Visual Merchandising Impact Study

STUDY ON
IMPACT OF
VISUAL
MERCHANDSI
NG IN RETAIL
MARKETING
[PROJECT REPORT]
Submitted by: SURENDHAR.D, II yr. MBA, Rai Business school Lucknow.
STUDY ON IMPACT OF VISUAL

MERCHANDISING IN RETAIL MAKETING
PRACTICED AT
BIG BAZAAR
(PART OF FUTURE RETAIL GROUP)
PONDY BAZAAR,
LUCKNOW
SUBMITTED BY
SURENDHAR DHANDAPANI
II yr., MBA
OF
RAI BUSINESS SCHOOL,
TEYNAMPET, LUCKNOW.
A PROJECT REPORT SUBMITTED TO THE

FACULTY OF BUSINESS ADMINISTRATION
In partial fulfillment of the requirements of the program
For the award of the internal marks.
DECLARATION
I D. Surendhar, a student of MBA, Rai Business School, Teynampet,
Lucknow. hereby, declare that the project work titled A STUDY ON IMPACT
OF VISUAL MERCHANDISING WITH REFERENCE To BIG BAZAAR,
Submitted to the Rai Business School in partial fulfillment of the requirement
for the award of the degree of Master of Business Administration is a record
of Bonafide research carried out by me under the guidance of Mrs. Vinitha
Prasad, Senior Lecturer, Rai Business School and no part of it has been
submitted for any other degree or diploma.
Place: CHENNAI
Date:
D.SURENDHAR
STUDY ON IMPACT OF VISUAL MERCHANDISING
ACKNOWLEDGEMENT
An
endeavor over a long period can be successful only
with the advice and support of many well - wishers. I take

this opportunity to express my gratitude and appreciation
to all of them.
Firstly I thank the Almighty who has been with me from
the beginning of this project. Secondly, I would like to
thank all my faculties at RAI business school for their
encouragement and arousing the management skill in me
to certain level which opened up an opportunity for
internship which of course part of my course.
I would also like to thank Prof. Venkatesan, Head,
Academics and Mr. Ilango Manager Placement division of
Rai Business School, Lucknow, for providing me full
support to complete my internship.
I would also like to thank Mrs. Vinita, my project mentor
at the Rai business school, Lucknow who guided me in
the successful completion of the project.
Acknowledgements
Page 1

I am deeply indebted to express my heartfelt thanks to
Mr. SHENBAGARAJAN, Senior Executive (HR), Future Value
Retail Ltd, Lucknow for giving me permission to do the
project in the organization and his support and guidance
to complete this project.
My family and friends also supported me with the study
and encouraged me a lot and I am thankful for it.
D.SURENDHAR
II yr. MBA
Acknowledgements
Page 2
ABSTRACT
This
5 days of mini
project was organized by the
college and put the students
directly to the fields of
market is mainly aimed for evaluating the knowledge of

the student and to give him a chance to self-evaluate
himself and to improve him in the areas needed. Also
gives the chance to test practically with concepts
learned by the student from books. Also provides
opportunity for the student to understand the industry
in which they are going to work after their graduation.
This project report has got two sections.
The first section deals with the overall view of Indian
retail industry and the company profile for future group
along with their vision & mission statement
The second section has the details about study on the
impact of visual merchandising in influencing the
consumers buying behavior.
PROJECT REPORT
Page
CONTENTS
CHAPTER
PARTICULARS
NO
SECTION I
05
1.1 INTRODUCTION
06
1.2 NEED AND IMPORTANCE FOR

THE STUDY
1.3 INDIA RETAIL INDUSTRY OVER
VIEW
PAGE NO
07
09
1.4 COMPANY PROFILE
11
SECTION - II
17
STATEMENT OF OBJECTIVES
18
2.1 PRIMARY OBJECTIVE
18
2.2 SECONDARY OBJECTIVE
18
3.1 REVIEW OF LITERATURE
3.2 VISUAL MERCHANDISING

STRATEGIES FOLLOWING AT BIG
BAZAAR
19
21
23
3.3 CONCEPTUALIZATION
RESEARCH METDOLOGY
PROJECT REPORT
4.1 RESEARCH DESIGN & DATA

COLLECTION
24
24
4.2 DATA ANALYSIS PROCEDURE
24
4.3 LIMITATIONS OF THE STUDY
25
Page
4.4 METHOD ADOPTED FOR THE

EXPERIMENT
4.5 DATA ANALYSIS AND
INTERPRETATION
25
26
4.6 FINDINGS
28
4.7 RECOMMENDATIONS
30
CONCLUSION
32
BIBLIOGRAPHY
33
PROJECT REPORT
Page
SECTION I
PROJECT REPORT
Page

