EXECUTIVE SUMMARY

Marketing products using visual merchandising system is an age-old practice but with growing
growth of retail industry, the art or arguably the science of Visual Merchandising has
gone to occupy a newfound fancy. There is a growing recognition of the need for an effective
Visual Merchandising. But even as it continues to grow, the understanding of Visual
Merchandising impact and effectiveness is still in its infancy. The shopping behaviour which
governs the decision to buy is a function of three stimuli viz., visual, auditory and kinaesthetic;
the visual stimulus is the easiest and most widely used tool for attracting customers.

This project deals with components of visual merchandising, and a comparative analysis of six
retail lifestyle stores in Bangalore. The comparison has been made taking into account the
components of visual merchandising and rating each store on each of these components.

The methodology followed is questionnaire method with a total sample size of 150
respondents, 25 respondents from each store namely Lifestyle, Bangalore Central, Shoppers
Stop, Globus, Westside and Pantaloons. The data is tabulated and graphically represented through
histograms, pie-charts, line graphs etc. Findings and recommendations are listed at the end of this
project.
 RETAILING

Retailing consists of those business activities involved in the sales of goods and services to
consumers for their personal, family or household use. The field of retailing is both
fascinating and complex. It has enormous impact on the economy, in distribution, and its
relationship with companies that see goods and services to retailers for their resale or use.

Retailing is the final stage in the distribution process, it does not necessary have to include a
retailer. Manufacturers, importers , non-pro fit firms , and wholesalers ,and other
organization are also considered as retailers when they sell goods and/or services to final
consumers. Competition in the retailing scene has intensified manifold for the past few
decades, generally as a consequence of new technologies, more sophisticated management
practices and industry consolidation. These trends have been especially pronounced in the
food industry.

There has been a significant amount of studies that examine the issues of retail channel
management and retail marketing strategies to tackle the fierce competition in existing retail
channels in food industry. As in all other industries, the ultimate decider of the eventual
success of an alternative retail channel is the CONSUMER.

Consumers refer to individuals who buy products and services for themselves or on behalf
on their households. They are invariably either users of these products or services or
responsible for the welfare and well being of those who are. Since consumers are extremely
crucial for retailers, an understanding of consumer behavior is an essential prerequisite of
successful retail marketing strategy and one of the most fundamental principles of in exerting
influence on consumer patronage decision process. Without customer focus, marketing
planning can easily be dominated by the actions of competitors or internal influences. The
success of a retailer depends on how well he/she selects, identifies and understands his
customers.
The feasibility of new retail channels is also highly dependent on retailers’ ability to select
the type of consumer segments to reach (mass markets, market segment, or multiple
segments), to identify the characteristics and needs of the specific target market and
understanding how consumers make decisions. According to Peter McGoldrick , the most
successful examples of innovation and evolution in retail formats are retailers that respond
accurately and profitably to previously unsatisfied needs.

TYPES OF RETAIL OUTLETS

The emergence of new sectors has been accompanied by changes in existing formats as well
as the beginning of new formats:

Hyper marts, typically 8,000 sq.ft and more

Large supermarkets, typically 3,500-5,000 sq. ft.
Mini supermarkets, typically 1,000-2,000 sq. ft.
Convenience stores, typically 750-1,000sq. ft.
Discount/shopping list grocery
 THE INDIAN RETAIL INDUSTRY

Estimates of the size of the retail sector vary. The Confederation of Indian
Industry (CII) estimates that the total market in 2002 was between US$180 billion
and US$200 billion. ICICI, an Indian bank, used wider cr iteria to estimate the
market at US$292 billion in 2003; the Economist Intelligence Unit (EIU) estimates the
market in the same year to have totalled US$284 billion. The majority of the retail market
continues to be unorganized. At present the organized sector accounts for only 2 to 4 percent of
the total market, although the EIU forecasts that on current trends that will rise to between 20 and
25 percent by 2011. The level of retail sales per head remains one of the lowest in Asia.
For retailers, a critical issue is how fast and how far the consuming class will grow. This
depends both on the growth of personal disposable income, and the extent to which retailers
succeed in reaching lower down the income scale to reach potential consumers towards the bottom
of the consumer pyramid. This is a challenge that admits no easy solution, say companies.
There is no point in going to a destitute person and saying, here, I’ve got an aftershave lotion for
you, says a senior manager at a leading consumer product company.

You have got to find a relevant product, a needful product. The consumer market remains
remarkably undeveloped. Consumer goods penetration is very low compared to other emerging
economies, and consumer markets have the potential to grow rapidly in the coming decade.

According to a leading company that profiles household spending throughout

Asia, India still has a relatively narrow middle class, reflecting a lower proportion
of urban households compared to some Asian countries. It is estimated that around
70 percent of Indians live in the countryside, compared to around 60 percent of Chinese.

Indian consumers do not follow the consumption patterns seen in other Asian countries. As
Indians have grown richer, they have begun to spend more on vehicles, phones and eating out
in restaurants, according to recent research on consumption patterns. Indians discretionary
spending is focused outside the home; unlike other Asian consumers, they have tended not to
greatly increase their spending on clothes, personal care and household goods.

Consumption is moving out of the home, says a consumer goods producer. It’s
moving into lifestyle products, eating out, events, entertainment. And that is going
to continue. India is also unusual in its patterns of urbanization. The population
of cities has been rising in absolute terms and relative to rural population but at a
rather slow rate, unlike other Asian economies. By 2001, 28 percent of Indians
were living in towns, compared to 39 percent of Chinese and 83 percent of South
Koreans.

Some smaller Indian towns are actually shrinking as Indians congregate

increasingly in larger towns, which now account for more than three-quarters of
the urban population. India’s demographic advantage Increases in wealth,
improvements in life expectancy and increased access to birth control are reducing
fertility rates worldwide. The reduction is most marked in developing countries:
the World Bank’s population data shows that since the 1970s medical care and
birth control have dramatically reduced the number of children born per couple,
and dramatically increased the proportion of citizens living past retirement age.

India, however, is one of the handfuls of countries where the proportion of citizens
of working age is forecast to fall only slowly, and the overall labour force is
growing. A growing labour force both enables higher growth rates and creates an
Urgent political need for growth: according to the Asian Development Bank India will need to
achieve around eight percent average annual growth over the next two decades to create
employment for all new entrants to the workforce.

India’s forecast lower age dependency ratio over the next half-century means that public finances
will come under less strain than in most other countries, making infrastructural investment
easier and allowing the economy to continue growing well above the global trend.

According to the National Council of Applied Economic Research (NCAER), this

pro-growth demographic factor will be an important contributor to the expansion
of consumer markets in India. The NCAER forecasts that the number of
consumers driving growth will grow from 46 million households in 2003 to 124
million households in 2012, which will further drive increased volume in
consumer markets, while increased value will be driven by the fact that consumers are
predominantly young: 54 percent of Indians are under 25 years of age.

For their part companies repeatedly point to the demographic outlook as the most
positive factor in the long-term growth forecast for consumer markets. Policy is
positive at the moment, but demographics are a very important factor, says a
senior manager at a leading consumer product company. Who knows, tomorrow
we may have a communist government, but demographics is something the
government can’t do anything about, so that is a guaranteed positive.

India has sometimes been called a nation of shopkeepers. This epithet has its roots in the huge
number of retail enterprises in India, which totalled over 12 million in 2003. About 78% of these
are small family businesses utilising only household labour. India's retail sector appears
underdeveloped not only by the standards of industrialized countries but also in comparison
with several other emerging markets in Asia and elsewhere. There are only 14 companies that run
department stores and two with hypermarkets.

Retail sales now accounts for 44 per cent of the GDP.

Food sales accounts for 63 per cent of the total retail sales, growing to 10 lakh crores from

3.81 lakh crores in 1996.

