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Finishing Report of Sujith PDF
Finishing Report of Sujith PDF
A Study on
for
Submitted to the
by
SUJITH POTU
BATCH 18 FK-1954
S C M S
SCMS – COCHIN
September 2010
DECLARATION
I, the undersigned, hereby declare that this project report entitled “A Study on
IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR,
HUBLI” has been written and submitted under the guidance of Prof.Sudheer
Sudhakaran and is my original work.
I understand that detection of any copying is liable to be punished in any way the
school deems fit.
(FK-1954)
S C M S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.
CERTIFICATE
Associate Professor
S C M S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.
DIRECTOR
ACKNOWLEDGEMENT
First and foremost, I would like to thank the Almighty God for helping me to
complete this project successfully. I would also like to thank FUTURE VALUE
RETAIL LTD. and SCMS-COCHIN for giving me this opportunity and also for
their generous support.
I would like to thank Prof. K. J. Paulose, Dean and project coordinator of SCMS-
Cochin for his support and guidance to get this project done. I would like to extend
my sincere thanks to the SCMS faculty guide, Prof. Sudheer Sudhakaran who
with friendly touch showed me the right path to accomplish the daunting task.
I am highly indebted to all those who offered their tireless support during the
course of the project and grateful to everybody‟s contribution and collaboration
6 Bibliography 60-62
7 Appendices 63-72
TABLE OF CONTENTS
15 Product recall 52
16 Assortment * Display influence Cross tabulation 53
17 Crosstab between Display influence satisfaction levels of 54
customers
List of Figures
15 Product recall 52
EXECUTIVE SUMMARY
Background:
The India Retail Industry is the largest among all the industries, accounting for
over ten per cent of the country‟s GDP and around eight per cent of the
employment. The Retail Industry in India has come forth as one of the most
dynamic and fast paced industries with several players entering the market.
This project has been done in Big Bazaar, Hubli. This is a flagship company of
future group which comes under future value retail limited with having annual
turnover of twenty three crores.
Purpose:
The purpose of the study was aimed at finding out the Impact of Visual
merchandising (VM) on customer buying behavior at Big Bazaar, Hubli.
Scope:
The scope of the study is to find out the impact of visual displays in the store
which causes to change the buying decisions of the customers. It is important to
notice that Visual merchandising is involved in getting more visitors to stores; it is
of immense importance which attracts customers towards impulsive buying in the
store.
Research methodology:
A sample size of hundred and fifty customers was selected for the study. Data was
collected by the simple random sampling method. Questionnaire was the tool used
to capture data from the customers, which was prepared on a Likert scale. Data
was analyzed through the SPSS software package and Ms Excel.
Major Findings:
Major Recommendations:
It includes both store exterior and store interior. Store exterior includes window
display retail premises and facade whereas store interior includes store layout,
fixtures and fittings, wall display and store highlights.
Also there are components governing both store exterior and interior, which
include colour coordination, lighting design, mannequin selection and the
application of design principles.
If retailers want to project the best side of its company, a good selection of the
visual merchandising with a detailed consideration of proper cooperate
expressions are vital.
Store related and product related information can also be acquired from store
environment (Baker et.al 1994).Also window display plays a crucial role in
affecting store entry decisions as it is very important information cue for
consumers (Bettman et.al, 1998).A little research about the inter relationship
between the importance of store aesthetics and consumer decision process, as a
result, the aim of this study is to look into this specific relationship.
CHAPTER -I
1
1.1 INTRODUCTION
It not only communicates the store‟s image, but also reinforces the stores
advertising efforts and encourages impulse buying by the customer. Visual
merchandising is a major factor often overlooked in the success or failure of a
retail store.
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. Along with the store design, it is a key component of store‟s unique
identity and best form of advertising.
2
Visual merchandising can be defined as everything the customer sees, both
exterior and interior, that creates a positive image of a business and results in
attention, interest, desire and action on the part of the customer. It includes the
presentation of merchandise as well as other important, features that create the
store‟s overall atmosphere. Eighty percent of impressions are created by sight; that
is why one picture is worth a thousand words. Each customer has a mental image
of a store and its merchandise. A store should have an inviting appearance that
makes the customer feel comfortable and yet eager to buy. Visual merchandising
is directly involved in two-third of the entire process of converting a mere visitor
into a buyer.
3
The 70% Rule
Seventy per cent of the purchase decisions happen on the store floor according to
the study conducted in the US in 1995 study initiated by the Point-of- Purchase
Advertising Institute. In addition to its conclusion that “more than seventy percent
of brand decisions are made in store,” It was also advanced that “POP (point-of-
purchase displays) are a significant decision Influencer.”
The study found that “more than seventy percent of brand purchase decisions
are made in-store at supermarkets, and more than seventy four percent are
made in-store at mass merchandisers.” This study was large in scope;
encompassing data from a nationwide field intercept study of four thousand two
hundred consumers across fourteen cities.
