A Report of A Study on IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR, HUBLI for FUTURE VALUE RETAIL LTD Submitted

to the Department of Management Studies in partial fulfillment of the Post Graduate Diploma in Management Under the Guidance of Prof. Sudheer Sudhakaran by SUJITH POTU BATCH 18 FK-1954

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SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06. September 2010

DECLARATION

I, the undersigned, hereby declare that this project report entitled A Study on IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR, HUBLI has been written and submitted under the guidance of Prof.Sudheer Sudhakaran and is my original work. I understand that detection of any copying is liable to be punished in any way the school deems fit.

DATE:

SUJITH POTU (FK-1954)

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SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.

CERTIFICATE This is to certify that the project work entitled A Study on IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR, HUBLI has been carried out under my guidance by SUJITH POTU in partial fulfillment of his/her Post Graduate Diploma in Management during the academic year 2009 - 2011.

Date:

(SUDHEER SUDHAKARAN) Associate Professor

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SCMS COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-06.

This is to certify that the project work entitled IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG BAZAAR, HUBLI has been carried out by SUJITH POTU in partial fulfillment of his/her Post Graduate Diploma in Management.

DATE:

(Dr V.RAMAN NAIR) DIRECTOR

ACKNOWLEDGEMENT

First and foremost, I would like to thank the Almighty God for helping me to complete this project successfully. I would also like to thank FUTURE VALUE RETAIL LTD. and SCMS-COCHIN for giving me this opportunity and also for their generous support. I would like to express my heartfelt gratitude to my guide, Mr. Chenna Bullanawar, Store manager-Big Bazaar Hubli for his tremendous help and encouragement with my project. I also thank Mr. Vilas Nair, Marketing facultySSTM. I am highly indebted to both of them for their invaluable advice and intellectual guidance throughout my project. During the entire period of the study, they were always available to show the right direction and advice in spite their heavy and hectic work schedule. I would like to thank Prof. K. J. Paulose, Dean and project coordinator of SCMSCochin for his support and guidance to get this project done. I would like to extend my sincere thanks to the SCMS faculty guide, Prof. Sudheer Sudhakaran who with friendly touch showed me the right path to accomplish the daunting task. I am highly indebted to all those who offered their tireless support during the course of the project and grateful to everybodys contribution and collaboration

DATE:

SUJITH POTU

INDEX Chapter No. 1 Topic Introduction and theoretical back ground of the study 2 3 4 5 6 7 Research Methodology Industry and company Profiles Analysis and Interpretation of data Findings and conclusions Bibliography Appendices 19-21 22-29 30-55 56-59 60-62 63-72 Page No. 1-18

TABLE OF CONTENTS

S.no 1.1 1.2 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.4 1.4.1 1.5 1.6 1.7 1.7.1 1.7.2 1.8 1.8.1 1.8.2 1.8.3 1.9 1.9.1 1.9.2 1.9.3 1.9.4 1.9.5 1.9.6 1.9.7 1.9.8 1.10 1.11 1.12 1.13 1.13.1 1.13.2

Title Introduction The 5 Sensory Elements Visual Merchandising Elements Exterior Presentation Exterior Signs Marquees Banners Entrance & Aisles Window Displays Principles Of Design Interior Presentation Impulse buying - The trick of Visual Merchandising Display Design Props, Fixtures and Signage Props Image Fixture Types Straight Rack Four way fixtures Wall Fixtures Merchandise Display Planning Shelving Hanging Pegging Folding Stacking Dumping Depth Planogram Merchandise And Fixture Display Recommendations Basic rules for fixture placement Interior Signage Errors commonly occurring in display Too little merchandise Lack of underlying theme

Page. No 2-3 4-5 5 5 6 6 7 7 8 8 8 9 10 10 10 11 11 11 11 11 12 12 12 12 12 12 12 13 13 14 14 15 15 16 16

1.13.3 1.13.4 1.13.5 1.14 1.14.1 1.14.2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3.1 3.2 3.3 3.4 3.5 3.5.1 3.6 3.6.1 3.6.2 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15

Length of time for a display Limited or No Display Budget Lack of attention to Detail Use of other sensory organs for merchandising Use of music Perfumes and Scent Title Primary objective Secondary objectives Sampling Plan Data Collection Data collection mode Plan of Analysis Limitations of the study Indian Retail scenario Retail formats in India Major retailers in India Challenges facing Indian retail industry The Future Future trends About the future group About Pantaloon Retail (India) Limited Big Bazaar Frequency of visitors to Big Bazaar Factors tells about new product arrival in the store Perception about product arrangement & display in the store Perception about following the displays and layout to find a product Action after entering the store Perception about promotional activities in the store Most relevant activity regarding shopping Factors effecting buying behavior Experience of impulsive buying in the store Factors affecting the impulsive buying behavior in the store Place of impulsive buying Perception about product arrangement Perception about change in buying decisions with the influence of display Perception about factors affecting the buying decisions Shopping Experience at Big Bazaar, Hubli

16 16 17 18 18 18 20 20 20 20 20 21 21 21 23 23 24 25 25 26 27-28 27-28 29 31 32 33 35 36 38 39 41 43 44 46 47 48 50 51

4.16 4.17 4.17.1 4.17.2 4.18 5.1 5.2 5.3 5.4

Product recall Assortment * Display influence Cross tabulation Null hypothesis Alternate hypothesis Crosstab between Display influence and satisfaction levels of customers Findings and Conclusions Suggestions Recommendations On a further note

52 53 53 53 54 57 58 59 59

List of Tables Table No 1 2 3 4 Particulars Frequency of visitors to the Big Bazaar Factors tells about new product arrival in the store Perception about product arrangement & display in the store Perception about following the displays and layout to find a product 5 6 7 8 9(a) 9b (1) 9b (2) 10 11 12 Action after entering the store Perception about promotional activities in the store Most relevant activity regarding shopping Factors effecting buying behavior Experience of impulsive buying in the store Case processing summary Factors affecting the impulsive buying behavior in the store Place of impulsive buying Perception about product arrangement Perception about change in buying decisions with the influence of display 13 14 15 16 17 Perception about factors affecting the buying decisions Shopping Experience at Big Bazaar, Hubli Product recall Assortment * Display influence Cross tabulation Crosstab between Display influence satisfaction levels of customers 50 51 52 53 54 36 38 39 41 43 44 44 46 47 48 Page No 31 32 33 35

List of Figures Figure No 1 2 3 4 Particulars Frequency of visitors to the Big Bazaar Factors tells about new product arrival in the store Perception about product arrangement & display in the store Perception about following the displays and layout to find a 4 product 5 6 7 8 9(a) 9(b) 10 11 12 Action after entering the store 5 Perception about promotional activities in the store 7 Most relevant activity regarding shopping Factors effecting buying behavior Experience of impulsive buying in the store Factors affecting the impulsive buying behavior Place of impulsive buying Perception about product arrangement Perception about change in buying decisions with the influence of display 13 14 15 14 Perception about factors affecting the buying decisions Shopping Experience at Big Bazaar, Hubli Product recall 50 51 52 38 40 42 42 43 45 46 48 49 Page No 33 34 35 37

EXECUTIVE SUMMARY

Background: The India Retail Industry is the largest among all the industries, accounting for over ten per cent of the countrys GDP and around eight per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. This project has been done in Big Bazaar, Hubli. This is a flagship company of future group which comes under future value retail limited with having annual turnover of twenty three crores. Purpose: The purpose of the study was aimed at finding out the Impact of Visual merchandising (VM) on customer buying behavior at Big Bazaar, Hubli. Scope: The scope of the study is to find out the impact of visual displays in the store which causes to change the buying decisions of the customers. It is important to notice that Visual merchandising is involved in getting more visitors to stores; it is of immense importance which attracts customers towards impulsive buying in the store.

Research methodology: A sample size of hundred and fifty customers was selected for the study. Data was collected by the simple random sampling method. Questionnaire was the tool used to capture data from the customers, which was prepared on a Likert scale. Data was analyzed through the SPSS software package and Ms Excel.

