STUDY ON IMPACT

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


D.SURENDHAR
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ACKNO#LEDGEMENT
An endea/or o/er a lon" period can be successful only with the
ad/ice and support of many well 0 wishers. I tae this opportunity
to e1press my "ratitude and appreciation to all of them.
+irstly I than the Almi"hty who has been with me from the
be"innin" of this project. Secondly, I would lie to than all my
faculties at RAI business school for their encoura"ement and
arousin" the mana"ement sill in me to certain le/el which
opened up an opportunity for internship which of course part of
my course.
I would also lie to than *rof. ,enatesan, #ead, Academics and
Mr. Ilan"o Mana"er *lacement di/ision of Rai Business School,
Chennai, for pro/idin" me full support to complete my internship.
I would also lie to than Mrs. ,inita, my project mentor at the Rai
business school, Chennai who "uided me in the successful
completion of the project.
I am deeply indebted to e1press my heartfelt thans to Mr.
S#$%BA.ARA2A%, Senior $1ecuti/e 3#R4, +uture ,alue Retail -td,
Chennai for "i/in" me permission to do the project in the
or"ani5ation and his support and "uidance to complete this
project.
My family and friends also supported me with the study and
encoura"ed me a lot and I am thanful for it.
Acnowled"ements *a"e 1
ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
'.S&R$%'#AR
II yr. MBA
Acnowled"ements *a"e 2
ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
A%STRACT
This 6 days of mini project was or"ani5ed by the colle"e and put
the students directly to the fields of maret is mainly aimed for
e/aluatin" the nowled"e of the student and to "i/e him a chance
to self0e/aluate himself and to impro/e him in the areas needed.
Also "i/es the chance to test practically with concepts learned by
the student from boos. Also pro/ides opportunity for the student
to understand the industry in which they are "oin" to wor after
their "raduation.
This project report has "ot two sections.
The first section deals with the o/erall /iew of Indian retail
industry and the company profile for future "roup alon" with their
/ision 7 mission statement
The second section has the details about study on the impact of
/isual merchandisin" in influencin" the consumer8s buyin"
beha/ior.
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CONTENTS
CHAPTER
NO
PARTICULARS PAGE NO
SECTION 0 I :6
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SECTION 2 II
STATEMENT OF O%JECTIVES
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In*r$du+*)$n
I chose BI. BADAAR at *ondy ba5aar in Chennai to do my project
under the topic "A STUDY ON IMPACT OF VISUAL
MERCHANDISING! a unit of +&T&R$ .R)&* is one of the most
well0nown Retail firms in India. I found Retail business
appropriate for the topic as this is the only business which "i/es
importance for /isual merchandisin" and future "roup is one such
firm a leadin" player in the industry and also encoura"es students
lie me to conduct this this ind of studies in their outlets and
pro/idin" proper support and assistance
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Need nd )89$r*n+e $: ;)(u, 8er+hnd)()n<
,isual merchandisin" today forms a critical element of retailin".
Besides the facade and windows, which are clearly done up with
an objecti/e to attract passer0bys and induce wal0ins, there is
also in0store decor that is desi"ned to enhance the customer8s
comfort and con/enience while shoppin" and o/erall, offer a
superior shoppin" e1perience.
Consumer beha/ior studies ha/e confirmed that the lure of a
beautifully done up show window and a tastefully decorated
facade, more often than not, pro/e irresistible as they wal in to
chec out what is on offer. It also ensures e1clusi/ity since no two
stores should loo alie. Besides, when the mood and theme of
such displays chan"e at re"ular inter/als, it maes certain that
the store remains top of mind. -oyal customers ha/e often been
nown to an1iously wait for the ne1t display. FSticiness8 in retail
formats is also ensured by the ima"inati/e use of colors, li"htin",
space, furniture and /isual elements with re"ard to in0store
displays.
)nce customers wal in, it is but imperati/e to ensure that they
enjoy their first encounter with the store. After all, repeat /isits
will only happen if a customer8s first /isit is a memorable one. The
lo"ical arran"ement of counters, with clear passa"eways allows
for easy access to merchandise.
Rather than "ettin" lost in the bi" space that most lar"e stores
are, the customer feels more in control. Space is allocated to
/arious product cate"ories tain" into account the number of
SG&s stoced and shel/esHcounter space re!uirements are
wored out accordin"ly.
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Clear passa"es are pro/ided for products, which re!uire touch
and feel. All impulse purchase dri/en products are also clearly
displayed so that the customers can reach them without any
hindrance. Also, it has been obser/ed that when a person enters a
room, the human eye mo/es in a D pattern, i.e. from rear left of
the room to ri"ht rear, followed by front left of the room to front
ri"ht. Care should be taen to do up the rear left end of the room
in an appealin" manner so as to "uide the direction of /ision and
eep a shopper /isually interested.