Visual merchandising has taken retailing by storm. Stemming from Neural
marketing, an intriguing marriage of marketing and science is the window to
human mind. It is the key to unlock the subconscious thoughts, feelings and
desires that drive the purchasing decisions that we make in everyday lives.
Sight: The first thing that motivates a consumer to walk into a store is how the
store looks‟. A welcoming and friendly store always scores a plus over those
which are not. Bright colours, well-placed merchandise and in-store
advertisements, all go into working for creating that „sight‟ for a consumer. For
example, in a furniture store, facts and helpful tips by interior designers can be put
up next to merchandise to aid the consumers. They can see, read and take
informed decisions.
4
Sound: Indulging the sense of sound through pleasing music (in accordance with
the merchandise and brand concept) is a must. At an apparel store for young
adults, fashion shows on screens and tips by stylists can be aired in the store to
help shoppers select clothes for themselves. Interviews or quotes by famous
authors can be played at bookstores to educate the customers on what books to
pick up.
Touch: This is a tricky sense to indulge in, but most vital. For today‟s quality-
conscious consumer it is more than a necessity to be able to „feel‟ the
merchandise. Be it in trying on clothes in the trial room, or testing a perfume with
a tester. The client should always be made to feel at home when it comes to the
sense of „touch‟. The worth this cannot be over emphasized.
Taste: Not all retail stores can hope at utilizing the sense of taste. But for those
who can, like chocolate stores, candy stores, F&B outlets, snack and juice bars
should aim at always treating the sense of „taste‟ of their consumers. On the house
samples for tasting, free dishes or drinks on certain amount of purchases or sweets
and chocolates for kids at any other kind of store are a few ways the retailer can
indulge in the sense of taste of the consumer.
5
in mind can work wonders for a brand. The sixth sense, in this case, can be the
sense the consumer exercises in purchasing the product. But that sense shall only
prevail if the other five have been effectively stimulated.
1.3.1Exterior Presentation
The quality of a store front is a
major determinant for a customer
and the store appearance should
never be compromised. The exterior
appearance silently announces what
customers can expect inside. Good
exterior visual merchandising
attracts attention, creates interest
and invites the customer into
business. Generally the exterior
presentation should be progressive, lavish or discount image to the customer. The
important point to be noted is that how a store visually welcomes a customer has
to do a lot, whether they enter or not.
1.3.2 Exterior Signs
An effective sign is a silent sales person. A sign must attract attention of
customers in less than ten
seconds and should convey
what the business is and
what it has to sell. The size
of the letter used in signs
should be large enough to
6
be read from a distant place. Elegant design and expensive sign material will
convey a business of luxury goods and services. A design of the sign conveys a
great deal about the business. Signs can also be used to target a specific market
segment such as youth, women, singles etc. Logo is also very important and plays
a major role in attracting customers. They should be unique and noticeable. To put
it in simple words simple brief, well designed, well lettered and easy to read signs
will attract more customers and convey a feeling of welcome to the customers. A
stores signs is its identity. It is with the sign that the public recognize the store.
Hence it should create an image that can be consistently carried out as an identity
of the store.
1.3.3 Marquees
Marquees are special type of signs used to display stores name. Effective
marquees should be designed so as it is different from others and attracts the
attention of customers.
1.3.4 Banners
Banners are economical but colourful and
eye catching means of promotion. They
can be changed frequently to create
different appearances which will in turn
attract customers to the store. It will be
more effective when the colour scheme
and design concept used in the banners are
the same as what is used in the store, on promotional materials and newspaper ads.
7
1.3.5 Entrance & Aisles
Most of the first time customers
remember the store entrance.
This goes on with the quote
„first impression is the best
impression‟. Giving the best
impression to the customer‟s
right at the entrance is
mandatory for any store. Cluttered aisles makes the shoppers feel uncomfortable
and hence leave to a bad shopping experience. Entrances that allow shopping to
come into a store without being aware of their entering are also becoming very
popular.
Three major goals of a store should be to motivate the customer to spend money,
project the image of the store and keep expenses to a minimum. Well-designed
displays and in-store promotions are essentials for a consistent theme and to help
the customer find advertised items.
Although the percentage of in-store purchase decisions may vary by type of store
and product, this is a critical selling point. Information provided by the Point of
Purchase Advertising Institute (POPAI) indicates that nothing influences the
9
consumer‟s purchase decisions more than advertising used where the sale is
actually made---the point of purchase.
10
attracted to a display within three to eight seconds, which is the time a customer
spends to determine interest in a product. Every display should be planned and
must have a theme. Good design makes a visual presentation come together.
This means the design attracts attention in a way that strengthens the store image,
as well as introducing merchandise to the customer. Sale or promotional good in
front of the store should be placed for short period of time only. If the sale or
promotion lasts for several weeks, merchandise should be moved to the rear of the
store. The customer should always get to see new exciting and creative
merchandise with display at the front of the store.