Major Findings:

The major findings of the study are listed below: Fifty five percent of the customers changed their buying decisions with the influence of visual merchandising in the store. Eighty seven percent of the customers can recall the product display in the store. Seventy four percent preferred to follow the layout of the store to find the product. Eighty percent of customers are satisfied with the shopping experience at Big Bazaar, Hubli.

Major Recommendations: As stated in the findings Seventy four percent preferred to follow the layout of the store to find the product. But only Fifty five percent of the customers changed their buying decisions with the influence of visual merchandising in the store. So it is important to improve the visual merchandising inside the store to get hike in sales. By effective presentation of the sign boards/drop downs and with promo activities like melas & celebrations, only 60percent people came to know about different offers in the store. Offer is the sustaining factor for hypermarket like Big Bazaar. So it is crucial to get the attention of the customers to enhance sales.

Literature Review: Visual Merchandising is an important component in atmospheric management. It includes both store exterior and store interior. Store exterior includes window display retail premises and facade whereas store interior includes store layout, fixtures and fittings, wall display and store highlights. Also there are components governing both store exterior and interior, which include colour coordination, lighting design, mannequin selection and the application of design principles. If retailers want to project the best side of its company, a good selection of the visual merchandising with a detailed consideration of proper cooperate expressions are vital. Visual merchandising helps maintaining the overall image of a retail store in consumers mind (park et.al.1986). Visual merchandising focuses on various aspects of consumers, which include sensory pleasure, affective pleasure and cognitive pleasure (Fiore, Yah and Yoh, 2000). Sensory aspect includes personal feeling of consumers, such as response to temperature and noise, feeling crowded in a store (Grossbart et.al 1990: Hornik, 1992; Ko & Rhee, 1994). Store related and product related information can also be acquired from store environment (Baker et.al 1994).Also window display plays a crucial role in affecting store entry decisions as it is very important information cue for consumers (Bettman et.al, 1998).A little research about the inter relationship between the importance of store aesthetics and consumer decision process, as a result, the aim of this study is to look into this specific relationship.

CHAPTER -I Introduction and Theoretical Background of the Study

1.1 INTRODUCTION Shopping has transformed from necessity to an adventure. It is more of an experience, opportunity for celebration. The good old days have gone when a list is made and shopping is done at the nearby Kirana store. Now shopping is a welcome break from hectic schedules. Retail giants like Big Bazaars rule hearts with Is se sastha aur acha kahin nahi Central with motto of Shop Eat and Celebrate. The double conversion theory talks about visitors converting into buyers.

At this juncture it is important to notice that visual merchandising, which deals with the display of products and creating an ambience. A good display makes people walk into the store and also helps in making them feel like taking a look around.

A successful retailing business requires that a distinct and consistent image be created in the customers mind that permeates all product and service offerings. Visual merchandising can help create that positive customer image that leads to successful sales. It not only communicates the stores image, but also reinforces the stores advertising efforts and encourages impulse buying by the customer. Visual merchandising is a major factor often overlooked in the success or failure of a retail store.

Visual merchandising is the art and science of displaying and presenting product on the sales floor and in the windows with the purpose to increase store traffic and sales volume. Along with the store design, it is a key component of stores unique identity and best form of advertising.
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Visual merchandising can be defined as everything the customer sees, both exterior and interior, that creates a positive image of a business and results in attention, interest, desire and action on the part of the customer. It includes the presentation of merchandise as well as other important, features that create the stores overall atmosphere. Eighty percent of impressions are created by sight; that is why one picture is worth a thousand words. Each customer has a mental image of a store and its merchandise. A store should have an inviting appearance that makes the customer feel comfortable and yet eager to buy. Visual merchandising is directly involved in two-third of the entire process of converting a mere visitor into a buyer.

Visual merchandising plays a very important role in attracting customers of different sections to buy the goods. The basic objective for visual merchandising is a desire to attract customers to a place of business in order to sell the merchandise. Visual merchandising is offered to the customer through exterior and interior presentation. Each should be coordinated with the other using the stores overall theme. Creating and maintaining a stores visual merchandising plan, however, is not a simple task. It is necessary to continually determine what the customer sees. This evaluation from the customers perspective should start on the exterior and work completely through the interior of the store.

Through visual merchandising it is able to communicate to target customer brands identity, and what is unique and special about the offering and what makes this store better than other stores.

The 70% Rule

Seventy per cent of the purchase decisions happen on the store floor according to the study conducted in the US in 1995 study initiated by the Point-of- Purchase Advertising Institute. In addition to its conclusion that more than seventy percent of brand decisions are made in store, It was also advanced that POP (point-ofpurchase displays) are a significant decision Influencer. The study found that more than seventy percent of brand purchase decisions are made in-store at supermarkets, and more than seventy four percent are made in-store at mass merchandisers. This study was large in scope; encompassing data from a nationwide field intercept study of four thousand two hundred consumers across fourteen cities. Visual merchandising has taken retailing by storm. Stemming from Neural marketing, an intriguing marriage of marketing and science is the window to human mind. It is the key to unlock the subconscious thoughts, feelings and desires that drive the purchasing decisions that we make in everyday lives.

1.2 THE 5 SENSORY ELEMENTS

Sight: The first thing that motivates a consumer to walk into a store is how the store looks. A welcoming and friendly store always scores a plus over those which are not. Bright colours, well-placed merchandise and in-store advertisements, all go into working for creating that sight for a consumer. For example, in a furniture store, facts and helpful tips by interior designers can be put up next to merchandise to aid the consumers. They can see, read and take informed decisions.

Sound: Indulging the sense of sound through pleasing music (in accordance with the merchandise and brand concept) is a must. At an apparel store for young adults, fashion shows on screens and tips by stylists can be aired in the store to help shoppers select clothes for themselves. Interviews or quotes by famous authors can be played at bookstores to educate the customers on what books to pick up.

Smell: A pleasing smell always adds to the ambience of a store. A visual merchandiser while working in accordance to the retailers details should always keep in mind the sense of smell of a shopper. Good odour is a sure-shot bonus to the store, it may not be remembered always, but its absence shall surely be remembered. Touch: This is a tricky sense to indulge in, but most vital. For todays qualityconscious consumer it is more than a necessity to be able to feel the merchandise. Be it in trying on clothes in the trial room, or testing a perfume with a tester. The client should always be made to feel at home when it comes to the sense of touch. The worth this cannot be over emphasized.

Taste: Not all retail stores can hope at utilizing the sense of taste. But for those who can, like chocolate stores, candy stores, F&B outlets, snack and juice bars should aim at always treating the sense of taste of their consumers. On the house samples for tasting, free dishes or drinks on certain amount of purchases or sweets and chocolates for kids at any other kind of store are a few ways the retailer can indulge in the sense of taste of the consumer.

Pampering the five senses of the consumers ensures a sensory shopping experience for them. Working out the visual merchandising of a store with this end
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in mind can work wonders for a brand. The sixth sense, in this case, can be the sense the consumer exercises in purchasing the product. But that sense shall only prevail if the other five have been effectively stimulated.

1.3 VISUAL MERCHANDISING ELEMENTS

1.3.1Exterior Presentation The quality of a store front is a major determinant for a customer and the store appearance should never be compromised. The exterior appearance silently announces what customers can expect inside. Good exterior visual merchandising

attracts attention, creates interest and invites the customer into

business. Generally the exterior presentation should be progressive, lavish or discount image to the customer. The important point to be noted is that how a store visually welcomes a customer has to do a lot, whether they enter or not. 1.3.2 Exterior Signs An effective sign is a silent sales person. A sign must attract attention of customers in less than ten seconds and should convey what the business is and what it has to sell. The size of the letter used in signs should be large enough to
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be read from a distant place. Elegant design and expensive sign material will convey a business of luxury goods and services. A design of the sign conveys a great deal about the business. Signs can also be used to target a specific market segment such as youth, women, singles etc. Logo is also very important and plays a major role in attracting customers. They should be unique and noticeable. To put it in simple words simple brief, well designed, well lettered and easy to read signs will attract more customers and convey a feeling of welcome to the customers. A stores signs is its identity. It is with the sign that the public recognize the store. Hence it should create an image that can be consistently carried out as an identity of the store. 1.3.3 Marquees Marquees are special type of signs used to display stores name. Effective marquees should be designed so as it is different from others and attracts the attention of customers.

