EXECUTIVE SUMMARY Marketing products using visual merchandising system is an age-old practice but with growing growth of retail industry, the art or arguably the science of Visual Merchandising has gone to occupy a newfound fancy. There is a growing recognition of the need for an effective Visual Merchandising. But even as it continues to grow, the understanding of Visual Merchandising impact and effectiveness is still in its infancy. The shopping behaviour which governs the decision to buy is a function of three stimuli viz., visual, auditory and kinaesthetic; the visual stimulus is the easiest and most widely used tool for attracting customers. This project deals with components of visual merchandising, and a comparative analysis of six retail lifestyle stores in Bangalore. The comparison has been made taking into account the components of visual merchandising and rating each store on each of these components. The methodology followed is questionnaire method with a total sample size of 150 respondents, 25 respondents from each store namely Lifestyle, Bangalore Central, Shoppers Stop, Globus, Westside and Pantaloons. The data is tabulated and graphically represented through histograms, pie-charts, line graphs etc. Findings and recommendations are listed at the end of this project.
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EXECUTIVE SUMMARY
Marketing products using visual merchandising system is an age-old practice but with growing growth
of retail industry, the art or arguably the science of Visual Merchandising has gone to occupy a
newfound fancy. There is a growing recognition of the need for an effective Visual Merchandising. But
even as it continues to grow, the understanding of Visual Merchandising impact and effectiveness is still in
its infancy. The shopping behaviour which governs the decision to buy is a function of three stimuli viz.,
visual, auditory and kinaesthetic; the visual stimulus is the easiest and most widely used tool for attracting
customers.
This project deals with components of visual merchandising, and a comparative analysis of six retail
lifestyle stores in Bangalore. The comparison has been made taking into account the components of
visual merchandising and rating each store on each of these components.
The methodology followed is questionnaire method with a total sample size of 150 respondents, 25
respondents from each store namely Lifestyle, Bangalore Central, Shoppers Stop, Globus, Westside and
Pantaloons. The data is tabulated and graphically represented through histograms, pie-charts, line graphs etc.
Findings and recommendations are listed at the end of this project.
RETAILING
Retailing consists of those business activities involved in the sales of goods and services to
consumers for their personal, family or household use. The field of retailing is both
fascinating and complex. It has enormous impact on the economy, in distribution, and its
relationship with companies that see goods and services to retailers for their resale or use.
Retailing is the final stage in the distribution process, it does not necessary have to include a
retailer. Manufacturers, importers, non-profit firms, and wholesalers,and other
organization are also considered as retailers when they sell goods and/or services to final
consumers. Competition in the retailing scene has intensified manifold for the past few
decades, generally as a consequence of new technologies, more sophisticated management
practices and industry consolidation. These trends have been especially pronounced in the
food industry.
There has been a significant amount of studies that examine the issues of retail channel management and
retail marketing strategies to tackle the fierce competition in existing retail channels in food industry. As in
all other industries, the ultimate decider of the eventual success of an alternative retail channel is the
CONSUMER.
Consumers refer to individuals who buy products and services for themselves or on behalf
on their households. They are invariably either users of these products or services or
responsible for the welfare and well being of those who are. Since consumers are extremely
crucial for retailers, an understanding of consumer behavior is an essential prerequisite of
successful retail marketing strategy and one of the most fundamental principles of in exerting
influence on consumer patronage decision process. Without customer focus, marketing
planning can easily be dominated by the actions of competitors or internal influences. The
success of a retailer depends on how well he/she selects, identifies and understands his
customers.
The feasibility of new retail channels is also highly dependent on retailers’ ability to select
the type of consumer segments to reach (mass markets, market segment, or multiple
segments), to identify the characteristics and needs of the specific target market and understanding
how consumers make decisions. According to Peter McGoldrick, the most successful examples of
innovation and evolution in retail formats are retailers that respond accurately and profitably to
previously unsatisfied needs.
TYPES OF RETAIL OUTLETS
The emergence of new sectors has been accompanied by changes in existing formats as well as the
beginning of new formats:
Hyper marts, typically 8,000 sq.ft and more
Large supermarkets, typically 3,500-5,000 sq. ft.
Mini supermarkets, typically 1,000-2,000 sq. ft.
Convenience stores, typically 750-1,000sq. ft.