Introduction
I chose BIG BAZAAR at Pondy bazaar in Lucknow to do
my project under the topic A STUDY ON IMPACT OF
VISUAL MERCHANDISING, a unit of FUTURE GROUP
is one of the most well-known Retail firms in India. I
found Retail business appropriate for the topic as this is
the only business which gives importance for visual
merchandising and future group is one such firm a
leading player in the industry and also encourages
students like me to conduct this this kind of studies in
their
outlets
and
providing
proper
support
and
assistance
PROJECT REPORT
Page
NEED AND IMPORTANCE OF VISUAL

MERCHANDISING
Visual merchandising today forms a critical element of
retailing. Besides the facade and windows, which are
clearly done up with an objective to attract passer-bys
and induce walk-ins, there is also in-store decor that is
designed to enhance the customers comfort and
convenience
while
shopping
and
overall,
offer
superior shopping experience.

Consumer behavior studies have confirmed that the
lure of a beautifully done up show window and a
tastefully decorated facade, more often than not, prove
irresistible as they walk in to check out what is on offer.
It also ensures exclusivity since no two stores should
look alike. Besides, when the mood and theme of such
displays change at regular intervals, it makes certain
that the store remains top of mind. Loyal customers
have often been known to anxiously wait for the next
display. Stickiness in retail formats is also ensured by
the imaginative use of colors, lighting, space, furniture
and visual elements with regard to in-store displays.
Once customers walk in, it is but imperative to ensure
that they enjoy their first encounter with the store.
PROJECT REPORT
Page

After all, repeat visits will only happen if a customers
first visit is a memorable one. The logical arrangement
of counters, with clear passageways allows for easy
access to merchandise.
Rather than getting lost in the big space that most
large stores are, the customer feels more in control.
Space is allocated to various product categories taking
into
account
the
number
of
SKUs
stocked
and
shelves/counter space requirements are worked out

accordingly.
PROJECT REPORT
Page
Clear passages are provided for products, which require

touch and feel. All impulse purchase driven products
are also clearly displayed so that the customers can
reach them without any hindrance. Also, it has been
observed that when a person enters a room, the human
eye moves in a Z pattern, i.e. from rear left of the room
to right rear, followed by front left of the room to front
right. Care should be taken to do up the rear left end of
the room in an appealing manner so as to guide the
direction
of
vision
and
keep
shopper
visually
interested.
A great deal of research has been undertaken on the
impact of lighting on a customers purchase behavior.
Results clearly indicate that in general, stores that are
brightly lit, with the lights cleverly blending with the
interiors lead to higher customer comfort, and as such,
more sales.
PROJECT REPORT
Page
INDIAN RETAIL INDUSTRY AN OVERVIEW

India retail industry is the largest industry in India, with
an employment of around 8% and contributing to over
10% of the country's GDP. Retail industry in India is
expected to rise 25% yearly being driven by strong
income growth, changing lifestyles, and favorable
demographic patterns.
The BMI India Retail Report for the third-quarter of
2010, forecasts that the total retail sales will grow from
US$ 353 billion in 2010 to US$ 543.2 billion by 2014.
With the expanding middle and upper class consumer
base, there will also be opportunities in India's tier II
and III cities. The greater availability of personal credit
and a growing vehicle population to improve mobility
also contribute to a trend towards annual retail sales
PROJECT REPORT
Page

growth of 11.4 per cent. Mass grocery retail (MGR)
sales in India are forecast to undergo enormous growth
over the forecast period. BMI further predicts that sales
through MGR outlets will increase by 154 per cent to
reach US$ 15.29 billion by 2014. This is a consequence
of India's dramatic, rapid shift from small independent
retailers to large, modern outlets.
BMI forecasts consumer electronic sales at US$ 29.86
billion
in
2010,
with
over
the
counter
(OTC)
pharmaceutical sales at US$ 3.28 billion. The latter is

predicted to be the fastest growing retail sub-sector
and BMI forecasts that sales will reach US$ 6.18 billion
by 2014, an increase of 88.5 per cent.
Moreover, for the 4th time in five years, India has been
ranked
as
the
most
attractive
nation
for
retail
investment among 30 emerging markets by the USbased global management consulting firm, A T Kearney
in its 8th annual Global Retail Development Index
(GRDI) 2009. India remains among the leaders in the
2010 GRDI and presents major retail opportunities.
India's retail market is expected to be worth about US$
410 billion, with 5 per cent of sales through organized
retail, meaning that the opportunity in India remains
immense. Retail should continue to grow rapidlyup to
PROJECT REPORT
Page

US$ 535 billion in 2013, with 10 per cent coming from
organized retail, reflecting a fast-growing middle class,
demanding higher quality shopping environments and
stronger
brands,
the
report
added.
Bharti
Retail
strengthened its position in northern India by opening

