Visual Merchandising 573q27
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STUDY ON IMPACT OF VISUAL MERCHANDSING IN RETAIL MARKETING
[PROJECT REPORT] Submitted by: SURENDHAR.D, II yr. MBA, Rai Business school Chennai.
STUDY ON IMPACT OF VISUAL MERCHANDISING IN RETAIL MAKETING PRACTICED AT BIG BAZAAR (PART OF FUTURE RETAIL GROUP) PONDY BAZAAR, CHENNAI
SUBMITTED BY SURENDHAR DHANDAPANI II yr., MBA
OF RAI BUSINESS SCHOOL, TEYNAMPET, CHENNAI.
A PROJECT REPORT SUBMITTED TO THE FACULTY OF BUSINESS ISTRATION In partial fulfillment of the requirements of the program For the award of the internal marks.
Space for Bonafide certificate
DECLARATION
I D. Surendhar, a student of MBA, Rai Business School, Teynampet, Chennai. hereby, declare that the project work titled “A STUDY ON IMPACT OF VISUAL MERCHANDISING WITH REFERENCE To BIG BAZAAR”, Submitted to the Rai Business School in partial fulfillment of the requirement for the award of the degree of Master of Business istration is a record of Bonafide research carried out by me under the guidance of Mrs. Vinitha Prasad, Senior Lecturer, Rai Business School and no part of it has been submitted for any other degree or diploma.
Place: CHENNAI Date:
D.SURENDHAR
STUDY ON IMPACT OF VISUAL MERCHANDISING
ACKNOWLEDGEMENT
An endeavor over a long period can be successful only with the advice and of many well - wishers. I take this opportunity to express my gratitude and appreciation to all of them. Firstly I thank the Almighty who has been with me from the beginning of this project. Secondly, I would like to thank all my faculties at RAI business school for their encouragement and arousing the management skill in me to certain level which opened up an opportunity for internship which of course part of my course. I would also like to thank Prof. Venkatesan, Head, Academics and Mr. Ilango Manager Placement division of Rai Business School, Chennai, for providing me full to complete my internship. I would also like to thank Mrs. Vinita, my project mentor at the Rai business school, Chennai who guided me in the successful completion of the project. I am deeply indebted to express my heartfelt thanks to Mr. SHENBAGARAJAN, Senior Executive (HR), Future Value Retail Ltd, Chennai for giving me permission to do the project in the organization and his and guidance to complete this project. My family and friends also ed me with the study and encouraged me a lot and I am thankful for it.
Acknowledgements
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STUDY ON IMPACT OF VISUAL MERCHANDISING D.SURENDHAR II yr. MBA
Acknowledgements
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STUDY ON IMPACT OF VISUAL MERCHANDISING
ABSTRACT This 5 days of mini
project was organized by the college and put the students directly to the fields of market is mainly aimed for evaluating the knowledge of the student and to give him a chance to self-evaluate himself and to improve him in the areas needed. Also gives the chance to test practically with concepts learned by the student from books. Also provides opportunity for the student to understand the industry in which they are going to work after their graduation. This project report has got two sections. The first section deals with the overall view of Indian retail industry and the company profile for future group along with their vision & mission statement The second section has the details about study on the impact of visual merchandising in influencing the consumer’s buying behavior.
«««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING
CONTENTS CHAPTER NO
1
2
PARTICULARS
PAGE NO
SECTION – I
05
1.1 INTRODUCTION
06
1.2 NEED AND IMPORTANCE FOR THE STUDY
07
1.3 INDIA RETAIL INDUSTRY – OVER VIEW
09
1.4 COMPANY PROFILE
11
SECTION - II
17
STATEMENT OF OBJECTIVES
18
2.1 PRIMARY OBJECTIVE
18
2.2 SECONDARY OBJECTIVE
18
3.1 REVIEW OF LITERATURE
3
3.2 VISUAL MERCHANDISING STRATEGIES FOLLOWING AT BIG BAZAAR
19 21 23
3.3 CONCEPTUALIZATION
4
PROJECT REPORT
RESEARCH METDOLOGY
24
4.1 RESEARCH DESIGN & DATA COLLECTION
24
4.2 DATA ANALYSIS PROCEDURE
24
4.3 LIMITATIONS OF THE STUDY
25
4.4 METHOD ADOPTED FOR THE EXPERIMENT
25
4.5 DATA ANALYSIS AND INTERPRETATION
26
Page 3
STUDY ON IMPACT OF VISUAL MERCHANDISING 4.6 FINDINGS
28
4.7 RECOMMENDATIONS
30
5
CONCLUSION
32
6
BIBLIOGRAPHY
33
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STUDY ON IMPACT OF VISUAL MERCHANDISING
SECTION - I
PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING
Introduction I chose BIG BAZAAR at Pondy bazaar in Chennai to do my project under the topic “A STUDY ON IMPACT OF VISUAL MERCHANDISING, a unit of FUTURE 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 and future group is one such firm a leading player in the industry and also encourages students like me to conduct this this kind of studies in their outlets and providing proper and assistance
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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 er-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 ageways 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 the number of SKUs stocked and shelves/counter space requirements are worked out accordingly.
