I

internship report

TECHNIQUES OF RETAILING DONE BY A VISUAL MERCHANDISER

SUBMITTED TO: Dr. VINIT VERMA

(HOD)
FOOTWEAR DESIGN AND
DEVELOPMENT INSTITUTE

UNDER THE GUIDENCE OF

EXTERNAL INDUSTRIAL GUIDE

AMIT KUMAR RAGHWANSHI

VISUAL MERCHANDISER
U-TURN CHHINDWARA
INTERNAL PROJECT GUIDE
Dr. VINIT VERMA
HOD RETAIL DEPT.
FDDI CHHINDWARA

MOHAMMAD SAAD ATHAR

M.B.A.{RFM}BATCH [2022-2024]
 Office No.303, 2nd Floor, Heritage Building, Opp Hukum Chand Ghanta Ghar, Mg Road,
Indore-452001

Date: -11/08/23

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mohammad Saad Athar, a student of FDDI Chhindwara,

has successfully completed his internship at U-turn Chhindwara. Under "Visual
Merchandiser".
The duration of his internship was from 15th June 2023 to 30th July 2023.
During his internship, we found him sincere and hardworking, and we wish him
all the best in his future endeavors.

Authorized by Operation Manager

 Dedication

This project is especially dedicated to the teachers who helped and

guided us to successfully complete this project work.
Also, I would like to dedicate this project to my dear father, who has
been a wonderful supporter until my research was completed, and to
my beloved mother, who has been encouraging me for months.

ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who

gave me the possibility to complete this report. Special thanks are
due to my HOD Dr. VINIT VERMA SIR whose cellulating suggestions
and encouragement helped me in RESEARCH TECHNIQUES OF
RETAILING DONE BY A VISUAL MERCHANDISER and in writing this
report. I also sincerely thanks for the time spent proofreading and
correcting my many mistakes.
I would also like to acknowledge with much appreciation the crucial
role of the staff in U-turn, who gave me a permission to use the lab
and the machine and to design the drawing and giving a permission
to use all the necessary tools in the STORE.
Many thanks go to the whole lecturer and supervisors who have
given their full effort in guiding the team in achieving the goal as well
as their encouragement to maintain our progress in track. My
profound thanks go to all classmates, especially to my friends for
spending their time in helping and giving support whenever I need it
in RESEARCH my project.
 DECLARATION

MOHAMMAD SAAD ATHAR student of footwear design and

development institute, Chhindwara, hereby declare that this project
report entitled “A STUDY ON TECHNIQUES OF RETAILING DONE BY A
VISUAL MERCHANDISER,” is a Bonafede record of work done by me
3RD SEM research project work of MBA(RFM) program and all
contents and facts are prepared and presented by me without any
bias. I also declare that it has not previously formed the basis for the
award to me for any degree/diploma associate ship, fellowship, or
other similar title, of any Institute/Society.

CERTIFICATE

This is to certify that MOHAMMAD SAAD ATHAR student of

Footwear Design & Development Institute as completed his project
titled “A STUDY ON TECHNIQUES OF RETAILING DONE BY A VISUAL
MERCHANDISER” under our guidance and supervision for submission
towards partial fulfilment of the Degree of Masters in the field of
Retail Fashion Merchandising granted by Footwear Design &
Development Institute Chhindwara.
 Abstract
To enhance store atmosphere and attract customers, retailers use
and implement different techniques such as visual merchandising.
These techniques allow retailers to differentiate their offerings from
competitors.
The purpose of this thesis is to examine the relationships and
effectiveness of different selected visual merchandising techniques
on young customers’ impulse behaviour.
The result of the study shows that there is a directional relationship
between young customers’ impulse buying tendency and two visual
merchandising techniques: in- store product display and product
shelf presentation.
This thesis gives insights to retailers as to which visual merchandising
techniques can significantly influence young customers’ impulse
buying behaviour.
This study also provides information about the techniques that
should be part of retailers’ marketing and retailing strategic planning.
Contents
Use Of Space..........................................................................................................................................8
Traffic Flow............................................................................................................................................9
Storage Versus Selling..........................................................................................................................10
Value of Space per Square Meter........................................................................................................11
Sales Per Linear Metre Used For Shelf Space.......................................................................................12
Departments Space.............................................................................................................................13
Sampling..............................................................................................................................................16
Types of Audit Sampling..................................................................................................................16
Window Displays.................................................................................................................................17
Internal Display Locations........................................................................Error! Bookmark not defined.
Symmetry / Asymmetry.......................................................................................................................17
Props & Mannequins...........................................................................................................................18
Tangible Psychology.............................................................................................................................19
Use Of Brand Name/Logo....................................................................................................................20
Use Of Mirrors.....................................................................................................................................21
Signage................................................................................................................................................22
Odd vs Even Pricing.............................................................................................................................23
Packaging Design.................................................................................................................................24
Open/Closed Sight Lines......................................................................................................................25
Intangible Psychology How Customers are Influenced By Senses........................................................26
Tidiness................................................................................................................................................27
Atmospherics.......................................................................................................................................28
REFERENCES........................................................................................................................................29
Use Of Space
Its ultimate purpose is to use the retail space to generate more sales. A visual merchandiser is the
person behind the magic. They combine marketing principles, retail merchandising knowledge, and
creativity to use the space and layout of the store to present the store's inventory in a positive way.

