A Report of
A Study on
“IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG
BAZAAR, HUBLI”
for
FUTURE VALUE RETAIL LTD
Submitted to the
Department of Management Studies
in partial fulfillment of the
Post Graduate Diploma in Management
Under the Guidance of
Prof. Sudheer Sudhakaran
by
SUJITH POTU
BATCH 18
S C
FK-1954
M S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.
September 2010
DECLARATION
I, the undersigned, hereby declare that this project report entitled “A Study on
IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR,
HUBLI” has been written and submitted under the guidance of Prof.Sudheer
Sudhakaran and is my original work.
I understand that detection of any copying is liable to be punished in any way the
school deems fit.
DATE:
SUJITH POTU
(FK-1954)
S C
M S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.
CERTIFICATE
This is to certify that the project work entitled A Study on
“IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR,
HUBLI” has been carried out under my guidance by SUJITH POTU in
partial fulfillment of his/her Post Graduate Diploma in Management
during the academic year 2009 - 2011.
Date:
(SUDHEER SUDHAKARAN)
Associate Professor
S C
M S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.
This is to certify that the project work entitled “IMPACT OF
VISUAL MERCHANDISING ON SALES AT BIG BAZAAR, HUBLI” has
been carried out by SUJITH POTU in partial fulfillment of his/her Post
Graduate Diploma in Management.
DATE:
(Dr V.RAMAN NAIR)
DIRECTOR
ACKNOWLEDGEMENT
First and foremost, I would like to thank the Almighty God for helping me to
complete this project successfully. I would also like to thank FUTURE VALUE
RETAIL LTD. and SCMS-COCHIN for giving me this opportunity and also for
their generous support.
I would like to express my heartfelt gratitude to my guide, Mr. Chenna
Bullanawar, Store manager-Big Bazaar Hubli for his tremendous help and
encouragement with my project. I also thank Mr. Vilas Nair, Marketing facultySSTM. I am highly indebted to both of them for their invaluable advice and
intellectual guidance throughout my project. During the entire period of the study,
they were always available to show the right direction and advice in spite their
heavy and hectic work schedule.
I would like to thank Prof. K. J. Paulose, Dean and project coordinator of SCMSCochin for his support and guidance to get this project done. I would like to extend
my sincere thanks to the SCMS faculty guide, Prof. Sudheer Sudhakaran who
with friendly touch showed me the right path to accomplish the daunting task.
I am highly indebted to all those who offered their tireless support during the
course of the project and grateful to everybody‟s contribution and collaboration
DATE:
SUJITH POTU
INDEX
Chapter No.
1
Topic
Page No.
Introduction and theoretical back
1-18
ground of the study
2
Research Methodology
19-21
3
Industry and company Profiles
22-29
4
Analysis and Interpretation of data
30-55
5
Findings and conclusions
56-59
6
Bibliography
60-62
7
Appendices
63-72
TABLE OF CONTENTS
S.no
1.1
1.2
1.3
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.3.6
1.4
1.4.1
1.5
1.6
1.7
1.7.1
1.7.2
1.8
1.8.1
1.8.2
1.8.3
1.9
1.9.1
1.9.2
1.9.3
1.9.4
1.9.5
1.9.6
1.9.7
1.9.8
1.10
1.11
1.12
1.13
1.13.1
1.13.2
Title
Introduction
The 5 Sensory Elements
Visual Merchandising Elements
Exterior Presentation
Exterior Signs
Marquees
Banners
Entrance & Aisles
Window Displays
Principles Of Design
Interior Presentation
Impulse buying - The trick of Visual Merchandising
Display Design
Props, Fixtures and Signage
Props
Image
Fixture Types
Straight Rack
Four way fixtures
Wall Fixtures
Merchandise Display Planning
Shelving
Hanging
Pegging
Folding
Stacking
Dumping
Depth
Planogram
Merchandise And Fixture Display Recommendations
Basic rules for fixture placement
Interior Signage
Errors commonly occurring in display
Too little merchandise
Lack of underlying theme
Page.
No
2-3
4-5
5
5
6
6
7
7
8
8
8
9
10
10
10
11
11
11
11
11
12
12
12
12
12
12
12
13
13
14
14
15
15
16
16
1.13.3
1.13.4
1.13.5
1.14
1.14.1
1.14.2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3.1
3.2
3.3
3.4
3.5
3.5.1
3.6
3.6.1
3.6.2
4.1
4.2
4.3
4.4
16
16
17
18
18
18
20
20
20
20
20
21
21
21
23
23
24
25
25
26
27-28
27-28
29
31
32
33
35
4.5
4.6
4.7
4.8
4.9
4.10
Length of time for a display
Limited or No Display Budget
Lack of attention to Detail
Use of other sensory organs for merchandising
Use of music
Perfumes and Scent
Title
Primary objective
Secondary objectives
Sampling Plan
Data Collection
Data collection mode
Plan of Analysis
Limitations of the study
Indian Retail scenario
Retail formats in India
Major retailers in India
Challenges facing Indian retail industry
The Future
Future trends
About the future group
About Pantaloon Retail (India) Limited
Big Bazaar
Frequency of visitors to Big Bazaar
Factors tells about new product arrival in the store
Perception about product arrangement & display in the store
Perception about following the displays and layout to find a
product
Action after entering the store
Perception about promotional activities in the store
Most relevant activity regarding shopping
Factors effecting buying behavior
Experience of impulsive buying in the store
Factors affecting the impulsive buying behavior in the store
4.11
Place of impulsive buying
46
4.12
4.13
Perception about product arrangement
Perception about change in buying decisions with the influence
of display
Perception about factors affecting the buying decisions
Shopping Experience at Big Bazaar, Hubli
47
48
4.14
4.15
36
38
39
41
43
44
50
51
4.16
4.17
4.17.1
4.17.2
4.18
5.1
5.2
5.3
5.4
Product recall
Assortment * Display influence Cross tabulation
Null hypothesis
Alternate hypothesis
Crosstab between Display influence and satisfaction levels of
customers
Findings and Conclusions
Suggestions
Recommendations
On a further note
52
53
53
53
54
57
58
59
59
List of Tables
Table No
Particulars
Page No
1
Frequency of visitors to the Big Bazaar
31
2
Factors tells about new product arrival in the store
32
3
Perception about product arrangement & display in the store
33
4
Perception about following the displays and layout to find a
35
product
5
Action after entering the store
36
6
Perception about promotional activities in the store
38
7
Most relevant activity regarding shopping
39
8
Factors effecting buying behavior
41
Experience of impulsive buying in the store
43
9b (1)
Case processing summary
44
9b (2)
Factors affecting the impulsive buying behavior in the store
44
10
Place of impulsive buying
46
11
Perception about product arrangement
47
12
Perception about change in buying decisions with the
48
9(a)
influence of display
13
Perception about factors affecting the buying decisions
50
14
Shopping Experience at Big Bazaar, Hubli
51
15
Product recall
52
16
Assortment * Display influence Cross tabulation
53
17
Crosstab between Display influence satisfaction levels of
54
customers
List of Figures
Figure No
Particulars
Page No
1
Frequency of visitors to the Big Bazaar
33
2
Factors tells about new product arrival in the store
34
3
Perception about product arrangement & display in the store
35
4
Perception
4
about following the displays and layout to find a
37
product
5
Action
5
after entering the store
38
6
Perception about promotional activities in the store
40
7
7
Most
relevant activity regarding shopping
42
8
Factors effecting buying behavior
42
9(a)
Experience of impulsive buying in the store
43
9(b)
Factors affecting the impulsive buying behavior
45
10
Place of impulsive buying
46
11
Perception about product arrangement
48
12
Perception about change in buying decisions with the influence
49
of display
13
14
Perception about factors affecting the buying decisions
50
14
Shopping Experience at Big Bazaar, Hubli
51
15
Product recall
52
EXECUTIVE SUMMARY
Background:
The India Retail Industry is the largest among all the industries, accounting for
over ten per cent of the country‟s GDP and around eight per cent of the
employment. The Retail Industry in India has come forth as one of the most
dynamic and fast paced industries with several players entering the market.
This project has been done in Big Bazaar, Hubli. This is a flagship company of
future group which comes under future value retail limited with having annual
turnover of twenty three crores.
Purpose:
The purpose of the study was aimed at finding out the Impact of Visual
merchandising (VM) on customer buying behavior at Big Bazaar, Hubli.
Scope:
The scope of the study is to find out the impact of visual displays in the store
which causes to change the buying decisions of the customers. It is important to
notice that Visual merchandising is involved in getting more visitors to stores; it is
of immense importance which attracts customers towards impulsive buying in the
store.
Research methodology:
A sample size of hundred and fifty customers was selected for the study. Data was
collected by the simple random sampling method. Questionnaire was the tool used
to capture data from the customers, which was prepared on a Likert scale. Data
was analyzed through the SPSS software package and Ms Excel.
