Impact of Visual Merchandizing On Sales

IMPACT OF VISUAL MERCHANDIZING ON SALES
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UNIVERSITY OF MUMBAI
PROJECT REPORT
ON
IMPACT OF VISUAL MERCHANDIZING ON SALE

SUBMITTED BY
GAYATRI.M.MUDALIAR
(MARKETING)

ROLL NO-130
BATCH 2012-2014

UNDER THE GUIDANCE OF
PROF.NAMEETA SONASKAR.

KOHINOOR BUSINESS SCHOOL,
KURLA,MUMBAI.

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UNIVERSITY OF MUMBAI
PROJECT REPORT
ON
IMPACT OF VISUAL MERCHANDIZING ON SALE

SUBMITTED BY
GAYATRI.M.MUDALIAR
(MARKETING)

ROLL NO-130
BATCH 2012-2014

UNDER THE GUIDANCE OF
PROF.NAMEETA SONASKAR.

KOHINOOR BUSINESS SCHOOL,
KURLA,MUMBAI.

4

A

Project Report

ON

Impact of visual merchandizing on sale
I n partial fulfillment of requirement

For the Award of Degree

MASTER OF MANAGEMENT STUDIES

( Marketing )

For
I MRB I nternational
Mumbai
Submitted to

Kohinoor Business School, Kurla

University of Mumbai

Submitted By

Ms.Gayatri.M.Mudaliar

( Batch 2012-2014 )

Under the guidance of

Nameeta Sonaskar

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DECLARATION

I hereby declare that the project report entitled Impact of visual merchandizing
on sale .Carried out at IMRB International is my work submitted in partial fulfillment of the
requirement for Degree of MASTER OF MANAGEMENT STUDIES (MMS),
UNIVERSITY OF MUMBAI from KOHINOOR BUSINESS SCHOOL, KURLA,
MUMBAI and not submitted for the award of any degree, diploma, fellowship or any similar
titles or prizes.

Date: Signature: _______________

Place: Mumbai Student Name: ___________

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CERTIFICATE

This is to certify that the project entitled Impact of visual merchandizing on
sale is successfully completed by Gayatri.M.Mudaliar during the second year of her course,
in partial fulfillment of the Masters Degree in Management Studies, under the University of
Mumbai, through KOHINOOR BUSINESS SCHOOL, Kurla, Mumbai-400070.

Date:

Place: Mumbai Nameeta Sonaskar

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AKNOWLEDGEMENT

This is the pleasure movement for me to exploit my energized intelligence. It is my
privilege to express my gratitude and respect to those who guided and inspired me in the
completion of this project.
I am deeply indebted to my project guide of the Kohinoor Business School.
Miss Nameeta Sonaskarfor giving me this opportunity to undergo my project in his
esteemed organization and for his timely suggestions and valuable guidance. He constantly
encouraged me and showed me the right path from day one till the complete of my project.
I am also thankful to Mr. Dhananjay for helping me to proceed in conducting the survey
and complete it on time. I am grateful to the Director, Faculties, administrative staff and the
librarian of Kohinoor Business School for providing me all the support required for successful
completion of my project.

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ADMISSION NO - ____________

MASTER OF MANAGEMENT STUDIES

KOHINOOR INSTITUTE OF MANAGEMENT STUDIES
YEAR OF SUBMISSION: AUGUST, 2013

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COMPANY CERTIFICATE

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TABLE OF CONTENTS

Chapter Sub chapter Content Page No

1.1 Executive Summary 10
2.1 Introduction to topic 12
2.1.1 Introduction to company 12
2.1.2 Organization structure 13
3.1 Literature review 14
3.1.1 Brief 14
3.1.2 Origin & progression 15
3.1.3 Five steps of sale 15
3.1.4 Importance of VM in todays era 16
3.1.5 Role of VM in promoting of sales 16
3.1.6 Strategic approach to Visual Merchandising 17
3.2 Project overview 19
3.2.1 Need of the study 19
3.2.2 Objective 19
3.2.3 Scope 19
3.2.4 Research Module 19
3.2.5 Limitation of the study 19
3.3 Pepsi Atom A view 20
3.3.1 SWOT analysis 21
4.1 Research Study 22
4.1.1 Study background 22
4.2 Data Analysis & interpretation 25
4.3 Findings & observation 44
4.4 Recommendation 46
5.1 Conclusion & Appendices 47
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5.1.1 Conclusion 47
5.1.2 References 48
5.1.3 Annexure 49