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Clear ages are provided for products, which require touch and feel. All impulse purchase driven products are also clearly displayed so that the customers can reach them without any hindrance. Also, it has been observed that when a person enters a room, the human eye moves in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to front right. Care should be taken to do up the rear left end of the room in an appealing manner so as to guide the direction of vision and keep a shopper visually interested. 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.
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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 PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 $ 410 billion, with 5 per cent of sales through organized retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organized retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, the report added. Bharti Retail strengthened its position in northern India by opening 59 stores, Bharti WalMart is expected to open 10 to 15 wholesale locations in the next three years, and Marks & Spencer is considering plans to open additional outlets in the next few years. Established retailers are tapping into the growing retail market by introducing innovative store formats. Spencer's Retail, More (owned by Aditya 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), Bengaluru, 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).
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STUDY ON IMPACT OF VISUAL MERCHANDISING Leading watchmaker Titan Industries Limited plans to invest $ 21.83 million for opening 50 s 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, Ahmedabad 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 t venture (JV) with Reliance Retail. Bharti Retail, owner of Easy Day store—supermarkets and hyper marts—plans to invest $ 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
COMPANY PROFILE FUTURE GROUP The field of study was conducted at Big bazaar a unit of Pantaloons 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 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future General, the group’s insurance venture in partnership with Italy’s General Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group’s t venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The group’s flagship company, 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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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.’
Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
Mission They share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. They shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost- conscious and committed to quality in whatever we do. They shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
Core values Indianness: confidence in ourselves. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and relationships.
Nurturing
Relationships:
to
build
long
term
Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
Major Milestones 2001- Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. 2002- Food Bazaar, the supermarket chain is launched. 2004- Central - India’s first seamless mall is launched in Bangalore. 2005- Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. 2006- Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING and furniture chain, Furniture Bazaar. Future Group enters into t venture agreements to launch insurance products with Italian insurance major, General Forms t ventures with US office stationery retailer, Staples. 2007- Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. 2008- Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations. BIG BAZAAR Big bazaar, Pondy Bazaar was the second store to make an impact in the minds of the customer. It was opened in the month of June, 2008. Situated in the midst of an IT hub, it welcomes customers with exciting offers and discounts. Pondy bazaar is among the few areas in Chennai that is full of activities with shopping malls, eat out ts, restaurants etc. This also brings a lot of competition for the store. Measures are taken to retain the customers by training the employees to be polite and vigilant. The various departments in the store are as follows: •
Food bazaar department
•
Cash department
•
Plastics, Utensils and Crockery
•
Appliances
•
Footwear
•
New Business Developments
•
Depot
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STUDY ON IMPACT OF VISUAL MERCHANDISING •
Home Linen
•
Furniture
•
Apparels
•
Visual merchandise
•
Human Resource
•
istration
•
Ware house / Logistics
•
Maintenance
•
Customer Service Department
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SECTION - II
PROJECT REPORT
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STATEMENT OF OBJECTIVES
PRIMARY OBJECTIVES OF THE STUDY A study on impact of merchandising products on the consumers’ buying choice with reference to big bazaar •
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 – BIG BAZAAR, Pondy Bazaar Branch, Chennai.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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.
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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING •
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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING VISUAL MERCHANDISING STRATEGIES FOLLOWED AT BIG BAZAAR
A Planogram allows planning of the arrangement of merchandise on a given fixture configuration to 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 big bazaar they used the proper combination of each of these elements to 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 big bazaar 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
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 big bazaar they utilized the major advantage of this factor and used it in the entire store for the arrangement of products. During my project period I was put up in food bazaar. There I noticed that in all the shelves they arranged the packs based on color of the packs so that they formed color gradients giving emphasize to strong color packs and slightly saturating to the lighter shade packs. This helps in grabbing the attention of the customer and holding it for minimum of 5-10 seconds and also helps them for effective scanning between the products across the shelves without straining the eyes much.
