Visual Merchandising at Big Bazaar

Visual Merchandising at Big Bazaar

MPBIM 2009

A Project Report on

VISUAL MERCHANDISING IN THE RETAIL SECTOR

(A Case Study of Best Practices and Effective Strategies of

Visual Merchandising at Big Bazaar, Bangalore)

A Dissertation submitted in partial requirements for the award of MBA

Degree of Bangalore University

By

DILIPA S NAIK

Reg No: 07XQCM6021

MBA Fourth Semester

(2007-2009 Batch)

M.P.Birla Institute of Management

Bangalore-560001

Under the Guidance and Supervision of

Dr K V Prabhakar

Senior Professor

Page 1

M.P.Birla Institute of Management, Bangalore Visual Merchandising at Big Bazaar

MPBIM 2009

Page 2

DECLARATION

I hereby declare that this dissertation entitled “Visual Merchandising in Retail

Sector (Big Bazaar, Bangalore)” is the result of my own research work carried out

under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M P

Birla Institute of Management, Bangalore. I also declare that this dissertation has not

been submitted earlier to any Institute/University/Institution for the award of any

degree or diploma or similar title.

Place: Bangalore

Date: (Dilipa S Naik) Visual Merchandising at Big Bazaar

MPBIM 2009

Page 3

PRINCIPAL’S CERTIFICATE

This is to certify that this dissertation entitled “Visual Merchandising in Retail

Sector (Big Bazaar, Bangalore)” is the result of research work carried out by

Mr. DILIPA S NAIK under the guidance and supervision of Dr. K V Prabhakar,

Senior Professor, M.P. Birla Institute of Management, Bangalore

Place: Bangalore

Date: (Dr. Nagesh S. Malavalli)

Principal


MPBIM 2009

Page 4

GUIDE’S CERTIFICATE

I hereby state that the dissertation entitled “Visual Merchandising in Retail Sector

(Big Bazaar, Bangalore)” is the result of research investigation carried Out by Mr.

DILIPA S NAIK under my guidance and supervision.

Place: Bangalore (Dr. K V Prabhakar)

Date: Senior ProfessorVisual Merchandising at Big Bazaar

MPBIM 2009

Page 5

ACKNOWLEDGEMENT

I express my gratitude to Dr. Nagesh S. Malavalli, (Principal, M. P. Birla Institute of

Management) for providing me with the academic support.

I extend my sincere thanks to Dr. K V Prabhakar, Senior Professor, M.P.Birla

Institute of Management, Bangalore for guiding me effectively

Dilipa S Naik Visual Merchandising at Big Bazaar

MPBIM 2009

Page 6

TABLE OF CONTENTS

Contents

EXECUTIVE SUMMARY ................................................................................................... 9

CHAPTER 1- INTRODUCTION ...................................................................................... 10

CHAPTER 2 - INDUSTRY PROFILE ................................................................................. 13

CHAPTER 3 - VISUAL MERCHANDISING .................................................................... 27

CHAPTER 4 - COMPANY PROFILE .............................................................................. 38

PART A- THEORITICAL SETTING................................................................................ 42

CHAPTER 5 - Significance of Research .................................................................... 43

CHAPTER 6 - Literature Review.................................................................................. 44

Chapter 7 – Research Gap ....................................................................................... 46

CHAPTER 8- Problem Statement and Research Objective.................................. 47

CHAPTER 9 - Hypothesis.............................................................................................. 48

CHAPTER 10 - Research Methodology .................................................................... 49

CHAPTER 11 - RESEARCH LIMITATIONS ..................................................................... 50

PART B - SURVEY FINDINGS ..................................................................................... 51

CHAPTER 12 - Data Analysis & Inference ................................................................ 52

CHAPTER 13 - Hypothesis Testing .............................................................................. 82

CHAPTER 14 - Major Findings of Research .............................................................. 84

PART C - RECOMMENDATIONS............................................................................... 86

CHAPTER 15 - Recommendations ............................................................................ 86

CHAPTER 16 - Conclusion........................................................................................... 92

Annexure ...................................................................................................................... 93

SELECT BIBLIOGRAPHY ................................................................................................ 94 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 7

QUESTIONNAIRE ........................................................................................................... 96

EXPALANATION TO RESEARCH INSTRUMENT USED................................................ 100

Directions for further Research................................................................................ 101

List of Tables

Table 1 – frequency of visit ........................................................................................ 52

Table 2 – opinion on store display ............................................................................ 55

Table 3 – opinion of ambience of store .................................................................. 57

Table 4 – opinion of store design.............................................................................. 59

Table 5 – opinion of color & lighting ........................................................................ 61

Table 6 – opinion of props & decorative items ...................................................... 63

Table 7- opinion on fixtures & hardware ................................................................. 65

Table 8 – opinion of signs in the store ...................................................................... 67

Table 9 – opinion on convenience in reaching for items in rack ....................... 69

Table 10- opinion about soft drinks, biscuits for casual customer....................... 72

Table 11- opinion on whether window display should be changed weekly.... 74

Table 12- opinion on space between aisles........................................................... 76

Table 13 – opinion on seasonal & high margin merchandise locations............ 78

Table 14 – opinion on overall professionalism of the store................................... 80

Table 15 - Hypothesis Testing..................................................................................... 83 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 8

List of Charts

Figure 1 Retail Sales in India....................................................................................... 16

Figure 2- Projected Retail in India............................................................................. 17

Figure 3 - demographics............................................................................................ 19

Figure 4 - Frequency of visit to Big Bazaar .............................................................. 53

Figure 5 - opinion of store dispaly............................................................................. 55

Figure 6 - opinion of ambience of Big Bazaar........................................................ 57

Figure 7 - opinion of store display............................................................................. 59

Figure 8 - opinion of color & lighting........................................................................ 61

Figure 9 - opinion of props & decorative items...................................................... 63

Figure 10 - opinion of fixtures & hardware .............................................................. 65

Figure 11 - opinion of signs at Big Bazaar ................................................................ 68

Figure 12 - opinion on convenience in reaching for items in the rack .............. 70

Figure 13 – opinion on chocolates, biscuits located at exit doors for casual

customers ..................................................................................................................... 72

Figure 14 - opinion on window display .................................................................... 74

Figure 15 - opinion on space between the aisles.................................................. 76

Figure 16 - opinion on seasonal & high margin merchandise............................. 78

Figure 17 - opinion on overall professionalism of the store .................................. 81 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 9

EXECUTIVE SUMMARY

“Visual Merchandising is everything the customer sees, both exterior and

interior, that creates a positive image of the business and results in attention, interest,

desire and action on part of the customer”

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 project deals with components of Visual Merchandising and its influence

on customer purchasing decision. The study is conducted at Big Bazaar, Bangalore.

The study is based on how the visual merchandising components such as Color and

Lighting, Props and Decorative items, Fixtures and Hardware, Store Design and

Display and overall ambience of the store plays a crucial role in influencing the

purchase decision making of the customer.

The methodology followed is questionnaire method with a total sample size of

100 respondents. The data is tabulated and graphically represented through, Piecharts, Bar graph. Based on the response obtained through questionnaire major

research findings are presented and suitable recommendations are made in order to

improve the customer shopping experience at Big Bazaar. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 10

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 Visual merchandising when used

effectively is no doubt a powerful tool to entice customers in making a purchase

decision.. Visual merchandising will lead to impulse purchase of the product.

