Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                      ...
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
Visual merchandising at big bazaar
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Visual merchandising at big bazaar

  1. 1. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />A Project Report on <br />VISUAL MERCHANDISING IN THE RETAIL SECTOR <br />(A Case Study of Best Practices and Effective Strategies of <br />Visual Merchandising at Big Bazaar, Bangalore) <br />A Dissertation submitted in partial requirements for the award of MBA <br />Degree of Bangalore University<br />By <br />DILIPA S NAIK <br />Reg No: 07XQCM6021 <br />MBA Fourth Semester <br />(2007-2009 Batch) <br />M.P.Birla Institute of Management <br />Bangalore-560001 <br />Under the Guidance and Supervision of <br />Dr K V Prabhakar <br />Senior Professor <br />Page 1<br />M.P.Birla Institute of Management, Bangalore Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 2<br />DECLARATION<br />I hereby declare that this dissertation entitled “Visual Merchandising in Retail <br />Sector (Big Bazaar, Bangalore)” is the result of my own research work carried out<br />under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M P <br />Birla Institute of Management, Bangalore. I also declare that this dissertation has not <br />been submitted earlier to any Institute/University/Institution for the award of any <br />degree or diploma or similar title.<br />Place: Bangalore <br />Date: (Dilipa S Naik) Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 3<br />PRINCIPAL’S CERTIFICATE<br />This is to certify that this dissertation entitled “Visual Merchandising in Retail <br />Sector (Big Bazaar, Bangalore)” is the result of research work carried out by <br />Mr. DILIPA S NAIK under the guidance and supervision of Dr. K V Prabhakar, <br />Senior Professor, M.P. Birla Institute of Management, Bangalore<br />Place: Bangalore <br /> Date: (Dr. Nagesh S. Malavalli) <br /> Principal <br /> Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 4<br />GUIDE’S CERTIFICATE <br />I hereby state that the dissertation entitled “Visual Merchandising in Retail Sector <br />(Big Bazaar, Bangalore)” is the result of research investigation carried Out by Mr. <br />DILIPA S NAIK under my guidance and supervision.<br />Place: Bangalore (Dr. K V Prabhakar) <br />Date: Senior ProfessorVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 5<br />ACKNOWLEDGEMENT <br />I express my gratitude to Dr. Nagesh S. Malavalli, (Principal, M. P. Birla Institute of <br />Management) for providing me with the academic support. <br />I extend my sincere thanks to Dr. K V Prabhakar, Senior Professor, M.P.Birla <br />Institute of Management, Bangalore for guiding me effectively<br /> <br /> Dilipa S Naik Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 6<br />TABLE OF CONTENTS <br />Contents<br />EXECUTIVE SUMMARY ................................................................................................... 9 <br />CHAPTER 1- INTRODUCTION ...................................................................................... 10 <br />CHAPTER 2 - INDUSTRY PROFILE ................................................................................. 13 <br />CHAPTER 3 - VISUAL MERCHANDISING .................................................................... 27 <br />CHAPTER 4 - COMPANY PROFILE .............................................................................. 38 <br />PART A- THEORITICAL SETTING................................................................................ 42 <br />CHAPTER 5 - Significance of Research .................................................................... 43 <br />CHAPTER 6 - Literature Review.................................................................................. 44 <br />Chapter 7 – Research Gap ....................................................................................... 46 <br />CHAPTER 8- Problem Statement and Research Objective.................................. 47 <br />CHAPTER 9 - Hypothesis.............................................................................................. 48 <br />CHAPTER 10 - Research Methodology .................................................................... 49 <br />CHAPTER 11 - RESEARCH LIMITATIONS ..................................................................... 50 <br />PART B - SURVEY FINDINGS ..................................................................................... 51 <br />CHAPTER 12 - Data Analysis & Inference ................................................................ 52 <br />CHAPTER 13 - Hypothesis Testing .............................................................................. 82 <br />CHAPTER 14 - Major Findings of Research .............................................................. 84 <br />PART C - RECOMMENDATIONS............................................................................... 86 <br />CHAPTER 15 - Recommendations ............................................................................ 86 <br />CHAPTER 16 - Conclusion........................................................................................... 92 <br />Annexure ...................................................................................................................... 93 <br />SELECT BIBLIOGRAPHY ................................................................................................ 94 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 7<br />QUESTIONNAIRE ........................................................................................................... 96 <br />EXPALANATION TO RESEARCH INSTRUMENT USED................................................ 100 <br />Directions for further Research................................................................................ 101 <br />List of Tables <br />Table 1 – frequency of visit ........................................................................................ 52 <br />Table 2 – opinion on store display ............................................................................ 55 <br />Table 3 – opinion of ambience of store .................................................................. 57 <br />Table 4 – opinion of store design.............................................................................. 59 <br />Table 5 – opinion of color & lighting ........................................................................ 61 <br />Table 6 – opinion of props & decorative items ...................................................... 63 <br />Table 7- opinion on fixtures & hardware ................................................................. 65 <br />Table 8 – opinion of signs in the store ...................................................................... 67 <br />Table 9 – opinion on convenience in reaching for items in rack ....................... 69 <br />Table 10- opinion about soft drinks, biscuits for casual customer....................... 72 <br />Table 11- opinion on whether window display should be changed weekly.... 74 <br />Table 12- opinion on space between aisles........................................................... 76 <br />Table 13 – opinion on seasonal & high margin merchandise locations............ 78 <br />Table 14 – opinion on overall professionalism of the store................................... 80 <br />Table 15 - Hypothesis Testing..................................................................................... 83 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 8<br />List of Charts<br />Figure 1 Retail Sales in India....................................................................................... 16 <br />Figure 2- Projected Retail in India............................................................................. 17 <br />Figure 3 - demographics............................................................................................ 19 <br />Figure 4 - Frequency of visit to Big Bazaar .............................................................. 53 <br />Figure 5 - opinion of store dispaly............................................................................. 55 <br />Figure 6 - opinion of ambience of Big Bazaar........................................................ 57 <br />Figure 7 - opinion of store display............................................................................. 59 <br />Figure 8 - opinion of color & lighting........................................................................ 61 <br />Figure 9 - opinion of props & decorative items...................................................... 63 <br />Figure 10 - opinion of fixtures & hardware .............................................................. 65 <br />Figure 11 - opinion of signs at Big Bazaar ................................................................ 68 <br />Figure 12 - opinion on convenience in reaching for items in the rack .............. 