Store Environment and
Merchandising Mix


                                       Introduction
Retailing consists of those ...
Store Environment and
Merchandising Mix



OBJECTIVES OF STUDY:

     To determine the customer satisfaction level toward...
Store Environment and
Merchandising Mix




RESEARCH METHODOLOGY:-
A research process consists of stages or steps that gui...
Store Environment and
Merchandising Mix
           Websites
             Organizations old data




DETERMINATION OF THE...
Store Environment and
Merchandising Mix
   •The number of years over which you want to detect a trend

   •How many times ...
Store Environment and
Merchandising Mix




LIMITATIONS OF THE STUDY


1. The lack of detailed understanding of the relati...
Store Environment and
Merchandising Mix
Walk trips, especially, are difficult to model at the neighbourhood level, due to ...
Store Environment and
Merchandising Mix
Indian retail industry is the largest industry in India, with an employment of aro...
Store Environment and
Merchandising Mix


        Indian retail industry is going through a transition phase. Most of the ...
Store Environment and
Merchandising Mix
    PRICING:
       Pricing is a crucial strategic variable due to its direct rel...
Store Environment and
Merchandising Mix




2.1.4 Size of Indian retail




                              2008          20...
Store Environment and
Merchandising Mix
    Super markets
    Discount stores
    Hyper markets
    Shopping markets
 ...
Store Environment and
Merchandising Mix
Departmental Stores are expected to take over the apparel business from exclusive ...
Store Environment and
Merchandising Mix
of market. Educational qualification level of these retailers was always low. Henc...
Store Environment and
Merchandising Mix
Goal orientation – The retailer has clear cut goal and devises strategies to achie...
Store Environment and
Merchandising Mix


         Many Indian companies have entered the retail industry in India and thi...
Store Environment and
Merchandising Mix

    Category                        Market Size $ billion% Share 2006
           ...
Store Environment and
Merchandising Mix




2.1.13. Indian Organized Retail Sector's Impact on Lifestyles

         The In...
Store Environment and
Merchandising Mix
    The non-food sector, segments comprising apparel, accessories, fashion, and
li...
Store Environment and
Merchandising Mix
with 2 million employment opportunities within the year 2010.


2.1.16 Benefits to...
Store Environment and
Merchandising Mix
The growth of scope in the Indian retail market is mainly due to the change in the...
Store Environment and
Merchandising Mix
2.1.19 Functions of retailing:
      Retailers play a significant role as a condui...
Store Environment and
Merchandising Mix
Consumers can keep a small stock of products at home as they know that this can be...
Store Environment and
Merchandising Mix




     •     Arranging assortment:
          An assortment is a retailer’s selec...
Store Environment and
Merchandising Mix
receive large quantities of sacks and cases of merchandise from suppliers to reduc...
Store Environment and
Merchandising Mix
up in all its stores, service centre’s with proper equipment and trained man power...
Store Environment and
Merchandising Mix
BIG BAZAAR SUPER CENTRE


  Big Bazaar                                Hyper mart c...
Store Environment and
Merchandising Mix
Mysore Big Bazaar Super centre was opened on 26th September 2008. It is the 96th B...
Store Environment and
Merchandising Mix
1. To carry on the business of manufacturing, buying, selling, exchanging, alterin...
Store Environment and
Merchandising Mix
         o We share the vision and belief that our customers and stakeholders shal...
Store Environment and
Merchandising Mix


Future group (India) Limited, is India’s leading retailer that operates multiple...
Store Environment and
Merchandising Mix
Currently Big Bazaar stores are located only in India. Moreover the customer frien...
Store Environment and
Merchandising Mix
Future Group’s vision is to, “deliver Everything, Everywhere, Every time to every ...
Store Environment and
Merchandising Mix
       Big Bazaar is not just another hypermarket. It caters to every need of your...
Store Environment and
Merchandising Mix
over 7 million square feet of retail space, has over 1000 stores across 53 cities ...
Store Environment and
Merchandising Mix



     Staples Inc .USA
Staples, a Fortune 500 company is the world’s largest of...
Store Environment and
Merchandising Mix



     Liberty shoes limited

Liberty Shoes Limited is the only Indian company t...
Store Environment and
Merchandising Mix
2005- Fashion Station - the popular fashion chain is launched all – ‘a little larg...
Store Environment and
Merchandising Mix




2.3 PRODUCT AND SERVICE PROFILE

    a) Depot                                 ...
Store Environment and
Merchandising Mix




    Crockery:                                   f) Luggage
    1) Crockery cut...
Store Environment and
Merchandising Mix




     k) Footwear Department:                    l)Furniture Bazaar:
     1) Sp...
Store Environment and
Merchandising Mix




2.4 ORGANISATION STRUCTURE:
        Big Bazaar organization is headed by our M...
Store Environment and
Merchandising Mix




2.4.2 Organization Structure of Big Bazaar Super centre

                     ...
Store Environment and
Merchandising Mix




2.5 Competitor:
      Big Bazaar faces competition from other retailers of sim...
Store Environment and
Merchandising Mix
Singhania – IIM Lucknow National Leadership Awards, Images Retail Awards , Readers...
Store Environment and
Merchandising Mix
      At Big Bazaar, you will definitely get the best products at the best prices ...
Store Environment and
Merchandising Mix
   • Economy is developing as the employment opportunities are increasing and the
...
Store Environment and
Merchandising Mix




                            REVIEW OF LITERATURE


      Merchandise mix and t...
Store Environment and
Merchandising Mix
     The primary function of retailing is to sell merchandise. One of the most asp...
Store Environment and
Merchandising Mix
one of the means to segment the total market and appeal to a select group of consu...
Store Environment and
Merchandising Mix
   6. Consumer need for service(before, during or after the sale)

    7. Frequenc...
Store Environment and
Merchandising Mix
store exterior. Store exterior includes store entrances, main board, marquee, wind...
Store Environment and
Merchandising Mix
customers through mediating emotional states. The retail unit environment contains...
Store Environment and
Merchandising Mix
           Technology/modernization
             Cleanliness




3.2.3 Store Lay...
Store Environment and
Merchandising Mix
people and customers.
     Ambient and social elements in the store environment ar...
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
Marchindising mix and store environment at bigbazar
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Marchindising mix and store environment at bigbazar

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Marchindising mix and store environment at bigbazar