Discount/shopping list grocery
THE INDIAN RETAIL INDUSTRY
Estimates of the size of the retail sector vary. The Confederation of Indian
Industry (CII) estimates that the total market in 2002 was between US$180 billion
and US$200 billion. ICICI, an Indian bank, used wider criteria to estimate the
market at US$292 billion in 2003; the Economist Intelligence Unit (EIU) estimates the market in the
same year to have totalled US$284 billion. The majority of the retail market continues to be unorganized. At
present the organized sector accounts for only 2 to 4 percent of the total market, although the EIU forecasts
that on current trends that will rise to between 20 and 25 percent by 2011. The level of retail sales per head
remains one of the lowest in Asia.
For retailers, a critical issue is how fast and how far the consuming class will grow. This depends
both on the growth of personal disposable income, and the extent to which retailers succeed in reaching
lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid.
This is a challenge that admits no easy solution, say companies. There is no point in going to a destitute
person and saying, here, I’ve got an aftershave lotion for you, says a senior manager at a leading consumer
product company.
You have got to find a relevant product, a needful product. The consumer market remains remarkably
undeveloped. Consumer goods penetration is very low compared to other emerging economies, and
consumer markets have the potential to grow rapidly in the coming decade.
According to a leading company that profiles household spending throughout
Asia, India still has a relatively narrow middle class, reflecting a lower proportion
of urban households compared to some Asian countries. It is estimated that around
70 percent of Indians live in the countryside, compared to around 60 percent of Chinese.
Indian consumers do not follow the consumption patterns seen in other Asian countries. As Indians
have grown richer, they have begun to spend more on vehicles, phones and eating out in restaurants,
according to recent research on consumption patterns. Indians discretionary spending is focused outside
the home; unlike other Asian consumers, they have tended not to greatly increase their spending on clothes,
personal care and household goods.
Consumption is moving out of the home, says a consumer goods producer. It’s
moving into lifestyle products, eating out, events, entertainment. And that is going
to continue. India is also unusual in its patterns of urbanization. The population
of cities has been rising in absolute terms and relative to rural population but at a
rather slow rate, unlike other Asian economies. By 2001, 28 percent of Indians
were living in towns, compared to 39 percent of Chinese and 83 percent of South
Koreans.
Some smaller Indian towns are actually shrinking as Indians congregate
increasingly in larger towns, which now account for more than three-quarters of
the urban population. India’s demographic advantage Increases in wealth,
improvements in life expectancy and increased access to birth control are reducing
fertility rates worldwide. The reduction is most marked in developing countries:
the World Bank’s population data shows that since the 1970s medical care and
birth control have dramatically reduced the number of children born per couple,
and dramatically increased the proportion of citizens living past retirement age.
India, however, is one of the handfuls of countries where the proportion of citizens
of working age is forecast to fall only slowly, and the overall labour force is
growing. A growing labour force both enables higher growth rates and creates an
Urgent political need for growth: according to the Asian Development Bank India will need to achieve
around eight percent average annual growth over the next two decades to create employment for all new
entrants to the workforce.
India’s forecast lower age dependency ratio over the next half-century means that public finances will
come under less strain than in most other countries, making infrastructural investment easier and
allowing the economy to continue growing well above the global trend.
According to the National Council of Applied Economic Research (NCAER), this
pro-growth demographic factor will be an important contributor to the expansion
of consumer markets in India. The NCAER forecasts that the number of
consumers driving growth will grow from 46 million households in 2003 to 124
million households in 2012, which will further drive increased volume in
consumer markets, while increased value will be driven by the fact that consumers are predominantly
young: 54 percent of Indians are under 25 years of age.
For their part companies repeatedly point to the demographic outlook as the most
positive factor in the long-term growth forecast for consumer markets. Policy is
positive at the moment, but demographics are a very important factor, says a
senior manager at a leading consumer product company. Who knows, tomorrow
we may have a communist government, but demographics is something the
government can’t do anything about, so that is a guaranteed positive.
India has sometimes been called a nation of shopkeepers. This epithet has its roots in the huge number of
retail enterprises in India, which totalled over 12 million in 2003. About 78% of these are small family
businesses utilising only household labour. India's retail sector appears underdeveloped not only by the
standards of industrialized countries but also in comparison with several other emerging markets in Asia
and elsewhere. There are only 14 companies that run department stores and two with hypermarkets.
Retail sales now accounts for 44 per cent of the GDP.
Food sales accounts for 63 per cent of the total retail sales, growing to 10 lakh crores from
3.81 lakh crores in 1996.
The organized retail food and grocery sector constitutes the largest opportunity for growth and account for
2% of total sales at present.
Urbanization, working spouses, increasing household disposable incomes and convenience of one stop shop
with good ambience drive growth of retailing in India.
