Internship Project

On

Impact of Visual Communication on Consumer Purchase Decision on Watch

Submitted

By

Manindra Nath Sinha

Under the Supervision / Guidance

Of

Dr.B.B.Jena

Submitted

to

Department of Fashion Management Studies, National Institute of Fashion Technology,

Ministry of Textiles, Government of India,
Opppsite Campus-7 KIIT University IDCO plot-24 Chandaka Industrial Estate Ph: 0674-2492997 Website: www. nift.ac.in 2012

ACKNOWLEDGEMENT

The Summer Internship at Timex Group has been a quantum leap in terms of practical savvy understanding of management concepts, sincerity, diligence, and responsibility and above all self-confidence. At first I would like to gratitude my almighty to be with me and shower his blessings to complete this project. I would like to repay thanks to my papa Mr. N.N.Sinha and my mother Mrs. Punam Sinha who always supported me emotionally and financially without their support this project could not have been completed . In particular, I would like to extend my heartfelt gratitude to Mr. Yuvraj Sikrival who gave me the opportunity to do my summer internship in Timex Group,(NOIDA) without whose facilitation and cooperation, this project would not have been so fulfilling.

At the onset, I would like to extendedmy thank to Dr. Binaya Bhusan Jena (Course Coordinator, Dept. of MFM, NIFT, Bhubaneswar) for giving me the opportunity to gain vital insights into the corporate world.

I would like to acknowledge Mr. SantoshTorai and Mrs. LipsaMohapatra faculty atDept. of MFM, NIFT, Bhubaneswar, for providing me with the required theoretical background to approach the project. I would like to pay special thanks to Miss. Puja Priya who supported and helped me a lot to complete this project. I would like to say thanks to all who knowingly or unknowingly support me to complete this project. Manindra Nath Sinha

CERTIFICATE

This is to certify that Mr. Manindra Nath Sinha has submitted the Internship report on Impact of visual communication on Consumer Purchase decision on Watch to the Department of Fashion Studies (FMS), National Institute of Fashion Technology (NIFT), Ministry of Textiles, Government of India, Bhubaneswar towards the partial fulfilment of the internship work. This particular report is his original work and has not been submitted to any other institution or university. He has duly acknowledged and given credit to the data, factual figures as well as concepts drawn from the numerous secondary sources. This work may be placed before the jury for its final evaluation.

Dr. Binaya Bhusan Jena CC- FMS Supervisor

DECLARATION

I, Manindra Nath Sinha, hereby declare that I have completed my internship project on the topic Impact of Visual Communication on consumers purchase decision on watch and submitted the same. This report is my original work and is not submitted to any other organisation or company except NIFT for educational purpose.I also declare that the data collected is from various secondary and primary sources and acknowledged by me. I have made my full efforts to complete and present the internship project successfully.

Date :- 30/7/2012 NIFT,Bhubaneswar Manindra Nath Sinha

Table of Contents Page No Introduction.. Problem Definition .. Research Objective.. Research Methodology. Chapter 1. 1- 5 6 7 7 8 - 12

Visual Communication and Introduction to in-store communication. Chapter 2.. Challenges faced by in-store communication Chapter 3.. 20 - 23 13 - 19

Visual Communication and its effect on consumer buying behavior Chapter 4.. VM manual of Timex and display analysis of its competitors
Recommendations 68 Biblography.. 69

24 - 67

Introduction

TIMEX
Timex group designs , manufactures and markets innovative timepieces and jewelry globally. Timex founded in 1854,has expanded to become Timex Group , a private held company ,with several operating unites and over 5,000 employees worldwide. One of the largest watch makers in the world ,Timex Group companies include :the Timex Business Unit(Timex, Timex Ironman, Opex, Nautica, Marc Ecko); Timex Group Luxury Watches (Valentino,Salvatro Ferragamo); Sequel (Guess, Gc); and Vertime (Versace,Versus). Founded in 1854 as the clock making subsidiary of Waterbury, CT based brass manufacturer Benedict& Burham. Waterbury Clock company was legally incorporated in 1857 as an independent business. One of the worlds top watch companies. 88Over 5,000 employees worldwide. Manufacturing and distributing in 20 contries. Watches sold in more than 100 countries.

Timex Group as the pioneer in timekeeping by harnessing the power and possibility of time . From the first clock and wristwatch we produced through data integration from classic, time honored designs through exclusive , luxury collectors pieces- Timex Group companies continue to deliver unparalleled quality to highly diverse and global customers. Milan to Hong Kong ,design sensibility and creativity inspire multiple lifestyle brands. From the hallmark everyday watches on which we built our reputation , to exclusive, high end offerings, we are equipped to meet the needs of our brand partners.

Timex Groups supply chain network produces and distributes quality timepieces and jewelry through multiple locations across the globe . An extensive network and close partnership with leading logistics service providers allow us to support the global requirements of our brands and customers.