  1. 1. Store Environment and Merchandising Mix Introduction Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use. Retailing comprises of four elements customer orientation, coordinated effort, value-driven, and goal orientation. The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. The topic “store environment and merchandising mix” present in any retail store greatly influences the customer satisfaction level and the customer perception towards that store. Merchandising is one of the hot issue in todays retail competition world which is very important for all the retail store to follow that. This study was done to know that, do customers are really satisfied with the merchandising Mix present in the Big bazaar and also to find out how the store envirnoment influences the shopping behaviour of the customer and to know which section in the Big bazaar have good merchandising mix and to know how the store environment can be improved. STATEMENT OF THE PROBLEMS: “To study the store environment and merchandising mix” “To study of the store environment and merchandising mix in big bazaar super centre, to determine the satisfaction level of the customers about the store environment and analyze the merchandising mix to influence on the customer satisfaction level, and to improve the store environment to increase the sales and to attract the customers, this study helps to improve the environment of the store to reach the customer satisfaction level” and improve the merchandising in big bazaar supercentre H R Institute of Higher Education, Hassan 1
  2. 2. Store Environment and Merchandising Mix OBJECTIVES OF STUDY:  To determine the customer satisfaction level towards store environment.  To analyze how the merchandising mix influence the customer satisfaction level  To determine that, Big Bazaar has satisfied Merchandising Mix.  To analyze how the store environment can be improved. SCOPE OF THE STUDY: Customer is one whom you satisfy a want or need in return for some of payment. The payment may be money, time or may be goodwill but there is certain form of payment. Satisfaction level of a person is felt by comparing products perceived in relation to the person’s expectations. Satisfaction level is the function of the difference between perceived performance and expectations. If the performance falls short of expectations, the customer will not be satisfied. If the performance matches the expectations the customer’s are highly satisfied. If the performance is beyond his expectations the customer is excited or thrilled. Customer satisfaction is customer’s positive or negative feeling about the value that was perceived as a result of using particular organization’s offering in specific used reaction to a series of use situation experience. According to peter F. Ducker, the purpose of business is to create and then retain a satisfied customer. A society supports business because they serve its member’s by catering to their needs and leave them satisfied. If the business dissatisfied its customer’s and not only these customers stop availing service , but society at large will condemn the firm and may even penalize it to the point of its extinction. • The study is limited to the customer’s of Big Bazaar , J.L.B Road ,Mysore • Targeted customer includes those who enter the store. • The loyal customer to the store. H R Institute of Higher Education, Hassan 2
  3. 3. Store Environment and Merchandising Mix RESEARCH METHODOLOGY:- A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings, which are also dealt with and leads to a logical deduction towards the analysis and results. 1. Primary data:- a. Personal interview with dealers and user of tractors has been used as survey technique for collecting data. The dealers of different branches of tractor were also enquired about question depending on circumstances. The survey has been made by using primary data and secondary data. b. The primary sources consist of information collected from dealers of different branches and tractors owners and agriculturist. The secondary data has been collected from encyclopedias, survey of Indian agriculture, Technical journals and news paper reports. 2. Secondary data:- These are the sources contain data, which have been collected and compared for some other purpose. The secondary source consists of readily available components and already compiled statistical statement and reports whose data may be used for study. Secondary data have been collected from many sources. The major sources of secondary data are given below.  Reports/records H R Institute of Higher Education, Hassan 3
  4. 4. Store Environment and Merchandising Mix  Websites  Organizations old data DETERMINATION OF THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling SAMPLE SIZE: This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: •Project goals •How you plan to analyze your data •How variable your data are or are likely to be •How precisely you want to measure change or trend H R Institute of Higher Education, Hassan 4
  5. 5. Store Environment and Merchandising Mix •The number of years over which you want to detect a trend •How many times a year you will sample each point •How much money and manpower you have SAMPLE SIZE I have targeted 100people in the age group above 21 years for the purpose of the research. The target population influences the sample size. The target population represents the Delhi regions. . The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. DATA COLLECTION Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The firsthand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 100 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of Farmers, Businessmen, and Professionals etc. the required information was collected by directly interacting with these respondents. H R Institute of Higher Education, Hassan 5
  6. 6. Store Environment and Merchandising Mix LIMITATIONS OF THE STUDY 1. The lack of detailed understanding of the relationships between urban form and travel behaviour remains an obstacle to a more refined impact analysis: "Most research on the link between urban form and travel behaviour has relied on relatively coarse data on both urban form and travel patterns and those found aggregate- level correlation between them. [E.g., residential density or form vs. amount of travel.] It leaves open the question of the more detailed relationship between urban form and travel behaviour, that is, which characteristics of urban form influence which aspects of travel choice. 2. The challenge arises in part from a mismatch between the data gathering focus of regional transportation planning and the requirements of smaller scale analyses of land-transportation relationships and their effects on travel behaviour: In general, the absence of rich land use and urban design data at the tract level is a significant barrier to carrying out neighborhood-scale studies of how the build environment shapes travel demand. From regional travel surveys...there are rarely enough travel diary data points for conducting small-scale analyses. And while metropolitan planning organizations generally have detailed travel data, there are no readily available secondary sources that provide parcel-level or even block-level summaries of land use composition, building characteristics, or features of the walking environment. 3. a second significant limitation, made worse by the lack of data, is the problem of multi-co linearity. Characteristics of travel behaviour do not operate independently, and in fact tend to be found together Data availability, relative coarseness, the poor quality of land use data, and the need for significant improvement in its quality are commonly cited in researchers' discussions of study limitations. (E.g., Kerberos 1996, Ewing 1996, Halethorpe 1996.) H R Institute of Higher Education, Hassan 6
  7. 7. Store Environment and Merchandising Mix Walk trips, especially, are difficult to model at the neighbourhood level, due to their infrequent reporting. (Carver 1996). This means that even the travel diary coverage mentioned above would permit only COMPANY PROFILE 2.1 INDUSTRY PROFILE INTRODUCTION The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. 2.1.1 Indian Retail Industry: H R Institute of Higher Education, Hassan 7
  8. 8. Store Environment and Merchandising Mix Indian 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. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. Shopping in India has witnessed a revolution with the change in the consumer buying behaviour and the whole format of shopping also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof. Indian retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centres. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. Indian retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. Indian retailing industry has seen phenomenal growth in the last five years . Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. The “India Retail Sector Analysis report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. H R Institute of Higher Education, Hassan 8
  9. 9. Store Environment and Merchandising Mix Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges. 2.1.2 KEY CHALLENGES:  LOCATION: "Right Place, Right choice" Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: o Investigate alternative trading areas. o Determine the type of desirable store location o Evaluate alternative specific store sites  MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. H R Institute of Higher Education, Hassan 9