70 <br />Figure 13 – opinion on chocolates, biscuits located at exit doors for casual <br />customers ..................................................................................................................... 72 <br />Figure 14 - opinion on window display .................................................................... 74 <br />Figure 15 - opinion on space between the aisles.................................................. 76 <br />Figure 16 - opinion on seasonal & high margin merchandise............................. 78 <br />Figure 17 - opinion on overall professionalism of the store .................................. 81 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 9<br />EXECUTIVE SUMMARY<br />“Visual Merchandising is everything the customer sees, both exterior and <br />interior, that creates a positive image of the business and results in attention, interest, <br />desire and action on part of the customer” <br />There is a growing recognition of the need for an effective Visual <br />Merchandising. But even as it continues to grow, the understanding of Visual <br />Merchandising impact and effectiveness is still in its infancy. <br /> The project deals with components of Visual Merchandising and its influence <br />on customer purchasing decision. The study is conducted at Big Bazaar, Bangalore. <br />The study is based on how the visual merchandising components such as Color and <br />Lighting, Props and Decorative items, Fixtures and Hardware, Store Design and <br />Display and overall ambience of the store plays a crucial role in influencing the <br />purchase decision making of the customer. <br />The methodology followed is questionnaire method with a total sample size of <br />100 respondents. The data is tabulated and graphically represented through, Piecharts, Bar graph. Based on the response obtained through questionnaire major <br />research findings are presented and suitable recommendations are made in order to <br />improve the customer shopping experience at Big Bazaar. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 10<br />The ambience of the store is a very important element in Visual <br />Merchandising as it influences consumers in purchase decision. . A customer is highly <br />influenced by the look and feel of the store Visual merchandising when used <br />effectively is no doubt a powerful tool to entice customers in making a purchase <br />decision.. Visual merchandising will lead to impulse purchase of the product. <br />CHAPTER 1‐ INTRODUCTION<br />RETAILING Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 11<br />RETAILING <br />Retailing consists of those business activities involved in the sales of goods <br />and services to consumers for their personal, family or household use. The field of <br />retailing is both fascinating and complex. It has enormous impact on the economy, in <br />distribution, and its relationship with companies that see goods and services to <br />retailers for their resale or use. Retailing is the final stage in the distribution process, it <br />does not necessary have to include a .retailer, Manufacturers, importers, non-profit <br />firms, and wholesalers, and other organization are also considered as retailers when <br />they sell goods and/or services to final consumers. Competition in the retailing scene <br />has intensified manifold for the past few decades, generally as a consequence of new <br />technologies, more sophisticated management practices and industry consolidation. <br />These trends have been especially pronounced in the food industry. <br />There has been a significant amount of studies that examine the issues of retail <br />channel management and retail marketing strategies to tackle the fierce competition in <br />existing retail channels in food industry. As in all other industries, the ultimate <br />decider of the eventual success of an alternative retail channel is the CONSUMER. <br />Consumers refer to individuals who buy products and services for themselves <br />or on behalf on their households. They are invariably either users of these products or Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 12<br />services or responsible for the welfare and well being of those who are. Since <br />consumers are extremely crucial for retailers, an understanding of consumer behavior <br />is an essential prerequisite of successful retail marketing strategy and one of the most <br />fundamental principles of in exerting influence on consumer patronage decision <br />process. Without customer focus, marketing planning can easily be dominated by the <br />actions of competitors or internal influences. The success of a retailer depends on how <br />well he/she selects, identifies and understands his customers. <br />The feasibility of new retail channels is also highly dependent on retailers. <br />Ability to select the type of consumer segments to reach (mass markets, market <br />segment, or multiple segments), to identify the characteristics and needs of the <br />specific target market and understanding how consumers make decisions. According <br />to Peter McGoldrick, the most successful examples of innovation and evolution in <br />retail formats are retailers that respond accurately and profitably to previously <br />unsatisfied needs. <br />TYPES OF RETAIL OUTLETS <br />The emergence of new sectors has been accompanied by changes in existing <br />formats as well as the beginning of new formats: <br />• Hyper marts, typically 8,000 sq.ft and more <br />• Large supermarkets, typically 3,500-5,000 sq. ft. <br />• Mini supermarkets, typically 1,000-2,000 sq. ft. <br />• Convenience stores, typically 750-1,000sq. ft. <br />• Discount/shopping list grocery Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 13<br />CHAPTER 2 ‐ INDUSTRY PROFILE<br />INDIAN RETAIL SCENARIO Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 14<br />RETAIL INDUSTRY IN INDIA <br />The retail sector in India is witnessing a huge revamping exercise as <br />traditional markets make way for new formats such as departmental stores, <br />hypermarkets, supermarkets and specialty stores. Western-style malls have begun <br />appearing in metros and second-rung cities alike introducing the Indian consumer to a <br />shopping experience like never before. The sector is at an inflexion point where the <br />growth of organised retailing and growth in the consumption by the Indian population <br />is going to take a higher growth trajectory. The Indian population is witnessing a <br />significant change in its demographics. Organised retail is on all time high in India. <br />The growth is boosted by various factors such as availability of professional practices, <br />media proliferation, various brands which are gaining value thereby enhancing <br />industry growth, availability of various funding options, regulations like VAT <br />implementation to make processes simple, sea change in demographics of country and <br />international exposure. <br />The Indian retail market, which is the fifth largest retail destination globally, <br />was ranked second after Vietnam as the most attractive emerging market for Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 15<br />investment in the retail sector by AT Kearney's seventh annual Global Retail <br />Development Index (GRDI), in 2008. The share of retail trade in the country's gross <br />domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 <br />per cent, and is likely to reach 22 per cent by 2010. <br />In a joint study recently conducted by ASSOCHAM and KPMG, the following <br />findings were revealed: <br />• The total retail market size in India in 2008 was estimated at US$ 353 billion. <br />• The annual growth of the retail market in India is expected to be around 8 per <br />cent. <br />• The total retail market size in India is likely to touch US$ 416 billion by 2010. <br />• The present share of organised retail sector is estimated at 7 per cent. <br />• The estimated annual growth of organised retail sector is 40 per cent. <br />• The size of organised retail sector by 2010 is estimated to reach US$ 51 <br />billion. <br />• The estimated share of organized retail in total retail by 2010 is 12 per cent. <br />• The investment into modern retailing formats over the coming 4-5 years is <br />expected to be around US$ 25-30 billion. <br />Retail Sales in India Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Figure 1 Retail Sales in India<br />Page 16<br />Projected Retail in India Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Figure 2- Projected Retail in India <br />Page 17Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 18<br />Advantage India <br /> Against the backdrop of an accelerating modern retail revolution, India offers <br />to be an attractive destination for global corporations and leading retailers seeking <br />emerging markets overseas. India presents a significant market, with its young <br />population just beginning to embrace significant lifestyle changes. <br />Rapid Economic Growth <br />The fast and furious pace of growth of the Indian economy is the driving force <br />for Indian consumerism; with the Indian consumers confident about their earnings and <br />are spending a large portion of their high disposable incomes. <br />Projections by analysts suggest that India has the potential to be labelled the <br />fastest-growing economy and outpace the developed economies by 2050. Analysts <br />predict India to sustain an average GDP growth rate of 5 per cent till the mid of this <br />century, with India projected to outpace the other developed economy markets by <br />2050. <br />The average annual growth rate for 1994-2004 was pegged at 6.1 per cent, <br />second only to China. The more recent growth rates of over 9 per cent posted for <br />India, promise a continued robust growth story. Private consumption accounted for 62 <br />per cent of India’s GDP in 2004-05, comparable to most of the leading economies <br />around the world. <br />The Young India <br />Against the backdrop of an ageing world, India possesses the advantage of <br />having a largely young population. 