CHAPTER 1‐ INTRODUCTION

RETAILING Visual Merchandising at Big Bazaar

MPBIM 2009

Page 11

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 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 12

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 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 13

CHAPTER 2 ‐ INDUSTRY PROFILE

INDIAN RETAIL SCENARIO Visual Merchandising at Big Bazaar

MPBIM 2009

Page 14

RETAIL INDUSTRY IN INDIA

The retail sector in India is witnessing a huge revamping exercise as

traditional markets make way for new formats such as departmental stores,

hypermarkets, supermarkets and specialty stores. Western-style malls have begun

appearing in metros and second-rung cities alike introducing the Indian consumer to a

shopping experience like never before. The sector is at an inflexion point where the

growth of organised retailing and growth in the consumption by the Indian population

is going to take a higher growth trajectory. The Indian population is witnessing a

significant change in its demographics. Organised retail is on all time high in India.

The growth is boosted by various factors such as availability of professional practices,

media proliferation, various brands which are gaining value thereby enhancing

industry growth, availability of various funding options, regulations like VAT

implementation to make processes simple, sea change in demographics of country and

international exposure.

The Indian retail market, which is the fifth largest retail destination globally,

was ranked second after Vietnam as the most attractive emerging market for Visual Merchandising at Big Bazaar

MPBIM 2009

Page 15

investment in the retail sector by AT Kearney's seventh annual Global Retail

Development Index (GRDI), in 2008. The share of retail trade in the country's gross

domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12

per cent, and is likely to reach 22 per cent by 2010.

In a joint study recently conducted by ASSOCHAM and KPMG, the following

findings were revealed:

• The total retail market size in India in 2008 was estimated at US$ 353 billion.

• The annual growth of the retail market in India is expected to be around 8 per

cent.

• The total retail market size in India is likely to touch US$ 416 billion by 2010.

• The present share of organised retail sector is estimated at 7 per cent.

• The estimated annual growth of organised retail sector is 40 per cent.

• The size of organised retail sector by 2010 is estimated to reach US$ 51

billion.

• The estimated share of organized retail in total retail by 2010 is 12 per cent.

• The investment into modern retailing formats over the coming 4-5 years is

expected to be around US$ 25-30 billion.

Retail Sales in India Visual Merchandising at Big Bazaar

MPBIM 2009

Figure 1 Retail Sales in India

Page 16

Projected Retail in India Visual Merchandising at Big Bazaar

MPBIM 2009

Figure 2- Projected Retail in India

Page 17Visual Merchandising at Big Bazaar

MPBIM 2009

Page 18

Advantage India

Against the backdrop of an accelerating modern retail revolution, India offers

to be an attractive destination for global corporations and leading retailers seeking

emerging markets overseas. India presents a significant market, with its young

population just beginning to embrace significant lifestyle changes.

Rapid Economic Growth

The fast and furious pace of growth of the Indian economy is the driving force

for Indian consumerism; with the Indian consumers confident about their earnings and

are spending a large portion of their high disposable incomes.

Projections by analysts suggest that India has the potential to be labelled the

fastest-growing economy and outpace the developed economies by 2050. Analysts

predict India to sustain an average GDP growth rate of 5 per cent till the mid of this

century, with India projected to outpace the other developed economy markets by

2050.

The average annual growth rate for 1994-2004 was pegged at 6.1 per cent,

second only to China. The more recent growth rates of over 9 per cent posted for

India, promise a continued robust growth story. Private consumption accounted for 62

per cent of India’s GDP in 2004-05, comparable to most of the leading economies

around the world.

The Young India

Against the backdrop of an ageing world, India possesses the advantage of

having a largely young population. 35 per cent of India’s population is under 14 years

of age and more than 60 per cent of the population is estimated to constitute the

working age group (15-60) till 2050. Two-thirds of Indian population is under 35,

with the median age of 23 years, as opposed to the world median age of 33. India is

home to 20 per cent of the global population under 25 years of age. Visual Merchandising at Big Bazaar

MPBIM 2009

This trend is projected to continue for the next decade, with the share set to

reach its maximum in 2010. The large proportion of the working-age population

translates to a lucrative consumer base vis-à-vis other economies of the world, placing

India on the radar as one of the most promising retail destinations of the world.

Figure 3 - demographics


MPBIM 2009

Page 20

Potential untapped market

India ranks first, ahead of Russia, in terms of emerging market potential and is

deemed a “Priority 1” market for international retail. Organised retail penetration is

on the rise and offers an attractive proposition for entry of new players as well as

scope for expansion for existing players.

India is home to a large base of consumers with annual incomes ranging from

US$ 1,000 – US$ 4,700, comprising of over 75 million households. A steadily rising

percentage of rich and super rich population and impressive disposable incomes offers

a spectrum of opportunities, spanning from rural retailing to luxury retailing. The

impressive retail space availability and growing trend of consumerism in the

emerging cities and small towns add to the market attractiveness.

Abundant availability of skilled Labour

India has a vast resource base of talent and skilled labour. Over 37,000,000

students were enrolled in about 150,000 pre-college institutes and over 11,700,000 in

14,000 higher education institutions in 2005-06. With English being the language for

business in India, the language skills of the Indian workforce score higher than that of

emerging economies. Retail Management is a sought after education stream amongst

students, with over 15 premier institutes offering specialised courses in Retail

Management.

The great Indian consumer market is still going strong. The ETIG analysis

carried out by the Economic Times revealed that most mass consumer goods and

service in India were not much affected by the global economic slowdown. Despite

the inflation experienced during the period, the second-quarter results of leading 70

consumer-related firms revealed that their aggregate revenues increased by 8.5 per

cent during the September 2008 quarter over the same period in 2007. Even though

this was a tad lower than the 9 per cent growth posted during the first quarter of 2008-Visual Merchandising at Big Bazaar

MPBIM 2009

Page 21

09, it was a lot higher than the 7 per cent registered during the previous three quarters

for these firms.

Despite the global economic slowdown, Indian retailers are still optimistic

about the India growth story. “The Indian economy is more stable than other

economies across the world and one must not confuse India with the rest of the

world”. With the 30-40 per cent drop in retail rentals, Indian retailers are a happy lot.

In fact, retailers are also foreseeing further drops in rentals in 2009 and they are

optimistic about their expansion plans for this year.

India has one of the largest number of retail outlets in the world. A report by

Images Retail estimates the number of operational malls to grow more than two-fold,

to cross 412, with 205 million square feet by 2010, and a further 715 malls to be

added by 2015, with major retail developments even in tier-II and tier-III cities in

India.

Even as the organised retail market is starting to take off, there is an associated

surge in branded discount outlets in India. Top realtors and local retail chains are

developing malls in regional boroughs, specifically to sell premium branded goods.

Government Initiatives

The government has taken various measures to promote and encourage

investment in the Indian retail industry.

The Government allows 100 per cent FDI in cash and carry through the

automatic route and 51 per cent in single brands. Besides, the franchise route is

available for big operators. To further attract global retailers, the economic survey

2007–08 has suggested a share for foreign equity in all retail trade and 100 per cent in

respect of luxury brands and other specialised retail chains. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 22

However, many industry experts feel that the Indian tariff structure has to be

streamlined as India levies one of the highest duties and taxes on imported luxury

goods. This fuels the growth of the grey market and duty-free purchases, even as the

stringent regulatory environment encumbers investment by foreign brands.