  10. 10. Store Environment and Merchandising Mix  PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change  TARGET AUDIENCE: "Consumer the prime mover" "Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom 2.1.3 SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India. H R Institute of Higher Education, Hassan 10
  11. 11. Store Environment and Merchandising Mix 2.1.4 Size of Indian retail 2008 2010 Percentage change Size of retail in 353 416 18% INDIA(in $billions) Share 7 12 71% organized retail Size of 78,300 Cr 2,30,000 Cr 194% organized retail(in Rs) 2.1.5 Indian retail types  Convenient stores  Branded stores  Specialty stores  Departmental stores H R Institute of Higher Education, Hassan 11
  12. 12. Store Environment and Merchandising Mix  Super markets  Discount stores  Hyper markets  Shopping markets  Convenient stores  Malls: The largest form of organized retailing today Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq. ft. and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, India bulls mega Mart, Pantaloon, Wall mart etc.  Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.  Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods  Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries etc. H R Institute of Higher Education, Hassan 12
  13. 13. Store Environment and Merchandising Mix Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!.  Marts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.  Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premix 2.1.6 TRADITIONAL RETAIL SCENE IN INDIA India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law H R Institute of Higher Education, Hassan 13
  14. 14. Store Environment and Merchandising Mix of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions. Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of India urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge. Retailing consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use. Retailing comprises of four elements customer orientation, coordinated effort, value-driven, and goal orientation. 2.1.7 Drivers of change in retailing  Changing demographics and industry structure  Expanding Computer technology  Emphasis on lower cost and prices  Emphasis on convenience and service  Focus on productivity  Added experimentation 2.1.8 Essentials of Retailing Customer orientation- The retailer makes a careful study of the needs of the customer and attempts to satisfy those needs. H R Institute of Higher Education, Hassan 14
  15. 15. Store Environment and Merchandising Mix Goal orientation – The retailer has clear cut goal and devises strategies to achieve those goals. Value driven approach- the retailer offers good value to the consumer with merchandise having the price and quality appropriate for the target market. Coordinated efforts- Every activity of the firm is aligned to the goal and is designed to maximize its efficiency and deliver value to the consumer 2.1.9 Organized Retail is evolving with changing customer aspirations Organized retailing in most economies has typically passed through four distinct phases in its evolution cycle. In the first phase, new entrants create awareness of modern formats and rise consumer expectations. In the second phase consumers demand modern formats as the markets develop – thereby leading to strong growth. As with the life cycle in any industry, the high rate of growth would lead to a stage where the market would reach maturity and all the players would strengthen their positions. This will be followed by the final phase where the market would reach saturation, the growth would be limited and for sustainable growth, retailers would explore new markets as well as evaluate inorganic opportunities. 2.1.10 Growth Factors in Indian Organized Retail sector: The growth factors in India organized sector are various but it is mainly due to the fact that India's economy is booming. Also, the rise in the working population which is young, pay- packets which are hefty, more nuclear families in urban areas, rise in the number of women working, more disposable income and customer aspiration, western influences and growth in expenditure for luxury items. All these are the factors for the growth in Indian organized retail sector. In fact, India retail industry is the fastest growing industry in India and it accounts for 10% of the country's GDP. In 2006, the retail industry in India amounted to US$ 200 billion and out of this; the organized retail sector in India amounted to US$ 6.4 billion. By 2010, the Indian organized retail sector is expected to rise to US$ 23 billion. In 2003, the India organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by malls. H R Institute of Higher Education, Hassan 15
  16. 16. Store Environment and Merchandising Mix Many Indian companies have entered the retail industry in India and this is also a factor in the growth of Indian organized retail sector. Reliance Industries Limited is planning to invest US$ 6 billion in the organized retail sector in I India by opening 1500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant. Pantaloons are planning to invest US$ 1 billion in order to increase its retail space to 30 million square feet. Such huge investment is also a factor in the growth of the organized retail sector in India. Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. The global retail giants who are entering the organized retail sector in India are: • Wall- Mart • Tesco • Carrefour SA • Metro AG The factors for growth in Indian organized retail sector are many and that’s the reason behind its massive growth. But for this to continue both the Indian retailers and the government will have to work together 2.1.11 Retail market size &share in 2006 H R Institute of Higher Education, Hassan 16
  17. 17. Store Environment and Merchandising Mix Category Market Size $ billion% Share 2006 2006 Food, Beverages and Tobacco 195 65% Personal Care 15 5% Apparel 21 7% Footwear 5 2% Furnishings 4 1% Consumer Durables & IT 14 5% Furniture 9 3% Jewellery & Watches 15 5% Medical Care and Health 8 3% Services Recreation 2 0.6% Others 12 4% 300 100% 100% 2.1.12 RETAIL MARKET COMPARISION 3% 20% 20% 30% 80% 40% 36% 55% 60% 81% 85% 40% 20% H R Institute of Higher Education, Hassan 17 0% US Taiwan Malaysia Thailand BrazilIndonesiaPoland China India Modern Channel Traditional Channel
  18. 18. Store Environment and Merchandising Mix 2.1.13. Indian Organized Retail Sector's Impact on Lifestyles The Indian organized retail sector's impact changed the lifestyle of the Indian consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money making recess for the Indian organized retail sector. With the onset of a globalized economy in India, the Indian consumer's psyche has been changed. People have become aware of the value of money. Now a days the Indian consumers are well versed with the concepts about quality of products & services. These demands are the visible impacts of the Indian organized retail sector. Since the liberalization policy of 1990, the Indian economy, and its consumers are getting whiff of the latest national & international products, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnel’s, fast modernization; enhanced availableness of retail space is the positive effects of Liberalization. 2.1.14 The growth factors of organized retail in India are:- • Increase in per capita income which in turn increases the household consumption • Demographical changes and improvements in the standard of living Change in patterns of consumption and availability of low-cost consumer credit • Improvements in infrastructure and enhanced availability of retail space • Entry to various sources of financing H R Institute of Higher Education, Hassan 18
  19. 19. Store Environment and Merchandising Mix The non-food sector, segments comprising apparel, accessories, fashion, and lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini Marts, mini supermarkets, large supermarkets, and hyper marts . Even food retailing has became an important retail business in the national arena, with large format retail stores, establishing stores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foods chains like McDonald's, KFC, beverage parlours’ like Nescafe, Tata Tea, Café Coffee and Barista, the Indian food habits has been altered. These stores have earned the reputation of being 'super saver locations'. India will be a unique business arena in whole of the global economy, for the social and economic parameters would overrule the big bang of the vivid competition. Previously mastered by the unorganized retail sector, India opened up late as an economy in 1990 until then the idea of retail formats were spread by the government. 2.1.15. Employment Generation by India Organized Retail Sector Lots of employment generation by Indian Organized Retail Sector in the near future. India is going through a radical economic change. Though it is very infant stage, people can feel the climate is changing. The unorganized retailers takes the lion's share in the Indian retail sector, but the organized retailers are growing at a good pace, and promises an increase of proportion of 9 - 10% by 2010. This is to be the largest sector after the agricultural sector. The increase in the number of consumers twinned with the introduction of organized sector has brought numerous corporate investments in retail sector. The entry of super markets, enormous departmental stores, and shopping malls has encouraged the retailers to look at new business plans of expansion. An economic growth on a monumental scale is offered by the Indian retail sector, equally in the national and international market which in turn will generate a huge source of employment and a variety of options for the consumers. The Ernst & Young's report 'The Great Indian Retail Story', anticipates that the Indian retail sector would come up H R Institute of Higher Education, Hassan 19