The wide ranging capabilities of Timex Groups manufacturing and distribution are underpinned by years of experience combined with the latest innovations in performance and electronics technology . In house manufacturing includes precision watch parts and movements, assembly and distribution. Timely fulfillment of all production is ensured through extensive planning and scheduling systems augmented with the latest in process and quality controls. North Little Rock , Arkansas, USA Norwlk, Connecticut, USA Toronto, Ontario, Canada Mexico City,Mexico Northapton, UK Coventry , UK Besancon, France Vignate, Italy Chameca da Caparica, Portugal Manno, Switzerland Budapest ,Hungary Warsaw, Poland Cebu, Philippine Hong Kong, China Shenzhen , China Shanghai, China Baddi , India NOIDA , India

History of Timex:
1850s-1870s: Waterbury Clock made timekeeping affordable for working class Americans. Its inexpensive yet reliable shelf and mantel clocks, with cases designed to imitate expensive imported models, contained simple, mass-produced stamped brass movements. Waterbury Clock's products grew out of a long tradition of innovative clockmaking that developed in Connecticut's Naugatuck Valley, known during the nineteenth century as the "Switzerland of America."

1880s: Waterbury Watch, a sister company, manufactured the first inexpensive mechanical pocket watch in 1880 and quickly sold more than any other firm in the world. The "Waterbury," known for its extraordinarily long, nine-foot mainspring, was assembled by a predominantly female workforce whose dexterous fingers were prized for the close and exacting work. Waterbury pocket watches sold throughout North America and Europe, and could be found in Africa, where they were presented as gifts to native chieftains, and as far away as Japan.

1900s: By the turn of the twentieth century, the watch industry's first and most successful mass marketer, Robert H. Ingersoll, worked with Waterbury Clock to distribute the company's "Yankee" pocket watch, the first to cost just one dollar. Twenty years later, with nearly forty million sold, the "Yankee" became the world's largest seller and "the watch that made the dollar famous." Everyone carried the Yankee: from Mark Twain to miners, from farmers to factory workers, from office clerks to sales clerks.

1917: During World War I, the U.S. Army required Waterbury Clock to re-tool the Yankee pocket watch into a convenient new "wristwatch" for soldiers; after the war, returning veterans continued to wear the handy timepiece, and civilians took them up in huge numbers during the 1920s.

1930s: The popularity of a brand new cartoon character led Waterbury Clock to produce the very first Mickey Mouse clocks and watches in 1933, under an exclusive license from Walt Disney. Despite the deep shadow cast by the Great Depression, within just a few years, parents bought two million Mickey Mouse watches for their children. Originally priced at $1.50, these same watches are collector's items that today command higher and higher prices.

1940s: During World War II, the newly renamed U.S. Time Company completely converted its factories to wartime manufacturing. Over the course of the war, it turned an eighty-four year tradition of reliable mechanical timekeeping to the record-breaking production of more highquality mechanically-timed artillery and anti-aircraft fuses than any other Allied source.

1950s: U.S. Time's wartime expertise in research and development and advanced mass production techniques led to the creation of the world's first inexpensive yet utterly reliable mechanical watch movement. The new wristwatch, called the Timex, debuted in 1950. Print advertisements featured the new watch strapped to Mickey Mantle's bat, frozen in an ice cube tray, spun for seven days in a vacuum cleaner, taped to a giant lobster's claw, or wrapped around a turtle in a tank. Despite these and other extensive live torture tests, the Timex kept ticking. When John Cameron Swayze, the most authoritative newsman of his time, began extolling the Timex watch in live "torture test" commercials of the late 1950s, sales took off. Taped to the propeller of an outboard motor, tumbling over the Grand Coulee Dam, or held fist first by a diver leaping eighty-seven feet from the Acapulco cliffs, the plucky watch that "takes a licking and keeps on ticking" quickly caught the American imagination. Viewers by the thousands wrote in with their suggestions for future torture tests, like the Air Force sergeant who offered to crash a plane while wearing a Timex. By the end of the 1950s, one out of every three watches bought in the U.S. was a Timex.

1960s: The Timex brand name became a household word during the 1960s. Having completely conquered the low-priced market, the company upgraded and diversified its product line. It introduced the "Cavatina," its first women's brand in 1959 and with it, a revolutionary merchandising concept: the watch as an impulse item. For the price of one expensive watch, women could buy several Timex watches to match different occasions or ensembles. Technological advances allowed the company to offer a wide range of products, including the first low-priced electric watches for men and women, as well as several other, inexpensive jeweled models. Still another improved watch movement, introduced in 1961, served as the cornerstone for an extraordinary array of men's wristwatches.

1970s: By the mid-1970s, the renamed Timex Corporation had sold more than 500 million of these mechanical movements. At this time, every other watch bought in the U.S. was a Timex, and the brand retailed in two hundred and fifty thousand different outlets. None of these manufacturing, sales, and distribution records has ever been duplicated by another watch

manufacturer.

1980s: Alone among all domestic watchmakers, only Timex survived the brutal 1970s watch industry shakeout caused by new digital watch technology and fierce price competition from the Far East. Having gradually phased out mechanical watch production in favor of digital watches, in 1986 Timex introduced its "Ironman Triathlon," jointly devised by serious athletes and industrial designers. Within a year, the "Ironman Triathlon" became America's best-selling watch and, diversifying into a full line for men and women, became the world's largest selling sports watch, a distinction it has held throughout the 1990s.