1.3.4 Banners Banners are economical but colourful and eye catching means of promotion. They can be changed frequently to create different appearances which will in turn attract customers to the store. It will be more effective when the colour scheme and design concept used in the banners are the same as what is used in the store, on promotional materials and newspaper ads.

1.3.5 Entrance & Aisles Most of the first time customers remember the store entrance. This goes on with the quote first impression is the best impression. Giving the best impression to the customers right at the entrance is

mandatory for any store. Cluttered aisles makes the shoppers feel uncomfortable and hence leave to a bad shopping experience. Entrances that allow shopping to come into a store without being aware of their entering are also becoming very popular.

1.3.6 Window Displays The display at shop windows is becoming increasingly popular as far as visual merchandising stands. Changing window displays to suit themes and moods and seasons is gaining popularity. Special

emphasis has to be placed on a stores window displays because they are the information link to the potential customer. It is reckoned that as many as one in every four sales could be the result of a good window display. Window display should attract attention, create interest and invite people into the store to purchase goods. The average
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amount of time an individual spends looking at a window display is about eleven seconds, and that is the maximum time available to achieve this. Too much of merchandise must not be crowded at a window, as customers find it difficult to determine the message and what items are being promoted.

1.4 PRINCIPLES OF DESIGN

1.4.1 Interior Presentation Selling space is the most important part of a store and therefore, efforts to utilize each square foot will help to maximize sales. When planning

interior displays, it should be kept in mind that the theme and image presented on the exterior must be carried throughout the interior of the store to provide consistency for the customer. The purpose of interior display is to develop desire for the merchandise, show what is available, and encourage both impulse and planned buying.

Three major goals of a store should be to motivate the customer to spend money, project the image of the store and keep expenses to a minimum. Well-designed displays and in-store promotions are essentials for a consistent theme and to help the customer find advertised items.

Although the percentage of in-store purchase decisions may vary by type of store and product, this is a critical selling point. Information provided by the Point of Purchase Advertising Institute (POPAI) indicates that nothing influences the

consumers purchase decisions more than advertising used where the sale is actually made---the point of purchase.

1.5 Impulse buying - The trick of Visual Merchandising A research conducted in US suggests that 64.8 per cent of all purchases decisions were made inside a supermarket. This included impulse purchase along with substitutions and generally planned buys where the shopper had an item in mind, but no brand. Most people

indicated they purchased the item because they saw it displayed. Displays or advertising alone may not increase product sales

substantially. However, combining advertising and display into an integrated promotional campaign will usually be more effective. Some effective displays are created by suppliers or brand-name manufacturers, while others are developed from scratch. The main principles of design used in display are balance, emphasis, proportion, rhythm, colour, lighting and harmony. These principles apply to all displays, window and interior.

1.6 Display Design An effective way of attracting customers to a store is by having good displays, both exterior and interior. A customer will be
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attracted to a display within three to eight seconds, which is the time a customer spends to determine interest in a product. Every display should be planned and must have a theme. Good design makes a visual presentation come together. This means the design attracts attention in a way that strengthens the store image, as well as introducing merchandise to the customer. Sale or promotional good in front of the store should be placed for short period of time only. If the sale or promotion lasts for several weeks, merchandise should be moved to the rear of the store. The customer should always get to see new exciting and creative merchandise with display at the front of the store. 1.7 PROPS, FIXTURES AND SIGNAGE 1.7.1 Props A prop is something used with a product in a display that clarifies the function of the merchandise being sold. Props are the integral part of a display. They are used in visual merchandising to tell a story about a product, the merchandise concept or the store itself. A display prop is something which is not for sale, such as floor coverings, wall treatments, backgrounds, mannequins, shelves, and steps. Props may also be merchandise that is for sale.

1.7.2 Image When using sellable merchandise as a prop, it should be ensured that it is appropriate for the theme of the display and in sufficient quantity to meet an increased demand arising from the display. Theme and prop merchandise must be prominently displayed in their respective departments for the easy access by the customer.

If a store does not have merchandise available that can be used in the display, display props can be used for non-merchandise categories. Non-merchandise props
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used for their original purpose can assist in telling a story. Including tissue paper, pens, pencils, shopping bags, hangers, chairs, desks and tables is an example. The presence of prop is to highlight or complement the merchandise and add visual excitement to the surrounding area.

1.8 FIXTURE TYPES

1.8.1 Straight Rack - Long pipe suspended with supports to the floor or attached to the wall.

1.8.2 Four way fixtures: Two cross bar that are perpendicular to each other in a pedestal. 1.8.3 Wall Fixtures: To make store walls merchandisable, wall usually covered with a skin, that is fitted with a vertical columns of notches similar to those on the Gondolas, into which a variety of hardware can be inserted can be merchandised much higher than floor fixtures.

1.9 MERCHANDISE DISPLAY PLANNING 1.9.1 Shelving flexible and easy to maintain. 1.9.2 Hanging- Suspending merchandise from hangers 1.9.3 Pegging small rods inserted into walls.

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1.9.4 Folding For soft lines that can be folded and stacked on shelves or tables creates high fashion image. 1.9.5 Stacking For large hard lines that can be stacked on shelves, base desks of gondolas or flats easy to maintain and show an image of high volume and low price. Stacking cushions is one such practice. Soft materials stacked are seen in the figure. 1.9.6 Dumping Large quantities of small merchandise can be dumped into baskets or bins highly effective for soft lines (socks, washcloths) or hard lines(batteries candy, grocery products) creates high volume, low cost image.

1.9.7 Depth - Depth is the distance from the front of the window to the back of the window. It is important to give the display the right amount of depth. Consider the way we watch movies and ok at the painting; we step or sit back from whatever we wish to see. The same applies to the windows to grasp the whole picture it must be set back from the window, not positioned right at the glass. The rule of thumb is to start three quarters away from the glass, then work forward. At the same time the display should be stepping down from the highest.

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1.9.8 Planogram Planogram is tool used by the retailer, which helps the retailer to determine the location of the merchandise within a department. It is a diagram that visually communicates how merchandise physically fit on to a store fixture or window, to allow for proper visibility and price point options. It helps in listing the exact number of square feet used for various products and exact number of products to be displayed in a particular area

Planogramming benefits: Improved sales presentation and closure results Increased consumer appeal of product displays Better brand awareness through consistency Improved efficiency of shelf space allocations Improved financial performance of assortments Faster more accurate replenishments Quicker inventory resets Much better marketing through targeting displays

1.10 MERCHANDISE AND FIXTURE DISPLAY RECOMMENDATIONS Goods can be effectively displayed on a variety of fixtures such as gondolas, tables, cubes, mannequins, waterfalls and other racks, display cases and manufacture point of purchase displays. A fixture should not only complement the merchandise, but also the atmosphere created in the store. Each fixture should present the merchandise to the public and thereby act as a silent salesperson. One of the most common fixtures in stores is
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gondolas - movable shelving approachable from all sides which are used in self service retail stores, to display merchandise. They can be lined up in rows as in grocery, hardware and drug stores or used singly to create an island.

1.11 Basic rules for fixture placement Outlined below are some basic rules for fixture placement. These are not absolutes, but rather guidelines that fit in well store set-up and customer traffic patterns. Three feet distance between racks must be allowed The aisle leading to directly to the fire exit is considered a major aisle. The fire exit must not be blocked with fixtures and extraneous materials. A well-planned, geometric aisle pattern works best to maximize sales. Aisle displays must be placed on an island rather than wing fixtures. When placing racks, progress from small (sized or capacity) fixtures at aisles to large fixtures near the back walls. When working with hard goods, place cubes in the front with gondolas to the rear of the department or store. Higher priced stores require fewer fixtures because there is less stock available. T-stands and four ways can be used to create an illusion of space and selective goods. This feeling is necessary to sell higher-priced goods. Exciting displays of mass merchandise in quantity and colour must be created. Cubes can be used for folded goods. Fixtures that racks well for sale items include tub tables, round racks and rectangular racks.

