For an Internship Project On:

At- Reliance Trend, D.B City Mall Bhopal.

[Internship Period- 10th Feb to 25th March 2016]

Guided By: Prepared By:

Mr. kushal Patil Ganesh Lilhare
IPRM 6th SEM.

2
DECLARATION

We hereby declare that final report submitted to Footwear Design &

Development Institute, FMRM Department. This report is submitted in partial
fulfillment of the requirement for degree of BBA+MBA in FMRM.The opinion and
conclusions arrived at, are my own responsibility and views expressed in this
report do not represent the views of any individual.

3
ACKNOWLEDGEMENT

It is our proud privilege to epitomize my deepest sense of gratitude

and inertness to Mrs. Chandra Rai [Store Manager Reliance Trend Bhopal] for his
valuable guidance, keen and sustained interest, intuitive ideas and persistent
endeavor. His inspiring assistance, laconic reciprocation and affectionate care
enabled us to complete our work smoothly and successfully.

We acknowledge with immense pleasure the sustained interest,

encouraging attitude and constant inspiration rendered by Mr. Mahesh Singh
[HOD FMRM FDDI] His continued drive for better quality in everything that
happens at FDDI and selfless inspiration has always helped us to move ahead.

At the nib but neap tide, we bow our head in gratitude at the
omnipresent almighty for all his kindness. We still seek his blessings to proceed
further
My family and friends also supported me with the study and encouraged
me a lot and I am thankful for it.

4
 Contents

CHAPTER
NO PARTICULARS PAGE NO

1 1.1 INTRODUCTION 7
1.2 VISUAL MERCHANDISING OBJECTIVE 8
1.3 NEED AND IMPORTANCE FOR THE STUDY 10
1.4 INDIA RETAIL INDUSTRY –OVER VIEW 11
1.5 COMPANY PROFILE 13
2 STATEMENT OF OBJECTIVE 16
2.1 PRIMARY DATA 18
2.2 SECONDARY DATA 14
3 3.1 REVIEW OF LITERATURE 17

3.2 VISUAL MERCHANDISING STRATEGIES AT 19

RELIENCE TREND
3.3 CONCEPTUALIZATION 21
4 4.1 RESEARCH DESIGN & DATA COLLECTION 22
4.2 DATA ANALYSIS PROCEDURE 22
4.3 LIMITATIONS OF THE STUDY 23
4.4 DATA ANALYSIS AND INTERPRETATION 24
4.5 RECOMMENDATIONS 27
5 VISUAL MERCHANDISING AFFECT IN –STORE 29
SALE?
6 TET’S TAKE A CHOSE LOOK ON FACTORS THE 30
MOST :
6.1 1. WINDOWS DISPLAY 30
6.2 COLOUR 31

5
 6.3 LIGHTING 33
6.4 SINAGE 34
6.5 FIXTURE AND FITTING 35
6.6 STORE INTERIER 36
7 CONCLUTION 38

6
Introduction

I chose RELINCE TREND at Db city Bhopal to do my project under the

topic “A STUDY ON IMPACT OF VISUAL MERCHANDISING IN SALE a unit of
RELENCE GROUP is one of the most well-known Retail firms in India. I found Retail
business appropriate for the topic as this is the only business which gives
importance for visual merchandising is one such firm a leading player in the
industry and also encourages students like me to conduct this kind of studies in
their outlets and providing proper support and assistance

Visual Merchandising Objectives

7
 The art of visual merchandising has evolved from a role as store beautifier
to one of sales support. According to Iowa State University, it is the second most
important factor affecting store success. Retailers rely on visual merchandising to
reinforce their store's image, improve customer service, increase sales and create
a pleasant shopping experience. Visual merchandising demands constant
attention to sustain shopper interest and repeat business.

Store Image
Visual merchandising elements -- decor, logo and interior design -- set a
retail store's image, or brand identity, and distinguish the business from its
competition. Lighting, fixtures, music, color and product placement work together
to establish an atmosphere that complements and supports that image. Even the
look of the shopping bag, notes renowned visual merchandising Martin Pegler,
promotes store identity. A store whose appearance communicates quality attracts
customers interested in quality; a bargain basement atmosphere encourages
expectations for lower prices.

