Conducted primary and secondary research on Visual Merchandising in Tommy HIlfiger using Qi5 survey and presented the report of the impact

1. Visual Merchandising
Survey Report
2016
Presented by:
Usha Vijayakumar
Kishan Sahani
Asish Pithadaiya
Jatin Taneja
Presented to:
Prof Steven Litt
Seneca College

2. 2 Executive Summary
This research helps to state the thoughtful and supporting
gesture that were provided by the respondents on the four
distinct variables of visual merchandising which are
Colours, Store Lightings, Music played in the Store and
window displays.
This idea has made shops to focus upon their visual merchandising side, as it has
grown to be a pivotal element in order to run the stores.
This research also provides assistance to the retailers who are willing to expand
their familiarity on the visual merchandising theory and strategies.
Keywords: variables, store layout, design, colour, lighting, music, fixtures,
window displays, survey, observation.

3. 3 Business Situation
Background:
Tommy Hilfiger was founded in 1985. Along with
Calvin Klein, it’s one of PVH’s two flagship brands.
In 2011, PVH Corp. (PVH) acquired Tommy Hilfiger
for approximately $3 billion. At the time, it
was the largest business combination in the
clothing and apparel industry. The acquisition was
a good fit for PVH. Both entities shared a similar
culture. It gave it a better platform to grow
internationally.
For 2014, Tommy Hilfiger’s global retail sales were $6.4 billion. PVH booked revenue of near $3.5 billion in
2014. The difference can be explained by licensee revenue of approximately $2 billion. PVH only gets to
report about 5% of the revenue on its books. Tommy Hilfiger gets 59% of its sales from North America, 28%
from Europe, 9% from Asia, and 4% from Latin America and Mexico. Its North American operations are retail
centric. Over 70% of the revenue from this region
comes from freestanding, company-operated
stores and concession shops. Tommy Hilfiger
gets 59% of its sales from North America, 28%
from Europe, 9% from Asia, and 4% from Latin
America and Mexico. Its North American
operations are retail centric. Over 70% of
the revenue from this region comes from
freestanding, company-operated stores and
concession shops.
Opportunity: Canada is only making 5% of the total revenue of the Tommy Hilfiger. Opportunity over here
is we can increase the sales of Canadian Tommy Hilfiger Stores by implementing new marketing strategies
like Visual Merchandising, when can play a pivotal role in the buying behaviour of the consumer.

4. 1. To study about consumer buying behavior of young and fashion conscious people
2. To investigate the role of visual merchandising impact on consumer buying behavior;
 Window Display
 In-store Display
 Promotional Display
 Store Layout
 Music Color and Lighting
 Exterior Signs / Mannequin display
3. To study the relation between floor merchandising on consumer buying behavior,
4. To study the impact of Tommy Hilfiger brand name on young fashion conscious people’s buying
behavior and
4 Objective of the Study

5. 5 Research Objectives
Hypothesis 1 is constructed to find out whether there is a significant
relationship between customer impulse buying behaviour and Mannequin
display.
Hypothesis 2 is designed to find out whether or not there is a significant relationship between customer’s
impulse on buying behaviour and In-store display.
Hypothesis 3 is designed to find out whether or not there is a significant relationship between customer’s
impulse on buying behaviour and promotional signage.
Hypothesis 4 is designed to find out whether or not there is a significant relationship between customer’s
impulse on buying behaviour and store layout.
Hypothesis 5 is designed to find out whether or not there is a significant relationship between customer’s
impulse on buying behaviour and interior ambience that is colour, music and lighting.

6. Customer
Behavior
Customer
Activities
Buying Using
Customer
Responses
Expressive Psychological
6 Previous Studies
Visual merchandising is purely a marketing concept that helps in collaborating
the details of the products through hoardings, pamphlets, shop boards, shelf
makers, banners, posters, etc. which the customers can scrutinize during their
visit to the market. (Source: Hefer and Cant)
Behaviour of the Consumer also plays a pivotal role in the attempts of Visual Merchandising. Consumer
behaviour can be defined as “the study of individuals, groups or organizations and the processes they use to
select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impact
that these processes have on the consumer and society”. (Source: Cant, van Heerden, and Ngambi)
The main purpose of this research is to examine the stimulus of impulse buying due to window display,
colour, lighting and music by the customers in the store. (Source: Kardes, Cline and Cronley) Adding to this
topic, stating that consumer behaviour also includes the consumer’s expressive, psychological and social
responses that lead, establish or follow these responses as demonstrated in Figure.