1990s and Beyond: In the 1990s, a nearly 150 year-old Timex vigorously pursues its long tradition of technological innovation and market leadership. The company introduced the industry's first electroluminescent watch face in 1992, when the blue-green Indiglo night light appeared on some of its digital and analog watches. Today, more than 75 percent of all Timex watches are equipped with the Indiglo night light. The All-Day Indiglo display, using a hologram-like material, provides greater contrast between digital numbers and the display background. In 1994, Timex introduced the Data Link watch, a sophisticated wrist instrument that carries scheduling, phone numbers, and other personal information, having collaborated with Microsoft to create the necessary software to communicate the data from computer to watch. In 1998, Timex pioneered its i-Control turn n pull analog alarm watch and, in a joint venture with Motorola, a new wrist pager called Beepwear.

Timex embraces the new millenium with high brand confidence and a strong global workforce. Annual surveys consistently rank Timex as number one out of fifty fashion brands in jewelry and accessories and the third most popular of all women's accessory brands. Seventy-five hundred employees are located on four continents: in Middlebury (next door to Waterbury), Connecticut; Little Rock, Arkansas; Manaus, Brazil; Besancon, France; Pforzheim, Germany; Cebu, the Philippines; People's Republic of China; Jerusalem, Israel; and Delhi, India.

Problem Definition

Most of the customers take their buying decision through visual communication of the stores, the problem centered in this study is to measure the extent to which visual communication affects the customers choice decisions.

Research Objective

To influence customer buying behavior. To motivate them to make unplanned purchases. To provide them with a satisfying shopping experience.

Research Methodology Primary data Secondary data Books and internet

Chapter 1
Visual Communication and Introduction to in-store communication.

Visual Communication

Store window displays are regarded as a key instrument of a retailers communication and visual merchandising strategy . They are an integral part of a consumers surrounding during his/her shopping experience and therefore have an impact on consumer behaviour in retail settings. Window displays serve two main purposes: to identify the store and its product (e.g. promotion, merchandise and fashion), and to induce consumers to have shopping attitudes .

Introduction to In-store Communication

A successful retailing business requires that a distinct and consistent image be created in the customers 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 stores 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. It is second only to effective customer relations. 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.

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 stores overall atmosphere. 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 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 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 stores overall theme. Creating and maintaining a stores visual merchandising plan, however, is not a simple task. It is necessary to continually determine what the customer sees.

This evaluation from the customers perspective should start on the exterior and work completely through the interior of the store.

EXTERIOR PRESENTATION

The quality of a store front is a major determinant for a customer, particularly a new customer, and should not be underestimated. The exterior appearance of one store, a block of businesses or a cluster, silently announce what customers can expect inside. Good exterior visual merchandising attracts attention, creates interest and invites the customer into the business. The exterior presentation can offer a conservative, progressive, lavish or discount image to the customer. How a store visually welcomes customers has a lot to do with whether or not they enter the store. Although good prices and positive word-of-mouth advertising is important, it is hard to overcome the negative image of a poor store exterior. When examining a stores exterior, consider the following questions: How do customers locate the business? Are the sidewalks clean, safe and accessible? Are the exterior signs clean, fresh and readable? Does the store front need cleaning, painting or touchup? Are the outside entrances clean and accessible? Are the windows clean, bright and inviting? Are the window display preparation materials such as tape, pins and packaging materials removed? Are the window displays frequently changed? Do the window displays carry a theme?

Exterior Signs
A sign is a silent salesperson, and part of a shoppers first impression of a store. In less than 10 seconds the sign must attract attention, tell who the business is and what it has to sell. An effective sign will communicate what type of business is being conducted. Off-premise signs provide information and direction, especially for travelers and new residents. Signs can also

help effectively communicate a poor location. A stores sign is its signature. It is personal, original and continuously recognizable to the public. It should create an image that is consistently carried throughout the remainder of the store and its business actions.

WINDOW DISPLAYS

Special emphasis should be placed on a stores window displays because they are the information link to the potential customer. Window displays can be as important, if not more important, than advertising. Window displays should attract attention, create interest and invite people into the store to purchase goods. There is less than 11 seconds to accomplish this, as that is the average amount of time an individual will spend looking at a window display. Be careful not to crowd too much merchandise into a window, as customers find it difficult to determine the message and what items are being promoted. Shoppers also lose interest when the same window display is left up too long. It is especially important to frequently change window displays in small towns where customers pass by several times a week. New displays indicate that new, upto-date merchandise is available. In malls and larger towns, customers pass by less frequently. Properly lighted window displays can help sell specific products or ideas that promote a stores image. Window lights should be strong enough to overcome the reflections from outside objects, such as parked cars and buildings. At night, additional lights on overhead marquees and projecting cornices can make the window area look larger. Closed-back windows require a high level of general illumination. Massed window displays are often lighted with overhead fluorescents which are supplemented by closely spaced clear incandescent lamps. Use miniature portable spotlights to accent small display areas, price cards and specific items in a massed display. Compact footlights help relieve shadows near the bottom of vertical displays.