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

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.

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. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 23

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 favourable 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 2008. 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. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 24

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.

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 café

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 that 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.

Companies expect that the next cycle of change in Indian consumer markets

will be the arrival of foreign players in consumer retailing. The very fact that Visual Merchandising at Big Bazaar

MPBIM 2009

Page 25

politicians have left the issue open leads us to think the restrictions are going to be

reviewed. And if retailing is liberalized, say companies, growth will be boosted, but

so will competition. 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.

Retail Formats in India

Malls

The largest form of organized retailing today, Located mainly in metro cities,

in proximity to urban outskirts Ranges from 60,000 sq ft to 7,00,000 sq ft and above.

They lend an ideal shopping experience with an amalgamation of product, service and

entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, a

Pantaloon, Big Bazaar, Reliance, Specialty stores. Chains such as the Bangalore based

Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the

Times Group's music chain Planet M, are focusing on specific market segments and

have established themselves strongly in their sectors.

Discount Stores

As the name suggests, discount stores or factory outlets, offer discounts on the

MRP through selling in bulk reaching economies of scale or excess stock left over at

the season. The product category can range from a variety of perishable/ nonperishable goods.

Department Stores

Large stores ranging from 20000-50000 sq. ft, catering to a variety of

consumer needs. Further, classified into localized departments such as clothing, toys,

home, groceries, etc. Departmental Stores are expected to take over the apparel Visual Merchandising at Big Bazaar

MPBIM 2009

Page 26

business from exclusive brand showrooms. Among these, the biggest success is K

Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large

stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes

called Stop.

Hyper Marts/ Super Markets

Large self-service outlets, catering to varied shopper needs are termed as

Supermarkets. These are located in or near residential high streets. These stores today

contribute to 30% of all food & grocery organized retail sales.

Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft

to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft.

having a strong focus on food & grocery and personal sales.

Convenience Stores

These are relatively small stores 400-2,000 sq. feet located near residential

areas. They stock a limited range of high-turnover convenience products and are

usually open for extended periods during the day, seven days a week. Prices are

slightly higher due to the convenience premium.

MBO’S

Multi Brand outlets, also known as Category Killers, offer several brands

across a single product category. These usually do well in busy market places and

Metros. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 27

CHAPTER 3 ‐ VISUAL MERCHANDISINGVisual Merchandising at Big Bazaar

MPBIM 2009

Page 28

VISUAL MERCHANDISING

“Visual Merchandising is everything the customer sees, both exterior and

interior, that creates a positive image of the business and results in attention, interest,

desire and action on part of the customer”

A successful retailing business requires that a distinct and consistent image be

created in the customer’s mind that permeates all product and service offerings.

Visual Merchandising can help create that positive customer image that leads to

successful sales. It not only communicates the store’s image, but also reinforces the

stores advertising efforts and encourages impulse buying by the customer.

Visual merchandising is a major factor often over looked in the success or

failure of a retail store. It is second only to effective customer relations. A story can

be told that communicates to the prospective customer what the store is all about. It

includes the dramatic presentation of merchandise as well as other important subtle

features that create the store’s overall atmosphere. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 29

Eighty percent of our impressions are created by sight; that is why one picture

is worth a thousand words. Each customer has a mental image of a store and its

merchandise. A store should have an inviting appearance that makes the customer feel

comfortable and yet eager to buy.

Some businesses maintain a minimum staff to reduce costs, which means it is

even more important for the merchandise to sell itself. Greater effort must be spent on

merchandise displays that make it easier for the customer to find and purchase the

items they want or need.

The basic objective for visual merchandising is a desire to attract customers to

place of business in order to sell the merchandise. Visual merchandising is offered to

the customer through exterior and interior presentation. Each should be coordinated

with the other using the store’s overall theme.

Visual Merchandising Evolution

Every shopkeeper and merchant's primary objective is to sell merchandise.

When the giant nineteenth century dry goods establishments like Marshall Field &

Co. shifted their business from wholesale to retail the visual display of goods became

necessary to attract the retail customer. The store windows no longer simply allowed

natural light to shine in the building or act as storage space for stock; they became

important venues to attractively display the store's merchandise. Gradually, the design

aesthetic used in window displays moved indoors and became part of the overall

interior store design, eventually displacing the importance windows altogether in

suburban malls.

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. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 30

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 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 31

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. 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 stores multiple entrances.

• Free Form: also known as boutique; arranges fixtures and aisles

asymmetrically.

Visual merchandising creates a connection between the company’s 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, colour, shape, typeface, texture and/or style

to make it stand out. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 32

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, colours and textures.

These elements give a lasting first impression to the consumer. It is important that the

exterior look and feel 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 Visual Merchandising at Big Bazaar

MPBIM 2009

Page 33

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 customers.

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:

1. Idea-Oriented Presentation: a method of presenting merchandise based on a

specific idea or image of the store.

2. Style/Item Presentation: organizing stock by style or item Visual Merchandising at Big Bazaar

MPBIM 2009

Page 34

3. Colour Presentation: A major role in a display is that of the colour and

lighting. Aesthetic and innovative use of them can lure customers to visit more

aisles than they usually do and spend more time there.

4. Price- lining: is the technique when retailers offer a limited number of

predetermined price points within a classification.

5. Vertical Merchandising: merchandise is presented vertically suing walls and

high gondolas

6. Tonnage Merchandising: here large quantities of merchandise are displayed

together to enhance and reinforce a stores price image

7. Frontal Presentation: here the retailer exposes its much of the product as

possible to catch the customer’s eye

8. Fixtures: the primary purposes of fixtures are to efficiently hold and display

merchandise.

COLOUR

The psychological effect of colour continues to be important to retailers.

Colour probably more than any other factor except price, is the .stopper. that catches

the consumers attention. Intelligent use of colour 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 stores

interior and exterior design. Lighting is used to highlight merchandise, sculpt space

and capture a mood or feeling that enhances the stores image.

CEILINGS

Ceiling represents a potentially important element of interior design. Ceiling

heights colour and material used will influence the store look.

FLOORING Visual Merchandising at Big Bazaar

MPBIM 2009

Page 35

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 behaviour to a large extent.

VM supports Retail Strategy:

• VM physically carries out a store's promotional selling strategies by designing

and executing window and interior displays that supports ad goals

• Installing promotional signing for in-store selling

• Producing workable departmental layouts and interior décor

• Devising merchandise fixture layouts for day to day operations

• Placing and presenting merchandise on walls and fixtures

• Working as team members with the store's promotional staff

VM supports selling:

• Communicate the latest trends in fashion and colors

• Assists customers in making a buying decision

• Create an exciting environment within the store

• VM transforms a shopper into a buyer

• VM supports gift shopping

• VM stimulates customers' appetites for artfully presented merchandise in the

same way that the gourmet cook stimulates diners' appetites for the artfully

presented mealVisual Merchandising at Big Bazaar

MPBIM 2009

Page 36

VM supports retailing trends:

• A trend is a direction in which fashion seems to be moving. VM is the

invisible force that doing a lot of the pushing behind the trend. Trends put 'fun'

in fundamental merchandising. Some of the prominent trends include:

• Consumerism is the trend: Consumers like an opportunity to thoroughly

inspect the product before making a purchase

• The barriers to 'showcase selling' had to come down. Stores began to move in

the direction of self service

• Assortment which the consumers like is another trend

• V Merchandisers should become experts in anticipating and responding to

lifestyle trends. The crux is how to target the customers live their lives

• Stand along stores in shopping villages is a trend where customers are able to

park their vehicles in front of retail stores

• Non-store retailing will affect VM

• VM also supports international retailing

Visual Merchandising Do’s and Don’ts Visual Merchandising at Big Bazaar

MPBIM 2009

Page 37

Do’s

• 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

• Distance between the aisles should facilitate the easy for movement shoppers.