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1.12 Interior Signage Signage is a critical part of interior display promotion. and Store point-of-purchase signage that

communicates a sales message to the customers can make up for lack of sales personnel. A good point-of-purchase sign, properly placed, acts as a

salesperson without wages. Signs were originally used to identify a store, name various departments, and announce sales and sale merchandise. Although their primary purpose was these, now signage commonly advertises vendors, colours, quality and prices. They can also be used to explain customer benefits and describe merchandise features.

1.13 Errors commonly occurring in display There is no thumb rule as to how much merchandise should appear in an area. However one major consideration is the price of the merchandise. The more expensive item the fewer it is displayed. Some precautions must be taken so that the display area is not Cramped up with may similar items Many different items , such that any selling message is lost Appear aesthetically offensive to the customer

1.13.1 Too little merchandise A window or display area with too little merchandise makes a store appear to be going out of business or indicates to the customer that the establishment is less than prosperous.

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Generally the lack of merchandise on the display is that the merchandise has been sold and it has not been replaced. If the items needed for display are unavailable then the display dimensions have to be reduced to make it appear in proportion with the available merchandise. Poor planning is also one of the main reasons.

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

1.13.3 Length of time for a display As a standard many interior displays are changed daily because they are effective and merchandise sold directly from them needs to be replaced. Large window displays may be changed as often as two times a week or as infrequently as every other week. This generally depends on the season and the length of time a current store theme has been planned. An example of a display that might stay longer would be an unusual festive display. The expense, time and planning of a display is also used as a guideline for frequency of change. Special window and internal store promotions have a longer display life. 1.13.4 Limited or No Display Budget An empty display area generally indicates the declining path of sales. Display areas are often budgeted with the left over; after all other monetary needs have been fulfilled. This generally means that there is little or no budget for the display. A low budget look should be avoided. A low budget display may generally consist of crepe paper, tissue paper, construction items or other such perishables. Low budget displays generally give a negative image to the end customer.
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However, high level of creativity is needed to plan and execute a great display with very little budget. Good theme development without expensive background can be created. An example would be use of old furniture, wood, clothes effectively to create a classic image.

1.13.5 Lack of attention to Detail Making a good impression is very much important. Hence paying attention to small detail is an important factor. This is generally the first thing the customer notices. Belo w is the list of things that needs to be taken care of prior to the finished display: The display should be absolutely clean without any dust Signs should be attached in the display providing all the necessary information Lights in the display area should be covered. Moreover caution is to be taken to avoid fire and other related disasters The display area should be checked from all the angles so that all merchandise should be easily visible and aesthetically pleasing Mistakes in applying principles of display The four principles of design and display include emphasis, balance, rhythm and proportion. These principles must be reviewed every

time the display is completed. Every display needs a point where the viewers eye can easily start. A display which is displayed too frequently has no definite point of emphasis or the point of emphasis is in the wrong place.

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1.14 Use of other sensory organs for merchandising

1.14.1 Use of music The store image and the mood of the customers can be changed dramatically by the use of music. Music establishes moods, helps to motivate the subconscious mind and create long lasting impression on the customers. Specific music for particular merchandise can create a good shopping experience and can be an important tool for creating a brand.

1.14.2Perfumes and Scent The other use of stimulation can be use of stimulating the olfactory lobe of the brain. i.e. use of perfumes and scents. Layout having fresh breads and buns, can entice the customers by the aroma. Segments of the store having soaps and toiletries can enchant the customers by the use of perfumes and scents. A pleasing scent can create a wonderful ambience and add to the customers shopping experience. Scent can also be a major factor in determining which product to buy. Everything from perfumes, scented candles, toiletries, cleaning products are all bought while keeping scent in the mind. The scent generally determines which product the customer purchases.

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CHAPTER II Research Methodology

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Research Methodology 2.1 Title: A Study on Impact of visual merchandising on sales in Big Bazaar, Hubli. 2.2 Primary objective: To study the impact of visual merchandising on the buying behavior and the buying decisions of the customers. 2.3 Secondary objectives: To explore the impact of layout in a retail store on customer buying behaviour. To explore if buying choices are made before reaching the store or based on visual displays in the store. To analyze whether customers can recall the products displayed by visual merchandising or not. 2.4 Sampling Plan: Target Population: Individuals between the age group of 18 to 70 years will be chosen as the target population. The people under this age group who are frequent visitors and shoppers to Big Bazaar, Hubli. Sampling Procedure: The sampling procedure using here is simple random sampling. Simple random sampling means each sample in the population has equal chance to be picked up for the study. Sample Size: A sample of 150 customers can be taken in order to carry the study. Sample Elements: The sample elements will consist of people who visit and shop from Big Bazaar.

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2.5 Data Collection: Data is the information which will be collected from various sources. It concerns with gather accurate information about the problem.

2.6 Data collection mode: Two methods can be used to collect the relevant data, which are essential for the study. Primary Data: Data will be collected to obtain desired information through structured questionnaire. Secondary Data: Data is collected through books, magazines, newspapers and internetetc 2.7 Plan of Analysis: The collected data from both primary and secondary sources will be tabulated in the form of tables. The data collection through questionnaire will be analyzed in detail and divided into various categories of preferences. By giving inputs to various methods in SPSS I can observe the impact of visual merchandising on buying decisions of customers. The analysis of data using SPSS will give the meaningful conclusion for my research. 2.8 Limitations of the study: There are a few limitations to the study that may arise due to the following reasons: 1. Reluctance of the sample to give a proper feedback 2. The study is confined just to Hubli, Karnataka. 3. Language barrier prevailed.

22

CHAPTER III INDUSTRY & COMPANY PROFILES

23

3.1Indian Retail Scenario: The retail scenario is one of the fastest growing industries in India over the last couple of years. The Indian retail industry is the third largest in the world. Comprising of organized and unorganized sectors, though initially, the retail industry in India was mostly unorganized consists of small and medium grocery store, medicine stores, subzi mandi, kirana stores, paan shops etc. However, with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. More than Ninety percent of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities. Organized retail in India is expected to grow Twenty five to Thirty per cent yearly and is expected to increase from Rs 35, 000crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010.

3.2 Retail formats in India: Format Description The Value Proposition

Branded Stores Exclusive showrooms either owned or Complete range available franchised out by a manufacturer. for a given brand, certified product quality Specialty Stores Focus on a specific consumer need, carry Greater choice to the most of the brands available consumer, comparison between brands is possible Department Stores Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc.
24

One stop shop catering to varied/ consumer needs

Supermarkets

Extremely large self-service retail outlets

One stop shop catering to varied consumer needs

Discount Stores

Stores offering discounts on the retail Low Prices price through selling high volumes and reaping economies of scale

Hypermarket

Larger than a supermarket, sometimes Low prices, vast choice with a warehouse appearance, generally available including services located in quieter parts of the city such as cafeterias location and

Convenience stores Shopping Malls

Small self-service formats located in Convenient crowded urban areas

extended Operating hours.

An enclosure having different formats of Variety of shops available in store retailers, all under one roof. to each other.

3.3 Major Retailers in India Future Group: Pantaloon is one of the biggest retailers in India with more than four fifty stores across the country. Headquartered in Mumbai, it has more than five million sq. ft retail space located across the country. It is growing at an enviable pace and is expected to reach thirty million sq. ft by the year 2010. Tata Group: Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over four lakh sq. ft retail space across the country. RPG Group: RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.
25

Reliance: Reliance is one of the biggest players in Indian retail industry. More than three hundreds Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It is expecting its sales to reach Rs. 90,000 crores by 2010. AV Birla Group: AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, and Peter England are quite popular. It is also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010. 3.4 Challenges facing Indian retail industry: The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options 3.5 The Future: The retail industry in India is currently growing at a great pace and is expected to go up to Rs. 3.74 lakh crore by the year 2013. It is further expected to reach Rs. 65 trillion by the year 2018. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to seventy five percent .As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a rate of forty percent.