The amount of space between products can

convey volumes. In retail, customers often equate space with luxury, which is why it's common for
high-end brands to put a lot of space between merchandise when displaying them in-store.

In retail when space is allocated sales and performance metrics are used to create a algorithm for
space allocation giving the highest performing brands/product categories more space and a prime
location in the store. Products in the store can move around frequently based on season and sales
metrics.
Traffic Flow

With dwell times analysis you can learn how long people spend in each part of the store. This can be
used to identify problems with people waiting too long for service. People counting gives an
understanding of how many customers are in the store at given times

Traffic flow analysis in retail

While the term "traffic flow" refers mostly to the movement of vehicles and people on highways, the
same idea applies to explaining the movement of people in and out of retail stores as they make
purchases. Traffic flow analysis relies on computer vision and machine learning algorithms to extract
meaning from video camera feeds and provide analytics such as heat maps, dwell times, people
counting and pathway analysis to help retailers understand customer behaviour.

Retailers can benefit from traffic flow analysis in several ways. Let’s explore how retail store owners
can utilize this technology to optimize their store performance and increase daily sales.

 Store layout optimization

 Improved customer service
 Personalized customer approach
 Measurement of the effectiveness of campaigns
Storage Versus Selling

Storage:

1. Sentimental Value: If the items hold sentimental value or are family heirlooms, you might be
more inclined to keep them for emotional reasons.

2. Future Use: If you anticipate needing these items in the future, storing them can save you
money and effort compared to repurchasing them later.

3. Investment Potential: Some items, like antiques, collectibles, or certain commodities, might
appreciate in value over time. Storing them could be a way to potentially make money in the
long run.

4. Seasonal Items: Items that are only used seasonally (e.g., holiday decorations, winter
clothing) might be worth storing to avoid re-purchasing them each year.

Selling:

1. Financial Gain: Selling items you no longer need can provide you with extra cash that could
be used for more pressing needs or investments.

2. Decluttering: Getting rid of unused items can free up physical space and reduce clutter in
your living environment, leading to a more organized and stress-free space.

3. Maintenance Costs: Storing items often involves maintenance costs like storage fees, proper
packaging, and occasional maintenance to prevent deterioration.

4. Changing Trends: Items that are currently in demand might not retain their value over time
due to changing trends. Selling them when they are still valuable can be a wise decision.

5. Opportunity Cost: Holding onto items that aren't being used ties up your resources,
preventing you from potentially using that space for something else.

To make the decision between storage and selling, consider the value these items hold for you
emotionally, practically, and financially. Assess the potential benefits of selling them now versus
keeping them for the future. If you're unsure, you could also explore options like temporary storage
while you make a
Value of Space per Square Meter

1. Sales per square foot

Sales per square foot is your store’s average revenue for every foot of sales space, including non-
selling space such as your stock room, fitting room, and receiving areas.

To calculate it, divide your sales by the store’s total square feet of sales space.

Your sales per square foot tells you how efficient you are with the use of sales space, and it helps you
make smarter merchandising, inventory, and sales decisions.

2. Conversion rate

The conversion rate is the proportion of store visits to the number of customers who make a
purchase.

To calculate it, divide the number of sales transactions by gross traffic.

Knowing your conversion rate helps you fine-tune your sales, marketing, and even staff-training
strategies. For example, if you want to know if you should keep running a promotion, compare its
conversion rate with a non-promotional period to gauge its effectiveness.

3. Sell-through rate

This is the percentage of units sold versus the number of units that were available to be sold.

To calculate this metric, use this formula: (number of units sold / beginning inventory) x 100.