DISPLAYTHEMES TO APPROPRIATELY THE PRODUCT: I did this project at Big Bazaar during their big day sales or Mahabachat which will happen every year during republic day and Independence Day. The sale lasts for 5 days. For these 5 days they decorated the store with themed displays of offers available during these Mahabachat sales throughout the store and windows. It sets the context in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. 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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING «««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 Product Display
Visual Merchandizing
Buying decision Behavio r
Cleanliness
Courtesy: Visual merchandising and consumer decision process for intimate apparel by Derry Law and Joanne yip – institute of textile and clothing, the Hong Kong polytechnic university – Hong Kong.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 istrated, facilitating the observations process. The primary research was carried out in BIG BAZAAR – T-Nagar branch, Chennai. 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. LIMITATIONS OF THE STUDY: Apart from visual merchandising there is the influence of other mediums like television, newspaper and radio used for communicating the mahabachat sale at BIG BAZAAR – this has got the strong influence in buying decision. Since i chose the busy retail out let like BIG BAZAAR and that too during the period of big day sales its bit tough for me to do the observations in a detailed manner.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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
METHOD ADOPTED FOR THE EXPERIMENT At big bazaar during the Mahabachat sale our aim was to sell the maximum combi packs of provisions. The following were the combi packs bundle they made: • Rs.444 – 5 kgs of sugar, rice and golden harvest atta •
Rs.555 – 5 kgs of pills burry atta, tilda long grain rice and 5 liters Gemini refined sunflower oil
• Rs.575 – 5 kgs of sugar, tilde long grain rice and 5 liters fortune refined sunflower oil • Rs.589 – 5 kgs of sugar, aashirvad atta and 5 liters gold winner refined sunflower oil •
Rs.625 – 5 kgs of hello royal basmati rice, pills burry atta and 5 liters gold winner refined sunflower oil
•
Rs.649 – 5 kgs of aashivad atta, daawat devya basmati rice and 5 liters gold winner refined sunflower oil.
For the first 3 days we didn’t adopt any systems for the promotion, we sold average of 200 combi packs. For the fourth and fifth day we were given targets for the sale of combi packs. So my team leader decided to add up extra visual merchandise to make the customer available of those packs. So we decided two place one close to the customer bag zone there we displayed all the combi packs in a decorated table along with the signage displaying the offers in an attractive way and the second place was quite close to customer service desk the entry for the customers to the shop we adopted the same method as earlier. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING I’ve enclosed the details for one hour of the study as it was very tough to record the actual data for over a period of time. But the end result was we achieved the targets for all these days. For the fourth day we were given target of 300 combi packs and we sold around 320 packs and for the closing day we got the target of 400 and sold close to 447 packs. Over all the method worked very well and played a vital role in achieving the targets.
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
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STUDY ON IMPACT OF VISUAL MERCHANDISING
Factors involved in Visual Merchandsing – based on time spent TIME SPENT FACTOR
0-5 sec
05-10 sec
10-15 sec
TOTAL
PERCENTAG E
SIGNAGES
31
55
108
194
19.4
POSTER
174
47
84
305
30.5
THEMED PRODUCT DISPLAYS
251
50
10
310
31
INSHOP PROMOTIONS
15
56
120
191
19.1
1000
100
Grand Total
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 medias 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 the PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 er-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. «««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING RECOMMENDATIONS The research findings of present study have more practical orientation
and
supermarkets
which
sector.
is
important
Hence,
the
for
the
study
marketers
recommends
in the
following. 1.
Visual merchandising is the most important variable in instore environment among the tested variables. It can significantly Therefore,
influence application
on of
consumer’s more
buying
choice.
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 super markets 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 (age), 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 deg the product display, Supermarket managers should pay special attention on category layout, canola
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STUDY ON IMPACT OF VISUAL MERCHANDISING (Light ceiling), color separation, lighting box, category name of product shells. 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. can
select
appropriate
lighting
Therefore managers
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.
«««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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 deg 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 future group for providing training of this kind. «««««»»»»»
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[PROJECT REPORT] Submitted by: SURENDHAR.D, II yr. MBA, Rai Business school Chennai.
STUDY ON IMPACT OF VISUAL MERCHANDISING IN RETAIL MAKETING PRACTICED AT BIG BAZAAR (PART OF FUTURE RETAIL GROUP) PONDY BAZAAR, CHENNAI
SUBMITTED BY SURENDHAR DHANDAPANI II yr., MBA
OF RAI BUSINESS SCHOOL, TEYNAMPET, CHENNAI.