A "reat deal of research has been undertaen on the impact of
li"htin" on a customer8s purchase beha/ior. Results clearly
indicate that in "eneral, stores that are bri"htly lit, with the li"hts
cle/erly blendin" with the interiors lead to hi"her customer
comfort, and as such, more sales.
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INDIAN RETAIL INDUSTRY 0 AN OVERVIE#
India retail industry is the lar"est industry in India, with an
employment of around CI and contributin" to o/er ;:I of the
countryJs .'*. Retail industry in India is e1pected to rise 96I
yearly bein" dri/en by stron" income "rowth, chan"in" lifestyles,
and fa/orable demo"raphic patterns.
The BMI India Retail Report for the third0!uarter of 9:;:, forecasts
that the total retail sales will "row from &SK >6> billion in 9:;: to
&SK 6B>.9 billion by 9:;B. @ith the e1pandin" middle and upper
class consumer base, there will also be opportunities in IndiaJs tier
II and III cities. The "reater a/ailability of personal credit and a
"rowin" /ehicle population to impro/e mobility also contribute to
a trend towards annual retail sales "rowth of ;;.B per cent. Mass
"rocery retail 3M.R4 sales in India are forecast to under"o
enormous "rowth o/er the forecast period. BMI further predicts
that sales throu"h M.R outlets will increase by ;6B per cent to
reach &SK ;6.9A billion by 9:;B. This is a conse!uence of IndiaJs
dramatic, rapid shift from small independent retailers to lar"e,
modern outlets.
BMI forecasts consumer electronic sales at &SK 9A.C< billion in
9:;:, with o/er the counter 3)TC4 pharmaceutical sales at &SK
>.9C billion. The latter is predicted to be the fastest "rowin" retail
sub0sector and BMI forecasts that sales will reach &SK <.;C billion
by 9:;B, an increase of CC.6 per cent.
Moreo/er, for the Bth time in fi/e years, India has been raned as
the most attracti/e nation for retail in/estment amon" >:
emer"in" marets by the &S0based "lobal mana"ement
consultin" firm, A T Gearney in its Cth annual .lobal Retail
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'e/elopment Inde1 3.R'I4 9::A. India remains amon" the
leaders in the 9:;: .R'I and presents major retail opportunities.
IndiaJs retail maret is e1pected to be worth about &SK B;:
billion, with 6 per cent of sales throu"h or"ani5ed retail, meanin"
that the opportunity in India remains immense. Retail should
continue to "row rapidlyLup to &SK 6>6 billion in 9:;>, with ;:
per cent comin" from or"ani5ed retail, reflectin" a fast0"rowin"
middle class, demandin" hi"her !uality shoppin" en/ironments
and stron"er brands, the report added. Bharti Retail stren"thened
its position in northern India by openin" 6A stores, Bharti @al0
Mart is e1pected to open ;: to ;6 wholesale locations in the ne1t
three years, and Mars 7 Spencer is considerin" plans to open
additional outlets in the ne1t few years.
$stablished retailers are tappin" into the "rowin" retail maret by
introducin" inno/ati/e store formats. SpencerJs Retail, More
3owned by Aditya Birla .roup4 and Shoppers Stop 3owned by G
Raheja .roup4 already plan to e1pand.
Accordin" to a McGinsey 7 Company report titled JThe .reat
Indian Ba5aarM )r"ani5ed Retail Comes of A"e in IndiaJ, or"ani5ed
retail in India is e1pected to increase from 6 per cent of the total
maret in 9::C to ;B 0 ;C per cent of the total retail maret and
reach &SK B6: billion by 9:;6.
+urthermore, accordin" to a report titled JIndia )r"ani5ed Retail
Maret 9:;:J, published by Gni"ht +ran India in May 9:;: durin"
9:;:0;9, around 66 million s!uare feet 3s!. ft.4 of retail space will
be ready in Mumbai, national capital re"ion 3%CR4, Ben"aluru,
Golata, Chennai, #yderabad and *une. Besides, between 9:;:
and 9:;9, the or"ani5ed retail real estate stoc will "row from the
e1istin" B; million s!. ft. to A6 million s!. ft.
India continues to be amon" the most attracti/e countries for
"lobal retailers. +orei"n direct in/estment 3+'I4 inflows between
April 9::: and April 9:;:, in sin"le0brand retail tradin", stood at
&SK ;AB.<A million, accordin" to the 'epartment of Industrial
*olicy and *romotion 3'I**4.