Don’ts

• Avoid too many floors.

• Racks shouldn’t be too high, especially in bookstores because customers

might not be able to reach the books.

• Lighting shouldn’t be poor and at the same time shouldn’t be very bright.

Shadows are essential for that added effect.

• The display shouldn’t be contrast to the section in which it is. It also shouldn’t

be unaesthetic. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 38

CHAPTER 4 ‐ COMPANY PROFILE

BIG BAZAAR Visual Merchandising at Big Bazaar

MPBIM 2009

Company Profile

Pantaloon Retail (India) Limited, is India’s leading retailer that operates

multiple retail formats in both the value and lifestyle segment of the Indian consumer

marker. Headquartered in Mumbai (Bombay), the company operates over 5 million

square feet of retail space, has over 450 stores across 40 cities in India and employs

over 18,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets,

Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain,

blends the look, touch and feel of Indian bazaars with aspects of modern retail like

choice, convenience and quality and Central, a chain of seamless destination malls.

Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,

Fashion Station, aLL, Top10, Star and Sitara. The company also operates an online

portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home

Town, a large-format home solutions store, Collection i, selling home furniture

products and E-Zone focused on catering to the consumer electronics segment.

Page 39

Pantaloon Retail was recently awarded the International Retailer of the Year

2007 by the US-based National Retail Federation (NRF) and the Emerging Market

Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 40

Pantaloon Retail is the flagship company of Future Group, a business group catering

to the entire Indian consumption space.

Big bazaar is owned and operated by Future Bazaar India Ltd., a subsidiary of

Pantaloon Retail (India) Limited. As part of India’s largest retail chain, it enjoys the

benefits of buying in bulk for the entire group and keeps the margins low, so that

customers get a great range of products at great prices. Pantaloon Retail (India)

Limited led by Kishore Biyani is the country's largest retailer. It owns and operates

multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar, Central, EZone, Fashion Station, Depot and many others.

Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one

of India’s leading business houses with multiple businesses spanning across the

consumption space. While retail forms the core business activity of Future Group,

group subsidiaries are present in consumer finance, capital, insurance, leisure and

entertainment, brand development, retail real estate development, retail media and

logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12

million square feet of retail space in 71 cities and towns and 65 rural locations across

India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000

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

customers.

In the lifestyle segment, the group operates Pantaloons, a fashion retail chain

and Central, a chain of seamless malls. In the value segment, its marquee brand, Big

Bazaar is a hypermarket format that combines the look, touch and feel of Indian

bazaars with the choice and convenience of modern retail. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 41

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic

expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in

Kolkata, Hyderabad and Bangalore.

The group’s specialty retail formats include, books and music chain, Depot,

sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement

chain, Home Town and rural retail chain, Aadhar, among others. It also operates

popular shopping portal, futurebazaar.com.

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every

Indian Consumer in the most profitable manner.

Group Mission

• We share the vision and belief that our customers and stakeholders shall be

served only by creating and executing future scenarios in the consumption

space leading to economic development.

• We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments – for classes and

for masses.

• We shall infuse Indian brands with confidence and renewed ambition.

• We shall be efficient, cost- conscious and committed to quality in whatever we

do.

• We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 42

PART A‐ THEORITICAL SETTINGVisual Merchandising at Big Bazaar

MPBIM 2009

Page 43

CHAPTER 5 ‐ Significance of Research

Visual merchandising is the art and science of displaying and presenting

product on the sales floor and in the windows with the purpose to increase store traffic

and sales volume.

Along with your store design, it is a key component of your store’s unique

identity and your best form of advertising. Through them you are able to

communicate to your target customer your brand’s identity, what is unique and

special about your offering and what makes you better than other stores.

When deciding how to present your product in your store, always remember

that visual merchandising is an extension of your store’s customer service. That is

why when planning for your store’s look and feel and product presentation, you must

make sure that they:

• Enhance the feeling of service and make your customer feel good. Above all

you want your customer to feel good and be happy. If they are happy you

know that they are going to buy. You also want to build loyalty and repeat

purchases by creating a good shopping experience.

• Create a memorable impression: make it a feast for the senses. Shopping isn't

just about picking up a product. It’s about temptation, attraction, and creating

a memorable impression that will encourage the customer to come back over

and over again. Customers are giving you what little time they have. You

should reward them with benefits beyond the products you carry. A

memorable impression can be created in many different ways. It could be

about the sensory experience of entering a store and being surrounded by light,

colour, texture, and sound.

While there is substantial amount of research on each of the components of visual

merchandising, a holistic approach towards visual merchandising involving the Visual Merchandising at Big Bazaar

MPBIM 2009

Page 44

consumer’s perceptions has not attracted much of research effort. So this has

prompted me to take up the research.

CHAPTER 6 ‐ Literature Review

“Visual Merchandising is everything the customer sees, both exterior and interior, that

creates a positive image of the business and results in attention, interest, desire and

action on part of the customer”

Source: Visual Merchandising for retailers by Holly Bastow Shoop, North Dakota

State University

Dale Zetocha, North Dakota State University

Gregory Passewitz, the Ohio State University

Merchandising and display are an important part of the marketing plan, and

should have a reasonable budget allocated - even for a retailer operating on a

shoestring.

In today's competitive retail environment a retailer cannot afford to consider

merchandising as a 'frill'. Everyone is competing for the customers' dollar. There are

more choices out there for consumers than ever before.

Posters covering the door and windows, hand lettered signs, lack of lighting

and untidy displays send the message that your business isn't serious. If your store

looks like a bargain basement, customers will expect bargain basement prices and

may draw the conclusion that your product is poor quality. This judgment may have

little to do with the product itself, but be the result of poor presentation.

Melanie McIntosh, a retail consultant and founder of Inspire Retail

Solutions, a British Columbia firm that helps retailers create strong, professional

business images that attract customers. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 45

Merchandising is more than simply the arrangement of products on the shelf.

It is an integral component of the business image. It should be considered when you

design your logo, business cards, brochures, letterhead, packaging, and product mix.

When you examine your merchandising, you examine what the customers'

experience, from their first sight of your store front, until they leave store - hopefully

with a purchase in hand. Merchandising is also about understanding the way

customers shop. By using this knowledge, you can position your merchandise to

increase sales.

You need to create an environment that attracts the customer, is comfortable to shop,

and encourages the customer to return.

• Are the store front and windows attractive & inviting?

• Is all signage clear, professional and legible?

• Is the store interior welcoming and comfortable?

• Is merchandise presentation appealing?

• Are seasonal and high-margin merchandise placed in high profile locations?

• Overall, is the store appearance professional? Visual Merchandising at Big Bazaar

MPBIM 2009

Page 46

Chapter 7 – Research Gap

Visual Merchandising is an integral part of retail today. There is a growing

recognition of need for 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.