You can use sell-through to evaluate a product’s performance and determine if you should continue
to stock it (or whether you should only carry it in certain seasons).

4. Gross margin return on investment (GMROI)

GMROI measures your profit return on the funds invested in stock. Basically, for every dollar you
spend on inventory, how many dollars do you get back?

The formula for figuring out your GMROI: gross margin / average inventory cost.
Like sell-through, GMROI is a good indicator of product performance, and it can help you make
decisions about product marketing, ordering, and sales.
Sales Per Linear Metre Used For Shelf Space
A retail store with wall units and other shelf space may want to use the sales-per-linear-foot
of shelf space to determine a product or product category's allotment of space.

Total Net Sales ÷ Linear Feet of Shelving = Sales per Linear Foot

Sales per linear meter is a common retail metric used to measure the efficiency of shelf space
utilization in stores. This metric calculates the revenue generated for every meter of shelf space
allocated to a particular product or category. It's an important indicator for retailers to assess the
profitability and popularity of different products in relation to the space they occupy. Here's how you
can calculate and interpret this metric:

Calculation:

Sales per Linear Meter = Total Sales Revenue / Total Linear Shelf Space Used

Interpretation:

1. Efficiency of Space Utilization: This metric helps retailers understand how well their shelf
space is being used. Products with higher sales per linear meter are utilizing the space
effectively, whereas those with lower values might need reevaluation.

2. Popular Products: Products with higher sales per linear meter are likely more popular and in
demand among customers. They are strong contenders for prime shelf locations.

3. Identifying Underperformers: Products with lower sales per linear meter might not be
resonating with customers as expected. Retailers might need to reconsider their placement,
pricing, or marketing strategies.

4. Optimizing Assortment: This metric aids in making decisions about which products to
prioritize and which to potentially phase out. It guides assortment planning to ensure the
most profitable items receive optimal shelf space.

5. Category Comparison: By comparing sales per linear meter across different categories,
retailers can identify which product categories are performing well and which might need
adjustments.

6. Pricing and Profitability: Products with high sales per linear meter might justify a higher
price point due to their popularity. Conversely, products with lower sales might need to be
discounted or repositioned.

7. Demand Fluctuations: Monitoring changes in this metric over time can help retailers spot
trends and adapt to shifts in customer preferences and demand.

8. Space Allocation Strategy: Retailers can use this metric to allocate shelf space strategically,
ensuring that the most profitable products receive prominent placement.

It's important to note that while sales per linear meter is a valuable metric, it should be used in
conjunction with other metrics and qualitative insights to make informed decisions. Additionally, the
ideal sales per linear meter can vary based on the type of store, the product category, and the overall
business strategy.
Departments Space

To allocate space within different departments of a retail store. Efficient space allocation is crucial for
maximizing sales, improving customer experience, and ensuring a well-organized shopping
environment. Here are some steps to consider when allocating space within different departments:

1. Understand Your Customer Base: Identify your target audience for each department. Different
customer demographics and preferences should influence the space allocation and product
placement.

2. Analyse Sales Data: Review historical sales data for each department. Identify which products and
categories are top sellers, which are underperforming, and which have seasonal trends. Allocate
more space to high-performing items.

3. Prioritize Profitable Products: Give priority shelf space to products with higher profit margins and
faster turnover rates. These items contribute more to your bottom line.

4. Plan by Category: Organize products within each department into categories. Allocate space to
each category based on its contribution to overall sales. For example, allocate more space to the
most popular clothing styles in a fashion department.

5. Consider Seasonal Variations: Adjust space allocation based on seasonal demand. For instance,
allocate more space to holiday decorations during the festive season.

6. Optimize Shelving and Displays: Use a combination of shelving, racks, tables, and other display
fixtures to showcase products effectively. Consider the size, shape, and visibility of items when
planning your displays.

7. Plan for Impulse Purchases: Allocate space near checkout counters for impulse-buy items like
snacks, magazines, and small accessories. These can help increase your average transaction value.

8. Monitor Inventory Levels: Regularly monitor inventory levels and adjust space allocation
accordingly. Avoid overcrowding shelves, as it can make the store look cluttered and discourage
browsing.

9. Test and Iterate: Experiment with different space allocations and track the results. Be open to
adjusting based on customer feedback, sales data, and changing trends.

10. Focus on Customer Flow: Plan space allocation in a way that guides customers through the store
logically. Create pathways that encourage exploration while ensuring easy navigation.