59 stores, Bharti Wal-Mart is expected to open 10 to 15
wholesale locations in the next three years, and Marks
& Spencer is considering plans to open additional
outlets in the next few years.
Established retailers are tapping into the growing retail
market
by
introducing
innovative
store
formats.
Spencer's Retail, More (owned by Aditya Birla Group)

and Shoppers Stop (owned by K Raheja Group) already
plan to expand.
According to a McKinsey & Company report titled 'The
Great Indian Bazaar: Organized Retail Comes of Age in
India', organized retail in India is expected to increase
from 5 per cent of the total market in 2008 to 14 - 18
per cent of the total retail market and reach US$ 450
billion by 2015.
Furthermore,
according
to
report
titled
'India
Organized Retail Market 2010', published by Knight

Frank India in May 2010 during 2010-12, around 55
PROJECT REPORT
Page

million square feet (sq. ft.) of retail space will be ready
in Mumbai, national capital region (NCR), Bengaluru,
Kolkata,
Lucknow,
Hyderabad
and
Pune.
Besides,
between 2010 and 2012, the organized retail real

estate stock will grow from the existing 41 million sq. ft.
to 95 million sq. ft.
India continues to be among the most attractive
countries for global retailers. Foreign direct investment
(FDI) inflows between April 2000 and April 2010, in
single-brand retail trading, stood at US$ 194.69 million,
according to the Department of Industrial Policy and
Promotion (DIPP).
Leading watchmaker Titan Industries Limited plans to
invest
about
US$
21.83
million
for
opening
50
premiums watch outlets Helios in next five years to

attain a sales target of US$ 87.31 million. "We are
looking to open Helios outlets in Mumbai, Delhi,
Hyderabad, Kolkata, Lucknow, Pune, Ahmedabad etc. in
next 12 months," said Ajoy Chawla, Vice President
(Retail), Titan.
British high street retailer, Marks and Spencer (M&S)
plans to significantly increase its retail presence in
India, targeting 50 stores in the next three years. M&S
PROJECT REPORT
Page

currently operates 17 stores in India through a joint
venture (JV) with Reliance Retail.
Bharti Retail, owner of Easy Day storesupermarkets
and hyper martsplans to invest about US$ 2.5 billion
over the next five years to add about 10 million sq. ft.
of retail space in the country by then, according to a
company spokesperson.
Source: http://www.ibef.org/industry/retail.aspx
COMPANY PROFILE
FUTURE GROUP
The field of study was conducted at Big bazaar a unit of
Pantaloons Retail (India) Limited. Pantaloon Retail
(India) Limited, is Indias leading retailer that operates
multiple retail formats in both the value and lifestyle
segment
of
the
Indian
consumer
market.
Headquartered in Mumbai (Bombay), the company

operates over 12 million square feet of retail space, has
over 1000 stores across 71 cities in India and employs
over 30,000 people.
PROJECT REPORT
Page

The companys leading formats include Pantaloons, a
chain of fashion outlets, Big Bazaar, a uniquely Indian
hypermarket chain, Food Bazaar, a supermarket chain,
blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and
quality and Central, a chain of seamless destination
malls. Some of its other formats include Brand Factory,
Blue Sky, all, Top 10 and Star and Sitara. The company
also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India)
Limited, operates Home Town, a large-format home
solutions store, Collection i, selling home furniture
products and eZone focused on catering to the
consumer electronics segment. Pantaloon Retail was
recently awarded the International Retailer of the Year
2007 by the US-based National Retail Federation (NRF)
and the Emerging Market Retailer of the Year 2007 at
the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future
Group, a business group catering to the entire Indian
consumption space.
Future Group
PROJECT REPORT
Page

Future Group, led by its founder and Group CEO, Mr.
Kishore Biyani, is one of Indias leading business houses
with
multiple
consumption
businesses
space.
While
spanning
retail
across
forms
the
the
core
business activity of Future Group, group subsidiaries

are present in consumer finance, capital, insurance,
leisure and entertainment, brand development, retail
real estate development, retail media and logistics led
by its flagship enterprise, Pantaloon Retail, the group
operates over 12 million square feet of retail space in
71 cities and towns and 65 rural locations across India.
Headquartered in Mumbai (Bombay), Pantaloon Retail
employs around 30,000 people and is listed on the
Indian stock exchanges. The company follows a multiformat retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle
segment, the group operates Pantaloons, a fashion
retail chain and Central, a chain of seamless malls. In
the value segment, its marquee brand, Big Bazaar is a
hypermarket format that combines the look, touch and
feel of Indian bazaars with the choice and convenience
of modern retail.
In 2008, Big Bazaar opened its 100th store, marking the
fastest ever organic expansion of a hypermarket. The
PROJECT REPORT
Page