35 per cent of India’s population is under 14 years <br />of age and more than 60 per cent of the population is estimated to constitute the <br />working age group (15-60) till 2050. Two-thirds of Indian population is under 35, <br />with the median age of 23 years, as opposed to the world median age of 33. India is <br />home to 20 per cent of the global population under 25 years of age. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />This trend is projected to continue for the next decade, with the share set to <br />reach its maximum in 2010. The large proportion of the working-age population <br />translates to a lucrative consumer base vis-à-vis other economies of the world, placing <br />India on the radar as one of the most promising retail destinations of the world. <br />Figure 3 - demographics <br />Page 19Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 20<br />Potential untapped market <br />India ranks first, ahead of Russia, in terms of emerging market potential and is <br />deemed a “Priority 1” market for international retail. Organised retail penetration is <br />on the rise and offers an attractive proposition for entry of new players as well as <br />scope for expansion for existing players. <br />India is home to a large base of consumers with annual incomes ranging from <br />US$ 1,000 – US$ 4,700, comprising of over 75 million households. A steadily rising <br />percentage of rich and super rich population and impressive disposable incomes offers <br />a spectrum of opportunities, spanning from rural retailing to luxury retailing. The <br />impressive retail space availability and growing trend of consumerism in the <br />emerging cities and small towns add to the market attractiveness. <br />Abundant availability of skilled Labour <br />India has a vast resource base of talent and skilled labour. Over 37,000,000 <br />students were enrolled in about 150,000 pre-college institutes and over 11,700,000 in <br />14,000 higher education institutions in 2005-06. With English being the language for <br />business in India, the language skills of the Indian workforce score higher than that of <br />emerging economies. Retail Management is a sought after education stream amongst <br />students, with over 15 premier institutes offering specialised courses in Retail <br />Management. <br />The great Indian consumer market is still going strong. The ETIG analysis <br />carried out by the Economic Times revealed that most mass consumer goods and <br />service in India were not much affected by the global economic slowdown. Despite <br />the inflation experienced during the period, the second-quarter results of leading 70 <br />consumer-related firms revealed that their aggregate revenues increased by 8.5 per <br />cent during the September 2008 quarter over the same period in 2007. Even though <br />this was a tad lower than the 9 per cent growth posted during the first quarter of 2008-Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 21<br />09, it was a lot higher than the 7 per cent registered during the previous three quarters <br />for these firms. <br />Despite the global economic slowdown, Indian retailers are still optimistic <br />about the India growth story. “The Indian economy is more stable than other <br />economies across the world and one must not confuse India with the rest of the <br />world”. With the 30-40 per cent drop in retail rentals, Indian retailers are a happy lot. <br />In fact, retailers are also foreseeing further drops in rentals in 2009 and they are <br />optimistic about their expansion plans for this year. <br />India has one of the largest number of retail outlets in the world. A report by <br />Images Retail estimates the number of operational malls to grow more than two-fold, <br />to cross 412, with 205 million square feet by 2010, and a further 715 malls to be <br />added by 2015, with major retail developments even in tier-II and tier-III cities in <br />India. <br />Even as the organised retail market is starting to take off, there is an associated <br />surge in branded discount outlets in India. Top realtors and local retail chains are <br />developing malls in regional boroughs, specifically to sell premium branded goods. <br />Government Initiatives <br />The government has taken various measures to promote and encourage <br />investment in the Indian retail industry. <br />The Government allows 100 per cent FDI in cash and carry through the <br />automatic route and 51 per cent in single brands. Besides, the franchise route is <br />available for big operators. To further attract global retailers, the economic survey <br />2007–08 has suggested a share for foreign equity in all retail trade and 100 per cent in <br />respect of luxury brands and other specialised retail chains. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 22<br />However, many industry experts feel that the Indian tariff structure has to be <br />streamlined as India levies one of the highest duties and taxes on imported luxury <br />goods. This fuels the growth of the grey market and duty-free purchases, even as the <br />stringent regulatory environment encumbers investment by foreign brands. <br />Organizational characteristics <br />Given the traditional and underdeveloped state of the Indian retail sector, the <br />organizational characteristics of retail enterprises are rudimentary. Most of them <br />belong to independent enterprises in the form of small family businesses. <br />Cooperatives have been present in India for several decades, spurred by the <br />encouragement given by the Indian Government, which viewed the cooperative <br />movement as an integral component of its erstwhile socialist policies. However, since <br />the 1990s, there has been a reduction in government support for cooperatives. In <br />2002, there were about 35,000 outlets run by cooperatives. <br />Economic liberalization, competition and foreign investment since the 1990s <br />led to a proliferation of brands with both foreign and Indian companies acquiring <br />strong brand equity for their products. Hence, franchising emerged as a popular mode <br />of retailing. Sales of franchises grew at a rapid pace of 14% per annum over the <br />review period. <br />India represents an economic opportunity on a massive scale, both as a global <br />base and as a domestic market. Regulatory controls on foreign direct investment <br />(FDI) have relaxed considerably in recent years. However, while retailing currently <br />remains closed to FDI, this is an area of ongoing debate. This means that foreign <br />retailers and consumer goods manufacturers can only participate in the retail market <br />through indirect access strategies, such as wholesaling, franchising or licensing, or by <br />having a manufacturing base in India, or in businesses upstream of retailing. <br />However, the Indian government has indicated in 2005 that liberalization of direct <br />investment in retailing is under active consideration. