United Color Of Benetton (analyzing of store layout, design and visual merchandise)

Summer Internship Project Report
On
“Analyzing the store layout, Design and Visual Merchandise in
retail sector with reference to United Colors of Benetton”
UNITED COLORS OF BENETTON
Submitted in partial fulfillment of the requirements for the Two Year
Full Time Post Graduate Diploma in Management
BY
PRINCE HUBERT KHONGLAH
ROLL NO –DM16M121
BATCH-2016-18
UNDER GUIDANCE OF
1. INTERNAL MENTOR NAME: Mr. Animesh Kumar
2. EXTERNAL MENTOR NAME: Mr. Ajay Giri (Store
Manager)
P.I.B.M - Pune Institute of Business Management
Pune

Summer Internship Report, Pune Institute of Business Management, Pune
CERTIFICATE OF ORIGINALITY
I hereby declare that this Summer Internship Project is my own
work and that, to the best of my knowledge and belief, it
reproduces no material previously published or written that has
been accepted for the award of any other degree of diploma,
except where due acknowledgement has been made in the text.
Prince Hubert Khonglah
DM16M121
Date: 16/08/17
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(On Organization Letterhead)
Date: 16/08/17
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. Prince Hubert Khonglah of P.I.B.M-
Pune PGDM Batch 2016-18 has successfully completed his/ her
summer internship under the guidance of Mr. Ajay Giri (External
Mentor’s) for a duration of 8 weeks, from 20th
May to 20th
July
2017.
During his tenure with us, we found him good with the interest
shown by him
We wish him/ her all the very best for future endeavours.
Ajay Giri
Store Manager
Signature
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CERTIFICATE
This is to certify that Mr. Prince Hubert Khonglah PGDM (2016-
18 Batch) a student of P.I.B.M- Pune Institute of Business
Management, Pune has undertaken the project on “Project Title”.
The survey, data collection, & analysis work for preparing the
project has been carried out by the student in partial fulfillment of
the requirements for the award of PGDM, under my guidance and
supervision.
I am satisfied with the work of Mr. Prince Hubert Khonglah
Date: 16/08/17
Faculty Mentor’s Name:
Animesh kumar
(Signature)
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ACKNOWLEDGEMENT
First of all I want to thank God for his grace and for giving me good health and strength
throughout the completion of this project.
I would like to thank the college for giving me this opportunities to work in the
corporate world which I have earn a knowledge that I’m seeking for
I would also like to thank the Internal Mentor Mr. Animesh Kumar and External Mentor
Mr. Ajay Giri for encouraging and inspiration me during the entire duration of the
project as it will not be successful without their guidance
Finally, I want to thank my family, especially my parents for all their support and care,
and all my dearest friends and classmates who encourage, support and help, had enabled
me to overcome all the obstacles and difficulties while doing this project.
God bless them all
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1 EXECUTIVE SUMMARY
Project Title: “Analyzing Store Layout, Design and visual merchandise with reference to
United Color of Benetton”
I have done my summer internship at United Color of Benetton. The internship duration
is for two months with two assigned location (Jangli Maharaj Road and Central Mall
Garware) and it involved a lot of learning activities all around. I was needed to carry a
research which involves a study to know about the retail store layout, design and visual
merchandise, and market research is prepared on how to increase sales and its
competitors and the major factor which influences in consumer buying behavior. The
research involves, preparing questionnaire, sampling, collecting data and analyses the
data through SPSS software.
Below is the executive summary of my report which contained all the details of what all
I did and a few recommendations at the end.
Benetton entered the Indian market in 1991-92, as a 50:50 joint venture with the DCM
Group in Delhi, and launched its flagship label UCB. Effective 22nd December 2004,
Benetton became a wholly owned subsidiary of the Benetton Group, Italy. UCB is today
a leading brand in India with more than 106 stores across 45 cities in India.
The retail network is a mix of owned and franchised stores. Many of these are mega
stores, with size more than 4,500 square feet and an increased focus on apparel for men,
women and kids. The company is also looking at expanding the brand in the Asia Pacific
region and has recently opened stores in Male, Karachi and Kathmandu. Which indicate
that Benetton needs an attention towards layout, Design and visual merchandise for the
future growth and attraction towards the customer.
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2 TABLE OF CONTENTS
..................................................................................................................................................... 5
ACKNOWLEDGEMENT.....................................................................................5
1 EXECUTIVE SUMMARY.........................................................................................................6
2 Table of Contents......................................................................................................................7
3 Sector information.....................................................................................................................8
3.1 Retail sector........................................................................................................................8
3.2 Indian Retail Market .........................................................................................................8
3.3 Sector's High Growth Potential is Attracting Investors.................................................10
3.4 Organised and Non-Organised Retail..............................................................................11
4 COMPANY PROFILE.............................................................................................................12
4.1 Global overview of Benetton.............................................................................................12
4.2 Benetton in India..............................................................................................................13
4.3 Benetton's outlets in India...............................................................................................13
4.4 Benetton's India operations ............................................................................................14
5 product offered by Benetton....................................................................................................14
6 CSD (Consumer Service Desk)...............................................................................................15
7 STP (Segmenting, Targeting and positioning).......................................................................15
8 SWOT Analysis.......................................................................................................................16
