000-1L 1L-3L >3L Not Applicable Page 96Visual Merchandising at Retail Stores MPBIM 2009 Page 97 1) How often do you visit Retail Stores? a.

Very Important b. Excellent ( ) b. Not at all Important ( ) 4) How do you rate the store on basis of Store Design & Display? a. Excellent ( ) b. Average ( ) d. Not Important () () () d. Excellent ( ) b. Poor () 8) How Informative was the signs in the store? .a. Good () c. Average ( ) d. Good () c. Average ( ) Visual Merchandising at Retail Stores MPBIM 2009 Page 98 d. Poor () 5) How do you rate the store on basis of Colours & Lighting? a. Important c. Good () c. Good () c. Excellent ( ) b. Poor () 7) How do you rate the store on basis of Fixtures & Hardware? a. Average ( ) d. Poor () 6) How do you rate the store on basis of Props & Decorative items? a.

No ( ) 13) Are Seasonal and high margin merchandise placed in high profile locations? a. Agree () b. Not at all Informative ( ) Visual Merchandising at Retail Stores MPBIM 2009 Page 99 9) Did you face problem in reaching for items in the rack? a. Somewhat Agree ( ) c.a. Disagree () 12) Did the distance between the aisles facilitate for easy movement of the shoppers? a. Yes ( ) b. No ( ) c. Disagree () 11) Do you agree that window display should be changed weekly or for every fortnight to ensure fresh display? a. No ( ) 14) Overall. Yes ( ) b. Not Informative () () () d. Yes ( ) b. Yes ( ) b. Informative c. is the store appearance professional? a. Agree () b. soft drinks should be close to entry and exit doors for casual customers? a. Visual Merchandising at Retail Stores . biscuits. Very Informative b. Somewhat Agree ( ) c. No ( ) 10) Do you agree that items such as chocolates. Somewhat ( ) 15) Please give recommendation to improve Visual Merchandising at Retail Stores more appealing.

• Not expensive. The reasons why this instrument is chosen are:• It is free from all bias.MPBIM 2009 Page 100 EXPALANATION TO RESEARCH INSTRUMENT USED The research instrument used for this survey is questionnaire. • It covers a wide area. • It helps in getting original data. • It is easy to tabulate and understand • It can be collected through Email Visual Merchandising at Retail Stores MPBIM 2009 Page 101 Directions for further Research The following areas of research constitute 'green pastures' for further research: ™ Category Manage in Retailing Units: A Diagnostic Study ™ Creating a Shopping Experience in Retailing Units: A Phenomenographic INFERENCE ™ Business Intelligence and Retailing: An Analytical Study ™ Private Labels in Retailing Units: A Diagnostic Study ™ Dynamics of Supply Chain Management in Retail Industry: Diagnosis & Prognosis ™ Use of RFID Technology in Retailing Units: An Analytical Study ™ Category Killers in Retailing: A Diagnostic Study ™ Super Franchising in Retailing: An Analytical Study .

™ Non-Store Retailing: Contemporary Issues ™ Retail Store Graphics: An Explorative Study ™ Micro-analysis of Visual Merchandising Variables ™ Magic of Window Display and its interface with Visual Merchandising Visual Merchandising at Retail Stores MPBIM 2009 Page 102 ™ Customers' Perceptions/Insights of Visual Merchandising ™ Impact of Visual Merchandising on transforming the shoppers into buyers ™ Impact of Visual Merchandising on transforming the online buyers into offline Buyers .

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