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 23<br />Price controls have been progressively liberalized since 1992, but a small <br />number of items remain fully controlled. There are also extensive controls on <br />packaging, labelling and certification. <br />Estimates of the size of the retail sector vary, with recent calculations putting <br />the annual value of Indian retailing anywhere between US$180 billion and US$292 <br />billion in 2003. The retail sector is largely made up of what is known in India as the <br />unorganized sector. This sector consists of small family-owned stores, located in <br />residential areas, with a shop floor of less than 500 square feet. At present the <br />organized sector (everything other than these small family-owned businesses) <br />accounts for only 2 to 4 percent of the total market although this is expected to rise by <br />20 to 25 percent by 2010. <br />Many of the companies surveyed believe that the potential size of this market <br />is underestimated. They consider that there are considerable opportunities for <br />organized retailers in the kind of rural territories that many companies have failed to <br />address. A critical issue is how fast and how far the consuming class will grow. This <br />depends both on the growth of personal disposable income and the extent to which <br />organized retailers succeed in reaching lower down the income scale to reach <br />potential consumers towards the bottom of the consumer pyramid. <br />Companies expect retail growth in the coming five years to be stronger than <br />GDP growth, driven by changing lifestyles and by strong income growth, which in <br />turn will be supported by favourable demographic patterns. The structure of retailing <br />will also develop rapidly. <br />Shopping malls are becoming increasingly common in large cities, and <br />announced development plans project at least 150 new shopping malls by 2008. The <br />number of department stores is growing much faster than overall retail, at an annual <br />24 percent. Supermarkets have been taking an increasing share of general food and <br />grocery trade over the last two decades. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 24<br />Consumer credit will also grow, assisted by the likely fall in retail lending <br />rates and more efficient and consumer-friendly lending practices. Distribution <br />continues to improve, but it still remains a major inefficiency. <br />Poor quality of infrastructure, coupled with poor quality of the distribution <br />sector, results in logistics costs that are very high as a proportion of GDP, and <br />inventories which have to be maintained at an unusually high level. Marketing and <br />advertising are of increasing interest and concern to consumer companies. Indian <br />consumers are becoming increasingly sophisticated and knowledgeable about <br />products; media channels that allow companies to communicate with consumers are <br />growing in diversity and reach. Foreign brands remain very powerful in India, <br />especially in clothing and personal care products, but increasingly brands have to be <br />associated with value. Advertising is becoming a bigger part of the marketing mix. <br />Companies are concerned about identifying consumer insights and the profusion of <br />media channels. <br />Food and beverage offer the greatest organized retail growth opportunities, say <br />companies. The main growth opportunity in the segment is in processed foods: rapid <br />growth in the processed food segment is already apparent, changing lifestyles and <br />food habits are resulting in the rapid expansion of branded food outlet and café <br />chains. Gemstones and jewellery represent the most significant specialist segment of <br />Indian retailing. Organized jewellery retailers are increasingly offering brand <br />solutions to the demand for quality and value, as consumers move away from <br />traditional retail settings reliant on family retailers. <br />All companies agree that Indian consumer markets are changing fast, with <br />rapid growth in disposable incomes, the development of modern urban lifestyles, and <br />the emergence of the kind of trend-conscious consumers that India has not seen in the <br />past. <br />Companies expect that the next cycle of change in Indian consumer markets <br />will be the arrival of foreign players in consumer retailing. The very fact that Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 25<br />politicians have left the issue open leads us to think the restrictions are going to be <br />reviewed. And if retailing is liberalized, say companies, growth will be boosted, but <br />so will competition. Indian companies know Indian markets better, but foreign players <br />will come in and challenge the locals by sheer cash power, the power to drive down <br />prices. <br />Retail Formats in India <br />Malls <br />The largest form of organized retailing today, Located mainly in metro cities, <br />in proximity to urban outskirts Ranges from 60,000 sq ft to 7,00,000 sq ft and above. <br />They lend an ideal shopping experience with an amalgamation of product, service and <br />entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, a <br />Pantaloon, Big Bazaar, Reliance, Specialty stores. Chains such as the Bangalore based <br />Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the <br />Times Group's music chain Planet M, are focusing on specific market segments and <br />have established themselves strongly in their sectors. <br />Discount Stores <br />As the name suggests, discount stores or factory outlets, offer discounts on the <br />MRP through selling in bulk reaching economies of scale or excess stock left over at <br />the season. The product category can range from a variety of perishable/ nonperishable goods. <br />Department Stores <br />Large stores ranging from 20000-50000 sq. ft, catering to a variety of <br />consumer needs. Further, classified into localized departments such as clothing, toys, <br />home, groceries, etc. Departmental Stores are expected to take over the apparel Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 26<br />business from exclusive brand showrooms. Among these, the biggest success is K <br />Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large <br />stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes <br />called Stop. <br />Hyper Marts/ Super Markets <br />Large self-service outlets, catering to varied shopper needs are termed as <br />Supermarkets. These are located in or near residential high streets. These stores today <br />contribute to 30% of all food & grocery organized retail sales. <br />Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft <br />to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. <br />having a strong focus on food & grocery and personal sales. <br />Convenience Stores <br />These are relatively small stores 400-2,000 sq. feet located near residential <br />areas. They stock a limited range of high-turnover convenience products and are <br />usually open for extended periods during the day, seven days a week. Prices are <br />slightly higher due to the convenience premium. <br />MBO’S <br />Multi Brand outlets, also known as Category Killers, offer several brands <br />across a single product category. These usually do well in busy market places and <br />Metros. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 27<br />CHAPTER 3 ‐ VISUAL MERCHANDISINGVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 28<br />VISUAL MERCHANDISING <br />“Visual Merchandising is everything the customer sees, both exterior and <br />interior, that creates a positive image of the business and results in attention, interest, <br />desire and action on part of the customer” <br />A successful retailing business requires that a distinct and consistent image be <br />created in the customer’s mind that permeates all product and service offerings. <br />Visual Merchandising can help create that positive customer image that leads to <br />successful sales. It not only communicates the store’s image, but also reinforces the <br />stores advertising efforts and encourages impulse buying by the customer. <br />Visual merchandising is a major factor often over looked in the success or <br />failure of a retail store. It is second only to effective customer relations. A story can <br />be told that communicates to the prospective customer what the store is all about. It <br />includes the dramatic presentation of merchandise as well as other important subtle <br />features that create the store’s overall atmosphere. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 29<br />Eighty percent of our impressions are created by sight; that is why one picture <br />is worth a thousand words. Each customer has a mental image of a store and its <br />merchandise. A store should have an inviting appearance that makes the customer feel <br />comfortable and yet eager to buy. <br />Some businesses maintain a minimum staff to reduce costs, which means it is <br />even more important for the merchandise to sell itself. Greater effort must be spent on <br />merchandise displays that make it easier for the customer to find and purchase the <br />items they want or need. <br />The basic objective for visual merchandising is a desire to attract customers to <br />place of business in order to sell the merchandise. Visual merchandising is offered to <br />the customer through exterior and interior presentation. Each should be coordinated <br />with the other using the store’s overall theme. <br />Visual Merchandising Evolution<br />Every shopkeeper and merchant's primary objective is to sell merchandise. <br />When the giant nineteenth century dry goods establishments like Marshall Field & <br />Co. shifted their business from wholesale to retail the visual display of goods became <br />necessary to attract the retail customer. The store windows no longer simply allowed <br />natural light to shine in the building or act as storage space for stock; they became <br />important venues to attractively display the store's merchandise. Gradually, the design <br />aesthetic used in window displays moved indoors and became part of the overall <br />interior store design, eventually displacing the importance windows altogether in <br />suburban malls. <br />The Victorian era made window displays popular and the Great Exhibition of <br />1851 in London established the prominence of display over the items while <br />commercializing the practice. In due course visual merchandising became an <br />inalienable part of the fashion and retail industry. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 30<br />As far as the term Visual Merchandising is concerned, it became widespread <br />only in 1970 even though it was coined during the 1940s. From the late 1800s till the <br />1920s, visual merchandisers were known as window trimmers. By the late 1920s, the <br />window trimmers were referred to as display men, just as advertising industry called <br />its people ad men. The industry is evolving and entering new domains, Visual <br />Merchandising is increasingly perceived as a part of the overall brand communication <br />process. <br />COMPONENTS OF VISUAL MERCHANDISING <br />STORE IMAGE <br />Image can be described as the overall look of a store and the series of mental <br />pictures and feelings it evokes within the beholder. For the retailer, developing a <br />powerful image provides the opportunity to embody a single message, stand out from <br />the competition and be remembered. <br />As a rule, image is the foundation of all retailing efforts. While store layout, <br />presentation, signing, displays and events can all change to reflect newness and <br />excitement from week to week, season to season, they must always remain true to the <br />underlying store image. The following elements combine to form a distinctive image <br />that not only reaches out and grabs the customer's attention, but also makes a positive Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 31<br />impression within those precious few seconds. Image forms the solid foundation for <br />the remaining components of Maximizing Store Impact <br />STORE DESIGN <br />Store design plays a crucial role in branding: it reflects and reinforces the <br />corporate image. The sights, sounds, smells and other any other aspect should <br />therefore reflect what the retailer brand is about and what its attributes are. <br />Different types of store design are: <br />• Grid: It contains long gondolas (a free standing block of shelves used to <br />display goods in a supermarket) of merchandise and aisles in repetitive <br />pattern. <br />• Racetrack: also known as loop. It provides a major aisle to facilitate customer <br />traffic that has access to the stores multiple entrances. <br />• Free Form: also known as boutique; arranges fixtures and aisles <br />asymmetrically. <br />Visual merchandising creates a connection between the company’s image and <br />the look of the store. <br />EXTERIOR DESIGN <br />STORE NAME <br />An effective store name sets the tone and provides a store's identification by <br />conjuring up an image in the customer's mind. An effective name is consistent with <br />both the product mix and the store atmosphere. <br />VISUAL TRADEMARK <br />An identifiable trademark adds a visual image to the memory recall of a store <br />name, by combining words and pictures, colour, shape, typeface, texture and/or style <br />to make it stand out. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 32<br />STOREFRONT <br />Storefront is also an important element, which adds to the store image like the <br />exterior architecture, signing and window displays. <br />EXTERIOR ARCHITECTURE <br />A store's exterior look is often referred to as the architecture, and comprises <br />aspects such as building materials, architectural style and detail, colours and textures. <br />These elements give a lasting first impression to the consumer. It is important that the <br />exterior look and feel right to the shopper. <br />STORE SIGN <br />The store sign is a vital element of the storefront and also an important <br />component of Visual Merchandising it helps in identifying the store In realizing the <br />value of a strong storefront sign, many retailers are employing new design techniques <br />which include projecting or cantilevering the store sign beyond the lease line, adding <br />motion, or using three-dimensional lettering and unique lighting applications to add <br />depth to the sign. <br />WINDOWS DISPLAY AND FLOORING <br />A store's exterior windows or glass storefront provide an additional <br />opportunity to reach out and grab the passing customer. Windows are integral in <br />creating a positive impression since they offer an opportunity to begin telling the <br />store's unique merchandise story. The flooring and the number of floors a retail outlet <br />has, also make an important impact on the consumers. <br />INTERIOR DESIGN ELEMENTS Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 33<br />The elements of interior design can be used to create an image that matches the <br />desired customer profile. <br />FIXTURES <br />A major consideration in developing an appropriate store design involves the <br />use of fixtures. They are used to display merchandise, to help sell, to guard it and to <br />provide a storage space for it. They should be attractive and focus customers. <br />Attention and interest on the merchandise. <br />DISPLAYS <br />Displays play an important role in a retail store. An attractive and informative <br />display can help sell goods. There are several principles that help ensure this <br />effectiveness. They are achieving balance, provide dominant point, create eye <br />movement etc. <br />MERCHANDISE PRESENTATION TECHNIQUE <br />Merchandise Presentation technique is one of the most important component <br />of Visual Merchandising. The following are the different presentation techniques: <br />1. Idea-Oriented Presentation: a method of presenting merchandise based on a <br />specific idea or image of the store. <br />2. Style/Item Presentation: organizing stock by style or item Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 34<br />3. Colour Presentation: A major role in a display is that of the colour and <br />lighting. Aesthetic and innovative use of them can lure customers to visit more <br />aisles than they usually do and spend more time there. <br />4. Price- lining: is the technique when retailers offer a limited number of <br />predetermined price points within a classification. <br />5. Vertical Merchandising: merchandise is presented vertically suing walls and <br />high gondolas <br />6. Tonnage Merchandising: here large quantities of merchandise are displayed <br />together to enhance and reinforce a stores price image <br />7. Frontal Presentation: here the retailer exposes its much of the product as <br />possible to catch the customer’s eye <br />8. Fixtures: the primary purposes of fixtures are to efficiently hold and display <br />merchandise. <br />COLOUR <br />The psychological effect of colour continues to be important to retailers. <br />Colour probably more than any other factor except price, is the .stopper. that catches <br />the consumers attention. Intelligent use of colour is important in store design. <br />LIGHTING <br />Proper lighting is one of the most important considerations in retail outlet. <br />Today lighting has become a display medium. It is an integral part of the stores <br />interior and exterior design. Lighting is used to highlight merchandise, sculpt space <br />and capture a mood or feeling that enhances the stores image. <br />CEILINGS <br />Ceiling represents a potentially important element of interior design. Ceiling <br />heights colour and material used will influence the store look. <br />FLOORING Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 35<br />Flooring choices are important because the coverings can be used to separate <br />departments; muffs noise in high-traffic areas and strengthen the store image. <br />SHELVING <br />The material used for shelving as well as its design must be compatible with <br />the merchandising strategy and the overall image desired. Music and scent in the retail <br />outlet can influence consumer behaviour to a large extent. <br />VM supports Retail Strategy: <br />• VM physically carries out a store's promotional selling strategies by designing <br />and executing window and interior displays that supports ad goals <br />• Installing promotional signing for in-store selling <br />• Producing workable departmental layouts and interior décor <br />• Devising merchandise fixture layouts for day to day operations <br />• Placing and presenting merchandise on walls and fixtures <br />• Working as team members with the store's promotional staff <br />VM supports selling: <br />• Communicate the latest trends in fashion and colors <br />• Assists customers in making a buying decision <br />• Create an exciting environment within the store <br />• VM transforms a shopper into a buyer <br />• VM supports gift shopping <br />• VM stimulates customers' appetites for artfully presented merchandise in the <br />same way that the gourmet cook stimulates diners' appetites for the artfully <br />presented mealVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 36<br />VM supports retailing trends: <br />• A trend is a direction in which fashion seems to be moving. VM is the <br />invisible force that doing a lot of the pushing behind the trend. Trends put 'fun' <br />in fundamental merchandising. Some of the prominent trends include: <br />• Consumerism is the trend: Consumers like an opportunity to thoroughly <br />inspect the product before making a purchase <br />• The barriers to 'showcase selling' had to come down. Stores began to move in <br />the direction of self service <br />• Assortment which the consumers like is another trend <br />• V Merchandisers should become experts in anticipating and responding to <br />lifestyle trends. The crux is how to target the customers live their lives <br />• Stand along stores in shopping villages is a trend where customers are able to <br />park their vehicles in front of retail stores <br />• Non-store retailing will affect VM <br />• VM also supports international retailing <br />Visual Merchandising Do’s and Don’ts Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 37<br />Do’s <br />• Window display should be changed weekly or fortnightly to ensure freshness. <br />The display and layout should differentiate the store from competition. Colors <br />and design should be characteristic of the brand image. <br />• Impulse purchase items (perfumes, watch straps, gifts) should be close to the <br />entry and exit doors for non-serious or causal customers would like to browse <br />the whole store. Their purchase is not pre-planned and because these impulse <br />purchase items are relatively cheaper they might buy them in a whim. Also <br />when customers wait at the billing counter the people accompanying the buyer <br />may snoop around and make a purchase too. <br />• Use symbols as directions <br />• Distance between the aisles should facilitate the easy for movement shoppers. <br />Don’ts <br />• Avoid too many floors. <br />• Racks shouldn’t be too high, especially in bookstores because customers <br />might not be able to reach the books. <br />• Lighting shouldn’t be poor and at the same time shouldn’t be very bright. <br />Shadows are essential for that added effect. <br />• The display shouldn’t be contrast to the section in which it is. It also shouldn’t <br />be unaesthetic. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 38<br />CHAPTER 4 ‐ COMPANY PROFILE<br />BIG BAZAAR Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Company Profile <br /> <br />Pantaloon Retail (India) Limited, is India’s leading retailer that operates <br />multiple retail formats in both the value and lifestyle segment of the Indian consumer <br />marker. Headquartered in Mumbai (Bombay), the company operates over 5 million <br />square feet of retail space, has over 450 stores across 40 cities in India and employs <br />over 18,000 people. <br />The company’s leading formats include Pantaloons, a chain of fashion outlets, <br />Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, <br />blends the look, touch and feel of Indian bazaars with aspects of modern retail like <br />choice, convenience and quality and Central, a chain of seamless destination malls. <br />Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, <br />Fashion Station, aLL, Top10, Star and Sitara. The company also operates an online <br />portal, futurebazaar.com. <br />A subsidiary company, Home Solutions Retail (India) Limited, operates Home <br />Town, a large-format home solutions store, Collection i, selling home furniture <br />products and E-Zone focused on catering to the consumer electronics segment. <br />Page 39<br />Pantaloon Retail was recently awarded the International Retailer of the Year <br />2007 by the US-based National Retail Federation (NRF) and the Emerging Market <br />Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 40<br />Pantaloon Retail is the flagship company of Future Group, a business group catering <br />to the entire Indian consumption space. <br />Big bazaar is owned and operated by Future Bazaar India Ltd., a subsidiary of <br />Pantaloon Retail (India) Limited. As part of India’s largest retail chain, it enjoys the <br />benefits of buying in bulk for the entire group and keeps the margins low, so that <br />customers get a great range of products at great prices. Pantaloon Retail (India) <br />Limited led by Kishore Biyani is the country's largest retailer. It owns and operates <br />multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar, Central, EZone, Fashion Station, Depot and many others. <br />Future Group <br />Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one <br />of India’s leading business houses with multiple businesses spanning across the <br />consumption space. While retail forms the core business activity of Future Group, <br />group subsidiaries are present in consumer finance, capital, insurance, leisure and <br />entertainment, brand development, retail real estate development, retail media and <br />logistics. <br />Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 <br />million square feet of retail space in 71 cities and towns and 65 rural locations across <br />India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 <br />people and is listed on the Indian stock exchanges. The company follows a multiformat retail strategy that captures almost the entire consumption basket of Indian <br />customers. <br />In the lifestyle segment, the group operates Pantaloons, a fashion retail chain <br />and Central, a chain of seamless malls. In the value segment, its marquee brand, Big <br />Bazaar is a hypermarket format that combines the look, touch and feel of Indian <br />bazaars with the choice and convenience of modern retail. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 41<br />In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic <br />expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in <br />Kolkata, Hyderabad and Bangalore. <br />The group’s specialty retail formats include, books and music chain, Depot, <br />sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement <br />chain, Home Town and rural retail chain, Aadhar, among others. It also operates <br />popular shopping portal, futurebazaar.com. <br />Group Vision <br />Future Group shall deliver Everything, Everywhere, Every time for Every <br />Indian Consumer in the most profitable manner. <br />Group Mission <br />• We share the vision and belief that our customers and stakeholders shall be <br />served only by creating and executing future scenarios in the consumption <br />space leading to economic development. <br />• We will be the trendsetters in evolving delivery formats, creating retail realty, <br />making consumption affordable for all customer segments – for classes and <br />for masses. <br />• We shall infuse Indian brands with confidence and renewed ambition. <br />• We shall be efficient, cost- conscious and committed to quality in whatever we <br />do. <br />• We shall ensure that our positive attitude, sincerity, humility and united <br />determination shall be the driving force to make us successful. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 42<br />PART A‐ THEORITICAL SETTINGVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 43<br />CHAPTER 5 ‐ Significance of Research<br />Visual merchandising is the art and science of displaying and presenting <br />product on the sales floor and in the windows with the purpose to increase store traffic <br />and sales volume. <br />Along with your store design, it is a key component of your store’s unique <br />identity and your best form of advertising. Through them you are able to <br />communicate to your target customer your brand’s identity, what is unique and <br />special about your offering and what makes you better than other stores. <br />When deciding how to present your product in your store, always remember <br />that visual merchandising is an extension of your store’s customer service. That is <br />why when planning for your store’s look and feel and product presentation, you must <br />make sure that they: <br />• Enhance the feeling of service and make your customer feel good. Above all <br />you want your customer to feel good and be happy. If they are happy you <br />know that they are going to buy. You also want to build loyalty and repeat <br />purchases by creating a good shopping experience. <br />• Create a memorable impression: make it a feast for the senses. Shopping isn't <br />just about picking up a product. It’s about temptation, attraction, and creating <br />a memorable impression that will encourage the customer to