The organized retail food and grocery sector constitutes the largest opportunity for growth and
account for 2% of total sales at present.
Urbanization, working spouses, increasing household disposable incomes and convenience of one
stop shop with good ambience drive growth of retailing in India.
Government policy

There has been vigorous opposition to foreign direct investment (FDI) in

retailing from small traders who fear that foreign retailing companies
would take away their business, lead to the closure of many small
trading businesses and result in considerable unemployment, but the
government has barred FDI in retailing since 1997. Hence, at present,
foreign retailers can only enter the retailing sector through franchising
agreements.

Organizational characteristics

Given the traditional and underdeveloped state of the Indian retail sector,
the organizational characteristics of retail enterprises are rudimentary.
Most of them belong to independent enterprises in the form of small
family businesses.

Cooperatives have been present in India for several decades, spurred by

the encouragement given by the Indian Government, which viewed the
cooperative movement as an integral component of its erstwhile
socialist policies. However, since the 1990s, there has been a reduction
in government support for cooperatives. In 2002, there were about
35,000 outlets run by cooperatives.

Economic liberalization, competition and foreign investment since the 1990s led to
a
proliferation of brands with both foreign and Indian companies
acquiring a strong brand equity for their products. Hence, franchising
emerged as a popular mode of retailing. Sales of franchises grew at a
rapid pace of 14% per annum over the review period. In 2002, there
were over 5,000 franchised outlets.

The other major retailing organisation format is multiples, better known

as "chain stores" in
India. In 2002, there were about 1,800 chain stores. Among the various
organizational
formats, sales of chain stores grew at the fastest pace, with sales growth during the review period averaging
24% per year.

India represents an economic opportunity on a massive scale, both as a global

base and as a
domestic market. Regulatory controls on foreign direct investment (FDI) have
relaxed
considerably in recent years. However, while retailing currently remains closed to
FDI, this is
an area of ongoing debate. This means that foreign retailers and
consumer goods
manufacturers can only participate in the retail market through indirect access
strategies, such
as wholesaling, franchising or licensing, or by having a manufacturing base in
India, or in
businesses upstream of retailing. However, the Indian government has indicated in
2005 that
liberalization of direct investment in retailing is under active consideration.
Price controls
have been progressively liberalized since 1992, but a small number of items
remain fully
controlled. There are also extensive controls on packaging, labelling and
certification.
Estimates of the size of the retail sector vary, with recent calculations putting
the annual
value of Indian retailing anywhere between US$180 billion and US$292
billion in 2003.

The retail sector is largely made up of what is known in India as the unorganized
sector. This sector consists of small family-owned stores, located in residential
areas, with a shop floor of less than 500 square feet. At present the organized
sector (everything other than these small family-owned businesses) accounts for
only 2 to 4 percent of the total market although this is expected to rise by 20 to 25
percent by 2010.

Many of the companies surveyed believe that the potential size of this
market is underestimated. They consider that there are considerable
opportunities for organized retailers in the kind of rural territories that many
companies have failed to address. A critical issue is how fast and how far the
consuming class will grow. This depends both on the growth of personal
disposable income and the extent to which organized retailers succeed in
reaching lower down the income scale to reach potential consumers towards the
bottom of the consumer pyramid.

Companies expect retail growth in the coming five years to be stronger than
GDP growth,
driven by changing lifestyles and by strong income growth, which in turn will be
supported
by favorable demographic patterns. The structure of retailing will also develop
rapidly.
Shopping malls are becoming increasingly common in large cities, and
announced
development plans project at least 150 new shopping malls by 2011. The
number of
department stores is growing much faster than overall retail, at an annual 24 percent.
Supermarkets have been taking an increasing share of general food and grocery
trade over the last two decades.

Consumer credit will also grow, assisted by the likely fall in retail lending rates
and more efficient and consumer-friendly lending practices. Distribution
continues to improve, but it still remains a major inefficiency.

Poor quality of infrastructure, coupled with poor quality of the distribution

sector, results in
logistics costs that are very high as a proportion of GDP, and inventories which
have to be
maintained at an unusually high level. Marketing and advertising are of
increasing interest
and concern to consumer companies. Indian consumers are becoming
increasingly
sophisticated and knowledgeable about products; media channels that allow
companies to
communicate with consumers are growing in diversity and reach. Foreign brands
remain very
powerful in India, especially in clothing and personal care products, but
increasingly brands
have to be associated with value. Advertising is becoming a bigger part of the
marketing mix
ñ companies are concerned about identifying consumer insights and the profusion
of media
channels.

Food and beverage offer the greatest organized retail growth opportunities, say
companies.
The main growth opportunity in the segment is in processed foods: rapid
growth in the
processed food segment is already apparent, changing lifestyles and food habits are
resulting
in the rapid expansion of branded food outlet and cafe chains. Gemstones and
jewellery
represent the most significant specialist segment of Indian retailing. Organized
jewellery
retailers are increasingly offering brand solutions to the demand for quality and
value, as
consumers move away from traditional retail settings reliant on family retailers.

All companies agree: Indian consumer markets are changing fast, with rapid
growth in
disposable incomes, the development of modern urban lifestyles, and the
emergence of the
kind of trend-conscious consumers that India has not seen in the past. Indians are
travelling
abroad a lot more, says a representative of an industry association. They get
exposed to what is happening in other markets, they bring back new attitudes
and preferences.

But with those changes, companies are adamant that while there are growth
opportunities for
consumer companies, there are few easy pickings. You canít sell junk in
India, says a
senior manager in a leading fashion company. it is not like worldwide fashion,
where people
might wear a garment three or four times and then discard it. In India you
have to give
value.

Companies are also increasingly keen to bring organized retailing to unvisited

arts of the economy. We think the best opportunities are in rural markets, says a
leading shoe retailer. Our whole strategy is to penetrate the rural market.
Distribution remains the biggest challenge companies face, not least because
India’s transport infrastructure remains weak. Understanding the consumer,
understanding the marketing environment, these are challenges, but
distribution is the biggest issue, says a personal care products company. A
leading watch and jewellery company agrees: Distribution and marketing is a
huge cost in Indian consumer markets. It’s a lot easier to cut manufacturing
costs than it is to cut distribution and marketing costs.

Companies expect that the next cycle of change in Indian consumer markets will
be the
arrival of foreign players in consumer retailing. Although FDI remains highly
restricted in
retailing, most companies believe that will not be for long. The very fact that
politicians
have left the issue open leads us to think the restrictions are going to be reviewed,
says a
leading sportswear manufacturer. And if retailing is liberalized, say companies,
growth will
be boosted, but so will competition. Says a leading shoe retailer: Indian companies
know
Indian markets better, but foreign players will come in and challenge the locals by
sheer cash
power, the power to drive down prices. That will be the coming struggle.
 VISUAL MERCHANDISING

Visual Merchandising is defined as selling a product through a visual

medium. It is arranging items for display and thereby turning a passive looker
into an active buyer, through use of color, texture, composition and visual
communication.

EVOLUTION OF VISUAL MERCHANDISING

Visual merchandising is not a newfound tool; it has been around since selling started.
When a
vegetable vendor arranges the best of his produce on to for people to touch and feel
them, or
when the jeweler puts the best of his pieces on the glass panels for passerbyís to
see, itís
visual merchandising at work. Starting from the 1800ís it became associated
with retail
industry. The Victorian era made window displays popular and the Great Exhibition
of 1851
in London established the prominence of display over the items while
commercializing the
practice. In due course visual merchandising became an inalienable part of the
fashion and
retail industry.

As far as the term Visual Merchandising is concerned, it became widespread only

in 1970 even though it was coined during the 1940s . From the late 1800s till the
1920s, visual merchandisers were known as window trimmers. By the late 1920s,
the window trimmers were referred to as display men, just as advertising industry
called its people ad men. The industry is evolving and entering new domains,
Visual Merchandising is increasingly perceived as a part of the overall brand
communication process.
 COMPONENTS OF VISUAL MERCHANDISING

STORE IMAGE

Image can be described as the overall look of a store and the series of mental
pictures and feelings it evokes within the beholder. For the retailer, developing a
powerful image provides the opportunity to embody a single message, stand out
from the competition and be remembered.
As a rule, image is the foundation of all retailing efforts. While store layout,
presentation,
signing, displays and events can all change to reflect newness and excitement from
week to
week, season to season, they must always remain true to the underlying store
image. The
following elements combine to form a distinctive image that not only reaches out
and grabs
the customer's attention, but also makes a positive impression within those
precious few
seconds. Image forms the solid foundation for the remaining components of
Maximizing
Store Impact


S TORE DESIGN

Store design plays a crucial role in branding: it reflects and reinforces the corporate
image. It
tangiblizes what the retailer claims to be. The sights, sounds, smells and other any
other
aspect should therefore reflect what the retailer brand is about and what its
attributes are.