first set of Big Bazaar stores opened in 2001 in Kolkata,
Hyderabad and Bangalore.
The groups specialty retail formats include, books and
music chain, Depot, sportswear retailer, Planet Sports,
electronics retailer, Ezone, home improvement chain,
Home Town and rural retail chain, Aadhar, among
others. It also operates popular shopping portal,
futurebazaar.com. Future Capital Holdings, the groups
financial arm provides investment advisory to assets
worth over $1 billion that are being invested in
consumer brands and companies, real estate, hotels
and logistics. It also operates a consumer finance arm
with branches in 150 locations. Other group companies
include, Future General, the groups insurance venture
in partnership with Italys General Group, Future
Brands, a brand development and IPR company, Future
Logistics, providing logistics and distribution solutions
to group companies and business partners and Future
Media, a retail media initiative.
The groups presence in Leisure & Entertainment
segment is led through, Mumbai-based listed company
Galaxy Entertainment Limited. Galaxy leading leisure
chains,
Sports
entertainment
PROJECT REPORT
Bar
and
centres,
Bowling
F123.
Co.
Through
and
its
family
partner
Page

company, Blue Foods the group operates around 100
restaurants
and
food
courts
through
brands
like
Bombay Blues, Spaghetti Kitchen, Noodle Bar, The

Spoon, Copper Chimney and Gelato.
Future Groups joint venture partners include, US-based
stationery products retailer, Staples and Middle Eastbased Axiom Communications.
The groups flagship company, Pantaloon Retail was
awarded the International Retailer of the Year 2007, by
the US-based National Retail Federation, the largest
retail trade association and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress in
Barcelona.
Future Group believes in developing strong insights on
Indian consumers and building businesses based on
Indian ideas, as espoused in the groups core value of
Indianness. The groups corporate credo is, Rewrite
rules, Retain values.
Vision
PROJECT REPORT
Page

Future Group shall deliver Everything, Everywhere,
Every time for Every Indian Consumer in the most
profitable manner.
Mission
They share the vision and belief that our customers and
stakeholders shall be served only by creating and
executing future scenarios in the consumption space
leading to economic development.
They will be the trendsetters in evolving delivery
formats, creating retail realty, making consumption
affordable for all customer segments for classes and
for masses.
They shall infuse Indian brands with confidence and
renewed ambition.
They shall be efficient, cost- conscious and committed
to quality in whatever we do.
They shall ensure that our positive attitude, sincerity,
humility and united determination shall be the driving
force to make us successful.
PROJECT REPORT
Page
Core values
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and
business.
Respect & Humility: to respect every individual and be
humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas,
knowledge and information.
Valuing and Nurturing Relationships: to build long term
relationships.
Simplicity & Positivity: Simplicity and positivity in our
thought, business and action.
Adaptability: to be flexible and adaptable, to meet
challenges.
Flow: to respect and understand the universal laws of
nature.
PROJECT REPORT
Page

Major Milestones
2001- Three Big Bazaar stores launched within a span
of 22 days in Kolkata, Bangalore and Hyderabad.
2002- Food Bazaar, the supermarket chain is launched.
2004- Central - Indias first seamless mall is launched in
Bangalore.
2005- Group moves beyond retail, acquires stakes in
Galaxy Entertainment, Indus League Clothing and
Planet
Retail.
Sets
up
Indias
first
real
estate
investment fund Kshitij to build a chain of shopping

malls.
2006- Future Capital Holdings, the companys financial
is formed to manage over $1.5 billion in real estate,
private equity and retail infrastructure funds. Plans
forays into retailing of consumer finance products.
Home
Town,
home
building
and
improvement
products retail chain is launched along with consumer

durables format, Ezone and furniture chain, Furniture
Bazaar.
Future
Group
enters
into
joint
venture
agreements to launch insurance products with Italian

insurance major, General Forms joint ventures with US
office stationery retailer, Staples.
PROJECT REPORT
Page

2007- Future Group crosses $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and
brand development and retail-led technology services
become operational.
2008- Future Capital Holdings becomes the second
group company to make a successful Initial Public
Offering in the Indian capital markets.
Big Bazaar
crosses the 100-store mark, marking one of the fastest

ever expansion of a hypermarket format anywhere in
the world. Total operational retail space crosses 10
million square feet mark. Future Group acquires rural
retail chain, Aadhar present in 65 rural locations.
BIG BAZAAR
Big bazaar, Pondy Bazaar was the second store to make
an impact in the minds of the customer. It was opened
in the month of June, 2008. Situated in the midst of an
IT hub, it welcomes customers with exciting offers and
discounts. Pondy bazaar is among the few areas in
Lucknow that is full of activities with shopping malls,
eat out joints, restaurants etc. This also brings a lot of
competition for the store. Measures are taken to retain
the customers by training the employees to be polite
and vigilant.
PROJECT REPORT
Page