Government policy
There has been vigorous opposition to foreign direct investment (FDI) in
retailing from small traders who fear that foreign retailing companies
would take away their business, lead to the closure of many small trading
businesses and result in considerable unemployment, but the
government has barred FDI in retailing since 1997. Hence, at present,
foreign retailers can only enter the retailing sector through franchising
agreements.
Organizational characteristics
Given the traditional and underdeveloped state of the Indian retail sector,
the organizational characteristics of retail enterprises are rudimentary.
Most of them belong to independent enterprises in the form of small
family businesses.
Cooperatives have been present in India for several decades, spurred by
the encouragement given by the Indian Government, which viewed the
cooperative movement as an integral component of its erstwhile
socialist policies. However, since the 1990s, there has been a reduction
in government support for cooperatives. In 2002, there were about
35,000 outlets run by cooperatives.
Economic liberalization, competition and foreign investment since the 1990s led to a
proliferation of brands with both foreign and Indian companies
acquiring a strong brand equity for their products. Hence, franchising
emerged as a popular mode of retailing. Sales of franchises grew at a
rapid pace of 14% per annum over the review period. In 2002, there
were over 5,000 franchised outlets.
The other major retailing organisation format is multiples, better known
as "chain stores" in
India. In 2002, there were about 1,800 chain stores. Among the various
organizational
formats, sales of chain stores grew at the fastest pace, with sales growth during the review period averaging 24% per year.
India represents an economic opportunity on a massive scale, both as a global base and as a
domestic market. Regulatory controls on foreign direct investment (FDI) have relaxed
considerably in recent years. However, while retailing currently remains closed to FDI, this is
an area of ongoing debate. This means that foreign retailers and consumer goods
manufacturers can only participate in the retail market through indirect access strategies, such
as wholesaling, franchising or licensing, or by having a manufacturing base in India, or in
businesses upstream of retailing. However, the Indian government has indicated in 2005 that
liberalization of direct investment in retailing is under active consideration. Price
controls
have been progressively liberalized since 1992, but a small number of items remain
fully
controlled. There are also extensive controls on packaging, labelling and
certification.
Estimates of the size of the retail sector vary, with recent calculations putting the annual
value of Indian retailing anywhere between US$180 billion and US$292 billion in 2003.
The retail sector is largely made up of what is known in India as the unorganized sector.
This sector consists of small family-owned stores, located in residential areas, with a shop
floor of less than 500 square feet. At present the organized sector (everything other than
these small family-owned businesses) accounts for only 2 to 4 percent of the total market
although this is expected to rise by 20 to 25 percent by 2010.
Many of the companies surveyed believe that the potential size of this market
is underestimated. They consider that there are considerable opportunities for
organized retailers in the kind of rural territories that many companies have failed to
address. A critical issue is how fast and how far the consuming class will grow. This
depends both on the growth of personal disposable income and the extent to which
organized retailers succeed in reaching lower down the income scale to reach potential
consumers towards the bottom of the consumer pyramid.
Companies expect retail growth in the coming five years to be stronger than GDP growth,
driven by changing lifestyles and by strong income growth, which in turn will be supported
by favorable demographic patterns. The structure of retailing will also develop rapidly.
Shopping malls are becoming increasingly common in large cities, and
announced
development plans project at least 150 new shopping malls by 2011. The number of
department stores is growing much faster than overall retail, at an annual 24 percent.
Supermarkets have been taking an increasing share of general food and grocery trade over the
last two decades.
Consumer credit will also grow, assisted by the likely fall in retail lending rates and
more efficient and consumer-friendly lending practices. Distribution continues to improve,
but it still remains a major inefficiency.
Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in
logistics costs that are very high as a proportion of GDP, and inventories which have to be
maintained at an unusually high level. Marketing and advertising are of increasing interest
and concern to consumer companies. Indian consumers are becoming
increasingly
sophisticated and knowledgeable about products; media channels that allow companies
to
communicate with consumers are growing in diversity and reach. Foreign brands remain very
powerful in India, especially in clothing and personal care products, but increasingly brands
have to be associated with value. Advertising is becoming a bigger part of the marketing
mix
ñ companies are concerned about identifying consumer insights and the profusion of media
channels.
Food and beverage offer the greatest organized retail growth opportunities, say companies.
The main growth opportunity in the segment is in processed foods: rapid growth in the
processed food segment is already apparent, changing lifestyles and food habits are resulting
in the rapid expansion of branded food outlet and cafe chains. Gemstones and jewellery
represent the most significant specialist segment of Indian retailing. Organized jewellery
retailers are increasingly offering brand solutions to the demand for quality and value, as
consumers move away from traditional retail settings reliant on family retailers.