Customer Service
For small stores forced to minimize their staffing level, visual merchandising
enables customers to see and feel items without asking for help. Displays
showcase product features to educate customers and answer their questions.
Well-placed signs and the arrangement of stock in a logical sequence -- bed pillow
next to sheets, for example -- help shoppers find what they need.

8
Sales

At the heart of visual merchandising lies its ability to trigger an emotional

reaction that leads a customer to buy. Strategically located floor displays guide
shoppers through departments, while eye-catching fixture set-ups entice them to
stop along the way. Lighting, color and props can attract browsers and turn them
into buyers. Displays that use a theme, or visual story, to present product
assortments encourage both add-on and multiple sales. For example, presenting
beach towels, swimsuits, cover-ups, sunglasses and flip-flops together in a "swim
shop" persuades someone preparing for a cruise to purchase a coordinated look.

Shopping Experience

Visual merchandising inspires shoppers so they leave the store happy. It

adds an entertainment factor to shopping. Returning customers soon tire of
seeing the same merchandise displayed the same way. By frequently moving
things around and introducing new props and signage, a retailer can give his store
a newness and freshness that lends an air of excitement. A regularly changed
visual merchandising plan simultaneously invites shoppers to enjoy their shopping
experience and reinforces a store's success in their eyes.

9
Need and importance of visual merchandising

Visual merchandising today forms a critical element of retailing. Besides

the facade and windows, which are clearly done up with an objective to attract
passer-bys and induce walk-ins, there is also in-store decor that is designed to
enhance the customer’s comfort and convenience while shopping and overall,
offer a superior shopping experience.

Consumer behavior studies have confirmed that the lure of a beautifully done up
show window and a tastefully decorated facade, more often than not, prove
irresistible as they walk in to check out what is on offer. It also ensures exclusivity
since no two stores should look alike. Besides, when the mood and theme of such
displays change at regular intervals, it makes certain that the store remains top of
mind. Loyal customers have often been known to anxiously wait for the next
display. ‘Stickiness’ in retail formats is also ensured by the imaginative use of
colors, lighting, space, furniture and visual elements with regard to in-store
displays.

Once customers walk in, it is but imperative to ensure that they enjoy their first
encounter with the store. After all, repeat visits will only happen if a customer’s
first visit is a memorable one. The logical arrangement of counters, with clear
passageways allows for easy access to merchandise.

Rather than getting lost in the big space that most large stores are, the customer
feels more in control. Space is allocated to various product categories taking into
account the number of SKUs stocked and shelves/counter space requirements are
worked out accordingly.

A great deal of research has been undertaken on the impact of lighting on a

customer’s purchase behavior. Results clearly indicate that in general, stores that
are brightly lit, with the lights cleverly blending with the interiors lead to higher
customer comfort, and as such, more sales.

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

The BMI India Retail Report for the third-quarter of 2010, forecasts that the
total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by
2014. With the expanding middle and upper class consumer base, there will also
be opportunities in India's tier II and III cities. The greater availability of personal
credit and a growing vehicle population to improve mobility also contribute to a
trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail
(MGR) sales in India are forecast to undergo enormous growth over the forecast
period. BMI further predicts that sales through MGR outlets will increase by 154
per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's
dramatic, rapid shift from small independent retailers to large, modern outlets.

BMI forecasts consumer electronic sales at US$ 29.86 billion in 2010, with
over the counter (OTC) pharmaceutical sales at US$ 3.28 billion. The latter is
predicted to be the fastest growing retail sub-sector and BMI forecasts that sales
will reach US$ 6.18 billion by 2014, an increase of 88.5 per cent.

Moreover, for the 4th time in five years, India has been ranked as the most
attractive nation for retail investment among 30 emerging markets by the US-
based global management consulting firm, A T Kearney in its 8th annual Global
Retail Development Index (GRDI) 2009. India remains among the leaders in the
2010 GRDI and presents major retail opportunities. India's retail market is
expected to be worth about US$ 410 billion, with 5 per cent of sales through
organized retail, meaning that the opportunity in India remains immense.

Established retailers are tapping into the growing retail market by

introducing innovative store formats. Spencer's Retail, More (owned by Aditya

11
Birla Group) and Shoppers Stop (owned by K Raheja Group) already plan to
expand.

According to a McKinsey & Company report titled 'The Great Indian Bazaar:
Organized Retail Comes of Age in India', organized retail in India is expected to
increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the
total retail market and reach US$ 450 billion by 2015.