11. Visual Merchandising: Utilize visual merchandising techniques to create visually appealing
displays that highlight products and encourage sales. Use colors, lighting, and signage effectively.

12. Flexibility: Design your space allocation strategy to be flexible. Trends and customer preferences
can change, so be prepared to adapt your allocations accordingly.

Remember that the optimal space allocation strategy can vary based on the type of retail store, the
target audience, and the specific product mix. Regularly assess the performance of each department
and adjust your space allocation strategy to ensure the best possible shopping experience and
financial outcomes.
Allocation of Space for Fitting Rooms
Allocating space for fitting rooms in a retail store is essential for providing customers with a
comfortable and convenient experience while trying on clothes. Here are some factors to consider
when planning the allocation of space for fitting rooms:

1. Determine the Number of Fitting Rooms: Calculate the number of fitting rooms needed based on
the store's size, customer traffic, and average wait times. Consider factors such as peak hours,
weekends, and special promotions that might affect demand.

2. Size and Layout: Ensure that each fitting room is spacious enough for customers to comfortably try
on clothes. A typical fitting room size can range from 6 to 8 square meters (65 to 85 square feet). The
layout should accommodate a changing area, full-length mirror, hooks or hangers, and a seat.

3. Accessibility: Allocate space for fitting rooms that are easily accessible, especially for customers
with mobility challenges. Ensure that the fitting rooms are compliant with accessibility standards.

4. Proximity to Merchandise: Place fitting rooms close to the corresponding departments or clothing
racks. This makes it convenient for customers to grab different sizes or styles if needed.

5. Queue Area: Allocate space for a queue or waiting area outside the fitting rooms, especially during
busy times. This prevents congestion and provides customers with a place to wait.

6. Men's and Women's Separation: If your store offers clothing for both men and women, consider
allocating separate fitting room areas for each gender to ensure privacy and comfort.

7. Family-Friendly Spaces: If your target audience includes families, consider having a fitting room
that can accommodate parents with children. This can enhance the shopping experience for families.

8. Lighting and Mirrors: Ensure that each fitting room is well-lit, with appropriate lighting that
accurately represents the colour of the clothes. Full-length mirrors are crucial for customers to see
how the clothes fit.

9. Privacy and Comfort: Use high-quality curtains or doors to provide privacy. Consider adding
comfortable seating inside the fitting rooms for customers to sit while trying on shoes or adjusting
clothing.

10. Technology Integration: Incorporate technology like RFID tags or digital mirrors to enhance the
fitting room experience. These technologies can provide additional product information, suggest
complementary items, or allow customers to request different sizes or colours.

11. Maintenance and Cleanliness: Allocate space for a storage area for clothes waiting to be
returned to the sales floor after customers have tried them on. Keep the fitting rooms always clean
and well-maintained.

12. Feedback Collection: Consider allocating space for a feedback area where customers can share
their thoughts about the fitting room experience. This can provide valuable insights for
improvement. Ultimately, the goal is to create fitting rooms that cater to customer comfort and
convenience. Regularly assess the performance of the fitting rooms based on customer feedback and
sales data and be willing to adjust the space allocation as needed.

Sampling

Sampling is a process in statistical analysis where researchers take a predetermined number of

observations from a larger population. Sampling allows researchers to conduct studies about a large
group by using a small portion of the population. The method of sampling depends on the type of
analysis being performed, but it may include simple random sampling or systematic sampling.
Sampling is commonly done in statistics, psychology, and the financial industry.

 Sampling allows researchers to use a small group from a larger population to make
observations and determinations.
 Types of sampling include random sampling, block sampling, judgment sampling, and
systematic sampling.
 Researchers should be aware of sampling errors, which may be the result of random sampling
or bias.
 Companies use sampling as a marketing tool to identify the needs and wants of their target
market.
 Certified public accountants use sampling during audits to determine the accuracy and
completeness of account balances.

Types of Audit Sampling

As noted above, there are several different types of sampling that researchers can use. These
include random, judgment, block, and systemic sampling.
Window Displays
Here are some key aspects and purposes of window displays:

1. Attracting Attention: - Window displays are designed to capture the attention of passersby and
draw them into the store. They often feature eye-catching designs, colours, and arrangements to
stand out from the surrounding environment.

2. Highlighting Products: - Window displays are an effective way to showcase specific products or
product categories. Retailers use them to promote new arrivals, seasonal items, or featured
merchandise.