8.1 Strength............................................................................................................................16
8.2 Weakness..........................................................................................................................16
8.3 Opportunities....................................................................................................................16
8.4 Threats..............................................................................................................................17
9 Competitors.............................................................................................................................17
10 How to increase sale in ucb...................................................................................................18
11 STORE LAYOUT, DESIGN AND VISUAL MERCHANDISE............................................19
12 Objective of the Study...........................................................................................................25
13 Research Methodology..........................................................................................................26
14 Data Analysis and interpretation........................................................................................28
15 Analysis, Conclusion, and Recommendations (As three sub chapters) – ...........................36
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15.1 FACTOR ANALYSIS (SPSS SOFTWARE)..................................................................36
16 learnings:...............................................................................................................................38
17 CONCLUSION:....................................................................................................................39
18 RECOMMENDATION:........................................................................................................40
19 References..............................................................................................................................41
20 Annexure:..............................................................................................................................42
3 SECTOR INFORMATION
3.1 Retail sector
The word „retail means the sale of goods or commodities in small quantities directly to‟
consumers. Retailing can be defined as a distribution channel function, where an
organization, buying the products from supplying firms or manufacturing the products
themselves, sells these directly to consumers. Many a times, consumers buy from an
organization who is not the manufacturer of the products, rather it is a reseller of the
products obtained from others. However, in some cases we may find the product
manufacturers operating their own retail outlets in a corporate channel arrangement.
Retailing is beneficial to both consumers and sellers. On the one hand it enables the
consumers to purchase small quantities of an assortment of products at a reasonably
affordable price, on the other it offers an opportunity to suppliers to reach their target
market. Through retail promotions they can build product demand and provide consumer
feedback to the product marketer. Thus retail consists of sale of goods and services from
individuals or businesses to the end-user. A retailer earns profit by purchasing large
quantities of goods and services either from manufacturers directly or through a
wholesale and he is a part of an integrated system called the supply chain.
3.2 Indian Retail Market
The size of Indian retail market in 2010 was estimated at US$ 353 billion and by 2014, it
is expected to increase up to US$ 543 billion .Further, the estimated value of current size
of Indian retail market is about 500 billion USD and by 2020 its value is pegged to be at
1.3 trillion USD. Over 20 per cent of India's gross domestic product (GDP) is
contributed by retail sector and in total employment it contributes eight percent. India is
Home to one of the top five retail markets in the world and in retail, India offers
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immense scope of growth and opportunities. According to A T Kearney’s Global Retail
Development Index (GRDI) 2013, the global slowdown has impacted India s growth‟
also and as a result India’s growth rate fell from a 10-year average of 7.8 percent to 5
percent and in GRDI ranking India slipped to 14th. India’s previous low ranking was 6th
place in the inaugural Index in 2002 but in 2009 it stood first. However the GRDI report
points out some positive factors leading to optimistic expectations.
These factors are: strong long-term fundamentals and young, increasingly brand- and
fashion-conscious population. The report projects 14 to 15 percent growth per year in
retail sector through 2015 and due to more urbanization and more potential new
investment by retailers, expects a higher proportion of modern retail which is 7 percent
in 2012[6].
In, Sector profile of Indian retail sector”, FICCI (2011) also projects an optimistic‟
future. An important contributory factor in growth of India’s retail sector is growing
middle class which is expected to increase from 21 million households today to 91
million households in 2030.It expects, 570 million people to live in cities in 2030, which
is nearly twice the population of the United States today. High and growing domestic
consumption is another factor expected to contribute in potential growth of India’s retail
ssector. India's modern consumption level which presently is US$ 750 billion may
double within five years to US$ 1.5 trillion. Thus, India’s huge population with large
proportion of young population, high potential growth in consumer expenditure, the
macro trends for the sector look favorable. Optimism about high potential of growth in
organized retail in India has also been shown by Equity master. The views expressed
here indicate that in past, a large part of India’s consumption needs was accounted by
food but now transition is taking place from traditional retail to organized retailing due
to changing consumer expectations, demographic mix, etc. The new generation
appreciates mall culture which makes it convenient to shop with multiplicity of choice
under one roof (Shop- in Shop). Over the long run, these are expected to be the growth
drivers of organized retailing in India. Further, FICCI states that despite the downturns, ,
the organized retail market in India is growing exponentially due to growing consuming
classes resulting from economic growth and organized retail is attracting more and more
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existing shoppers into its open doors. By 2015, organized retail segment is estimated to
grow (at a rate of almost 30 %,) at a much faster pace than the overall retail market
which is forecast to grow by 16% in the same period. The Government’s initiative to
allow 51 per cent foreign direct investment (FDI) in multi-brand retail has been a subject
for debate for quite some time now. Indian retail sector has therefore attracted the
attention of people from various fields including academia, industry, research
organizations etc.
3.3 Sector's High Growth Potential is Attracting Investors