Furthermore, according to a report titled 'India Organized Retail Market

2010', published by Knight Frank India in May 2010 during 2010-12, around 55
million square feet (sq. ft.) of retail space will be ready in Mumbai, national capital
region (NCR), Bangalore, Kolkata, Chennai, Hyderabad and Pune. Besides,
between 2010 and 2012, the organized retail real estate stock will grow from the
existing 41 million sq. ft. to 95 million sq. ft.

India continues to be among the most attractive countries for global retailers.
Foreign direct investment (FDI) inflows between April 2000 and April 2010, in
single-brand retail trading, stood at US$ 194.69 million, according to the
Department of Industrial Policy and Promotion (DIPP).

Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83
million for opening 50 premiums watch outlets Helios in next five years to attain a
sales target of US$ 87.31 million. "We are looking to open Helios outlets in
Mumbai, Delhi, Hyderabad, Kolkata, Chennai, Pune, Ahmadabad etc. in next 12
months," said Ajoy Chawla, Vice President (Retail), Titan.

British high street retailer, Marks and Spencer (M&S) plans to significantly
increase its retail presence in India, targeting 50 stores in the next three years.
M&S currently operates 17 stores in India through a joint venture (JV) with
Reliance Retail.

Bharti Retail, owner of Easy Day store—supermarkets and hyper marts—plans to

invest about US$ 2.5 billion over the next five years to add about 10 million sq. ft.
of retail space in the country by then, according to a company spokesperson.

Source: http://www.ibef.org/industry/retail.aspx

12
COMPANY PROFILE

Company : Reliance Retail

Subsidiary Company : Reliance Trends

Founded : 2007

Headquarters : Bangalore

Chairman and Managing Director : Shri Mukesh Ambani

Stores at Bangalore city : Reliance Trends at Mantri mall, Richmond

Road and Jayanagar 

The Apparel, Luggage and Accessories division of reliance retail has

announced the launch of their first Apparel specialty store “Reliance Trends”.

All the 3 Reliance Trends stores located at different places across

Bangalore offer some of the best Indian and International brands with each
store’s area of more than 15,000sq.ft. Of shopping area, and has been designed
and furnished by the best of the international design agencies to offer a high
style and lavish experience to the Indian consumer.

13
Reliance Trend

It is specially apparel store that sell men, women and children’s garments.
The store will carry the best of national and international brands like john players
peter England, Indigo nation, Wrangler, Reebok and lee apart from in-house
brands. The store layout is to compliment the evolving taste and preference of
fashion savvy consumer, giving them an opportunity to view shop with well
trained customer service associates, to compliment, providing employment to so
many people and planning to launch may new store

Major subsidiaries and associates

On 31 March 2013, the company had 123 subsidiary companies and 10 associate
companies.

 Reliance Retail is the retail business wing of the Reliance Industries. In

March 2013, it had 1466 stores in India. It is the largest retailer in India.
Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out,
Reliance Digital, Reliance Wellness, Reliance Trends, Reliance Auto zone,
Reliance Super, Reliance Mart, Reliance I Store, Reliance Home Kitchens,
Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance
Retail brand. Its annual revenue for the financial year 2012–13 was 108
billion (US$1.6 billion) with an EBITDA of ₹780 million (US$12 million).[7][42]
 Reliance Life Sciences works around medical, plant and industrial
biotechnology opportunities. It specializes in manufacturing, branding, and
marketing Reliance Industries' products in bio-pharmaceuticals,
pharmaceuticals, clinical research services, regenerative medicine,
molecular medicine, novel therapeutics, bio fuels, plant biotechnology, and
industrial biotechnology sectors of the medical business industry.
 Reliance Institute of Life Sciences (RILS) established by Dhiru bhai Ambani
Foundation, is an institution offering higher education in various fields of
life sciences and related technologies.
 Reliance Clinical Research Services (RCRS), a contract research organization
(CRO) and wholly owned subsidiary of Reliance Life Sciences, specializes in

14
 the clinical research services industry. Its clients are primarily
pharmaceutical, biotechnology and medical device companies.
 Reliance Solar, the solar energy subsidiary of Reliance, was established to
produce and retail solar energy systems primarily to remote and rural
areas. It offers a range of products based on solar energy: solar lanterns,
home lighting systems, street lighting systems, water purification systems,
refrigeration systems and solar air conditioners. Merged content from
Reliance Solar to here. See Talk: Reliance Industries Merge proposals.
 Reliance Jio Infocomm Limited (RJIL) previously known as Infotel
Broadband is a broadband service provider which gained 4G licenses for
operating across India. Sandip Das, former CEO of Maxis Malaysia, is the
current group president of Reliance Jio Infocomm.