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LIST OF CHART
Chart 1 Age profile
Chart 2 Gender profile
Chart 3 Profession profile
Chart 4 Customer walk-in to retail store
Chart 5 Purpose of store visit
Chart 6 Notice - display
Chart 7 Reading of communication
Chart 8 Easy access to store
Chart 9 Attractive arrangement
Chart 10 Provocation
Chart 11 Reason for Purchase
Chart 12 Seen Pepsi Atom
Chart 13 Trials of Pepsi Atom
Chart 14 Repeat purchase of Pepsi Atom
Chart 15 Mode of Pepsi Atom communication
Chart 16 Mode in the store
Chart 17 Display provocation
Chart 18 Provocation parameters
Chart 19 Attractive display & sales boost

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PART 1

1.1 EXECUTIVE SUMMARY

With the growing mall culture on tremendous growth, unleashed potential of visual
merchandizing has been released and retailers/shopkeepers are no turning this heat on by getting
major impact on sales volume. This is my strategic study to understand 5 Ws of Visual
merchandizing. 5Ws are where (where does it impact), what (what does it impact), when (when
does it impact), why (why does it impact) and who (who does it impact). Through this project I
have tried to address these very much questions.

My study has been surrounded around Visual Merchandizing and its impact on sales. Thus Study
is spread across three different parts which involves understanding of IMRB as an organization
which has given me this opportunity and support to undertake this study, further I have tried to
indulge into concept of visual merchandizing and at last I have undertaken research to
understand impact of Visual merchandizing on sales through studying walking-in customers at
retail stores.

Study reveals that display is of prime importance that would help in easy and convenient
purchase as well as the reason for boost in the same. People are provoked to purchase even
impulse products if display is attractive and easy to find. Thus company can really do some
attractive visual merchandising and can boost up the sales.

Finally I found that Visual Merchandizing is really one parameter to boost volumes; particularly
for FMCG companies where sale is of prime importance.

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2 INTRODUCTION TO TOPIC

In this competitive scenario sales has been a very crucial and linked to marketing objectives. All
marketing related activities are now-a-days linked with sales and ROMI (return on marketing
investment). During early day company would do some sales promotions of provide some
display material to shops/outlets; however, today scenario has been changed and visual
merchandizing as a concept has emerged which not only guide company to identify appropriate
display location and material but also helps company to realize ROMI. So if a company provides
dangler to retail store or make some attractive display in a mall it makes sure that there is
positive impact on sale.

Visual merchandizing as a method to gain impact on sales has been recently into highly demand.
But how does it work? What are the objectives it needs to achieve? Does it really impact on sale?
These are some questions we will be evaluating through this project as we go in-dept
understanding of the case study.

Visual merchandizing strategically means arranging attractive display that would capture
customer walk-in eye balls and would make an attempt to either provide brand re-call or
motivate impulse sale at a time. Many a times it acts as a sales person wherein it communicates
brand or product message. Earlier concept of visual merchandizing was limited to luxurious
products; however, now-a-days it has been extended to retail merchandizing too wherein
companies like HUL, P & G, Pepsico & Coca-Cola are now using this to a greater extend.

Coming to Visual merchandizing; it is very critical for us to understand impact of visual
merchandizing on sales. Companies spend huge amount to get correct display at right place at
right time but does benefits really passes to sale or volumes. This will be the upcoming agenda
for the project wherein we will be trying to understand concept of visual merchandizing and how
does it impact on sales. We will be taking case study of recently launched Pepsi Atom wherein
company has done lot of retail front visual merchandizing. Research being part of the project we
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will connect to various customers across retail stores in Mumbai to understand their brand re-call
as well as the extent to which retail merchandizing has impacted Pepsi Atom volumes.
Visual merchandizing has become very popular as well as important amongst industry however
it is very sad that many companies are not able to realize full potential of this concept. Visual
merchandizing ensures that money is spent in smart way as well as there in ROMI on money
spent. Sale is ultimate target of any company and any activity being indulge is targeted towards
volume growth. Effective Visual merchandizing not only provides solution to marketing
objective but to sales objective as well. Thus it is a one solution to both.

I hope this in-depth study on evaluating impact of visual merchandizing on sale will be useful in
future for academic purpose.