The various departments in the store are as follows:
Food bazaar department
Cash department
Plastics, Utensils and Crockery
Appliances
Footwear
New Business Developments
Depot
Home Linen
Furniture
Apparels
Visual merchandise
Human Resource
Administration
Ware house / Logistics
Maintenance
Customer Service Department
PROJECT REPORT
Page
PROJECT REPORT
Page
SECTION II
PROJECT REPORT
Page
STATEMENT OF OBJECTIVES
PRIMARY OBJECTIVES OF THE STUDY

A study on impact of merchandising products on the
consumers buying choice with reference to big bazaar
To identify the impact made by the modern
promotional techniques (signage, posters etc.,)
along with the traditional visual merchandising
strategies
(Lighting , design layout preference,
product display and cleanliness) in consumers

buying decision.
SECONDARY OBJECTIVES OF THE STUDY
Though the primary objective of the study is to study
the impact of visual merchandising in relation to
consumer buying decision the secondary objective of
the study is to acquire the knowledge on over all
function of Indian retail industry and its operations by
PROJECT REPORT
Page

observing a retail outlet BIG BAZAAR, Pondy Bazaar
Branch, Lucknow.
PROJECT REPORT
Page

LITERATURE REVIEW
VISUAL MERCHANDISING AN OVER VIEW
Visual merchandising is the activity of promoting the
sale of goods, especially by their presentation in retail
outlets.
This
includes
combining
products,
environments, and spaces into a stimulating and

engaging display to encourage the sale of a product or
service. It has become such an important element in
retailing that a team effort involving the senior
management,
architects,
merchandising
managers,
buyers, the visual merchandising director, designers,

and staff is needed.
Many elements can be used by visual merchandisers in
creating
displays,
including
color,
lighting,
space,
product information, sensory inputs such as smell,

touch, and sound as well as technologies such as digital
displays and interactive installations.
Purpose
Retail professionals display to make the shopping
experience
more
comfortable,
convenient
and
customer friendly by:
PROJECT REPORT
Page

Making it easier for the shopper to locate the
desired category of products and merchandise.
Making it easier for the shopper to handpick the
products.
Making it possible for the shopper to co-ordinate &
accessorize.
Informing about the latest fashion trends by
highlighting them at the strategic locations.
VM helps in:
Educating the customers about the product/service
in an effective and creative manner.
Establishing
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 fashions, product
design and marketing by keeping the product in
prime focus.
Combining the creative, technical and operational
aspects of a product and the business.
PROJECT REPORT
Page

Drawing the attention of the customer to enable
him to take purchase decision within shortest
possible time, and thus augmenting the selling
process.
PROJECT REPORT
Page

VISUAL MERCHANDISING STRATEGIES FOLLOWED
AT BIG BAZAAR
A Planogram allows planning of the arrangement of

merchandise on a given fixture configuration to support
sales through proper placement of merchandise by
Style, Option, Size, Price points, etc. It also enables a
chain
of
stores
to
have
the
same
merchandise
displayed in a coherent and similar manner across the

chain.
At big bazaar they used the proper combination of each
of these elements to support ease of applicability to the
consumer and also increasing selection & enhancing
the merchandise display in a neat and organized
manner.
GIVING MERCHANDISE THE FOCAL POINT

At big bazaar they showcased the major fast moving
products within the overall display area in a way that
no prospective consumer will miss a product that they
were looking for. And in the entry stage itself they
displayed a proper map of the shop stating the brief
PROJECT REPORT
Page

description of products available in each floor along
with information for rest room and customer desk
areas. This helps in educating the consumer about the
detailed products and saves their time from unwanted
enquiries also helps them to engage more on their
shopping activity
PROJECT REPORT
Page

USING THE RIGHT CHOICE OF COLORS
Color is one of the most powerful tools in the Visual
Merchandising segment. It is a visual perceptual
property. Colors can be associated with emotions,
special occasions and gender. It attracts attention and
pulls more customers into the store. At big bazaar they
utilized the major advantage of this factor and used it
in the entire store for the arrangement of products.
During my project period I was put up in food bazaar.
There I noticed that in all the shelves they arranged the
packs based on color of the packs so that they formed
color gradients giving emphasize to strong color packs
and slightly saturating to the lighter shade packs. This
helps in grabbing the attention of the customer and
holding it for minimum of 5-10 seconds and also helps
them for effective scanning between the products
across the shelves without straining the eyes much.
DISPLAYTHEMES TO APPROPRIATELY SUPPORT