• India has occupied a remarkable position in global retail rankings; the country
has high market potential, low economic risk, and moderate political risk
• India’s net retail sales are quite significant among emerging and developed
nations; the country is ranked third (after China and Brazil)
• Overall, given its high growth potential, India compares favourably with global
peers among foreign investors
• With investment of around US$ 511.76 billion, the first half of 2016 witnessed
the highest annual private equity (PE) in the retail sector, since 2008.
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3.4 Organised and Non-Organised Retail
The Organized retailing refers to the trading activities undertaken by licensed retailers
that are those who registered themselves for sales tax, income tax, etc. These include the
corporate –backed hypermarkets and retail chains and also the privately owned large
businesses. The various forms of organized retail are
a) Hypermarkets: They store products of multiple brands comprising food items and
non-food items.
b) Supermarkets: These are self-service stores selling food and personal care products.
Unorganized retailing. “Unorganized retailing” is defined as an outlet run locally by the
owner or caretaker of a shop that lacks technical and accounting standardization. The
supply chain and sourcing are also done locally to meet local needs.
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4 COMPANY PROFILE
4.1 Global overview of Benetton
Benetton, one of the largest clothing manufacturers in Italy, has a global presence across
120 countries and more than 5,000 stores
The Benetton Group, established in 1965 by the Benetton family in Ponzano Veneto, in
north-east Italy, is today one of the largest clothing maker in Italy. While it’s initial few
years of operations witnessed expansion within Italy, the company ventured outside Italy
for the first time in 1969 when it opened its store in Paris. Later it expanded to the US in
1980 and then to Japan in 1982. On its 40th anniversary in 2005.
Benetton was present in 120 countries, with more than 5,000 stores. Europe continues to
be the largest market and constitutes nearly 85 per cent of global sales. The Asian and
Australian markets come next, with a contribution of roughly 10 per cent to sales,
followed by the Americas at 4.2 per cent, with the rest of the world having the remaining
share.
Benetton's clothing, primarily casual knitwear and sportswear for men, women, and
children, are retailed through franchised stores, department stores and mega stores. Other
products include sunglasses, watches and shoes. Though the development of its stylish
collection is done in Europe, the company's designer’s travel around the world collecting
ideas and putting them together in order to create a collection that is acceptable to all the
markets.
The collection is a result of inputs on fabrics and styles from different designers, which
results in one main collection. Significant care is taken to look into individual markets
and introduce styles that will suit the requirements of these markets, but a large
percentage of the collection is core and uniform across most markets
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4.2 Benetton in India
Benetton entered the Indian market in 1991-92, as a 50:50 joint venture with the DCM
Group in Delhi, and launched its flagship label UCB. Effective 22nd December 2004,
Benetton became a wholly owned subsidiary of the Benetton Group, Italy. UCB is today
a leading brand in India with more than 106 stores across 45 cities in India.
The retail network is a mix of owned and franchised stores. Many of these are mega
stores, with size more than 4,500 square feet and an increased focus on apparel for men,
women and kids. The company is also looking at expanding the brand in the Asia Pacific
region and has recently opened stores in Male, Karachi and Kathmandu.
With the Indian market increasing in strategic importance for the Benetton Group at the
global level, its fashion label Sisley was launched in India in 2006.The first outlet, nearly
3,500 square feet in size, was opened in Delhi and features a collection for men and
women.
4.3 Benetton's outlets in India
Benetton India has a manufacturing unit in Gurgaon (Haryana) where almost 50 per cent
of the garments required for Indian stores are manufactured.
The remaining sourcing for the Indian market happens through contract manufacturing
from Ludhiana (Punjab),Delhi, Bangalore (Karnataka),Chennai (Tamil Nadu), Nepal and
Benetton International. The designs are selected from the global collection created by the
product design and development team based in Italy.
India is also used as a market for Benetton Group's global sourcing especially for kids'
apparel. In India, the company employs more than 300 people directly while indirect
employment is in excess of 5,000 people.
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4.4 Benetton's India operations
• Entered India in 1991-92 as a joint venture with DCM Group,now a 100 per cent
subsidiary
• Brand United Colors of Benetton present across 106 stores in 45 cities
• Brand Sisley also launched in India in 2006
• Manufacturing unit in Gurgaon, sourcing also done through contract manufacturing to
vendors
• India used as a manufacturing hub for sourcing apparel for other countries
5 PRODUCT OFFERED BY BENETTON
• Apparel
• Accessories
• Garments
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• cosmetics
6 CSD (CONSUMER SERVICE DESK)
• Alteration
• Customer feedback
• Gift wrapping
• In store announcement
• Shop lifting
• Staff standard customer interaction
• Telephone calls
• Hot deals
• Birthday Offers
7 STP (SEGMENTING, TARGETING AND POSITIONING)
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Segment Clothing which is a combination of adventure
Target Group People with Medium to high purchasing power and a chic attitude
Positioning Stylish clothes with an adventurous and innovative touch
8 SWOT ANALYSIS
8.1 Strength
• They are a worldwide known brand
• UCB have sponsored many well know events like Formula 1 as well as
Volleyball events
• They are known for their good quality fabric and designs
• They work in tangent with many other brands with their company
• Their clothes have international style that combines energy, colour and
practicality
• Branding and marketing campaigns have always generated to a lot of visibility
8.2 Weakness
• Stiff competition means market share growth is limited
• Some controversial ad campaigns caused problems
8.3 Opportunities
• Online Retail is gaining a lot of importance
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• Young designers and well developed collections
• Explore the unexplored markets
8.4 Threats
• Consumer switching is on a high
• There are a huge amount of high end fashion stores which are their competitors
• Price wars between competitors, price cuts and so on could damage profits for
Benetton retail India
• Shopping culture has not developed in India as yet. Even now malls are just a
place to hang around with family and friends and largely confined to window-
shopping.
9 COMPETITORS
As per the location:
• Louise Phillips
• Allen Solly
• Ed hardy
• Jack & Jones
• Nike
• Puma