All companies agree: Indian consumer markets are changing fast, with rapid growth in
disposable incomes, the development of modern urban lifestyles, and the emergence of the
kind of trend-conscious consumers that India has not seen in the past. Indians are travelling
abroad a lot more, says a representative of an industry association. They get exposed to
what is happening in other markets, they bring back new attitudes and preferences.
But with those changes, companies are adamant that while there are growth opportunities
for
consumer companies, there are few easy pickings. You canít sell junk in India, says a
senior manager in a leading fashion company. it is not like worldwide fashion, where people
might wear a garment three or four times and then discard it. In India you have to
give
value.
Companies are also increasingly keen to bring organized retailing to unvisited arts of
the economy. We think the best opportunities are in rural markets, says a leading shoe
retailer. Our whole strategy is to penetrate the rural market. Distribution remains the
biggest challenge companies face, not least because India’s transport infrastructure
remains weak. Understanding the consumer, understanding the marketing
environment, these are challenges, but distribution is the biggest issue, says a personal
care products company. A leading watch and jewellery company agrees: Distribution and
marketing is a huge cost in Indian consumer markets. It’s a lot easier to cut
manufacturing costs than it is to cut distribution and marketing costs.
Companies expect that the next cycle of change in Indian consumer markets will be the
arrival of foreign players in consumer retailing. Although FDI remains highly restricted in
retailing, most companies believe that will not be for long. The very fact that politicians
have left the issue open leads us to think the restrictions are going to be reviewed, says a
leading sportswear manufacturer. And if retailing is liberalized, say companies, growth will
be boosted, but so will competition. Says a leading shoe retailer: Indian companies know
Indian markets better, but foreign players will come in and challenge the locals by sheer cash
power, the power to drive down prices. That will be the coming struggle.
VISUAL MERCHANDISING
Visual Merchandising is defined as selling a product through a visual medium. It is
arranging items for display and thereby turning a passive looker into an active buyer,
through use of color, texture, composition and visual communication.
EVOLUTION OF VISUAL MERCHANDISING
Visual merchandising is not a newfound tool; it has been around since selling started. When a
vegetable vendor arranges the best of his produce on to for people to touch and feel them, or
when the jeweler puts the best of his pieces on the glass panels for passerbyís to see, itís
visual merchandising at work. Starting from the 1800ís it became associated with retail
industry. The Victorian era made window displays popular and the Great Exhibition of 1851
in London established the prominence of display over the items while commercializing the
practice. In due course visual merchandising became an inalienable part of the fashion and
retail industry.
As far as the term Visual Merchandising is concerned, it became widespread only in 1970
even though it was coined during the 1940s. From the late 1800s till the 1920s, visual
merchandisers were known as window trimmers. By the late 1920s, the window trimmers
were referred to as display men, just as advertising industry called its people ad men. The
industry is evolving and entering new domains, Visual Merchandising is increasingly
perceived as a part of the overall brand communication process.
COMPONENTS OF VISUAL MERCHANDISING
STORE IMAGE
Image can be described as the overall look of a store and the series of mental pictures and
feelings it evokes within the beholder. For the retailer, developing a powerful image provides the
opportunity to embody a single message, stand out from the competition and be
remembered.
As a rule, image is the foundation of all retailing efforts. While store layout, presentation,
signing, displays and events can all change to reflect newness and excitement from week to
week, season to season, they must always remain true to the underlying store image. The
following elements combine to form a distinctive image that not only reaches out and grabs
the customer's attention, but also makes a positive impression within those precious few
seconds. Image forms the solid foundation for the remaining components of Maximizing
Store Impact
STORE DESIGN
Store design plays a crucial role in branding: it reflects and reinforces the corporate image. It
tangiblizes what the retailer claims to be. The sights, sounds, smells and other any other
aspect should therefore reflect what the retailer brand is about and what its attributes are.
Different types of store design are
Grid: it contains long gondolas (a free standing block of shelves used to display goods in a
supermarket) of merchandise and aisles in repetitive pattern.
Racetrack: also known as loop. It provides a major aisle to facilitate customer traffic that has
access to the storeís multiple entrances.
Free Form: also known as boutique; arranges fixtures and aisles asymmetrically.
Visual merchandising creates a connection between the companyís image and the look
of the store.
EXTERIOR DESIGN
STORE NAME
An effective store name sets the tone and provides a store's identification by conjuring up an
image in the customer's mind. An effective name is consistent with both the product mix and the
store atmosphere.
VISUAL TRADEMARK
An identifiable trademark adds a visual image to the memory recall of a store name, by
combining words and pictures, color, shape, typeface, texture and/or style to make it stand
out.