1.7.1 Props
A prop is something used with a product in a display that clarifies the function of
the merchandise being sold. Props are the integral part of a display. They are used
in visual merchandising to tell a story about a product, the merchandise concept or
the store itself. A display prop is something which is not for sale, such as floor
coverings, wall treatments, backgrounds, mannequins, shelves, and steps. Props
may also be merchandise that is for sale.
1.7.2 Image
When using sellable merchandise as a prop, it should be ensured that it is
appropriate for the theme of the display and in sufficient quantity to meet an
increased demand arising from the display. Theme and prop merchandise must be
prominently displayed in their respective departments for the easy access by the
customer.
If a store does not have merchandise available that can be used in the display,
display props can be used for non-merchandise categories. Non-merchandise props
11
used for their original purpose can assist in telling a story. Including tissue paper,
pens, pencils, shopping bags, hangers, chairs, desks and tables is an example. The
presence of prop is to highlight or complement the merchandise and add visual
excitement to the surrounding area.
1.8.1 Straight Rack - Long pipe suspended with supports to the floor or attached
to the wall.
12
1.9.4 Folding – For soft lines that can be folded and
stacked on shelves or tables – creates high fashion
image.
1.9.5 Stacking – For large hard lines that can be
stacked on shelves, base desks of gondolas or flats –
easy to maintain and show an image of high volume
and low price. Stacking cushions is one such practice.
Soft materials stacked are
seen in the figure.
13
1.9.8 Planogram
Planogram is tool used by the retailer, which helps the
retailer to determine the location of the merchandise
within a department. It is a diagram that visually
communicates how merchandise physically fit on to a
store fixture or window, to allow for proper visibility and
price point options. It helps in listing the exact number of
square feet used for various products and exact number
of products to be displayed in a particular area
Planogramming benefits:
15
1.12 Interior Signage
Signage is a critical part of interior
display and point-of-purchase
promotion. Store signage that
communicates a sales message to the
customers can make up for lack of sales
personnel. A good point-of-purchase
sign, properly placed, acts as a
salesperson without wages. Signs were
originally used to identify a store, name various departments, and announce sales
and sale merchandise. Although their primary purpose was these, now signage
commonly advertises vendors, colours, quality and prices. They can also be used
to explain customer benefits and describe merchandise features.
16
Generally the lack of merchandise on the display is that the merchandise has been
sold and it has not been replaced.
If the items needed for display are unavailable then the display dimensions have to
be reduced to make it appear in proportion with the available merchandise. Poor
planning is also one of the main reasons.
17
However, high level of creativity is needed to plan and execute a great display
with very little budget. Good theme development without expensive background
can be created. An example would be use of old furniture, wood, clothes
effectively to create a classic image.
18
1.14 Use of other sensory organs for merchandising
19
CHAPTER II
Research Methodology
20
Research Methodology
21
2.5 Data Collection:
Data is the information which will be collected from various sources. It concerns
with gather accurate information about the problem.
2.6 Data collection mode: Two methods can be used to collect the relevant data,
which are essential for the study.
Primary Data: Data will be collected to obtain desired information
through structured questionnaire.
Secondary Data: Data is collected through books, magazines, newspapers
and internet…etc
22
CHAPTER III
INDUSTRY & COMPANY
PROFILES
23
3.1Indian Retail Scenario:
The retail scenario is one of the fastest growing industries in India over the last
couple of years. The Indian retail industry is the third largest in the world.
Comprising of organized and unorganized sectors, though initially, the retail
industry in India was mostly unorganized consists of small and medium grocery
store, medicine stores, „subzi mandi‟, „kirana‟ stores, „paan‟ shops etc. However,
with the change of tastes and preferences of the consumers, the industry is getting
more popular these days and getting organized as well. More than Ninety percent
of retailing in India fall into the unorganized sector, the organized sector is largely
concentrated in big cities. Organized retail in India is expected to grow Twenty
five to Thirty per cent yearly and is expected to increase from Rs 35, 000crore in
2004-05 to Rs109, 000 crore ($24 billion) by 2010.
24
Supermarkets Extremely large self-service retail outlets One stop shop catering to
varied consumer needs
Discount Stores offering discounts on the retail Low Prices
Stores price through selling high volumes and
reaping economies of scale
Hypermarket Larger than a supermarket, sometimes Low prices, vast choice
with a warehouse appearance, generally available including services
located in quieter parts of the city such as cafeterias
Future Group: Pantaloon is one of the biggest retailers in India with more than
four fifty stores across the country. Headquartered in Mumbai, it has more than
five million sq. ft retail space located across the country. It is growing at an
enviable pace and is expected to reach thirty million sq. ft by the year 2010.