Major Findings:
The major findings of the study are listed below:
 Fifty five percent of the customers changed their buying decisions with
the influence of visual merchandising in the store.
 Eighty seven percent of the customers can recall the product display in
the store.
 Seventy four percent preferred to follow the layout of the store to find the
product.
 Eighty percent of customers are satisfied with the shopping experience at
Big Bazaar, Hubli.
Major Recommendations:
 As stated in the findings Seventy four percent preferred to follow the
layout of the store to find the product. But only Fifty five percent of the
customers changed their buying decisions with the influence of visual
merchandising in the store. So it is important to improve the visual
merchandising inside the store to get hike in sales.
 By effective presentation of the sign boards/drop downs and with promo
activities like melas & celebrations, only 60percent people came to know
about different offers in the store. Offer is the sustaining factor for
hypermarket like Big Bazaar. So it is crucial to get the attention of the
customers to enhance sales.
Literature Review:
Visual Merchandising is an important component in atmospheric management.
It includes both store exterior and store interior. Store exterior includes window
display retail premises and facade whereas store interior includes store layout,
fixtures and fittings, wall display and store highlights.
Also there are components governing both store exterior and interior, which
include colour coordination, lighting design, mannequin selection and the
application of design principles.
If retailers want to project the best side of its company, a good selection of the
visual merchandising with a detailed consideration of proper cooperate
expressions are vital.
Visual merchandising helps maintaining the overall image of a retail store in
consumers „mind (park et.al.1986).
Visual merchandising focuses on various aspects of consumers, which include
sensory pleasure, affective pleasure and cognitive pleasure (Fiore, Yah and Yoh,
2000).
Sensory aspect includes personal feeling of consumers, such as response to
temperature and noise, feeling crowded in a store (Grossbart et.al 1990: Hornik,
1992; Ko & Rhee, 1994).
Store related and product related information can also be acquired from store
environment (Baker et.al 1994).Also window display plays a crucial role in
affecting store entry decisions as it is very important information cue for
consumers (Bettman et.al, 1998).A little research about the inter relationship
between the importance of store aesthetics and consumer decision process, as a
result, the aim of this study is to look into this specific relationship.
CHAPTER -I
Introduction and Theoretical
Background of the Study
1
1.1 INTRODUCTION
Shopping has transformed from necessity to an adventure. It is more of an
experience, opportunity for celebration. The good old days have gone when a list
is made and shopping is done at the nearby Kirana store. Now shopping is a
welcome break from hectic schedules. Retail giants like Big Bazaars rule hearts
with “Is se sastha aur acha kahin nahi” Central with motto of “Shop Eat and
Celebrate”. The double conversion theory talks about visitors converting into
buyers.
At this juncture it is important to notice that visual merchandising, which deals
with the display of products and creating an ambience. A good display makes
people walk into the store and also helps in making them feel like taking a look
around.
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 overlooked in the success or failure of a
retail store.
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 the store design, it is a key component of store‟s unique
identity and best form of advertising.
2
Visual merchandising can be defined as everything the customer sees, both
exterior and interior, that creates a positive image of a business and results in
attention, interest, desire and action on the part of the customer. It includes the
presentation of merchandise as well as other important, features that create the
store‟s overall atmosphere. Eighty percent of 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. Visual merchandising
is directly involved in two-third of the entire process of converting a mere visitor
into a buyer.
Visual merchandising plays a very important role in attracting customers of
different sections to buy the goods. The basic objective for visual merchandising is
a desire to attract customers to a 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. Creating and maintaining a store‟s visual merchandising plan, however, is
not a simple task. It is necessary to continually determine what the customer sees.
This evaluation from the customer‟s perspective should start on the exterior and
work completely through the interior of the store.
Through visual merchandising it is able to communicate to target customer
brand‟s identity, and what is unique and special about the offering and what makes
this store better than other stores.
3
The 70% Rule
Seventy per cent of the purchase decisions happen on the store floor according to
the study conducted in the US in 1995 study initiated by the Point-of- Purchase
Advertising Institute. In addition to its conclusion that “more than seventy percent
of brand decisions are made in store,” It was also advanced that “POP (point-ofpurchase displays) are a significant decision Influencer.”
The study found that “more than seventy percent of brand purchase decisions
are made in-store at supermarkets, and more than seventy four percent are
made in-store at mass merchandisers.” This study was large in scope;
encompassing data from a nationwide field intercept study of four thousand two
hundred consumers across fourteen cities.
Visual merchandising has taken retailing by storm. Stemming from Neural
marketing, an intriguing marriage of marketing and science is the window to
human mind. It is the key to unlock the subconscious thoughts, feelings and
desires that drive the purchasing decisions that we make in everyday lives.
1.2 THE 5 SENSORY ELEMENTS
Sight: The first thing that motivates a consumer to walk into a store is how the
store looks‟. A welcoming and friendly store always scores a plus over those
which
are
not.
Bright
colours,
well-placed
merchandise
and
in-store
advertisements, all go into working for creating that „sight‟ for a consumer. For
example, in a furniture store, facts and helpful tips by interior designers can be put
up next to merchandise to aid the consumers. They can see, read and take
informed decisions.
4
Sound: Indulging the sense of sound through pleasing music (in accordance with
the merchandise and brand concept) is a must. At an apparel store for young
adults, fashion shows on screens and tips by stylists can be aired in the store to
help shoppers select clothes for themselves. Interviews or quotes by famous
authors can be played at bookstores to educate the customers on what books to
pick up.
Smell: A pleasing smell always adds to the ambience of a store. A visual
merchandiser while working in accordance to the retailer‟s details should always
keep in mind the sense of smell of a shopper. Good odour is a sure-shot bonus to
the store, it may not be remembered always, but its absence shall surely be
remembered.
Touch: This is a tricky sense to indulge in, but most vital. For today‟s qualityconscious consumer it is more than a necessity to be able to „feel‟ the
merchandise. Be it in trying on clothes in the trial room, or testing a perfume with
a tester. The client should always be made to feel at home when it comes to the
sense of „touch‟. The worth this cannot be over emphasized.
Taste: Not all retail stores can hope at utilizing the sense of taste. But for those
who can, like chocolate stores, candy stores, F&B outlets, snack and juice bars
should aim at always treating the sense of „taste‟ of their consumers. On the house
samples for tasting, free dishes or drinks on certain amount of purchases or sweets
and chocolates for kids at any other kind of store are a few ways the retailer can
indulge in the sense of taste of the consumer.
Pampering the five senses of the consumers ensures a sensory shopping
experience for them. Working out the visual merchandising of a store with this end
5
in mind can work wonders for a brand. The sixth sense, in this case, can be the
sense the consumer exercises in purchasing the product. But that sense shall only
prevail if the other five have been effectively stimulated.
1.3 VISUAL MERCHANDISING ELEMENTS
1.3.1Exterior Presentation
The quality of a store front is a
major determinant for a customer
and the store appearance should
never be compromised. The exterior
appearance silently announces what
customers can expect inside. Good
exterior
visual
merchandising
attracts attention, creates interest
and
invites
the
customer
into
business. Generally the exterior
presentation should be progressive, lavish or discount image to the customer. The
important point to be noted is that how a store visually welcomes a customer has
to do a lot, whether they enter or not.
1.3.2 Exterior Signs
An effective sign is a silent sales person. A sign must attract attention of
customers in less than ten
seconds and should convey
what the business is and
what it has to sell. The size
of the letter used in signs
should be large enough to
6
be read from a distant place. Elegant design and expensive sign material will
convey a business of luxury goods and services. A design of the sign conveys a
great deal about the business. Signs can also be used to target a specific market
segment such as youth, women, singles etc. Logo is also very important and plays
a major role in attracting customers. They should be unique and noticeable. To put
it in simple words simple brief, well designed, well lettered and easy to read signs
will attract more customers and convey a feeling of welcome to the customers. A
stores signs is its identity. It is with the sign that the public recognize the store.
Hence it should create an image that can be consistently carried out as an identity
of the store.
1.3.3 Marquees
Marquees are special type of signs used to display stores name. Effective
marquees should be designed so as it is different from others and attracts the
attention of customers.
1.3.4 Banners
Banners are economical but colourful and
eye catching means of promotion. They
can be changed frequently to create
different appearances which will in turn
attract customers to the store. It will be
more effective when the colour scheme
and design concept used in the banners are
the same as what is used in the store, on promotional materials and newspaper ads.
7
1.3.5 Entrance & Aisles
Most of the first time customers
remember the store entrance.
This goes on with the quote
„first impression is the best
impression‟. Giving the best
impression to the customer‟s
right
at
the
entrance
is
mandatory for any store. Cluttered aisles makes the shoppers feel uncomfortable
and hence leave to a bad shopping experience. Entrances that allow shopping to
come into a store without being aware of their entering are also becoming very
popular.