26

 According to Government of India estimate the retail sector is likely to grow to a value of Rs. 2,00,000 crore (US$45 billion) and could yield ten to fifteen million retail jobs in the coming five years; currently this industry employs eight percent of the working population in India which is the second largest employment provider after agriculture. India continues to be among the most attractive countries for global retailers. According to the Department of Industrial Policy and Promotion, approximately RS. 213 hundred crore was the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand retail trading. More than eight percent of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than twenty locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bangalore in the second position. 3.5.1 Future Trends: Lifestyle International, a division of Landmark Group, plans to have more than fifty stores across India by 201213. Shoppers Stop has plans to invest Rs250 crore to open fifteen new supermarkets in the coming three years. Pantaloon Retail India (PRIL) plans to invest Rs. 346.5 crores this fiscal to add up to existing 2.4 million sq ft retail space. PRIL intends to set up hundred and fifty five Big Bazaar stores by 2014, raising its total network to two hundred and seventy five stores. Timex India will open another fifty two stores by March 2011 at an investment of Rs. 58.5 crore taking its total store count to hundred and
27

twenty. By September 30, 2009, the company has recorded a net profit of Rs. 54 crore. Australia's Retail Food Group is planning to enter the Indian market in 2010. It has plans to clock Rs.34.8 crore revenue in five years. In twenty years they expect the India operations to be larger than the Australia operations.

3.6 About the Future Group: Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over twelve million square feet of retail space in over seventy cities and towns and sixty five rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. Pantaloon Retail was awarded the International Retailer of the Year - 2007, by the USbased National Retail Federation, the largest retail trade association and the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

28

3.6.1 About Pantaloon Retail (India) Limited: Pantaloon Retail (India) Limited, is 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 sixteen million square feet of retail space, has over thousand stores across seventy cities in India and employees over thirty thousand people with 6,341.70 Crores turnover. The 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, and Star & Sitara. Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates hundred and twenty three Big Bazaar stores, hundred and seventy Food Bazaar stores, among other formats, in over seventy cities across the country, covering an operational retail space of over six million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection, selling home furniture products and eZone focused on catering to the consumer electronics segment.

29

Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space. 3.6.2 Big Bazaar: Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices that is what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience.

30

Brief view of Big Bazaars Products: Fashion Dept Denims & T-shirts Fabrics & Cut pieces Formal wear Casual wear Party wear Ethnic wear Accessories Under garments Night wear Dress material Sarees Foot wear Food Bazaar Staples Fruits & Vegetables Ready to cook Own brands Species Live kitchen Furniture Electronics Luggage carriers GM-Home Gm-fashion Utensils Depot

31

Chapter IV Analysis & Interpretation of Data

32

4.1 Frequency of visitors to Big Bazaar

Gender Male Frequency More than once in a week Once in a week Once in a month Only on offer days Very rarely Total 23 19 15 14 9 80 M% 28.7 23.7 18.7 17.5 11.2 Female 25 16 24 4 1 70 F% 35.7 22.8 34.2 5.7 1.4

Total

48 35 39 18 10 150

Table-1(Frequency of visitors to the Big Bazaar, Hubli) 40 35 30 25 20 15 10 5 0

35.7 28.7 23.7 22.8 18.7

34.2

Male

Female

PERCENTAGE

17.5 11.2 5.7 1.4

More than once Once in a week in a week

FREQUENCY

Once in a month

Only on offer days

Very rarely

Fig-1(Frequency of visitors to the Big Bazaar, Hubli)

33

Analysis: It is observed that 55.3% of samples are coming the store once in the week, so we need to concentrate on daily consumables.34.2% female are coming once in a month, so to attract these people we need to concentrate on provisions.17.5% of male samples are interested to come only on offer days, so it will be helpful to concentrate slightly on male belongings on offer days.

4.2 Factors tells about new product arrival in the store

Gender Male New arrival Through display of the product Through Offers Through Announcements By enquiring salesperson You will search by your own Total 37 19 16 3 5 80 M% 46.3 23.8 20.0 3.8 6.3 Female 25 14 8 9 14 70 F% 35.7 20 11.4 12.9 20

Total

62 33 24 12 19 150

Table-2(Factors tells about new product arrival in the store)

34

50
PERCENTAGE

40 30 20 10 0

46.3 35.7 23.8

Male

Female

20

20 11.4 3.8 12.9 6.3

20

Through display Through Offers Through of the product Announcements

FACTORS

By enquiring salesperson

You will search by your own

Fig-2(Factors tells about new product arrival in the store) Analysis: From the above interpretation it was observed that 46% of the male samples and 35.7% of female samples came to know about the new product arrival in the store through display of the product. Only 22% of the samples came to know through different offers. So with that i can conclude that Visual merchandising is making awareness about new product better than offers offered for the customers on new products.

4.3 Perception about product arrangement & display in the store Gender Male Assortment Always Mostly Sometimes Rarely Never Total 18 32 19 8 3 80
35

Total F% 22.9 57.1 12.9 5.7 1.4 34 72 28 12 4 150

M% 22.5 40 23.8 10 3.8

Female 16 40 9 4 1 70

Table-3(Perception about product arrangement & display in the store) 60 50

PERCENTAGE 57.1

40 30 20 10
22.5 22.9

Male
40

Female

23.8 12.9

10

5.7

3.8

1.4

0
Always Mostly Sometimes
FREQUENCY

Rarely

Never

Fig-3(perception about product arrangement &display in the store)

Analysis: It can be observed that 70.6% of the samples (80% female samples) agreed that they were attracted by the product arrangement and display in the store. With that I can conclude that the proper arrangement and display of the products will be vital in retail store especially female requirements. So visual merchandising should be attractive and message oriented regarding product.

36

4.4 Perception about following the displays and layout to find a product Gender Male Follow display Strongly Agree Agree Neither agree nor Disagree Disagree Strongly Disagree Total 34 20 17 7 2 80 M% 42.5 25 21.3 8.8 2.5 Female 44 14 10 1 1 70 62.9 20 14.3 1.4 1.4 78 34 27 8 3 150 Total

Table-4(Perception about following the displays and layout to find a product) 70 60

PERCENTAGE

62.9

50 40 30 20 10
25 20 42.5

Male

Female

21.3 14.3 8.8 1.4 2.5 1.4

0
Strongly Agree Agree
Perceptual Factors

Neither agree nor Disagree

Disagree

Strongly Disagree

Fig-4(Perception about following the displays and layout to find a product)

37

Analysis: From the above analysis it can be observed that 74.6% samples (82.9%female samples) were agreed that they follow displays and layout to find product. So it is necessary to maintain excellent displays for products and flexible layout for store. Then it will be very helpful to the customers to find the products easily and impulsive buying may happen with excellent display of products. This will help in raising the sales.

4.5 Action after entering the store

Gender Male I enter Go straight to the product which i want Walk through the store as it leads me Don't follow any pattern, randomly pick product Seek the help of salesperson to navigate in the store Total 9 60 7 4 80 M% Female 11.3 75 8.8 5 20 28 12 10 70 F% 28.6 40 17.1 14.3

Total

29 88 19 14 150

Table-5(Action after entering the store)

38

80 70 60 50 40 30 20 10 0

75

Male

Female

PERCENTAGE

40 28.6 17.1 11.3 8.8 5 14.3

Go straight to the Walk through the product which i want store as it leads me

Don't follow any Seek the help of pattern, randomly salesperson to pick product navigate in the store

ACTIONS

Fig-5(Action after entering the store) Analysis: It can be inferred as 58.6% of the samples are stated that they walk through the store as it leads them. So from the above I can conclude that it will be the trick of Visual merchandising to convert the people who walk through the store as customers. So store should concentrate on excellent way of merchandising to attract customers and to improve sales of the store.