As many as one in every four sales could be the result of a good window display.

Window displays are more successful when a dominate theme is carried throughout the display, regardless of whether the featured products are fashion-oriented, institutional or promotional in nature. Suggested window treatments that have proven successful include: A single object against seamless paper. Merchandise displayed as it would be utilized in a realistic setting. A theatrical setting using fantasy and drama. Straight merchandise glamorized with props. Animation, such as in holiday windows, that draws crowds of shoppers. The use of sculpture, paintings or art objects for a touch of class. Media tie-ins, with current area activities, films, stars or bestselling books. Window displays should be in harmony with the entire surroundings; a whole is being created rather than a fragment. When planning a window display consider the building facade, street, people and their perceptions, color harmony, lighting and viewing angle.

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. One proven way to do this is through interior displays that effectively show merchandise to the customer. When planning interior displays, remember 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.

Promotion and advertising dollars are less effective or even wasted when efforts are not made within the store to effectively merchandise the products. Well-designed displays and in-store promotions are essential 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 consumers purchase decisions more than advertising used where the sale is actually madethe point of purchase. As an illustration, researchers found that 64.8 percent of all purchase decisions were made inside a supermarket. This included impulse purchases 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. A National Retail Hardware Association survey indicated that 48 percent of all hardware customers purchased one or more items on impulse. Sixty-seven percent of items purchased in liquor stores are impulse items. 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, color, lighting and harmony. These principles apply to all displayswindow and interior.

COLOR
Color contributes significantly to peoples impression of a display, as well as a stores overall appearance. Color in a display can catch the eye and make people pause and look. The color combinations of the ceiling, walls, floor covering and the overall decor can affect the atmosphere of a store. Changing the color scheme can change peoples attitudes and perceptions of a store, and can increase (or decrease) business. Color can change the shape and add interest to a dull room, and can direct attention toward a specific object or away from problem areas. Warm colors (red, yellow, orange and colors with red or yellow hues such as yellow-green, beige, peach, brown and orange-red) are stimulating and cheery. They make a room feel warm and intimate. Warm colors make a room seem smaller while making objects in the room appear larger. A warm color on the end walls of a long narrow room will appear to shorten the room. Blue, green, violet and colors containing blue, such as blue-green and violet-blue, are cool colors. These help create a relaxing atmosphere. Rooms decorated primarily in cool colors tend to appear larger and more spacious. Cool colors are especially pleasing in smaller rooms. A color wheel is a handy tool to use in developing a color scheme for a store.

Chapter 2
Challenges faced by in-store communication

CHALLENGES FACED BY IN STORE COMMUNICATION

Many errors made in display can be easily avoided. Some of the most common errors include the following:

Too Much Merchandise

There is no rule that specifically states how much merchandise should appear in a display area. One consideration is the price of the merchandise. The more expensive the item, the fewer displayed. Caution must be exercised so that a display area does not: (a) appear crammed with many similar items, (b) have so many different items that any selling message is lost and (c) appear aesthetically offensive to the viewer.

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. Generally, the reason for lack of merchandise in a display is that the merchandise has been sold out of the display and has not been replaced. If the items needed for the display are unavailable, the dimensions of the display area need to be reduced to make it appear in proportion with the available merchandise. Poor planning of what merchandise is to be placed in a display may also cause a display to appear empty.

Lack of Underlying Theme

Merchandise is often placed in a space with no selling message, theme or motif. Regardless of the type of merchandise used, the location or the store type, a display needs to have a strong message or underlying theme. The consumer should be able to understand the concept presented

by the display in a few seconds. The reverse problem is using too many mini themes in a display, making each one completely ineffective. It is possible to effectively combine several types of merchandise in one area using one theme. An example would be various gift items, such as toiletries, glassware, smoking equipment and accessories, shown together with a sign reading Imports or Gifts from Overseas. The signage brings all the goods into the gift classification and it makes sense to the viewer.

Too Many Props

There is no specific rule that stipulates the number of props appearing in a display. However, the error of over propping a display can be more serious than using too few props. The type and number of props are dependent on the merchandise. The display of a living room suite will need fewer props to complete its message. Other goods, especially smaller items, will need more props to elevate it to eye level or provide a central theme to the grouping.

Poorly Selected Props

Evaluate props as to whether they are seasonal, rustic, contemporary, feminine or masculine, and whether or not they will appeal to the stores target market. Props are important to effectively present a display with a theme. Therefore, the props must be in harmony with the goods shown. For example, a green velvet backdrop will not be effective in a display promoting summer merchandise.

Displays Changed Too Seldom

Guidelines for developing displays have been discussed. Utilization of the visual merchandising techniques discussed can assist review and/or change of displays. 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 Christmas display. The expense, time and planning of a display is also used as a

guideline for frequency of change. Special windows and internal store promotions have a longer display life. However, no display or set of props should remain until it collects dust and every person in the community has seen it a number of times. Frequently changing displays presents a positive message to the community, provides opportunity to show more merchandise and presents more messages to the shopper.