1.3.6 Window Displays
The display at shop windows is becoming increasingly popular as far as visual
merchandising stands. Changing
window displays to suit themes
and moods and seasons is
gaining
popularity.
Special
emphasis has to be placed on a
store‟s window displays because
they are the information link to
the potential customer.
It is reckoned that as many as
one in every four sales could be
the result of a good window display. Window display should attract attention,
create interest and invite people into the store to purchase goods. The average
8
amount of time an individual spends looking at a window display is about eleven
seconds, and that is the maximum time available to achieve this. Too much of
merchandise must not be crowded at a window, as customers find it difficult to
determine the message and what items are being promoted.
1.4 PRINCIPLES OF DESIGN
1.4.1 Interior Presentation
Selling space is the most important
part of a store and therefore, efforts to
utilize each square foot will help to
maximize
sales.
When
planning
interior displays, it should be kept in
mind that the theme and image
presented on the exterior must be
carried throughout the interior of the store to provide consistency for the customer.
The purpose of interior display is to develop desire for the merchandise, show
what is available, and encourage both impulse and planned buying.
Three major goals of a store should be to motivate the customer to spend money,
project the image of the store and keep expenses to a minimum. Well-designed
displays and in-store promotions are essentials for a consistent theme and to help
the customer find advertised items.
Although the percentage of in-store purchase decisions may vary by type of store
and product, this is a critical selling point. Information provided by the Point of
Purchase Advertising Institute (POPAI) indicates that nothing influences the
9
consumer‟s purchase decisions more than advertising used where the sale is
actually made---the point of purchase.
1.5 Impulse buying - The trick of Visual Merchandising
A research conducted in US suggests that 64.8 per cent of all purchases decisions
were made inside a supermarket. This included impulse purchase along with
substitutions and generally planned buys where the shopper had an item in mind,
but
no
brand.
Most
people
indicated they purchased the item
because they saw it displayed.
Displays or advertising alone may
not
increase
product
sales
substantially.
However, combining advertising
and display into an integrated
promotional campaign will
usually be more effective. Some
effective displays are created by suppliers or brand-name manufacturers, while
others are developed from scratch. The main principles of design used in display
are balance, emphasis, proportion, rhythm, colour, lighting and harmony. These
principles apply to all displays, window and interior.
1.6 Display Design
An effective way of attracting
customers to a store is by having
good displays, both exterior and
interior.
A
customer
will
be
10
attracted to a display within three to eight seconds, which is the time a customer
spends to determine interest in a product. Every display should be planned and
must have a theme. Good design makes a visual presentation come together.
This means the design attracts attention in a way that strengthens the store image,
as well as introducing merchandise to the customer. Sale or promotional good in
front of the store should be placed for short period of time only. If the sale or
promotion lasts for several weeks, merchandise should be moved to the rear of the
store. The customer should always get to see new exciting and creative
merchandise with display at the front of the store.
1.7 PROPS, FIXTURES AND SIGNAGE
1.7.1 Props
A prop is something used with a product in a display that clarifies the function of
the merchandise being sold. Props are the integral part of a display. They are used
in visual merchandising to tell a story about a product, the merchandise concept or
the store itself. A display prop is something which is not for sale, such as floor
coverings, wall treatments, backgrounds, mannequins, shelves, and steps. Props
may also be merchandise that is for sale.
1.7.2 Image
When using sellable merchandise as a prop, it should be ensured that it is
appropriate for the theme of the display and in sufficient quantity to meet an
increased demand arising from the display. Theme and prop merchandise must be
prominently displayed in their respective departments for the easy access by the
customer.
If a store does not have merchandise available that can be used in the display,
display props can be used for non-merchandise categories. Non-merchandise props
11
used for their original purpose can assist in telling a story. Including tissue paper,
pens, pencils, shopping bags, hangers, chairs, desks and tables is an example. The
presence of prop is to highlight or complement the merchandise and add visual
excitement to the surrounding area.
1.8 FIXTURE TYPES
1.8.1 Straight Rack - Long pipe suspended with supports to the floor or attached
to the wall.
1.8.2 Four way fixtures: Two cross bar that
are
perpendicular to each other in a pedestal.
1.8.3 Wall Fixtures: To make store walls
merchandisable, wall usually covered with a
skin, that is fitted with a vertical columns of notches similar to those on the
Gondolas, into which a variety of hardware can be inserted can be merchandised
much higher than floor fixtures.
1.9 MERCHANDISE DISPLAY PLANNING
1.9.1 Shelving – flexible and easy to maintain.
1.9.2 Hanging- Suspending merchandise from
hangers
1.9.3 Pegging – small rods inserted into walls.
12
1.9.4 Folding – For soft lines that can be folded and
stacked on shelves or tables – creates high fashion
image.
1.9.5 Stacking – For large hard lines that can be
stacked on shelves, base desks of gondolas or flats –
easy to maintain and show an image of high volume
and low price. Stacking cushions is one such practice.
Soft materials stacked are
seen in the figure.
1.9.6 Dumping – Large quantities of small merchandise
can be dumped into baskets or bins – highly effective for
soft lines (socks, washcloths) or hard lines(batteries
candy, grocery products) – creates high volume, low cost
image.
1.9.7 Depth - Depth is the distance from the front of
the window to the back of the window. It is important
to give the display the right amount of depth.
Consider the way we watch movies and ok at the
painting; we step or sit back from whatever we wish
to see. The same applies to the windows – to grasp
the whole picture it must be set back from the
window, not positioned right at the glass. The rule of
thumb is to start three quarters away from the glass, then work forward. At the
same time the display should be stepping down from the highest.
13
1.9.8 Planogram
Planogram is tool used by the retailer, which helps the
retailer to determine the location of the merchandise
within a department. It is a diagram that visually
communicates how merchandise physically fit on to a
store fixture or window, to allow for proper visibility and
price point options. It helps in listing the exact number of
square feet used for various products and exact number
of products to be displayed in a particular area
Planogramming benefits:
 Improved sales presentation and closure results
 Increased consumer appeal of product displays
 Better brand awareness through consistency
 Improved efficiency of shelf space allocations
 Improved financial performance of assortments
 Faster more accurate replenishments
 Quicker inventory resets
 Much better marketing through targeting displays
1.10 MERCHANDISE AND FIXTURE DISPLAY RECOMMENDATIONS
Goods can be effectively displayed on a variety of fixtures such as gondolas,
tables, cubes, mannequins, waterfalls and other racks, display cases and
manufacture point of purchase displays.
A fixture should not only complement the merchandise, but also the atmosphere
created in the store. Each fixture should present the merchandise to the public and
thereby act as a silent salesperson. One of the most common fixtures in stores is
14
gondolas - movable shelving approachable from all sides which are used in self
service retail stores, to display merchandise. They can be lined up in rows as in
grocery, hardware and drug stores or used singly to create an island.
1.11 Basic rules for fixture placement
Outlined below are some basic rules for fixture placement. These are not
absolutes, but rather guidelines that fit in well store set-up and customer traffic
patterns.
 Three feet distance between racks must be allowed
 The aisle leading to directly to the fire exit is considered a major aisle. The
fire exit must not be blocked with fixtures and extraneous materials.
 A well-planned, geometric aisle pattern works best to maximize sales.
 Aisle displays must be placed on an island rather than wing fixtures.
 When placing racks, progress from small (sized or capacity) fixtures at
aisles to large fixtures near the back walls. When working with hard goods,
place cubes in the front with gondolas to the rear of the department or store.
 Higher priced stores require fewer fixtures because there is less stock
available. T-stands and four ways can be used to create an illusion of space
and selective goods. This feeling is necessary to sell higher-priced goods.
 Exciting displays of mass merchandise in quantity and colour must be
created.
 Cubes can be used for folded goods.
 Fixtures that racks well for sale items include tub tables, round racks and
rectangular racks.
15
1.12 Interior Signage
Signage is a critical part of interior
display
promotion.
and
Store
point-of-purchase
signage
that
communicates a sales message to the
customers can make up for lack of sales
personnel. A good point-of-purchase
sign, properly placed, acts
as a
salesperson without wages. Signs were
originally used to identify a store, name various departments, and announce sales
and sale merchandise. Although their primary purpose was these, now signage
commonly advertises vendors, colours, quality and prices. They can also be used
to explain customer benefits and describe merchandise features.
1.13 Errors commonly occurring in display
There is no thumb rule as to how much merchandise should appear in an area.
However one major consideration is the price of the merchandise. The more
expensive item the fewer it is displayed. Some precautions must be taken so that
the display area is not
 Cramped up with may similar items
 Many different items , such that any selling message is lost
 Appear aesthetically offensive to the customer
1.13.1 Too little merchandise
A window or display area with too little merchandise makes a store appear to be
going out of business or indicates to the customer that the establishment is less
than prosperous.