7. 7 Target Audience
As the major chunk of crowd will be youngsters, and our research will be
conducted on Tommy Hilfiger’s Visual Merchandising Strategy in Toronto,
Canada. The research will be done in the form of Survey questions, which will help us in finding the impulse
of customers on their buying behaviour.
We are targeting this segment and doing research on fashion conscious people of the group between mainly
18 to 44 years of age (male and female) who are more inclined toward in-trend shopping of big brands.

8. 8 Methodology
This research was conducted over a 45 day period in the last quarter of 2016 by our
Research Team. The first part of this report includes secondary research and their
insights.
 Survey is generated using the Q-Fi solution tool and the number of respondents were 1100.
 Survey was conducted online for the people of Greater Toronto Area (GTA).
 Data was gathered using the Q-Fi simulator (mock data) and the decisions were taken on the basis of the
generated data.
 Survey incentives were offered in terms of 40% off coupons of Tommy Hilfiger.
Every effort is made to provide accurate information. The information provided is “best available” on the day the data
was gathered. Changes in personnel, company products and operations change daily. Previous projects indicate the
most volatile information will be found with changes in personnel and company operations reported in the Prospect
Directory.

9. 8 Data Rules
Criteria for discarding a respondent’s survey:
 Respondent who will select “Never Visited” option in Q3 (How often do
you go at Tommy Hilfiger’s store) the respondent will be redirected to
the general questions to Q5 which is intended to ask general questions
to the respondents.
 Respondent who will select “No” in Q7 will be redirected to the general questions which is Q13 which
will be pictorial based question of store layout as the questions from Q8 to Q12 is for the Tommy
Hilfiger store’s questions.
Criteria for complete survey:
 Respondent who will select any of the following responses from Q3 other than “Never Visited” will be
qualified for the complete survey.
 Survey with the respondents answering “Yes” in Q7 will be moved to rest of the survey questions and
will be qualified for the complete survey and that data will be valuable to us.

10. 9 Respondents Profile
Approximately 32% i.e. 400 respondents are from 18 to 34
years old and only 59 of them are married and the rest of the respondents are either single or separated.
A significant observation eliminates the gender bias in income as 142 out the 261 high income
respondents are female compared to the 119 male respondents. A higher percentage of respondents
earn less than 10000$ as income and of les than 18 years of age.
A total of 1100 respondents were surveyed for this research
project. They are of different demographics and background
charateristics. Table 1 displays the various characteristics of the
project respondents. A total of 276 respondents preffered not
to share their gender. Overall the respondents are equally
distributed as male, female and otherwise.

11. 10 Respondent Purchase Behaviour
From the survey report it is observed that Female purchase more than men
with highest purchase frequency as weekly. The age distribution of female
has a mean of 11.6 and is centered around the female respondents
between 18 to 24 years old which is approximately 16% of the female
population. Hence there is an oppurtunity in the young women
population.
Table 2 exhibits the income distribution of the respondents with respect to age and gender.
Table 2 – Distribution of annual income with age and gender
The age distribution of male is skewed towards the right with 22% of the respondents are of higher age
than 45. Hence these respondents consists of the high annual income segment among the population.
Women have the higher distribution than men in the first and the last segment of income.
With respect to Tommy Hilfiger, the following insights are observed:
 18% of the respondents have never visited Tommy Hilger store i.e. 201 out of 1100
 Most female respondents who visited Tommy Hilfiger have less than $10000 income as
compared to most of the male respondents who vistied Tommy Hilfiger hav between $25000-
$50000 as their house hold income.
 Male and Female singles visits Tommy Hilfiger more often than married men and women.
Tommy’s major customers can be described as,
A single woman who has an household income less than $10000
A divorced man who has an household income of $25000 to $50000