THE PRODUCT:
I did this project at Big Bazaar during their big day sales
or Mahabachat which will happen every year during
republic day and Independence Day. The sale lasts for 5
PROJECT REPORT
Page

days. For these 5 days they decorated the store with
themed displays of offers available during these
Mahabachat sales throughout the store and windows. It
sets the context in an aesthetically pleasing fashion,
presenting them in a way that would convert the
window shoppers into prospects and ultimately buyers
of the product.
CLEANLINESS:
Neat and clean arrangement is the foundation of an
inviting a successful visual display. A beautiful display
can be ruined by a cracked sign holder or an unclean
display environment. In big bazaar I noticed that they
took enormous effort in cleaning the floor and followed
an effective cleaning schedule of showcases and
display fixtures.
PROJECT REPORT
Page

CONCEPTUALIZATION
In conceptualizing the study, I have attempted to build
relationship
between
merchandising
behavior
key
(independent
(dependent
variables
i.e.,
visual
variable)
and
buying
variable).
According
to
the
literature review, I came to know that lighting, design

layout, product display and cleanliness are the main
variables of visual merchandizing. It is also necessary
to examine the relationship between two key variables
and other variables influenced on dependent variable.
This would enable me to interpret the findings in a
more comprehensive manner. The conceptual model
that has been developed indicating their relationship is
given below
Conceptual Model
Lighting
Design Layout
Visual MerchandizingBuying decision Behavior
Product Display
Cleanliness
PROJECT REPORT
Page

Courtesy: Visual merchandising and consumer
decision process for intimate apparel by Derry Law and
Joanne yip institute of textile and clothing,
the Hong Kong polytechnic university Hong
Kong.RESEARCH METHODOLOGY
DATA COLLECTION
The nature of research design chosen by me is almost a
descriptive one. So, as far as possible attempt was
made to gather primary data. In that context, a detailed
observation criterion was administrated, facilitating the
observations process. The primary research was carried
out in BIG BAZAAR T-Nagar branch, Lucknow. And
information was collected from customers who were
purchasing products from the supermarket at the time
of
the
study.
Additionally,
secondary
data
for
conceptualization and operationalization of the matters

and
other
purposes
were
also
utilized
through
textbooks and web sites etc.

Data were collected through observations from 1000
consumers from four different age groups i.e. 20-30,
30-40, 40-50, 50-60 who walked in to the store at the
time of study. There were no any rejected forms due to
field investigation and personally filled criterion forms
PROJECT REPORT
Page

with observation. Most of the data pertaining to this
study have been collected from customer sample
drawn from randomly.
DATA ANALYSIS PROCEDURE
Descriptive
method
was
used
in
presenting
and
analyzing the data. Descriptive tools such as frequency

counts and percentages calculated for the statements
on the criterion form in order to determine the impact
of in store promotions on buying decisions.
LIMITATIONS OF THE STUDY:
Apart from visual merchandising there is the influence
of other mediums like television, newspaper and radio
used for communicating the mahabachat sale at BIG
BAZAAR this has got the strong influence in buying
decision.
Since i chose the busy retail out let like BIG BAZAAR
and that too during the period of big day sales its bit
tough for me to do the observations in a detailed
manner.
How strong a marketer/ promoter is trying to promote
the product if it is not needed for the customer then the
PROJECT REPORT
Page

customer wont be a prospective customer for that
marketer
METHOD ADOPTED FOR THE EXPERIMENT

At big bazaar during the Mahabachat sale our aim was
to sell the maximum combi packs of provisions.
The following were the combi packs bundle they made:
Rs.444 5 kgs of sugar, rice and golden harvest
atta
Rs.555 5 kgs of pills burry atta, tilda long grain
rice and 5 liters Gemini refined sunflower oil
Rs.575 5 kgs of sugar, tilde long grain rice and 5
liters fortune refined sunflower oil
Rs.589 5 kgs of sugar, aashirvad atta and 5 liters
gold winner refined sunflower oil
Rs.625 5 kgs of hello royal basmati rice, pills
burry atta and 5 liters
gold winner refined
sunflower oil
PROJECT REPORT
Page

Rs.649 5 kgs of aashivad atta, daawat devya
basmati rice and 5 liters gold winner refined
sunflower oil.
For the first 3 days we didnt adopt any systems for
the promotion, we sold average of 200 combi packs.
For the fourth and fifth day we were given targets for
the sale of combi packs. So my team leader decided
to add up extra visual merchandise to make the
customer available of those packs. So we decided
two place one close to the customer bag zone there
we displayed all the combi packs in a decorated table
along with the signage displaying the offers in an
attractive way and the second place was quite close
to customer service desk the entry for the customers
to the shop we adopted the same method as earlier.
Ive enclosed the details for one hour of the study as
it was very tough to record the actual data for over a
period of time. But the end result was we achieved
the targets for all these days. For the fourth day we
were given target of 300 combi packs and we sold
around 320 packs and for the closing day we got the
target of 400 and sold close to 447 packs. Over all
PROJECT REPORT
Page