• Adidas etc.
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10 HOW TO INCREASE SALE IN UCB
Reason for increase the sales in the United Color of Benetton section are:-
1. Building trust with customer
Staff need to know how to engage with people from all work of life in a genuine manner.
Employees must be able to listen to why customer walked through the store, identify
the motivators to buy and link all the product in a way that encourages them to buy.
Staff should create a common bond of trust with the customer, particularly over the
period of time.
2. Increasing the Order Size
Upselling is one of the best ways to increase revenue in your store. How to increase sales
in your retail establishment, mastering the art of the upsell is a must. By definition,
upselling is selling more products to a customer who already has intentions to buy. Since
the individual is already in the purchasing mind set, upselling to a person, opposed to
nurturing a new sale.
3. Post-Purchase Communication
Now that you have generated a new customer, it’s important to communicate with them post
Purchase. The goal with each new customer is to figure out ways to increase their lifetime
value (LTV). The two ways are:
1. Increase their average order value
(Upselling in store) or increase the frequency of how often they purchase from the section.
2. it’s very important to engage with customer and obtain as much information about them
as possible.
3. Most POS systems allow building customer database by collecting email addresses at the
point of sale.
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4. STOCK AVAILABILITY
Securing the optimum retail stock availability rates creates the basic prerequisite for its
sale, i.e. for achieving the desired transaction with the customer.
With the increase in stock, there will be an increase in sales whereas decrease in stock
will lead to decreasing in sales.
OOS (out-of-stock) also negatively impacts retailers’ business performance
11 STORE LAYOUT, DESIGN AND VISUAL
MERCHANDISE
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Objective:
• Critical issues retailers consider in designing a store
• Advantage/Disadvantage of alternative store layout
• How is store space assigned to merchandise and department
• Best technique for merchandise presentation
Well-designed store
• Entrance which Creates expectation and offers promises, Store front should
entice, a single message – Positive store image
• Clutter at the start can create confusion and disorientation, uncomfortable feeling
• Inside the store leads the customer through the store journey using lighting,
signage, display leads customer through path of discovery
• Checkout store visit and conclusion
Store design objective
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• Implement the retailers strategy
• Influence the customer buying behavior
• Provide flexibility
• Control design and maintenance costs
• Meet legal requirements
Store design and retail strategy
• Design is consistent and reinforce the retailer’s strategy by meeting the needs of
the target market and building a competitive advantage.
• Flooring also affects retailers image
Influence customer buying behavior
• Store design should attract customer enable them to locate merchandise, keep
them in store for as long time, motivate them to make unplanned, impulse
purchase and provide them with a satisfied customer experience.
• Buying behavior influence store design which rise in nuclear families with a
limited time
• E.g. customers do not walk down one aisle and up next. Park at the end of the
aisle- walk partway to pick the product and return to the cart. Hence puts its
bestselling brands at the middle of the aisle
Flexibility
• Dynamic business is what may work today, may not be applicable tomorrow it
needs to change the merchandise mix also need to change layout
• Attempt to design the stores with maximum flexibility
• Two forms is the ability to physically move and store the components, and the
ease with which components can be modified
Cost
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• Cost of implementing the store design and maintain the store appearance
• Free form design which is costly can encourage the customer to explore and
increase sales
• More lighting to high price merchandise and others
• Good light can make the merchandise look better and increase sales
• Store design affect the labor cost, with different section which makes
comfortable in shopping, which require one person constantly to provide service
DESIGN
Layout
• Need to determine the basic layout of the store
• Use signage to guide customers through the store and assist them in locating and
finding info about merchandise
• Variety of approaches used to feature specific products
• Layout is the method of encouraging customer exploration which present them
with a layout which facilitates a specific traffic pattern.
Free form layout which most of the retail store followed (e.g. Benetton)
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Free form layout is a Boutique layout which arranges fixture and aisles in an asymmetric
pattern, Used in small specialty store or within depts. Of large stores
It provide an intimated and relaxing environment that facilitates shopping and browsing
No well-defined traffic pattern, customer are not drawn towards the store naturally.
Personal selling becomes more important
Layout sacrifices some retail storage and display space to create a more spacious
environment
Signage and graphics
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• Helps customers locate specific products and departments, provide specific
information, and suggest items or special purchase
• Graphics can add personality, beauty to the store image
• Location used to identify the location of merchandise. Large stores display
directional signage to guide customer around the store and from one area to
another
• Hanging signs from ceiling which enhance visibility
• Category signage used within particular department or section of the store,
smaller than directional signs, with a purpose to identify the types of the
merchandise offered located near the referred merchandise
• Point of sale which is placed near the merchandise they refer to so that customer
know its price and detailed information. It helps to quickly identify special offers
• Lifestyle images use various image such as picture and places to create moods
that encourage customers to buy the products
• Promotional area is a space to display merchandise that is being promoted
• Walls in a limited retail space use wall to store , display and present a message
• Windows can help to draw customer into the store, provide the visual message
about the type of merchandise offered and type of image the store wishes to
portray, should be tied to the merchandise and other displays in the store, should
display shopping mood for a season or holiday
Space management
• Space within the store is a scarce resource
• Allocation of store space to merchandise
• Location of departments or merchandise categories in the same area
Space allocated to merchandise categories
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• Factors which Benetton consider when deciding how much shelf space to