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PART 2

2.1 COMPANY PROFILE

2.1.1 INTRODUCTION OF THE COMPANY

Established in 1971 and with over three decades of market research experience, IMRB
International is a pioneer in India in various research areas. Associated with a group of
international market companies such as the British Market Research Bureau (BMRB) and
Millward Brown International, IMRB International operates out of thirteen cities in India and has
associate offices in Sri Lanka, Bangladesh and Nepal. The 500 member strong IMRB
International promises high quality conceptualization, strategic thinking, execution and
interpretation skills on all its clients' research needs. In 1996, IMRB International managed 2,500
projects and 4,000,000 interviews. IMRB International is the only research company in India
today that offers the entire range of research based services to its clients. IMRB International's
specialised areas are consumer markets, industrial marketing, business to business marketing,
social marketing and rural marketing. IMRB International is the market research wing of J
Walter Thompson (JWT) - the leading advertising agency in India. JWT in turn belongs to the
Kantar Group, which in turn is a part of the WPP Group - the largest advertising group in the
world

The Kantar group was established in 1993, a London based holding company responsible for
WPP's worldwide information and consultancy interests. Kantar, is the world's largest survey
organization and is ranked 3rd overall. It comprises three global research businesses - Research
International, Millward Brown and Kantar Media Research and four regional ones - BMRB
International, IMRB International, Goldfarb and Winona. Each is a leader in its own area of
expertise or specialization. The research studies in over 130 countries. The Kantar group
specialized in:
Qualitative and quantitative research
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Tracking studies
International research
Predictive modelling
Media measurement
Data capture and handling
Strategic research
Customer handling

MRB International has acted as a catalyst in the development of market research infrastructure in
neighbouring countries. We work with associate companies in Sri Lanka (Lanka Market
Research Bureau) and in the Middle East (Arab Market Research Bureau), and through affiliates
in Australia , Singapore , Malaysia , Thailand , Indonesia , Philippines , Egypt , Tunisia , Nepal ,
Pakistan , Bangladesh and Myanmar .

IMRB International has been offering over 30 years of specialist research services to clients in
India and overseas on products and services covering the entire gamut of business and industry.
IMRB International today, operates out of its five full service offices in Mumbai, Delhi, Calcutta,
Chennai and Bangalore and is supported by 15 other regional centers for collection of survey
information that literally span the entire country. IMRB is able to provide the highest quality of
professional services to the utmost satisfaction of clients which include the small medium and
large scale industries, the government and public sector units, multinational corporations and
international companies that are eyeing the highly promising Indian market.

2.1.2 ORGANIZATION STRUCUTRE

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PART 3

3.1 LITERATURE REVIEW

3.1.1 BRIEF

Today's successful retailers make the most profitable use of every square foot of space in the
store and in the warehouse. Since this space is so costly, you must take a strategic approach to its
use. Floor patterns, location of merchandise, levels of inventory and appropriate displays are all
key factors in the proper use of space. Misuse of space can be as detrimental to our success as
poor buying or careless hiring. It is very important for every store to create a suitable atmosphere
and appealing presentations in order to trigger the consumer's buying decision. In a world where
you can find identical merchandise in more than one store, layout and presentation become key
differentiating factors.
Retail location has long been considered as important strategic business decision for a number of
reasons. First, consumer store choice decisions are influenced greatly by merchandizing
(Arrangement of merchandise) which denotes the relationship between consumer perception of
availability and characteristics of decision. Second, retailers may be able to develop a sustainable
competitive advantage through merchandizing. Merchandising plays an important role in
maintaining a balance between rack stock and the buffer stock. A proper visual merchandising
helps the retailer to increase the customer walk-ins and inturn increase the sales of the product.

Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus and
in perspective too. It educates the customers, creates desire and finally augments the selling
process. This is a nascent area of the Indian retail industry, therefore a professional program on
Visual Merchandising will go a long way in addressing this gap. The success of the program will
be reflected in the better presentations, displays, indoor and outdoor communication about the
stores
Oxford dictionary states Visual merchandizing as, Activity of promoting the sale of goods,
especially by their presentation in retail outlets
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By above definition, Visual Merchandizing is just not presenting of goods but an activity or
mode of promoting goods through good presentation, this showcases Visual Merchandizing as
very important task in sale of goods.

Barbara Farfan defines Visual Merchandizing as, display of products which makes them
appealing, attractive, accessible & engaging thereby promoting sales

However, the above definition describes this whole trade in very simplistic manner and covers
various attributes. It too describes that by managing all these activity, Visual Merchandizing is to
promote sales which by itself declares a sales promotion version

3.1.2 ORIGIN & PROGRESSION
Visual Merchandising has been around since the dawn of civilization, since humans started
selling merchandise to a customer. When a vendor arranged his goods to be more attractive for a
customer, or when a farmer put the biggest and ripest apples on top of the basket for consumers
to see and touch, that is visual merchandising. As the 20th century ended, and the new
millennium was entered, retailers are concerned with competition more than ever before. One of
the ways in which merchants of every product classification, both large and small, helped to
distinguish themselves from the others in the field, was through creative visual presentations.
The challenges that confront these specialists run the gamut from the display installations in their
stores to the development of designs for the environments. Today, Visual Merchandising has
become more sophisticated and more encompassing than arranging merchandise for easy access
to customers. Visual Merchandising elements are put into practice from designing the floor plan
of the store to the beautiful mannequins that grace the store floor. With the specialty marketing
of the 1990s, visual merchandising is a necessity to the industry.