Different types of store design are

Grid: it contains long gondolas (a free standing block of shelves used to display
goods in a supermarket) of merchandise and aisles in repetitive pattern.

Racetrack: also known as loop. It provides a major aisle to facilitate customer traffic
that has access to the storeís multiple entrances.

Free Form: also known as boutique; arranges fixtures and aisles asymmetrically.
Visual merchandising creates a connection between the companyís image
and the look of the store.
EXTERIOR DESIGN

STORE NAME

An effective store name sets the tone and provides a store's identification by conjuring
up an image in the customer's mind. An effective name is consistent with both the
product mix and the store atmosphere.


VISUAL TRADEMARK

An identifiable trademark adds a visual image to the memory recall of a store

name, by
combining words and pictures, color, shape, typeface, texture and/or style to make it
stand
out.

STOREFRONT

Storefront is also an important element, which adds to the store image like the
exterior architecture, signing and window displays.

EXTERIOR ARCHITECTURE
A store's exterior look is often referred to as the architecture, and comprises aspects
such as building materials, architectural style and detail, colors and textures. These
elements give a lasting first impression to the consumer. It is important that the
exterior look and ìfeelî right to the shopper.

STORE SIGN

The store sign is a vital element of the storefront and also an important component of
Visual Merchandising it helps in identifying the store In realizing the value of a
strong storefront sign, many retailers are employing new design techniques which
include projecting or cantilevering the store sign beyond the lease line, adding
motion, or using three-dimensional lettering and unique lighting applications to add
depth to the sign.
WINDOWS DISPLAY AND FLOORING

A store's exterior windows or glass storefront provide an additional opportunity to

reach out
and grab the passing customer. Windows are integral in creating a positive impression
since
they offer an opportunity to begin telling the store's unique merchandise story. The
flooring
and the number of floors a retail outlet has, also make an important impact on the
consumers.

INTERIOR DESIGN ELEMENTS

The elements of interior design can be used to create an image that matches the
desired customer profile.

FIXTURES

A major consideration in developing an appropriate store design involves the use of

fixtures. They are used to display merchandise, to help sell, to guard it and to provide a
storage space for it. They should be attractive and focus customersí attention
and interest on the merchandise.

D ISPLAYS

Displays play an important role in a retail store. An attractive and informative

display can help sell goods. There are several principles that help ensure this
effectiveness. They are achieving balance, provide dominant point, create eye
movement etc.

MERCHANDISE PRESENTATION TECHNIQUE

Merchandise Presentation technique is one of the most important component of
Visual Merchandising. The following are the different presentation techniques:
Idea-Oriented Presentation: a method of presenting merchandise based on a
specific idea or image of the store.

Style/Item Presentation: organizing stock by style or item

Color Presentation : A major role in a display is that of the color and

lighting. Aesthetic and innovative use of them can lure customers to visit
more aisles than they usually do and spend more time there.

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

predetermined price points within a classification.

Vertical Merchandising: merchandise is presented vertically suing walls and high gondolas

Tonnage Merchandising: here large quantities of merchandise are displayed

together to enhance and reinforce a storeís price image

Frontal Presentation: here the retailer exposes its much of the product as
possible to catch the customerís eye

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

C OLOR

The psychological effect of color continues to be important to retailers. Color probably

more than any other factor except price, is the ìstopperî that catches the consumerís
attention. Intelligent use of color is important in store design.

LIGHTING

Proper lighting is one of the most important considerations in retail outlet. Today
lighting has
become a display medium. It is an integral part of the storeís interior and exterior design.
Lighting is used to highlight merchandise, sculpt space and capture a mood or
feeling that enhances the storeís image.

CEILINGS

Ceiling represents a potentially important element of interior design. Ceiling heights,

color and material used will influence the store look.

FLOORING

Flooring choices are important because the coverings can be used to separate
departments; muffs noise in high-traffic areas and strengthen the store image.

SHELVING

The material used for shelving as well as its design must be compatible
with the merchandising strategy and the overall image desired. Music and scent in the
retail outlet can influence consumer behavior to a large extent.

Dos and Don’ts in Visual Merchandising

Dos


W
 indow display should be changed weekly or fortnightly to ensure freshness. The
display and layout should differentiate the store from competition. Colors and
design should be characteristic of the brand image.

Impulse purchase items (perfumes, watch straps, gifts) should be close to the entry and
exit doors for non-serious or causal customers would like to browse the whole
store. Their purchase is not pre-planned and because these impulse purchase items are
relatively cheaper they might buy them in a whim. Also when customers wait at the
billing counter the people accompanying the buyer may snoop around and make a
purchase too.
Use symbols as directions.

Control movement and crowd ñ aim of the design.

Distance between the aisles should facilitate the easy for movement shoppers.

Doníts

Avoid too many floors

Racks shouldnít be too high, especially in bookstores because customers might not be
able to reach the books.

Lighting shouldnít be poor and at the same time shouldnít be very bright. Shadows
are essential for that added effect.

The display shouldnít be contrast to the section in which it is. It also

shouldnít be unaesthetic.

The whole point of visual merchandising is to help companies to communicate the

brand message so that consumers can make better-informed choices. Consumers
increasingly shop by what attracts their eye, whether it is perfume, a sandwich or
chocolates.

NEED AND IMPORTANCE OF THE STUDY

Marketing products using visual merchandising system is an age-old

practice but
with growing growth of retail industry, the art or arguably the science of
Visual
Merchandising has gone to occupy a newfound fancy. There is a
growing
recognition of the need for an effective Visual Merchandising. But even as
it
continues to grow, the understanding of Visual Merchandising
impact and effectiveness is still in its infancy.

The shopping behavior which governs the decision to buy is a function of three stimuli
viz., visual, auditory and kinesthetic; the visual stimulus is the easiest and most
widely used tool for attracting customers. Although Visual Merchandising has long
been an important part of retailing (clothing, house-wares, etc.) it is not as well
known or accepted within the food industry. While there is substantial amount of
research on each of the components of visual merchandising, a holistic approach
towards visual merchandising involving the consumersí perceptions has not attracted
much of research effort, particularly in using the ëGESTALTí approach to visual
merchandising. This is the vital gap in the current research and this has prompted to
take up research investigation in this field.
 COMPANY PROFILES

Pantaloon is the company's departmental store and part of life style retail format.
In fact,
RIL took its very initial steps in the retail journey by setting up the first
Pantaloon store
in Kolkata in 1997. In a short time Pantaloon has been able to carve a special
place for it
self in the hearts and minds of the aspirational Indian customers. The company has
depth
of offering for both men and women at affordable prices. A striking
characteristic of
Pantaloon has been the strength of its private label programme. John Miller,
Ajile.
Scottsvile, Lombard, Annabelle are some of the successful brands created
by the
company. With 13 stores across the country and an ever-increasing stable of
private
brands, Pantaloon - in the coming years is poised to become a leading fashion
trendsetter.

From a humble beginning in 1987, Pantaloon as today evolved as a leading

manufacturer-
retailer in the country with 16 Pantaloon stores and 21 hypermarkets(Big
Bazaar), 33
Food Bazaars, 3 central, 2 Fashion Station, 2 aLL and 1 MeLa store operational
across
the country. It has been a remarkable journey for PRIL as its evolved
from a
manufacturing to a completely integrated player controlling the entire value
chain.

During its evolution the company achieved various milestone and

demonstrated innovativeness and leadership by pioneering concepts that has
now become industry standards.
Vision:

To be a Global Retailer in India and Maintain No.1 position in the Indian Market
in the Department Store Category.