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-eadin" watchmaer Titan Industries -imited plans to in/est
about &SK 9;.C> million for openin" 6: premiums watch outlets
#elios in ne1t fi/e years to attain a sales tar"et of &SK C=.>;
million. N@e are looin" to open #elios outlets in Mumbai, 'elhi,
#yderabad, Golata, Chennai, *une, Ahmedabad etc. in ne1t ;9
months,N said Ajoy Chawla, ,ice *resident 3Retail4, Titan.
British hi"h street retailer, Mars and Spencer 3M7S4 plans to
si"nificantly increase its retail presence in India, tar"etin" 6:
stores in the ne1t three years. M7S currently operates ;= stores
in India throu"h a joint /enture 32,4 with Reliance Retail.
Bharti Retail, owner of $asy 'ay storeLsupermarets and hyper
martsLplans to in/est about &SK 9.6 billion o/er the ne1t fi/e
years to add about ;: million s!. ft. of retail space in the country
by then, accordin" to a company spoesperson.
SourceM httpMHHwww.ibef.or"HindustryHretail.asp1
COMPANY PROFILE
FUTURE GROUP
The field of study was conducted at Bi" ba5aar a unit of
*antaloons Retail 3India4 -imited. *antaloon Retail 3India4 -imited,
is India8s leadin" retailer that operates multiple retail formats in
both the /alue and lifestyle se"ment of the Indian consumer
maret. #ead!uartered in Mumbai 3Bombay4, the company
operates o/er ;9 million s!uare feet of retail space, has o/er
;::: stores across =; cities in India and employs o/er >:,:::
people.
The company8s leadin" formats include *antaloons, a chain of
fashion outlets, Bi" Ba5aar, a uni!uely Indian hypermaret chain,
+ood Ba5aar, a supermaret chain, blends the loo, touch and feel
of Indian ba5aars with aspects of modern retail lie choice,
con/enience and !uality and Central, a chain of seamless
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destination malls. Some of its other formats include Brand
+actory, Blue Sy, all, Top ;: and Star and Sitara. The company
also operates an online portal, futureba5aar.com.
A subsidiary company, #ome Solutions Retail 3India4 -imited,
operates #ome Town, a lar"e0format home solutions store,
Collection i, sellin" home furniture products and eDone focused
on caterin" to the consumer electronics se"ment. *antaloon
Retail was recently awarded the International Retailer of the (ear
9::= by the &S0based %ational Retail +ederation 3%R+4 and the
$mer"in" Maret Retailer of the (ear 9::= at the @orld Retail
Con"ress held in Barcelona.
*antaloon Retail is the fla"ship company of +uture .roup, a
business "roup caterin" to the entire Indian consumption space.
Fu*ure Gr$u9
+uture .roup, led by its founder and .roup C$), Mr. Gishore
Biyani, is one of India8s leadin" business houses with multiple
businesses spannin" across the consumption space. @hile retail
forms the core business acti/ity of +uture .roup, "roup
subsidiaries are present in consumer finance, capital, insurance,
leisure and entertainment, brand de/elopment, retail real estate
de/elopment, retail media and lo"istics led by its fla"ship
enterprise, *antaloon Retail, the "roup operates o/er ;9 million
s!uare feet of retail space in =; cities and towns and <6 rural
locations across India.
#ead!uartered in Mumbai 3Bombay4, *antaloon Retail employs
around >:,::: people and is listed on the Indian stoc e1chan"es.
The company follows a multi0format retail strate"y that captures
almost the entire consumption baset of Indian customers. In the
lifestyle se"ment, the "roup operates *antaloons, a fashion retail
chain and Central, a chain of seamless malls. In the /alue
se"ment, its mar!uee brand, Bi" Ba5aar is a hypermaret format
that combines the loo, touch and feel of Indian ba5aars with the
choice and con/enience of modern retail.
*R)2$CT R$*)RT *a"e ;9
ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
In 9::C, Bi" Ba5aar opened its ;::th store, marin" the fastest
e/er or"anic e1pansion of a hypermaret. The first set of Bi"
Ba5aar stores opened in 9::; in Golata, #yderabad and
Ban"alore.
The "roup8s specialty retail formats include, boos and music
chain, 'epot, sportswear retailer, *lanet Sports, electronics
retailer, $5one, home impro/ement chain, #ome Town and rural
retail chain, Aadhar, amon" others. It also operates popular
shoppin" portal, futureba5aar.com. +uture Capital #oldin"s, the
"roup8s financial arm pro/ides in/estment ad/isory to assets
worth o/er K; billion that are bein" in/ested in consumer brands
and companies, real estate, hotels and lo"istics. It also operates a
consumer finance arm with branches in ;6: locations. )ther
"roup companies include, +uture .eneral, the "roup8s insurance
/enture in partnership with Italy8s .eneral .roup, +uture Brands,
a brand de/elopment and I*R company, +uture -o"istics,
pro/idin" lo"istics and distribution solutions to "roup companies
and business partners and +uture Media, a retail media initiati/e.