come back over <br />and over again. Customers are giving you what little time they have. You <br />should reward them with benefits beyond the products you carry. A <br />memorable impression can be created in many different ways. It could be <br />about the sensory experience of entering a store and being surrounded by light, <br />colour, texture, and sound. <br />While there is substantial amount of research on each of the components of visual <br />merchandising, a holistic approach towards visual merchandising involving the Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 44<br />consumer’s perceptions has not attracted much of research effort. So this has <br />prompted me to take up the research. <br />CHAPTER 6 ‐ Literature Review<br />“Visual Merchandising is everything the customer sees, both exterior and interior, that <br />creates a positive image of the business and results in attention, interest, desire and <br />action on part of the customer” <br />Source: Visual Merchandising for retailers by Holly Bastow Shoop, North Dakota <br />State University <br />Dale Zetocha, North Dakota State University <br />Gregory Passewitz, the Ohio State University <br />Merchandising and display are an important part of the marketing plan, and <br />should have a reasonable budget allocated - even for a retailer operating on a <br />shoestring. <br />In today's competitive retail environment a retailer cannot afford to consider <br />merchandising as a 'frill'. Everyone is competing for the customers' dollar. There are <br />more choices out there for consumers than ever before. <br />Posters covering the door and windows, hand lettered signs, lack of lighting <br />and untidy displays send the message that your business isn't serious. If your store <br />looks like a bargain basement, customers will expect bargain basement prices and <br />may draw the conclusion that your product is poor quality. This judgment may have <br />little to do with the product itself, but be the result of poor presentation. <br />Melanie McIntosh, a retail consultant and founder of Inspire Retail <br />Solutions, a British Columbia firm that helps retailers create strong, professional <br />business images that attract customers. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 45<br />Merchandising is more than simply the arrangement of products on the shelf. <br />It is an integral component of the business image. It should be considered when you <br />design your logo, business cards, brochures, letterhead, packaging, and product mix. <br />When you examine your merchandising, you examine what the customers' <br />experience, from their first sight of your store front, until they leave store - hopefully <br />with a purchase in hand. Merchandising is also about understanding the way <br />customers shop. By using this knowledge, you can position your merchandise to <br />increase sales. <br />You need to create an environment that attracts the customer, is comfortable to shop, <br />and encourages the customer to return. <br />• Are the store front and windows attractive & inviting? <br />• Is all signage clear, professional and legible? <br />• Is the store interior welcoming and comfortable? <br />• Is merchandise presentation appealing? <br />• Are seasonal and high-margin merchandise placed in high profile locations? <br />• Overall, is the store appearance professional? Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 46<br />Chapter 7 – Research Gap<br />Visual Merchandising is an integral part of retail today. There is a growing <br />recognition of need for Visual Merchandising. But even as it continues to grow, the <br />understanding of Visual Merchandising impact and effectiveness is still in its infancy. <br />The shopping behaviour which governs the decision to buy is a function of <br />three stimuli viz., visual, auditory and kinaesthetic; the visual stimulus is the easiest <br />and most widely used tool for attracting customers. <br />While there is substantial amount of research on each of the components of <br />visual merchandising, a holistic approach towards visual merchandising involving the <br />consumer’s perceptions has not attracted much of research effort. There is a vital gap <br />in the current research and this has prompted to take up research investigation in this <br />field. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 47<br />CHAPTER 8‐ Problem Statement and Research<br />Objective<br />VM carries with its 'touch points' from the customers' point of view. These <br />touch points comprise the customer environment and it is through interacting with that <br />VM that customer preference is formed. The VM is an excellent analytical tool for <br />discovering the nature of these touch points, their essentiality for preference formation <br />and the combination and sequence of such touch points that result in a customer <br />environment that maximizes corporate ability to construct sustained customer <br />preference. What are these touch points? How does VM unzip these touch points? <br />What should be the appropriate configurations to the VM? This problem statement <br />has been crystallized into the following research objectives <br />Research Objective <br />• To examine the impact of VM in consumer buying decisions <br />• To make recommendations for the alignment of VM in the process of <br />customer preference Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 48<br />CHAPTER 9 ‐ Hypothesis<br />We seek to achieve the above objectives through testing the following <br />hypothesis: <br />H0: All factors are equally important in Visual Merchandising <br />HA: All factors are not equally important in Visual Merchandising Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 49<br />CHAPTER 10 ‐ Research Methodology<br />TYPE OF RESEARCH <br />The study can well be described as descriptive. As a descriptive research, the <br />study will deal with the variables affecting the customer preference process via VM. It <br />finds facts. <br />AREA OF ENQUIRY <br />It is proposed to conduct research in Bangalore City. <br />Secondary Data <br />The secondary data of the study will be based on the available literature in <br />Journals in the retailing sector. <br />Primary Data <br />Primary Data was collected using the structured questionnaire. A sample size <br />of 100 respondents was chosen through random sampling technique. <br />Construction of questionnaire: Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 50<br />The questionnaire was used as the respondents had to give a specific answer to <br />the questions. This also made it easier for the respondents to give their opinion <br />without too much time. <br />Personal interaction with the consumers at the store and observation technique <br />was also used. <br />Sample Size <br />Total 100 respondents were selected as the sample size. Random Sampling <br />CHAPTER 11 ‐ RESEARCH LIMITATIONS<br />Our research investigation is beset with the following constraints: <br />• Time and resource constraints. <br />• At the micro level, the scope of our research investigation is restricted to only <br />one retail unit in Bangalore City. <br />• Bias/prejudice creeping into the responses of the respondents. However we <br />will exercise due care to obviate it through meticulous cross checking of data; <br />(Delphi Method). <br />• Limited sample size, but, in our opinion, it is adequate enough to make valid <br />projections. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 51<br />PART B ‐ SURVEY FINDINGSVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 52<br />CHAPTER 12 ‐ Data Analysis & Inference<br />1) How often do you visit Big Bazaar? <br />Respondents <br />Once in 3 days 0 <br />Once in a week 10 <br />Monthly 23 <br />No time frame 67 <br />Table 1 – frequency of visitVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />0<br />10<br />23<br />67<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />80<br />Once in 3 days Once in a week Monthly No Time Frame<br />frequency of visit<br />Respondents<br />Figure 4 - Frequency of visit to Big Bazaar <br />INFERENCE: <br />From the above observations it is found that: <br />¾ 67% respondents visit to Big Bazaar has no definite Time Frame. <br />¾ 23% of respondents visit Big Bazaar once in a Month. <br />¾ 10% visited the store Weekly. <br />Page 53Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 54<br />2) What is your opinion of the Store Display? <br />Respondents <br />Very Good 15 <br />Good 53 <br />Satisfactory 22 <br />Poor 10 <br />Very Poor 0 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Table 2 – opinion on store display<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />Very Good Good Satisfactory Poor Very Poor<br />St or e Di spl ay<br />Respondents<br />Figure 5 - opinion of store dispaly<br />INFERENCE <br />From the above observations it is found that: <br />¾ 53% of respondents felt that overall Store Display at Big Bazaar was Good. <br />¾ 12% of the respondents felt that overall Store Display was Excellent. <br />¾ 22% felt that Store Display was Satisfactory.