While there is substantial amount of research on each of the components of

visual merchandising, a holistic approach towards visual merchandising involving the

consumer’s perceptions has not attracted much of research effort. There is a vital gap

in the current research and this has prompted to take up research investigation in this

field. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 47

CHAPTER 8‐ Problem Statement and Research

Objective

VM carries with its 'touch points' from the customers' point of view. These

touch points comprise the customer environment and it is through interacting with that

VM that customer preference is formed. The VM is an excellent analytical tool for

discovering the nature of these touch points, their essentiality for preference formation

and the combination and sequence of such touch points that result in a customer

environment that maximizes corporate ability to construct sustained customer

preference. What are these touch points? How does VM unzip these touch points?

What should be the appropriate configurations to the VM? This problem statement

has been crystallized into the following research objectives

Research Objective

• To examine the impact of VM in consumer buying decisions

• To make recommendations for the alignment of VM in the process of

customer preference Visual Merchandising at Big Bazaar

MPBIM 2009

Page 48

CHAPTER 9 ‐ Hypothesis

We seek to achieve the above objectives through testing the following

hypothesis:

H0: All factors are equally important in Visual Merchandising

HA: All factors are not equally important in Visual Merchandising Visual Merchandising at Big Bazaar

MPBIM 2009

Page 49

CHAPTER 10 ‐ Research Methodology

TYPE OF RESEARCH

The study can well be described as descriptive. As a descriptive research, the

study will deal with the variables affecting the customer preference process via VM. It

finds facts.

AREA OF ENQUIRY

It is proposed to conduct research in Bangalore City.

Secondary Data

The secondary data of the study will be based on the available literature in

Journals in the retailing sector.

Primary Data

Primary Data was collected using the structured questionnaire. A sample size

of 100 respondents was chosen through random sampling technique.

Construction of questionnaire: Visual Merchandising at Big Bazaar

MPBIM 2009

Page 50

The questionnaire was used as the respondents had to give a specific answer to

the questions. This also made it easier for the respondents to give their opinion

without too much time.

Personal interaction with the consumers at the store and observation technique

was also used.

Sample Size

Total 100 respondents were selected as the sample size. Random Sampling

CHAPTER 11 ‐ RESEARCH LIMITATIONS

Our research investigation is beset with the following constraints:

• Time and resource constraints.

• At the micro level, the scope of our research investigation is restricted to only

one retail unit in Bangalore City.

• Bias/prejudice creeping into the responses of the respondents. However we

will exercise due care to obviate it through meticulous cross checking of data;

(Delphi Method).

• Limited sample size, but, in our opinion, it is adequate enough to make valid

projections. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 51

PART B ‐ SURVEY FINDINGSVisual Merchandising at Big Bazaar

MPBIM 2009

Page 52

CHAPTER 12 ‐ Data Analysis & Inference

1) How often do you visit Big Bazaar?

Respondents

Once in 3 days 0

Once in a week 10

Monthly 23

No time frame 67

Table 1 – frequency of visitVisual Merchandising at Big Bazaar

MPBIM 2009

0

10

23

67

0

10

20

30

40

50

60

70

80

Once in 3 days Once in a week Monthly No Time Frame

frequency of visit

Respondents

Figure 4 - Frequency of visit to Big Bazaar

INFERENCE:

From the above observations it is found that:

¾ 67% respondents visit to Big Bazaar has no definite Time Frame.

¾ 23% of respondents visit Big Bazaar once in a Month.

¾ 10% visited the store Weekly.


MPBIM 2009

Page 54

2) What is your opinion of the Store Display?

Respondents

Very Good 15

Good 53

Satisfactory 22

Poor 10

Very Poor 0 Visual Merchandising at Big Bazaar

MPBIM 2009

Table 2 – opinion on store display

0

10

20

30

40

50

60

Very Good Good Satisfactory Poor Very Poor

St or e Di spl ay

Respondents

Figure 5 - opinion of store dispaly

INFERENCE


¾ 53% of respondents felt that overall Store Display at Big Bazaar was Good.

¾ 12% of the respondents felt that overall Store Display was Excellent.

¾ 22% felt that Store Display was Satisfactory.

¾ 10% felt that Store Display was Poor.


MPBIM 2009

Page 56

3) How important is the Ambience of the store while shopping?

Respondents

Very Important 44

Important 56

Not Important 0 Visual Merchandising at Big Bazaar

MPBIM 2009

Not at all Important 0

Table 3 – opinion of ambience of store

44

56

0 0

0

10

20

30

40

50

60

Very Important Important Not Important Not at all

Important

Ambience

Response

Figure 6 - opinion of ambience of Big Bazaar

INFERENCE


¾ 44% of the respondents feel that Ambience of the Store is Very Important.

¾ 56% of the respondents feel that Ambience of the Store is Important.

Page 57

¾ While none of the respondents feel that Ambience of the store is not

important. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 58

4) How do you rate the store on basis of Store Design & Display?

Respondents

Excellent 14 Visual Merchandising at Big Bazaar

MPBIM 2009

Good 63

Average 23

Poor 0

Table 4 – opinion of store design

14

63

23

0

0

10

20

30

40

50

60

70

Excellent Good Average Poor

St or e Design & Display

Response

Figure 7 - opinion of store display

INFERENCE


¾ 14% of the respondents feel that Store Design and Display was Excellent.

Page 59

¾ 63% of the respondents feel that Store Design and Display was Good. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 60

¾ 23% of the respondents feel that Store Design and Display was Average.

¾ While none of the respondents felt that overall Store Design and Display was

Poor.

5) How do you rate the store on basis of Colors & Lighting? Visual Merchandising at Big Bazaar

MPBIM 2009

Respondents

Excellent 8

Good 66

Average 22

Poor 4

Table 5 – opinion of color & lighting

8

66

22

4

0

10

20

30

40

50

60

70


Col or & Li ght i ng

Response

Figure 8 - opinion of color & lighting

INFERENCE

Page 61

From the above observations it is found that: Visual Merchandising at Big Bazaar

MPBIM 2009

Page 62

¾ 8% of the respondents feel that Color and Lighting at Big Bazaar was

Excellent.

¾ 66% of the respondents feel that Color and Lighting at Big Bazaar was Good.

¾ 22% of the respondents feel that Color and Lighting at Big Bazaar was

Average.

¾ 4% of the respondents feel that Color and Lighting at Big Bazaar was Poor.

6) How do you rate the store on basis of Props & Decorative items? Visual Merchandising at Big Bazaar

MPBIM 2009

Respondents

Excellent 8

Good 71

Average 18

Poor 2

Table 6 – opinion of props & decorative items

8

71

18

2

0

10

20

30

40

50

60

70

80


Props & Decorat ive it ems

Response

Figure 9 - opinion of props & decorative items


MPBIM 2009

Page 64

INFERENCE


¾ 8% of the respondents felt that Props & Decorative items at Big Bazaar were

Excellent.

¾ 71% the respondents felt that Props & Decorative items at Big Bazaar was

Good.

¾ 18% the respondents felt that Props & Decorative items at Big Bazaar was

Average.

¾ 2% the respondents felt that Props & Decorative items at Big Bazaar was Poor Visual Merchandising at Big Bazaar

MPBIM 2009

7) How do you rate the store on the basis of Fixtures & Hardware?