the method worked very well and played a vital role
in achieving the targets.
DATA INTERPRETATION
Impact of visual merchandising on consumer
buying behavior across the age groups
AGE GROUP
20-30
30-40
40-50
50-60
IMPACT
OF VM
FREQUENCY
168
599
135
98
1000
PERCENTAG
16.8
59.9
13.5
9.8
100
Impact of visual merchandising on consumer buying behavior across the age groups
700
600
500
400
FREQUENCY
300
200
100
0
20-30
PROJECT REPORT
30-40
40-50
50-60
Page
Factors involved in Visual Merchandsing based

on time spent
TIME SPENT
FACTOR
TOTAL
PERCENTA
GE
0-5 sec
05-10
10-15
sec
sec
SIGNAGES
31
55
108
194
19.4
POSTER
174
47
84
305
30.5
THEMED PRODUCT
251
50
10
310
31
15
56
120
191
19.1
DISPLAYS
INSHOP
PROMOTIONS
Grand Total
PROJECT REPORT
1000
100
Page
PROJECT REPORT
Page

VISUAL MERCHANDIZING AND CONSUMERS
BUYING BEHAVIOR.
This study focused on the visual merchandizing and
Factors involved in Visual Merchandsing based on time spent
consumer buying decisions. The main objective of this
study was to examine the influence emerged from

19% of new medias into
visual merchandizing19%
and the usage
the VM such as postages, signages themed displays for

SIGNAGES
POSTER
THEMED PRODUCT DISPLAYS
INSHOP PROMOTIONS
influencing
consumers
buying decisions.
The finding
31%
shows
that
31%
influence
emerged
from
visual
merchandising on consumers buying decisions is

strong. From this it is clearly shown that highest mean
value of visual merchandising is 59.9 from the age
group of 30 -40 shows that people belonging to this
group
is
highly
attracted
towards
VM.
It
was
represented in strongly influenced score category.

However,
visual
merchandising
consists
of
four
variables such as lighting, design layout, product

display and cleanliness, all of those variables, have
considerable influence in selecting specific supermarket
outlet. The usage of new mediums in a unique way has
a strong influence in buying decision. The majority of
respondents (31 & 30.5) mentioned that posters and
product
displays
majority
themed
displays
in
supermarkets outlets strongly influence on their buying

PROJECT REPORT
Page

decisions. In the same time, 30% of respondents have
indicated that product display strongly influence on
their buying decisions. Moreover, the frequency of
product display is 310. It is more close to the higher
level of strongly influenced score category. The findings
show that 30% of respondents have indicated that
posters are strongly influencing their store buying
behavior.
The
smallest
value
equal
to
19
that
represents the moderately influenced score category.

Most
of
the
customers
mentioned
that
in-shop
promotions are one of the most important factors of

attractive in-store environment of supermarket outlets.
According to the findings, 191 respondents have
indicated in-shop promotions will affect in a strong and
moderate way respectively on their buying decisions.
Though signage has low impact actually it helps in
gaining the passer-by attraction and from results it is
also clearly shows that in-shop promotions and product
displays holds the consumers for a long time results to
the buying decision. Therefore, the quantitative figures
show that visual merchandising has significant impact
in buying decisions
In addition to the in-store variables, most of
consumers consider price of goods, location, and
PROJECT REPORT
Page

customer service and parking facilities etc. When
customers are ranking the relative importance of
factors affecting to the buying decisions, most of
customers have given first and second priority to visual
merchandising as it conveys them clearly what the
product is and whom it is meant for also at the same
time it also informs the consumers about the offerings
and discounts associated with that product. Second and
third largest amount of customers mentioned price of
goods and location of the outlets.
PROJECT REPORT
Page

RECOMMENDATIONS
The research findings of present study have more
practical orientation and which is important for the
marketers in supermarkets sector. Hence, the study
recommends the following.
1 Visual
merchandising
is
the
most
important
variable in in-store environment among the tested

variables.
It
can
significantly
influence
on
consumers buying choice. Therefore, application

of more attractive visual merchandising materials
in their promotions will help to obtain better
results.
The
lighting,
Design
layout,
themed
displays and cleanliness are the key elements of

visual merchandizing programs.
2 Most of customers are willing to purchase products
from super markets from 6.00p.m. To 9.00p.m. In
weekdays
and
10.00a.m.
To
8.00p.m.
During
weekends. Therefore, visual merchandisers can

pay
special
attention
to
make
attractive
environment in the supermarket premises and

make action to control the rush condition.
3 Spaces between shells (Passage), cashier counters
layouts, height of shells, no. of Gondola, number of
impulse counters, sanitary facilities, height of roof
PROJECT REPORT
Page