16
Generally the lack of merchandise on the display is that the merchandise has been
sold and it has not been replaced.
If the items needed for display are unavailable then the display dimensions have to
be reduced to make it appear in proportion with the available merchandise. Poor
planning is also one of the main reasons.
1.13.2 Lack of underlying theme
Merchandise is often placed in a space with no selling message, theme or motive.
Regardless of the type of the merchandise used, the location or the store type, the
display needs a strong theme. The consumer should be able to understand the
concept presented by the display in a few seconds.
1.13.3 Length of time for a display
As a standard many interior displays are changed daily because they are effective
and merchandise sold directly from them needs to be replaced. Large window
displays may be changed as often as two times a week or as infrequently as every
other week. This generally depends on the season and the length of time a current
store theme has been planned. An example of a display that might stay longer
would be an unusual festive display. The expense, time and planning of a display
is also used as a guideline for frequency of change. Special window and internal
store promotions have a longer display life.
1.13.4 Limited or No Display Budget
An empty display area generally indicates the declining path of sales. Display
areas are often budgeted with the left over; after all other monetary needs have
been fulfilled. This generally means that there is little or no budget for the display.
A low budget look should be avoided. A low budget display may generally consist
of crepe paper, tissue paper, construction items or other such perishables. Low
budget displays generally give a negative image to the end customer.
17
However, high level of creativity is needed to plan and execute a great display
with very little budget. Good theme development without expensive background
can be created. An example would be use of old furniture, wood, clothes
effectively to create a classic image.
1.13.5 Lack of attention to Detail
Making a good impression is very much important. Hence paying attention to
small detail is an important factor. This is generally the first thing the customer
notices. Belo w is the list of things that needs to be taken care of prior to the
finished display:
 The display should be absolutely clean without any dust
 Signs should be attached in the display providing all the necessary
information
 Lights in the display area should be covered. Moreover caution is to be
taken to avoid fire and other related disasters
 The display area should be checked from all the angles so that all
merchandise should be easily visible and aesthetically pleasing Mistakes in
applying principles of display
 The four principles of design and display include emphasis, balance,
rhythm and
proportion. These principles must be reviewed every
time the display is completed.
 Every display needs a point where the viewer‟s eye can easily start. A
display which is displayed too frequently has no definite point of emphasis
or the point of emphasis is in the wrong place.
18
1.14 Use of other sensory organs for merchandising
1.14.1 Use of music
The store image and the mood of the customers can be changed dramatically by
the use of music. Music establishes moods, helps to motivate the subconscious
mind and create long lasting impression on the customers. Specific music for
particular merchandise can create a good shopping experience and can be an
important tool for creating a brand.
1.14.2Perfumes and Scent
The other use of stimulation can be use of stimulating the olfactory lobe of the
brain. i.e. use of perfumes and scents. Layout having fresh breads and buns, can
entice the customers by the aroma. Segments of the store having soaps and
toiletries can enchant the customers by the use of perfumes and scents. A pleasing
scent can create a wonderful ambience and add to the customers shopping
experience. Scent can also be a major factor in determining which product to buy.
Everything from perfumes, scented candles, toiletries, cleaning products are all
bought while keeping scent in the mind. The scent generally determines which
product the customer purchases.
19
CHAPTER II
Research Methodology
20
Research Methodology
2.1 Title: A Study on Impact of visual merchandising on sales in Big Bazaar,
Hubli.
2.2 Primary objective:
 To study the impact of visual merchandising on the buying behavior and
the buying decisions of the customers.
2.3 Secondary objectives:
 To explore the impact of layout in a retail store on customer buying
behaviour.
 To explore if buying choices are made before reaching the store or based on
visual displays in the store.
 To analyze whether customers can recall the products displayed by visual
merchandising or not.
2.4 Sampling Plan:
 Target Population: Individuals between the age group of 18 to 70 years
will be chosen as the target population. The people under this age group
who are frequent visitors and shoppers to Big Bazaar, Hubli.
 Sampling Procedure: The sampling procedure using here is simple
random sampling. Simple random sampling means each sample in the
population has equal chance to be picked up for the study.
 Sample Size: A sample of 150 customers can be taken in order to carry
the study.
 Sample Elements: The sample elements will consist of people who visit
and shop from Big Bazaar.
21
2.5 Data Collection:
Data is the information which will be collected from various sources. It concerns
with gather accurate information about the problem.
2.6 Data collection mode: Two methods can be used to collect the relevant data,
which are essential for the study.
 Primary Data: Data will be collected to obtain desired information
through structured questionnaire.
 Secondary Data: Data is collected through books, magazines, newspapers
and internet…etc
2.7 Plan of Analysis:
The collected data from both primary and secondary sources will be tabulated in
the form of tables. The data collection through questionnaire will be analyzed in
detail and divided into various categories of preferences. By giving inputs to
various methods in SPSS I can observe the impact of visual merchandising on
buying decisions of customers. The analysis of data using SPSS will give the
meaningful conclusion for my research.
2.8 Limitations of the study:
There are a few limitations to the study that may arise due to the following
reasons:
1. Reluctance of the sample to give a proper feedback
2. The study is confined just to Hubli, Karnataka.
3. Language barrier prevailed.
22
CHAPTER III
INDUSTRY & COMPANY
PROFILES
23
3.1Indian Retail Scenario:
The retail scenario is one of the fastest growing industries in India over the last
couple of years. The Indian retail industry is the third largest in the world.
Comprising of organized and unorganized sectors, though initially, the retail
industry in India was mostly unorganized consists of small and medium grocery
store, medicine stores, „subzi mandi‟, „kirana‟ stores, „paan‟ shops etc. However,
with the change of tastes and preferences of the consumers, the industry is getting
more popular these days and getting organized as well. More than Ninety percent
of retailing in India fall into the unorganized sector, the organized sector is largely
concentrated in big cities. Organized retail in India is expected to grow Twenty
five to Thirty per cent yearly and is expected to increase from Rs 35, 000crore in
2004-05 to Rs109, 000 crore ($24 billion) by 2010.
3.2 Retail formats in India:
Format
Description
The Value Proposition
Branded Stores Exclusive showrooms either owned or Complete range available
franchised out by a manufacturer.
for a given brand, certified
product quality
Specialty
Focus on a specific consumer need, carry Greater choice to the
Stores
most of the brands available
consumer, comparison
between brands is possible
Department
Large stores having a wide variety of
One stop shop catering to
Stores
products, organized into different
varied/ consumer needs
departments such as clothing, house
wares, furniture, appliances, toys, etc.
24
Supermarkets
Extremely large self-service retail outlets
One stop shop catering to
varied consumer needs
Discount
Stores offering discounts on the retail Low Prices
Stores
price through selling high volumes and
reaping economies of scale
Hypermarket
Larger than a supermarket, sometimes Low prices, vast choice
with a warehouse appearance, generally available including services
located in quieter parts of the city
such as cafeterias
Convenience
Small self-service formats located in Convenient
location
and
stores
crowded urban areas
Shopping
An enclosure having different formats of Variety of shops available
Malls
in store retailers, all under one roof.
extended Operating hours.
to each other.
3.3 Major Retailers in India
Future Group: Pantaloon is one of the biggest retailers in India with more than
four fifty stores across the country. Headquartered in Mumbai, it has more than
five million sq. ft retail space located across the country. It is growing at an
enviable pace and is expected to reach thirty million sq. ft by the year 2010.
Tata Group: Tata group is another major player in Indian retail industry with its
subsidiary Trent, which operates Westside and Star India Bazaar. Established in
1998, it also acquired the largest book and music retailer in India „Landmark‟ in
2005. Trent owns over four lakh sq. ft retail space across the country.
RPG Group: RPG Group is one of the earlier entrants in the Indian retail market,
when it came into food & grocery retailing in 1996 with its retail Food world
stores. Later it also opened the pharmacy and beauty care outlets „Health & Glow‟.
25
Reliance: Reliance is one of the biggest players in Indian retail industry. More
than three hundreds Reliance Fresh stores and Reliance Mart are quite popular in
the Indian retail market. It is expecting its sales to reach Rs. 90,000 crores by
2010.
AV Birla Group: AV Birla Group has a strong presence in Indian apparel
retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, and Peter
England are quite popular. It is also investing in other segments of retail. It will
invest Rs. 8000-9000 crores by 2010.
3.4 Challenges facing Indian retail industry:
 The tax structure in India favors small retail business
 Lack of adequate infrastructure facilities
 High cost of real estate
 Dissimilarity in consumer groups
 Restrictions in Foreign Direct Investment
 Shortage of retail study options
3.5 The Future:
The retail industry in India is currently growing at a great pace and is expected to
go up to Rs. 3.74 lakh crore by the year 2013. It is further expected to reach Rs. 65
trillion by the year 2018. As the country has got a high growth rates, the consumer
spending has also gone up and is also expected to go up further in the future. In the
last four year, the consumer spending in India climbed up to seventy five percent
.As a result, the India retail industry is expected to grow further in the future days.