Respondents

Excellent 4

Good 36

Average 58

Poor 2

Table 7- opinion on fixtures & hardware

4

36

58

2

0

10

20

30

40

50

60

70


Fixt ur es & Har dwar e

Response

Page 65

Figure 10 - opinion of fixtures & hardwareVisual Merchandising at Big Bazaar

MPBIM 2009

Page 66

INFERENCE


¾ 4% felt that Fixtures and Hardware at Big Bazaar was Excellent

¾ 36% felt that Fixtures and Hardware at Big Bazaar was Good

¾ 58% felt that Fixtures and Hardware at Big Bazaar was Average

¾ 2% felt that Fixtures and Hardware at Big Bazaar was Poor Visual Merchandising at Big Bazaar

MPBIM 2009

Page 67

8) How Informative was the signs in the store?

Respondents

Very Informative 12

Informative 65

Not Informative 22

Not at all Informative 1

Table 8 – opinion of signs in the storeVisual Merchandising at Big Bazaar

MPBIM 2009

12

65

22

1

0

10

20

30

40

50

60

70

Ver y Infor mative Infor mative Not Infor mative Not at all

Informative

Si gns i n t he st or e

Response

Figure 11 - opinion of signs at Big Bazaar

INFERENCE


12% felt that Signs at Big Bazaar was Very Informative

65% felt that Signs at Big Bazaar was Informative

22% felt that Signs at Big Bazaar was Not Informative

1% felt that Signs at Big Bazaar was Not at all Informative


MPBIM 2009

Page 69

9) Did you face problem in reaching for items in the rack?

Respondents

Yes 32

No 68

Table 9 – opinion on convenience in reaching for items in rack


MPBIM 2009

32

68

items in the rack

Ye s

No

Figure 12 - opinion on convenience in reaching for items in the rack

INFERENCE


32 % felt that they had problem in reaching for the items in the rack

68% felt that they had no problem in reaching for the items in the rack


MPBIM 2009

Page 71

10) Do you agree that items such as Chocolates, Biscuits, and Soft Drinks should

be close to entry and exit doors for casual customers?

Respondents

Agree 68 Visual Merchandising at Big Bazaar

MPBIM 2009

Somewhat Agree 28

Disagree 4

Table 10- opinion about soft drinks, biscuits for casual customer

68

28

4

0

10

20

30

40

50

60

70

80

Agr ee Somewhat Agr ee Disagr ee

Response

Figure 13

INFERENCE


Page 72

¾ 68% Agreed that items such as Chocolates, Biscuits & Soft Drinks should be

placed near entry and exit doors for casual customers Visual Merchandising at Big Bazaar

MPBIM 2009

Page 73

¾ 28% Somewhat agreed that items such as Chocolates, Biscuits & Soft Drinks

should be placed near entry and exit doors for casual customers

¾ 4% Disagreed that items such as Chocolates, Biscuits & Soft Drinks should

be placed near entry and exit doors for casual customers

11) Do you agree that Window Display should be changed weekly or for every

Fortnight to ensure fresh display? Visual Merchandising at Big Bazaar

MPBIM 2009

Respondents

Agree 67

Somewhat Agree 33

Disagree 0

Table 11- opinion on whether window display should be changed weekly

67

33

0

0

10

20

30

40

50

60

70

80

Agree Somewhat Agree Disagree

Window Display

Response

Figure 14 - opinion on window display

INFERENCE

Page 74

From the above observations it is found that: Visual Merchandising at Big Bazaar

MPBIM 2009

Page 75

¾ 67% Agreed that Window Display should be changed every fortnight to

ensure fresh display

¾ 33% Somewhat Agreed that Window Display should be changed every

fortnight to ensure fresh display

¾ While None of them Disagreed that Window Display should be changed

every fortnight to ensure fresh display Visual Merchandising at Big Bazaar

MPBIM 2009

12) Did the distance between the Aisles facilitate for easy movement of the

Shoppers?

Respondents

Yes 62

No 38

Table 12- opinion on space between aisles

62

38

Aisles

Yes

No

Figure 15 - opinion on space between the aisles


MPBIM 2009

Page 77

INFERENCE


62% felt that distance between the Aisles facilitated for easy movement for the

shoppers

38% felt that distance between the Aisles did not facilitate for easy movement for

the shoppers


MPBIM 2009

13) Are Seasonal and High Margin Merchandise placed in high profile locations?

Respondents

Yes 58

No 42

Table 13 – opinion on seasonal & high margin merchandise locations

58

42

Seasonal & High Margin Merchandise

Yes

No

Page 78

Figure 16 - opinion on seasonal & high margin merchandise Visual Merchandising at Big Bazaar

MPBIM 2009

Page 79

INFERENCE


¾ 58% respondents felt Seasonal & High Margin Merchandise were placed in

high profile location

¾ 42% respondents felt Seasonal & High Margin Merchandise were not placed

in high profile location Visual Merchandising at Big Bazaar

MPBIM 2009

Page 80

14) Overall, is the Store Appearance Professional?

Respondents

Yes 44

No 24

Somewhat 32

Table 14 – opinion on overall professionalism of the storeVisual Merchandising at Big Bazaar

MPBIM 2009

44

24

32

0

5

10

15

20

25

30

35

40

45

50

Ye s No So m e w h at

Response

Figure 17 - opinion on overall professionalism of the store

INFERENCE


44% of the respondents felt that the overall Store Appearance was Professional

24% of the respondents felt that the overall Store Appearance was Not Professional

32% of the respondents felt that the overall Store Appearance was Somewhat

Professional and needed some improvements


MPBIM 2009

Page 82

CHAPTER 13 ‐ Hypothesis Test i ng

Hypothesis Conducted on Question no 2, 3, 4, 5, 6, and 7.

H0: ALL THE FACTORS ARE EQUALLY IMPORTANT IN VISUAL

MERCHANDISING

HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN VISUAL

MERCHANDISING Visual Merchandising at Big Bazaar

MPBIM 2009

FACTORS

(ranking)

E

*4

G

*3

A

*2

P

*1

OBSERVED EXPECTED (O-E)2

E

Ambience 44 56 0 0 344 287.6 11.06

Store Design &

Display

14 63 23 0 291 287.6 0.04

Color & Lighting 8 66 22 4 278 287.6 0.32

Props &

Decorative items

8 71 18 2 283 287.6 0.07

Fixtures &

Hardware

4 36 58 2 242 287.6 7.23

O=1438

Ψ2

cal=18.72

Table 15 - Hypothesis Testing

E: Excellent G: Good

A: Average P: Poor

Expected (E):

E= OBSERVED / NO OF FACTORS

E= 1438 / 5

E= 287.6

Ψ

2

calculated = 18.72


MPBIM 2009

Page 84

Level of Significance: 5%

Degrees of Freedom: (5-1) = 4

Ψ2 tabulated = 9.488

Therefore Ψ2

tabulated < Ψ2

calculated

HO IS REJECTED

There fore HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN

VISUAL MERCHANDISING

CHAPTER 14 ‐ Major Findings of Research

From the research conducted it is evident that overall ambience of the store is

a very important component of Visual Merchandising and clearly influences

consumers purchasing decisions. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 85

Proper planning must be done while designing the store since, a customer is

highly influenced by the look and feel of the store. 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.

1) Most of the people who visited Big Bazaar had no exact time frame.

2) Nearly half of the respondents believed that the overall store display at Big

Bazaar was good, and over 20% respondents feel that there was further

need for improvement.

3) Almost all the respondents felt that the overall ambience of the store is

important while shopping.