allocate to merchandise category are
• Space productivity
• Inventory turnover and gross margin contribute to GMROI, thus
merchandise with higher inventory turnover should get more shelf space.
Fast selling merchandise and more shelf space.
• Impact on store sales which is needed to consider allocation on the entire
store with an objective to maximize profitability of the entire store
• Display considerations with physical structure of the store and the
availability of fixtures
12 OBJECTIVE OF THE STUDY
• To understand the layout of the store and its strategic advantage
• To understand the signage and graphics used in the store
• To understand the store atmosphere (Lightning, Ac, Music, colour and Scene
etc.)
• To understand the fixture and presentation methods
• To understand the space management (Space productivity/sales per Sq.ft
• To study the quality, price, design, offers and display as compare to other
competitors
• To study the consumer satisfaction after purchasing the product
• To understand the targeted customer of the company
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13 RESEARCH METHODOLOGY
Research Methodology is a systematic method of discovering new facts for verifying old
facts, their sequence, inter-relationship, causal explanation and the natural laws which
governs them. Research Methodology explained by Redman and Mory are as follows
systematized efforts to gain new knowledge Research Methodology is original
contribution to the existing stock of knowledge making for its advancement. It is the
purist of truth with the help of study. In Research Methodology mainly data plays an
important role.
The data is divided into two parts:
1. Primary Data
2. Secondary Data
Primary Data: It is the data, which is collected directly by direct personal interview,
indirect oral investigation, Information received through local agents, drafting a
schedule, drafting a questionnaire.
Secondary Data: It is the data which is collected from the various books, magazines,
and material, reports etc. The data which is stored in the organization provided by the
HR people are also secondary data. The various information has taken out regarding that
subject as well other subject from various sources and stored. The last years data stored
can also be secondary data. This data is kept for the internal use of the organization. The
HR manual is for the internal use of the organization. That is the secondary data which
help people to gain information
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Primary Data:
Due to discussion of feedback and questionnaire filling by customer lot of data was
collected as well as latest information which was very beneficial and was primary data
for me
Secondary Data:
The data which is collected from the company website, government sites and
government record
Research Design
Descriptive Research:
It includes surveys and fact-finding enquiries. The descriptive research is typically
concerned with determining the frequencies with which something occurs or
determining the degree which variables is associated. It is guided by an initial
hypothesis.
The Research Design which I adopted while working on this project is Descriptive
Research Design.
TYPE OF RESEACH:
Type of questions: both close and open –ended
Sampling frame: Pune
Type of sample: Customer
Sample size: 100
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14 DATA ANALYSIS AND INTERPRETATION
Gender
MALE 86%
FEMALE 14%
OTHERS 0%
INTERPRETATION:
By an observation through the number of respondent we can see that most of the
customer who visit the store are male with 86% and rest goes to female with 14% which
clearly show that Benetton carries a lots of attraction on youth generation with new
collection.
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RATING OF KIDS SECTION (QUALITY, DESIGN, DISPLAY, PRICE, OFFERS)
BETTER GOOD AVERAGE BAD WORSE
QUALITY 12% 78% 9% 1% 0%
DESIGN 11% 63% 25% 1% 0%
DISPLAY 10% 58% 26% 6% 0%
PRICE 13% 49% 15% 23% 0%
OFFERS 14% 47% 26% 3% 0%
INTERPRETATION:
Regarding Kid’s sedction the Quality of the product, 12% rate as better, 78% as good,
9% as average which indicate that the quality of Benetton is good for standing still in the
field of competitors. Same goes to the Design, Display, Offers. But by looking on the
price of the product 23% rate it as bad which means the price of the product is high as
compare to the living standards of the middle class.
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RATING OF MENS SECTION (QUALITY, DESIGN, DISPLAY, PRICE, OFFERS)
QUALITY 14% 77% 9% 0% 0%
DESIGN 11% 71% 18% 0% 8%
DISPLAY 14% 63% 15% 8% 0%
PRICE 14% 58% 11% 17% 0%
OFFERS 15% 65% 18% 2% 0%
INTERPRETATION:
Regarding Men’s sedction the Quality of the product, 14% rate as better, 77% as good,
9% as average which indicate that the quality of Benetton is good for standing still in the
field of competitors. Same goes to the Design, Display, Offers. But by looking on the
price of the product 17% rate it as bad which means the price of the product is high as
compare to the living standards of the middle class.
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RATING OF WOMEN’S SECTION (QUALITY, DESIGN, DISPLAY, PRICE, OFFERS)
QUALITY 14% 72% 13% 1% 0%
DESIGN 11% 64% 25% 0% 0%
DISPLAY 11% 55% 27% 7% 0%
PRICE 14% 50% 15% 21% 0%
OFFERS 14% 60% 24% 2% 0%
INTERPRETATION:
Regarding Women’s sedction the Quality of the product, 14% rate as better, 72% as
good, 13% as average which indicate that the quality of Benetton is good for standing
still in the field of competitors. Same goes to the Design, Display, Offers. But by looking
on the price of the product 21% rate it as bad which means the price of the product is
high as compare to the living standards of the middle class.
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RATING OF SERVICE PROVIDED BY BENETTON (CLP, ALTERATION, EXCHANGE POLICY,
HANDLING OBJECTION)
CLP 18% 72% 10% 0% 0%
ALTERATION 24% 64% 11% 1% 0%
EX POLICY 225 63% 15% 0% 0%
HANDLING
OBJECTION
19% 66% 14% 1% 0%
INTERPRETATION:
Regarding Service provided by Benetton, leading 24% as better for alteration,followed
by 72% as good for CLP, 15% as average for Exchange policy which indicate that the
service provided by Benetton is good for standing still in the field of competitors, As
well as the promotion of the Brand by carrying a good word of mouth through Customer
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RATING OF THE LOCATION OF THE STORE (VISIBILITY, ACCESSIBILITY, TRAFFIC,
PARKING AREA, IDENTIFIABLE)
VISIBILITY 15% 74% 9% 2% 0%
ACCESSIBILITY 13% 68% 18% 1% 0%
TRAFFIC 14% 64% 18% 4% 0%
PARKING
AREA
12% 62% 14% 12% 0%
IDENTIFIABLE 13% 71% 13% 13% 0%
INTERPRETATION:
Regarding the Location,leading 15% rate as better by visibility, 74% as good by
visibility again, 18% as average by Accessibility and Traffic and 12%, 4%, 3% as Bad
by Parking Area, Traffic, and Identifiable which indicate that location of the store like
Parking Area and identifiability should improve for the convenient to most of the
customer, and Traffic can’t do anything with it, as it depends on location where there are
more vehicle.
CUSTOMER SATISFACTION TOWARDS THE BRAND
Page | 33