A PROJECT REPORT SUBMITTED TO THE FACULTY OF BUSINESS ISTRATION In partial fulfillment of the requirements of the program For the award of the internal marks.
Space for Bonafide certificate
DECLARATION
I D. Surendhar, a student of MBA, Rai Business School, Teynampet, Chennai. hereby, declare that the project work titled “A STUDY ON IMPACT OF VISUAL MERCHANDISING WITH REFERENCE To BIG BAZAAR”, Submitted to the Rai Business School in partial fulfillment of the requirement for the award of the degree of Master of Business istration is a record of Bonafide research carried out by me under the guidance of Mrs. Vinitha Prasad, Senior Lecturer, Rai Business School and no part of it has been submitted for any other degree or diploma.
Place: CHENNAI Date:
D.SURENDHAR
STUDY ON IMPACT OF VISUAL MERCHANDISING
ACKNOWLEDGEMENT
An endeavor over a long period can be successful only with the advice and of many well - wishers. I take this opportunity to express my gratitude and appreciation to all of them. Firstly I thank the Almighty who has been with me from the beginning of this project. Secondly, I would like to thank all my faculties at RAI business school for their encouragement and arousing the management skill in me to certain level which opened up an opportunity for internship which of course part of my course. I would also like to thank Prof. Venkatesan, Head, Academics and Mr. Ilango Manager Placement division of Rai Business School, Chennai, for providing me full to complete my internship. I would also like to thank Mrs. Vinita, my project mentor at the Rai business school, Chennai who guided me in the successful completion of the project. I am deeply indebted to express my heartfelt thanks to Mr. SHENBAGARAJAN, Senior Executive (HR), Future Value Retail Ltd, Chennai for giving me permission to do the project in the organization and his and guidance to complete this project. My family and friends also ed me with the study and encouraged me a lot and I am thankful for it.
Acknowledgements
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STUDY ON IMPACT OF VISUAL MERCHANDISING D.SURENDHAR II yr. MBA
Acknowledgements
Page 2
STUDY ON IMPACT OF VISUAL MERCHANDISING
ABSTRACT This 5 days of mini
project was organized by the college and put the students directly to the fields of market is mainly aimed for evaluating the knowledge of the student and to give him a chance to self-evaluate himself and to improve him in the areas needed. Also gives the chance to test practically with concepts learned by the student from books. Also provides opportunity for the student to understand the industry in which they are going to work after their graduation. This project report has got two sections. The first section deals with the overall view of Indian retail industry and the company profile for future group along with their vision & mission statement The second section has the details about study on the impact of visual merchandising in influencing the consumer’s buying behavior.
«««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING
CONTENTS CHAPTER NO
1
2
PARTICULARS
PAGE NO
SECTION – I
05
1.1 INTRODUCTION
06
1.2 NEED AND IMPORTANCE FOR THE STUDY
07
1.3 INDIA RETAIL INDUSTRY – OVER VIEW
09
1.4 COMPANY PROFILE
11
SECTION - II
17
STATEMENT OF OBJECTIVES
18
2.1 PRIMARY OBJECTIVE
18
2.2 SECONDARY OBJECTIVE
18
3.1 REVIEW OF LITERATURE
3
3.2 VISUAL MERCHANDISING STRATEGIES FOLLOWING AT BIG BAZAAR
19 21 23
3.3 CONCEPTUALIZATION
4
PROJECT REPORT
RESEARCH METDOLOGY
24
4.1 RESEARCH DESIGN & DATA COLLECTION
24
4.2 DATA ANALYSIS PROCEDURE
24
4.3 LIMITATIONS OF THE STUDY
25
4.4 METHOD ADOPTED FOR THE EXPERIMENT
25
4.5 DATA ANALYSIS AND INTERPRETATION
26
Page 3
STUDY ON IMPACT OF VISUAL MERCHANDISING 4.6 FINDINGS
28
4.7 RECOMMENDATIONS
30
5
CONCLUSION
32
6
BIBLIOGRAPHY
33
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STUDY ON IMPACT OF VISUAL MERCHANDISING
SECTION - I
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STUDY ON IMPACT OF VISUAL MERCHANDISING
Introduction I chose BIG BAZAAR at Pondy bazaar in Chennai to do my project under the topic “A STUDY ON IMPACT OF VISUAL MERCHANDISING, a unit of FUTURE 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 and future group is one such firm a leading player in the industry and also encourages students like me to conduct this this kind of studies in their outlets and providing proper and assistance
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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 er-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 ageways 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 the number of SKUs stocked and shelves/counter space requirements are worked out accordingly.