4) Majority of the respondents believe that signs in the store were

informative. While few said otherwise.

5) Over 60% of the respondents felt that items such as chocolates, biscuits,

soft drinks should be close to entry and exit doors for casual customers.

6) 67% of the respondents feel that window display should be changed

weekly or every fortnight.

7) Nearly 44% of the respondents feel that Big Bazaar store is professional

8) Many respondents believed that Seasonal and High margin merchandise

were placed in high profile location.

9) Some respondents felt that during peak hours the shelf were not

replenished faster, resulting in longer waiting periods.

10) Promotions, props and Decorative items are huge attractions with regard to

visual merchandising. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 86

PART C ‐ RECOMMENDATIONS

CHAPTER 15 ‐ Recommendations

Based on the research and interaction with the customers, we make following specific

recommendations: Visual Merchandising at Big Bazaar

MPBIM 2009

Page 87

1. Faster replenishment of shelf during peak hours must be taken care of.

2. Customers who visit Big Bazaar weekly once or twice must be treated as

loyal customers and special attention must be given for them. Since most

of the respondents who visit the store has no time frame.

3. Lightings near the grocery department must be bright to enable the

customers to carefully select the groceries.

4. For casual customer’s items such as chocolates, biscuits, bubble gum,

chips must be kept near the billing area in order to stimulate last minute

purchasing or casual purchasing.

5. Flooring can be made innovative. Since the flooring currently at store is

plain and is of metallic cement colored. Floor Graphics can be used also as

signs to help locate certain segments of product.

6. Parking for especially 2 wheelers should be arranged. Since currently few

parking spaces are available and no other arrangements are made.

7. Better training to service staff can result in overall increase in

professionalism.

8. Window display needs to be changed once every fortnight in order to give

a new look.

9. Fixtures at the store were rated as average. So decorative, creative fixtures

should be used to create a good store image.

10. Retail Design Strategies: The success of the retail architect's design hinges on

the work of the visual merchandisers. They are responsible for capturing the

architect's vision of the store and implementing it through their choice of

fashion, color, props, lighting and focal points. The creativity and hard work

of the visual merchandisers are the linchpins of effective store design. We give

below the design principles which must be adopted by Big Bazaar:

DESIGN PRINCIPLES

� Unity

� Harmony

� Repetition Visual Merchandising at Big Bazaar

MPBIM 2009

Page 88

� Balance

� Rhythm (movement)

� Contrast

� Emphasis

� Surprise

DESIGN ELEMENTS:

� Color

� Texture

� Proportion

� Direction

� Size

� Shape

� Line

� Sequence

� Tension

COLOR SCHEMES:

1. Complementary schemes consists of two colors that are directly

opposite to each other on the color wheel--example yellow and violet

2. Double-complementary consists of four colors--two colors plus their

complements. Example: yellow with violet plus greet with red

3. Split-complementary consists of three colors--one central color plus

the two colors on either side of its component: Example: yellow with

red-violet and blue-violet

4. Triadic consists of three colors that are equidistant from one another on

the color wheel (They form a triangle when we look at the wheel)

Example: orange, green and violet

5. Analogous (color families) consists of two or more colors that are next

to each other 9adjacent) on the color wheel. Example: yellow with

yellow-green

6. Monochromatic consists of a single color in different values and

intensities (more white or grey blended into the basic color). Example:

blue with medium blue and light blue

11. MAGIC OF THE WINDOW DISPLAY: Window display should synchronize

with the visual merchandising. We give below the dynamics of window display which

must be considered by Big Bazaar.

Windows entice people into our world and into our mindsets. It leads shopper from

viewing to purchasing. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 89

Window Display Functions:

� Fashion windows are about creating excitement and desire in shoppers who

are always open to something new and different

� Fashion apparel windows tout the store's fashion leadership position by

presenting the store's newest trend merchandise

� Home fashion windows may feature the latest dining trend. They may also

feature candles, dinnerware, table linens that relate to the dinner theme,

encouraging shoppers to create all of the ambience may might find in a

restaurants in their own homes

� Promotional windows feature products that are part of an advertising strategy

promoting an entire line of products, a single item or a special store-wide

event. Holidays like Mother's Day and Valentine's Day provide opportunities

to stage exciting window functions

� Sale windows announce the store's major sale events and may not feature any

merchandise at all--implying that the store is stripped down and ready to sell

out to the bare walls at low, low, low prices.

� Drive-by-windows are exterior windows viewed by people driving on city

streets or passing through shopping mall parking lots

� Live or Demo windows capture shoppers' attention. Retail theatre with a live

actor draws curious crowds into the store

� Interactive or through-glass windows. Electronic components invite passerby

to interact with window displays by touching sensitive panels on the exterior

glass which are connected to oversized screens set up in the window's interior.

This is a breakthrough innovation for retailing

Window display theory:

Window theatrics may be retail fantasies, romances, dramas, comedies, or

adventure stores but they are always designed to engage imagination and make

shoppers think about what it would be like to own the merchandise on display.

Fantasy-to-Reality Theory guides shoppers from their first look at

merchandise in windows and editorial displays to the selling floor and into the

fitting room in three steps:

� The window's larger-than-life version of fashion-merchandise that is

dropped or posed to amaze, amuse and enthuse--draws window shoppers

into the store. This is fantasy stage

� The retailer presents the window merchandise inside the store and less

theatrically using editorial space in prime interior locations. These are

stepped-down presentations. They echo the theme of the window display Visual Merchandising at Big Bazaar

MPBIM 2009

Page 90

but are now presented in the context of the store. This is reality stage.

Merchandise looks more 'true to life' than it does in the window. Shoppers

have the chance to personally impact the merchandise

� The window merchandise is ready for purchase. Here is final reality where

shoppers can finally handle the items they have admired or to try them on

Window Display Themes (Retail Advertisement Message):

Thematic inspiration for window displays is always the merchandise itself.

Window's motif (dominant theme idea) is a good supporting device for visual

merchandising. Some times themes are set by the corporate advertisers

The theme inspiration can come from:

� Products' end use, fabrication, styles and color

� Current directions in fashion design

� Popular color parallels--market-driven color choices

� Recent, current or upcoming events--global, national or local happenings that

involve or influence fashion

� Influential cultural directions--fads, merchandising and lifestyle trends, new

books and magazines, recent films, plays, art, architecture, entertainment etc.

� Historical perspectives---well-known symbols, recurring on retrospective

fashion designers, significant anniversaries of events

� Retail image decisions---unique or 'signature' architectural, decorative or

stylistic elements exclusively characteristic of the retailer's image or the store's

design

� Holidays: Mothers Day, Fathers Day, Valentine Day

� Nostalgia--(1970.1980.1990)

� New developments in props or decorative items available from the display

industry---innovative items like metal shopping bags, crystal clear up-scaled

ice cubes, unusual looking mannequins and alternatives.

Mechanics of window Display Magic:

The window display is the first message we are sending to regular and potential

customers. Therefore we must carefully plan he merchandise and how it is presented. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 91

It is not unlike how we get dressed each day. We carefully coordinate the clothes you

want to wear and the manner in which our style your hair or apply make-up. The

storefront window displays should be given the same level of importance. Here some

useful guidelines:

� Select the merchandise category--example, kids cloths, T-shirts etc

� Select the color story: If T Shirts come in both bright and pastels, choose first

one color group for the window

� Select the theme

� Select the props

� Select mannequins

� Select accessories

� Sketch proposed window presentation.