  20. 20. Store Environment and Merchandising Mix with 2 million employment opportunities within the year 2010. 2.1.16 Benefits to the economic growth:- • Better quality products and services would lead to better competition • More exports bring more foreign direct investments • Organized Indian etail sector would encourage tourism • Along with the employment boom there would be a vast development in the expertise of the human resource • There would remain future scope for improvements in agriculture, small, and medium scaled with the help of the Indian retail sector The present employment in the retail business is nearly 4 crores and around 20 crores depend on this sector. There is a scope of better exposure to the international standards with the entry of transnational companies, which in turn is encouraging more & more retail management programs to open up and help bridging the gap of supply & demand of talented professionals for management. 2.1.17 Scope of the Indian Retail Market: The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The Indian retail industry contributes 10% of the country’s GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. H R Institute of Higher Education, Hassan 20
  21. 21. Store Environment and Merchandising Mix The growth of scope in the Indian retail market is mainly due to the change in the consumer’s behaviour. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favourable. The scope of the Indian retail market has been seen by many retail giants and that’s the reason that many new players are entering the India retail industry 2.1.18 The major Indian retailers are: • Pantaloons Retail India Ltd • Shoppers Stop • Bata India Ltd • Music World Entertainment Ltd Judging the scope for growth in the Indian retail industry many global retail giants are also entering the Indian retail market. They are : • Tesco • Metro AG • Wall- Mart The scope for growth in the Indian retail market is seen mainly in the following cities: • Mumbai • Delhi • Pune • Bangalore • Hyderabad • Kolkata • Chennai The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort H R Institute of Higher Education, Hassan 21
  22. 22. Store Environment and Merchandising Mix 2.1.19 Functions of retailing: Retailers play a significant role as a conduit between manufactures, wholesalers, suppliers, and consumers. In this context, they perform various functions like storing, breaking bulk, holding stock, as a channel of communication, storage, advertising, and certain additional services. 2.1.20 Storing: Manufacturers usually make one or a variety of products and would like to sell their inventory to a few buyers to reduce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by collecting an assortment of goods from different sources, buying them in sufficiently large quantities, and selling them to consumers in small units. The above process is referred to as the storing process. Through this process, retailers undertake activities and perform functions that add to the value of the products and services sold to the consumer. Supermarkets in the US offer, on an average, 15,000 different items from 500 companies. Customers are able to choose from a wide range of designs, sizes, and brands from one location. If each manufacturer had a separate store for its own products, customers would have to visit several stores to complete their shopping. While all the retailers offer an assortment, they specialize in types of assortment offered and the market to which the offering is made. Westside provides clothing and accessories, while a chain like nil irises specializes in food and bakery items. Shoppers stop targets the elite urban class, while pantaloons is targeted at the middle class. 2.1.21 Breaking bulk: Breaking bulk is another function performed by retailing. The word retailing is derived from the French word retailer, meaning to cut a piece of. To reduce transportation costs, manufacturers and wholesalers typically ship range cartons of the products, which are then tailored by the retailers into smaller quantities to meet individual’s consumptions needs. 2.1.22 Holding stock: Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that allows for instant availability of the products to the consumers. It helps to keep prices stable and enables the manufacturer to regulate production. H R Institute of Higher Education, Hassan 22
  23. 23. Store Environment and Merchandising Mix Consumers can keep a small stock of products at home as they know that this can be replenished by their retailer and can save on inventory carrying costs. 2.1.23 Additional Services: Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing products guarantees, after-sales services and dealing with consumer complaints are some of the services that add value to the actual product at the retailers end. Retailers also offer credit and hire- purchase facilities to the customers to enable them to buy a product now and pay for it later. Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers. 2.1.24. Activities performed by retailers: The four major activities, as an carried out by retailers are; 1. Arrange for assortment of offerings 2. Breaking quantity 3. Holding stock 4. Extending services Arranging assortment Providing Services H R Institute of Higher Education, Hassan 23 Breaking bulk Activities of retailers
  24. 24. Store Environment and Merchandising Mix • Arranging assortment: An assortment is a retailer’s selection of merchandise. It includes both the depth and breadth of products carried. Retailers have to select the combination of assortments from various categories. The assortments must include suitable items of multiple brands, SKUs, and price points. They should be on account of physical dimensions and attributes. Retailers need to consider certain factors while devising assortment plans for those stores: profitability associated with particular merchandise mix, store image, layout and the level of compatibility between the existing merchandise. for example, food world , a leading food supermarket positioned as a one- stop shopping centre, deals in multiple product categories along with all possible variant of brands , stocks keeping units , and physical attributes in order to meet the expectations of their consumers and survive in the business . whereas , subhiksha, a grocery chain in south India has impressive assortments of only the fast moving brands and SKUs rather than all available variants in the market. Their assortment plan is governed by location, size, and store image (value for money) of their stores. • Breaking bulk: Breaking bulk means physical repacking of the products by retailers in small unit sizes according to customer’s convenience and stocking requirements. Normally, retailers H R Institute of Higher Education, Hassan 24
  25. 25. Store Environment and Merchandising Mix receive large quantities of sacks and cases of merchandise from suppliers to reduce their transportation costs. In order to meet their customers’ requirements retailers have to break or arrange the bulk into convenient units. This entire function of the retailers adds value to the offerings not only for the end customers but also for the suppliers in the value chain. Even in the earlier days of generic and commodity-based trading most of the retailers used to perform this important function in the value chain. This function receives negligible attention from the retailers now due to the introduction of new product categories, such as FMCG and ready to wear apparel. • Holding stock: To ensure the regular availability of the offering retailers maintain appropriate levels of inventory. Consumers normally depend on the retailers directly to replenish their stocks at home. Therefore, retailers, on periodic basis, maintain the required level of stocks to meet the regular or seasonal fluctuations in the demand. Retailers need to maintain equilibrium between the range and variety carried and sales which it gives rise to. Retailers have to face the negative consequences of holding unwanted level of stock for the instance too little stock will hamper the sales value, where as too much stock will increase the retailers cost of operation. Generally, in small town of India most retailers have arrangements with the nearby ware house to stock the goods. Some are so small that they have to stock only on the shop floor. Retailers in the organizer sector to a certain extent are using effective software packages for maintaining adequate level of inventory. At the same time, retailers avail of just in tine deliveries with the help of efficient consumer response systems, which reduces the burden of maintaining high level of stocks. • Extending Services: Retailers provide multiples services to immediate customers and other members of the value chain. The set of services extended by particular retailers may be part of their core product offering or it may add on to their product or service. Retailers offer credit, home delivery, after sales services and information regarding new products to their customers, thereby making the shopping experience convenient and enjoyable. At the same time they provide stocking place, reach to the ultimate costumers, and information about the concerned target segment to the suppliers. For ex: time zone, the first organizer retail chain of wrist watches in INDIA, started by leading watch manufacturers Titan, set H R Institute of Higher Education, Hassan 25