By the year 2013, the organized sector is also expected to grow at a rate of forty
percent.
26
 According to Government of India estimate the retail sector is likely to
grow to a value of Rs. 2,00,000 crore (US$45 billion) and could yield ten
to fifteen million retail jobs in the coming five years; currently this
industry employs eight percent of the working population in India which is
the second largest employment provider after agriculture.
 India continues to be among the most attractive countries for global
retailers. According to the Department of Industrial Policy and Promotion,
approximately RS. 213 hundred crore was the amount of Foreign Direct
Investment (FDI) inflow as on September 2009, in single-brand retail
trading.
More than eight percent of the retail sector in the country is concentrated in the
large cities. A study reveals that among the more than twenty locations, for
organized retail in India, Mumbai was found to be the most preferred location
followed closely by Bangalore in the second position.
3.5.1 Future Trends:
 Lifestyle International, a division of Landmark Group, plans to have more
than fifty stores across India by 2012–13.
 Shoppers Stop has plans to invest Rs250 crore to open fifteen new
supermarkets in the coming three years.
 Pantaloon Retail India (PRIL) plans to invest Rs. 346.5 crores this fiscal to
add up to existing 2.4 million sq ft retail space. PRIL intends to set up
hundred and fifty five Big Bazaar stores by 2014, raising its total network
to two hundred and seventy five stores.
 Timex India will open another fifty two stores by March 2011 at an
investment of Rs. 58.5 crore taking its total store count to hundred and
27
twenty. By September 30, 2009, the company has recorded a net profit of
Rs. 54 crore.
 Australia's Retail Food Group is planning to enter the Indian market in
2010. It has plans to clock Rs.34.8 crore revenue in five years. In twenty
years they expect the India operations to be larger than the Australia
operations.
3.6 About the 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 twelve
million square feet of retail space in over seventy cities and towns and sixty five
rural locations across India. The group owns several leading formats including
Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon
Retail was awarded the International Retailer of the Year - 2007, by the USbased National Retail Federation, the largest retail trade association and the
Emerging Market Retailer of the Year 2007 at the World Retail Congress in
Barcelona. Future Group believes in developing strong insights on Indian
consumers and building businesses based on Indian ideas, as espoused in the
group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules,
Retain values'.
28
3.6.1 About Pantaloon Retail (India) Limited:
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
market. Headquartered in Mumbai (Bombay), the company operates over sixteen
million square feet of retail space, has over thousand stores across seventy cities in
India and employees over thirty thousand people with 6,341.70 Crores turnover.
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 Brand Factory, Blue Sky,
ALL, and Star & Sitara.
Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail
(India) Limited. This entity has been created keeping in mind the growth and the
current size of the company‟s value retail business, led by its format divisions, Big
Bazaar and Food Bazaar.
The company operates hundred and twenty three Big Bazaar stores, hundred
and seventy Food Bazaar stores, among other formats, in over seventy
cities across the country, covering an operational retail space of over six million
square feet. As a focussed entity driving the growth of the group's value retail
business, Future Value Retail Limited will continue to deliver more value to its
customers, supply partners, stakeholders and communities across the country and
shape the growth of modern retail in India.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home
Town, a large-format home solutions store, Collection, selling home furniture
products and eZone focused on catering to the consumer electronics segment.
29
Pantaloon Retail is the flagship company of Future Group, a business group
catering to the entire Indian consumption space.
3.6.2 Big Bazaar:
Big Bazaar is not just another hypermarket. It caters to every need of your family.
Where Big Bazaar scores over other stores is its value for money proposition for
the Indian customers.
At Big Bazaar, you will definitely get the best products at the best prices – that is
what we guarantee. With the ever increasing array of private labels, it has opened
the doors into the world of fashion and general merchandise including home
furnishings, utensils, crockery, cutlery, sports goods and much more at prices that
will surprise you. And this is just the beginning. Big Bazaar plans to add much
more to complete your shopping experience.
30
Brief view of Big Bazaar’s Products:
Fashion Dept
Denims & T-shirts
Fabrics & Cut
pieces
Formal wear
Casual wear
Party wear
Ethnic wear
Food Bazaar
GM-Home Gm-fashion
Staples
Utensils
Depot
Vegetables
Furniture
Luggage carriers
Ready to cook
Electronics
Fruits &
Own brands
Species
Live kitchen
Accessories
Under garments
Night wear
Dress material
Sarees
Foot wear
31
Chapter IV
Analysis & Interpretation of Data
32
4.1 Frequency of visitors to Big Bazaar
Gender
Total
Male
M%
Female
F%
23
28.7
25
35.7
48
Once in a week
19
23.7
16
22.8
35
Once in a month
15
18.7
24
34.2
39
Only on offer days
14
17.5
4
5.7
18
Very rarely
9
11.2
1
1.4
10
Frequency More than once in a week
Total
80
70
150
PERCENTAGE
Table-1(Frequency of visitors to the Big Bazaar, Hubli)
40
35
30
25
20
15
10
5
0
35.7
34.2
Male
Female
28.7
23.7 22.8
18.7
17.5
11.2
5.7
More than once Once in a week
in a week
Once in a
month
FREQUENCY
Only on offer
days
1.4
Very rarely
Fig-1(Frequency of visitors to the Big Bazaar, Hubli)
33
Analysis:
It is observed that 55.3% of samples are coming the store once in the week, so we
need to concentrate on daily consumables.34.2% female are coming once in a
month, so to attract these people we need to concentrate on provisions.17.5% of
male samples are interested to come only on offer days, so it will be helpful to
concentrate slightly on male belongings on offer days.
4.2 Factors tells about new product arrival in the store
Gender
New arrival
Total
Male
M%
Female
F%
Through display of the product
37
46.3
25
35.7
62
Through Offers
19
23.8
14
20
33
Through Announcements
16
20.0
8
11.4
24
By enquiring salesperson
3
3.8
9
12.9
12
You will search by your own
5
6.3
14
20
19
Total
80
70
Table-2(Factors tells about new product arrival in the store)
34
150
50
Male
46.3
PERCENTAGE
40
Female
35.7
30
20
23.8
20
20
10
20
11.4
3.8
12.9
6.3
0
Through display Through Offers
Through
of the product
Announcements
By enquiring
salesperson
You will search
by your own
FACTORS
Fig-2(Factors tells about new product arrival in the store)
Analysis:
From the above interpretation it was observed that 46% of the male samples and
35.7% of female samples came to know about the new product arrival in the store
through display of the product. Only 22% of the samples came to know through
different offers.
So with that i can conclude that Visual merchandising is making awareness about
new product better than offers offered for the customers on new products.
4.3 Perception about product arrangement & display in the store
Gender
Total
Male
M%
Female
F%
Assortment Always
18
22.5
16
22.9
34
Mostly
32
40
40
57.1
72
Sometimes
19
23.8
9
12.9
28
Rarely
8
10
4
5.7
12
Never
3
3.8
1
1.4
4
Total
80
35
70
150
Table-3(Perception about product arrangement & display in the store)
60
57.1
PERCENTAGE
50
Male
40
Female
40
30
20
23.8
22.5 22.9
10
12.9
10
5.7
3.8
1.4
0
Always
Mostly
Sometimes
FREQUENCY
Rarely
Never
Fig-3(perception about product arrangement &display in the store)
Analysis:
It can be observed that 70.6% of the samples (80% female samples) agreed that
they were attracted by the product arrangement and display in the store.
With that I can conclude that the proper arrangement and display of the products
will be vital in retail store especially female requirements. So visual
merchandising should be attractive and message oriented regarding product.
36
4.4 Perception about following the displays and layout to find a product
Gender
Total
Male
M%
Female
34
42.5
44
62.9
78
Agree
20
25
14
20
34
Neither agree nor Disagree
17
21.3
10
14.3
27
Disagree
7
8.8
1
1.4
8
Strongly Disagree
2
2.5
1
1.4
3
Follow display Strongly Agree
Total
80
70
150
Table-4(Perception about following the displays and layout to find a
product)
70
PERCENTAGE
60
62.9
Male
50
40
Female
42.5
30
20
25
20
10
21.3
14.3
0
Strongly Agree
Agree
Neither agree
nor Disagree
Perceptual Factors
8.8
1.4
Disagree
2.5
1.4
Strongly
Disagree
Fig-4(Perception about following the displays and layout to find a
product)
37
Analysis:
From the above analysis it can be observed that 74.6% samples (82.9%female samples)
were agreed that they follow displays and layout to find product.
So it is necessary to maintain excellent displays for products and flexible layout for store.
Then it will be very helpful to the customers to find the products easily and impulsive
buying may happen with excellent display of products. This will help in raising the sales.