Employees
As on 31 March 2013, the company had 23,519 employees of which
1,159 were women and 83 were employees with disabilities. It also had 29,462
temporary employees on the same date. As per its Sustainability Report for 2011–
12, the attrition rate was 7.5%. But currently, the same aeration rate has gone up
to 23.4 % in 2015 as per latest report released within the organization.
In its 39th Annual General Meeting, its Chairman informed the shareholders of
the investment plans of the company of about ₹1500 billion (US$22 billion) in
next three years. This would be accompanied by increasing the staff strength in
Retail division from existing strength of 35,000 to 120,000 in next three years and
increasing employees in Telecom division from existing 3,000 to 10,000 in 12
months

15
 STATEMENT OF OBJECTIVES

PRIMARY OBJECTIVES OF THE STUDY

A study on impact of merchandising products on the

consumers’ buying choice with reference to Reliance Trend

 To identify the impact made by the modern promotional techniques

(signage’, posters etc.,) along with the traditional visual merchandising
strategies (Lighting, design layout preference, product display and
cleanliness) in consumers’ buying decision.

SECONDARY OBJECTIVES OF THE STUDY

Though the primary objective of the study is to study

the impact of visual merchandising in relation to consumer buying decision the
secondary objective of the study is to acquire the knowledge on over all function
of Indian retail industry and its operations by observing a retail outlet – RELINCE
TREND db city Bhopal

16
 LITERATURE REVIEW

VISUAL MERCHANDISING – AN OVER VIEW

Visual merchandising is the activity of promoting the sale of
goods, especially by their presentation in retail outlets. This includes combining
products, environments, and spaces into a stimulating and engaging display to
encourage the sale of a product or service. It has become such an important
element in retailing that a team effort involving the senior management,
architects, merchandising managers, buyers, the visual merchandising director,
designers, and staff is needed.

Many elements can be used by visual merchandisers in

creating displays, including color, lighting, space, product information, sensory
inputs such as smell, touch, and sound as well as technologies such as digital
displays and interactive installations.

Purpose
Retail professionals display to make the shopping experience more comfortable,
convenient and customer friendly by:

 Making it easier for the shopper to locate the desired category of products
and merchandise.

 Making it easier for the shopper to handpick the products.

 Making it possible for the shopper to co-ordinate & accessorize.

 Informing about the latest fashion trends by highlighting them at the

strategic locations.

17
VM helps in:
 Educating the customers about the product/service in an effective and
creative manner.

 Establishing a creative medium to present merchandise in 3D environment,

thereby enabling long lasting impact and recall value.

 Setting the company apart in an exclusive position.

 Establishing linkage between fashions, product design and marketing by

keeping the product in prime focus.

 Combining the creative, technical and operational aspects of a product and

the business.

 Drawing the attention of the customer to enable him to take purchase

decision within shortest possible time, and thus augmenting the selling
process.

18
 VISUAL MERCHANDISING STRATEGIES
FOLLOWED AT RELINCE TREND

A Plano gram allows planning of the arrangement of merchandise on a

given fixture configuration to support sales through proper placement of
merchandise by Style, Option, Size, Price points, etc. It also enables a chain of
stores to have the same merchandise displayed in a coherent and similar manner
across the chain.

At Reliance trend they used the proper combination of each of these

elements to support ease of applicability to the consumer and also increasing
selection & enhancing the merchandise display in a neat and organized manner.