39

4.6 Perception about promotional activities in the store Gender Male Offers Sign boards/Drop downs Promo areas(melas) sales people pamphlets Announcements in the store Total 40 9 5 9 17 80 M% 50 11.3 6.3 11.3 21.3 Female 17 25 12 3 13 70 F% 24.3 35.7 17.1 4.3 18.6 57 34 17 12 30 150 Total

Table-6(Perception about promotional activities in the store)

60 50
PERCENTAGE

40 30

50 35.7 24.3 17.1 11.3 6.3

Male

Female

20
10 0

21.3 11.3 4.3

18.6

ACTIVITIES

Fig-6((Perception about promotional activities in the store)

40

Analysis: From the above it can be observed that 60.6% of the samples came to know about the offers through sign boards/drop downs & promo areas. So it is important to convey the offers to customer to get attention at the product. With this I can conclude that proper displaying of sign boards, promo areas will help the customers to know about offers and will be helpful in increasing the sales.

4.7 Most relevant activity regarding shopping

Gender Male I bought what i came to buy, Nothing more I bought little more than what i came for I bought lot more than what i came for I bought everything that attracted me I didn't find what i needed, so i didn't buy anything Total 21 34 15 7 3 80 M% 26.3 42.5 18.8 8.8 3.8 Female 7 46 9 6 2 70 F% 10 65.7 12.9 8.6 2.9

Total

28 80 24 13 5 150

Table-7(Most relevant activity regarding shopping)

41

70 60 50
PERCENTAGE

65.7

Male
42.5

Female

40 30 20 10 0
26.3

18.8 10 12.9 8.8 8.6 3.8 2.9

I bought what I bought little I bought lot I bought I didn't find i came to more than more than everything what i buy, Nothing what i came what i came that attracted needed, so i more for for me didn't buy anything ACTIVITIES Fig-7(Most relevant activity regarding shopping)

Analysis: From the above it can be observed that 53.3% samples bought more than what exactly they came for. That may happen with the impulsive buying, offers. So visual display of the sign boards and products are crucial to create an intention to buy the product with offer or with good display.

42

4.8 Factors effecting buying behavior Gender Male Attractive displays of the product Good product Information provided by sales person When i see a good deal, i tend to buy more than i intended to buy No specific reason, i bought because i like the product I didn't buy anything out of list Total 17 12 6 34 M% 21.3 15 7.5 42.5 Female 11 23 7 21 F% 15.7 32.9 10 30 28 35 13 55 Total

11 0 80

13.8

2 6 70

2.9

13 6 150

8.6

Table-8(Factors effecting buying behavior) 45 40 35 30 25 20 15 10 5 0

42.5

Male
32.9 30 21.3 15.7 15 7.5 10 2.9 13.8

Female

PERCENTAGE

8.6

Attractive Good product Information displays of the provided by product sales person

When i see a No specific I didn't buy good deal, i reason, i anything out tend to buy bought of list more than i because i like intended to the product buy

FACTORS

43

Fig-8((Factors affecting buying behavior)

Analysis: From the above it can be observed that 42.5% male samples and 30% female samples were agreed that when they see good deal they will buy. So it is important to display the offers and promote them as much possible.29% was influenced by attractive display of the product. So we should concentrate on product display in the store which can influence the buying decisions of the customers.

4.9 Experience of impulsive buying in the store

Gender Male Yes No Total 68 12 80 M% 85 15 Female 56 14 70 F% 80 20

Total

124 26 150

Table-9(a) (Experience of impulsive buying in the store)

44

90 80 70 60 50 40 30 20 10 0

85

80

Yes No

PERCETAGE

15 Male
GENDER

20

Female

Fig-9(a) (Experience of impulsive buying in the store) Analysis: From the above it can be observe that 82.6% samples experienced impulsive buying in the store. So there is a possibility to implement some techniques to grab those customers who tend to impulsive buying inside the store.

4.10 Factors affecting the impulsive buying behavior in the store

Valid N 124 Percent 82.7% N

Missing Percent 17.3% N 150

Total Percent 100.0%

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Table-9b (1) (Case processing summary)

45

Gender Male Influence of product arrangement Placing of the product Influence of promotional signage Excitement in trying a new product Influence of mannequin display Total 13 8 15 20 12 68 M% 19.1 11.8 22.1 29.4 17.6 Female 9 10 23 8 6 56 F% 16.1 17.9 41.1 14.3 10.7

Total

22 18 38 28 18 124

Table-9b (2) (Factors affecting the impulsive buying behavior in the store)

45 40 35 30 25 20 15 10 5 0

41.1

Male
29.4

Female

PERCENTAGE

22.1 19.1 16.1 11.8 17.9 14.3 10.7 17.6

Influence of product arrangement

Placing of the product

Influence of promotional signage FACTORS

Excitement in trying a new product

Influence of mannequin display

Fig-9b (Factors affecting the impulsive buying behavior in the store)

46

Analysis: From the above analysis it is observed that 30.6% over all samples and 41.1% female samples tend to impulsive buying with the influence of promotional signage, 29.4% male samples were agreed that they tend to impulsive buying for excitement in trying a new product, So 32.2% samples are influenced by placing of the product and product arrangement. So from that it is clear that the factors which are influencing the impulsive buying are promotions and product arrangement. Here comes Visual merchandising to arrange products effectively and to create promotions visible to customers to convert the walk-ins as sales.

4.11 Place of impulsive buying

Gender Male Nearby cash counter while waiting for payment Promo area Where promotions are too attractive in the store Total 21 19 28 68 M% 30.9 27.9 41.2 Female 15 28 13 56 F% 26.8 50 23.2

Total

36 47 41 124

Table-10(Place of impulsive buying)

47

60 50
PERCENTAGE

Male
50 41.2 30.9 26.8

Female

40 30 20

27.9 23.2

10
0 Nearby cash counter while waiting for payment Promo area
PLACES

Where promotions are too attractive in the store

Fig-10(Place of impulsive buying) Analysis: From the above it can be observed that 71.7% samples made impulsive buying at promo areas and at the places where the promotions are too high inside the store.50% of the female samples stated that they will do impulsive buying at promo areas. So it is necessary to concentrate on promotions to achieve impulsive buying inside the store.

48

4.12 Perception about product arrangement

Gender Male Excellent Very good Good Average Poor Total 19 30 21 3 7 80 M% 23.8 37.5 26.3 3.8 8.8 Female 14 34 5 13 4 70 F% 20 48.6 7.1 18.6 5.7

Total

33 64 26 16 11 150

Table-11 (Perception about product arrangement)

60 50
48.6 PERCENTAGE

40
37.5

Male

Female

30 20 10
7.1 3.8 8.8 5.7 23.8 20 26.3 18.6

0 Excellent Very good Good

PERCEPTUAL FACTORS

Average

Poor

Fig-11(Perception about product arrangement)

49

Analysis: From the above it can be observed that 82% of the samples agreed that the product arrangement is acceptable.18.6% female samples stated that it is poor. So it is important to arrange and display the product properly. So proper visual merchandising is required for better results.

4.13 Perception about change in buying decisions with the influence of display Gender Male Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Total 17 27 19 12 5 80 M% 21.3 33.8 23.8 15 6.3 Female 11 31 14 10 4 70 F% 15.7 44.3 20 14.3 5.7 28 58 33 22 9 150 Total

Table-12 (Perception about change in buying decisions with the influence of display)

50

50 40
PERCENTAGE 44.3 33.8 21.3 15.7 23.8

Male

Female

30
20 10 0 Strongly agree

20 15 14.3 6.3 5.7

Agree

Neither agree nor disagree

PERCEPTUAL FACTORS

Disagree

Strongly disagree

Fig-12 (perception about change in buying decisions with the influence of display)

Analysis: From the above it can be observed that 50.7% samples were agreed that visual display of the product influenced their buying decisions. So it is very important to improve the quality of the displays and presentation of the product to attract more customers. This will defiantly helpful in creating an identity in customers mind about the store. So visual merchandising of the store should be attractive.