3.1.3 FIVE STEPS OF SALE
The basic rule for any store is that it must sell its merchandise to the consumers; and this can be
done most effectively when all the principles of design and display are employed intelligently in
the form of Visual Merchandising. The study of visual merchandising educates people about how
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to fully understand the principles of design & display, and then apply them effectively to
generate sales through just five steps:
1. Attract and hold the attention of the passerby.
2. Arouse his or her interest in buying the merchandise displayed.
3. Create desire to want the product being featured in the store.
4. Win confidence to give the customer faith in the store and product.
5. Cause the decision to buy

3.1.4 IMPORTANCE OF VISUAL MERCHANDISING IN TODAYS ERA
The importance of visual merchandising in present scenario can be understood in:
Educating the customers about the product/service in an effective and creative way.
Establishing a creative medium to present merchandise in 3D environment, thereby enabling
long lasting impact and recall value.
Setting the company apart in an exclusive position.
Establishing linkage between products and marketing by keeping the product in prime focus.
Combining the creative, technical and operational aspects of a product and the business.
Drawing the attention of the customer to enable him to take purchase decision within shortest
possible time, and thus augmenting the selling process.

3.1.5 ROLE OF VISUAL MERCHANDISING IN PROMOTION OF SALES
Throughout the planning of the entire process, it is important to keep in mind that a continuing
promotional program should be established and executed. The best stores, with the best policies
and goods, can succeed only if the public knows the store is there and has a good current idea of
what merchandise is available. Following are some of the specific objectives of merchandisers
and sales personnel:
1. To communicate the store image to its target customers
2. To establish the store as a distinct authority
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3. To build long-term customer loyalty
4. To generate interest that will bring a steady flow of regular and new customers to the store.
5. To disseminate timely information and become a source of news of innovations.
6. To remind customers of their desire for new things
7. To encourage customers of their desire for new things.
8. To persuade customers to make purchase decisions.
9. To sell the merchandise to customers
10. To achieve reasonable profit.

3.1.6 STRATEGIC APPROACH TO VISUAL MERCHANDISING
Unfortunately, the days of running a traditional "Ma and Pa" operation, lacking any real business
sophistication, are long gone. A haphazard approach to store layout generates less than desired
results. You must squeeze every ounce of potential out of our store to make it a winner. How
you present store is a very strategic part of business. In order to position every item in its proper
location, you must have a far more detailed plan than the usual "It was the only place left
available, so that's where it ended up!"

Give best-selling merchandise the most favourable display areas in our store. There's no point in
making the job of selling products any more difficult than it needs to be. Consider these
suggestions for positioning our departments:

1) High margin/High Sales: If you have a winner, it can afford the "high rent" district in
store. Put it in best selling spaces. These are hot zones.

2) Demand Merchandise: Customers make a point of coming to store to get this
merchandise, and they will hunt for it. Put it in less valuable spaces and make them walk
by more impulse-related items.

3) Impulse Items: These are the unplanned purchases customers make on a shopping trip.
Items with high impulse success get great locations in the store. The cash desk area is a
prime location for these products.
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4) Related Merchandise: Even though it may be in separate departments, place products
near each other if they are coordinating or complementary items. This will make them
more visible to the customer and make shopping easier. Cross merchandising works.

5) Seasonal Stock: Some stores designate an area of the floor for merchandise that is on
hand for only a short time. This creates an efficient changeover of that area when a new
season arrives. In most stores, seasonal stock requires high visibility.

6) Department size: In order to help customers find them, smaller departments typically get
better positions in the store than larger departments. Placing a small department in a poor
visibility area is like putting the "kiss of death" on that department.

7) New Departments: If youre testing a new department or line of merchandise, give it the
best chance possible to succeed by placing it in a prime selling area. Keep in mind,
though, that within a short period of time it will need to earn the right to maintain a
position in hot zones.