GIVING MERCHANDISE THE FOCAL POINT

At Reliance trend they showcased the major fast moving products within
the overall display area in a way that no prospective consumer will miss a product
that they were looking for. And in the entry stage itself they displayed a proper
map of the shop stating the brief description of products available in each floor
along with information for rest room and customer desk areas. This helps in
educating the consumer about the detailed products and saves their time from
unwanted enquiries also helps them to engage more on their shopping activity

19
USING THE RIGHT CHOICE OF COLORS

Color is one of the most powerful tools in the Visual Merchandising

segment. It is a visual perceptual property. Colors can be associated with
emotions, special occasions and gender. It attracts attention and pulls more
customers into the store. At Reliance trend they utilized the major advantage of
this factor and used it in the entire store for the arrangement of products.

CLEANLINESS
Neat and clean arrangement is the foundation of an inviting a successful
visual display. A beautiful display can be ruined by a cracked sign holder or an
unclean display environment. In big bazaar I noticed that they took enormous
effort in cleaning the floor and followed an effective cleaning schedule of
showcases and display fixtures.

20
CONCEPTUALIZATION

In conceptualizing the study, I have attempted to build relationship

between key variables i.e., visual merchandising (independent variable) and
buying behavior (dependent variable). According to the literature review, I came
to know that lighting, design layout, product display and cleanliness are the main
variables of visual merchandizing. It is also necessary to examine the relationship
between two key variables and other variables influenced on dependent variable.
This would enable me to interpret the findings in a more comprehensive manner.
The conceptual model that has been developed indicating their relationship is
given below

Conceptual Model

Lighting

Design Layout Visual Buying

Merchandizing decision
Behavior
Product
Display

Cleanliness

21
RESEARCH METHODOLOGY

DATA COLLECTION

The nature of research design chosen by me is almost a descriptive one.

So, as far as possible attempt was made to gather primary data. In that context, a
detailed observation criterion was administrated, facilitating the observations
process. The primary research was carried out in RELIANCE TREND – DB CITY,
Bhopal. And information was collected from customers who were purchasing
products from the supermarket at the time of the study. Additionally, secondary
data for conceptualization and operationalization of the matters and other
purposes were also utilized through textbooks and web sites etc.

Data were collected through observations from 1000 consumers from four
different age groups i.e. 20-30, 30-40, 40-50, 50-60 who walked in to the store at
the time of study. There were no any rejected forms due to field investigation and
personally filled criterion forms with observation. Most of the data pertaining to
this study have been collected from customer sample drawn from randomly.

DATA ANALYSIS PROCEDURE

Descriptive method was used in presenting and analyzing the data.
Descriptive tools such as frequency counts and percentages calculated for the
statements on the criterion form in order to determine the impact of in store
promotions on buying decisions.

22
LIMITATIONS OF THE STUDY:
Apart from visual merchandising there is the influence of other mediums
like television, newspaper and radio used for communicating the sale at RELIENCE
TREND – this has got the strong influence in buying decision.

Since i chose the busy retail out let like RELIENCE TREND and that too during
the period of sales its bit tough for me to do the observations in a detailed
manner.

How strong a marketer/ promoter is trying to promote the product if it is not

needed for the customer then the customer won’t be a prospective customer for
that marketer

23
DATA INTERPRETATION
Impact of visual merchandising on consumer buying behavior across the age
groups

AGE GROUP 20-30 30-40 40-50 50-60 IMPACT

OF VM

FREQUENCY 168 599 135 98 1000

PERCENTAGE 16.8 59.9 13.5 9.8 100

Factors involved in Visual Merchandsing – based on time

spent

19% 19%

SIGNAGES

POSTER

THEMED PRODUCT
31% 31% DISPLAYS

INSHOP PROMOTIONS

24
VISUAL MERCHANDIZING AND CONSUMER’S
BUYING BEHAVIOR.

This study focused on the visual merchandizing and consumer buying

decisions. The main objective of this study was to examine the influence emerged
from visual merchandizing and the usage of new media’s into the VM such as
postages, signage’s themed displays for influencing consumer’s buying decisions.
The finding shows that influence emerged from visual merchandising on
consumer’s buying decisions is strong. From this it is clearly shown that highest
mean value of visual merchandising is 59.9 from the age group of 30 -40 shows
that people belonging to this group is highly attracted towards VM. It was
represented in strongly influenced score category.