Tata Group: Tata group is another major player in Indian retail industry with its
subsidiary Trent, which operates Westside and Star India Bazaar. Established in
1998, it also acquired the largest book and music retailer in India „Landmark‟ in
2005. Trent owns over four lakh sq. ft retail space across the country.
RPG Group: RPG Group is one of the earlier entrants in the Indian retail market,
when it came into food & grocery retailing in 1996 with its retail Food world
stores. Later it also opened the pharmacy and beauty care outlets „Health & Glow‟.
25
Reliance: Reliance is one of the biggest players in Indian retail industry. More
than three hundreds Reliance Fresh stores and Reliance Mart are quite popular in
the Indian retail market. It is expecting its sales to reach Rs. 90,000 crores by
2010.
The retail industry in India is currently growing at a great pace and is expected to
go up to Rs. 3.74 lakh crore by the year 2013. It is further expected to reach Rs. 65
trillion by the year 2018. As the country has got a high growth rates, the consumer
spending has also gone up and is also expected to go up further in the future. In the
last four year, the consumer spending in India climbed up to seventy five percent
.As a result, the India retail industry is expected to grow further in the future days.
By the year 2013, the organized sector is also expected to grow at a rate of forty
percent.
26
According to Government of India estimate the retail sector is likely to
grow to a value of Rs. 2,00,000 crore (US$45 billion) and could yield ten
to fifteen million retail jobs in the coming five years; currently this
industry employs eight percent of the working population in India which is
the second largest employment provider after agriculture.
More than eight percent of the retail sector in the country is concentrated in the
large cities. A study reveals that among the more than twenty locations, for
organized retail in India, Mumbai was found to be the most preferred location
followed closely by Bangalore in the second position.
27
twenty. By September 30, 2009, the company has recorded a net profit of
Rs. 54 crore.
Australia's Retail Food Group is planning to enter the Indian market in
2010. It has plans to clock Rs.34.8 crore revenue in five years. In twenty
years they expect the India operations to be larger than the Australia
operations.
Led by its flagship enterprise, Pantaloon Retail, the group operates over twelve
million square feet of retail space in over seventy cities and towns and sixty five
rural locations across India. The group owns several leading formats including
Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon
Retail was awarded the International Retailer of the Year - 2007, by the US-
based National Retail Federation, the largest retail trade association and the
Emerging Market Retailer of the Year 2007 at the World Retail Congress in
Barcelona. Future Group believes in developing strong insights on Indian
consumers and building businesses based on Indian ideas, as espoused in the
group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules,
Retain values'.
28
3.6.1 About Pantaloon Retail (India) Limited:
Pantaloon Retail (India) Limited, is India‟s leading retailer that operates multiple
retail formats in both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company operates over sixteen
million square feet of retail space, has over thousand stores across seventy cities in
India and employees over thirty thousand people with 6,341.70 Crores turnover.
29
Pantaloon Retail is the flagship company of Future Group, a business group
catering to the entire Indian consumption space.
3.6.2 Big Bazaar:
Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for
the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices – that is
what we guarantee. With the ever increasing array of private labels, it has opened
the doors into the world of fashion and general merchandise including home
furnishings, utensils, crockery, cutlery, sports goods and much more at prices that
will surprise you. And this is just the beginning. Big Bazaar plans to add much
more to complete your shopping experience.
30
Brief view of Big Bazaar’s Products:
Fashion Dept Food Bazaar GM-Home Gm-fashion
Staples Utensils Depot
Denims & T-shirts
Fruits &
Fabrics & Cut
Vegetables Furniture Luggage carriers
pieces
Ready to cook Electronics
Formal wear
Own brands
Casual wear
Species
Party wear
Live kitchen
Ethnic wear
Accessories
Under garments
Night wear
Dress material
Sarees
Foot wear
31
Chapter IV
Analysis & Interpretation of Data
32
4.1 Frequency of visitors to Big Bazaar
Gender Total
Male M% Female F%
Frequency More than once in a week 23 28.7 25 35.7 48
Once in a week 19 23.7 16 22.8 35
Once in a month 15 18.7 24 34.2 39
Only on offer days 14 17.5 4 5.7 18
Very rarely 9 11.2 1 1.4 10
Total 80 70 150
25 28.7
20 23.7 22.8
15 18.7 17.5
10 11.2
5
5.7 1.4
0
More than once Once in a week Once in a Only on offer Very rarely
in a week month days
FREQUENCY
33
Analysis:
It is observed that 55.3% of samples are coming the store once in the week, so we
need to concentrate on daily consumables.34.2% female are coming once in a
month, so to attract these people we need to concentrate on provisions.17.5% of
male samples are interested to come only on offer days, so it will be helpful to
concentrate slightly on male belongings on offer days.