STOREFRONT
Storefront is also an important element, which adds to the store image like the exterior
architecture, signing and window displays.
EXTERIOR ARCHITECTURE
A store's exterior look is often referred to as the architecture, and comprises aspects such as
building materials, architectural style and detail, colors and textures. These elements give a
lasting first impression to the consumer. It is important that the exterior look and ìfeelî right to the
shopper.
STORE SIGN
The store sign is a vital element of the storefront and also an important component of Visual
Merchandising it helps in identifying the store In realizing the value of a strong storefront sign,
many retailers are employing new design techniques which include projecting or
cantilevering the store sign beyond the lease line, adding motion, or using three-dimensional
lettering and unique lighting applications to add depth to the sign.
WINDOWS DISPLAY AND FLOORING
A store's exterior windows or glass storefront provide an additional opportunity to reach out
and grab the passing customer. Windows are integral in creating a positive impression since
they offer an opportunity to begin telling the store's unique merchandise story. The flooring
and the number of floors a retail outlet has, also make an important impact on the consumers.
INTERIOR DESIGN ELEMENTS
The elements of interior design can be used to create an image that matches the desired
customer profile.
FIXTURES
A major consideration in developing an appropriate store design involves the use of fixtures. They
are used to display merchandise, to help sell, to guard it and to provide a storage space for it.
They should be attractive and focus customersí attention and interest on the
merchandise.
DISPLAYS
Displays play an important role in a retail store. An attractive and informative display can help
sell goods. There are several principles that help ensure this effectiveness. They are achieving
balance, provide dominant point, create eye movement etc.
MERCHANDISE PRESENTATION TECHNIQUE
Merchandise Presentation technique is one of the most important component of Visual
Merchandising. The following are the different presentation techniques:
Idea-Oriented Presentation: a method of presenting merchandise based on a specific idea
or image of the store.
Style/Item Presentation: organizing stock by style or item
Color Presentation: A major role in a display is that of the color and lighting.
Aesthetic and innovative use of them can lure customers to visit more aisles than they
usually do and spend more time there.
Price- lining: is the technique when retailers offer a limited number of predetermined price
points within a classification.
Vertical Merchandising: merchandise is presented vertically suing walls and high gondolas
Tonnage Merchandising: here large quantities of merchandise are displayed together to
enhance and reinforce a storeís price image
Frontal Presentation: here the retailer exposes its much of the product as possible to catch
the customerís eye
Fixtures: the primary purposes of fixtures are to efficiently hold and display merchandise.
COLOR
The psychological effect of color continues to be important to retailers. Color probably more than
any other factor except price, is the ìstopperî that catches the consumerís attention. Intelligent
use of color is important in store design.
LIGHTING
Proper lighting is one of the most important considerations in retail outlet. Today lighting has
become a display medium. It is an integral part of the storeís interior and exterior design.
Lighting is used to highlight merchandise, sculpt space and capture a mood or feeling that
enhances the storeís image.
CEILINGS
Ceiling represents a potentially important element of interior design. Ceiling heights, color and
material used will influence the store look.
FLOORING
Flooring choices are important because the coverings can be used to separate departments;
muffs noise in high-traffic areas and strengthen the store image.
SHELVING
The material used for shelving as well as its design must be compatible with the
merchandising strategy and the overall image desired. Music and scent in the retail outlet can
influence consumer behavior to a large extent.
Dos and Don’ts in Visual Merchandising
Dos
Window display should be changed weekly or fortnightly to ensure freshness. The display
and layout should differentiate the store from competition. Colors and design should be
characteristic of the brand image.
Impulse purchase items (perfumes, watch straps, gifts) should be close to the entry and exit
doors for non-serious or causal customers would like to browse the whole store. Their
purchase is not pre-planned and because these impulse purchase items are relatively cheaper they
might buy them in a whim. Also when customers wait at the billing counter the people
accompanying the buyer may snoop around and make a purchase too.
Use symbols as directions.
Control movement and crowd ñ aim of the design.
Distance between the aisles should facilitate the easy for movement shoppers.
Doníts
Avoid too many floors
Racks shouldnít be too high, especially in bookstores because customers might not be able to
reach the books.
Lighting shouldnít be poor and at the same time shouldnít be very bright. Shadows are
essential for that added effect.
The display shouldnít be contrast to the section in which it is. It also shouldnít be
unaesthetic.
The whole point of visual merchandising is to help companies to communicate the brand
message so that consumers can make better-informed choices. Consumers increasingly shop by
what attracts their eye, whether it is perfume, a sandwich or chocolates.