The "roup8s presence in -eisure 7 $ntertainment se"ment is led
throu"h, Mumbai0based listed company .ala1y $ntertainment
-imited. .ala1y leadin" leisure chains, Sports Bar and Bowlin" Co.
and family entertainment centres, +;9>. Throu"h its partner
company, Blue +oods the "roup operates around ;:: restaurants
and food courts throu"h brands lie Bombay Blues, Spa"hetti
Gitchen, %oodle Bar, The Spoon, Copper Chimney and .elato.
+uture .roup8s joint /enture partners include, &S0based
stationery products retailer, Staples and Middle $ast0based A1iom
Communications.
The "roup8s fla"ship company, *antaloon Retail was awarded the
International Retailer of the (ear 9::=, by the &S0based %ational
Retail +ederation, the lar"est retail trade association and the
$mer"in" Maret Retailer of the (ear 9::= at the @orld Retail
Con"ress in Barcelona.
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+uture .roup belie/es in de/elopin" stron" insi"hts on Indian
consumers and buildin" businesses based on Indian ideas, as
espoused in the "roup8s core /alue of FIndianness.8 The "roup8s
corporate credo is, FRewrite rules, Retain /alues.8
V)()$n
+uture .roup shall deli/er $/erythin", $/erywhere, $/ery time for
$/ery Indian Consumer in the most profitable manner.
M)(()$n
They share the /ision and belief that our customers and
staeholders shall be ser/ed only by creatin" and e1ecutin"
future scenarios in the consumption space leadin" to economic
de/elopment.
They will be the trendsetters in e/ol/in" deli/ery formats,
creatin" retail realty, main" consumption affordable for all
customer se"ments ? for classes and for masses.
They shall infuse Indian brands with confidence and renewed
ambition.
They shall be efficient, cost0 conscious and committed to !uality
in whate/er we do.
They shall ensure that our positi/e attitude, sincerity, humility
and united determination shall be the dri/in" force to mae us
successful.
C$re ;,ue(
IndiannessM confidence in oursel/es.
*R)2$CT R$*)RT *a"e ;B
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-eadershipM to be a leader, both in thou"ht and business.
Respect 7 #umilityM to respect e/ery indi/idual and be humble in
our conduct.
IntrospectionM leadin" to purposeful thinin".
)pennessM to be open and recepti/e to new ideas, nowled"e and
information.
,aluin" and %urturin" RelationshipsM to build lon" term
relationships.
Simplicity 7 *ositi/ityM Simplicity and positi/ity in our thou"ht,
business and action.
AdaptabilityM to be fle1ible and adaptable, to meet challen"es.
+lowM to respect and understand the uni/ersal laws of nature.
M=$r M),e(*$ne(
9::;0 Three Bi" Ba5aar stores launched within a span of 99 days
in Golata, Ban"alore and #yderabad.
9::90 +ood Ba5aar, the supermaret chain is launched.
9::B0 Central 0 India8s first seamless mall is launched in
Ban"alore.
9::60 .roup mo/es beyond retail, ac!uires staes in .ala1y
$ntertainment, Indus -ea"ue Clothin" and *lanet Retail. Sets up
India8s first real estate in/estment fund Gshitij to build a chain of
shoppin" malls.
9::<0 +uture Capital #oldin"s, the company8s financial is formed
to mana"e o/er K;.6 billion in real estate, pri/ate e!uity and
retail infrastructure funds. *lans forays into retailin" of consumer
finance products.
#ome Town, a home buildin" and impro/ement products retail
chain is launched alon" with consumer durables format, $5one
*R)2$CT R$*)RT *a"e ;6
ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
and furniture chain, +urniture Ba5aar. +uture .roup enters into
joint /enture a"reements to launch insurance products with
Italian insurance major, .eneral +orms joint /entures with &S
office stationery retailer, Staples.
9::=0 +uture .roup crosses K; billion turno/er mar. Speciali5ed
companies in retail media, lo"istics, I*R and brand de/elopment
and retail0led technolo"y ser/ices become operational.
9::C0 +uture Capital #oldin"s becomes the second "roup
company to mae a successful Initial *ublic )fferin" in the Indian
capital marets. Bi" Ba5aar crosses the ;::0store mar, marin"
one of the fastest e/er e1pansion of a hypermaret format
anywhere in the world. Total operational retail space crosses ;:
million s!uare feet mar. +uture .roup ac!uires rural retail chain,
Aadhar present in <6 rural locations.