4.14 Perception about factors affecting the buying decisions Gender Male Locating products through signs, graphics Lighting Colours Total 74 6 0 80 M% 92.5 7.5 0 Female 57 9 4 70 F% 81.4 12.9 5.7 131 15 4 150 Total

Table-13 (Perception about factors affecting the buying decisions)

51

100 90 80 70 60 50 40 30 20 10 0

92.5 81.4 Male Female

PERCENTAGE

7.5 Locating products through signs, graphics

12.9

5.7

Lighting
FACTORS

Colours

Fig-13(Perception about factors affecting the buying decisions) Analysis: From the above it can be observed that 87.33% samples agreed that locating products, signs have influenced their buying decisions. So it is important to concentrate on product arrangement and display in the store to improve sales.

4.15 Shopping Experience at Big Bazaar, Hubli Gender Male Highly Satisfied Satisfied Neither Satisfied nor dissatisfied Dissatisfied Highly dissatisfied Total 15 52 11 2 0 80 M% 18.8 65 13.8 2.5 0 Female 12 41 8 6 3 70 F% 17.1 58.6 11.4 8.6 4.3 27 93 19 8 3 150 Total

52

Table-15(Shopping Experience) 70 60
PERCENTAGE 65 58.6

50 40 30 20 10 0 Highly Satisfied
18.8 17.1

Male

Female

13.8 11.4

2.5 8.6

4.3

Satisfied

Neither Dissatisfied Highly Satisfied nor dissatisfied dissatisfied PERCEPTUAL FACTORS

Fig-14(Shopping Experience) Analysis: From the above it can be observed as 80% of the samples are satisfied with the service offered by Big Bazaar, Hubli.

4.16 Product recall

Yes No Total

Male 67 13 80

Gender M% Female F% 83.75 91.43 64 16.25 12.9 6 70

Total 131 15 150

Table-16(Product recall)

53

100 90 80 70 60 50 40 30 20 10 0

91.43 83.75

PERCENTAGE

Yes No

16.25

12.9

Male
GENDER

Female

Fig-15(Product recall) Analysis: From the above it can be observed as 91.5% of the female samples are able to recall the product, and only 84% of male samples are able to recall the product. So it is important to attain the hundred percent attentions of the customers with product display in the store.

54

4.17 Assortment * Display influence Cross tabulation

Display influence Strongly agree Always Mostly Sometimes Rarely Never Total 5 9 8 4 2 28 Agree 8 37 8 4 1 58 Neither agree nor disagree 17 10 5 1 0 33 Disagree 3 12 4 3 0 22 Strongly disagree 1 4 3 0 1 9

Total

34 72 28 12 4 150

Table-16 (Assortment * Display influence Cross tabulation)

Chi-Square Tests Value 36.314a 33.974 .968 150 df 16 16 1 Asy mp. Sig. (2-sided) .003 .005 .325

Pearson Chi-Square Likelihood Ratio Linear-by -Linear Association N of Valid Cases

a. 15 cells (60.0%) hav e expected count less than 5. The minimum expected count is .24.

4.17.1 Null hypothesis: Display of the product did not have any impact on buying decisions in the store 4.17.2 Alternate hypothesis Buying decisions are based on the product display. The chi-square test revealed that there is significant association between the Product display inside the store and the buying decisions.

55

From the chi-square test output table significance level of 0.03 has been achieved. So we can neglect the null hypothesis.

Result: By using the above analysis I can conclude that the product display has an impact on buying decisions inside the store.

4.18 Crosstab between Display influence and satisfaction levels of customers:

Table-17 (Crosstab between Display influence and satisfaction levels of customers)

56

Analysis: From the above table it can be inferred as out of eighty male samples 83.7% people satisfied with the shopping experience at Big Bazaar, Hubli. In that satisfaction level 56.7% changed their buying decisions with the influence of product display in the store. Out of seventy female samples 75.7% customers satisfied with shopping experience at Big Bazaar, Hubli. In that satisfaction level 62.2% has changed their buying decisions with the influence of product display in the store. From the above analysis it can be observed that the customers who are tending to change their buying decisions with the influence of product display are satisfying with the shopping experience at Big Bazaar. So it is important to improve the visual merchandising at store to enhance the shopping experience of customers and to satisfy the customers.

57

CHAPTER V FINDINGS AND CONCLUSIONS

58

5.1 FINDINGS AND CONCLUSIONS From the Analysis of the results and based on the objectives of the study the following findings can be ascertained: 55 percent customers are influenced to buy more than they tend to buy, the main reasons for that are attractive product display and good deal/offer with the product. 63percent of the customers came to know about the new product arrival through the display of the product and through the discount offers. Out of hundred and fifty samples 74percent preferred to follow the layout of the store to find the product. 58percent of the samples are intended to follow the layout of the store as it leads them. By effective presentation of the sign boards/drop downs and with promo activities like melas & celebrations 60percent people came to know about different offers in the store. 40percent of the customers changed their buying decisions by the influence of product arrangement and promotional signage. 87 percent customers are able to recall the product after their shopping. So it is stating that the visual merchandising of the store is good. 70percent of the customers are tending to do impulsive buying nearby promo areas and where the promotions are too high in the store. Out of hundred and fifty samples 57percent of customers had the perception that the product arrangement in the store is good and it influenced their buying decisions. Food Bazaar is the walk-in driver for the store with low margins and adding value to the store. Fashion department is the one which is contributing significantly in both sales and margin to the store.
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 Walk-ins are more on Wednesday bazaar, weekends and celebrations like birthday celebrations, big day celebrations, melasetc People have good knowledge about products in Big Bazaar, Hubli. Especially Koryos small appliances, Tasty treats mango juice, pure & freshs Gheeetc 80 percent of customers are satisfied with the shopping experience at Big Bazaar, Hubli. They used to say that wide range of availability under the single roof made their shopping easier and the offers they are getting in the store are satisfying its tag line Is se sastha aur acha kahin nahi.

5.2 SUGGESTIONS: Some of the suggestions given by the customers are as follows It is necessary to improve the product arrangement and offers to get attention of the remaining 45percent customers. Customers have observed that Big Bazaar needs to improve their ambience with suggestions regarding improvement in lighting, fragrance in fashion department.

5.3 ADDITIONAL SUGGESTIONS: The layout of the department stocking furniture should make the furniture arrangement such that it mirrors the way the customers would arrange it at their own homes Rotating table with different colours can be used in kids fashion to attract and create pleasant environment in the store. Few customers are in the perception that some products price range in Big Bazaar, Hubli are higher than the market price; there is a need to focus on this issue. Parking place for vehicles is comparatively very less; it will become a serious problem while the stores walk-ins are in growth stage.
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 It is necessary to concentrate on product display and placing banners which tells about offers particularly on the special days like celebrations time, melasetc

5.3 RECOMMENDATIONS Setup the merchandise outside the store, this can create a sense of excitement and buzz: consider a "Street Fair" environment, with flags and balloons. Customers are in a hurry. It is better to use signage to identify not only departments but also categories -- this will help customers pinpoint what they need and inspire additional purchases. Plan on changing the displays at least weekly. Merchandise that moves will catch the eye, so it is better to have anything that moves --from clocks to toys to music boxes, take one out and set it up. Great merchandising appeals to more than the eyes. Consider how store sounds, smells, and even feels.

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5.4 ON A FURTHER NOTE It evolved out of my study that although the importance of VM is growing, there are no real metrics for measuring its effectiveness. There is no right or wrong as far as retailing and Visual merchandising are concerned. There is no way to find out what worked. It is just trying out new things. Some things work, some things do not I feel that a Dosage test can be employed in this regard. When product promotions remain constant, increasing levels of visual merchandising efforts can be employed to see the response of customers. Periodically monitoring increase in sales during times of dramatic VM implementations can also be a way to determine if the VM efforts paid off.