3. Telling a Story: - Many window displays aim to convey a narrative or theme that aligns with the
brand's image or a particular marketing campaign. This can create an emotional connection with
customers.

4. Promotions and Sales: - Retailers often use window displays to announce ongoing sales, discounts,
or special promotions. Clear signage and compelling visuals can communicate these offers effectively.

5. Branding: - Window displays can reinforce a brand's identity and values. Consistent design
elements, such as logos and colour schemes, help customers recognize and remember the brand.

6. Seasonal Decor: - Businesses frequently update their window displays to reflect changing seasons,
holidays, or special occasions. This keeps the storefront fresh and relevant.

7. Creativity and Artistry: - Window displays provide an opportunity for creativity and artistic
expression. Visual merchandisers and designers often work on creating these displays, incorporating
various elements like lighting, props, and graphics.

8. Engagement: - Some window displays encourage interaction with the audience. This can include
interactive technology, like touchscreens, or displays that invite customers to take photos and share
them on social media.

9. Targeting Specific Audiences: - Window displays can be tailored to appeal to specific target
demographics, such as age groups, interests, or lifestyles.

10. Complementing Store Layout: - The design and content of window displays should complement
the overall layout and interior design of the store. They should provide a seamless transition from
the storefront to the shopping experience inside.
Symmetry / Asymmetry
There are two basic approaches to space elements on a page—designers can either lean toward a
more symmetrical arrangement of elements, or an asymmetrical one. In this guide, we’ll see how
symmetry and asymmetry work for design. We’ll cover the basic techniques, tips, and best practices
for each approach,

Something asymmetrical has two sides that don't match — it's uneven or out of
whack. If you know that symmetrical means that both sides of something are identical, then it
should be easy to learn that asymmetrical means the opposite: the two sides are different in some
way.

Props & Mannequins

Functional props: include anything that holds the merchandise such as mannequins, body forms or
fixtures. Decorative props: create a mood provide a setting for the merchandise and adds to the
attractiveness of the display. Structural props: support the functional and decorative props.
Tangible Psychology

Access to Tangibles is the function any time a behavior is reinforced by an individual engaging in
behavior to gain access to something physical. Tangibles can be toys, food, or even something that
doesn't seem very fun.

Let’s understand by an interesting example. Two people were fighting in the street. They were both
talking so loudly that everyone around them came out to see them. The example is a little ridiculous
but just as important!! Now, this scene will be surprised (unwanted) to both the person while it will
be interesting for the viewer. Now this suggests that what was seen was quite clear. Simply, Tangible
behavior means transparent dealings!!!
 Use Of Brand Name/Logo

When you’re considering all the factors that go into building a business, creating a logo might not
seem like a top priority.

“Maybe I don’t even need a logo at all,” a little voice is whispering in the back of your mind.

Don’t listen to that voice; he couldn’t be more wrong. Having a logo is an integral part of making
your brand a successful one – right up there with having high-quality products and positive referrals.

So, why is a logo important? Because it grabs attention, makes a strong first impression, is the
foundation of your brand identity, is memorable, separates you from competition, fosters brand
loyalty, and is expected by your audience.

Let’s take a deeper look at all these points below!

1. It Grabs Attention A logo can quickly grab viewers’ attention and communicate a company’s
core values in an interesting way. That short attention span – you know, the one that causes
consumers to judge your business by its appearance – can work to your advantage, if you
have a solid logo to speak for your company.
2. It Makes a Strong First Impression
A logo is a company’s first introduction to consumers. If designed well, it can pique the
interest of the public and invite them to learn more about the company; if not, you’ve just
alienated a potential customer base and basically tanked your business.
3. It's the Foundation of Your Brand Identity These elements will later translate from your logo
onto all your branding materials – letterheads, business cards, landing pages, you name it –
creating a concrete, marketable brand identity.
4. It's Memorable Your logo leads the horse (your audience) to water (your company).
Logos are a point of identification; they’re the symbol that customers use to recognize your
brand. Ideally, you’ll want people to instantly connect the sight of your logo with the
memory of what your company does – and, more importantly, how it makes them feel.
5. It Separates You from Competition A well-designed company logo can communicate
everything from the company’s background (professional, relaxed, fun) to their mission
(entertainment, efficiency, and innovation) through the right icon or proper font.
6. It Fosters Brand Loyalty Think about it: When you’re out shopping for workout gear and
suddenly spot track pants with the Nike swoosh, you’re instantly ready to buy. Why? Because
with Nike apparel, you know you’re in safe hands; Nike is a brand you trust. Trust is built on a
well-designed logo, and brand loyalty is quick to follow.
7. Your Audience Expects It And, last but not least:
Your logo is the first thing that your audience will look for when they see any
communications from your brand. It should be front and centre of all your marketing
materials such as business cards, flyers, advertisements, etc.
Use Of Mirrors

Mirrors can be an excellent addition to your clothing store, helping to enhance its aesthetic appeal,
increase sales and improve overall customer satisfaction. This article will explore five ways to use
mirrors to enhance your store and make it more attractive to customers.