  26. 26. Store Environment and Merchandising Mix up in all its stores, service centre’s with proper equipment and trained man power.. 2.2. Company profile H R Institute of Higher Education, Hassan 26
  27. 27. Store Environment and Merchandising Mix BIG BAZAAR SUPER CENTRE Big Bazaar Hyper mart chain in India Outlet 140 out lets Parent group Future group Owner Kishore biyani (CEO) Founded 2001 Head quarter Jogeshwari, Mumbai Industry Retail Website www.bigbazaar.com Tagline Is sesata aur accha kahin nahi Big Bazaar: H R Institute of Higher Education, Hassan 27
  28. 28. Store Environment and Merchandising Mix Mysore Big Bazaar Super centre was opened on 26th September 2008. It is the 96th Big Bazaar of Pantaloon Retail [India] Ltd (Now, it has renamed as “Future Value Retail Limited”). It has around 250 employees with an occupied space of 82,055 sq.ft and catering to the needs of 13, 00,000 Mysoreans. At Big Bazaar Super centre, Mysoreans can definitely get the best product at better price. It sells variety of merchandise at affordable rates; the prices which it claims are lowest in the city. Usually, the items are clubbed together for offers to customers and it also offers weekend as well as monthly discounts. At Big Bazaar Super centre one can a find variety of Departments as shown below.  FOOD BAZAAR  GENERAL MERCHANDISE  APPARELS OR FASHION @ BIG BAZAAR  NEW BUSINESS DEVELOPMENT  DEPOT  HOME BAZAAR  NAVARAS These departments are managed by two departments. They are  OPERATOIONAL DEPARTMENT  SUPPORTING DEPARTMENTS Big Bazaar, a part of the future Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 140 outlets in a different part of India is present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the retail industry of India, moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products and accessories. 2.2.1 Objectives of the company: H R Institute of Higher Education, Hassan 28
  29. 29. Store Environment and Merchandising Mix 1. To carry on the business of manufacturing, buying, selling, exchanging, altering, importing, exporting, distributing or otherwise dealing in ready made garments an hosiery made of cotton, silk, rayon, wool, nylon, man-made fabrics, polyester, canvas, jute, leather, any other fabric coated with any chemical or not, or other preparation and other fabric. 2. To carry on the business of manufacturing, processing, dyeing, bleaching, buying, selling, exchanging, importing, exporting or otherwise dealing in yarns and textiles made of cotton, silk, rayon, wool, nylon, man-made fibres, polyester, canvas or any other substances. 3. To carry on trade or retail business in India through retail formats and including but not limited to hyper markets, super markets, mega stores/discount stores, cash & carry, departmental stores, shoppers plaza, direct to home, phone order and mail order, catalogue, through internet and other forms and multi level channels for all products an services, dealing in all kinds of goods, materials and items including but not limited to food & provisions, household goods, consumer durables, jewellers, home improvement products, footwear’s, luggage’s, books & stationery, health care and beauty products, toys and music, computers & accessories, telecom products, agric input products, furniture & furnishings, automobile & accessories, and acquiring and running food, service and entertainment centres’ including but not limited to multiplexes, cinemas, gaming centres, amusement parks, restaurants and food courts and acquiring of land or building on lease or freehold or any commercial or industrial or residential building for running and management of retail business and to acquire flat 2.2.2 GROUP VISION AND MISSION: • Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner • Group Mission H R Institute of Higher Education, Hassan 29
  30. 30. Store Environment and Merchandising Mix o We 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.  We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.  We shall infuse Indian brands with confidence and renewed ambition.  We shall be efficient, cost- conscious and committed to quality in whatever we do.  We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. • Core Values  Indian’s: confidence in ourselves.  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 Nurturing Relationships: to build long term relationships.  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. 2.2.3 The variety of product range in Big Bazaar Super centre: This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products, cosmetics, crockery, home textiles, luggage gift items, other novelties, and also food products and grocery. The added advantage for the customers shopping in Big Bazaar is that there are all time discounts and promotional offers going on in the Big Bazaar on its salvable products. H R Institute of Higher Education, Hassan 30
  31. 31. Store Environment and Merchandising Mix Future group (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 7 millions square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 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 destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices - that’s what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including Home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. Big Bazaar is a chain of hyper markets India, currently with more than 100 stores. It is owned by the Future retail India ltd, Future Group. It follows the business model as Wal-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. H R Institute of Higher Education, Hassan 31
  32. 32. Store Environment and Merchandising Mix Currently Big Bazaar stores are located only in India. Moreover the customer friendly ambiance and the organized retailing of products also make Big Bazaar one of the successful retail companies in India. 2.2.4 Future group Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction . Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Future Group (India) Limited operates over 7 million square feet of retail space, has over 1000 stores of its leading retail formats include, Pantaloon, Big Bazaar, Central, Food Bazaar, Home Town, Ozone, Depot, future Money and online retail format, futurebazaar.com. Future group includes, Future Capital Holding, Future Generally India Indus league clothing and Galaxy Entertainment that manages sports Bar, Brew Bar and Bowling Co . Future Capital Holding, the group ‘s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in consumer-related brands and hotels. The group’s joint venture partners include Italian insurance major, generally. French retailer ETAM group. Us-based stationery products retailers, Staples Inc. and UK-based Lee Cooper and INDIA-based Talwalkars, Blue Foods and Liberty Shoes. H R Institute of Higher Education, Hassan 32
  33. 33. Store Environment and Merchandising Mix Future Group’s vision is to, “deliver Everything, Everywhere, Every time to every Indian consumer in the most profitable manner.” The group considers” as a core value and its corporate credo is- Rewrite rules, Retain values. Future Group’s joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The group’s flagship company, future Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indian’s.’ The group’s corporate credo is, ‘Rewrite rules, Retain values. 2.2.5 FUTURE RETAIL: The retails businesses of Future Group in India are divided into three main categories: 2.2.5.1 Future Value Retail India Limited: The leading retail formats under this include: o Big Bazaar o Central o Food Bazaar o Home Town o E Zone o Depot 2.2.5.2 ORIGIN OF THE ORGANISATION: Big Bazaar is a chain of department stores in India, currently with 75 outlets. It is owned by the Future value Retail India Ltd Future Group. It works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur CEO of Future Group. Currently Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of department store and aims at being 350 stores by the end of year 2010. H R Institute of Higher Education, Hassan 33
  34. 34. Store Environment and Merchandising Mix Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. Big Bazaar was founded by Kishore Biyani in the year. At Big Bazaar, you will definitely get the best products at the best prices - that’s what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience Future value 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 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000 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 destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitars. 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 E-Zone 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 is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates H R Institute of Higher Education, Hassan 34