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STUDY ON IMPACT OF VISUAL MERCHANDISING
Clear ages are provided for products, which require touch and feel. All impulse purchase driven products are also clearly displayed so that the customers can reach them without any hindrance. Also, it has been observed that when a person enters a room, the human eye moves in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to front right. Care should be taken to do up the rear left end of the room in an appealing manner so as to guide the direction of vision and keep a shopper visually interested. 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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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 PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 $ 410 billion, with 5 per cent of sales through organized retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organized retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, the report added. Bharti Retail strengthened its position in northern India by opening 59 stores, Bharti WalMart is expected to open 10 to 15 wholesale locations in the next three years, and Marks & Spencer is considering plans to open additional outlets in the next few years. Established retailers are tapping into the growing retail market by introducing innovative store formats. Spencer's Retail, More (owned by Aditya 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), Bengaluru, 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).
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STUDY ON IMPACT OF VISUAL MERCHANDISING Leading watchmaker Titan Industries Limited plans to invest $ 21.83 million for opening 50 s 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, Ahmedabad 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 t venture (JV) with Reliance Retail. Bharti Retail, owner of Easy Day store—supermarkets and hyper marts—plans to invest $ 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
COMPANY PROFILE FUTURE GROUP The field of study was conducted at Big bazaar a unit of Pantaloons 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 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING destination malls. Some of its other formats include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The group’s specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations. Other group companies include, Future General, the group’s insurance venture in partnership with Italy’s General Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group’s t venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The group’s flagship company, 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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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.’
Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
Mission They share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. They will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. They shall infuse Indian brands with confidence and renewed ambition. They shall be efficient, cost- conscious and committed to quality in whatever we do. They shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
Core values Indianness: confidence in ourselves. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and relationships.
Nurturing
Relationships:
to
build
long
term
Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
Major Milestones 2001- Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad. 2002- Food Bazaar, the supermarket chain is launched. 2004- Central - India’s first seamless mall is launched in Bangalore. 2005- Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls. 2006- Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING and furniture chain, Furniture Bazaar. Future Group enters into t venture agreements to launch insurance products with Italian insurance major, General Forms t ventures with US office stationery retailer, Staples. 2007- Future Group crosses $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. 2008- Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world. Total operational retail space crosses 10 million square feet mark. Future Group acquires rural retail chain, Aadhar present in 65 rural locations. BIG BAZAAR Big bazaar, Pondy Bazaar was the second store to make an impact in the minds of the customer. It was opened in the month of June, 2008. Situated in the midst of an IT hub, it welcomes customers with exciting offers and discounts. Pondy bazaar is among the few areas in Chennai that is full of activities with shopping malls, eat out ts, restaurants etc. This also brings a lot of competition for the store. Measures are taken to retain the customers by training the employees to be polite and vigilant. The various departments in the store are as follows: •
Food bazaar department
•
Cash department
•
Plastics, Utensils and Crockery
•
Appliances
•
Footwear
•
New Business Developments
•
Depot
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STUDY ON IMPACT OF VISUAL MERCHANDISING •
Home Linen
•
Furniture
•
Apparels
•
Visual merchandise
•
Human Resource
•
istration
•
Ware house / Logistics
•
Maintenance
•
Customer Service Department
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STUDY ON IMPACT OF VISUAL MERCHANDISING
SECTION - II
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STUDY ON IMPACT OF VISUAL MERCHANDISING
STATEMENT OF OBJECTIVES
PRIMARY OBJECTIVES OF THE STUDY A study on impact of merchandising products on the consumers’ buying choice with reference to big bazaar •
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 – BIG BAZAAR, Pondy Bazaar Branch, Chennai.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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.
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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING •
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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING VISUAL MERCHANDISING STRATEGIES FOLLOWED AT BIG BAZAAR
A Planogram allows planning of the arrangement of merchandise on a given fixture configuration to 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 big bazaar they used the proper combination of each of these elements to 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 big bazaar 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
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 big bazaar they utilized the major advantage of this factor and used it in the entire store for the arrangement of products. During my project period I was put up in food bazaar. There I noticed that in all the shelves they arranged the packs based on color of the packs so that they formed color gradients giving emphasize to strong color packs and slightly saturating to the lighter shade packs. This helps in grabbing the attention of the customer and holding it for minimum of 5-10 seconds and also helps them for effective scanning between the products across the shelves without straining the eyes much.