Length of Time Necessary to Change a Display is Too Long

An empty display area is a time of no sales. Plan display work so that all of the necessary equipment and merchandise is gathered prior to tearing down the old display. Change the display when there is the least amount of customer traffic.

Limited or No Display Budget

Money is a problem for everyone in and out of retailing. Display areas are often budgeted with whats left over after all other monetary needs have been planned. Frequently that boils down to no budget for displays. Avoid the low-budget look by using such things as crepe paper, tissue paper, construction paper or perishable, but generally free, items like grass, weeds, logs, branches and other things provided by nature. Do not use too many poster board signs.

Creativity is needed to plan and execute a great display with no budget. Good theme development without expensive background materials is possible. An example of this for a bed and bath shop might be towels hung on a clothesline to serve as a backdrop for a towel display, rather than going to the expense of tiling a wall. Old packing crates or orange crates with scrap wood from a lumber yard can be used to design an interesting display that raises the merchandise to eye level. Attic treasures or various pieces of furniture are frequently used as display props. These items can often be inexpensive or borrowed for the duration of the display.

Lack of Attention to Detail

Making a good impression is very important. One of the best ways to do this in display work is to pay attention to the small details. This is generally the first thing the customer notices. Below is a list of things that should be taken care of prior to declaring the display finished: Remove pins or hide them so they do not show.

 Clean and dust all surfaces. Clean glass. Be sure signs provide all the necessary information. Be certain signs are free of ink stains and are not soiled. Use some form of border on all signs. Be certain any merchandise suspended from the walls or ceilings will stay fixed for the duration of the display. Appropriately accessorize merchandise. Remove all display tools from the display area. Clean and/or vacuum display area floor coverings. Hide lights used in the display area so they are not seen by the customers. Be very careful that nothing is near or touching display lights to prevent fire. Always check the display area from all angles to be sure all merchandise is easily visible and aesthetically pleasing. Check displays daily to be certain everything is still in its proper place.

Mistakes in Applying the Principles of Display

Carefully follow the principles of design used in display work when planning and executing a display. The four principles most frequently mishandled include emphasis, balance, rhythm and proportion. Review these principles each time a display is completed to be sure none have been misused. Every display needs a point at which the viewers eye can easily start. All too frequently a display either has no definite point of emphasis or the point of emphasis is in the wrong place, such as in the upper right-hand corner. Balance needs careful consideration. A display that utilizes neither formal nor informal balance by merely being too full or too empty on one or both sides, will decrease the effectiveness of the display. The principle of rhythm is frequently violated when many small items are displayed in a single area with no attempt made to keep the eye following a planned pattern. This creates a scattered and spotty display. Try to plan a display in which all items are visually tied together.

When props and merchandise are not tied together by size or weight, the principle of proportion is absent. Do not show small items with large items unless a continuous graduation of size from small to large is used.

The amount of merchandise on fixtures psychologically affects the shopper. A few fully stocked fixtures are better than many partially filled fixtures. When a fixture is sparsely stocked, it looks as if what remains are leftovers and, therefore, less desirable or salable.

When considering presentation of merchandise from the front to the back of the store, use consumer psychology. A stair step effect is necessary for the customer to see from the front to the back of the store. Use the lowest fixtures in the front of the store, with the back wall being the highest merchandise area. The basic idea is to make the back wall visible from the aisle or front of the store.

Stocking the back wall is as important as stocking done in the front of the store. The back wall will often be flooded with light to add even more emphasis to the area. This has the effect of drawing the customer through the whole store.

The back wall is best used to create an impact for the classification of merchandise contained within that area of the store. The walls, whether they are used for hanging, shelving, binning or a combination of these, are also treated in the light to dark, small to large, left to right manner of merchandising.

Ideally, the back wall should be broken into organized groups or color patterns to stimulate the customer, please the viewers eye and alleviate the uniformity which tends to be boring to the viewers. This can be accomplished by raising or lowering hang-rods, using display shelves, and/or adding bins to the wall area to create more interest.

Chapter 3
Visual Communication and its effect on consumer buying behavior

IN STORE COMMUNICATION INFLUENCE ON RETAIL

Retailing itself has transformed the way business is done and the so called merchandisers of disposition of store inventory. There are many ways and standard procedures to ignite sales, increase profits and maximize the net worth of the business. Visual merchandising helps in this respect. This calls for a concerted industry effort to approximately value the importance of quality retail coverage such as self-integrity in store advertising, price verification, stock rotations, new item-cut and other related activities. To make effective the retail business one has to focus on the following critical issues of visual merchandising.

a. Graphics and signage: Attention grabbing yet clear graphics by way to visually communicate the brand and these graphics when compiled with the right signage become the stalls complete instruction manual.

b. Trends and moot boards: This is misunderstood by many as mere decorations for the stall. The brand sources and moot boards convey the source, in fact the mere need of the product for the consumer to the buyer. A good trend story board display can exhibit a thought process nursing for the inspirations (research), to swatch development of the final usage of the product.

c. Space management: Most displays concentrate on the floor management of space. In order to create a complete desired ambience the ceiling space should also be given enough attention. Walls are not elastic space should be allocated to the available products as per the expectation of the customers to deliver best results. The major issues of space management are: How do we want our ranges to look? Hanging/stocked/customers etc. What stock density do you want to achieve?