YES 73.70%
NO 5.10%
MAY BE 21.20%
INTERPRETATION:
Most of the customer satisfy with the Brand after purchasing with 73.70% on the above
100 total respondent. 21.20% as may be satisfy with the Brand after purchasing and
5.10% which is not satisfy with the Brand after purchasing. Which clearly indicate that
the leading 73.70% is an advantage towards the Brand to capture the rest of the market
Page | 34

BRAND PREFERED BY THE CUSTOMER
BENETTON 37.40%
LOUISE PHILLIP 16.20%
ALLEN SOLLY 11.10%
ED HARDY 5.10%
JACK & JONES 3%
NIKE 6.10%
ADIDAS 9.10%
PUMA 8.10%
OTHERS 4%
37.40%
16.20%11.10%
5.10%
3%
6.10%
9.10%
8.10% 4%
Brand
Benetton Louise Phillips Allen Solly Ed Hardy Jack & Jones
Nike Adidas Puma Others
INTERPRTATION:
On the above graph with 100 responses 37.40% is leading by Benetton followed by
Louise Phillip, Allen Solly, and Jack & Jones which indicate that Benetton is a well-
known brand in India and it can easily expand their stores in different parts of the
Page | 35

country even though it present in 48 major cities in India it can open even be more than
that when the brand is more than expectation and goes beyond customer expectation.
15 ANALYSIS, CONCLUSION, AND RECOMMENDATIONS (AS
THREE SUB CHAPTERS) –
15.1 FACTOR ANALYSIS (SPSS SOFTWARE)
Factor analysis is a statistical method used to describe variability among observed,
correlated variables in terms of a potentially lower number of unobserved variables
called factors.
Factor analysis searches for such joint variations in response to unobserved latent
variables. The observed variables are modelled as linear combinations of the potential
factors, plus "error" terms. Factor analysis aims to find independent latent variables.
Followers of factor analytic methods believe that the information gained about the
interdependencies between observed variables can be used later to reduce the set of
variables in a dataset.
Factors
Rotated Component Matrix
Component
1 2 3 4 5
Quality 1.088 -.062 .124 .037 -.077
Design .091 .073 1.080 -.020 -.082
Display .932 .013 -.079 -.035 .022
Price -.056 1.312 .107 .200 -.058
Offers .132 .084 -.130 1.631 -.064
Visibility 1.029 -.109 .044 .136 -.038
Accessibility -.021 1.121 .005 .017 -.045
Traffic -.030 .157 1.103 -.088 -.059
Parking area -.091 -.149 -.175 -.067 1.683
Identifiability -.086 .958 .174 -.093 -.049
Figure: highlighted the attributes which can improve by the company while providing a
product to the cuatomer
Page | 36

