Project Report: Submitted By: SURENDHAR.D, II Yr. MBA, Rai Business School Chennai

STUDY ON IMPACT
OF VISUAL
MERCHANDSING IN
RETAIL MARKETING
[PROJECT REPORT]
Submitted by: SURENDHAR.D, II yr. MBA, Rai Business school hennai.
S!UD" #N IM$A! #% &ISUA'
MERHANDISIN( IN RE!AI' MA)E!IN(
$RA!IED A!
BI( BA*AAR
+$AR! #% %U!URE RE!AI' (R#U$,
$#ND" BA*AAR,
HENNAI
SUBMI!!ED B"
SURENDHAR DHANDA$ANI
II yr., MBA
#%
RAI BUSINESS SH##',
!E"NAM$E!, HENNAI.
A $R#-E! RE$#R! SUBMI!!ED !# !HE
%AU'!" #% BUSINESS ADMINIS!RA!I#N
In partial fulfillment of the requirements of the program
For the award of the internal marks.
S.ace /or Bona/ide
certi/icate
DECLARATION
I D. Surendhr! a student of MBA, Rai Business School, Teynampet, Chennai. hereby, declare
that the project wor titled "A STUDY ON IMPACT OF VISUAL MERCHANDISING #ITH
REFERENCE T$ %IG %A&AAR'! Submitted to the Rai Business School in partial fulfillment of
the re!uirement for the award of the de"ree of Master of Business Administration is a record of
Bonafide research carried out by me under the "uidance of Mr(. V)n)*h Pr(d! Sen)$r
Le+*urer, Rai Business School and no part of it has been submitted for any other de"ree or
diploma.

D.SURENDHAR
P,+e- C#$%%AI
D*e-
STUDY ON IMPACT OF VISUAL MERCHANDISING
ACKNO#LEDGEMENT
An endea&or o&er a lon" period can be successful only with the ad&ice
and support of many well ' wishers. I tae this opportunity to e(press my
"ratitude and appreciation to all of them.
)irstly I than the Almi"hty who has been with me from the be"innin" of
this project. Secondly, I would lie to than all my faculties at RAI business
school for their encoura"ement and arousin" the mana"ement sill in me to
certain le&el which opened up an opportunity for internship which of course
part of my course.
I would also lie to than *rof. +enatesan, #ead, Academics and Mr.
Ilan"o Mana"er *lacement di&ision of Rai Business School, Chennai, for
pro&idin" me full support to complete my internship.
I would also lie to than Mrs. +inita, my project mentor at the Rai business
school, Chennai who "uided me in the successful completion of the project.
I am deeply indebted to e(press my heartfelt thans to Mr.
S#$%BA,ARA-A%, Senior $(ecuti&e .#R/, )uture +alue Retail 0td,
Chennai for "i&in" me permission to do the project in the or"ani1ation and
his support and "uidance to complete this project.
My family and friends also supported me with the study and encoura"ed
me a lot and I am thanful for it.
2.S3R$%2#AR
II yr. MBA
Acknowledgement P!ge 1
A%STRACT
This 4 days of mini project was or"ani1ed by the colle"e and put the
students directly to the fields of maret is mainly aimed for e&aluatin" the
nowled"e of the student and to "i&e him a chance to self'e&aluate himself
and to impro&e him in the areas needed. Also "i&es the chance to test
practically with concepts learned by the student from boos. Also pro&ides
opportunity for the student to understand the industry in which they are
"oin" to wor after their "raduation.
This project report has "ot two sections.
The first section deals with the o&erall &iew of Indian retail industry and the
company profile for future "roup alon" with their &ision 5 mission statement
The second section has the details about study on the impact of &isual
merchandisin" in influencin" the consumer6s buyin" beha&ior.
...../////
PRO"ECT REPORT P!ge 7
CONTENTS
CHAPTER
NO
PARTICULARS PAGE NO
SECTION 0 I 84
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SECTION 2 II
STATEMENT OF O%JECTIVES
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RESEARCH METDOLOGY 7B
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PRO"ECT REPORT P!ge >
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7 BIB0I:,RA*#< >>
PRO"ECT REPORT P!ge B
SECTION # I
In*r$du+*)$n
I chose BI, BADAAR at *ondy ba1aar in Chennai to do my project under
the topic "A STUDY ON IMPACT OF VISUAL MERCHANDISING! a unit of
)3T3R$ ,R:3* is one of the most well'nown Retail firms in India. I
found Retail business appropriate for the topic as this is the only business
which "i&es importance for &isual merchandisin" and future "roup is one
such firm a leadin" player in the industry and also encoura"es students lie
me to conduct this this ind of studies in their outlets and pro&idin" proper
support and assistance
PRO"ECT REPORT P!ge ;
Need nd )89$r*n+e $: ;)(u, 8er+hnd)()n<
+isual merchandisin" today forms a critical element of retailin". Besides
the facade and windows, which are clearly done up with an objecti&e to
attract passer'bys and induce wal'ins, there is also in'store decor that is
desi"ned to enhance the customer6s comfort and con&enience while
shoppin" and o&erall, offer a superior shoppin" e(perience.