Positioning

Shoppersí Stop is positioned as a family store delivering a complete shopping

experience defined by its mission, vision and values.

1991: Shoppers' Stop launches at Andheri

Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppersí
Stop is a member of the K. Raheja Corp. of Companies. Shoppersí Stop is the
first retail venture by the K. Raheja Corp. Promoted by Mr. Chandru L. Raheja,
Mr. Ravi C. Raheja and Mr. Neel C. Raheja, the K. Raheja Corp. have been
leaders in the construction business for over 48 years.

With its wide range of merchandise, exclusive shop-in-shop counters of

international brands and world-class customer service, Shoppersí Stop brought
international standards of shopping to the Indian consumer providing them
with a world class shopping experience.

India ñ 2000 & BeyondÖ

Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai,
Mumbai (Andheri, Bandra, Chembur, Kandivli, Mulund), Pune, Gurgaon and
Kolkata, Shoppersí Stop is today recognised as Indiaís premier shopping
destination. With a customer entry of about 50,000 customers a day, a national
presence with over 6 ,00,000 square feet of retail space and stocking over 250
brands of garments and accessories, Shoppersí Stop has clearly become a one
stop shop for all customers.

Customer Profile

Shoppersí Stopís core customers represent a strong SEC A skew. They fall
between the
age group of 16 years to 35 years, the majority of them being families and young
couples
with a monthly household income above Rs. 20000 and an annual spend of
Rs.15000. A
large number of Non - Resident Indians visit the shop for ethnic clothes in
the
international environment they are accustomed to.

Range of merchandiseÖ

The stores offer a complete range of apparel and lifestyle accessories for the
entire family. From apparel brands like Provogue, Color Plus, Arrow, Leviís,
Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci etc.,
Shoppersí Stop caters to every lifestyle need. Shoppers' Stop retails its own line
of clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The
merchandise at Shoppersí Stop is sold at a quality and price assurance backed by its
guarantee stamp on every bill.

Their motto: ìWe are responsible for the goods we sellî.

Customer Rewards ñ The First Citizen

Shoppersí Stopís customer loyalty program is called The First Citizen. The
program
offers its members an opportunity to collect points and avail of innumerable
special
benefits. Currently, Shoppersí Stop has a database of over 2.5 lakh members who
contribute to nearly 50% of the total sales of Shoppersí Stop.

International Affiliations

Shoppersí Stop is the only retailer from India to become a member of the
prestigious
Intercontinental Group of Departmental Stores (IGDS). The IGDS consists
of 29
experienced retailers from all over the world, which include established
stores like
Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China), Matahari
(Indonesia),
Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and
Lamcy Plaza
(Dubai). This membership is restricted to one member organization per
country/region.
The Company:

Strong, Competitive, Innovative, Adaptive

History:
Launched in January 1998, Globus is a part of the Rajan Raheja group. The
company opened its first store in 1999 at Indore followed by the launch of
its second store in Chennai (T-Nagar). Soon to follow was another in
Chennai located in Adyar. The flagship store in Mumbai was opened on 1st
November 2001 followed by a swanky new outlet in New Delhi in South
Extension Part

The sixth & seventh stores are in Bangalore in Koramangala & Richmond
Road respectively. The Eighth store in Ghaziabad at Shipra Mall followed by the
ninth, tenth and eleventh in Kalaghoda , Mumbai, Thane and Ghaziabad and
the twelfth store at Kanpur. Coming soon to Ahmedabad .

Mission:

 Achieve customer delight by offering quality products and services

through a
process of continuous innovation and adaptation.
 Build a dynamic team of committed and passionate employees through
sustained
learning and grooming.
 Develop mutually beneficial relationships with our business partners.
Employ cost-effective processes and thereby create a strong organization.
Infrastructure:

Globus Stores Pvt. Ltd. was formed to contribute in the revolution sweeping the
retail industry. Globus promises to bring about a perceptible change in the way
apparel and lifestyle retailing has been carried so far.

Towards this end, modern international technology has been brought in and
heavy investments have been made in investing and acquiring the best, tried
and tested processes and procedures of operation.

 Research & Design

 Production & Merchandising
 Marketing & Brand Development
 Service
 Human resources

Administering policies & procedures

Future:

Globus combines state of art international information technology, the highest

quality
human resources and sustained financial commitment to realize the long term
vision. We
are rapidly expanding and the target is to have an additional 100 fashion stores by the
end
of 2008.
Style, affordable prices, quality ó these are the factors that have shaped
Westsideís
success story in the retail fashion stores business. Launched in 1998 in
Bangalore, the
Westside chain has, ever since, been setting the standards for other fashion
retailers to
follow.

The Westside story really began in 1997, when the Tatas sold Lakme, their
cosmetics business, to Hindustan Lever and acquired the Britain-based
Littlewoods retail chain. A new entity called Trent Limited emerged from this
move and Littlewoods was renamed Westside. Today Westside has seven
outlets, one each in Bangalore, Hyderabad, Chennai, Mumbai, Pune, New
Delhi and Kolkata.

Westside stands out from the competition for a variety of reasons. One is that a
majority
of the brands the chain stocks and sells are its own, unlike retailers who store
multiple
labels. About 90 per cent of Westsideís offerings are home-grown, and they
cater to
different customer segments. The other 10 per cent includes toys, cosmetics
and lingerie.

According to Himanshu Chakrawarti, Trentís general manager, this arrangement

has many advantages. "Being a brand retailer, we are able to develop our style and
image in a manner whereby customers can build a relationship with us," he says.
"We also have the flexibility of pricing and are able to fulfil the promise of
affordable style." Price is crucial in the Indian retail scenario and Westsideís focus
on this factor is part of the reason it increased sales in October- December 2001
by a whopping 71 per cent over the same period the previous year.

Repeat customers, those who keep coming back to Westside, are another vital
element in
the chain being a winning proposition. Simone Tata, Trentís chairperson, puts that
down
to giving customers something to come back for: "We have something new every
week." Mr Chakrawarti adds that "ultimately itís the products and their
quality that makes customers return again and again".

Visit a Westside store and Mr Chakrawartiís words are clearly confirmed. Each
outlet blends products, ambience, customer service and facilities to create a
standout shopping experience. The stores are spacious (10,000 to 20,000 square
feet each), designed to look and feel international, and products are displayed
attractively. The Westside outlets in Mumbai and Hyderabad have an additional
drawing card: Taj CafÈs that serve delicious pastries, sandwiches and coffee.

Westside has recently expanded its range of merchandise by offering outfits from
some of Indiaís best-known fashion designers, among them Wendell Rodericks,
Anita Dongre, Krishna Mehta and Mona Pali. This is an interesting marketing
shift, since it means moving away from the chainís only-our-own-brands
concept.

What was the idea behind the move? According to Mrs Tata, it is Westsideís
response to the increasing demand in India for designer lines. She says: "Designer
wear is really an aspiration product, and it is highly priced. We wanted to offer an
affordable selection for weddings and parties, but since this is still a very small
segment we felt it was better to bring in established designers rather than do it
ourselves."

The designers create collections exclusively for the store, and the prices for
these are
hardly eye-popping (the Wendell Rodericks range starts at Rs 600). Westside
has
managed to obtain this exclusivity at a lower price because it has multiple
outlets.
"Designer wear for us is really, to use the phrase, ëthe cherry on the cakeí," adds
Mrs
Tata.
Facing the challenge

The greatest challenge for Westside in its quest for a place in the retail sun is
not the competition from similar organised players, but from the unorganised
sector (98 per cent of Indiaís retail garment industry operates in the unorganised
sector). According to Mr Chakrawarti, the task at hand is to get people who
usually shop with unorganised players to visit organised stores such as Westside.

The general perception in India is that organised retailers are far more
expensive than unorganised ones. Westsideís response to this dogmatic view has
been to connect price to quality. "We had to get customers to realise that they
were getting the latest style at very good prices, and in a comfortable
environment," says Mr Chakrawarti.