%IG %A&AAR
Bi" ba5aar, *ondy Ba5aar was the second store to mae an
impact in the minds of the customer. It was opened in the month
of 2une, 9::C. Situated in the midst of an IT hub, it welcomes
customers with e1citin" offers and discounts. *ondy ba5aar is
amon" the few areas in Chennai that is full of acti/ities with
shoppin" malls, eat out joints, restaurants etc. This also brin"s a
lot of competition for the store. Measures are taen to retain the
customers by trainin" the employees to be polite and /i"ilant.
The /arious departments in the store are as followsM
O +ood ba5aar department
O Cash department
O *lastics, &tensils and Crocery
O Appliances
O +ootwear
O %ew Business 'e/elopments
O 'epot
*R)2$CT R$*)RT *a"e ;<
ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
O #ome -inen
O +urniture
O Apparels
O ,isual merchandise
O #uman Resource
O Administration
O @are house H -o"istics
O Maintenance
O Customer Ser/ice 'epartment
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*R)2$CT R$*)RT *a"e ;=
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S$CTI)% 0 II
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ST&'( )% IM*ACT )+ ,IS&A- M$RC#A%'ISI%.
STATEMENT OF O%JECTIVES
PRIMARY O%JECTIVES OF THE STUDY
A study on impact of merchandisin" products on the consumers8
buyin" choice with reference to bi" ba5aar
To identify the impact made by the modern promotional
techni!ues 3si"na"e8, posters etc.,4 alon" with the
traditional /isual merchandisin" strate"ies 3-i"htin" , desi"n
layout preference, product display and cleanliness4 in
consumers8 buyin" decision.
SECONDARY O%JECTIVES OF THE STUDY
Thou"h the primary objecti/e of the study is to study the impact
of /isual merchandisin" in relation to consumer buyin" decision
the secondary objecti/e of the study is to ac!uire the nowled"e
on o/er all function of Indian retail industry and its operations by
obser/in" a retail outlet ? BI. BADAAR, *ondy Ba5aar Branch,
Chennai.
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LITERATURE REVIE#
VISUAL MERCHANDISING 0 AN OVER VIE#
V)(u, 8er+hnd)()n< is the activity of promoting the sale of
goods, especially by their presentation in retail outlets. This
includes combinin" products, en/ironments, and spaces into a
stimulatin" and en"a"in" display to encoura"e the sale of a
product or ser/ice. It has become such an important element in
retailin" that a team effort in/ol/in" the senior mana"ement,
architects, merchandisin" mana"ers, buyers, the /isual
merchandisin" director, desi"ners, and staff is needed.
Many elements can be used by /isual merchandisers in creatin"
displays, includin" color, li"htin", space, product information,
sensory inputs such as smell, touch, and sound as well as
technolo"ies such as di"ital displays and interacti/e installations.
Pur9$(e
Retail professionals display to mae the shoppin" e1perience
more comfortable, con/enient and customer friendly byM
Main" it easier for the shopper to locate the desired
cate"ory of products and merchandise.
Main" it easier for the shopper to handpic the products.
Main" it possible for the shopper to co0ordinate 7
accessori5e.
Informin" about the latest fashion trends by hi"hli"htin"
them at the strate"ic locations.
VM he,9( )n-
$ducatin" the customers about the productHser/ice in an
effecti/e and creati/e manner.
$stablishin" a creati/e medium to present merchandise in
>' en/ironment, thereby enablin" lon" lastin" impact and
recall /alue.
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Settin" the company apart in an e1clusi/e position.
$stablishin" lina"e between fashions, product desi"n and
maretin" by eepin" the product in prime focus.
Combinin" the creati/e, technical and operational aspects of
a product and the business.
'rawin" the attention of the customer to enable him to tae
purchase decision within shortest possible time, and thus
au"mentin" the sellin" process.
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VISUAL MERCHANDISING STRATEGIES FOLLO#ED AT %IG
%A&AAR
A *lano"ram allows plannin" of the arran"ement of merchandise
on a "i/en fi1ture confi"uration to support sales throu"h proper
placement of merchandise by Style, )ption, Si5e, *rice points, etc.
It also enables a chain of stores to ha/e the same merchandise
displayed in a coherent and similar manner across the chain.
At bi" ba5aar they used the proper combination of each of these
elements to support ease of applicability to the consumer and
also increasin" selection 7 enhancin" the merchandise display in
a neat and or"ani5ed manner.
GIVING MERCHANDISE THE FOCAL POINT
At bi" ba5aar they showcased the major fast mo/in" products
within the o/erall display area in a way that no prospecti/e
consumer will miss a product that they were looin" for. And in
the entry sta"e itself they displayed a proper map of the shop
statin" the brief description of products a/ailable in each floor
alon" with information for rest room and customer des areas.