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3.2 PROJECT OVERVIEW

3.2.1 NEED OF THE STUDY:
Visual Merchandizing is very uptrend now-a-days and companies now involve specialist Visual
Merchandisers to look upon the volumes; however this activity is manually managed by home
grown retail business. Thus I feel that there is a need to study this uptrend by taking up a case
study, evaluating it and make relative comments

3.2.2 OBJECTIVE:
Understand concept of Visual Merchandizing
Gauge impact of Visual Merchandizing on sales with the help of in-depth research module

3.2.3 SCOPE:
This study being for academic purpose, it involves understanding of concept of Visual
merchandizing, how it is important as well as gauging its impact on sales with the help of in-
depth research

3.2.4 RESEARCH MODULE:
An in-depth research has been conducted to understand that does really Visual Merchandizing at
retail stores provoke consumers to purchase products

3.2.5 LIMITATION OF THE STUDY:
Study ascertains various limits as below:
Evaluates concept of Visual Merchandizing from impact on sales POV (point of View)
Ascertains literature review from academic purpose
Limits to pages due to academic restriction

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3.3 PEPSI ATOM A VIEW

PepsiCo India expanded its cola portfolio with the launch of 'Pepsi Atom' and has roped
in Bollywood actor Sushant Singh Rajput as its brand ambassador. Pepsi Atom is the second
mainstream cola from PepsiCo India portfolio, after the company's flagship brand, Pepsi.
"Created for the Indian market, in collaboration with PepsiCo's global innovation team, it is a
result of extensive flavour development and consumer testing in the country.
Pepsi Atom is available across the country in various packaging including a 250 ml can at an
introductory price of Rs 15 and a 500 ml PET bottle at Rs 25. This will be followed by a massive
sampling and engagement exercise with over 1 million consumers across key centres.
The launch campaign of Pepsi Atom has brought spoof advertising back to the cola war turf after
years as PepsiCo seeks to take on the country's top cola brand Thums Up with its new cola brand
that is stronger and fizzier than Pepsi.
Thums Up has remained at the top with or without marketing support. Biryani with Thums Up is
almost a staple diet in Andhra Pradesh, one of the three largest cola markets in the country. This
is the second time PepsiCo is trying to destabilise Thums Up, which has the strongest
carbonation among all beverages. It had spiked its flagship cola Pepsi with extra fizz in Andhra
Pradesh four years ago. The move didn't work.
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Atom looks like a more serious attack. PepsiCo says it's its biggest launch in recent years. And it
has debuted by directly taking pot shots at Thums Up. The on-air ad campaign projects the more
relevant and relatable definition of masculinity, as opposed to mindless action.
For at least 10 years, Thums Up has been showing extreme daredevilry in its advertising, through
actors such as Akshay Kumar and now Salman Khan. The Atom ad shows a macho man getting
slapped by a woman after he mistook her husband for a thief and then the smart guy comes and
offers him Atom.
3.3.1 SWOT analysis:
Strength Weakness
A brand from Pepsi, can leverage against
Pepsi market loyalty
Stronger distribution network that would
help deeper penetration
Offering masculine proposition which is
next to Thumps up
Pepsi has a perception of female drink and
the same attachment with Pepsi Atom
could lead to similar brand image

Opportunity
Stands a chance to beat Coca-cola and
retain second position after Thumps-up
Can stand a chance for improvement of
brand perception
Threat
Thumps-up has survived coca-cola strategy
to defeat, it can very well defeat Pepsi-
Atom

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PART 4
4.1 RESEARCH STUDY
4.1.1 STUDY BACKGROUND

Research methodology:
Research in common parlance refers to a search for knowledge .Also can be defined as a
scientific and systematic search for pertinent information on a specific topic. Research is a
careful investigation or inquiry especially through search for new facts in any branch of
knowledge.

Type of research:
The research design comprise of the plan and structure of investigation conceived so as to arrive
at the responses to the research queries. It there by addresses the aims and objectives of the
study, both descriptively and analytically.

Research objective:
Does Visual Merchandizing at retail stores really provoke customer to purchase products?

Sampling technique:
The sampling technique adopted for the study is non-probability Random sampling technique
according to the convenience of the researcher. A questionnaire was administered to different
customer walking into retail stores to purchase their day-to-day requirement

Sample Design
Marketing research can classify in one of three categories:
Exploratory research
Descriptive research
Causal research