  35. 35. Store Environment and Merchandising Mix over 7 million square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, ozone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generally India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer Credit. Future Group’s vision is to, “deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian- ness’ as a core value and its corporate credo is - Rewrite rules, Retain values. 2.2.6 Joint Ventures Companies  Capital and Retail India The group is a joint venture partner in Capital and Retail India, along with Singapore- based Capital and Limited. The company provides retail management services to retail properties owned or managed by various group companies and investment funds.  Foot mart Retail Foot mart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India.  Planet Retail Holdings Ltd. The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.  Future General India Life Insurance Company Limited Future General India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. . . . H R Institute of Higher Education, Hassan 35
  36. 36. Store Environment and Merchandising Mix  Staples Inc .USA Staples, a Fortune 500 company is the world’s largest office products company and is committed to making it easy for customers to buy a wide range of office products, including supplies, technology, furniture, and business services. With over 2000 stores across the globe and $27 billion in sales, Staples serves businesses of all sizes and consumers in 27 countries. A staple invented the office superstore concept in 1986 and is head quartered, outside, Boston. Staples Future Office Products Pvt. Ltd. was formed in May ’07 with an aim to make it easy for Indian customers to run their offices by providing over 7000 products covering the entire gamut of technology, stationery, furniture.  Blue Foods Pvt Limited Blue Foods Private Limited specializes in niche multi cuisine restaurants across the country. The company operates popular restaurants and food courts Cream Centre, Bombay Blues, Copper Chimney, Spaghetti Kitchen, Noodle Bar, Gelato and The Spoon.  Talwalkars Better Value Pvt Limited Popularly known as Talwalkars, it is India's largest chain of health centres. It has 33 ultramodern branches across major cities in the country, with a membership of over 50,000  Axiom Telecom LLC, UAE Axiom Telecom is the largest and leading, authorized distributor and retailer for international brands such as Nokia, Sony Ericsson, Samsung, Motorola, Thuraya and i- mate in Middle East and Europe.  Etam Future Fashions Limited With a network of more than 3,500 sales outlets in 40 countries and regions, the Etam Group is an international player in the women's fashion market with a turnover of Euro 960.2 Million in 2006. H R Institute of Higher Education, Hassan 36
  37. 37. Store Environment and Merchandising Mix  Liberty shoes limited Liberty Shoes Limited is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding US$100 Million.  . Lee cooper Founded in 1908, Lee Cooper is the oldest jeans company in Europe having a large and enviable collection for men and 2.2.7 Major Milestones 1987- Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand. 1991- Launch of BARE, the Indian jeans brand. 1992 -Initial public offer (IPO) was made in the month of May. 1994 -The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi- brand retail outlets across the nation. 1995-John Miller – Formal shirt brand launched 1997-Pantaloons – India’s family store launched in Kolkata . 2001-Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched. 2002-Food Bazaar, the supermarket chain is launched 2004-Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ India’s first seamless mall is launched in Bangalore. H R Institute of Higher Education, Hassan 37
  38. 38. Store Environment and Merchandising Mix 2005- Fashion Station - the popular fashion chain is launched all – ‘a little larger’ - exclusive stores for plus-size individuals is launched 2006-Future Capital Holdings, the company’s financial arm launches real estate funds Kshitij and Horizon and private equity fund Indivision. Plans forays into insurance and consumer credit. Multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched across the nation. Group enters into joint venture agreements with ETAM Group and Generali. H R Institute of Higher Education, Hassan 38
  39. 39. Store Environment and Merchandising Mix 2.3 PRODUCT AND SERVICE PROFILE a) Depot b)NBD (New Business Development 1) General books 1) Watches 2) Office stationary 2) Fashion Jewellery 3) Children stationary 3) Sunglasses 4) Film VCD’s & DVD 4) Car audio systems c) Mobile Bazaar: d) Shringar 1) All kinds of mobile handsets ranging 1) Bangles from Rs 1000 to Rs 25000 of different 2) Jewellery sets company 3) Bracelets 2) All mobile accessories 4) Hair Accessories 3) All major prepaid sim cards 5) Bindies 4) All post paid connections 6) Chins 5) Cordless phones & landline phones. e) Plastics, Utensils, Crockery (PUC) Plastics: Utensils: 1) Buckets 1)Plates, Bowls, Glasses 2) Casseroles 2) Non stick Cookware’s 3) Containers 3) Kitchen Tools 4) Boxes 4) Tiffin Boxes 5) Flasks 6) Bowls 7) Jugs & sippers 8) Bottles & Mugs H R Institute of Higher Education, Hassan 39
  40. 40. Store Environment and Merchandising Mix Crockery: f) Luggage 1) Crockery cutlery 1)Travel bags 2) Table Materials /Napkins 2) Trolleys 3) Dinner sets 3) School & College Bags 4) Wine, Juice Glasses 4) Ladies purse & bags 5) Suitcase g) Ladies apparels h) Men’s apparels 1) Sarees 1)Formal Shirts & Pants 2) Dress Materials 2) Casual Shirts & Pants 3) Under garments 3) Party Wears 4) Nightwear 4) Fabrics [cut pieces] 5) Western wear’s 5)Other Accessories 6)Suits & Blazers 7) Ties 8) Jeans Pants 9)Belts, Handkerchiefs 10)Ethnic wears i) Infants Section: j)Toys Department 1) Shirts, 1)Soft Toys 2) Baniyans, 2) Board games 3) Jhabas 3) Dolls 4) Vests 4) Educational toys 5) Bibs feedings 5) Remote Cars , bikes 6) Bed items 6) Sports items: Cricket bats, balls, badminton & tennis 7) Baba suits, Frocks rackets, hockey bats etc 8) Diapers, Pampers 7) Cycles 9) Other baby accessories H R Institute of Higher Education, Hassan 40
  41. 41. Store Environment and Merchandising Mix k) Footwear Department: l)Furniture Bazaar: 1) Sports shoes 1)Dining Table 2) Casual shoes 2) Bedroom Accessories 3) Formal shoes 3) Hall Accessories (Sofa sets, Chairs, 4) Men’s sandals Tables etc) 5) Ladies sandals 4) Mattresses 6) Ladies casuals 5)Computer Table 7) Ladies Fancy slippers 6)Wardrobe, Almirah etc 8)Children shoes m)Food Bazaar Beverages: Staples Dept: 1)Soft drinks, 2)Mineral water, 3) 1)Dals, Rice, Wheat, Ragi etc Health drinks, 4) Fruit Juices 2) Atta, Rava items, Sugar, Salt etc Fruits & Vegetables: 3) Cooking Oils, Masala items All kinds of fruits and vegetables at the 4) Dry fruits lowest price. 5) Ready to cook foods & mixes n) Process Dept: o)Electronic Bazaar 1)Breakfast Cereals 1)Televisions, DVD Players 2) Ready to eat 2) Home Theatre Systems, Audio 3) Corn flakes, Chips, Soups, Bread Systems items, Pickle 3) Refrigerators 4) Instant mixes 4) Washing Machines 6) Spreads 5) Microwave Owen 6) Mixers, Irons & Grinders This is complemented by cafes, food stalls, entertainment, personal care and various beauty related services. Promotions and events are an integral part of Big Bazaar service offering to customer, which helps Big Bazaar create a unique shopping experience. H R Institute of Higher Education, Hassan 41
  42. 42. Store Environment and Merchandising Mix 2.4 ORGANISATION STRUCTURE: Big Bazaar organization is headed by our Managing Director. It follows an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encouraged to think customer first. They are empowered to run their respective departments like ‘small business owners’ 2.4.1 FUNCTIONAL DEPARTMENT: Board of Directors Managing Director Head Head – Retail Head Head Risk Business Projects Operations Manage ment Head Chief-Finance Head- Head Marketin & Company human information g resources technology H R Institute of Higher Education, Hassan 42
  43. 43. Store Environment and Merchandising Mix 2.4.2 Organization Structure of Big Bazaar Super centre Store manager Asst store manager Dept manager Human Sal resource Info es manager ma Asst dept, manager nag Visual Secur er Customer ity service dept merchandising Team leader Cashi Administratio ers Asst Dm n Marketing Team member Maintenanc e House keeping H R Institute of Higher Education, Hassan 43
  44. 44. Store Environment and Merchandising Mix 2.5 Competitor: Big Bazaar faces competition from other retailers of similar products and services. These include stand alone stores in the organized and unorganized sector, as well as other chains of stores including department stores. Big Bazaar focus on offering customers a vast variety of products and services catering to their diverse requirements and needs. It is because of this and the service and ambience that Big Bazaar offer, that Big Bazaar believes Big Bazaar have been able to create a differentiation in the mind of the customer vis-à-vis our competitors where similar products and brands are available. 2.5.1 Competitors for Big Bazaar: 1. Food World 2. Reliance Fresh 3. More 4. Other stores 2.6. AWARDS AND RECOGNITION 2009 CNBC Awaaz Consumer Awards 2009, Images Fashion Forum 2009, Coca-Cola Golden Spoon Awards 2009 2008 Indian Retail Forum Awards 2008, The INDIASTAR Award 2008 , Retail Asia Pacific 500 Top Awards 2008, Coca-Cola Golden Spoon Awards 2008, The Reid & Taylor Awards For Retail Excellence 2008 2007 Images Retail Awards, National Retail Federation Awards, World Retail Congress Awards, Hewitt Best Employers 2007, PC World Indian Website Awards Reader’s Digest Trusted Brands Platinum Awards. 2006 Retail Asia Pacific Top 500 Awards, Asia money Awards, Ernst & Young Entrepreneur of the Year Award, CNBC Indian Business Leaders Awards, Lakshmipat H R Institute of Higher Education, Hassan 44