Gender Total
Male M% Female F%
New arrival Through display of the product 37 46.3 25 35.7 62
Through Offers 19 23.8 14 20 33
Through Announcements 16 20.0 8 11.4 24
By enquiring salesperson 3 3.8 9 12.9 12
You will search by your own 5 6.3 14 20 19
Total 80 70 150
34
50
40 46.3 Male Female
PERCENTAGE
30 35.7
20 23.8
20 20 20
10 12.9
11.4 3.8 6.3
0
Through display Through Offers Through By enquiring You will search
of the product Announcements salesperson by your own
FACTORS
Analysis:
From the above interpretation it was observed that 46% of the male samples and
35.7% of female samples came to know about the new product arrival in the store
through display of the product. Only 22% of the samples came to know through
different offers.
So with that i can conclude that Visual merchandising is making awareness about
new product better than offers offered for the customers on new products.
35
Table-3(Perception about product arrangement & display in the store)
60
57.1
50
Male Female
40
PERCENTAGE
40
30
10 12.9
10
5.7 3.8 1.4
0
Always Mostly Sometimes Rarely Never
FREQUENCY
Analysis:
It can be observed that 70.6% of the samples (80% female samples) agreed that
they were attracted by the product arrangement and display in the store.
With that I can conclude that the proper arrangement and display of the products
will be vital in retail store especially female requirements. So visual
merchandising should be attractive and message oriented regarding product.
36
4.4 Perception about following the displays and layout to find a product
Gender Total
Male M% Female
Follow display Strongly Agree 34 42.5 44 62.9 78
Agree 20 25 14 20 34
Neither agree nor Disagree 17 21.3 10 14.3 27
Disagree 7 8.8 1 1.4 8
Strongly Disagree 2 2.5 1 1.4 3
Total 80 70 150
40 42.5
30
20 25
20 21.3
10 14.3
8.8 1.4 2.5 1.4
0
Strongly Agree Agree Neither agree Disagree Strongly
nor Disagree Disagree
Perceptual Factors
37
Analysis:
From the above analysis it can be observed that 74.6% samples (82.9%female samples)
were agreed that they follow displays and layout to find product.
So it is necessary to maintain excellent displays for products and flexible layout for store.
Then it will be very helpful to the customers to find the products easily and impulsive
buying may happen with excellent display of products. This will help in raising the sales.
Gender Total
Male M% Female F%
I enter Go straight to the product which i want 9 11.3 20 28.6 29
Walk through the store as it leads me 60 75 28 40 88
Don't follow any pattern, randomly pick product 7 8.8 12 17.1 19
Seek the help of salesperson to navigate in the 5 14.3
4 10 14
store
Total 80 70 150
38
80
70 75
Male Female
60
PERCENTAGE
50
40
40
30
28.6
20
10 17.1
14.3
11.3 8.8 5
0
Go straight to the Walk through the Don't follow any Seek the help of
product which i want store as it leads me pattern, randomly salesperson to
pick product navigate in the store
ACTIONS
Analysis:
It can be inferred as 58.6% of the samples are stated that “they walk through the store as it
leads them”.
So from the above I can conclude that it will be the trick of Visual merchandising to
convert the people who walk through the store as customers. So store should concentrate
on excellent way of merchandising to attract customers and to improve sales of the store.
39
4.6 Perception about promotional activities in the store
Gender Total
Male M% Female F%
Offers Sign boards/Drop downs 40 50 17 24.3 57
Promo areas(melas) 9 11.3 25 35.7 34
sales people 5 6.3 12 17.1 17
pamphlets 9 11.3 3 4.3 12
Announcements in the store 17 21.3 13 18.6 30
Total 80 70 150
60
50
50 Male Female
40
PERCENTAGE
30 35.7
20 24.3
21.3
17.1 18.6
10
11.3 6.3 11.3 4.3
0
ACTIVITIES
40
Analysis:
From the above it can be observed that 60.6% of the samples came to know about
the offers through sign boards/drop downs & promo areas.
So it is important to convey the offers to customer to get attention at the product.
With this I can conclude that proper displaying of sign boards, promo areas will
help the customers to know about offers and will be helpful in increasing the sales.
Gender Total
Male M% Female F%
I bought what i came to buy, Nothing more 21 26.3 7 10 28
I bought little more than what i came for 34 42.5 46 65.7 80
I bought lot more than what i came for 15 18.8 9 12.9 24
I bought everything that attracted me 7 8.8 6 8.6 13
I didn't find what i needed, so i didn't buy 3.8 2.9
3 2 5
anything
Total 80 70 150
41
70
60 65.7
Male Female
50
PERCENTAGE
40 42.5
30
26.3
20
18.8
10 12.9
10 8.8 8.6 3.8 2.9
0
I bought what I bought little I bought lot I bought I didn't find
i came to more than more than everything what i
buy, Nothing what i came what i came that attracted needed, so i
more for for me didn't buy
ACTIVITIES anything
Analysis:
From the above it can be observed that 53.3% samples bought more than what
exactly they came for. That may happen with the impulsive buying, offers. So
visual display of the sign boards and products are crucial to create an intention to
buy the product with offer or with good display.