This helps in educatin" the consumer about the detailed products
and sa/es their time from unwanted en!uiries also helps them to
en"a"e more on their shoppin" acti/ity
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USING THE RIGHT CHOICE OF COLORS
Color is one of the most powerful tools in the ,isual
Merchandisin" se"ment. It is a /isual perceptual property. Colors
can be associated with emotions, special occasions and "ender. It
attracts attention and pulls more customers into the store. At bi"
ba5aar they utili5ed the major ad/anta"e of this factor and used it
in the entire store for the arran"ement of products. 'urin" my
project period I was put up in food ba5aar. There I noticed that in
all the shel/es they arran"ed the pacs based on color of the
pacs so that they formed color "radients "i/in" emphasi5e to
stron" color pacs and sli"htly saturatin" to the li"hter shade
pacs. This helps in "rabbin" the attention of the customer and
holdin" it for minimum of 60;: seconds and also helps them for
effecti/e scannin" between the products across the shel/es
without strainin" the eyes much.
DISPLAYTHEMES TO APPROPRIATELY SUPPORT THE
PRODUCT-
I did this project at Bi" Ba5aar durin" their bi" day sales or
Mahabachat which will happen e/ery year durin" republic day and
Independence 'ay. The sale lasts for 6 days. +or these 6 days
they decorated the store with themed displays of offers a/ailable
durin" these Mahabachat sales throu"hout the store and
windows. It sets the conte1t in an aesthetically pleasin" fashion,
presentin" them in a way that would con/ert the window
shoppers into prospects and ultimately buyers of the product.
CLEANLINESS-
%eat and clean arran"ement is the foundation of an in/itin" a
successful /isual display. A beautiful display can be ruined by a
craced si"n holder or an unclean display en/ironment. In bi"
ba5aar I noticed that they too enormous effort in cleanin" the
floor and followed an effecti/e cleanin" schedule of showcases
and display fi1tures.
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CONCEPTUALI&ATION
In conceptuali5in" the study, I ha/e attempted to build
relationship between ey /ariables i.e., /isual merchandisin"
3independent /ariable4 and buyin" beha/ior 3dependent /ariable4.
Accordin" to the literature re/iew, I came to now that li"htin",
desi"n layout, product display and cleanliness are the main
/ariables of /isual merchandi5in". It is also necessary to e1amine
the relationship between two ey /ariables and other /ariables
influenced on dependent /ariable. This would enable me to
interpret the findin"s in a more comprehensi/e manner. The
conceptual model that has been de/eloped indicatin" their
relationship is "i/en below
C$n+e9*u, M$de,
C$ur*e(>- ,isual merchandisin" and consumer decision process
for intimate apparel by 'erry -aw and 2oanne yip ? institute of
te1tile and clothin",
the #on" Gon" polytechnic uni/ersity ? #on" Gon".
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-i"htin"
'esi"n
-ayout
*roduct
'isplay
Cleanliness
,isual
Merchandi5in"
Buyin"
decision
Beha/io
r
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RESEARCH METHODOLOGY
DATA COLLECTION
The nature of research desi"n chosen by me is almost a
descripti/e one. So, as far as possible attempt was made to
"ather primary data. In that conte1t, a detailed obser/ation
criterion was administrated, facilitatin" the obser/ations process.
The primary research was carried out in BI. BADAAR ? T0%a"ar
branch, Chennai. And information was collected from customers
who were purchasin" products from the supermaret at the time
of the study. Additionally, secondary data for conceptuali5ation
and operationali5ation of the matters and other purposes were
also utili5ed throu"h te1tboos and web sites etc.
'ata were collected throu"h obser/ations from ;::: consumers
from four different a"e "roups i.e. 9:0>:, >:0B:, B:06:, 6:0<: who
waled in to the store at the time of study. There were no any
rejected forms due to field in/esti"ation and personally filled
criterion forms with obser/ation. Most of the data pertainin" to
this study ha/e been collected from customer sample drawn from
randomly.
DATA ANALYSIS PROCEDURE
'escripti/e method was used in presentin" and analy5in" the
data. 'escripti/e tools such as fre!uency counts and percenta"es
calculated for the statements on the criterion form in order to
determine the impact of in store promotions on buyin" decisions.
LIMITATIONS OF THE STUDY-
Apart from /isual merchandisin" there is the influence of other
mediums lie tele/ision, newspaper and radio used for
communicatin" the mahabachat sale at BI. BADAAR ? this has
"ot the stron" influence in buyin" decision.