Consumer beha&ior studies ha&e confirmed that the lure of a beautifully
done up show window and a tastefully decorated facade, more often than
not, pro&e irresistible as they wal in to chec out what is on offer. It also
ensures e(clusi&ity since no two stores should loo alie. Besides, when
the mood and theme of such displays chan"e at re"ular inter&als, it maes
certain that the store remains top of mind. 0oyal customers ha&e often
been nown to an(iously wait for the ne(t display. FSticiness6 in retail
formats is also ensured by the ima"inati&e use of colors, li"htin", space,
furniture and &isual elements with re"ard to in'store displays.
:nce customers wal in, it is but imperati&e to ensure that they enjoy their
first encounter with the store. After all, repeat &isits will only happen if a
customer6s first &isit is a memorable one. The lo"ical arran"ement of
counters, with clear passa"eways allows for easy access to merchandise.
Rather than "ettin" lost in the bi" space that most lar"e stores are, the
customer feels more in control. Space is allocated to &arious product
cate"ories tain" into account the number of SG3s stoced and
shel&esHcounter space re!uirements are wored out accordin"ly.
PRO"ECT REPORT P!ge =
Clear passa"es are pro&ided for products, which re!uire touch and feel. All
impulse purchase dri&en products are also clearly displayed so that the
customers can reach them without any hindrance. Also, it has been
obser&ed that when a person enters a room, the human eye mo&es in a D
pattern, i.e. from rear left of the room to ri"ht rear, followed by front left of
the room to front ri"ht. Care should be taen to do up the rear left end of
the room in an appealin" manner so as to "uide the direction of &ision and
eep a shopper &isually interested.
A "reat deal of research has been undertaen on the impact of li"htin" on a
customer6s purchase beha&ior. Results clearly indicate that in "eneral,
stores that are bri"htly lit, with the li"hts cle&erly blendin" with the interiors
lead to hi"her customer comfort, and as such, more sales.
INDIAN RETAIL INDUSTRY 0 AN OVERVIE#
PRO"ECT REPORT P!ge C
India retail industry is the lar"est industry in India, with an employment of
around CI and contributin" to o&er 98I of the countryJs ,2*. Retail
industry in India is e(pected to rise 74I yearly bein" dri&en by stron"
income "rowth, chan"in" lifestyles, and fa&orable demo"raphic patterns.
The BMI India Retail Report for the third'!uarter of 7898, forecasts that the
total retail sales will "row from 3SK >4> billion in 7898 to 3SK 4B>.7 billion
by 789B. @ith the e(pandin" middle and upper class consumer base, there
will also be opportunities in IndiaJs tier II and III cities. The "reater
a&ailability of personal credit and a "rowin" &ehicle population to impro&e
mobility also contribute to a trend towards annual retail sales "rowth of 99.B
per cent. Mass "rocery retail .M,R/ sales in India are forecast to under"o
enormous "rowth o&er the forecast period. BMI further predicts that sales
throu"h M,R outlets will increase by 94B per cent to reach 3SK 94.7A
billion by 789B. This is a conse!uence of IndiaJs dramatic, rapid shift from
small independent retailers to lar"e, modern outlets.
BMI forecasts consumer electronic sales at 3SK 7A.C; billion in 7898, with
o&er the counter .:TC/ pharmaceutical sales at 3SK >.7C billion. The latter
is predicted to be the fastest "rowin" retail sub'sector and BMI forecasts
that sales will reach 3SK ;.9C billion by 789B, an increase of CC.4 per cent.
Moreo&er, for the Bth time in fi&e years, India has been raned as the most
attracti&e nation for retail in&estment amon" >8 emer"in" marets by the
3S'based "lobal mana"ement consultin" firm, A T Gearney in its Cth
annual ,lobal Retail 2e&elopment Inde( .,R2I/ 788A. India remains
amon" the leaders in the 7898 ,R2I and presents major retail
opportunities. IndiaJs retail maret is e(pected to be worth about 3SK B98
billion, with 4 per cent of sales throu"h or"ani1ed retail, meanin" that the
opportunity in India remains immense. Retail should continue to "row
rapidlyLup to 3SK 4>4 billion in 789>, with 98 per cent comin" from
or"ani1ed retail, reflectin" a fast'"rowin" middle class, demandin" hi"her
!uality shoppin" en&ironments and stron"er brands, the report added.
Bharti Retail stren"thened its position in northern India by openin" 4A
stores, Bharti @al'Mart is e(pected to open 98 to 94 wholesale locations in
the ne(t three years, and Mars 5 Spencer is considerin" plans to open
additional outlets in the ne(t few years.