4.5 Action after entering the store
Gender
Male
I enter
Total
M% Female
F%
Go straight to the product which i want
9
11.3
20
28.6
29
Walk through the store as it leads me
60
75
28
40
88
Don't follow any pattern, randomly pick product
7
8.8
12
17.1
19
Seek the help of salesperson to navigate in the
store
Total
4
5
80
Table-5(Action after entering the store)
38
10
70
14.3
14
150
80
70
60
50
40
30
20
10
0
PERCENTAGE
75
Male
Female
40
28.6
17.1
11.3
8.8
Go straight to the
Walk through the
product which i want store as it leads me
5
14.3
Don't follow any
Seek the help of
pattern, randomly
salesperson to
pick product
navigate in the store
ACTIONS
Fig-5(Action after entering the store)
Analysis:
It can be inferred as 58.6% of the samples are stated that “they walk through the store as it
leads them”.
So from the above I can conclude that it will be the trick of Visual merchandising to
convert the people who walk through the store as customers. So store should concentrate
on excellent way of merchandising to attract customers and to improve sales of the store.
39
4.6 Perception about promotional activities in the store
Gender
Total
Male
M%
Female
F%
Sign boards/Drop downs
40
50
17
24.3
57
Promo areas(melas)
9
11.3
25
35.7
34
sales people
5
6.3
12
17.1
17
pamphlets
9
11.3
3
4.3
12
Announcements in the store
17
21.3
13
18.6
30
Offers
Total
80
70
150
Table-6(Perception about promotional activities in the store)
60
50
PERCENTAGE
40
Male
50
35.7
30
20
10
Female
24.3
21.3
17.1
11.3
18.6
11.3 4.3
6.3
0
ACTIVITIES
Fig-6((Perception about promotional activities in the store)
40
Analysis:
From the above it can be observed that 60.6% of the samples came to know about
the offers through sign boards/drop downs & promo areas.
So it is important to convey the offers to customer to get attention at the product.
With this I can conclude that proper displaying of sign boards, promo areas will
help the customers to know about offers and will be helpful in increasing the sales.
4.7 Most relevant activity regarding shopping
Gender
Total
Male
M%
Female
F%
I bought what i came to buy, Nothing more
21
26.3
7
10
28
I bought little more than what i came for
34
42.5
46
65.7
80
I bought lot more than what i came for
15
18.8
9
12.9
24
I bought everything that attracted me
7
8.8
6
8.6
13
I didn't find what i needed, so i didn't buy
anything
Total
3
80
3.8
2
70
Table-7(Most relevant activity regarding shopping)
41
2.9
5
150
70
65.7
60
Male
PERCENTAGE
50
40
Female
42.5
30
20
26.3
18.8
10
12.9
10
8.8 8.6
0
3.8 2.9
I bought what I bought little I bought lot
I bought
I didn't find
i came to
more than
more than
everything
what i
buy, Nothing what i came what i came that attracted needed, so i
more
for
for
me
didn't buy
anything
ACTIVITIES
Fig-7(Most relevant activity regarding shopping)
Analysis:
From the above it can be observed that 53.3% samples bought more than what
exactly they came for. That may happen with the impulsive buying, offers. So
visual display of the sign boards and products are crucial to create an intention to
buy the product with offer or with good display.
42
4.8 Factors effecting buying behavior
Gender
Total
Male
M%
Female
F%
Attractive displays of the product
17
21.3
11
15.7
28
Good product
12
15
23
32.9
35
Information provided by sales person
6
7.5
7
10
13
When i see a good deal, i tend to buy more
than i intended to buy
No specific reason, i bought because i like
the product
I didn't buy anything out of list
42.5
34
13.8
11
0
Total
0
30
21
2.9
2
6
80
8.6
70
55
13
6
150
Table-8(Factors effecting buying behavior)
PERCENTAGE
45
40
35
30
25
20
15
10
5
0
42.5
Male
Female
32.9
30
21.3
15.7
15
13.8
7.5
10
2.9
Attractive Good product Information
displays of the
provided by
product
sales person
8.6
When i see a No specific I didn't buy
good deal, i
reason, i
anything out
tend to buy
bought
of list
more than i because i like
intended to
the product
buy
FACTORS
43
0
Fig-8((Factors affecting buying behavior)
Analysis:
From the above it can be observed that 42.5% male samples and 30% female
samples were agreed that when they see good deal they will buy. So it is important
to display the offers and promote them as much possible.29% was influenced by
attractive display of the product. So we should concentrate on product display in
the store which can influence the buying decisions of the customers.
4.9 Experience of impulsive buying in the store
Gender
Total
Male
M%
Female
F%
Yes
68
85
56
80
124
No
12
15
14
20
26
Total
80
70
150
Table-9(a) (Experience of impulsive buying in the store)
44
85
Yes
80
No
PERCETAGE
90
80
70
60
50
40
30
20
10
0
20
15
Male
Female
GENDER
Fig-9(a) (Experience of impulsive buying in the store)
Analysis:
From the above it can be observe that 82.6% samples experienced impulsive
buying in the store.
So there is a possibility to implement some techniques to grab those customers
who tend to impulsive buying inside the store.
4.10 Factors affecting the impulsive buying behavior in the store
Valid
Missing
Total
N
Percent
N
Percent
N
Percent
124
82.7%
26
17.3%
150
100.0%
Table-9b (1) (Case processing summary)
45
Gender
Total
Male
M%
Female
F%
Influence of product arrangement
13
19.1
9
16.1
22
Placing of the product
8
11.8
10
17.9
18
Influence of promotional signage
15
22.1
23
41.1
38
Excitement in trying a new product
20
29.4
8
14.3
28
Influence of mannequin display
12
17.6
6
10.7
18
Total
68
56
124
Table-9b (2) (Factors affecting the impulsive buying behavior in the
store)
PERCENTAGE
45
40
35
30
25
20
15
10
5
0
41.1
Male
Female
29.4
22.1
19.1
17.9
16.1
17.6
14.3
11.8
Influence of
product
arrangement
10.7
Placing of the
product
Influence of
promotional
signage
FACTORS
Excitement in
trying a new
product
Influence of
mannequin
display
Fig-9b (Factors affecting the impulsive buying behavior in the
store)
46
Analysis:
From the above analysis it is observed that 30.6% over all samples and 41.1% female
samples tend to impulsive buying with the influence of promotional signage, 29.4% male
samples were agreed that they tend to impulsive buying for excitement in trying a new
product, So 32.2% samples are influenced by placing of the product and product
arrangement.
So from that it is clear that the factors which are influencing the impulsive buying are
promotions and product arrangement. Here comes Visual merchandising to arrange
products effectively and to create promotions visible to customers to convert the walk-ins
as sales.
4.11 Place of impulsive buying
Gender
Total
Male
M%
Female
F%
Nearby cash counter while waiting for payment
21
30.9
15
26.8
36
Promo area
19
27.9
28
50
47
Where promotions are too attractive in the store
28
41.2
13
23.2
41
Total
68
Table-10(Place of impulsive buying)
47
56
124
60
Male
50
Female
50
40
PERCENTAGE
41.2
30
30.9
27.9
26.8
20
23.2
10
0
Nearby cash counter
while waiting for
payment
Promo area
PLACES
Where promotions are
too attractive in the
store
Fig-10(Place of impulsive buying)
Analysis:
From the above it can be observed that 71.7% samples made impulsive buying at
promo areas and at the places where the promotions are too high inside the
store.50% of the female samples stated that they will do impulsive buying at
promo areas.
So it is necessary to concentrate on promotions to achieve impulsive buying inside
the store.
48
4.12 Perception about product arrangement
Gender
Total
Male
M%
Female
F%
Excellent
19
23.8
14
20
33
Very good
30
37.5
34
48.6
64
Good
21
26.3
5
7.1
26
Average
3
3.8
13
18.6
16
Poor
7
8.8
4
5.7
11
Total
80
70
150
Table-11 (Perception about product arrangement)
60
50
48.6
Male
PERCENTAGE
40
Female
37.5
30
20
26.3
23.8
20
18.6
10
7.1
3.8
8.8
5.7
0
Excellent
Very good
Good
Average
Poor
PERCEPTUAL FACTORS
Fig-11(Perception about product arrangement)
49
Analysis:
From the above it can be observed that 82% of the samples agreed that the
product arrangement is acceptable.18.6% female samples stated that it is poor. So
it is important to arrange and display the product properly. So proper visual
merchandising is required for better results.