NEED AND IMPORTANCE OF THE STUDY
Marketing products using visual merchandising system is an age-old practice but
with growing growth of retail industry, the art or arguably the science of Visual
Merchandising has gone to occupy a newfound fancy. There is a growing
recognition of the need for an effective Visual Merchandising. But even as it
continues to grow, the understanding of Visual Merchandising impact and
effectiveness is still in its infancy.
The shopping behavior which governs the decision to buy is a function of three stimuli viz.,
visual, auditory and kinesthetic; the visual stimulus is the easiest and most widely used tool for
attracting customers. Although Visual Merchandising has long been an important part of
retailing (clothing, house-wares, etc.) it is not as well known or accepted within the food
industry. While there is substantial amount of research on each of the components of visual
merchandising, a holistic approach towards visual merchandising involving the consumersí
perceptions has not attracted much of research effort, particularly in using the ëGESTALTí
approach to visual merchandising. This is the vital gap in the current research and this has
prompted to take up research investigation in this field.
COMPANY PROFILES
Pantaloon is the company's departmental store and part of life style retail format. In fact,
RIL took its very initial steps in the retail journey by setting up the first Pantaloon store
in Kolkata in 1997. In a short time Pantaloon has been able to carve a special place for it
self in the hearts and minds of the aspirational Indian customers. The company has depth
of offering for both men and women at affordable prices. A striking characteristic of
Pantaloon has been the strength of its private label programme. John Miller, Ajile.
Scottsvile, Lombard, Annabelle are some of the successful brands created by the
company. With 13 stores across the country and an ever-increasing stable of private
brands, Pantaloon - in the coming years is poised to become a leading fashion
trendsetter.
From a humble beginning in 1987, Pantaloon as today evolved as a leading manufacturer-
retailer in the country with 16 Pantaloon stores and 21 hypermarkets(Big Bazaar), 33
Food Bazaars, 3 central, 2 Fashion Station, 2 aLL and 1 MeLa store operational across
the country. It has been a remarkable journey for PRIL as its evolved from a
manufacturing to a completely integrated player controlling the entire value chain.
During its evolution the company achieved various milestone and demonstrated
innovativeness and leadership by pioneering concepts that has now become industry
standards.
Vision:
To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the
Department Store Category.
Positioning
Shoppersí Stop is positioned as a family store delivering a complete shopping experience
defined by its mission, vision and values.
1991: Shoppers' Stop launches at Andheri
Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppersí Stop is a
member of the K. Raheja Corp. of Companies. Shoppersí Stop is the first retail venture by
the K. Raheja Corp. Promoted by Mr. Chandru L. Raheja, Mr. Ravi C. Raheja and Mr. Neel
C. Raheja, the K. Raheja Corp. have been leaders in the construction business for over 48
years.
With its wide range of merchandise, exclusive shop-in-shop counters of international
brands and world-class customer service, Shoppersí Stop brought international standards of
shopping to the Indian consumer providing them with a world class shopping
experience.
India ñ 2000 & BeyondÖ
Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai
(Andheri, Bandra, Chembur, Kandivli, Mulund), Pune, Gurgaon and Kolkata, Shoppersí
Stop is today recognised as Indiaís premier shopping destination. With a customer entry of
about 50,000 customers a day, a national presence with over 6,00,000 square feet of retail
space and stocking over 250 brands of garments and accessories, Shoppersí Stop has
clearly become a one stop shop for all customers.
Customer Profile
Shoppersí Stopís core customers represent a strong SEC A skew. They fall between the
age group of 16 years to 35 years, the majority of them being families and young couples
with a monthly household income above Rs. 20000 and an annual spend of Rs.15000. A
large number of Non - Resident Indians visit the shop for ethnic clothes in the
international environment they are accustomed to.
Range of merchandiseÖ
The stores offer a complete range of apparel and lifestyle accessories for the entire
family. From apparel brands like Provogue, Color Plus, Arrow, Leviís, Scullers, Zodiac to
cosmetic brands like Lakme, Chambor, Le Teint Ricci etc., Shoppersí Stop caters to every
lifestyle need. Shoppers' Stop retails its own line of clothing namely Stop, Life , Kashish,
Vettorio Fratini and DIY. The merchandise at Shoppersí Stop is sold at a quality and price
assurance backed by its guarantee stamp on every bill.
Their motto: ìWe are responsible for the goods we sellî.
Customer Rewards ñ The First Citizen
Shoppersí Stopís customer loyalty program is called The First Citizen. The program
offers its members an opportunity to collect points and avail of innumerable special
benefits. Currently, Shoppersí Stop has a database of over 2.5 lakh members who
contribute to nearly 50% of the total sales of Shoppersí Stop.