42
4.8 Factors effecting buying behavior
Gender Total
Male M% Female F%
Attractive displays of the product 17 21.3 11 15.7 28
Good product 12 15 23 32.9 35
Information provided by sales person 6 7.5 7 10 13
When i see a good deal, i tend to buy more 42.5 30
34 21 55
than i intended to buy
No specific reason, i bought because i like 13.8 2.9
11 2 13
the product
I didn't buy anything out of list 0 0 6 8.6 6
Total 80 70 150
45
40 42.5
35 Male Female
30 32.9
PERCENTAGE
30
25
20 21.3
15
15.7 15
10 13.8
10 8.6
5 7.5 2.9 0
0
Attractive Good product Information When i see a No specific I didn't buy
displays of the provided by good deal, i reason, i anything out
product sales person tend to buy bought of list
more than i because i like
intended to the product
buy
FACTORS
43
Fig-8((Factors affecting buying behavior)
Analysis:
From the above it can be observed that 42.5% male samples and 30% female
samples were agreed that when they see good deal they will buy. So it is important
to display the offers and promote them as much possible.29% was influenced by
attractive display of the product. So we should concentrate on product display in
the store which can influence the buying decisions of the customers.
Gender Total
Male M% Female F%
Yes 68 85 56 80 124
No 12 15 14 20 26
Total 80 70 150
44
90
80 85
80 Yes
70
No
60
PERCETAGE
50
40
30
20
20
10 15
0
Male GENDER Female
Analysis:
From the above it can be observe that 82.6% samples experienced impulsive
buying in the store.
So there is a possibility to implement some techniques to grab those customers
who tend to impulsive buying inside the store.
45
Gender Total
Male M% Female F%
Influence of product arrangement 13 19.1 9 16.1 22
Placing of the product 8 11.8 10 17.9 18
Influence of promotional signage 15 22.1 23 41.1 38
Excitement in trying a new product 20 29.4 8 14.3 28
Influence of mannequin display 12 17.6 6 10.7 18
Total 68 56 124
45
40 41.1 Male Female
35
30
PERCENTAGE
29.4
25
20 22.1
19.1
15 16.1
17.9 17.6
14.3
10 11.8 10.7
5
0
Influence of Placing of the Influence of Excitement in Influence of
product product promotional trying a new mannequin
arrangement FACTORS signage product display
46
Analysis:
From the above analysis it is observed that 30.6% over all samples and 41.1% female
samples tend to impulsive buying with the influence of promotional signage, 29.4% male
samples were agreed that they tend to impulsive buying for excitement in trying a new
product, So 32.2% samples are influenced by placing of the product and product
arrangement.
So from that it is clear that the factors which are influencing the impulsive buying are
promotions and product arrangement. Here comes Visual merchandising to arrange
products effectively and to create promotions visible to customers to convert the walk-ins
as sales.
Gender Total
Male M% Female F%
Nearby cash counter while waiting for payment 21 30.9 15 26.8 36
Promo area 19 27.9 28 50 47
Where promotions are too attractive in the store 28 41.2 13 23.2 41
Total 68 56 124
47
60
50 Male Female
50
40 41.2
PERCENTAGE
30
30.9
26.8 27.9
20 23.2
10
0
Nearby cash counter Promo area Where promotions are
while waiting for too attractive in the
payment PLACES store
Analysis:
From the above it can be observed that 71.7% samples made impulsive buying at
promo areas and at the places where the promotions are too high inside the
store.50% of the female samples stated that they will do impulsive buying at
promo areas.
So it is necessary to concentrate on promotions to achieve impulsive buying inside
the store.
48
4.12 Perception about product arrangement
Gender Total
Male M% Female F%
Excellent 19 23.8 14 20 33
Very good 30 37.5 34 48.6 64
Good 21 26.3 5 7.1 26
Average 3 3.8 13 18.6 16
Poor 7 8.8 4 5.7 11
Total 80 70 150
60
50
48.6
Male Female
40
PERCENTAGE
37.5
30
26.3
20 23.8
20 18.6
10
8.8
7.1 3.8 5.7
0
Excellent Very good Good Average Poor
PERCEPTUAL FACTORS
49
Analysis:
From the above it can be observed that 82% of the samples agreed that the
product arrangement is acceptable.18.6% female samples stated that it is poor. So
it is important to arrange and display the product properly. So proper visual
merchandising is required for better results.