Since i chose the busy retail out let lie BI. BADAAR and that too
durin" the period of bi" day sales its bit tou"h for me to do the
obser/ations in a detailed manner.
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#ow stron" a mareterH promoter is tryin" to promote the product
if it is not needed for the customer then the customer won8t be a
prospecti/e customer for that mareter
METHOD ADOPTED FOR THE E?PERIMENT
At bi" ba5aar durin" the Mahabachat sale our aim was to sell the
ma1imum combi pacs of pro/isions.
The followin" were the combi pacs bundle they madeM
Rs.BBB ? 6 "s of su"ar, rice and "olden har/est atta
Rs.666 ? 6 "s of pills burry atta, tilda lon" "rain rice and 6
liters .emini refined sunflower oil
Rs.6=6 ? 6 "s of su"ar, tilde lon" "rain rice and 6 liters
fortune refined sunflower oil
Rs.6CA ? 6 "s of su"ar, aashir/ad atta and 6 liters "old
winner refined sunflower oil
Rs.<96 ? 6 "s of hello royal basmati rice, pills burry atta and
6 liters "old winner refined sunflower oil
Rs.<BA ? 6 "s of aashi/ad atta, daawat de/ya basmati rice
and 6 liters "old winner refined sunflower oil.
+or the first > days we didn8t adopt any systems for the
promotion, we sold a/era"e of 9:: combi pacs.
+or the fourth and fifth day we were "i/en tar"ets for the sale
of combi pacs. So my team leader decided to add up e1tra
/isual merchandise to mae the customer a/ailable of those
pacs. So we decided two place one close to the customer ba"
5one there we displayed all the combi pacs in a decorated
table alon" with the si"na"e displayin" the offers in an
attracti/e way and the second place was !uite close to
customer ser/ice des the entry for the customers to the shop
we adopted the same method as earlier.
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I8/e enclosed the details for one hour of the study as it was
/ery tou"h to record the actual data for o/er a period of time.
But the end result was we achie/ed the tar"ets for all these
days. +or the fourth day we were "i/en tar"et of >:: combi
pacs and we sold around >9: pacs and for the closin" day we
"ot the tar"et of B:: and sold close to BB= pacs. )/er all the
method wored /ery well and played a /ital role in achie/in"
the tar"ets.
DATA INTERPRETATION
I89+* $: ;)(u, 8er+hnd)()n< $n +$n(u8er @u>)n<
@eh;)$r +r$(( *he <e <r$u9(
AGE GROUP 3A24A 4A25A 5A26A 6A27A IMPACT
OF VM
FREBUENCY ;<C 6AA ;>6 AC ;:::
PERCENTAGE ;<.C 6A.A ;>.6 A.C ;::
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F+*$r( )n;$,;ed )n V)(u, Mer+hnd()n< 0 @(ed $n *)8e
(9en*
FACTOR
TIME SPENT
TOTAL PERCENTAG
E
A26 (e+ A621A
(e+
1A216
(e+
SIGNAGES >; 66 ;:C ;AB ;A.B
POSTER ;=B B= CB >:6 >:.6
THEMED PRODUCT
DISPLAYS
96; 6: ;: >;: >;
INSHOP PROMOTIONS ;6 6< ;9: ;A; ;A.;
Grnd T$*, 1AAA 1AA
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VISUAL MERCHANDI&ING AND CONSUMERCS %UYING
%EHAVIOR.
This study focused on the /isual merchandi5in" and consumer
buyin" decisions. The main objecti/e of this study was to e1amine
the influence emer"ed from /isual merchandi5in" and the usa"e
of new medias into the ,M such as posta"es, si"na"e8s themed
displays for influencin" consumer8s buyin" decisions. The findin"
shows that influence emer"ed from /isual merchandisin" on
consumer8s buyin" decisions is stron". +rom this it is clearly
shown that hi"hest mean /alue of /isual merchandisin" is 6A.A
from the a"e "roup of >: 0B: shows that people belon"in" to this
"roup is hi"hly attracted towards ,M. It was represented in
stron"ly influenced score cate"ory.