<br />¾ 10% felt that Store Display was Poor. <br />Page 55Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 56<br />3) How important is the Ambience of the store while shopping? <br />Respondents <br />Very Important 44 <br />Important 56 <br />Not Important 0 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Not at all Important 0 <br />Table 3 – opinion of ambience of store<br />44<br />56<br />0 0<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />Very Important Important Not Important Not at all <br />Important<br />Ambience<br />Response<br />Figure 6 - opinion of ambience of Big Bazaar<br />INFERENCE <br />From the above observations it is found that: <br />¾ 44% of the respondents feel that Ambience of the Store is Very Important. <br />¾ 56% of the respondents feel that Ambience of the Store is Important. <br />Page 57<br />¾ While none of the respondents feel that Ambience of the store is not <br />important. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 58<br />4) How do you rate the store on basis of Store Design & Display? <br />Respondents <br />Excellent 14 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Good 63 <br />Average 23 <br />Poor 0 <br />Table 4 – opinion of store design<br />14<br />63<br />23<br />0<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />Excellent Good Average Poor<br />St or e Design & Display<br />Response<br />Figure 7 - opinion of store display<br />INFERENCE <br />From the above observations it is found that: <br />¾ 14% of the respondents feel that Store Design and Display was Excellent. <br />Page 59<br />¾ 63% of the respondents feel that Store Design and Display was Good. Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 60<br />¾ 23% of the respondents feel that Store Design and Display was Average. <br />¾ While none of the respondents felt that overall Store Design and Display was <br />Poor. <br /> <br />5) How do you rate the store on basis of Colors & Lighting? Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Respondents <br />Excellent 8 <br />Good 66 <br />Average 22 <br />Poor 4 <br />Table 5 – opinion of color & lighting <br />8<br />66<br />22<br />4<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />Excellent Good Average Poor<br />Col or & Li ght i ng<br />Response<br />Figure 8 - opinion of color & lighting<br />INFERENCE <br />Page 61<br />From the above observations it is found that: Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 62<br />¾ 8% of the respondents feel that Color and Lighting at Big Bazaar was <br />Excellent. <br />¾ 66% of the respondents feel that Color and Lighting at Big Bazaar was Good. <br />¾ 22% of the respondents feel that Color and Lighting at Big Bazaar was <br />Average. <br />¾ 4% of the respondents feel that Color and Lighting at Big Bazaar was Poor. <br />6) How do you rate the store on basis of Props & Decorative items? Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Respondents <br />Excellent 8 <br />Good 71 <br />Average 18 <br />Poor 2 <br />Table 6 – opinion of props & decorative items<br />8<br />71<br />18<br />2<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />80<br />Excellent Good Average Poor<br />Props & Decorat ive it ems<br />Response<br />Figure 9 - opinion of props & decorative items<br />Page 63Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 64<br />INFERENCE <br />From the above observations it is found that: <br />¾ 8% of the respondents felt that Props & Decorative items at Big Bazaar were <br />Excellent. <br />¾ 71% the respondents felt that Props & Decorative items at Big Bazaar was <br />Good. <br />¾ 18% the respondents felt that Props & Decorative items at Big Bazaar was <br />Average. <br />¾ 2% the respondents felt that Props & Decorative items at Big Bazaar was Poor Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />7) How do you rate the store on the basis of Fixtures & Hardware? <br />Respondents <br />Excellent 4 <br />Good 36 <br />Average 58 <br />Poor 2 <br />Table 7- opinion on fixtures & hardware<br />4<br />36<br />58<br />2<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />Excellent Good Average Poor<br />Fixt ur es & Har dwar e<br />Response<br />Page 65<br />Figure 10 - opinion of fixtures & hardwareVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 66<br />INFERENCE <br />From the above observations it is found that: <br />¾ 4% felt that Fixtures and Hardware at Big Bazaar was Excellent<br />¾ 36% felt that Fixtures and Hardware at Big Bazaar was Good<br />¾ 58% felt that Fixtures and Hardware at Big Bazaar was Average <br />¾ 2% felt that Fixtures and Hardware at Big Bazaar was Poor Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 67<br />8) How Informative was the signs in the store? <br />Respondents <br />Very Informative 12 <br />Informative 65 <br />Not Informative 22 <br />Not at all Informative 1 <br />Table 8 – opinion of signs in the storeVisual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />12<br />65<br />22<br />1<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />Ver y Infor mative Infor mative Not Infor mative Not at all <br />Informative<br />Si gns i n t he st or e<br />Response<br />Figure 11 - opinion of signs at Big Bazaar <br /> <br />INFERENCE <br />From the above observations it is found that: <br />12% felt that Signs at Big Bazaar was Very Informative <br />65% felt that Signs at Big Bazaar was Informative <br />22% felt that Signs at Big Bazaar was Not Informative<br />1% felt that Signs at Big Bazaar was Not at all Informative<br />Page 68Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 69<br />9) Did you face problem in reaching for items in the rack? <br />Respondents <br />Yes 32 <br />No 68 <br />Table 9 – opinion on convenience in reaching for items in rack<br /> Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />32<br />68<br />items in the rack<br />Ye s<br />No<br />Figure 12 - opinion on convenience in reaching for items in the rack <br /> <br />INFERENCE <br />From the above observations it is found that: <br />32 % felt that they had problem in reaching for the items in the rack <br />68% felt that they had no problem in reaching for the items in the rack <br />Page 70Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 71<br />10) Do you agree that items such as Chocolates, Biscuits, and Soft Drinks should <br />be close to entry and exit doors for casual customers? <br />Respondents <br />Agree 68 Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Somewhat Agree 28 <br />Disagree 4 <br />Table 10- opinion about soft drinks, biscuits for casual customer<br />68<br />28<br />4<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />80<br />Agr ee Somewhat Agr ee Disagr ee<br />Response<br />Figure 13 <br /> <br />INFERENCE <br />From the above observations it is found that: <br />Page 72<br />¾ 68% Agreed that items such as Chocolates, Biscuits & Soft Drinks should be <br />placed near entry and exit doors for casual customers Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 73<br />¾ 28% Somewhat agreed that items such as Chocolates, Biscuits & Soft Drinks <br />should be placed near entry and exit doors for casual customers <br />¾ 4% Disagreed that items such as Chocolates, Biscuits & Soft Drinks should <br />be placed near entry and exit doors for casual customers <br />11) Do you agree that Window Display should be changed weekly or for every <br />Fortnight to ensure fresh display? Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Respondents <br />Agree 67 <br />Somewhat Agree 33 <br />Disagree 0 <br />Table 11- opinion on whether window display should be changed weekly<br />67<br />33<br />0<br />0<br />10<br />20<br />30<br />40<br />50<br />60<br />70<br />80<br />Agree Somewhat Agree Disagree<br />Window Display<br />Response<br />Figure 14 - opinion on window display <br />INFERENCE <br />Page 74<br />From the above observations it is found that: Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 75<br />¾ 67% Agreed that Window Display should be changed every fortnight to <br />ensure fresh display <br />¾ 33% Somewhat Agreed that Window Display should be changed every <br />fortnight to ensure fresh display <br />¾ While None of them Disagreed that Window Display should be changed <br />every fortnight to ensure fresh display Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />12) Did the distance between the Aisles facilitate for easy movement of the <br />Shoppers? <br />Respondents <br />Yes 62 <br />No 38 <br />Table 12- opinion on space between aisles<br />62<br />38<br />Aisles<br />Yes<br />No<br />Figure 15 - opinion on space between the aisles <br />Page 76Visual Merchandising at Big Bazaar<br />MPBIM   2009                                                                                                                          <br />Page 77<br /> <br />INFERENCE <br />From the above observations

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