1. Create Focal Points

Mirrors are a great tool to create focal points in your store. By strategically placing mirrors, you can
draw customers' attention to specific areas of your store, such as new arrivals or seasonal collections.
You can also use mirrors to create exciting displays that catch customers' eyes as they walk by. For
example, you can place mirrors at different heights to create a sense of depth.

2. Provide Self-Viewing Stations

Providing self-viewing stations in your store is a great way to encourage customers to try on clothes
and make a purchase. By strategically placing mirrors throughout your store, such as in fitting rooms,
near changing areas or at the end of clothing racks, customers can see how different outfits look on
them.

3. Enhance Lighting

You can use mirrored surfaces to enhance the lighting within your store. By reflecting natural or
artificial light, mirrors can make your store appear brighter and more welcoming. This, in turn, can
improve the overall ambience of your store and draw customers in.

4. Improve Security

Installing convex mirrors in blind spots, such as at the ends of aisles or corners, can help improve
your store's security. Convex mirrors provide a wide-angle field of view, making it easier for staff to
monitor the store and deter potential thieves.

5. Create Illusions of Space

Mirrors can also be used to create a sense of increased space within your store. By strategically
placing mirrors on walls, floors or ceilings, you can make your store appear larger than it actually is.
This approach is particularly useful for small stores, which can benefit from the illusion of space to
make customers feel more comfortable and less claustrophobic.

You can also use mirrors to create the illusion of depth by placing a mirror at the end of a narrow
aisle
Signage

Signage is a word for a bunch of signs, just like gaggle is a word for a bunch of geese.

If someone asks, "Did you see the signage?" they're not asking about one sign, because signage
refers to more than one sign. This usually refers to commercially oriented signs, like the ones on
billboards. Signage is a collective noun, so it stands for more than one thing, even though it doesn't
end in an "s." Other collective nouns are luggage and tonnage, which refer to more than one bag
and ton, respectfully.

A Wide Range Of Shop Signage Services Which Include But Not Limited To :

 Shopfront displays

 Retail rebranding

 Illuminated shop signs

 In-store signage

 Labels

 Banners

 Sale Signs for Retail Shops

 Shopping Centre Signage

 Sign boards for shops

Odd vs Even Pricing

Odd-even pricing is a pricing strategy involving the last digit of a product or service price. Prices
ending in an odd number, such as $1.99 or $78.25, use an odd pricing strategy, whereas prices
ending in an even number, such as $200.00 or 18.50, use an even strategy.

Odd-Even Pricing FAQ

Why is odd-even pricing used?

Odd-even pricing is a pricing strategy used by retailers to encourage customers to purchase items in a
specific quantity. For example, a retail store may offer certain items for $1.99 or two for $3. This
pricing strategy is used to increase sales, create a sense of urgency for customers, and create a
perceived value for the product.

How does Walmart use odd/even pricing?

Walmart uses odd/even pricing to create the perception of a lower price than what it is. For example,
they might price an item at $19.97 instead of $20.00. It is a psychological pricing strategy that is
designed to make customers perceive the item as having better value.

Retailer pricing schedules

Some retailers use the last digit in their product prices to indicate how discounted it has been and
whether it could be discounted further. Target, for example, has such a pricing schedule. Sources
report it looks like this:

 Products are discounted in increments from 15% to 30% to 50%, then 70%, and finally, 90%

 Prices ending in 6 or 8 will be marked down again during the next repricing cycle, which
happens about every two weeks.

 Prices ending in 4, such as $12.94, are final clearance and will not be discounted any further

When choosing a pricing strategy, it appears that going with an odd price, which results in a dollar
figure and cents, such as $3.95, has the biggest impact versus a whole number, such as $10.00.
However, the difference between odd and even cents make less of a difference, as when consumers
are comparing $7.99 and $7.98.
Packaging Design
Your packaging could be the difference between a new customer picking your product from the shop
shelf, or picking up that of your competitor’s. It could potentially win you a customer for life, or just
as easily lose them. Consumers judge your product by its packaging before they ever get to find out
what it can do, so you need to make it great.