International Affiliations
Shoppersí Stop is the only retailer from India to become a member of the prestigious
Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29
experienced retailers from all over the world, which include established stores like
Inference: Respondents feel that lighting of Lifestyle is best when compared to the other
five.
Bangalore Shoppers
Rating Central Lifestyle Stop Westside Globus Pantaloons
3.72 3.64 3.16 2.96 2.92 3.12
5 9 8 6 3 4 4
4 8 7 5 6 7 6
3 3 5 4 7 3 7
2 2 3 7 5 5 5
1 3 2 3 4 6 3
No. of
respondents 25 25 25 25 25 25
Point 93 91 79 74 73 78
Avg. 3.72 3.64 3.16 2.96 2.92 3.12
Rating on dress code
Pantaloons 3.12
Globus 2.92
Westside 2.96
Shoppers Stop 3.16
Lifestyle 3.64
Bangalore Central 3.72
0 1 2 3 4
Inference: Respondents feel that dress code of Bangalore Central is most appropriate in
comparison to the other five.
Bangalore Central Lifestyle Shoppers Stop Westside Globus Pantaloons
3.64 3.80 3.34 2.80 2.91 3.17
Store Display 3.76 4.08 3.28 2.6 2.68 3.16
Ambience 3.72 3.92 3.36 2.6 2.76 3.08
Store
Planning and
Design 3.52 3.76 3.32 2.56 2.84 2.96
Store
Windows 3.72 3.68 3.44 2.64 2.8 3.24
Flooring 3.64 3.36 3.16 2.76 3 2.88
Displays 3.8 4.16 3.32 2.8 3.28 3.44
Signs 3.4 3.76 3.48 2.92 3 3.24
Space Design 3.68 3.96 3.28 2.96 2.96 3.12
Fixture and
Hardware 3.4 3.92 3.28 2.96 2.88 3.16
Props and
Decorative
Items 3.6 3.36 3.92 2.92 3.08 3.24
Colors 3.76 3.92 3.2 2.84 2.68 3.24
Lighting 3.56 3.88 3.28 2.92 3 3.32
Dress Code 3.72 3.64 3.16 2.96 2.92 3.12
Cumulative
Score 47.28 49.4 43.48 36.44 37.88 41.2
Average 3.64 3.80 3.34 2.80 2.91 3.17
Average Rating
4.00 3.64 3.80
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Bangalore LifestyleCentral
3.34 3.17
2.80 2.91
Shoppers Westside Globus PantaloonsStop
Inference: Based on the thirteen parameters we arrive at the average rating for each store.
Lifestyle is rated highest and follows the best practices of visual merchandising.
Lifestyle: Out of thirteen parameters Lifestyle got top rating in nine. Currently it is
practicing the best visual merchandising techniques. The respondents are extremely
satisfied with Lifestyle in terms of visual merchandising. But there is an area for
improvement in store windows, flooring, props, decorative items and appropriateness of
dress code.
Bangalore Central: Bangalore Central is a close second behind Lifestyle. In terms of
store windows, flooring and appropriateness of dress code, it is rated number one by
respondents. It requires marginal improvement in most of the areas mentioned to beat
Lifestyle. Overall respondents were satisfied.
Shoppers Stop: Shoppers Stop comes third just behind Bangalore Central. Shoppers
Stop could improve on fixtures to display its line of apparel more effectively. Shirts were
displayed on shelves in Lifestyle which were more attractive than hangars used in
Shoppers Stop.
Pantaloons: Pantaloons could improve on flooring which is not appealing when
compared to the other five stores. Store display could also be improved. Most of the
parameters were given an average rating by the respondents.
Globus: Window display is virtually non existent. The only attractive feature of this store is
a hoarding of brand ambassador ìSoha Ali Khanî at the entrance of the store.
Westside: The interesting thing about Westside is that while going up the escalator,
strategic placement of gift items hits you in the face. This feature is unique to Westside.
However it needs improvement in all other areas of Visual Merchandising.
FINDINGS AND RECOMMENDATIONS
The ambience of the store is a very important element in Visual Merchandising as it
influences consumers in purchase decision. A customer is highly influenced by the look
and feel of the store. The minute he/she walks in, an image of the store is formed. This
image is extremely important to the retailer if he wants to bag a new customer. Hence the
ambience is to be given utmost importance. A retailer needs to hire a good interior
decorator and if possible use ergonomics while designing a store.