DISPLAYTHEMES TO APPROPRIATELY THE PRODUCT: I did this project at Big Bazaar during their big day sales or Mahabachat which will happen every year during republic day and Independence Day. The sale lasts for 5 days. For these 5 days they decorated the store with themed displays of offers available during these Mahabachat sales throughout the store and windows. It sets the context in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. 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.
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STUDY ON IMPACT OF VISUAL MERCHANDISING «««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 Product Display
Visual Merchandizing
Buying decision Behavio r
Cleanliness
Courtesy: Visual merchandising and consumer decision process for intimate apparel by Derry Law and Joanne yip – institute of textile and clothing, the Hong Kong polytechnic university – Hong Kong.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 istrated, facilitating the observations process. The primary research was carried out in BIG BAZAAR – T-Nagar branch, Chennai. 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. LIMITATIONS OF THE STUDY: Apart from visual merchandising there is the influence of other mediums like television, newspaper and radio used for communicating the mahabachat sale at BIG BAZAAR – this has got the strong influence in buying decision. Since i chose the busy retail out let like BIG BAZAAR and that too during the period of big day sales its bit tough for me to do the observations in a detailed manner.
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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
METHOD ADOPTED FOR THE EXPERIMENT At big bazaar during the Mahabachat sale our aim was to sell the maximum combi packs of provisions. The following were the combi packs bundle they made: • Rs.444 – 5 kgs of sugar, rice and golden harvest atta •
Rs.555 – 5 kgs of pills burry atta, tilda long grain rice and 5 liters Gemini refined sunflower oil
• Rs.575 – 5 kgs of sugar, tilde long grain rice and 5 liters fortune refined sunflower oil • Rs.589 – 5 kgs of sugar, aashirvad atta and 5 liters gold winner refined sunflower oil •
Rs.625 – 5 kgs of hello royal basmati rice, pills burry atta and 5 liters gold winner refined sunflower oil
•
Rs.649 – 5 kgs of aashivad atta, daawat devya basmati rice and 5 liters gold winner refined sunflower oil.
For the first 3 days we didn’t adopt any systems for the promotion, we sold average of 200 combi packs. For the fourth and fifth day we were given targets for the sale of combi packs. So my team leader decided to add up extra visual merchandise to make the customer available of those packs. So we decided two place one close to the customer bag zone there we displayed all the combi packs in a decorated table along with the signage displaying the offers in an attractive way and the second place was quite close to customer service desk the entry for the customers to the shop we adopted the same method as earlier. PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING I’ve enclosed the details for one hour of the study as it was very tough to record the actual data for over a period of time. But the end result was we achieved the targets for all these days. For the fourth day we were given target of 300 combi packs and we sold around 320 packs and for the closing day we got the target of 400 and sold close to 447 packs. Over all the method worked very well and played a vital role in achieving the targets.
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
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STUDY ON IMPACT OF VISUAL MERCHANDISING
Factors involved in Visual Merchandsing – based on time spent TIME SPENT FACTOR
0-5 sec
05-10 sec
10-15 sec
TOTAL
PERCENTAG E
SIGNAGES
31
55
108
194
19.4
POSTER
174
47
84
305
30.5
THEMED PRODUCT DISPLAYS
251
50
10
310
31
INSHOP PROMOTIONS
15
56
120
191
19.1
1000
100
Grand Total
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 medias 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 the PROJECT REPORT
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STUDY ON IMPACT OF VISUAL MERCHANDISING 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 er-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. «««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING RECOMMENDATIONS The research findings of present study have more practical orientation
and
supermarkets
which
sector.
is
important
Hence,
the
for
the
study
marketers
recommends
in the
following. 1.
Visual merchandising is the most important variable in instore environment among the tested variables. It can significantly Therefore,
influence application
on of
consumer’s more
buying
choice.
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 super markets 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 (age), 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 deg the product display, Supermarket managers should pay special attention on category layout, canola
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STUDY ON IMPACT OF VISUAL MERCHANDISING (Light ceiling), color separation, lighting box, category name of product shells. 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. can
select
appropriate
lighting
Therefore managers
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.
«««««»»»»»
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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STUDY ON IMPACT OF VISUAL MERCHANDISING
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 deg 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 future group for providing training of this kind. «««««»»»»»
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