To sum up, it is our strong belief and conviction that visual merchandising, if

appropriately implemented, will go a long way to entice the customers into the store.

The following prerequisites of an effective visual merchandising are quite

helpful:

� 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.

� Use symbols as directions: Distance between the aisles should facilitate the

easy for movement shoppers.

� 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.

� Avoid too many floors, as they mess up the items

� Racks should not be too high especially in book stores because customers

might not be able to reach the books

� Lighting should not be poor and at the same time should not be very bright.

Shadows are essential for that added effect Visual Merchandising at Big Bazaar

MPBIM 2009

Page 92

� The display should not be contrast to the section in which it is. Also it should

not be unaesthetic.

The whole point of visual merchandising is to help the retailers to

communicate brand message so that customers can make better-informed

choices. Consumers increasingly shop by what attracts their eye whether it is

perfume, or sand witch or chocolates

CHAPTER 16 ‐ ConclusionVisual Merchandising at Big Bazaar

MPBIM 2009

Page 93

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.

With new competitors entering into India Retail Sector such as Bharti WalMart, Tesco and many more, it becomes even more necessary for Indian domestic

retailers to focus and give importance to visual merchandising techniques in order to

create a good customer shopping experience and use it as a customer retention tool.

Through effective use of visual merchandising a store can improve its image

and also build a brand that helps in achieving long term goals of the retailer.

AnnexureVisual Merchandising at Big Bazaar

MPBIM 2009

Page 94

SELECT BIBLIOGRAPHY

BOOKS:

� Retail Management by Ron Hasty & James Reardon, Pearson Publication

� Retailing in India, ICFAI Publications,

� Marketing Management by Philip Kotler (Chapter on Retailing)

� Holly Bastow Shoop, Dale Zetocha – North Dakota University, Gregory

Passewtiz, Visual Merchandising for Retailers, d.o.p – May 2001

JOURNALS & MAGZINES

� Business Today

� Marketing Mastermind

� Journal of Marketing

� Back numbers of A & M

� International Journal of Management Sciences

WEBSITES: Visual Merchandising at Big Bazaar

MPBIM 2009

Page 95

� www.pantaloon.com

� www.acumen.com

� www.ibef.com

� www.mbaindia.com

� www.slideshare.com

� www.wikipedia.org

� www.mint.com

� www.timesofindia.comVisual Merchandising at Big Bazaar

MPBIM 2009

QUESTIONNAIRE

VISUAL MERCHANDISING IN THE RETAIL SECTOR

(A Case Study of Best Practices and Effective Strategies of Visual Merchandising at

Big Bazaar, Bangalore)

Dear Respondent,

I am a student of M.P.BIRLA INSTITUTE OF MANAGEMENT,

Bangalore. I am doing a survey for my research project entitled "VISUAL

MERCHANDISING IN THE RETAIL SECTOR (A Case Study of Best Practices

and Effective Strategies of Visual Merchandising at Big Bazaar, Bangalore). In

this connection, I need some information from you. Below is the questionnaire

crafted for this purpose. Kindly give responses to the questions contained in the

questionnaire. I humbly assure you that the information so provided will be kept

confidential and shall be used for academic purpose only

Dilipa S Naik

Name _______________________ Age ___________

Gender _______________

Income per annum:

<50,000 50,000-1L 1L-3L >3L Not Applicable


MPBIM 2009

Page 97

1) How often do you visit Big Bazaar?

a. Once in 3 days ( )

b. Once in a week ( )

c. Monthly ( )

d. No Time Frame ( )

2) What is your opinion of the Store Display?

a. Very Good ( )

b. Good ( )

c. Satisfactory ( )

d. Poor ( )

e. Very Poor ( )

3) How important is the ambience of the store while shopping?

a. Very Important ( )

b. Important ( )

c. Not Important ( )

d. Not at all Important ( )

4) How do you rate the store on basis of Store Design & Display?

a. Excellent ( )

b. Good ( )

c. Average ( ) Visual Merchandising at Big Bazaar

MPBIM 2009

Page 98

d. Poor ( )

5) How do you rate the store on basis of Colours & Lighting?

a. Excellent ( )

b. Good ( )

c. Average ( )

d. Poor ( )

6) How do you rate the store on basis of Props & Decorative items?

a. Excellent ( )

b. Good ( )

c. Average ( )

d. Poor ( )

7) How do you rate the store on basis of Fixtures & Hardware?

a. Excellent ( )

b. Good ( )

c. Average ( )

d. Poor ( )

8) How Informative was the signs in the store?

a. Very Informative ( )

b. Informative ( )

c. Not Informative ( )

d. Not at all Informative ( ) Visual Merchandising at Big Bazaar

MPBIM 2009

Page 99

9) Did you face problem in reaching for items in the rack?

a. Yes ( ) b. No ( )

10) Do you agree that items such as chocolates, biscuits, soft drinks should be

close to entry and exit doors for casual customers?

a. Agree ( )

b. Somewhat Agree ( )

c. Disagree ( )

11) Do you agree that window display should be changed weekly or for every

fortnight to ensure fresh display?

a. Agree ( )

b. Somewhat Agree ( )

c. Disagree ( )

12) Did the distance between the aisles facilitate for easy movement of the

shoppers?

a. Yes ( ) b. No ( )

13) Are Seasonal and high margin merchandise placed in high profile locations?

a. Yes ( ) b. No ( )

14) Overall, is the store appearance professional?

a. Yes ( ) b. No ( ) c. Somewhat ( )

15) Please give recommendation to improve Visual Merchandising at Big Bazaar

more appealing. Visual Merchandising at Big Bazaar

MPBIM 2009

Page 100

EXPALANATION TO RESEARCH INSTRUMENT

USED

The research instrument used for this survey is questionnaire. The reasons why this

instrument is chosen are:-

• It is free from all bias.

• It covers a wide area.

• It helps in getting original data.

• Not expensive.

• It is easy to tabulate and understand

• It can be collected through Email Visual Merchandising at Big Bazaar

MPBIM 2009

Page 101

Directions for further Research

The following areas of research constitute 'green pastures' for further research:

� Category Manage in Retailing Units: A Diagnostic Study

� Creating a Shopping Experience in Retailing Units: A Phenomenographic

INFERENCE

� Business Intelligence and Retailing: An Analytical Study

� Private Labels in Retailing Units: A Diagnostic Study

� Dynamics of Supply Chain Management in Retail Industry: Diagnosis &

Prognosis

� Use of RFID Technology in Retailing Units: An Analytical Study

� Category Killers in Retailing: A Diagnostic Study

� Super Franchising in Retailing: An Analytical Study

� Non-Store Retailing: Contemporary Issues

� Retail Store Graphics: An Explorative Study

� Micro-analysis of Visual Merchandising Variables

� Magic of Window Display and its interface with Visual Merchandising Visual Merchandising at Big Bazaar

MPBIM 2009

Page 102

� Customers' Perceptions/Insights of Visual Merchandising

� Impact of Visual Merchandising on transforming the shoppers into buyers

� Impact of Visual Merchandising on transforming the online buyers into offline Buyers

Date post:	27-Nov-2014
Category:	Documents
Upload:	soumya-ojha
View:	108 times
Download:	18 times

Visual Merchandising at Big Bazaar

Documents