Visual merchandising will lead to impulse purchase of the product. Visual merchandising
is used to attract shoppers to view the product more closely. Effective visual
merchandising is essential to attract shoppers enticing them to make a purchase. Effective
visual merchandising should also be supported by good sales staff to close deals with
shoppers.
Visual Merchandising enhances the pleasure of shopping experience.
Store windows can be used effectively to entice people on the streets to walk into the
store.
Promotions, props and decorative items are huge attractions with regard to visual
merchandising. Unfortunately, stores use these tools only during festivals and
anniversaries.
CONCLUSION
This project has helped me understand the importance and significance of visual
merchandising and its impact on consumer buying behavior. It has given me exposure to
the practical side of retailing and at the same time enhanced my knowledge by applying
theory learnt in class to practice.
Visual merchandising when used effectively is no doubt, a powerful tool to entice
customers in making a purchase decision. Retailers can attract more customers and
increase sales by proper use of visual merchandising techniques.
BIBLIOGRAPHY
BOOKS:
Retail Management By Ron Hasty & James Reardon
Marketing Management - Philip Kotler
Research Methodology ñ Cooper and Schindler
JOURNALS AND MAGAZINES :
4 Ps
Business World
Business Today
ANNEXURES
I am a student of Christ University, Bangalore, pursuing BBA Program. As a part of the BBA curriculum, I have taken up a research project on VISUAL MERCHANDISING IN RETAIL UNITS. In this connection, I need some information. Below is the questionnaire. Kindly give your responses to the questions in the questionnaire. I sincerely assure your responses will be kept strictly confidential and shall only be used for academic purpose. I shall greatly appreciate your cooperation in completing my research project.
Mr. Sandipan Sarkhel
Visual Merchandising is defined as selling a product through a visual medium. It is
arranging items for display and thereby turning a passive looker into an active buyer, through use of
color, texture, composition and visual communication.
1 How often do you visit the store?
Weekly
Fortnightly
Monthly
Others (please specify)
2 How important is the ambience of the store while shopping?
Very important
Important
Neither important nor unimportant
Not important
Not at all important
3 How pleased are you with store display?
Very pleased
Pleased
Neither pleased nor displeased
Displeased
Very displeased
4 How appealing is the lighting, choice of colors, and material in the store?
Very appealing
Appealing
Neither appealing nor unappealing
Not appealing
Not at all appealing
5 How appropriate is the dress code of the staff?
Very appropriate
Appropriate
Neither Appropriate nor inappropriate
Not appropriate
Not at all appropriate
6 How would you rate the store on the following aspects?
Ambience
Store planning and
design
Store windows
Flooring
Displays
Signs
Space design
Fixture and hardware
Props and decorative
items
Colors
Lighting
Excellent Very Good Good Average Poor
7 How probable are you to purchase a product without pre planning?
Very probable
Probable
Not probable
Not at all probable
8 How informative are the signs in the store?
Very informative
Informative
Not informative
Not at all informative
9 Do you agree that different stores that cater to different customers need to
be different in their internal design?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
10 Do you agree that the visual merchandising help retailers to communicate retail
brand message so that the customers can make better informed choices?
Totally agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Totally disagree
11 Which type of store design would you prefer?
Grid
Race track
Free-form
12 Do you agree that the window display (for the sake of VM) should be changed
weekly or fortnightly to ensure fresh display?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat agree
13 Do you agree that the impulse items like perfumes watches, socks, ties, gift items
and accessories should be close to the entry and exit doors for non-serious customers
and casual customers so that they can browse the whole store?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat agree
14 Do you agree that the retailers must ensure control movement and crowd in terms of
strategic positions of the exit doors?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
15 Do you agree that the retailers must ensure the distance between the aisles so as to
facilitate the easy for movement of shoppers?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
16 Do you agree that the retailers should avoid too many floors because shoppers would
be tired?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
17 Do you agree that the racks in the stores should not be too high?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
18 Do you agree that the retailers should ensure that lighting should not be poor and at
the same time should not be very bright and that shadows are essential?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
19 Do you agree that the store display should not be contrast to the section in which
it is and should not be unaesthetic?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
20 Do you agree that the VM should be powerful enough to enable that the customers
to visit as many aisles as possible?
Totally agree
Somewhat agree
Neither agree nor disagree
totally disagree
Somewhat disagree
21 Do you agree that the exposure through VM is a significant variable in consumer
decision-making?
Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
22 Do you agree that VM is not just physical, architectural exercise; it must encompass
aesthetics, the customers' desires and the business?
Totally agree
Somewhat agree
Neither agree nor disagree
totally disagree
Somewhat disagree
23 Please recommend some measures to make VM more effective, more appealing and