12. 11 Key Finding- 1
Factors Influencing Purchase Decision
Figure 1. Influential factors for purchase decision
Figure 1 highlights the below mentioned insights:
 Visual merchandising factors have the highest
agreement of approximately 21% of the overall 899
respondents
 Respondents are not highly price sensitive and Brand
name is the second-high influential factor
Figure 2 highlights the below mentioned insights:
Older Respondents are highly influenced by visual
merchandising compared to the young ones. Respondents of
age 25 to 44 are less influential by the visual merchandising
Based on the general and purchases at Tommy Hilfiger, the respondents were asked questions on factors which
contributes maximum to their purchase. Out of 1100(N) respondents, 899 respondents have visited Tommy Hilfiger
already and answered the questions specific to the factors influencing their purchase with respect to Tommy Hilfiger.
The results support the research objective of visual merchandising impact on the purchase behavior.
These highly influential factors
contribute to visual merchandising
and will help to the customers to have
better experience
Thesefactorscontributeto
VisualMerchandising
Price and discount offers are least
influential towards their purchases
Figure 2. Heat Map of the VM influence over age groups

13. 12 Key Finding- 2
Fashion Conscious
Price sensitive
Brand Lovers
Customers who
plan their purchase, likes to purchase on their own and makes in and out of the
store by themselves are considered influence able customers who are our target
markets. These customers can be influenced easily by the visual merchandizing like
store layout and arrangement of the stores etc. Approximately 18% of the highly
agree respondents are young and less than 24 years old. Mannequin displays are
influencing older respondents who are more than 45 years old at the ratio of 39
out of 150. Middle aged men and women are least influenced by the visuals and
displays.
Hence the target segment for visual merchandizing is “Influence-able Customer” who maybe:
 Young women who are less than 24 years’ old
 Older men who are 45 years old or more
Possible Target Segments – Visual Merchandising
Customers who follow online Fashion blogs and social media to keep in trend
with the current fashion and follows celebrity endorsements are considered to
be fashion conscious. 6.27% of respondents are fashion conscious of which
2.16% respondents are most likely to purchase a product when endorsed by a
celebrity.
A general analysis of the data suggests that the overall population is not price
sensitive. It is observed from the factors influencing purchase with Price,
discounts and promotional signs held the highest disagreement. And it is
observed that the respondents above middle are not price sensitive and are
likely to purchase the product at any cost. About 35% of the middle respondents
have strong agreements to insensitivity towards price
Brand lovers are customers who are aware of premium brands and overlaps in
characteristics with the fashion lovers in following the celebrity endorsements for
a particular brand. Out of 284 female respondents, 80 of them are highly likely to
purchase a product for its brand name and 60 out of 260 male respondents
believe brand name will influence their decision. Young respondents who are
between 18 to 24 years old tend to be more influenced by brand names and
celebrity endorsements
Influence-able

14. 13 Key Finding- 3
A variety of questions were asked covering the possible segments and
the results are interesting. The questions varied from general purchase
beavhior to visual merchandising questions regarding store display and
layout mannequin displays etc. From the analysis of possible segments,
the following observations are obtained:
Women visits shops often than men both in generel and at Tommy Hilfiger. From weekly to
yearly, women shipping frequency is higher for weeekly and mothyl purchases. With respect
to Tommy Hilfiger, the observations remains the same, as women visits shops in terms of
weekly and monthly.
When it comes to price, men spend significantly more than women. The price distribution
with respect to gender, it is obsserved that mean purchase price of men is $60 compared to
$53 of women. It is also obsrved that men are likely to buy a product at any cost than women.
Interestingly Men and Women with higher income range are likely to spend less than
54% of men are highly motivated by the premium brands compared to 41% of women. In
correlation with the price analysis, men are likely to spend more and purchase premium
brands given that the general population behavior Is not price sensitive.
Being a shopper with little help and observing fashion sense from mannequins suggests that
women shoopers can be influenced more with visual merchandizing than men. The store
layout and mannequin fashion reference are high factors for women’s purchase. 16% of
women belives previous purchase experience, store layout and arrangement of products are
important factors for their purchase
Men are brand lovers, Women are price sensitive

15. 14 Conclusions and Recommendations
Older men and Younger women are influenced by store layout and mannequins e
Targeting fashion conscious young people by celebrity endorsements on window displays will
drive an increase in footfalls for the store
High earning men and low income women are the major customers for Tommy Hilfiger which
suggests that needed shift to the rest of the target segments
Influence-able customers are the main target segment who can be highly influenced with
visual merchandising concepts

16. APPENDIX

17. 16 Matching Diagram

18. 17 Matching Diagram

19. 18 Peer Evaluation