PRO"ECT REPORT P!ge A
$stablished retailers are tappin" into the "rowin" retail maret by
introducin" inno&ati&e store formats. SpencerJs Retail, More .owned by
Aditya Birla ,roup/ and Shoppers Stop .owned by G Raheja ,roup/
already plan to e(pand.
Accordin" to a McGinsey 5 Company report titled JThe ,reat Indian
Ba1aarM :r"ani1ed Retail Comes of A"e in IndiaJ, or"ani1ed retail in India is
e(pected to increase from 4 per cent of the total maret in 788C to 9B ' 9C
per cent of the total retail maret and reach 3SK B48 billion by 7894.
)urthermore, accordin" to a report titled JIndia :r"ani1ed Retail Maret
7898J, published by Gni"ht )ran India in May 7898 durin" 7898'97, around
44 million s!uare feet .s!. ft./ of retail space will be ready in Mumbai,
national capital re"ion .%CR/, Ben"aluru, Golata, Chennai, #yderabad
and *une. Besides, between 7898 and 7897, the or"ani1ed retail real
estate stoc will "row from the e(istin" B9 million s!. ft. to A4 million s!. ft.
India continues to be amon" the most attracti&e countries for "lobal
retailers. )orei"n direct in&estment .)2I/ inflows between April 7888 and
April 7898, in sin"le'brand retail tradin", stood at 3SK 9AB.;A million,
accordin" to the 2epartment of Industrial *olicy and *romotion .2I**/.
0eadin" watchmaer Titan Industries 0imited plans to in&est about 3SK
79.C> million for openin" 48 premiums watch outlets #elios in ne(t fi&e
years to attain a sales tar"et of 3SK C=.>9 million. N@e are looin" to open
#elios outlets in Mumbai, 2elhi, #yderabad, Golata, Chennai, *une,
Ahmedabad etc. in ne(t 97 months,N said Ajoy Chawla, +ice *resident
.Retail/, Titan.
British hi"h street retailer, Mars and Spencer .M5S/ plans to si"nificantly
increase its retail presence in India, tar"etin" 48 stores in the ne(t three
years. M5S currently operates 9= stores in India throu"h a joint &enture
.-+/ with Reliance Retail.
Bharti Retail, owner of $asy 2ay storeLsupermarets and hyper martsL
plans to in&est about 3SK 7.4 billion o&er the ne(t fi&e years to add about
98 million s!. ft. of retail space in the country by then, accordin" to a
company spoesperson.
SourceM httpMHHwww.ibef.or"HindustryHretail.asp(
COMPANY PROFILE
FUTURE GROUP
The field of study was conducted at Bi" ba1aar a unit of *antaloons Retail
.India/ 0imited. *antaloon Retail .India/ 0imited, is India6s leadin" retailer
that operates multiple retail formats in both the &alue and lifestyle se"ment
of the Indian consumer maret. #ead!uartered in Mumbai .Bombay/, the
company operates o&er 97 million s!uare feet of retail space, has o&er
9888 stores across =9 cities in India and employs o&er >8,888 people.
The company6s leadin" formats include *antaloons, a chain of fashion
outlets, Bi" Ba1aar, a uni!uely Indian hypermaret chain, )ood Ba1aar, a
supermaret chain, blends the loo, touch and feel of Indian ba1aars with
aspects of modern retail lie choice, con&enience and !uality and Central,
a chain of seamless destination malls. Some of its other formats include
Brand )actory, Blue Sy, all, Top 98 and Star and Sitara. The company
also operates an online portal, futureba1aar.com.
A subsidiary company, #ome Solutions Retail .India/ 0imited, operates
#ome Town, a lar"e'format home solutions store, Collection i, sellin" home
furniture products and eDone focused on caterin" to the consumer
electronics se"ment. *antaloon Retail was recently awarded the
International Retailer of the <ear 788= by the 3S'based %ational Retail
)ederation .%R)/ and the $mer"in" Maret Retailer of the <ear 788= at
the @orld Retail Con"ress held in Barcelona.
*antaloon Retail is the fla"ship company of )uture ,roup, a business
"roup caterin" to the entire Indian consumption space.
Fu*ure Gr$u9
)uture ,roup, led by its founder and ,roup C$:, Mr. Gishore Biyani, is
one of India6s leadin" business houses with multiple businesses spannin"
across the consumption space. @hile retail forms the core business acti&ity
of )uture ,roup, "roup subsidiaries are present in consumer finance,
capital, insurance, leisure and entertainment, brand de&elopment, retail real
estate de&elopment, retail media and lo"istics led by its fla"ship enterprise,
*antaloon Retail, the "roup operates o&er 97 million s!uare feet of retail
space in =9 cities and towns and ;4 rural locations across India.
#ead!uartered in Mumbai .Bombay/, *antaloon Retail employs around
>8,888 people and is listed on the Indian stoc e(chan"es. The company
follows a multi'format retail strate"y that captures almost the entire
consumption baset of Indian customers. In the lifestyle se"ment, the
"roup operates *antaloons, a fashion retail chain and Central, a chain of
seamless malls. In the &alue se"ment, its mar!uee brand, Bi" Ba1aar is a
hypermaret format that combines the loo, touch and feel of Indian
ba1aars with the choice and con&enience of modern retail.