Factor 1: Quality, display and Visibility is the Factors that the company should focus
while offering a product on the basis of the product and location of the store.
Factor 2: Price, Accessibility, Identifiability is the Factors that the company should
also focus while offering a product on the basis of the product and location of the store
where price is the most important attributes that generate the revenue of the company
Factor 3: Design and Traffic is the Factors that the company should focus while
offering a product on the basis of the product and location of the store where design is
the second attributed that can attract the customer by updating with different fashion
style according to the generation that we live in
Factor 4 and 5 : offers and parking area is the Factors that the company should focus
while offering a product on the basis of the product and location of the store.
Graph 1: It shows the Offers, Design, Quality, Display and Price Of the store and its
Merchandise
Page | 37

Graph 2 : It shows the Traffic, visibility, Parking area, Identifiability, and Accesibility
of the store
16 LEARNINGS:
• layout of the store and its strategic advantage
• Signage and graphics used in the store
• The store atmosphere (Lightning, Ac, Music, colour and Scene etc.)
• Fixture and presentation methods
• Space management (Space productivity/sales per Sq.ft)
• Calculating the growth percentage of the company and their sale
forecasting.
Page | 38

17 CONCLUSION:
Summing up all together I would like to wrap up with my experience as an intern in
United Color of Benetton for a duration of two months as a big milestone in my carrier
development. I have manage to make 2.5 lakhs sales in Jangli Maharaj and 2 lakhs sales
during the Big Day sales in Central Mall with team efforts.
Factor analysis analyzed that factor like price, quality, design, display, offer, visibility,
Identifiability, location etc. are the factor which determine the sale and the growth of the
company. According to the project and the graph shown above offer, display and quality
are the factors which attract the most to the customer mindset that also have that
capability towards communication level on the inside store, while Price and design
stands on the negative points which indicate that Benetton are still in progress for
improving this factor
Regarding location of the store Identifiability, traffic, accessibility, parking area and the
visibility of the store are on the negative side which indicate that location of the store
needs an attention towards their location for the easy notifying of the customer
For this study was conducted with a primary survey of 100 respondents to collect the
data. After collecting the data through SPSS software used to discriminate analysis for
the projects namely “The study of store layout, design and visual merchandise”
Page | 39