Generally, the more options/units you can hold for a given amount of space, the higher the potential returns. Space landing systems can be split into two types.

d. Numeric and visuals: Numeric planning system simply allows users to account of space available and to calculate the ratios like returns on space. Visual systems allow users to create three dimensional walk through models of the stores and to preview the look of a store once ranging decisions have been made.

e. Dresiforms and mannequins: The dresiforms communicate the 3 dimensional form of the product. Along with the fit a good mannequin can also be customized to communicate characters, for example, special kids wear mannequins with caricatured faces convey the playful mood of the collections.

f. Synergy among the different stalls: A stall look should complement the mood the whole fair too; be it a color scheme or some material used should also be incorporated in the stall.

g. Out of the box thinking: With so many stalls around, it sometimes focus some stock value to grab the attention of the buyers. Innovative ideas in displaying the mannequins, swatches etc can invite many more people to the stall.

h. Merchandise planning: The first function of merchandising planning is making a strategic plan, which is normally for five years or more and is used to set the critical success factors for merchandising in terms of sales, margins and stocks. In other words, merchandising planning is a systematic approach and aiming at maximizing return on investment, through planning sales and inventory in order to increase profitability.

i. Range planning: Begin with assortment plan. In assortment plan, the goal of merchandise plan are divided into specific lines in such a way that the division results in the increase of overall marginal mix. Then a distributions planning is done. The link between available physical space and ranging done here is a key determinant of merchandising performance.

Visual Communication and its effect on consumer buying behavior

Factors affecting consumer buying behaviour

Why do we need to learn about consumer buying behaviour? The simple answer is that no longer can we take the customers for granted. Consumer buying behaviour determines how our consumers decide to buy our product and what are the various factors responsible for this decision? Out of 11000 new products introduced by 77 companies, only 56% are present after 5 years. Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that 83% failed to meet marketing objectives. What we need to understand here is why consumers make the purchases that they make, what factors influence consumer purchases and changing factors in our society The central focus of marketing is the consumer. To devise good marketing plans, it is necessary to examine consumer behavioural attributes and needs, lifestyles, and purchase processes and then make proper marketing-mix decisions. The study of Consumer behaviour includes the study of what they buy, why they buy, how they buy, when they buy, from where they buy, and how often they buy. An open-minded consumer-oriented approach is imperative in todays diverse global marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay ahead of competitors. Final consumers purchase for personal, family, or household use.

Major Factors affecting consumer buying behaviour

Cultural factors affecting consumer buying behaviour: Cultural factors have a significant impact on customer behaviour. Culture is the most basic cause of a persons wants and

behaviour. Growing up, children learn basic values, perception and wants from the family and other important groups. Marketers are always trying to spot cultural shifts which might point to new products that might be wanted by customers or to increased demand. Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behaviour. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below.

1. Cultural Factors
Consumer behaviour is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. Culture

Basically, culture is the part of every society and is the important cause of person wants and behaviour. The influence of culture on buying behaviour varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. Subculture

Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group. Social Class

Every society possesses some form of social class which is important to the marketers because the buying behaviour of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc.

2. Psychological Factors
There are four important psychological factors affecting the consumer buying behaviour. These are: perception, motivation, learning, beliefs and attitudes. Motivation

The level of motivation also affects the buying behaviour of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs. Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behaviour therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard.

Chapter 4
VM manual of Timex and display analysis of its competitors

Visual Communication and its impact on consumer behaviour

Visual Communication
communication through visual aid or display and is described as the conveyance of ideas and information in forms that can be read or looked upon. Visual attracts the customers most and it is the first stage which arises customers stimuli first and introduce about the product. Today shopping is not just shopping it is a kind of experience which customers want to have when they enter into the outlet it is just because of visual merchandising unknowingly they spent more and more time, here visual merchandising might contain light, display, aroma, music etc of the store and it creates impulse buying and increase sales of the store so visual communication repays a great role in the retail industry.

Visual communication attracts the customers a lot but there are some factors which also effect the consumers decision process so a visual merchandiser should also consider these factors while making display for the brand promotion , to make aware of the particular product of the brand. Consumer buys due to stimuli. Consumer feels the product or service is best suited for his need. Consumer feels the product or service is only option available to meet her aspiration & life style . Consumer consistently demands value from the products & services .

I choose TIMEX GROUP for this particular project Visual Communication and its impact on consumer behaviour

Visual communication might be differ from company to company as Timex is the watch brand company so visual communication is quite different from any other apparel outlets or other watch brand outlets . Timex has its own VM manual which is followed by its store The Time Factory

Introduction to VM manual of Timex

This manual helps you maximize the potential of all Timex incase and window displays. Well executed merchandising creates consumers desire for Timex merchandising.