  45. 45. Store Environment and Merchandising Mix Singhania – IIM Lucknow National Leadership Awards, Images Retail Awards , Readers’ Digest Awards , CNBC Awaaz Consumer Awards, Reid & Taylor Awards for Retail Excellence 2005 Images Retail Awards 2005, DAKS London 2004 Images Retail Awards 2004, Reid & Taylor and DLF Awards 2003 Indian Express Award 2.6.1 MYSORE BIG BAZAAR SUPER CENTRE ACHIEVEMENTS  Best store award in south zone two times  Best look and feel  Best electronic department  The significant features of Big Bazaar Super centre: Shopping in the Big Bazaar is a great experience as one can find almost everything under the same roof. It has different features which caters all the needs of the shoppers. Some of the significant features of Big Bazaar are: • The Food Bazaar or the grocery store with the department selling fruits and • vegetables. • There is a zone specially meant for the amusement of the kids • Furniture Bazaar or a large section dealing with furniture’s • Electronics Bazaar or the section concerned with electronic goods and cellular phones. • FutureBazaar.com or the online shopping portal which makes shopping easier as one can shop many products of Big Bazaar at the same price from home. • Well regulated customer care Telecalling services. • Will provide better offers on all its products in the entire year. Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. H R Institute of Higher Education, Hassan 45
  46. 46. Store Environment and Merchandising Mix At Big Bazaar, you will definitely get the best products at the best prices - that’s what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. 2.7 SWOT ANALYSIS:  Strengths:- • EDLP [ Every Day Low Pricing] • Point of Purchase promotions • Experienced marketing team & executive staff. • Strong culture, ethics and values are followed • Emphasis on providing total customer satisfaction • High brand equity in evolving retail market • State-of-the-art infrastructure of big bazaar outlet • Point of purchase promotion to increase the purchase • Variety of stuff under single roof • Increase sales with the help of healthy competition between different department • Maintains good employer-employee relation  Weakness:- • Failing revenue/ Sq.ft • Unable to meet store opening targets. • General perception. • Unavailability of popular brand items with regard to clothing.  Opportunities:- • Population of the country is growing where the scope of market is kept on increasing for the retail sector. • Organized Retail, presently nearly 5% in India so it acts as a great opportunity to the organization for its growth. • Evolving consumer preferences. H R Institute of Higher Education, Hassan 46
  47. 47. Store Environment and Merchandising Mix • Economy is developing as the employment opportunities are increasing and the income of the people is also increasing which increases life standards of people.  Threats:- • Stiff Competition • Advancement of technology day by day. • Government policies. • Unorganized Retail sector • Foreign direct investment cause more problems in future because of that many mergers and acquisition are happening in Indian retail sector H R Institute of Higher Education, Hassan 47
  48. 48. Store Environment and Merchandising Mix REVIEW OF LITERATURE Merchandise mix and the store envirnoment present in any retail store greatly influences the customer satisfaction level and the customer perception towards that store. Merchandising is one of the hot issue in todays retail competition world which is very important for all the retail store to follow that. This study was done to know that, do customers are really satisfied with the merchandising Mix present in the Big bazaar and also to find out how the store envirnoment influences the shopping behaviour of the customer and to know which section in the Big bazaar have good merchandising mix and to know how the store environment can be improved.  Role of analysis: 1). The merchandising mix i.e. product variety , assortment and units are neutrally satisfied the customer . 2). Customer does not finding all the brands that they expected in the Big bazaar especially in the apparel section. 3). Customer are more satisfied with the merchandising present in the food bazaar and house hold utensils. 4). Customers shop more in food bazaar than any other section. 5). The store envirnoment like fixtures, fitting rooms , rest rooms , customer movement have to improved to increase the customer satisfaction level. 6). The customer are dissatisfied with the external environment like parking areas. 7). The customers are more satisfied with internal environment than the external environment. 3.1. MERCHANDISING: H R Institute of Higher Education, Hassan 48
  49. 49. Store Environment and Merchandising Mix The primary function of retailing is to sell merchandise. One of the most aspects of the retail business is to decide the merchandise mix and quantity to be purchased. Merchandise management is the process by which a retailer attempts to offer the right quantity of the right product at the right place and time while meeting the retail firm’s financial goals. Merchandise management is the analysis, planning, procurement, handling and control of the merchandise management. Merchandise analysis expects retailer’s to identify the target segment prior to determining their needs in order to buy the required merchandise. Merchandise planning consists of establishing objectives and devising plans for obtaining merchandise well in advance of the selling season. Merchandise control involves designing the policies and procedure in order to determine whether the stated objectives or goal have been achieved. Planning is the process of establishing performance guidelines, whereas control is the process of checking how well a management is following those guidelines. The objectives range from the corporate strategies objectives in the micro level objectives regarding the merchandising assortment, stocking, and re-order. The merchandising mix represents the full range of mixture of products a retailer offers to its target consumers. Developing the merchandising mix provides a retailer with one of the means to segment the total market and appeal to a select group of consumer segments. Merchandise mix management covers decisions on a host of key parameters, such as merchandise variety, assortment, and support. This would lead to an appropriate combination of product lines, product items, and products units. Merchandising variety is the number of different products lines that a retailer stocks in the store. Merchandising assortment refers to the number of different product items, the retailer stocks within a particular product line. Merchandise support deals with the planning and control of the number of units the retailer should have on hand to meet the expected sales for a particular product. The merchandising mix represents the full range of mixture of products a retailer offers to its target consumers. Developing the merchandise mix provides a retailer with H R Institute of Higher Education, Hassan 49
  50. 50. Store Environment and Merchandising Mix one of the means to segment the total market and appeal to a select group of consumer segment. Merchandise mix management covers decisions on a host of key parameters, such as merchandise variety, assortment, and support. This would lead to an appropriate combination of product lines, product items, and products units. Merchandise variety is the number of different product lines that a retailer stock in the store. Merchandise assortment refers to the number of different product items the retailer stocks within a particular product line. Merchandise support deals with the planning and control of the number of unit the retailer should have on hand to meet the expected sales for a particular product. Merchandise budget is a financial tool for planning and controlling the retailers merchandise inventory investment. Merchandising mix Support Variety Assortment 3.1.1 CRITERIA OF MERCHANDISE CLASSIFICATION: 1. Unit value 2. Significance of each individual purchase to the customer 3. Time and effort spent in purchasing by consumers 4. Rate of technological change( including fashion change) 5. Technical complexity H R Institute of Higher Education, Hassan 50