However, visual merchandising consists of four variables such as lighting,

design layout, product display and cleanliness, all of those variables, have
considerable influence in selecting specific supermarket outlet. The usage of new
mediums in a unique way has a strong influence in buying decision. The majority
of respondents (31 & 30.5) mentioned that posters and product displays majority
themed displays in supermarkets outlets strongly influence on their buying
decisions. In the same time, 30% of respondents have indicated that product
display strongly influence on their buying decisions. Moreover, the frequency of
product display is 310. It is more close to the higher level of strongly influenced
score category. The findings show that 30% of respondents have indicated that
posters are strongly influencing their store buying behavior. The smallest value
equal to 19 that represents the moderately influenced score category. Most of
25
the customers mentioned that in-shop promotions are one of the most important
factors of attractive in-store environment of supermarket outlets. According to
the findings, 191 respondents have indicated in-shop promotions will affect in a
strong and moderate way respectively on their buying decisions. Though signage
has low impact actually it helps in gaining the passer-by attraction and from
results it is also clearly shows that in-shop promotions and product displays holds
the consumers for a long time results to the buying decision. Therefore, the
quantitative figures show that visual merchandising has significant impact in
buying decisions

In addition to the in-store variables, most of consumers consider price of

goods, location, and customer service and parking facilities etc. When customers
are ranking the relative importance of factors affecting to the buying decisions,
most of customers have given first and second priority to visual merchandising as
it conveys them clearly what the product is and whom it is meant for also at the
same time it also informs the consumers about the offerings and discounts
associated with that product. Second and third largest amount of customers
mentioned price of goods and location of the outlets.

26
RECOMMENDATIONS

The research findings of present study have more practical orientation

and which is important for the marketers in supermarkets sector. Hence, the
study recommends the following.

1. Visual merchandising is the most important variable in in-store

environment among the tested variables. It can significantly influence on
consumer’s buying choice. Therefore, application of more attractive visual
merchandising materials in their promotions will help to obtain better
results. The lighting, Design layout, themed displays and cleanliness are the
key elements of visual merchandizing programs.
2. Most of customers are willing to purchase products from 6.00p.m. To
9.00p.m. In weekdays and 10.00a.m. To 8.00p.m. During weekends.
Therefore, visual merchandisers can pay special attention to make
attractive environment in the supermarket premises and make action to
control the rush condition.
3. Spaces between shells (Passage), cashier counters layouts, height of shells,
no. of Gondola, number of impulse counters, sanitary facilities, height of
roof are key variables of design layout that helps to make customer
relaxation, convenience to selection of products, reduce average waiting
time and encourage the impulse purchasing etc.
4. When designing the product display, Supermarket managers should pay
special attention on category layout, canola (Light ceiling), color separation,
lighting box, category name of product shells.

27
5. When planning for themed displays for special offers or for festive seasons,
the theme of the display and creativity should match the offer for example
when planning for valentine special it’s very important that pick color
should be used for the display
6. Damaged items on the shells and dust will make bad image towards the
supermarket outlets and design of floor tiles can make significance
influence to feeling of pleasure at shopping time.
7. Majority of customers respond to the lighting more positively. They
specially mentioned that lighting helps to select correct products, reduce
the time wasted and feel relaxation during the shopping tours. Therefore
managers can select appropriate lighting system that creates satisfaction of
psychological needs of customers.
8. The background music will also encourage customers to spend extra time in
supermarkets. However, it has low significance relative to the other
elements of in-store environment. It will help to encourage customers to
make impulse purchasing decisions in supermarkets. And also customers
will consider the shopping in such a supermarket is one of entertaining
exercise. The soft and classic music are highly recommended than other
type of music.

28
Visual Merchandising Affect In-Store Sales?

Visual merchandising means visual display of the store. When you

enter the store, you’ll most likely first get attracted to visual displays at the store.
This can include aspects like window displays, décor style, fixtures, and many
others that give a visual identity to the store.

Today, many retailers follow visual merchandising culture in their store

to maintain good brand image – using effective graphics and visual arts with the
aim to increase per square foot traffic to the store and boost sales. But, there are
both positive as well as negative ways in which your visual merchandising affects
your in-store sales. Hence, as a retailer you need to choose the correct type of
store layout to increase sales per square foot.