4.13 Perception about change in buying decisions with the influence of display
Gender Total
Male M% Female F%
Strongly agree 17 21.3 11 15.7 28
Agree 27 33.8 31 44.3 58
Neither agree nor disagree 19 23.8 14 20 33
Disagree 12 15 10 14.3 22
Strongly disagree 5 6.3 4 5.7 9
Total 80 70 150
Table-12 (Perception about change in buying decisions with the influence of
display)
50
50
Male Female
40 44.3
PERCENTAGE
30 33.8
20 21.3
23.8
20
10 15.7 15 14.3
6.3 5.7
0
Strongly Agree Neither agree Disagree Strongly
agree nor disagree disagree
PERCEPTUAL FACTORS
Analysis:
From the above it can be observed that 50.7% samples were agreed that visual display of
the product influenced their buying decisions.
So it is very important to improve the quality of the displays and presentation of the
product to attract more customers. This will defiantly helpful in creating an identity in
customer‟s mind about the store. So visual merchandising of the store should be attractive.
60
50
40
30
20
10 7.5 12.9 0 5.7
0
Locating products Lighting Colours
through signs, graphics
FACTORS
52
Table-15(Shopping Experience)
70
60 65
58.6 Male Female
50
PERCENTAGE
40
30
20
18.8 17.1
10 13.8 11.4
2.5 8.6 0 4.3
0
Highly Satisfied Neither Dissatisfied Highly
Satisfied Satisfied nor dissatisfied
dissatisfied PERCEPTUAL FACTORS
Fig-14(Shopping Experience)
Analysis:
From the above it can be observed as 80% of the samples are satisfied with the service
offered by Big Bazaar, Hubli.
Gender Total
Male M% Female F%
Yes 67 83.75 64 91.43 131
No 13 16.25 6 12.9 15
Total 80 70 150
Table-16(Product recall)
53
100
90
91.43
80 83.75
70
Yes
PERCENTAGE
60
50 No
40
30
20
10 16.25
12.9
0
Male Female
GENDER
Fig-15(Product recall)
Analysis:
From the above it can be observed as 91.5% of the female samples are able to recall the
product, and only 84% of male samples are able to recall the product. So it is important to
attain the hundred percent attentions of the customers with product display in the store.
54
4.17 Assortment * Display influence Cross tabulation
Chi-Square Tests
55
From the chi-square test output table significance level of 0.03 has been achieved.
So we can neglect the null hypothesis.
Result:
By using the above analysis I can conclude that the product display has an impact on
buying decisions inside the store.
Out of seventy female samples 75.7% customers satisfied with shopping experience at Big
Bazaar, Hubli. In that satisfaction level 62.2% has changed their buying decisions with the
influence of product display in the store.
From the above analysis it can be observed that the customers who are tending to change
their buying decisions with the influence of product display are satisfying with the
shopping experience at Big Bazaar. So it is important to improve the visual merchandising
at store to enhance the shopping experience of customers and to satisfy the customers.
57
CHAPTER V
FINDINGS AND CONCLUSIONS
58
5.1 FINDINGS AND CONCLUSIONS
From the Analysis of the results and based on the objectives of the study the
following findings can be ascertained:
55 percent customers are influenced to buy more than they tend to buy, the
main reasons for that are attractive product display and good deal/offer with
the product.
63percent of the customers came to know about the new product arrival
through the display of the product and through the discount offers.
Out of hundred and fifty samples 74percent preferred to follow the layout
of the store to find the product.
58percent of the samples are intended to follow the layout of the store as it
leads them.
By effective presentation of the sign boards/drop downs and with promo
activities like melas & celebrations 60percent people came to know about
different offers in the store.
40percent of the customers changed their buying decisions by the influence
of product arrangement and promotional signage.
87 percent customers are able to recall the product after their shopping. So
it is stating that the visual merchandising of the store is good.
70percent of the customers are tending to do impulsive buying nearby
promo areas and where the promotions are too high in the store.
Out of hundred and fifty samples 57percent of customers had the
perception that the product arrangement in the store is good and it
influenced their buying decisions.
Food Bazaar is the walk-in driver for the store with low margins and adding
value to the store.
Fashion department is the one which is contributing significantly in both
sales and margin to the store.
59
Walk-ins are more on Wednesday bazaar, weekends and celebrations like
birthday celebrations, big day celebrations, melas…etc
People have good knowledge about products in Big Bazaar, Hubli.
Especially Koryo‟s small appliances, Tasty treat‟s mango juice, pure &
fresh‟s Ghee…etc
80 percent of customers are satisfied with the shopping experience at Big
Bazaar, Hubli. They used to say that wide range of availability under the
single roof made their shopping easier and the offers they are getting in the
store are satisfying its tag line “Is se sastha aur acha kahin nahi”.
5.2 SUGGESTIONS:
Some of the suggestions given by the customers are as follows
It is necessary to improve the product arrangement and offers to get
attention of the remaining 45percent customers.
Customers have observed that Big Bazaar needs to improve their ambience
– with suggestions regarding improvement in lighting, fragrance in fashion
department.