  51. 51. Store Environment and Merchandising Mix 6. Consumer need for service(before, during or after the sale) 7. Frequency of purchase 8. Rapidity of consumption The variety of the merchandising mix refers to the number of different merchandise lines that the retailer stocks in the store or department. Such lines are men’s wear, women’s wear, children wear, clothing, toys, appliances, and house hold goods. 3.2. STORE ENVIRONMENT: Store environment is critical to a retailer, because it directly affects consumers'' total shopping experience. It is also a determining factor in affecting consumers'' store choice decision for shopping. Hence, the management of the physical environment is considered as an important element in contributing to retail financial success and a valuable shopping experience for the customer. The store ''atmosphere'' is defined as the effort to design buying environments to produce specific emotional effects in the buyer than enhancing purchase probability. In- store environment stimuli are positively related to the level of pleasure experienced in the store. Pleasure refers to the degree to which the consumer feels good and satisfied in the store environment. Satisfaction can help consumers to identify that a store is worthy of their loyalty. Atmospherics is referred to as a store’s physical characteristics that are used to develop the retail unit image and draw customers. It describes the physical elements in a store’s design that appeals to consumers and encourages them to buy. Atmospherics can be classified in terms of exterior and interior atmospherics. Exterior atmospherics refers to aspects like store front, display windows surrounding businesses, look of the shopping centre, etc. It is considered important to attract new customers. Interior atmospherics refers to aspects like lighting, colour, dressing room facilities, etc. It helps to enhance the display and provides customers with relevant information. 3.2.1. Exterior Atmospherics: Exterior atmospherics refers to all aspects of physical environment found outside the store. It significantly affects store traffic and sales. It is generated by all aspects of the H R Institute of Higher Education, Hassan 51
  52. 52. Store Environment and Merchandising Mix store exterior. Store exterior includes store entrances, main board, marquee, windows, lighting, etc. Storefront of very retail store exhibits a specific image such as traditional, up market, or discount store to the shopper. In competitive markets, retailers can use the storefront as a strong differentiating factor and attract and target new customers. Storefront is an important decision criterion for the new shoppers in unknown retail markets. Even many small town retailers try to balance and harmonize the various aspects of their store design including the storefront with consistent colours and nature of wood work. • Elements of Exterior Atmospherics:  Store front  Visibility  Marquee  Uniqueness  Entrances  Surrounding stores  Display windows  Surrounding area  Height of building  Parking facilities  Size of building Four key aspects of exterior atmospherics retail store entrance, display windows, marquee or signboard, and parking facilities – are discussed below. 3.2.2 Interior Atmosphere: Interior atmospherics refers to all aspects of the physical environment found inside the store. Interior atmospherics affects sales, time spent in the store, and approach/ avoidance behaviour of the target segment. Point-of-purchase interaction and retail unit. Some key ingredients of interior atmospherics are flooring, music, interior store design, level of cleanliness, etc. The layout and design of a retail centre and store (e.g., traffic flow, allocation of floor space, layout of merchandise, passages, aisle, traffic patterns, etc.) have been found to affect unplanned purchases and perceptions of price value. A store’s physical environments have an influence on shopping behaviour of H R Institute of Higher Education, Hassan 52
  53. 53. Store Environment and Merchandising Mix customers through mediating emotional states. The retail unit environment contains various stimuli that might be perceived by the customer’s senses and each stimulus offer many options with regard to shopping behaviour. For example, store music varies by volume, tempo, pitch and texture, and by the specific songs played. In addition, various individual stimuli can be combined to create a unique atmosphere. Interior Store Design Conventional retailers design their stores in ways that produce specific emotional effects on shoppers, which in turn influence their shopping behaviour in favour of the retail store. Gosh (1994,) defines retail atmosphere as the psychological effect of feeling created by a store’s design and its physical surroundings. Furthermore, retail store image is one of the most powerful components of retail positioning strategy and one of the most powerful tools in attracting, influencing, and satisfying consumers. A retailer or manager is expected to design or redesign a store, with an objective of influencing customer’s preferences, buying decisions, and shopping behaviours. Retail store design covers store layout and space planning details issues. It is a well-known fact that store layout decisions certainly determine the issue of the amount of time that customers spend for shopping. Interior design of stores is evolved by an intelligent combination of the following factors:  Flooring  Colours  Lighting  Scents, sounds  Fixtures  Wall textures  Temperature  Width of aisles  Dressing facilities  Vertical transportation  Dead areas  Personnel  Self – service  Merchandise  Prices (levels and displays)  Cash register placement H R Institute of Higher Education, Hassan 53
  54. 54. Store Environment and Merchandising Mix  Technology/modernization  Cleanliness 3.2.3 Store Layout: Store layout refers to the interior retail store rearrangement of departments or groupings of merchandise. It is important of entailers to evolve a customer-friendly layout. This involves paying adequate attention to factors such as expected movement of the customers visiting the store and space allotted to customers to shop, and making adequate provision for merchandise display. These concerns are important as they contribute to the capital cost of the retail firm and also the overall image of the store. Customer-friendly store layout is likely to motivate the shoppers to move around the store and shop more than what they had planned for. In India, many of the independent retailers have no or limited provision for customer movement within a store. Merchandise is displayed on the shelves and some beyond the vision of the customers. These are provided to them across the counter on request. For some of the smaller stores, at times, counters are placed at the store entrance. This is very common practice with kirana stores, garment stores, and medical stores. An example of such a store is Subhiksha. It reduces operational cost, wastage of space, and theft. This is in consonance with their strategy of providing merchandise at low prices to their customers. On the contrary, many organized retail firms provide sufficient space within the store for customers and create a layout to facilitate a specific pattern of traffic movement. In most of the stores customers expect comfortable space for movement and selection of goods they wish to buy or evaluate. Store layout depends on the kind of merchandise display planned by the retail management within the store. The placement of racks and shelves within the store determines the natures of space left for the customers to enjoy and organize their shopping. Too many racks and Shelves in the store placed in a disorganized manner confuses the customer, makes it difficult for him to locate a particular merchandise, and hinders the movement of sales H R Institute of Higher Education, Hassan 54
  55. 55. Store Environment and Merchandising Mix people and customers. Ambient and social elements in the store environment are more likely to affect consumers to make inferences about merchandise and service quality. The ambient factors of a store refer to the background character of the environment that tends to influence consumers at a subconscious level; this includes elements such as temperature, lighting, music etc. Ambient conditions are especially noticeable to consumers. Undesirable ambient conditions can cause dissatisfaction if the attention of the consumer is heightened. The store design factor such as functional elements that include layout, merchandise display, architecture, materials and colours can contribute to customers purchase decision. The social factor also plays an important role where ''service manners of sales people'' as well as ''number of people in the store'' are considered important. The services are intangibles, therefore their quality is difficult to be evaluated by the client and building a strong brand image is a challenging task. The services are distributed using diverse channels such as: company retail stores, dealers, franchise. The service Companies are interested in the environment of the location, not only to increase sells but also in order to boost the image of the company. The excitement that a retail store induces to a client can modify the perception of the brand. The client values more a brand that distributes its services in a luxury, high-tech retail environment than a discount store. In this paper we intended to investigate the techniques that a service company is using to enhance the brand image in retail Location. For this purpose, the various aspects of the retail store design and environment were analyzed in connection with the customer-based brand Equity model. This original association will offer the services companies’ new Perspectives on how to leverage brand image. The design and environment of the retail store represent the aggregate elements which determine the style of the material framework of the location and create a special atmosphere for the client. The creation of a favourable environment is an art which requires considerable financial and time efforts. Once created, the general atmosphere is not easily modified. To the service companies, the physical atmosphere and the manner in which H R Institute of Higher Education, Hassan 55

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