18 RECOMMENDATION:
• Price and design should somehow related with the quantity of the product(as per
the analysis)
• Location of the store (visibility, Identifiability, accessibility, parking area) should
improve for the benefit of the company in order to attract customer.
• Improve in on the job communication
• Improve in security service department ( check in and out of Trial room)
• Billing counter should be increased
• Employees should be teach about the offers, product specification & customer
loyalty program
• Signage and graphics should be placed in such a position that customer can easily
notify their needs
• When an offers or discount is offer there should be a signage displaying the price
of the product after discount for a better communication between the employees
and the customer
Page | 40

19 REFERENCES
• Swapna Pradhan at bharati composer October 2006 “ Retail management” text
and cases , 2nd
edition, Tata McGraw-Hill publishing company limited, New
Delhi,
• Michael levy and Barton A Weitz 2004, “Retailing Management”, Tata McGraw-
Hill Publishing Com ltd, 5th edition, New Delhi 2.
• Retail report by KPMG in India, March,09, “Consumer Markets Indian Retail:
Time to change lanes” 3. Joseph Mathew, Nirupama soundarajan,
• Manish Gupta, Sanghamitra Sahu “Impact of Organized Retailing on
Unorganized Sector” Working paper No.222, ICRIER.
• Anderson, P.F. (1986), “On method in consumer research: a critical relativist
perspective”, Journal of Consumer Research, Vol. 13, September, pp. 155-173.
• Bettman, J.R. and Zins, M.A. (1977), “Constructive Processes in Consumer
Choice”, Journal of Consumer Research, 4, September, pp. 75-85.
• Anderson, P.F. (1983), “Marketing, scientific progress and scientific method”,
Journal of Marketing, 47, pp. 18-31.
• Alba, J.W. and Hutchinson, J.W. (1988), “Dimensions of Consumer Expertise”,
Journal of Consumer Research, 13, March, pp. 411-454.
• Burke, P.J. and Franzoi, S.L. (1988), “Studying Situations and Identities Using
Experimental Sampling Methodology”, American Sociological review 53,
August, pp. 559-568. In Solomon, M.R. 1995, Consumer Behaviour, 3rd ed.,
Prentice Hall, 312.
• Taher A, Leigh TW, French WA (1996). “Augmented retail services: the lifetime
value of affection”, J. Bus. Res. 35(3):217-228
• Smith PR, Taylor J (2005). Marketing Communications: An Integrated
Approach, Kogan Page India, London.
Page | 41

• Sinha PK, Banerjee A, Uniyal DP (2002). “Deciding Where to Buy: Choice
Behaviour of Indian Shoppers,” Vikalpa 27(2):13-28.
20 ANNEXURE:
QUESTIONNARE BASED ON STORE LAYOUT, DESIGN AND VISUAL
MERCHANDISING OF UNITED COLORS OF BENETTON INDIA Pvt Ltd
(MAHARASHTRA, JANGLI MAHARAJ ROAD, PUNE)
Dear Sir/Madam,
I am student of Pune Institute of Business Management, PUNE, am conducting a survey
on the store layout, design and visual merchandising in united colors of Benetton India
Pvt Ltd. I request you to kindly spare a few minutes and help me in the survey.
Your co-operation will be highly obliged.
Let’s get started
1. Name :
2. Gender:
3. Age:
4. Occupation:
5. How much can you rate the quality, design, price, display, and offers on the Kid’s
section of Benetton India Pvt Ltd?
Better Good Average Bad Worse
Quality
Design
Display
Price
Offers
Page | 42

6. How much can you rate the quality, design, price, display, and offers on the women’s
Quality
Design
Display
Price
Offers
7. How much can you rate the quality, design, price, display, and offers on the women’s
Quality
Design
Display
Price
Offers
8. How much can you rate the quality, design, price, display, and offers on the
accessories section (bags, footwear, fragrance) of Benetton India Pvt Ltd?
Quality
Design
Page | 43

Display
Price
Offers
9. How much can you rate on the location of the store (visibility, accessibility, traffic,
parking area, Identifiability of Benetton India Pvt Ltd?
Visibility
Accessibility
Traffic
Parking Area
Identifiability
10. How much can you rate the Service provided by Benetton India Pvt Ltd (alteration,
exchange policy, customer loyalty programme)
Customer loyalty
program
Exchange policy
Birthday Policy
Alteration
Handling objection
11. CUSTOMER SATISFACTION TOWARDS THE BRAND
YES
NO
MAY BE
Page | 44

12. BRAND PREFERED BY THE CUSTOMER
BENETTON
LOUISE PHILLIP
ALLEN SOLLY
ED HARDY
JACK & JONES
NIKE
ADIDAS
PUMA
OTHERS
13. Give us your feedback about the Benetton store?
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………
Page | 45

United Color Of Benetton (analyzing of store layout, design and visual merchandise)

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