5.3 RECOMMENDATIONS
Setup the merchandise outside the store, this can create a sense of
excitement and buzz: consider a "Street Fair" environment, with flags and
balloons.
Customers are in a hurry. It is better to use signage to identify not only
departments but also categories -- this will help customers pinpoint what
they need and inspire additional purchases.
Plan on changing the displays at least weekly.
Merchandise that moves will catch the eye, so it is better to have anything
that moves --from clocks to toys to music boxes, take one out and set it up.
Great merchandising appeals to more than the eyes. Consider how store
sounds, smells, and even feels.
61
5.4 ON A FURTHER NOTE
It evolved out of my study that although the importance of VM is growing, there
are no real metrics for measuring its effectiveness. “There is no right or wrong as
far as retailing and Visual merchandising are concerned. There is no way to find
out what worked. It is just trying out new things. Some things work, some things
do not”
I feel that a Dosage test can be employed in this regard. When product promotions
remain constant, increasing levels of visual merchandising efforts can be
employed to see the response of customers. Periodically monitoring increase in
sales during times of dramatic VM implementations can also be a way to
determine if the VM efforts paid off.
62
CHAPTER VI
BIBLIOGRAPHY
63
Books:
Kotler, Philip and Kevin Lane Keller. Marketing Management. New Delhi:
Prentice-Hall of India Private Limited, 2007
REFERENCES:
Arora ,V.P.S., Sharma, Shivani, and K. Singh, Nirdesh. (2007). Nature and
Functioning of Visual Merchandising in Organized Food Retailing. Retrieved
August 11, 2010, from
Ageconsearch http://ageconsearch.umn.edu/bitstream/47438/2/3-VPS-Arora
64
Electronic References: Electronic Media and URLs (2003). Retrieved August 11,
2010,
from Retail Franchise India online, Retail franchise India website:
http://retail.franchiseindia.com/articles/Retail-Store-Operations/VM-and-
Design/Sensoryexperience-must-in-retail-design-163
www.rai.net.in
www.pantaloon.com
www.retailyatra.com
www.futurebazaar.com
www.futuregroup.com
www.Retailerslideshare.net
www.supplychaintoday.com/info007.html
www.scribd.com
www.retailchoice.com
www.theretailbulletin.com
www.globalretailbusiness.com
www.Wikipedia.com
65
Chapter VII
Appendices
66
APPENDIX-1
QUESTIONNAIRE
Hi! Hope you enjoyed the shopping. It would be really great if you can help me
(PGDM Student of SCMS-COCHIN) in understanding a few things that would
make shopping effective and entertaining. Please help me by filling out this
questionnaire and be a part of my Marketing Research project.
2. How do you come to know about new product arrival in the store?
Through Display of the product
Through offers
Through announcements
By enquiring salesperson
You will search by your own
67
3. Do the way of product arrangement & display in the store attract you?
Always
Mostly
Sometimes
Rarely
Never
6. While shopping, how do you come to know about the offers for the day in
the store?
(Tick only one option which is most relevant)
Sign boards/drop downs
promo areas (Melas, Celebrations)
Sales People
68
Pamphlets
Announcements in the store
8. If you have bought some products other than what you came to buy, which
of the following factors made you buy more? (Tick as many as applies)
Attractive display of the product
Good Product
Information provided by salesperson
When I see a good deal, I tend to buy more than that I intended to buy.
No specific reason, I just bought because I liked the Product
I did not buy anything out of list
69
Influence of Promotional Signage
Excitement in trying a new product
Influence of mannequin display
10. At which place you tend to do more impulsive buying in the store?
Nearby cash counter while waiting for payment
Promo area (Melas, celebrations)
Nearby coffee bar
Where promotions are too attractive in the store
11. What do you feel about the product arrangement in the store?
Excellent
very good
Good
Average
Poor
70
13. How do you feel that the following factors influence your buying decisions
in a store?
14. Can you recall one product based on the display which was prominently
promoted in the store?
Please specify__________
15. On the whole how was your shopping experience with Big Bazaar?
Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly dissatisfied
71
Demographics
1. Name: ______________________________________________
4. Education:
7. Contact no:
72
APPENDIX-2
Nearest Airport: The Airport at Hubli (18 KM). There are other nearby airports
like Belgaum (80 KM), Goa (160 KM), Bangalore (420 KM) and Mumbai (550
KM). From each of above cities there are numerous luxury buses and trains.
About Hubli
73
Fact Sheet - Hubli
- Area 13738 SQ Km
- Population 9,000,00
- Airport Available
- Network Access Any data rates like 2/8 /34 /140 Mbps and multiple
access from customer premises on optical fiber system
Redundancy provided by optical fibers in SDH ring
- Leased line circuits Leased circuits of 64 Kbps, 2 Mbps available from any
Location in NK to national or international
destinations
74
. 2 / 8 / 140 Mb access can be provided from the users
premises on optical fiber system
75