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CHAPTER VI BIBLIOGRAPHY

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Books: Malhotra, Naresh K. Marketing Research. New Delhi: Prentice-Hall of India Private Limited, 2006 Nagundkar, Rajendra. Marketing Research. New Delhi: Tata McGraw-Hill Publishing Company Limited, 2008 Kotler, Philip and Kevin Lane Keller. Marketing Management. New Delhi: Prentice-Hall of India Private Limited, 2007 Pradhan, Swapna. Retail concepts, 2006 Clark BH, Montgomery DB. Managerial Identificationof Competitors. Working Paper No. 98127, Marketing Science Institute, Cambridge, MA, 1999. Sheikh, Arif and Kaneez Fatima. Retail Management. New Delhi: Himalaya Publish House, 2008 "IT Happened in India" by kishore Biyani REFERENCES: Loganathan, D. (2009). Indian Retail Industry An Exploratory Study. Retrieved March 11,2010, from retailnetworks http://www.retailnetworks.org/index.php?option=com_content&task=view&id=14 25&Itemid=302 Arora ,V.P.S., Sharma, Shivani, and K. Singh, Nirdesh. (2007). Nature and Functioning of Visual Merchandising in Organized Food Retailing. Retrieved August 11, 2010, from Ageconsearch http://ageconsearch.umn.edu/bitstream/47438/2/3-VPS-Arora

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Electronic References: Electronic Media and URLs (2003). Retrieved August 11, 2010, from Retail Franchise India online, Retail franchise India website: http://retail.franchiseindia.com/articles/Retail-Store-Operations/VM-andDesign/Sensoryexperience-must-in-retail-design-163 www.rai.net.in www.pantaloon.com
www.retailyatra.com

www.futurebazaar.com

www.futuregroup.com

www.Retailerslideshare.net www.supplychaintoday.com/info007.html www.scribd.com www.retailchoice.com www.theretailbulletin.com www.globalretailbusiness.com www.Wikipedia.com

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Chapter VII Appendices

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APPENDIX-1

QUESTIONNAIRE

Hi! Hope you enjoyed the shopping. It would be really great if you can help me (PGDM Student of SCMS-COCHIN) in understanding a few things that would make shopping effective and entertaining. Please help me by filling out this questionnaire and be a part of my Marketing Research project.

Name of the Store: Big Bazaar Karnataka

Location: Hubli,

1. How often do you visit this store? More than once in a week Once a week

Once a month Only on offer days (Big days, Wednesday bazaar) Very rarely

2. How do you come to know about new product arrival in the store? Through Display of the product Through offers Through announcements By enquiring salesperson You will search by your own

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3. Do the way of product arrangement & display in the store attract you? Always Mostly Sometimes Rarely Never

4. Generally I follow the displays and layout to find a product. Strongly Agree. Agree Neither agree nor disagree Disagree Strongly Disagree

5. When I enter the store.... I go straight to the products which I want I walk through the store as it leads me I do not follow any pattern. I just walk randomly and pick up products I seek the help of salesperson to navigate in the store Others (Please specify) _______________________________

6. While shopping, how do you come to know about the offers for the day in the store? (Tick only one option which is most relevant) Sign boards/drop downs promo areas (Melas, Celebrations) Sales People
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 Pamphlets Announcements in the store

7. Which of these is most relevant with regard to your shopping? I bought what I came to buy. Nothing More. I bought a little more than what I came for. I bought lot more than what I came for. I bought everything that attracted me. I did not find what I needed. So I did not buy anything.

8. If you have bought some products other than what you came to buy, which of the following factors made you buy more? (Tick as many as applies) Attractive display of the product Good Product Information provided by salesperson When I see a good deal, I tend to buy more than that I intended to buy. No specific reason, I just bought because I liked the Product I did not buy anything out of list

9. Have you ever experienced instant/unplanned buying in store ? Yes No If yes, which factor influenced you more to take instant/unplanned buying decision? Influence Product arrangement Placing of the product
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 Influence of Promotional Signage Excitement in trying a new product Influence of mannequin display

10. At which place you tend to do more impulsive buying in the store? Nearby cash counter while waiting for payment Promo area (Melas, celebrations) Nearby coffee bar Where promotions are too attractive in the store

11. What do you feel about the product arrangement in the store? Excellent very good Good Average Poor

12. Visual display/Presentation of products influences my buying decision in the store. Strongly Agree. Agree Neither agree nor disagree Disagree Strongly Disagree

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13. How do you feel that the following factors influence your buying decisions in a store? Rate the following from 1-5. [ ] Locating products through signs, graphics etc [ ] Lighting [ ] Music [ ] Fragrance [ ] Colours 14. Can you recall one product based on the display which was prominently promoted in the store?

Please specify__________

15. On the whole how was your shopping experience with Big Bazaar? Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied

Any

suggestions

to

improve

the

display

and

visuals

in

the

store_________________________

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Demographics

1. Name: ______________________________________________

2. Gender: Male / Female

3. Age: 10-20 / 20-30 / 30-40 / 40-50 /50 & above

4. Education:

5. Occupation: Student/ Employee /Business /any other (please specify) _________________

6. Income range: 4k-10k / 10k-20k / 20k-30k /30k-40k/40k & above

7. Contact no:

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APPENDIX-2

About Hubli - Dharwad Location : The twin cities of Hubli-Dharwad are located at a distance of around 420 KM north of Bangalore, the capital of Karnataka state and 550 KM south of Mumbai. The city of Dharwad is just east of the famous Western Ghats and is surrounded by hills and lakes. Dharwad district (before Re-organization of 1997) covers an area of 13738 sq. KM and with a twin city population of about 9, 00,000. The city of Dharwad is the district head quarters and twin cities (HubliDharwad) are educational and financial, industrial hub for North Karnataka Nearest Airport: The Airport at Hubli (18 KM). There are other nearby airports like Belgaum (80 KM), Goa (160 KM), Bangalore (420 KM) and Mumbai (550 KM). From each of above cities there are numerous luxury buses and trains. About Hubli

Hubli is a major city of this district and is a famous industrial town. This historic town was known as Raya Hubli and also as Elaya Puravada Halli during the ancient times. This city metamorphosed into an important commercial centre for trade in cotton and iron during the reign of the Vijaynagara empire. The city is noted for its handloom textile units and has many cotton ginning and processing mills. The district has some of the important monuments like the beautiful temples, churches, mosques, and monasteries that are worth a visit. Not to be missed are the delicious Pedas, the specialty of the district.

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Fact Sheet - Hubli - Area - Population 13738 SQ Km 9,000,00

- Languages Spoken English, Hindi, Kannada & Marathi. - Climate Temperature 16-37 Degree C Semiarid climate 15.21 N 75.07 E - Airport - Railway Available Hubli is well connected to Bangalore & Mumbai by rail network. 18 trains passing through Hubli. - Power - Water supply - Telecom services On par with best in Karnataka. Futuristic water supply and sewage Normal connections; ISDN at the rate of 64 /128 /384/512 Kbps; Intelligent networks; Broadband connectivity; leased lines - Internet services - Network Access PSTN Dial up / ISDN Dial up / Leased Any data rates like 2/8 /34 /140 Mbps and multiple access from customer premises on optical fiber system Redundancy provided by optical fibers in SDH ring - Leased line circuits Leased circuits of 64 Kbps, 2 Mbps available from any Location in NK to national or international destinations
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. 2 / 8 / 140 Mb access can be provided from the users premises on optical fiber system

- Real Estate

Commercial cost / sq ft: 15-30 for rental, Rs 1,000 3,000 for Purchase in Hubli city. Housing Rent 2,500-5,000 for a two bedroom apartment Rs 700- 1,000/ sq.ft. for purchase of ready to occupy apartments

- Education - Recreation Parks

72.1% literacy. wide open spaces in addition to facilities like clubs, theaters, etc.

- Health Care

Fully equipped generic and specialty hospitals with state -of-art facilities, both at Hubli and Dharwad

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