4.13 Perception about change in buying decisions with the influence of display
Gender
Total
Male
M%
Female
F%
Strongly agree
17
21.3
11
15.7
28
Agree
27
33.8
31
44.3
58
Neither agree nor disagree
19
23.8
14
20
33
Disagree
12
15
10
14.3
22
Strongly disagree
5
6.3
4
5.7
9
Total
80
70
150
Table-12 (Perception about change in buying decisions with the influence of
display)
50
50
PERCENTAGE
40
30
20
Male
44.3
Female
33.8
23.8
21.3
20
15.7
10
15 14.3
6.3 5.7
0
Strongly
agree
Agree
Neither agree
nor disagree
Disagree
Strongly
disagree
PERCEPTUAL FACTORS
Fig-12 (perception about change in buying decisions with the influence of
display)
Analysis:
From the above it can be observed that 50.7% samples were agreed that visual display of
the product influenced their buying decisions.
So it is very important to improve the quality of the displays and presentation of the
product to attract more customers. This will defiantly helpful in creating an identity in
customer‟s mind about the store. So visual merchandising of the store should be attractive.
4.14 Perception about factors affecting the buying decisions
Gender
Total
Male
M%
Female
F%
Locating products through signs, graphics
74
92.5
57
81.4
131
Lighting
6
7.5
9
12.9
15
Colours
0
0
4
5.7
4
Total
80
70
Table-13 (Perception about factors affecting the buying decisions)
51
150
PERCENTAGE
100
90
80
70
60
50
40
30
20
10
0
92.5
Male
81.4
7.5
Locating products
through signs, graphics
12.9
Female
0
Lighting
5.7
Colours
FACTORS
Fig-13(Perception about factors affecting the buying decisions)
Analysis:
From the above it can be observed that 87.33% samples agreed that locating products,
signs have influenced their buying decisions.
So it is important to concentrate on product arrangement and display in the store to
improve sales.
4.15 Shopping Experience at Big Bazaar, Hubli
Gender
Total
Male
M%
Female
F%
Highly Satisfied
15
18.8
12
17.1
27
Satisfied
52
65
41
58.6
93
Neither Satisfied nor dissatisfied
11
13.8
8
11.4
19
Dissatisfied
2
2.5
6
8.6
8
Highly dissatisfied
0
0
3
4.3
3
Total
80
52
70
150
Table-15(Shopping Experience)
70
PERCENTAGE
60
65
Male
58.6
50
Female
40
30
20
10
18.8 17.1
13.8 11.4
0
Highly
Satisfied
Satisfied
2.5 8.6
0
4.3
Neither
Dissatisfied
Highly
Satisfied nor
dissatisfied
dissatisfied PERCEPTUAL FACTORS
Fig-14(Shopping Experience)
Analysis:
From the above it can be observed as 80% of the samples are satisfied with the service
offered by Big Bazaar, Hubli.
4.16 Product recall
Yes
No
Total
Male
67
13
80
Gender
M% Female F%
83.75
91.43
64
16.25
12.9
6
70
Table-16(Product recall)
53
Total
131
15
150
PERCENTAGE
100
90
80
70
60
50
40
30
20
10
0
91.43
83.75
Yes
No
16.25
12.9
Male
Female
GENDER
Fig-15(Product recall)
Analysis:
From the above it can be observed as 91.5% of the female samples are able to recall the
product, and only 84% of male samples are able to recall the product. So it is important to
attain the hundred percent attentions of the customers with product display in the store.
54
4.17 Assortment * Display influence Cross tabulation
Display influence
Strongly
Total
Neither agree
Strongly
agree
Agree
nor disagree
Disagree
disagree
Always
5
8
17
3
1
34
Mostly
9
37
10
12
4
72
Sometimes
8
8
5
4
3
28
Rarely
4
4
1
3
0
12
Never
2
1
0
0
1
4
28
58
33
22
9
150
Total
Table-16 (Assortment * Display influence Cross tabulation)
Chi-Square Tests
Pearson Chi-Square
Likelihood Ratio
Linear-by -Linear
Association
N of Valid Cases
Value
36.314a
33.974
16
16
Asy mp. Sig.
(2-sided)
.003
.005
1
.325
df
.968
150
a. 15 cells (60.0%) hav e expected count less than 5. The
minimum expected count is .24.
4.17.1 Null hypothesis:
Display of the product did not have any impact on buying decisions in the store
4.17.2 Alternate hypothesis
Buying decisions are based on the product display.
The chi-square test revealed that there is significant association between the
Product display inside the store and the buying decisions.
55
From the chi-square test output table significance level of 0.03 has been achieved.
So we can neglect the null hypothesis.
Result:
By using the above analysis I can conclude that the product display has an impact on
buying decisions inside the store.
4.18 Crosstab between Display influence and satisfaction levels of
customers:
Table-17 (Crosstab between Display influence and satisfaction levels of
customers)
56
Analysis:
From the above table it can be inferred as out of eighty male samples 83.7% people
satisfied with the shopping experience at Big Bazaar, Hubli. In that satisfaction level
56.7% changed their buying decisions with the influence of product display in the store.
Out of seventy female samples 75.7% customers satisfied with shopping experience at Big
Bazaar, Hubli. In that satisfaction level 62.2% has changed their buying decisions with the
influence of product display in the store.
From the above analysis it can be observed that the customers who are tending to change
their buying decisions with the influence of product display are satisfying with the
shopping experience at Big Bazaar. So it is important to improve the visual merchandising
at store to enhance the shopping experience of customers and to satisfy the customers.
57
CHAPTER V
FINDINGS AND CONCLUSIONS
58
5.1 FINDINGS AND CONCLUSIONS
From the Analysis of the results and based on the objectives of the study the
following findings can be ascertained:
 55 percent customers are influenced to buy more than they tend to buy, the
main reasons for that are attractive product display and good deal/offer with
the product.
 63percent of the customers came to know about the new product arrival
through the display of the product and through the discount offers.
 Out of hundred and fifty samples 74percent preferred to follow the layout
of the store to find the product.
 58percent of the samples are intended to follow the layout of the store as it
leads them.
 By effective presentation of the sign boards/drop downs and with promo
activities like melas & celebrations 60percent people came to know about
different offers in the store.
 40percent of the customers changed their buying decisions by the influence
of product arrangement and promotional signage.
 87 percent customers are able to recall the product after their shopping. So
it is stating that the visual merchandising of the store is good.
 70percent of the customers are tending to do impulsive buying nearby
promo areas and where the promotions are too high in the store.
 Out of hundred and fifty samples 57percent of customers had the
perception that the product arrangement in the store is good and it
influenced their buying decisions.
 Food Bazaar is the walk-in driver for the store with low margins and adding
value to the store.
 Fashion department is the one which is contributing significantly in both
sales and margin to the store.
59
 Walk-ins are more on Wednesday bazaar, weekends and celebrations like
birthday celebrations, big day celebrations, melas…etc
 People have good knowledge about products in Big Bazaar, Hubli.
Especially Koryo‟s small appliances, Tasty treat‟s mango juice, pure &
fresh‟s Ghee…etc
 80 percent of customers are satisfied with the shopping experience at Big
Bazaar, Hubli. They used to say that wide range of availability under the
single roof made their shopping easier and the offers they are getting in the
store are satisfying its tag line “Is se sastha aur acha kahin nahi”.
5.2 SUGGESTIONS:
Some of the suggestions given by the customers are as follows
 It is necessary to improve the product arrangement and offers to get
attention of the remaining 45percent customers.
 Customers have observed that Big Bazaar needs to improve their ambience
– with suggestions regarding improvement in lighting, fragrance in fashion
department.
5.3 ADDITIONAL SUGGESTIONS:
 The layout of the department stocking furniture should make the furniture
arrangement such that it mirrors the way the customers would arrange it at
their own homes Rotating table with different colours can be used in kids
fashion to attract and create pleasant environment in the store.
 Few customers are in the perception that some product‟s price range in Big
Bazaar, Hubli are higher than the market price; there is a need to focus on
this issue.
 Parking place for vehicles is comparatively very less; it will become a
serious problem while the store‟s walk-ins are in growth stage.
60
 It is necessary to concentrate on product display and placing banners which
tells about offers particularly on the special days like celebrations time,
melas…etc
5.3 RECOMMENDATIONS
 Setup the merchandise outside the store, this can create a sense of
excitement and buzz: consider a "Street Fair" environment, with flags and
balloons.
 Customers are in a hurry. It is better to use signage to identify not only
departments but also categories -- this will help customers pinpoint what
they need and inspire additional purchases.
 Plan on changing the displays at least weekly.
 Merchandise that moves will catch the eye, so it is better to have anything
that moves --from clocks to toys to music boxes, take one out and set it up.
 Great merchandising appeals to more than the eyes. Consider how store
sounds, smells, and even feels.
61
5.4 ON A FURTHER NOTE
It evolved out of my study that although the importance of VM is growing, there
are no real metrics for measuring its effectiveness. “There is no right or wrong as
far as retailing and Visual merchandising are concerned. There is no way to find
out what worked. It is just trying out new things. Some things work, some things
do not”
I feel that a Dosage test can be employed in this regard. When product promotions
remain constant, increasing levels of visual merchandising efforts can be
employed to see the response of customers. Periodically monitoring increase in
sales during times of dramatic VM implementations can also be a way to
determine if the VM efforts paid off.