The other challenge for Westside is that the retail fashion business in the
country is
becoming increasingly crowded with new players, Indian and foreign. Among
the new
entrants have been Wills Sport, Raymonds (Be), Globus, Nike, Crocodile,
Mango and,
the latest, Marks & Spencer. But this does not perturb Mr Chakrawarti , who
says itís
ironic that while Marks & Spencer is actually a value-for-money brand
abroad, it has
positioned itself in India as a high-style clothier, selling at prices way above
that of its
competitors.

Customers are what everyone is after, and it is they that Westside is

concentrating on. Continuing research and surveys have helped the chain
build on customer loyalty. "Weíve learned enormously through the years," says
Mrs Tata. "It is absolutely essential to listen to customers ó what they want in
terms of style and price, and to understand the demographics of it all. Itís
continuous learning."

An example of this commitment to customers is in the small matter of Westside

tailoring
its products to suit particular regions. The chain learnt that customers in south
India tend
to be smaller in size than their counterparts in the north, and in some cities
women rarely
wear sleeveless dresses. Knowing these facts has helped Westside get the right
balance in terms of products and the people they are intended for.

An assured return-and-exchange policy reinforces customer confidence in the

chain. No questions are asked and a bill is not necessary. "We can do this only
because it is our own merchandise," says Mr Chakrawarti. "Many-brand stores
are governed by the exchangeand-return policy of the various labels they sell."
 Bangalore Central

Bangalore Central, Indiaís First and Biggest Seamless Mall in the heart of
Bangalore City is ready to redefine and revolutionise the shopping experience
in India. Bangalore Central, owned by Pantaloon Retail ( India) Limited, the
leading retailer in India, is located in the cityís nerve centre, MG Road.

Located in the heart of the city, Bangalore Central houses over 300 brands
across
categories, such as apparels, footwear and accessories for women, men, children,
infant
basics, apart from a whole range of Music, Books, Coffee Shop, Food Court,
Super
Market (Food Bazaar), Fine Dining Restaurant, Pub and Discotheque. The mall
also has a
separate section for services such as Travel, Finance, Investment,
Insurance,
Concert/Cinema Ticket Booking, Bill Payments and other miscellaneous
services.
Bangalore Central also houses Central Square ñ a dedicated space for product
launches,
impromptu events, daring displays, exciting shows and art exhibitions.

Bangalore Central conceptualised with a theme and tagline that says ìShop ,
Eat and Celebrateî has several unique features. Centralized Billing,
Customer friendly environment and Indiaís first live Radio Central ñ an in-house
radio station are only some of the many things that the retail giant Pantaloons
has in the offing for Bangalore Centralís customers.

Bangalore Central helps the brands in unleashing the complete potential of a

brand.
Bangalore Central, because of its seamless nature offers direct walk-ins to the
brand. The
consumer gets to experience the brand in a setting that is classy, uniform and
bereft of
boundaries. The brands at the Mall have the facility to organize in-store brand
promotions
/ launches / schemes and in turn strengthen their image and branding. The brands
are also laid out in such a way that it is easy for the customers to locate and
access a category in which all the related brands are showcased together. This
means that once a customer walks in to the category, all the brands get the
customerís attention.

Commenting on the unique format of Bangalore Central Mall, Mr. Kishore

Biyani, Managing Director, Pantaloon Retail (India) Limited said, ìBangalore
Central is based on the concept of a Seamless Mall with the objective to provide
world-class retail experience to customers and brands. We are extending the retail
experience beyond just shopping to ìShop, Eat and Celebrateî, the spirit that
symbolises affluent India. Pantaloons has always been the pioneers in the
retail market and with Central we are hoping to create new benchmarks in mall
managementî

Mr. Muralidharan , Head, Pantaloon Malls, said, ìWith malls

mushrooming, our competitive edge comes from the amount of experience and
expertise that Pantaloons has in retail management, and a keen understanding
of consumer needs. With Bangalore Central, we have not only created a
truly world class mall, but have also created a ëparadigm shiftí in the retail
segment, that will be tough to emulate.î
ìAt Bangalore Central, both our customers and the brands have an added
advantage as compared to the large format malls. The well planned and laid out
floor with interiors, common billing, space for individual branding and
uniform categorising of various brands at the mall will assure them consistent
footfalls, giving them opportunities to convert the walk-ins into purchases.î
he further added.

About Bangalore Central

Sprawling over 1 lakh 20 thousand sq. ft. area, Bangalore Central has everything a
family would need, for a complete shopping experience. The 6 storied
Seamless Mall has specific areas dedicated to women, men, children, infants,
food and beverages, home appliances and furnishing, toys, play area for
children among others.
Bangalore Central is the first of the chain of Central Malls by Pantaloon Retail
(India) Ltd. Central would be opening up their second mall in Hyderabad and
third in Pune, called Hyderabad Central and Pune Central respectively, followed
by more in other parts of the country.
 LIFESTYLE

Lifestyle has revolutionised retailing in India by offering a truly international

shopping
experience, to become the preferred must-stop for discerning shoppers with a
youthful,
vibrant, spicy lifestyle. Launched in 1999 in Chennai, Lifestyle today is one of
India's
largest professional retailers with over 325,000 sq. ft. of shopping space across
Chennai, Hyderabad, Bangalore, Gurgaon and Mumbai. With the widest
choice of stylish yet affordable merchandise for the entire family and their
home, in a world-class, shopperfriendly layout, it is one of the most desired
shopping destinations in India. Not surprisingly, Lifestyle's retailing model
has also received corporate admiration by winning the 'Most Respected
Company in the Indian Retail Sector' and the 'Most Admired Large Format
Retail Company' awards in India.

Business World-IMRB Most Respected Company Awards Survey has rated

Lifestyle as the Most Respected Company in the retail sector in 2003 and 2004.
Lifestyle has also been awarded the ICICI - KSA Technopak Award for Retail
Excellence in 2005 and more recently the Lycra Images Fashion Awards for
the Most Admired Large Format Retailer of the Year in 2006

Lifestyle is part of the Landmark Group, a Dubai-based retail chain. With over 30
yearsí experience in retailing, the group has become the foremost retailer in the
Gulf. Positioned as a trendy, youthful and vibrant brand that offers
customers a wide variety of merchandise at an exceptional value for money,
Lifestyle India began operations in 1998 with its first store in Chennai in 1999.
RESEARCH DESIGN
 STATEMENT OF THE TOPIC

Visual merchandising in select retail units in Bangalore city - a comparative study

OBJECTIVES OF THE STUDY

 To understand the dynamics of visual merchandising

 To capture the perceptions of consumers towards visual merchandising.

 To make appropriate recommendations for an effective visual merchandising

 To make a comparative analysis of six different lifestyle stores in Bangalore.

SCOPE OF THE STUDY

This study is limited to a comparative analysis confined to these six lifestyle

stores in Bangalore city only. Further more it covers only the aspects or
components of visual merchandising.
 RESEARCH METHODOLOGY

Primary data was collected using the structured questionnaire. A sample

size of 150 respondents were chosen through random sampling technique. 25
respondents in each store were asked to fill the questionnaire.

Construction of questionnaire:

The questionnaire was used as the respondents had to give a specific answer
to the questions. This also made it easier for the respondents to give their opinion
without too much time.

Personal interaction with the consumers at the store and observation techniques were
also
used.

Secondary data was collected from various articles published in magazines,

internet, company brochures and publications.

Sample Size: 150 (25 in each store)

Sampling technique: Random Sampling

Limitations of the study:

The project had to be done keeping in mind a time frame.

The study is limited to the stores in Bangalore city only. Branches outside
Bangalore are not taken into account.
DATA ANALYSIS
How important is the ambience of the store while shopping?

Respondents
Very Imp 66
Imp 72
Neither imp nor unimp 7
Not imp 2
Not at all imp 3
150

Importance of ambience while shopping

5%1%2%

Very Imp

44% Imp
Neither imp nor
unimp Not imp
48% Not at all imp

Inference: Here we can see that 44% of people feel the ambience is extremely
important, while 48 % feel it is important. Hence, retailers should prioritize
ambience at the top while designing the store.
How probable are you to purchase a product without pre planning?