In 788C, Bi" Ba1aar opened its 988th store, marin" the fastest e&er
or"anic e(pansion of a hypermaret. The first set of Bi" Ba1aar stores
opened in 7889 in Golata, #yderabad and Ban"alore.
The "roup6s specialty retail formats include, boos and music chain, 2epot,
sportswear retailer, *lanet Sports, electronics retailer, $1one, home
impro&ement chain, #ome Town and rural retail chain, Aadhar, amon"
others. It also operates popular shoppin" portal, futureba1aar.com. )uture
Capital #oldin"s, the "roup6s financial arm pro&ides in&estment ad&isory to
assets worth o&er K9 billion that are bein" in&ested in consumer brands
and companies, real estate, hotels and lo"istics. It also operates a
consumer finance arm with branches in 948 locations. :ther "roup
companies include, )uture ,eneral, the "roup6s insurance &enture in
partnership with Italy6s ,eneral ,roup, )uture Brands, a brand
de&elopment and I*R company, )uture 0o"istics, pro&idin" lo"istics and
distribution solutions to "roup companies and business partners and )uture
Media, a retail media initiati&e.
The "roup6s presence in 0eisure 5 $ntertainment se"ment is led throu"h,
Mumbai'based listed company ,ala(y $ntertainment 0imited. ,ala(y
leadin" leisure chains, Sports Bar and Bowlin" Co. and family
entertainment centres, )97>. Throu"h its partner company, Blue )oods the
"roup operates around 988 restaurants and food courts throu"h brands lie
Bombay Blues, Spa"hetti Gitchen, %oodle Bar, The Spoon, Copper
Chimney and ,elato.
)uture ,roup6s joint &enture partners include, 3S'based stationery
products retailer, Staples and Middle $ast'based A(iom Communications.
The "roup6s fla"ship company, *antaloon Retail was awarded the
International Retailer of the <ear 788=, by the 3S'based %ational Retail
)ederation, the lar"est retail trade association and the $mer"in" Maret
Retailer of the <ear 788= at the @orld Retail Con"ress in Barcelona.
)uture ,roup belie&es in de&elopin" stron" insi"hts on Indian consumers
and buildin" businesses based on Indian ideas, as espoused in the "roup6s
core &alue of FIndianness.6 The "roup6s corporate credo is, FRewrite rules,
Retain &alues.6
V)()$n
)uture ,roup shall deli&er $&erythin", $&erywhere, $&ery time for $&ery
Indian Consumer in the most profitable manner.
M)(()$n
They share the &ision and belief that our customers and staeholders shall
be ser&ed only by creatin" and e(ecutin" future scenarios in the
consumption space leadin" to economic de&elopment.
They will be the trendsetters in e&ol&in" deli&ery formats, creatin" retail
realty, main" consumption affordable for all customer se"ments ? for
classes and for masses.
They shall infuse Indian brands with confidence and renewed ambition.
They shall be efficient, cost' conscious and committed to !uality in
whate&er we do.
They shall ensure that our positi&e attitude, sincerity, humility and united
determination shall be the dri&in" force to mae us successful.
PRO"ECT REPORT P!ge 9>
C$re ;,ue(
IndiannessM confidence in oursel&es.
0eadershipM to be a leader, both in thou"ht and business.
Respect 5 #umilityM to respect e&ery indi&idual and be humble in our
conduct.
IntrospectionM leadin" to purposeful thinin".
:pennessM to be open and recepti&e to new ideas, nowled"e and
information.
+aluin" and %urturin" RelationshipsM to build lon" term relationships.
Simplicity 5 *ositi&ityM Simplicity and positi&ity in our thou"ht, business and
action.
AdaptabilityM to be fle(ible and adaptable, to meet challen"es.
)lowM to respect and understand the uni&ersal laws of nature.
M=$r M),e(*$ne(
7889' Three Bi" Ba1aar stores launched within a span of 77 days in
Golata, Ban"alore and #yderabad.
7887' )ood Ba1aar, the supermaret chain is launched.
788B' Central ' India6s first seamless mall is launched in Ban"alore.
7884' ,roup mo&es beyond retail, ac!uires staes in ,ala(y
$ntertainment, Indus 0ea"ue Clothin" and *lanet Retail. Sets up India6s
first real estate in&estment fund Gshitij to build a chain of shoppin" malls.
788;' )uture Capital #oldin"s, the company6s financial is formed to
mana"e o&er K9.4 billion in real estate, pri&ate e!uity and retail
infrastructure funds. *lans forays into retailin" of consumer finance
products.