62
CHAPTER VI
BIBLIOGRAPHY
63
Books:
 Malhotra, Naresh K. Marketing Research. New Delhi: Prentice-Hall of
India Private Limited, 2006
 Nagundkar, Rajendra. Marketing Research. New Delhi: Tata McGraw-Hill
Publishing Company Limited, 2008
 Kotler, Philip and Kevin Lane Keller. Marketing Management. New Delhi:
Prentice-Hall of India Private Limited, 2007
 Pradhan, Swapna. Retail concepts, 2006
 Clark BH, Montgomery DB. Managerial Identificationof Competitors.
Working Paper No. 98–127, Marketing Science Institute, Cambridge, MA,
1999.
 Sheikh, Arif and Kaneez Fatima. Retail Management. New Delhi:
Himalaya Publish House, 2008
 "IT Happened in India" by kishore Biyani
REFERENCES:
Loganathan, D. (2009). Indian Retail Industry – An Exploratory Study. Retrieved
March 11,2010, from retailnetworks
http://www.retailnetworks.org/index.php?option=com_content&task=view&id=14
25&Itemid=302
Arora ,V.P.S., Sharma, Shivani, and K. Singh, Nirdesh. (2007). Nature and
Functioning of Visual Merchandising in Organized Food Retailing. Retrieved
August 11, 2010, from
Ageconsearch http://ageconsearch.umn.edu/bitstream/47438/2/3-VPS-Arora
64
Electronic References: Electronic Media and URLs (2003). Retrieved August 11,
2010,
from Retail Franchise India online, Retail franchise India website:
http://retail.franchiseindia.com/articles/Retail-Store-Operations/VM-andDesign/Sensoryexperience-must-in-retail-design-163
 www.rai.net.in
 www.pantaloon.com
 www.retailyatra.com
 www.futurebazaar.com
 www.futuregroup.com
 www.Retailerslideshare.net
 www.supplychaintoday.com/info007.html
 www.scribd.com
 www.retailchoice.com
 www.theretailbulletin.com
 www.globalretailbusiness.com
 www.Wikipedia.com
65
Chapter VII
Appendices
66
APPENDIX-1
QUESTIONNAIRE
Hi! Hope you enjoyed the shopping. It would be really great if you can help me
(PGDM Student of SCMS-COCHIN) in understanding a few things that would
make shopping effective and entertaining. Please help me by filling out this
questionnaire and be a part of my Marketing Research project.
Name of the Store: Big Bazaar
Location: Hubli,
Karnataka
1. How often do you visit this store?

More than once in a week

Once a week
 Once a month
 Only on offer days (Big days, Wednesday bazaar)

Very rarely
2. How do you come to know about new product arrival in the store?
 Through Display of the product
 Through offers
 Through announcements
 By enquiring salesperson
 You will search by your own
67
3. Do the way of product arrangement & display in the store attract you?
 Always
 Mostly
 Sometimes
 Rarely
 Never
4. Generally I follow the displays and layout to find a product.
 Strongly Agree.
 Agree
 Neither agree nor disagree
 Disagree
 Strongly Disagree
5. When I enter the store....
 I go straight to the products which I want
 I walk through the store as it leads me
 I do not follow any pattern. I just walk randomly and pick up products
 I seek the help of salesperson to navigate in the store
 Others (Please specify) _______________________________
6. While shopping, how do you come to know about the offers for the day in
the store?
(Tick only one option which is most relevant)
 Sign boards/drop downs
 promo areas (Melas, Celebrations)
 Sales People
68
 Pamphlets
 Announcements in the store
7. Which of these is most relevant with regard to your shopping?
 I bought what I came to buy. Nothing More.
 I bought a little more than what I came for.
 I bought lot more than what I came for.
 I bought everything that attracted me.
 I did not find what I needed. So I did not buy anything.
8. If you have bought some products other than what you came to buy, which
of the following factors made you buy more? (Tick as many as applies)
 Attractive display of the product
 Good Product
 Information provided by salesperson
 When I see a good deal, I tend to buy more than that I intended to buy.
 No specific reason, I just bought because I liked the Product
 I did not buy anything out of list
9. Have you ever experienced instant/unplanned buying in store ?
 Yes
 No
If “yes”, which factor influenced you more to take instant/unplanned
buying decision?
 Influence Product arrangement
 Placing of the product
69
 Influence of Promotional Signage
 Excitement in trying a new product
 Influence of mannequin display
10. At which place you tend to do more impulsive buying in the store?
 Nearby cash counter while waiting for payment
 Promo area (Melas, celebrations)
 Nearby coffee bar
 Where promotions are too attractive in the store
11. What do you feel about the product arrangement in the store?
 Excellent
 very good
 Good
 Average
 Poor
12. Visual display/Presentation of products influences my buying decision in
the store.
 Strongly Agree.
 Agree
 Neither agree nor disagree
 Disagree
 Strongly Disagree
70
13. How do you feel that the following factors influence your buying decisions
in a store?
Rate the following from 1-5.
 [ ] Locating products through signs, graphics etc
 [ ] Lighting
 [ ] Music
 [ ] Fragrance
 [ ] Colours
14. Can you recall one product based on the display which was prominently
promoted in the store?
Please specify__________
15. On the whole how was your shopping experience with Big Bazaar?
 Highly satisfied
 Satisfied
 Neither satisfied nor dissatisfied
 Dissatisfied
 Highly dissatisfied
Any
suggestions
to
improve
the
store_________________________
71
display
and
visuals
in
the
Demographics
1. Name: ______________________________________________
2. Gender: Male / Female
3. Age: 10-20 / 20-30 / 30-40 / 40-50 /50 & above
4. Education:
5. Occupation: Student/ Employee /Business /any other (please specify)
_________________
6. Income range: 4k-10k / 10k-20k / 20k-30k /30k-40k/40k & above
7. Contact no:
72
APPENDIX-2
About Hubli - Dharwad
Location : The twin cities of Hubli-Dharwad are located at a distance of around
420 KM north of Bangalore, the capital of Karnataka state and 550 KM south of
Mumbai. The city of Dharwad is just east of the famous Western Ghats and is
surrounded by hills and lakes. Dharwad district (before Re-organization of 1997)
covers an area of 13738 sq. KM and with a twin city population of about 9,
00,000. The city of Dharwad is the district head quarters and twin cities (HubliDharwad) are educational and financial, industrial hub for North Karnataka
Nearest Airport: The Airport at Hubli (18 KM). There are other nearby airports
like Belgaum (80 KM), Goa (160 KM), Bangalore (420 KM) and Mumbai (550
KM). From each of above cities there are numerous luxury buses and trains.
About Hubli
Hubli is a major city of this district and is a famous
industrial town. This historic town was known as Raya
Hubli and also as Elaya Puravada Halli during the ancient
times. This city metamorphosed into an important
commercial centre for trade in cotton and iron during the
reign of the Vijaynagara empire. The city is noted for its handloom textile units
and has many cotton ginning and processing mills.
The district has some of the important monuments like the beautiful temples,
churches, mosques, and monasteries that are worth a visit. Not to be missed are the
delicious Pedas, the specialty of the district.
73
Fact Sheet - Hubli
- Area
13738 SQ Km
- Population
9,000,00
- Languages Spoken English, Hindi, Kannada & Marathi.
- Climate
Temperature 16-37 Degree C
Semiarid climate
15.21 N
75.07 E
- Airport
Available
- Railway
Hubli is well connected to Bangalore & Mumbai
by rail network. 18 trains passing through Hubli.
- Power
On par with best in Karnataka.
- Water supply
Futuristic water supply and sewage
- Telecom services
Normal connections; ISDN at the rate of 64 /128
/384/512
Kbps; Intelligent networks; Broadband connectivity;
leased lines
- Internet services
PSTN Dial up / ISDN Dial up / Leased
- Network Access
Any data rates like 2/8 /34 /140 Mbps and multiple
access from customer premises on optical fiber system
Redundancy provided by optical fibers in SDH ring
- Leased line circuits Leased circuits of 64 Kbps, 2 Mbps available from any
Location in NK to national or international
destinations
74
. 2 / 8 / 140 Mb access can be provided from the users
premises on optical fiber system
- Real Estate
Commercial cost / sq ft: 15-30 for rental, Rs 1,000 3,000 for
Purchase in Hubli city.
Housing Rent 2,500-5,000 for a two bedroom
apartment
Rs 700- 1,000/ sq.ft. for purchase of ready to occupy
apartments
- Education
72.1% literacy.
- Recreation Parks
wide open spaces in addition to facilities like clubs,
theaters, etc.
- Health Care
Fully equipped generic and specialty hospitals with
state -of-art facilities, both at Hubli and Dharwad
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