#owe/er, /isual merchandisin" consists of four /ariables such as
li"htin", desi"n layout, product display and cleanliness, all of
those /ariables, ha/e considerable influence in selectin" specific
supermaret outlet. The usa"e of new mediums in a uni!ue way
has a stron" influence in buyin" decision. The majority of
respondents 3>; 7 >:.64 mentioned that posters and product
displays majority themed displays in supermarets outlets
stron"ly influence on their buyin" decisions. In the same time,
>:I of respondents ha/e indicated that product display stron"ly
influence on their buyin" decisions. Moreo/er, the fre!uency of
product display is >;:. It is more close to the hi"her le/el of
stron"ly influenced score cate"ory. The findin"s show that >:I of
respondents ha/e indicated that posters are stron"ly influencin"
their store buyin" beha/ior. The smallest /alue e!ual to ;A that
represents the moderately influenced score cate"ory. Most of the
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customers mentioned that in0shop promotions are one of the
most important factors of attracti/e in0store en/ironment of
supermaret outlets. Accordin" to the findin"s, ;A; respondents
ha/e indicated in0shop promotions will affect in a stron" and
moderate way respecti/ely on their buyin" decisions. Thou"h
si"na"e has low impact actually it helps in "ainin" the passer0by
attraction and from results it is also clearly shows that in0shop
promotions and product displays holds the consumers for a lon"
time results to the buyin" decision. Therefore, the !uantitati/e
fi"ures show that /isual merchandisin" has si"nificant impact in
buyin" decisions
In addition to the in0store /ariables, most of consumers
consider price of "oods, location, and customer ser/ice and
parin" facilities etc. @hen customers are ranin" the relati/e
importance of factors affectin" to the buyin" decisions, most of
customers ha/e "i/en first and second priority to /isual
merchandisin" as it con/eys them clearly what the product is and
whom it is meant for also at the same time it also informs the
consumers about the offerin"s and discounts associated with that
product. Second and third lar"est amount of customers
mentioned price of "oods and location of the outlets.
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RECOMMENDATIONS
The research findin"s of present study ha/e more practical
orientation and which is important for the mareters in
supermarets sector. #ence, the study recommends the
followin".
;. ,isual merchandisin" is the most important /ariable in in0
store en/ironment amon" the tested /ariables. It can
si"nificantly influence on consumer8s buyin" choice.
Therefore, application of more attracti/e /isual
merchandisin" materials in their promotions will help to
obtain better results. The li"htin", 'esi"n layout, themed
displays and cleanliness are the ey elements of /isual
merchandi5in" pro"rams.
9. Most of customers are willin" to purchase products from
super marets from <.::p.m. To A.::p.m. In weedays and
;:.::a.m. To C.::p.m. 'urin" weeends. Therefore, /isual
merchandisers can pay special attention to mae attracti/e
en/ironment in the supermaret premises and mae action
to control the rush condition.
>. Spaces between shells 3*assa"e4, cashier counters layouts,
hei"ht of shells, no. of .ondola, number of impulse counters,
sanitary facilities, hei"ht of roof are ey /ariables of desi"n
layout that helps to mae customer rela1ation, con/enience
to selection of products, reduce a/era"e waitin" time and
encoura"e the impulse purchasin" etc.
B. @hen desi"nin" the product display, Supermaret mana"ers
should pay special attention on cate"ory layout, canola
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3-i"ht ceilin"4, color separation, li"htin" bo1, cate"ory name
of product shells.
6. @hen plannin" for themed displays for special offers or for
festi/e seasons, the theme of the display and creati/ity
should match the offer for e1ample when plannin" for
/alentine special it8s /ery important that pic color should be
used for the display
<. 'ama"ed items on the shells and dust will mae bad ima"e
towards the supermaret outlets and desi"n of floor tiles can
mae si"nificance influence to feelin" of pleasure at
shoppin" time.
=. Majority of customers respond to the li"htin" more
positi/ely. They specially mentioned that li"htin" helps to
select correct products, reduce the time wasted and feel
rela1ation durin" the shoppin" tours. Therefore mana"ers
can select appropriate li"htin" system that creates
satisfaction of psycholo"ical needs of customers.
C. The bac"round music will also encoura"e customers to
spend e1tra time in supermarets. #owe/er, it has low
si"nificance relati/e to the other elements of in0store
en/ironment. It will help to encoura"e customers to mae
impulse purchasin" decisions in supermarets. And also
customers will consider the shoppin" in such a supermaret
is one of entertainin" e1ercise. The soft and classic music
are hi"hly recommended than other type of music.
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C$n+,u()$n
+rom the study it is clearly understood that the arran"ement of
the displays in an attracti/e manner initiates new interest about
the products in the minds of the customer. By desi"nin" a proper
themes and acti/atin" chan"es fre!uently one can thus be a
proacti/e retailer.
@ith "lobali5ation and the retail boom, /isual merchandisin" is
"rowin" in leaps and bounds. It is not simply concerned about
decoratin" a store beautifullyP but must also symboli5e the brand
eepin" the tar"et audience in mind.
By doin" this project am not only learned about the impact of
/isual merchandisin" but also it opened the door for me to learn
about many aspects in sales and retail includin" buyin" beha/ior
of consumers, salesmanship etc., I once than mi institute and
also future "roup for pro/idin" trainin" of this ind.
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