Respondents
Very probable 31
Probable 23
Not probable 37
Not at all probable 59
150

Probability of purchasing without pre -planning

21%
Very probable
39% Probable
15% Not probable
Not at all probable
25%

Inference: 36% of the people feel that they might buy a product without pre-
planning. This accentuates the importance of visual merchandising in boosting
sales.
Which type of store design would you prefer?

Respondents
Grid 76
Race track 38
Free form 36
150

Rating on dress code

Pantaloons 3.12

Globus 2.92

Westside 2.96

Shoppers Stop 3.16

Lifestyle 3.64

Bangalore Central 3.72

0 1 2 3 4

Inference: This graph shows that out of 150 respondents, 76 prefer the grid type
of store design. The reason for the same is to avoid confusion and free movement
from one aisle to another.
Do you agree that the window display (for the sake of VM) should be
changed weekly or fortnightly to ensure fresh display?

Respondents
Totally agree 82
Somewhat agree 38
Neither agree nor
disagree 12
Somewhat disagree 11
Totally disagree 7
150

Opinion of respondents on window display changes

Totally agree
7% 5%
8% Somew hat agree

Neither agree nor disagree

55%
25% Somew hat disagree
Totally disagree

Inference: Most of the respondents feel that the display should be

changed weekly/fortnightly to avoid monotony to regular
customers.
Do you agree that the impulse items like perfumes watches, socks, ties, gift
items and accessories should be close to the entry and exit doors for non-
serious customers and casual customers so that they can browse the whole
store?

Respondents
Totally agree 69
Somewhat agree 23
Neither agree nor
disagree 15
Somewhat disagree 15
Totally disagree 28
150

Display of impulse items at entry and exits

Totally disagree 28

Somew hat disagree 15

Neither agree nor disagree 15

Somew hat agree 23

Totally agree 69

0 10 20 30 40 50 60 70

Inference: Most of the respondents feel that impulse items should be placed close
to entry and exit doors to facilitate easy accessibility to such impulse products.
Do you agree that the retailers must ensure the distance between the aisles
so as to facilitate the easy for movement of shoppers?

Respondents
Totally agree 86
Somewhat agree 30
Neither agree nor
disagree 18
Somewhat disagree 13
Totally disagree 3
150

Distance between asiles to

facilitate easy
movement
Totally agree

20% Somew hat agree

12%

11 9% Neither agree nor

disagree
%
2% Somew hat disagree

57% Totally disagree

Inference : Majority of the respondents feel that they need space for easy
movement between aisles. People do not wish to shop in a cramped
atmosphere.
Do you agree that the retailers should avoid too many floors because shoppers
would be tired?

Respondents
Totally agree 31
Somewhat agree 36
Neither agree nor
disagree 28
Somewhat disagree 29
Totally disagree 26
150

Opinion on reduction of floors

36
40 31 Totally agree
28 29 26
30 Somew hat agree

20 Neither agree nor disagree

10 Somew hat disagree
0 Totally disagree
Respondents

Inference: One look at the graph tells us that there is no significant

preference with respect to number of floors. As long as the stores have
escalators, shoppers donít mind moving up and down.
Do you agree that the racks in the stores should not be too high?

Respondents
Totally agree 88
Somewhat agree 34
Neither agree nor
disagree 11
Somewhat disagree 8
Totally disagree 9
150

Racks should not be too high

Totally disagree

9 Somewhat disagree
8
Respondents 11 Neither agree nor
34 disagree
88 Somewhat agree

0 50 100 Totally agree

Inference: Respondents feel that racks should be low and accessible to view and
touch the product.
Do you agree that the retailers should ensure that lighting should not be poor
and at the same time should not be very bright and that shadows are
essential?

Respondents
Totally agree 27
Somewhat agree 69
Neither agree nor
disagree 22
Somewhat disagree 19
Totally disagree 13
150

Lighting should not be poor and too bright

9% Totally agree
18%
13% Somewhat agree

Neither agree nor

disagree
15%
Somewhat disagree

45% Totally disagree

Inference : 45% of the respondents feel that retailer should ensure proper lighting.
Do you agree that the VM should be powerful enough to enable that the
customers to visit as many aisles as possible?

Respondents
Totally agree 93
Somewhat agree 26
Neither agree nor
disagree 14
Somewhat disagree 9
Totally disagree 8
150

VM should be powerful enough to make

customers visit all aisles

100 Totally agree

80 Somewhat agree

60
Neither agree
40 nor disagree
Somewhat disagree
20
Totally disagree
0
Respondents

Inference : Most of the respondents feel that visual merchandising should be

powerful enough so that customers visit maximum number of aisles. Ultimately
a retailer would want his shoppers to visit as many aisles as possible. Visual
merchandising is a powerful tool for the same.
Do you agree that the exposure through VM is a significant variable in
consumer decision-making?

Respondents
Totally agree 79
Somewhat agree 47
Neither agree nor
disagree 6
Somewhat disagree 7
Totally disagree 11
150

Importance of VM in purchase decision

7% Totally agree
5%
4%
Somewhat agree

Neither agree
53% nor disagree

31% Somewhat disagree

Totally disagree

Inference : Most of the respondents feel that visual merchandising play an

important role in consumer buying decision. Hence it is vital to ensure that all
components of visual merchandising are given utmost importance.
Do you agree that VM is not just physical, architectural exercise, it must
encompass aesthetics, the customers' desires and the business?

Respondents
Totally agree 84
Somewhat agree 37
Neither agree nor
disagree 12
Somewhat disagree 6
Totally disagree 11
150

VM is not just physical, architectural

exercise, it
must encompass

7% Totally agree
4
%
Somewhat agree
8%
Neither agree nor
56% disagree
Somewhat disagree
25%
Totally disagree

Inference : Most of the respondents feel that visual merchandising is done to

suit their needs, wants and preferences.
 COMPARATIVE ANALYSIS

Shoppers

Rating
Bangalore Central Lifestyle Stop Westside Globus Pantaloons
3.76 4.08 3.28 2.6 2.68 3.16
5
79 4 2 2 5
4
1112 9 5 6 6
3
32 5 4 5 5
2
21 4 9 6 6
1
21 3 5 6 3
No. of
respondents
2525 25 25 25 25
Point
94102 82 65 67 79
Avg.
3.76 4.08 3.28 2.6 2.68 3.16

Rating on store
display

5
4
3
3.16
2.68
4.08 3.28 2.6

2 3.76
1
0

Inference: Lifestyle scores highest on store display followed by Bangalore Central.

 Shoppers
Rating Bangalore Central Lifestyle Stop Westside Globus Pantaloons
3.72 3.92 3.36 2.6 2.76 3.08
5 9 11 6 2 3 5
4 8 7 8 5 4 6
3 2 3 4 5 7 4
2 4 2 3 7 6 6
1 2 2 4 6 5 4
No. of
respondents 25 25 25 25 25 25
Point 93 98 84 65 69 77
Avg. 3.72 3.92 3.36 2.6 2.76 3.08

Rating on store ambience

4.5
3.92
4 3.72
3.36
3.5 3.08
3 2.6 2.76
2.5
2
1.5
1
0.5
0
Bangalore Lifestyle Shoppers Westside Globus Pantaloons
Central Stop

Inference: Lifestyle scores highest on store ambience whereas Westside scores lowest.
 Bangalore Shoppers
Rating Central Lifestyle Stop Westside Globus Pantaloons
3.52 3.76 3.32 2.56 2.84 2.96
5 5 7 5 2 3 4
4 11 10 8 5 6 6
3 3 4 6 6 5 4
2 4 3 2 4 6 7
1 2 1 4 8 5 4
No. of
respondents 25 25 25 25 25 25
Point 88 94 83 64 71 74
Avg. 3.52 3.76 3.32 2.56 2.84 2.96

Rating on store planning and design

4 2.96
2.84 Bangalore Central
3 3.32 2.56
3.76 Lifestyle
2 3.52 Shoppers Stop
1 Westside