29
Let’s take a close look on factors that affects
the most:
1. WINDOWS DISPLAY

A store window is an ideal to bring in new customers as well as existing

customers which allows you to display products that are newly arrived, best-
selling products, promotional products, and even create a brand image. Ensure
you focus more on this aspect of visual merchandising and frequently update
them, if you want to increase traffic and sales for your store. The smart way is to
create different themes for different windows that portray different stories based
on whatever theme is inspirational at that time.

Few tips
– It is always suggested to be unique with your window displays as consumers get
attracted more to the one’s they have never seen before. Research well and if
possible consult other retailers having the same interest and come up with a
unique one. The best ideas may come out from what they have tried and tested.

– If you have a furniture shop, and arranging a window display that makes it easy
for customers to envision how the same product could be set-up in their own
home will allow you convert those window shoppers to actual customers in no

time.

30
2. COLORS

Color is considered to be the key component of visual

merchandising that can influence consumer’s choices. Firstly, it will help your
store attract attention and encourage consumers to quickly step into the store.
For example, if your store wants to primarily attract customers, then using colors
like red and orange at the entrance tend to stand out and draw the eye, while
cool colors like blue and green will keep your store calm that can be used in the
interiors. Secondly, color can also create an emotional effect on customers which
can portray a good meaning about the products you offer.

Few tips
– If your store is new in the market or you are looking to increase sales per square
foot, use vibrant colors like red, brown at the entrance – adding some meaningful
designs that will make consumers curious to know about your offering and divert
them to your store.

– If you are nature-friendly, willing to create an emotional impact, or wanting to

have more focus on products; use plain light colors like green, blue, white that
will evoke feeling of excitement as well as keep consumers attention focused on
the main color and products used in the display.

31
32
3. LIGHTING

Lighting is the most important aspect of visual merchandising, if done

correctly it will aid in selling the merchandize and if not it can create a negative
impact, even if they are worth lakhs. You should maintain proper proportion of
lights and shadow in your displays because excess in either of those may hide
product details or may even change the color of the products. This will create a
complete different appearance of your product and you lose sales. Therefore,
retailers should ensure use of proper lights (spotlights mostly preferred) to focus
on key areas or key products to make more sales and business for your store.

Few Tips
– If you want calm and cool generating lighting, then the color fluorescent is an
ideal and cost effective choice for retailers. They offer the best color rendering
effect and are available in various colors that can generate cool, warmth, or any
other desired effect.

– If you have store selling apparel with dim lightings all over, may cause retailers
shop less. This is because your dim lightings create stress in their shopper’s mind
who will not want to wait for long in your shop. Instead, arranging for spotlights in
your display area will throw more focus on the product and make them look rich
and tempting, encouraging the customer to buy the product on-the-go.

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4. SIGNAGE

A signage will act as a salesperson, hence being an advantage it cans

open doors – bringing in more sales opportunity for your store. Infusing proper
signage is crucial in your visual merchandising, as this will allow customers easily
reach their desired destination or location by following the display given on it. By
doing this your customers will not have to wait for a salesperson who may be
busy attending other customers. And, making customers wait means you will
automatically lose sales and reduce customer service. Ensure you install proper
signage for your store that should attract customer’s attention within 10 seconds
since they enter your store.

Few tips
– If you have a store dealing in computer accessories and phones, and if you stock
them on shelves or racks with no display your customers will have to go to each
rack and check products from close. Now, if they land at a wrong rack with no
salesmen available, they will get annoyed and tired of roaming around your store
and in the end leave your store. Therefore, create a theme and organize products
infusing proper signage to allow easy and quick reference to your customers.

– If you a big store selling multiple products, then without signage your customers
will get lost. You may be having the product the customer is looking for but just
because they could not find it you lose a sale. Ensure that you create proper
signage installed at various part of your store that will help customers easily reach
out to the product they intend to purchase.

– If you have a store selling creative products handmade pots, then infusing a
funky signage at the entrance using creative phrases will attract customer’s eye
and divert them to your store. This way you increase brand value, and sales for
your store.

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5. Fixture and Fittings
Another important aspect of visual merchandising that affects in-store sales is the
fixture and fittings. A level of elevation up or down in your fixture and fittings will
create a bad effect on your sales per square foot. You may have multiple displays
set in your store, but with inaccurate fixture and fittings may annoy your
customers which in turn will directly affect sales. Therefore, it is important that
you first create a theme and then arrange the fixture and fittings for your store.