On this page, we’ll look at what packaging design is, as well as tips for excellent packaging. We’ll also
look at how, as a packaging design agency, March can help you create packaging that wins customers.

Your packaging is the material that contains your product. Packaging design is the process that allows
your packaging to fulfil a wide range of functions. It has to be functional, holding your product,
enabling it to be transported and stored. It needs to stand out from your competitors’ packaging in
some way, as well as appeal to customers in-store and online.

There are three types of packaging, all with different functions and design needs:

 Primary – holds your product (for example, a bottle of shampoo)

 Secondary – outer packaging for display and on-shelf storage. Also, for protection during
transport (e.g. a box with a bottle of perfume inside)

 Tertiary – combining multiple packages for storing and logistics, typically seen in
warehouses.

Why you need an effective packaging design.

Think about how you select products in a supermarket or shop.

Usually, you go with what you know, but sometimes you like to give something else a try. What goes
through your mind? It could be price, or other features, but most of the time, you’ll make a snap
decision based on what you see. That’s the packaging.

Great packaging appeals to the eye, the brain and the emotions. It stands out on the shelves. It states
all the necessary features and benefits. It is also a reflection of the company brand.

If you make all those connections in a few split-seconds, you can win over a customer for potentially
a very long time.
Open/Closed Sight Lines

A sight line is an unobstructed line of sight (or view) extending from a viewer to some object or
landscape in the distance. The sight line makes it possible for the viewer to see some object in the
distance. If a sight line to an object is impeded, the viewer will not be able to see the object in
question.

A person in a cinema may block the sight line of the screen of the person sitting immediately behind
them. Or, a tall building may obstruct the site line of a view of a historic monument.

Sight lines are important concepts in various fields, such as urban planning, particularly junction
layouts, theatres and stadia. If a theatre seat has good sight lines, the occupier of that seat will likely
have a good view of all the stage; if there is a column in front or to the side, the viewer may have
restricted sight lines.

In stadia, seats are raked, with each row a step above the one in front, in order to ensure best
possible sight lines for all spectators.

Sight lines can be divided into two components: vertical and horizontal. If an audience member has
good vertical sight lines, they may be able to see the top and bottom of the screen or proscenium.
Good horizontal sight lines give a full view of the left-right horizontal extent of the screen or stage. It
may be possible in a theatre or cinema to have good horizontal sight lines but not good vertical sight
lines ie, the full width of the screen is visible but some of the lower section is obstructed due to the
balcony of the upper circle
Intangible Psychology How Customers are Influenced By Senses

As much as people love food, they may not want it if it's not touching something they deem
acceptable. That's one of the main reasons why the choice of packaging materials is so important.
Whatever the food touches, whether it's metal, plastic, paper or some other material, the package
must create the perception of a strong and clean barrier from the environment. A bakery must
particularly be conscious of how it serves sweets to customers who are often ready to eat a snack
right away.

Pricing, Packaging and Perceptions

The main factors that drive consumers to purchase chocolates, candies and confectionery are the
price, what the package looks like and the perceptions of how it feels and is likely to taste. Years of
scientific research on consumer behaviour points to a pattern in which people associate touch with
taste and other senses.

This understanding among package designers has led to an emphasis on sensory marketing, or
appealing to the human senses in a way that includes expectations of taste.

For many consumers, especially those struggling financially, price is a primary selling point. There's a
big difference between a shopper who just wants a fresh bakery item and a consumer with a cart full
of groceries.

Deeply Touching Experiences with Food

There's a compelling science on how touch associates with taste and other sensory perceptions.
These experiences are unique for each individual, but what's most important is that touching a
package trigger instant perception. These perceptions can change the way the consumer views the
product. When a package feels soft, for example, it may evoke softer emotions. Touching an object
sends multiple messages to the brain, such as perceptions of texture, weight and temperature.

Next Wave of Touch Research

Despite the countless studies conducted on the associations between touch and emotions and how
they affect perceptions of flavors and purchasing behavior, scientists still know very little about this
phenomenon. More research in needed on the link between touching a package and human
perceptions.
Tidiness
When a store can convince its customers that it’s genuinely clean, that’s a real victory. Many
customers feel skeptical about store cleanliness, especially behind the scenes where customers
aren’t allowed. They’ve seen hidden-camera TV shows that reveal the dirty secrets of restaurants,
retail stores, and supermarkets across the U.S.