Benefits :-

The consumer - Product ranges appear more attractive and are easier to navigate. The Retailer Helps drive higher sales and make an attractive store environment. The Brand
Global brand awareness established and reinforced through the consistent

presentation of Timex Products.

Guidelines Do make sure that displays are undamaged and clean ,wipe if it is necessary. If there is any damaged to your display, please contact your local Timex representative to receive a replacement piece. Do position Timex displays in optimum locations- be aware of prime locations and dead spots for merchandising your Timex display.

What are prime in- store position?

Front window display. Near the front of the store. On main aisles. At eye level

What are in-store dead spots?

Odd corners Bottom shelving and not clearly visible. Left or right of immediate entrance Shelving facing away from entrance Behind columns Areas with bad lighting

After merchandising product , do save the box(es) and instruction booklet(s).

Merchandising Dos and Dont

Merchandising Dos
Do ensure hero stories are prominently displayed by incorporating merchandising pieces such as watch blocks, platforms ,watch ramps, or bracelet bars. Hero stories are defined as new products or key best sellers .

 Do group products by collection, size/gender, and then by attachment type.

Do position the products in a slightly staggered formation where appropriate to ensure all watches are visible and to avoid the display appearing too cluttered .

 Do position all watches so that they are facing at the same optimal angle to ensure visibility to the customers.

If incorporating Youth/Marathon products put towards the back of the display.

Merchandising Dont

Dont mix style , sport, Expedition, and Youth products. Dont have watches blocking or in front of other watches.

Dont overcrowd the display. Dont place watches facing inwards. Dont have watches touching other watches. Dont have watches not grouped by collection.

Dont use inconsistent brand assets.(show cards or feature cards should correspond to the brand and product being merchandised. Dont block product with brand assets, ie. Show cards or feature cards.

Timex displays its watches in four categories

Style

 Fashion

Technology

Sports & outdoor

Basic Guidelines to display Timex Watches

Colour

Colour which we use to display all the four category is black, red, gray and yellow. Black colour we use to display for the fashion, red colour for style, yellow for technology and gray for sport & outdoor categories.

SPORT & OUTDOOR

TECHNOLOGY

Display Strategy and its components

Fashion

The finest collection crafted with elaborate details and laced with memorable features, makes you enjoy the priceless moments with twinkle and glamour to induce all your memorable experience .

Display strategy For wall display

Black grooved tray with grooved bridge.

For counter display

Black grooved tray with grooved bridge and white holed tray.

Black Cubes

Only

black

cube

to

be

used

on

both

wall

trays

and

counter

display

Display Strategy

Category Display Family display within the category

Category Display

Family display within the category

Mood window display

Category Header with acrylic slider stand

Black Display cube to be used only for Fashion as a category Triblock Hero Block to be used in a Mood Window, Family Display, Brand wall Display.

Style

Enjoy the priceless moments in life when beauty is not just spectacular but overpowering . This series is for those who like making an impact with their irresistible presence.

Display Strategy
For wall Display

White grooved tray with white grooved bridge

For Counter Display

White grooved tray with white grooved bridge and white holed tray . white tray must have red band on it.

Red Cubes

Only red cubes to used on both wall trays and counter display.

Category Display

Family Display with the category

Category Display

Mood window Display

Family Display Within the category

Sports & Out Door

This Timex series is an audacious bland of sports inspired looks and performance with finest materials and details. It takes the premise of classic analogue sports watch styling and skilfully embodies the elegance .

Display Strategy
For Wall Display

White grooved tray with white grooved bridge

For Counter Display

White grooved tray with white holed tray. White tray must have gray band on it.

Cubes

Only gray cubes to be used on both wall trays and counter display.

Technology

Display Strategy

For Wall Display

White grooved tray with white grooved bridge.

For Counter Display

White grooved tray with white grooved bridge and white holed tray. White tray must have yellow band on it.

Yellow Cubes

Only yellow cubes to be used in wall trays and counter display.

Visual Communication in different stores

Ambiance Mall Gurgaon Stores :- Titan Reliance Timeout Kapoor Watch Co Johnson Debenhams

Titan

Raga Bridal were Collection

For visual communication they used role of golden wires and give ethnic background it creates mood of marriage ceremony and customer who comes to purchase watch for that particular occasion once see

the collection and feel ease to choose the right watch for the occasion.

Gold Collection

In this collection they put one original gold biscuit in the counter which shows that it is genuine gold watch they also put golden net and cushion in the counter which gives this collection stylish and luxury look . Their purpose to make this short of VM (visual merchandising )is to attract those customers who want to use watch as a jewellery.

TITAN COUNTER DISPLAY

They filled the counter without using maximum watches and it gives soothing effect to the counter as well as customers, watches are kept in different angle which shows beauty of the watches and gives a different arrangement or way to keep watches in the counter. They are giving discount on some of the watches it attracts customer and once a customers come to the counter they might choose non discount watches .