are key variables of design layout that helps to
make
customer
relaxation,
convenience
to
selection of products, reduce average waiting time

and encourage the impulse purchasing etc.
4 When designing the product display, Supermarket
managers should pay special attention on category
layout, canola (Light ceiling), color separation,
lighting box, category name of product shells.
5 When planning for themed displays for special
offers or for festive seasons, the theme of the
display and creativity should match the offer for
example when planning for valentine special its
very important that pick color should be used for
the display
6 Damaged items on the shells and dust will make
bad image towards the supermarket outlets and
design of floor tiles can make significance influence
to feeling of pleasure at shopping time.
7 Majority of customers respond to the lighting more
positively. They specially mentioned that lighting
helps to select correct products, reduce the time
wasted and feel relaxation during the shopping
tours.
PROJECT REPORT
Therefore managers can select appropriate
Page

lighting
system
that
creates
satisfaction
of
psychological needs of customers.

8 The
background
music
will
also
encourage
customers to spend extra time in supermarkets.

However, it has low significance relative to the
other elements of in-store environment. It will help
to
encourage
customers
to
make
impulse
purchasing decisions in supermarkets. And also

customers will consider the shopping in such a
supermarket is one of entertaining exercise. The
soft and classic music are highly recommended
than other type of music.
PROJECT REPORT
Page
Conclusion
From the study it is clearly understood that the
arrangement of the displays in an attractive manner
initiates new interest about the products in the minds
of the customer. By designing a proper themes and
activating changes frequently one can thus be a
proactive retailer.
With
globalization
and
the
retail
boom,
visual
merchandising is growing in leaps and bounds. It is not

simply concerned about decorating a store beautifully;
but must also symbolize the brand keeping the target
audience in mind.
By doing this project am not only learned about the
impact of visual merchandising but also it opened the
door for me to learn about many aspects in sales and
retail
including
PROJECT REPORT
buying
behavior
of
consumers,
Page

salesmanship etc., I once thank mi institute and also
future group for providing training of this kind.
PROJECT REPORT
Page

Visual Merchandising Impact Study

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Visual Merchandising Impact Study

Uploaded by

Copyright:

Available Formats

STUDY ON

STUDY ON IMPACT OF VISUAL

A PROJECT REPORT SUBMITTED TO THE

STUDY ON IMPACT OF VISUAL MERCHANDISING

endeavor over a long period can be successful only

with the advice and support of many well - wishers. I take

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

project was organized by the

college and put the students

directly to the fields of

market is mainly aimed for evaluating the knowledge of

STUDY ON IMPACT OF VISUAL MERCHANDISING

1.2 NEED AND IMPORTANCE FOR

1.4 COMPANY PROFILE

2.1 PRIMARY OBJECTIVE

2.2 SECONDARY OBJECTIVE

3.1 REVIEW OF LITERATURE

3.2 VISUAL MERCHANDISING

4.1 RESEARCH DESIGN & DATA

4.2 DATA ANALYSIS PROCEDURE

4.3 LIMITATIONS OF THE STUDY

STUDY ON IMPACT OF VISUAL MERCHANDISING

4.4 METHOD ADOPTED FOR THE

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

NEED AND IMPORTANCE OF VISUAL

superior shopping experience.

STUDY ON IMPACT OF VISUAL MERCHANDISING

shelves/counter space requirements are worked out

STUDY ON IMPACT OF VISUAL MERCHANDISING

Clear passages are provided for products, which require

STUDY ON IMPACT OF VISUAL MERCHANDISING

INDIAN RETAIL INDUSTRY AN OVERVIEW

STUDY ON IMPACT OF VISUAL MERCHANDISING

pharmaceutical sales at US$ 3.28 billion. The latter is

STUDY ON IMPACT OF VISUAL MERCHANDISING

strengthened its position in northern India by opening

Spencer's Retail, More (owned by Aditya Birla Group)

Organized Retail Market 2010', published by Knight

STUDY ON IMPACT OF VISUAL MERCHANDISING

between 2010 and 2012, the organized retail real

premiums watch outlets Helios in next five years to

STUDY ON IMPACT OF VISUAL MERCHANDISING

Headquartered in Mumbai (Bombay), the company

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

business activity of Future Group, group subsidiaries

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

Bombay Blues, Spaghetti Kitchen, Noodle Bar, The

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

STUDY ON IMPACT OF VISUAL MERCHANDISING

investment fund Kshitij to build a chain of shopping

products retail chain is launched along with consumer

agreements to launch insurance products with Italian

STUDY ON IMPACT OF VISUAL MERCHANDISING

crosses the 100-store mark, marking one of the fastest

STUDY ON IMPACT OF VISUAL MERCHANDISING

Food bazaar department