PRO"ECT REPORT P!ge 9B
#ome Town, a home buildin" and impro&ement products retail chain is
launched alon" with consumer durables format, $1one and furniture chain,
)urniture Ba1aar. )uture ,roup enters into joint &enture a"reements to
launch insurance products with Italian insurance major, ,eneral )orms joint
&entures with 3S office stationery retailer, Staples.
788=' )uture ,roup crosses K9 billion turno&er mar. Speciali1ed
companies in retail media, lo"istics, I*R and brand de&elopment and retail'
led technolo"y ser&ices become operational.
788C' )uture Capital #oldin"s becomes the second "roup company to
mae a successful Initial *ublic :fferin" in the Indian capital marets. Bi"
Ba1aar crosses the 988'store mar, marin" one of the fastest e&er
e(pansion of a hypermaret format anywhere in the world. Total
operational retail space crosses 98 million s!uare feet mar. )uture ,roup
ac!uires rural retail chain, Aadhar present in ;4 rural locations.
%IG %A&AAR
Bi" ba1aar, *ondy Ba1aar was the second store to mae an impact in the
minds of the customer. It was opened in the month of -une, 788C. Situated
in the midst of an IT hub, it welcomes customers with e(citin" offers and
discounts. *ondy ba1aar is amon" the few areas in Chennai that is full of
acti&ities with shoppin" malls, eat out joints, restaurants etc. This also
brin"s a lot of competition for the store. Measures are taen to retain the
customers by trainin" the employees to be polite and &i"ilant.
The &arious departments in the store are as followsM
O )ood ba1aar department
O Cash department
O *lastics, 3tensils and Crocery
O Appliances
O )ootwear
O %ew Business 2e&elopments
O 2epot
O #ome 0inen
O )urniture
O Apparels
O +isual merchandise
O #uman Resource
O Administration
O @are house H 0o"istics
O Maintenance
O Customer Ser&ice 2epartment
...../////
PRO"ECT REPORT P!ge 9;
SECTION # II
PRO"ECT REPORT P!ge 9=
STATEMENT OF O%JECTIVES
PRIMARY O%JECTIVES OF THE STUDY
A study on impact of merchandisin" products on the consumers6 buyin"
choice with reference to bi" ba1aar
To identify the impact made by the modern promotional techni!ues
.si"na"e6, posters etc.,/ alon" with the traditional &isual
merchandisin" strate"ies .0i"htin" , desi"n layout preference,
product display and cleanliness/ in consumers6 buyin" decision.
SECONDARY O%JECTIVES OF THE STUDY
Thou"h the primary objecti&e of the study is to study the impact of &isual
merchandisin" in relation to consumer buyin" decision the secondary
objecti&e of the study is to ac!uire the nowled"e on o&er all function of
Indian retail industry and its operations by obser&in" a retail outlet ? BI,
BADAAR, *ondy Ba1aar Branch, Chennai.
PRO"ECT REPORT P!ge 9C
LITERATURE REVIE#
VISUAL MERCHANDISING 0 AN OVER VIE#
V)(u, 8er+hnd)()n< is the activity of promoting the sale of goods,
especially by their presentation in retail outlets. This includes combinin"
products, en&ironments, and spaces into a stimulatin" and en"a"in"
display to encoura"e the sale of a product or ser&ice. It has become such
an important element in retailin" that a team effort in&ol&in" the senior
mana"ement, architects, merchandisin" mana"ers, buyers, the &isual
merchandisin" director, desi"ners, and staff is needed.
Many elements can be used by &isual merchandisers in creatin" displays,
includin" color, li"htin", space, product information, sensory inputs such as
smell, touch, and sound as well as technolo"ies such as di"ital displays
and interacti&e installations.
Pur9$(e
Retail professionals display to mae the shoppin" e(perience more
comfortable, con&enient and customer friendly byM
Main" it easier for the shopper to locate the desired cate"ory of
products and merchandise.
Main" it easier for the shopper to handpic the products.
Main" it possible for the shopper to co'ordinate 5 accessori1e.
Informin" about the latest fashion trends by hi"hli"htin" them at the
strate"ic locations.
VM he,9( )n-
$ducatin" the customers about the productHser&ice in an effecti&e
and creati&e manner.
$stablishin" a creati&e medium to present merchandise in >2
en&ironment, thereby enablin" lon" lastin" impact and recall &alue.
Settin" the company apart in an e(clusi&e position.
PRO"ECT REPORT P!ge 9A
$stablishin" lina"e between fashions, product desi"n and maretin"
by eepin" the product in prime focus.
Combinin" the creati&e, technical and operational aspects of a
product and the business.
2rawin" the attention of the customer to enable him to tae purchase
decision within shortest possible time, and thus au"mentin" the
sellin" process.
VISUAL MERCHANDISING STRATEGIES FOLLO#ED AT %IG %A&AAR
A *lano"ram allows plannin" of the arran"ement of merchandise on a
"i&en fi(ture confi"uration to support sales throu"h proper placement of
merchandise by Style, :ption, Si1e, *rice points, etc. It also enables a
chain of stores to ha&e the same merchandise displayed in a coherent and
similar manner across the chain.