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Exploratory research has the goal of formulating problems more precisely, clarifying concepts,
gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search, surveying certain people about
their experiences, focus groups, and case studies. When surveying people, exploratory research
studies would not try to acquire a representative sample, but rather, seek to interview those who
are knowledgeable and who might be able to provide insight concerning the relationship among
variables. Case studies can include contrasting situations or benchmarking against an
organization known for its excellence. Exploratory research may develop hypotheses, but it does
not seek to test them. Exploratory research is characterized by its flexibility.
Descriptive research is more rigid than exploratory research and seeks to describe users of a
product, determine the proportion of the population that uses a product, or predict future demand
for a product. As opposed to exploratory research, descriptive research should define questions,
people surveyed, and the method of analysis prior to beginning data collection. In other words,
who, what, where, when, why, and how aspects of the research should be defined. Such
preparation allows one the opportunity to make any required changes before the costly process of
data collection has begun. There are two basic types of descriptive research: longitudinal studies
and cross-sectional studies. Longitudinal studies are time series analyses that make repeated
measurements of the same individuals, thus allowing one to monitor behavior such as brand-
switching. However, longitudinal studies are not necessarily representative since many people
may refuse to participate because of the commitment required. Cross-sectional studies sample
the population to make measurements at a specific point in time. A special type of cross-
sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience
the same event within the same time interval over time. Cohort analyses are useful for long-term
forecasting of product demand.
Causal research seeks to find cause and affect relationships between variables. It accomplishes
this goal through laboratory and field experiments.
The research associated to my project is EXPLORATORY RESEARCH.
Sample size
Data is collected using a sample of 100 Respondents.
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Sample description:
Sample mainly consists of data from the primary sources that are utilized for the purpose of this
study. This is done by means of administrating questioners to different customer walking into
retail stores. Secondary data like company journals, newsletters, records etc. were also relied on
for retrieving further information.

Geographic segmentation:
Geographic segmentation calls for dividing the market into different geographical units such as
Hyper markets located at Lower parel, Kurla, Thane, Borivali, Andheri (20 respondents at each
location)

Analysis methodology:
Due to data collected was very minimal, statistical tabulation method has been administered

Limitation of the study:
Geography has been limited to 5 hypermarkets across Mumbai City
Being academic study, sample size has been limited to 100

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4.2 DATA ANALYSIS & INTERPRETATION:

Age profile:

Chart 1

Inference:
Below is the age profile I observed during my customer feedback study:

31 customers are in the age group of 20-30

31
26
10
33
0
5
10
15
20
25
30
35
20-30 31-40 41-50 51-60
No. of respondents
No. of respondents
31

Gender profile:

Chart 2

Inference
Below is the gender profiling being observed during primary study:
67 customers were Male
33 customers were female

67
33
0
10
20
30
40
50
60
70
80
Male Female
%
%
32

Profession profile:

Chart 3

Inference:
23 respondents are salaried
12 respondents are professional
45 respondents are from business background
20 respondents are students

23
12
45
20
0
5
10
15
20
25
30
35
40
45
50
Salaried Professional Business Studying
No. of respondents
No. of respondents
33

How many times in a week do you walk-in to this retail store?

Chart 4

Inference:
32 respondents visit store ever day
41 respondents visit store once a week
20 respondents visit store twice a week
7 respondents visit store more than twice a week

32
41
20
7
0
5
10
15
20
25
30
35
40
45
Everyday Once a Week Twice a Week More than twice
No. of respondents
No. of respondents
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For what purchase do you come to this store?

Chart 5

Inference:
89% respondents comes to purchase their daily need
11% respondents comes to check out new items

89
11
0
10
20
30
40
50
60
70
80
90
100
Daily need Check out new launched
%
%
35

When you are at this store do you notice display/presentation of products?

Chart 6

Inference:
68 respondents said that they do notice display/presentation of the products when they visit
store
32 respondents said that they do not notice the same

68
32
0
10
20
30
40
50
60
70
80
Yes No
No. of respondents
No. of respondents
36

Do you read communications/signages etc?

Chart 7

Inference:
41 respondents said that they make it a point to read communication & signages when they
visit store
59 respondents said that they refrain it from reading

41
59
0
10
20
30
40
50
60
70
Yes No
No. of respondents
No. of respondents
37

Do you find it easy to get product you wanted?

Chart 8

Inference:
81 respondents said that they find it easy to get product they are searching for
19 respondents said that they find it difficult to get product during their visit to a store

81
19
0
10
20
30
40
50
60
70
80
90
Yes No
No. of respondents
No. of respondents
38

Does any attractive arrangement or presentation made provoke you to buy that product?

Chart 9

Inference:
74 respondents said that any attractive arrangement or presentation provoke the to buy
product
26 respondents said that it does not provoke them

74
26
0
10
20
30
40
50
60
70
80
Yes No
No. of respondents
No. of respondents
39

Have you purchase products displayed in front of your eye or have provoked you?

Chart 10

Inference:
11 respondents said that they purchase products displayed in front of their eye
89 respondents said that it is majorly impulse purchase

11
89
0
10
20
30
40
50
60
70
80
90
100
Purchase in front of eye Impulse purchase
No. of respondents
No. of respondents
40

Why did you purchase the same?