Qualities that mean a store is clean:

 Neat and clean sidewalks. Before they even enter a store, customers want to see clean
sidewalks and steps. This is why so many grocery store cleaning companies frequently power
wash sidewalk zones.

 A pristine entryway. The entrance should be squeaky clean, from the floor mats to the
windows. Consumers are particularly irked by debris like cigarette butts, gum, and
mysterious stains, which can indicate a lack of frequent cleaning.

 Sanitizer and trash cans. Consumers want to see clear indications that the company cares
about cleanliness, like trash cans, recycling, hand sanitizer, and hand wipes. This is
particularly true of stores that offer shopping carts and baskets, which hold germs.

 Sparkling floors. When a floor is freshly polished and gleaming, the customer is given the
immediate impression of a clean environment. In the same way, a scuffed and dirty floor
makes them wonder what else is grimy throughout the store.

 Hygienic restrooms. The restrooms must be bright, fresh-smelling, and fully stocked with
toilet paper and paper towels. One study found that 86% of restaurant customers equate a
dirty restroom with a dirty kitchen, and 75% would never return to a place with a bathroom
that isn’t clean.

 No spills. Customers judge a company harshly if they fail to address spills quickly – ideally,
within minutes. For this reason, stores should have their staff members or an outside
cleaning company constantly monitor their entire retail floor for spills and stains.

 Create routine cleaning schedules. Weekly cleaning simply isn’t enough. Employees
should check entryways, walkways, and restrooms hourly. Store cleaning should take place
daily.
 Schedule deep cleaning. In addition to regular daily maintenance, the entire store should
be deep-cleaned on a consistent basis. This includes high ceiling areas, floors and carpets,
windows, displays, and everything else in both public and employee-only spaces.
 Check air and surface quality. Perform mold tests. Have the ductwork and HVAC
system cleaned. Ensure that the surfaces customers touch are not just clean, but hygienic –
meaning they are being cleaned thoroughly enough to eliminate infectious bacteria and
viruses.
 Arrange power washing. Certain areas need to be power washed regularly to keep them
clean: parking lots, sidewalks, entryways, building exterior siding, railings. Make
arrangements for a cleaning company to frequently power wash these areas.
 Deep clean the parking lot. At least once a year, schedule a thorough parking lot
cleaning to remove embedded debris, oil stains, tire marks, and all the other grime that builds
up around your customers’ cars.
 Remove graffiti promptly. Retail customers dislike seeing graffiti, so have a cleaner on
call who can tackle graffiti as soon as it happens.
Atmospherics
The controllable characteristics of retail space which entice customers to enter the store, shop, and
purchase are atmospherics. Philip Kotler first identified the use of design atmospherics as a
marketing device in 1973. Aspects such as lighting, ambient sound, merchandise layout, and other
features are all components of atmospherics. These features are in place to influence a consumer's
mood and increase the odds of purchases.

Nearly all retail stores use atmospherics, even if they are subtle. For example, a big box office supply
store may be known for its wide, well-lit aisles and bright red signs. Upscale retail clothing stores will
have upholstered chairs or sofas to convey the sense of luxury in shopping and allow shopping
companions a comfortable spot to rest and wait. Shops which target teenagers will often use
contrasted lighting and loud music. Panera Bread and Subway® are expert at using the atmospherics
of aroma like the smell of freshly baked bread encourage purchases. Realtors also employ elements
of atmospherics as they stage open houses. Staging allows buyers to picture themselves in the space
through the use of furnishings and the scent of freshly baked cookies.

Features of atmospherics include:

 A layout of the space including the location of clerks and check out counters

 The overall temperature of the retail space

 Scents or aromas designed to excite and entice the shopper

 The location of pricing information or other signage

 Music to inspire, sooth, or stimulate

 Decorations which represent the brand

Key Takeaways

 Atmospherics are the controllable characteristics of retail space which entice customers to
enter the store, shop, and point of purchase.
 Many retail giants will use elements of atmospherics to help identify their retail brand and
set it apart from competitors.
 For instance, staging allows buyers to picture themselves in the space through the use of
furnishings and the scent of freshly baked cookies.
 One drawback, however, can be an overly aggressive use of atmospherics, which can have
the opposite effect, intimidating or driving potential customers away.
REFERENCES

1. https://www.rmservicing.com/articles/what-is-visual-merchandising/
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