At bi" ba1aar they used the proper combination of each of these elements
to support ease of applicability to the consumer and also increasin"
selection 5 enhancin" the merchandise display in a neat and or"ani1ed
manner.
GIVING MERCHANDISE THE FOCAL POINT
At bi" ba1aar they showcased the major fast mo&in" products within the
o&erall display area in a way that no prospecti&e consumer will miss a
product that they were looin" for. And in the entry sta"e itself they
displayed a proper map of the shop statin" the brief description of products
a&ailable in each floor alon" with information for rest room and customer
des areas. This helps in educatin" the consumer about the detailed
products and sa&es their time from unwanted en!uiries also helps them to
en"a"e more on their shoppin" acti&ity
USING THE RIGHT CHOICE OF COLORS
Color is one of the most powerful tools in the +isual Merchandisin"
se"ment. It is a &isual perceptual property. Colors can be associated with
emotions, special occasions and "ender. It attracts attention and pulls more
customers into the store. At bi" ba1aar they utili1ed the major ad&anta"e of
this factor and used it in the entire store for the arran"ement of products.
2urin" my project period I was put up in food ba1aar. There I noticed that in
all the shel&es they arran"ed the pacs based on color of the pacs so that
they formed color "radients "i&in" emphasi1e to stron" color pacs and
sli"htly saturatin" to the li"hter shade pacs. This helps in "rabbin" the
attention of the customer and holdin" it for minimum of 4'98 seconds and
also helps them for effecti&e scannin" between the products across the
shel&es without strainin" the eyes much.
DISPLAYTHEMES TO APPROPRIATELY SUPPORT THE PRODUCT-
I did this project at Bi" Ba1aar durin" their bi" day sales or Mahabachat
which will happen e&ery year durin" republic day and Independence 2ay.
The sale lasts for 4 days. )or these 4 days they decorated the store with
themed displays of offers a&ailable durin" these Mahabachat sales
throu"hout the store and windows. It sets the conte(t in an aesthetically
pleasin" fashion, presentin" them in a way that would con&ert the window
shoppers into prospects and ultimately buyers of the product.
CLEANLINESS-
%eat and clean arran"ement is the foundation of an in&itin" a successful
&isual display. A beautiful display can be ruined by a craced si"n holder or
an unclean display en&ironment. In bi" ba1aar I noticed that they too
enormous effort in cleanin" the floor and followed an effecti&e cleanin"
schedule of showcases and display fi(tures.
...../////
CONCEPTUALI&ATION
In conceptuali1in" the study, I ha&e attempted to build relationship between
ey &ariables i.e., &isual merchandisin" .independent &ariable/ and buyin"
beha&ior .dependent &ariable/. Accordin" to the literature re&iew, I came to
now that li"htin", desi"n layout, product display and cleanliness are the
main &ariables of &isual merchandi1in". It is also necessary to e(amine the
relationship between two ey &ariables and other &ariables influenced on
dependent &ariable. This would enable me to interpret the findin"s in a
more comprehensi&e manner. The conceptual model that has been
de&eloped indicatin" their relationship is "i&en below
C$n+e9*u, M$de,
C$ur*e(>- +isual merchandisin" and consumer decision process for
intimate apparel by 2erry 0aw and -oanne yip ? institute of te(tile and
clothin",
the #on" Gon" polytechnic uni&ersity ? #on" Gon".
PRO"ECT REPORT P!ge 7>
0i"htin"
2esi"n
0ayout
*roduct
2isplay
Cleanliness
+isual
Merchandi1in"
Buyin"
decision
Beha&ior
RESEARCH METHODOLOGY
DATA COLLECTION
The nature of research desi"n chosen by me is almost a descripti&e one.
So, as far as possible attempt was made to "ather primary data. In that
conte(t, a detailed obser&ation criterion was administrated, facilitatin" the
obser&ations process. The primary research was carried out in BI,
BADAAR ? T'%a"ar branch, Chennai. And information was collected from
customers who were purchasin" products from the supermaret at the time
of the study. Additionally, secondary data for conceptuali1ation and
operationali1ation of the matters and other purposes were also utili1ed
throu"h te(tboos and web sites etc.
2ata were collected throu"h obser&ations from 9888 consumers from four
different a"e "roups i.e. 78'>8, >8'B8, B8'48, 48';8 who waled in to the
store at the time of study. There were no any rejected forms due to field
in&esti"ation and personally filled criterion forms with obser&ation. Most of
the data pertainin" to this study ha&e been collected from customer sample
drawn from randomly.
DATA ANALYSIS PROCEDURE
2escripti&e method was used in presentin" and analy1in" the data.
2escripti&e tools such as fre!uency counts and percenta"es calculated for
the statements on the criterion form in order to determine the impact of in
store promotions on buyin" decisions.