TITAN (Classic Collection)

This is the classic collection which is supposed to keep in the store for whole year . They dont put more attention over this display because this is a kind of slow moving goods and here they have given discount on more watches compare to other segment so here the motive of the company is not to attract more and more customer but at the same time they dont want to lose those customers who want to have those watches.

TITAN RAGA COLLECTION (FEMALE)

This is Titan Raga Classic Collection for female here they used violate background .To attract the customers to see this collection they highlighted one feminine watch in the counter.

Window Display of TITAN

Window display is very clear and speak about the store ,it is attractive .

Store Visibility of TITAN

Store visibility is very good far from the store it is easily visible .

Reliance Time Out

CASIO

Techno and fashionable watches have been kept in the same counter but its display is different and balanced Black watch kit and ball bearing have been used for display.

Kids watches

Kids watches have been displayed in cubic display kit which has been kept in the middle of the watch segment. It is visible far from that segment.

SHEEN

Very shiny and feminine look have been given to this display using crystal ,shiny silver net .

Debenhams

DKNY

Lots of small paper write up have been used for display.

Debenhams(ESPRIT)

Proper display of watches.

Kapoor Watch Co(GC)

Selective watches display with different watch kits.

Kapoor Watch Co.

Window display of Omega watch Two advertised watches have been kept on the table and behind the watches a big visual has been kept for this window display, this display is giving the look of exhibition and luxury .

MGF Mall Gurgaon

Store SS
MGF mall gurgaon
I visited MGF mall Gurgaon to know or experience more about visual communication done by different watch stores. Here i met different people who were related to visual communication or accountable for that.

GUESS

Feedback
Display through banner which attracts the customers first , promotional display is done inside the counter and the watch is highlighted which has been advertised. Discount offer also attracts the customers a lot so discount offer is put in a manner that maximum discount is written in a big font and up to that discount is written in a small font so customer first see the maximum discount and come to the counter to have a look and if the watch he likes has less discount then others he buys the watch because it is the watch of his choice. Display is done season wise /occasion wise. Bikash (Sales executive GUESSFOSSIL

VM does the display according to the category so the customer can choose same category watch easily. VM also does the display according to the shop so in store there is no empty which shows to the customer even in the counter we use the same strategy for the DKNY watch we arrange it in 3-2-2manner and for FOSSIL we arrange it in 1-2-1 or 2-1-2 manner. We do this type of arrangement because consumer could feel they have more and more choices in the same category . Brand is bigger than VM because the brand conscious consumers come in the store to purchase the watch to which watch brand they are inclined, it happens in the premium segment of watches but it does not mean that this segment of watches does not need any VM. We change VM in Monday or Tuesday ,some times weekly or in fifteen days . - Vasu (FOSSIL)

CITIZEN

VM attracts the consumers more and it creates impulse buying, It makes you aware about the brand and category of watches . We make counter display of the watches according to the features of watches . Arrangement of watches is also changed according to the time . - Irshad Ahmad

Market Visit

GIP Mall NOIDA Sec 18 Sai Creation NOIDA Sec 18

SEIKO

Football has been used to create sporty effect

CITIZEN

Tray is very attractive they used round shape tray on rectangular tray.

White cubes are put back of the tray which gives maximum visibility to the watches.

Watches have been displayed through cubes display could have been better if they have used minimum cubes with tray.

Red cubes should have been used, instead of white cubes, because red cubes are used to display style segment of watches of TIMEX. Here watches have not been kept according to VM manual of TIMEX.

CASIO

Upper segment of watches are not clearly visible, it has been kept at the maximum height so a customer cant see the watch first.

GIP Mall
Titan In every back wall display they have put pictures of watches. Proper display Store window display is very attractive. They didnt keep too much or too less merchandise. Lighting is very good inside the store

CASIO

They put one small LCD for displaying advertisement, and watches inside the counter. Display made through related props of the categorized watches, like stone, rope, wood, clip Advertised watches were highlighted inside the counter.

HELIOS

Very attractive window display they have made through bottles. It catches the attention of customers to see the display where they have also kept very good and attractive advertised watches .

Recommendations

We are producing innovative watches with various designs and models, but there are some points on which we can consider In MBO we are putting too much merchandise ,it creates messy looks and customer thinks those watches might be cheaper, and switch to another brand. Consumers get confused to choose the watch and we will have to change the dogmatic theory that Indian customers need more and more product to choose one but during my project I came to know they need more product but in aesthetic manner. Need to touch emotional aspect of the customers. We are not making any visuals which touch the emotional aspect of the consumers like Titan is making a display Bandhan for the occasion of rakshabandhan, so we can also create such a display which is related to the specious occasions. Need to create awareness to the Customers through billboards ,posters etc Some TTF stores are using old counters and trays it creates wrong image to the customers mindset. Customers think about the brand that this might be the brand which doesnt keep the latest product so while doing VM we should change this thing first.

Bibliography

History of Timex Optimising Brand performance Using In-store Communication (Minor Project by Sinha Manindra Nath) www.timexindia.com VM manual of timex