0 Globus
1 Pantaloons

Inference: Lifestyle scores highest on store planning and design followed by

Bangalore Central whereas Westside scores lowest among all.
 Shoppers
Rating Bangalore Central Lifestyle Stop Westside Globus Pantaloons
3.72 3.68 3.44 2.64 2.8 3.24
5 7 8 6 3 4 5
4 10 9 9 5 6 5
3 4 3 3 4 5 6
2 2 2 4 6 3 7
1 2 3 3 7 5 4
No. of
respondents 25 25 25 25 23 27
Point 93 92 86 66 70 81
Avg. 3.72 3.68 3.44 2.64 2.8 3.24

Rating on store windows

4
3.72
3 3.68
. 3.44
5 3.24
3 2.64 2.8
2
.
5
2
1
.
5
1
0 S1
.
5
0
Inferences: Bangalore Central scores highest among all on store windows.
 Bangalore Shoppers
Rating Central Lifestyle Stop Westside Globus Pantaloons
3.64 3.36 3.16 2.76 3 2.88
5 8 6 5 4 5 4
4 7 7 7 5 4 6
3 4 6 5 4 7 4
2 5 2 3 5 4 5
1 1 4 5 7 5 6
No. of
respondents 25 25 25 25 25 25
Point 91 84 79 69 75 72
Avg. 3.64 3.36 3.16 2.76 3 2.88

Rating on flooring

Pantaloons 2.88

Globus 3

Westside 2.76

Shoppers Stop 3.16

Lifestyle 3.36

Bangalore Central 3.64

0 0.5 1 1.5 2 2.5 3 3.5 4

Inference: Among the six retailers flooring of Bangalore Central is rated highest.
 Bangal Shopp
ore ers
Westside Globus Pantaloons
Rating Lifestyle Stop
2.92 3 3.24
3.76 3.48
Central 4 4 5
87
3.4 6 6 8
86
5 5 4 6 5
56
4 9 6 4 2
34
3 4 5 5 5
12
2 5
1 2 25 25 25
25 25
No. of 73 75 81
94 87
respondents 25 2.92 3 3.24
3.76 3.48
Point 85
Avg. 3.4

Rating on store
signs

3.24

Pantaloons 2.92

Globus 3.48

Westside 3.76

Shoppers Stop 3.4

Lifestyle
3 4
Bangalore Central
1 2
0

Inference: On store signs respondents feel Lifestyle is the best and most informative.
 Shoppers
Rating Bangalore Central Lifestyle Stop Westside Globus Pantaloons
3.68 3.96 3.28 2.96 2.96 3.12
5 6 9 5 6 5 6
4 11 10 8 5 4 5
3 4 3 4 3 7 4
2 2 2 5 4 3 6
1 2 1 3 7 6 4
No. of respondents 25 25 25 25 25 25
Point 92 99 82 74 74 78
Avg. 3.68 3.96 3.28 2.96 2.96 3.12

Rating on store design

Pantaloons 3.12

Globus 2.96

Westside 2.96

Shoppers Stop 3.28

Lifestyle 3.96

Bangalore Central 3.68

0 0.5 1 1.5 2 2.5 3 3.5 4

Inference: Lifestyle scores highest on store design followed by Bangalore

Central whereas Globus and Westside scores lowest among all.
 Bangalore Shoppers

Rating
Central Lifestyle Stop Westside Globus Pantaloons
3.4 3.92 3.28 2.96 2.88 3.16
5
7 8 6 3 4 5
4
6 11 5 5 6 7
3
5 3 7 9 3 4
2
4 2 4 4 7 5
1
3 1 3 4 5 4
No. of
respondents
25 25 25 25 25 25
Point
85 98 82 74 72 79
Avg.
3.4 3.92 3.28 2.96 2.88 3.16

Rating on fixture & hardware

3.16 3

2.88
3.92 3.28 2.96 2

3 1
.
4 0 Bangalore Central
Lifestyle
Shoppers Stop
Westside
Globus
Pantaloons

Inference: In terms of fixture and hardware respondents feel that Lifestyle is best
among
all.
 Bangalore Shoppers

Rating
Central Lifestyle Stop Westside Globus Pantaloons
3.6 3.36 3.92 2.92 3.08 3.24
5
6 6 8 3 5 6
4
8 7 9 6 7 5
3
7 5 6 7 3 7
2
3 4 2 4 5 3
1
1 3 0 5 5 4
No. of
respondents
25 25 25 25 25 25
Point
90 84 98 73 77 81
Avg.
3.6 3.36 3.92 2.92 3.08 3.24

Rating on props & decorative items

4.5
4
3.92
3.5 3.6 3.36

3.08 3.24
3 2.92
2.5
2
1.5
1
0.5
0
Bangalore Lifestyle Shoppers Westside Globus Pantaloons
Central Stop

Inference: Respondents rate Shoppers Stop highest in terms of props and

decorative items.
 Bangal Shoppe
ore rs
Westside Globus Pantaloons
Rating Lifestyle Stop
2.84 2.68 3.24
3.92 3.2
Central 3 2 5
9 4
3.7 5 5 6
6 10 8
6 8 5
5 8 2 6
7 3 8
4 9 3 3
4 7 1
3 4 1 4
2 2
25 25 25
1 2 25 25
71 67 81
No. of 98 80
2.84 2.68 3.24
respondents 25 3.92 3.2
Point 94
Avg.

3.76

Rating on with
colors

2.68 3.24

3.2 2.84
5 Globus Pantaloons
4
3 Shoppers Westside
2 3.76
Stop
3.92
1
0
Bangalore

Lifestyle
Central

Inference: Lifestyle scores highest on colors followed by Bangalore Central.

 Bangalor Shoppe
e rs
Westside Globus Pantaloons
Rating Central Lifestyle Stop
2.92 3 3.32
3.56 3.88 3.28
3 4 6
5 6 8 5
5 6 7
4 10 11 8
9 5 4
3 3 2 4
3 6 5
2 4 3 5
5 4 3
1 2 1 3
No. of
25 25 25
respondents 25 25 25
73 75 83
Point 89 97 82
2.92 3 3.32
Avg. 3.56 3.88 3.28

Rating on
lighting

3.5

3 Bangalore Central

2.5 Lifestyle
Shoppers Stop
2 Westside
Globus
1.5
Pantaloons
1

0.5

0
Bangalore Lifestyle Shoppers Westside Globus Pantaloons

Central Stop

Inference: Respondents feel that lighting of Lifestyle is best when compared to

the other
five.
 Bangalore Shoppers
Rating Central Lifestyle Stop Westside Globus Pantaloons
3.72 3.64 3.16 2.96 2.92 3.12
5 9 8 6 3 4 4
4 8 7 5 6 7 6
3 3 5 4 7 3 7
2 2 3 7 5 5 5
1 3 2 3 4 6 3
No. of
respondents 25 25 25 25 25 25
Point 93 91 79 74 73 78
Avg. 3.72 3.64 3.16 2.96 2.92 3.12

Rating on dress code

Pantaloons 3.12

Globus 2.92

Westside 2.96

Shoppers Stop 3.16

Lifestyle 3.64

Bangalore Central 3.72

0 1 2 3 4

Inference: Respondents feel that dress code of Bangalore Central is most

appropriate in comparison to the other five.
 Bangalore Central Lifestyle Shoppers Stop Westside Globus Pantaloons
3.64 3.80 3.34 2.80 2.91 3.17
Store Display 3.76 4.08 3.28 2.6 2.68 3.16
Ambience 3.72 3.92 3.36 2.6 2.76 3.08
Store
Planning and
Design 3.52 3.76 3.32 2.56 2.84 2.96
Store
Windows 3.72 3.68 3.44 2.64 2.8 3.24

Flooring 3.64 3.36 3.16 2.76 3 2.88

Displays 3.8 4.16 3.32 2.8 3.28 3.44
Signs 3.4 3.76 3.48 2.92 3 3.24

Space Design 3.68 3.96 3.28 2.96 2.96 3.12

Fixture and
Hardware 3.4 3.92 3.28 2.96 2.88 3.16

Props and
Decorative
Items 3.6 3.36 3.92 2.92 3.08 3.24
Colors 3.76 3.92 3.2 2.84 2.68 3.24
Lighting 3.56 3.88 3.28 2.92 3 3.32
Dress Code 3.72 3.64 3.16 2.96 2.92 3.12
Cumulative
Score 47.28 49.4 43.48 36.44 37.88 41.2
Average 3.64 3.80 3.34 2.80 2.91 3.17
 Average Rating

4.00 3.64
3.80 3.34 3.17
3.50 2.80 2.91
3.00
2.50
2.00
1.50
1.00
0.50
0.00 Shoppers Westside Globus Pantaloons
Bangalore Stop

Lifestyle
Central

Inference: Based on the thirteen parameters we arrive at the average rating for
each store. Lifestyle is rated highest and follows the best practices of visual
merchandising.