LIMITATIONS OF THE STUDY-
Apart from &isual merchandisin" there is the influence of other mediums
lie tele&ision, newspaper and radio used for communicatin" the
mahabachat sale at BI, BADAAR ? this has "ot the stron" influence in
buyin" decision.
Since i chose the busy retail out let lie BI, BADAAR and that too durin"
the period of bi" day sales its bit tou"h for me to do the obser&ations in a
detailed manner.
PRO"ECT REPORT P!ge 7B
#ow stron" a mareterH promoter is tryin" to promote the product if it is not
needed for the customer then the customer won6t be a prospecti&e
customer for that mareter
METHOD ADOPTED FOR THE E?PERIMENT
At bi" ba1aar durin" the Mahabachat sale our aim was to sell the
ma(imum combi pacs of pro&isions.
The followin" were the combi pacs bundle they madeM
Rs.BBB ? 4 "s of su"ar, rice and "olden har&est atta
Rs.444 ? 4 "s of pills burry atta, tilda lon" "rain rice and 4 liters
,emini refined sunflower oil
Rs.4=4 ? 4 "s of su"ar, tilde lon" "rain rice and 4 liters fortune
refined sunflower oil
Rs.4CA ? 4 "s of su"ar, aashir&ad atta and 4 liters "old winner
refined sunflower oil
Rs.;74 ? 4 "s of hello royal basmati rice, pills burry atta and 4 liters
"old winner refined sunflower oil
Rs.;BA ? 4 "s of aashi&ad atta, daawat de&ya basmati rice and 4
liters "old winner refined sunflower oil.
)or the first > days we didn6t adopt any systems for the promotion, we
sold a&era"e of 788 combi pacs.
)or the fourth and fifth day we were "i&en tar"ets for the sale of combi
pacs. So my team leader decided to add up e(tra &isual merchandise
to mae the customer a&ailable of those pacs. So we decided two
place one close to the customer ba" 1one there we displayed all the
combi pacs in a decorated table alon" with the si"na"e displayin" the
offers in an attracti&e way and the second place was !uite close to
customer ser&ice des the entry for the customers to the shop we
adopted the same method as earlier.
I6&e enclosed the details for one hour of the study as it was &ery tou"h to
record the actual data for o&er a period of time. But the end result was
we achie&ed the tar"ets for all these days. )or the fourth day we were
"i&en tar"et of >88 combi pacs and we sold around >78 pacs and for
the closin" day we "ot the tar"et of B88 and sold close to BB= pacs.
:&er all the method wored &ery well and played a &ital role in achie&in"
the tar"ets.
DATA INTERPRETATION
I89+* $: ;)(u, 8er+hnd)()n< $n +$n(u8er @u>)n< @eh;)$r +r$((
*he <e <r$u9(
AGE GROUP 3A24A 4A25A 5A26A 6A27A IMPACT OF
VM
FREBUENCY 9;C 4AA 9>4 AC 9888
PERCENTAGE 9;.C 4A.A 9>.4 A.C 988
PRO"ECT REPORT P!ge 7;
F+*$r( )n;$,;ed )n V)(u, Mer+hnd()n< 0 @(ed $n *)8e (9en*
FACTOR
TIME SPENT
TOTAL PERCENTAGE
A26 (e+ A621A (e+ 1A216
(e+
SIGNAGES >9 44 98C 9AB 9A.B
POSTER 9=B B= CB >84 >8.4
THEMED PRODUCT
DISPLAYS
749 48 98 >98 >9
INSHOP PROMOTIONS 94 4; 978 9A9 9A.9
Grnd T$*, 1AAA 1AA
PRO"ECT REPORT P!ge 7=
VISUAL MERCHANDI&ING AND CONSUMERCS %UYING %EHAVIOR.
This study focused on the &isual merchandi1in" and consumer buyin"
decisions. The main objecti&e of this study was to e(amine the influence
emer"ed from &isual merchandi1in" and the usa"e of new medias into the
+M such as posta"es, si"na"e6s themed displays for influencin"
consumer6s buyin" decisions. The findin" shows that influence emer"ed
from &isual merchandisin" on consumer6s buyin" decisions is stron". )rom
this it is clearly shown that hi"hest mean &alue of &isual merchandisin" is
4A.A from the a"e "roup of >8 'B8 shows that people belon"in" to this
"roup is hi"hly attracted towards +M. It was represented in stron"ly
influenced score cate"ory.
#owe&er, &isual merchandisin" consists of four &ariables such as li"htin",
desi"n layout, product display and cleanliness, all of those &ariables, ha&e
considerable influence in selectin" specific supermaret outlet. The usa"e
of new mediums in a uni!ue way has a stron" influence in buyin" decision.