Chart 11

Inference
19% respondents said that it was properly arranged
56% respondents said that it was easy to find
11% respondents said that it was just an impulse
33% respondents said that it is easy to reach & convenient

10
56
11
33
0
10
20
30
40
50
60
it was properly
arranged
It was easy to find Just an impulse Easy to reach,
convinient
%
%
41

Have you seen new Pepsi Atom?

Chart 12

The study reveals that all 100% respondents have seen Pepsi Atom

100
0
0
20
40
60
80
100
120
Yes No
No. of respondents
No. of respondents
42

Have you tried the same?

Chart 13

Inference:
43% respondents have made it a point to purchase and taste Pepsi Atom
57% respondents have not tried the same

43
57
0
10
20
30
40
50
60
Yes No
No. of respondents
No. of respondents
43

Did you purchase it for second time or more?

Chart 14

Inference:
29% respondents said that they have purchased for second time
71% respondents said that they have purchase more than second time

29
71
0
10
20
30
40
50
60
70
80
Second time More than second time
%
%
44

From where did you come to know about Pepsi Atom?

Chart 15

Inference:
56 respondents said that they came to know from this particular store
14 respondents said that they have came to know from TV commercial
20 respondents said that they came to know from friends
10 respondents said that they came to know from Paper AD

56
14
20
10
0
10
20
30
40
50
60
From this store From TV
commercial
From friends Paper AD
No. of respondents
No. of respondents
45

How did you come to know from this store?

Chart 16

Inference:
100 % respondents said that they came to know through product display done at this store

100
0
0
20
40
60
80
100
120
Was displayed Helper told
No. of respondents
No. of respondents
46

Did display provoke you to purchase and did you purchased?

Chart 17

Inference:
63 respondents said that it provoked to purchase
37 respondents said that it does not provoked them for purchase

63
37
0
10
20
30
40
50
60
70
Yes No
No. of respondents
No. of respondents
47

What parameter provokes you to purchase a product?

Chart 18

Inference:
34 respondents said that attractive display provokes them to purchase the product
13 respondents said that need of the product provokes them to purchase the product
41 respondents said that easy to find and signage guidance provoked them to purchase the
product
12 respondents said that properly arranged product provoked them to purchase product

34
13
41
12
0
5
10
15
20
25
30
35
40
45
attractive display Need of product Easy to find,
signage guidance
properly
arranged
No. of respondents
No. of respondents
48

Do you feel that attractive display of product as well as proper arrangement will help to
boost sales?

Char 19

Inference:
72 respondents feel that attractive display would help to boost sales
28 respondents said that attractive display will not help to boost sales

72
28
0
10
20
30
40
50
60
70
80
Yes No
No. of respondents
No. of respondents
49

4.3 FINDINGS & OBSERVATIONS

Majority of the respondent were from the age group of 20-30 years and 51-60 years. Thus
survey has covered majority of the customers from both the end of age pyramid
Survey results found that 67% of the respondents were male who travelled to the shop
whereas 33% respondents were female who travelled to the shop
From professional perspective, 45 respondents were from business background & 23
respondents were from the salary background
Majority of the customers walk once a week into the retail outlet where as 32% respondents
walk everyday to retail outlet
89% respondents comes to the store for purchase of their daily need item and balance 11%
respondents come to store to check out new items
Study reveals that majority of the respondent who travelled to the store noticed the product
display and presentation at the store. They try to find out the same regarding during store
visit
Many of them who travel to store also tries to read signages or communication being
mentioned at the store while majority of them refrain from doing the same
We were quiet sure that question to this answer would be much positive which too reveals
from the survey that majority of the respondent said that when they visit store, they find it
easy to locate things/products they wanted to purchase. This makes their purchase easy &
convenience
Visual merchandising do really works wherein majority of respondent said that any kind of
attractive presentation or arrangement made inside store provokes them to buy product
Impulse purchase was really making noise as many customers did feel that when they went to
purchase they have majorly done impulse purchase. This is where visual merchandising
would make really sense as store would sell majority of non-core items through use of visual
merchandising
Reason for purchase of goods was more concern with easy to find as well as easy to reach.
This is due to properly arrangement of goods at the store
Pepsi Atom has been noticed by all respondents; however, there are less trials as well as
lesser repeat purchase
50

Visual merchandising has been of too much effective because people have come to know
about visual merchandising from the stores they have visited and display was the major
responsible area from where people came to know about the product
Display is the major reason for provoking purchase as cited by majority of the respondents
However, Majority of the respondent cited that easy to find product makes them to purchase
that product