Few tips

– If you have an apparel store or a candy shop, then it makes sense when you
display products on shelves that are of eye level, or slightly above. This will offer
the best position to display the product as it directly catches customer’s eye
making them stop to look at it.

– For those who sell products that can be paired up – like shirts, trousers, shoes, it
will be an effective idea to arrange fixture and fittings keeping them close to each
other which will save customers time and effort to walk around the store in order
to complete the outfit they require.

– You should also focus more on displays located close to the tills as this can be
your highest sales generating area. Having a proper display in this area will
encourage customers add items to their shopping cart along with their initial
purchases.

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6. SHOP INTERIOR
Shop interior is a significant part of merchandising because designing a
modern retail store can affect the profit and image of the brands. Designing a
shop interior is the art of planning because it is a creative process. It is the art of
drawing, composing and selecting colors, materials, furnishings and accessories to
enrich the design of a store interior. The main purpose is to create an attractive
shopping environment and to enhance the presentation of merchandise.
To create a distinctive image should be the main task of a designer because such
an image will create a brand recognition which will be immediately perceived by
the consumers.

Today’s competitive retail environment, fashion retailers struggle in order

to increase their sales and to carry their brands to the wider masses. The best way
to achieve this purpose is to consider the architectural and interior design. The
exterior of the buildings and their interior designs can help to be recognized of
the fashion brand.

As a customer response to these new building, we, sometimes, see

pictures of long queue down the street the night before these buildings opened.
There are many brand loyalists who sleep overnight on the street and their
purpose is to be the first to see the new designs.

Store image and shopping environment is a significant determinant to

spend time in the store and to spend more money than planned. On the other
hand, retail store elements such as color, lighting and visual merchandising have
an immediate effect on the buying decision making process.

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Visual Merchandising helps in
* Educating the customers about the product/service in an effective and creative
way.
* Establishing a creative medium to present merchandise in 3D environment,
thereby enabling long lasting impact and recall value.
* Setting the company apart in an exclusive position.
* Establishing linkage between product, product design and marketing by keeping
the product in prime focus.
* Combining the creative, technical and operational aspects of a product and the
business.
* Making it easier for the shopper to locate the desired category and
merchandise.
* Making it easier for the shopper to self-select.
* Making it possible for the shopper to co-ordinate & accessorize.
* Informing about the latest trends or offers by highlighting them at strategic
locations.
* Publicises the business.
* Publicises the product.
* Lays a foundation for the future sales.
* Builds prestige.
* Supports popular trends.
* Establish, promote, and enhance the store's visual image
* Harmonies pure business interest with aesthetics.
* Arouses Interest.
* Creates Desire.
* Causes decision to buy.
* Takes Advantage of highest profile location.
* Directs and redirects common customer traffic patterns.
* Introduce and explain new products.
* Encourage the shopper to enter the store.
* Entertain customers and enhance their shopping experience.

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Conclusion

From the study it is clearly understood that the arrangement of

the displays in an attractive manner initiates new interest about the products in
the minds of the customer. By designing a proper themes and activating changes
frequently one can thus be a proactive retailer.

 With globalization and the retail boom, visual merchandising is

growing in leaps and bounds. It is not simply concerned about decorating a store
beautifully; but must also symbolize the brand keeping the target audience in
mind.

By doing this project am not only learned about the impact of

visual merchandising but also it opened the door for me to learn about many
aspects in sales and retail including buying behavior of consumers, salesmanship
etc., I once thank mi institute and also Reliance Trend for providing training of this
kind.

The findings of this study can be summarized as:

 Visual merchandising starts with the store design to reflect the products in
the store and window display. The purpose is to create a warm, friendly,
and approachable atmosphere for customers.
 To predict future merchandising trends is important.
 Majority of customers respond to the lighting more positively. Visual
merchandisers should select appropriate lighting system that creates
satisfaction of psychological needs of customers.
 Sophisticated Visual Merchandising requires convenient lighting combined
with display themes.

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 Most people give buying or shopping decision by looking at the shop’s
ambience and visual display.
 Store window displays are the most important tool to draw people into the
store, because they are a great way to highlight certain types of
merchandise.
 Graphics and Signage are cost-effective and efficient tools for delivering a
message or inform the customer about the products available in the
department store.

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