The majority of respondents .>9 5 >8.4/ mentioned that posters and
product displays majority themed displays in supermarets outlets stron"ly
influence on their buyin" decisions. In the same time, >8I of respondents
ha&e indicated that product display stron"ly influence on their buyin"
decisions. Moreo&er, the fre!uency of product display is >98. It is more
close to the hi"her le&el of stron"ly influenced score cate"ory. The findin"s
show that >8I of respondents ha&e indicated that posters are stron"ly
influencin" their store buyin" beha&ior. The smallest &alue e!ual to 9A that
represents the moderately influenced score cate"ory. Most of the
customers mentioned that in'shop promotions are one of the most
important factors of attracti&e in'store en&ironment of supermaret outlets.
Accordin" to the findin"s, 9A9 respondents ha&e indicated in'shop
promotions will affect in a stron" and moderate way respecti&ely on their
PRO"ECT REPORT P!ge 7C
buyin" decisions. Thou"h si"na"e has low impact actually it helps in
"ainin" the passer'by attraction and from results it is also clearly shows
that in'shop promotions and product displays holds the consumers for a
lon" time results to the buyin" decision. Therefore, the !uantitati&e fi"ures
show that &isual merchandisin" has si"nificant impact in buyin" decisions
In addition to the in'store &ariables, most of consumers consider price
of "oods, location, and customer ser&ice and parin" facilities etc. @hen
customers are ranin" the relati&e importance of factors affectin" to the
buyin" decisions, most of customers ha&e "i&en first and second priority to
&isual merchandisin" as it con&eys them clearly what the product is and
whom it is meant for also at the same time it also informs the consumers
about the offerin"s and discounts associated with that product. Second and
third lar"est amount of customers mentioned price of "oods and location of
the outlets.
...../////
PRO"ECT REPORT P!ge 7A
RECOMMENDATIONS
The research findin"s of present study ha&e more practical orientation and
which is important for the mareters in supermarets sector. #ence, the
study recommends the followin".
9. +isual merchandisin" is the most important &ariable in in'store
en&ironment amon" the tested &ariables. It can si"nificantly influence
on consumer6s buyin" choice. Therefore, application of more
attracti&e &isual merchandisin" materials in their promotions will help
to obtain better results. The li"htin", 2esi"n layout, themed displays
and cleanliness are the ey elements of &isual merchandi1in"
pro"rams.
7. Most of customers are willin" to purchase products from super
marets from ;.88p.m. To A.88p.m. In weedays and 98.88a.m. To
C.88p.m. 2urin" weeends. Therefore, &isual merchandisers can pay
special attention to mae attracti&e en&ironment in the supermaret
premises and mae action to control the rush condition.
>. Spaces between shells .*assa"e/, cashier counters layouts, hei"ht of
shells, no. of ,ondola, number of impulse counters, sanitary facilities,
hei"ht of roof are ey &ariables of desi"n layout that helps to mae
customer rela(ation, con&enience to selection of products, reduce
a&era"e waitin" time and encoura"e the impulse purchasin" etc.
B. @hen desi"nin" the product display, Supermaret mana"ers should
pay special attention on cate"ory layout, canola .0i"ht ceilin"/, color
separation, li"htin" bo(, cate"ory name of product shells.
4. @hen plannin" for themed displays for special offers or for festi&e
seasons, the theme of the display and creati&ity should match the
offer for e(ample when plannin" for &alentine special it6s &ery
important that pic color should be used for the display
PRO"ECT REPORT P!ge >8
;. 2ama"ed items on the shells and dust will mae bad ima"e towards
the supermaret outlets and desi"n of floor tiles can mae
si"nificance influence to feelin" of pleasure at shoppin" time.
=. Majority of customers respond to the li"htin" more positi&ely. They
specially mentioned that li"htin" helps to select correct products,
reduce the time wasted and feel rela(ation durin" the shoppin" tours.
Therefore mana"ers can select appropriate li"htin" system that
creates satisfaction of psycholo"ical needs of customers.
C. The bac"round music will also encoura"e customers to spend e(tra
time in supermarets. #owe&er, it has low si"nificance relati&e to the
other elements of in'store en&ironment. It will help to encoura"e
customers to mae impulse purchasin" decisions in supermarets.
And also customers will consider the shoppin" in such a supermaret
is one of entertainin" e(ercise. The soft and classic music are hi"hly
recommended than other type of music.
...../////
C$n+,u()$n
)rom the study it is clearly understood that the arran"ement of the displays
in an attracti&e manner initiates new interest about the products in the
minds of the customer. By desi"nin" a proper themes and acti&atin"
chan"es fre!uently one can thus be a proacti&e retailer.
@ith "lobali1ation and the retail boom, &isual merchandisin" is "rowin" in
leaps and bounds. It is not simply concerned about decoratin" a store
beautifullyP but must also symboli1e the brand eepin" the tar"et audience
in mind.
By doin" this project am not only learned about the impact of &isual
merchandisin" but also it opened the door for me to learn about many
aspects in sales and retail includin" buyin" beha&ior of consumers,
salesmanship etc., I once than mi institute and also future "roup for
pro&idin" trainin" of this ind.
...../////

Project Report: Submitted By: SURENDHAR.D, II Yr. MBA, Rai Business School Chennai

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