Lifestyle: Out of thirteen parameters Lifestyle got top rating in nine.

Currently it is
practicing the best visual merchandising techniques. The respondents are
extremely
satisfied with Lifestyle in terms of visual merchandising. But there is an
area for
improvement in store windows, flooring, props, decorative items and
appropriateness of
dress code.

Bangalore Central: Bangalore Central is a close second behind Lifestyle.

In terms of store windows, flooring and appropriateness of dress code, it is
rated number one by respondents. It requires marginal improvement in most of
the areas mentioned to beat Lifestyle. Overall respondents were satisfied.
Shoppers Stop: Shoppers Stop comes third just behind Bangalore Central.
Shoppers Stop could improve on fixtures to display its line of apparel more
effectively. Shirts were displayed on shelves in Lifestyle which were more
attractive than hangars used in Shoppers Stop.
Pantaloons: Pantaloons could improve on flooring which is not
appealing when compared to the other five stores. Store display could also be
improved. Most of the parameters were given an average rating by the
respondents.

Globus: Window display is virtually non existent. The only attractive feature of
this store is a hoarding of brand ambassador ìSoha Ali Khanî at the entrance of the
store.

Westside: The interesting thing about Westside is that while going up the
escalator, strategic placement of gift items hits you in the face. This feature is
unique to Westside. However it needs improvement in all other areas of Visual
Merchandising.
 FINDINGS AND RECOMMENDATIONS

The ambience of the store is a very important element in Visual

Merchandising as it influences consumers in purchase decision. A customer is
highly influenced by the look and feel of the store. The minute he/she walks in,
an image of the store is formed. This image is extremely important to the retailer
if he wants to bag a new customer. Hence the ambience is to be given utmost
importance. A retailer needs to hire a good interior decorator and if possible
use ergonomics while designing a store.

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

merchandising
is used to attract shoppers to view the product more closely. Effective
visual
merchandising is essential to attract shoppers enticing them to make a purchase.
Effective
visual merchandising should also be supported by good sales staff to close
deals with
shoppers.

Visual Merchandising enhances the pleasure of shopping experience.

Store windows can be used effectively to entice people on the streets to walk
into the store.
Promotions, props and decorative items are huge attractions with regard to
visual merchandising. Unfortunately , stores use these tools only during
festivals and anniversaries.
 CONCLUSION

This project has helped me understand the importance and significance of

visual merchandising and its impact on consumer buying behavior. It has given
me exposure to the practical side of retailing and at the same time enhanced my
knowledge by applying theory learnt in class to practice.

Visual merchandising when used effectively is no doubt, a powerful tool to

entice customers in making a purchase decision. Retailers can attract more
customers and increase sales by proper use of visual merchandising techniques.
 BIBLIOGRAPHY

BOOKS:

Retail Management By Ron Hasty & James Reardon

Marketing Management - Philip Kotler

Research Methodology ñ Cooper and Schindler

JOURNALS AND MAGAZINES :

4 Ps

Business World

Business Today
ANNEXURES
I am a student of Christ University, Bangalore, pursuing BBA Program. As a part of the BBA
curriculum, I have taken up a research project on VISUAL MERCHANDISING IN RETAIL
UNITS. In this connection, I need some information. Below is the questionnaire. Kindly give your
responses to the questions in the questionnaire. I sincerely assure your responses will be kept
strictly confidential and shall only be used for academic purpose. I shall greatly appreciate your
cooperation in completing my research project.

Mr. Sandipan
Sarkhel

Visual Merchandising is defined as selling a product through a visual

medium. It is arranging items for display and thereby turning a passive looker into an active
buyer, through use of color, texture, composition and visual communication.
1 How often do you visit the store?

Weekly
Fortnightly
Monthly
Others (please specify)

2 How important is the ambience of the store while shopping?

Very important
Important
Neither important nor
unimportant Not important
Not at all important

3 How pleased are you with store display?

Very pleased
Pleased
Neither pleased nor
displeased Displeased
Very displeased

4 How appealing is the lighting, choice of colors, and material in the store?

Very appealing
Appealing
Neither appealing nor
unappealing Not appealing
Not at all appealing
5 How appropriate is the dress code of the staff?

Very appropriate
Appropriate
Neither Appropriate nor
inappropriate Not appropriate
Not at all appropriate
6 How would you rate the store on the following aspects?

Excellent Very Good Good Average Poor

Ambience
Store planning and
design
Store windows
Flooring
Displays
Signs
Space design
Fixture and
hardware
Props and
decorative
items
Colors
Lighting

7 How probable are you to purchase a product without pre planning?

Very probable
Probable
Not probable
Not at all probable

8 How informative are the signs in the store?

Very informative
Informative
Not informative
Not at all informative
9 Do you agree that different stores that cater to different customers
need to
be different in their internal design?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
 10 Do you agree that the visual merchandising help retailers to communicate
retail
brand message so that the customers can make better informed choices?

Totally agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Totally disagree

11 Which type of store design would you prefer?

Grid
Race track
Free-form

12 Do you agree that the window display (for the sake of VM) should be
changed
weekly or fortnightly to ensure fresh display?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat agree

13 Do you agree that the impulse items like perfumes watches, socks, ties, gift items
and accessories should be close to the entry and exit doors for non-serious
customers and casual customers so that they can browse the whole store?

Totally agree
Somewhat agree
Neither agree nor disagree
 Totally disagree
Somewhat agree

14 Do you agree that the retailers must ensure control movement and crowd in
terms of
strategic positions of the exit doors?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
15 Do you agree that the retailers must ensure the distance between the aisles
so as to
facilitate the easy for movement of shoppers?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree

16 Do you agree that the retailers should avoid too many floors because shoppers
would
be tired?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree

17 Do you agree that the racks in the stores should not be too high?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree

18 Do you agree that the retailers should ensure that lighting should not be poor
and at
the same time should not be very bright and that shadows are essential?
Totally agree
Somewhat agree
 Neither agree nor disagree
Totally disagree
Somewhat disagree

19 Do you agree that the store display should not be contrast to the section in
which
it is and should not be unaesthetic?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree
20 Do you agree that the VM should be powerful enough to enable that the
customers
to visit as many aisles as possible?

Totally agree
Somewhat agree
Neither agree nor disagree
totally disagree
Somewhat disagree

21 Do you agree that the exposure through VM is a significant variable in

consumer
decision-making?

Totally agree
Somewhat agree
Neither agree nor disagree
Totally disagree
Somewhat disagree

22 Do you agree that VM is not just physical, architectural exercise; it must

encompass
aesthetics, the customers' desires and the business?

Totally agree
Somewhat agree
Neither agree nor disagree
totally disagree
Somewhat disagree

23 Please recommend some measures to make VM more effective, more

appealing and
more propelling.
 THANK YOU

THANK YOU FOR SPARING YOUR

VALUABLE
TIME IN GIVING RESPONSES TO THE
QUESTIONS IN THE QUESTIONNAIRE
THANK YOU FOR SPARING YOUR
VALUABLE
TIME IN GIVING YOUR RESPONSES.