51

4.4 RECOMMENDATION

Arrangement of product display needs to be made appropriately in order to make visual
merchandising effective
As we can see from survey that Pepsi Atom was observed by all respondents however the
purchase ratio is to up to the mark. Thus visual merchandising was not that effective in Pepsi
Atom case as there were neither high purchase rate nor trials rate
As majority of customers walk in either everyday or once in a week, stores are very
important form visual merchandising point of view and thus there is a need that Pepsi Atom
should take this scenario very seriously
During our visit to the store we did not identified any attractive presentation of Pepsi Atom
and it was primarily product display, thus we feel that an attractive POP or message at the
entrance would make a difference
We find that result of low trials were due to low visual merchandising, thus product was not
being focused
The reason for low repeats is due to continuous shifting of position, during 1
st
week of the
visit it was displayed in front of entrance however, for next week position of the same has
been changed. These shifts focus of the customer during their next visit. This should be
avoided
There should be much focus on display and product presentation because what we observed
that customers who walk in does make a point to read around the spaces
Companies should really look into attractive presentations of the product that makes sell of
non- core products easily

52

PART 5
5.1 CONCLUSION & APPENDICES
5.1.1 CONCLUSION
As we have seen throughout the study that visual merchandising has taken quiet a niche place
into the industry so be it a fashion industry or FMCG company or Accessories industry, visual
merchandising is of very important.

What we have observed from the survey is that visual merchandising is of significance
importance from sales point of view. A good visual merchandising can be very effective and
helps to boost sales whereas a bad visual merchandising as in the case of Pepsi Atom we
observed can be either moderate effective or non-effective.

Based on the facts we studied during our primary research, we cannot deny that visual
merchandising does not have any role on impacting sales, yet there is a need to understand that
impact can be either ways. Many a times we see during our visit to hyper market that some of the
products are very well displayed in front of our eyes and easy to find where as many of the
products require effort to locate, these are non core products and less beneficial to company;
however, what we locate easily are the products most beneficial to the company and that is the
one which company wants you to purchase. This is all play of visual merchandising that decides
right product placement at right place at right time.

There is still need to understand customer evolution which is still evolving from places to places
but visual merchandising will be a parallel to customer psychology that goes hand in hand.
Whenever there is an evolution of customer buying/thinking process, there will be an up
gradation of visual merchandising.

53

5.1.2 REFERENCES
Visual Merchandising, Swati Bhalla & Anuraag S, Tata Mc Graw Hill, 2010
Visual Merchandising, Tony Morgan, Business economics, 2008
Visual Merchandising & Display, Martin M. Pegler, Fairchild Publications, 2006
Visual Merchandising the business of merchandise presentation, Cengage Learning, 1996
Marketing Research, Rajendra Nargundkar, Tata Mc Graw Hill, 2012
retailbiz.com
retailyatra.com
imagesretail.com

54

5.1.3 ANNEXURE

QUESTIONNAIRE

Dear Sir,
I am Gayatri Mudliar from Kohinoor Institute of Management Studies and as a part of my
academic study I am understand impact of display, presentation done at store on sales. I would
request you to spare some time with me and help me fill in below questionnaire, your feedback
will b very valuable to me.
Name:

Please give me Age profile:
20-30
31-40
41-50
51-60

Please tick gender from below:
Male
Female

Kindly tick appropriate professional profile from below:
Salaried
Professional
Business
Studying

55

How many times in a week do you travel in this retail store?
Everyday
Once a week
Twice a week
More than twice

For what purpose do you come to this store?
Daily need
Check out newly launched

When are you at this store do you notice display/presentation of products?
Yes
No

Do you read communication/Signages etc?
Yes
No

Do you find it easy to get product you wanted?
Yes
No

Does any attractive arrangement or presentation made would provoke you to buy that product?
Yes
No
56

Have you purchased products displayed in front of your eye or have provoked you?
Purchase in front of eye
Impulse purchase

Why did you purchase the same?
It was properly arranged
It was easy to find
Just an impulse
Easy to reach, convenient

Have you seen new Pepsi Atom?
Yes
No

Have you tried the same?
Yes
No

Did you purchase it for second time or more?
Second time
More than second time

From where did you come to know about Pepsi Atom?
From this store
From TV commercial
57

From friends
Paper AD

How did you came to know from this store?
Was displayed
Helper told

Did display provoke you to purchase & did you purchase?
Yes
No

What parameter generally provokes you to purchase a product?
Attractive display
Need of product
Easy to find
Properly arranged

Do you feel that attractive display of product as well as proper arrangement will help to boost
sales?
Yes
No

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