STUDY ON IMPACT OF VISUAL

MERCHANDISING WITH SPECIAL

REFERENCE TO BIG BAZAAR, MANGALORE

A Project Report submitted to

Srinivas University in Partial Fulfilment of the requirement for

The Award of Degree in

Master of Business Administration

By
VIJETHA
R
Reg No: 2SU18MB860

Under the Guidance of

Prof. Anumesh D
Kariappa
College of Management &
Commerce, City Campus, Srinivas
University

SRINIVAS UNIVERSITY
1
Mukka, Mangalore – 574146
2019 – 2020

2
 DECLARATION

I, Ms. Vijetha R student of MBA, belonging to College of Management & Commerce,

Srinivas University, declare that this Project Report / Dissertation entitled “Impact of
visual merchandising on sales at Big Bazar, Mangalore” is the result the of project /
dissertation work done by me under the supervision of Anumesh D Kariappa,
Professor at College of Management & Commerce, Srinivas University.

I am submitting this Project Report / Dissertation in partial fulfilment of the requirements

for the award of the degree of Master of Business Administration by the Srinivas
University during the academic year 2019 – 2020.

I declare that this project report has been tested for plagiarism, and has passed the
plagiarism test with the similarity score less than 25% and it satisfies the academic
requirements in respect of Project work prescribed for the said Degree.

aI further declare that this project / dissertation report or any part of it has not been
submitted for award of any other Degree / Diploma of this University or any other
University/ Institution.

(Signature of the

candidate) Date:

Certified that this project work submitted by Ms. Vijetha R has been carried out under
guidance and the declaration made by the candidate is true to the best of my knowledge.

(Signature of
Guide) Date:
 The Report is Generated by DrillBit Plagiarism Detection Software

Submission Information

Author Name Vijetha R

Title study on impact of visual merchandising with special
reference to big bazaar,Mangalore,
Original File Name 16_5507
Submission/Paper ID 132424
Submission Date 04-Aug-2020 02:14:03
Total Pages 28
Total Words 910

Result Information

Similarity 17 %
Unique 83 %
Internet Sources 17 %

Exclude Information

References/Bibliography Excluded
Quotes Not Excluded
Sources: Less than 14 Words Similarity Not Excluded
 ACKNOWLEDGEMENT

The credit of making this study report a success goes to many individuals for their
guidance & help. However first & foremost I would like to thank the Almighty God for
his blessing and giving me the courage and good health to carry out the internship for a
months period. I am thankful to the college - College of Management & Commerce,
Srinivas University for having given me an opportunity to carry out my Winter
Internship program for a period of one month as part of my MBA curriculum.

I am very thankful to Dr. P.S Aithal, Vice Chancellor, College of Management &
Commerce, Srinivas University for giving me the opportunity of carrying out this Project
Work.

I am very thankful to Prof Anumesh D Kariappa, College of Management &

Commerce, Srinivas University without whose assistance I would not have been able to
get this project done . His contacts and valuable inputs during the internship period
helped me stick to BigBazar and learn the concepts of the Advertising world.

I express my heartfelt gratitude to Mr Sharath Kumar ,HR, BigBazaar, bejai mangalore

for giving me an opportunity to carry put an internship . I would also like to thank the
other staff members of Big Bazaar for their direct and indirect support. Without their co-
operation it would have been difficult for me to have completed my organisation field
study successfully.

My beloved parents and my friends have played an important role by giving me their
support & blessing at all times. Their encouragement has been a driving force to help me
achieve my goal. I gratefully acknowledge the support, encouragement & patience of all
individuals who have spent their valuable time with me for the success of this project.
Vijetha R

3
 INDEX

Chapter No. Topic Page No.

1 Introduction and theoretical back 2-39
ground of the study

2 Industry and Company Profiles 40-55

3 Research Design 56-59

4 Analysis and Interpretation of data 60-80

5 Findings 81-83

6 Conclusions and Suggestions 84-85

7 Bibliography 86-88

8 Appendixes 89-92
 TABLE OF CONTENTS

S.no Title Page.

No
1.1 Introduction
1.2 The 5 Sensory Elements
1.3 Visual Merchandising Elements
1.3.1 Exterior Presentation
1.3.2 Exterior Signs
1.3.3 Marquees
1.3.4 Banners
1.3.5 Entrance & Aisles
1.3.6 Window Displays
1.4 Principles Of Design
1.4.1 Interior Presentation
1.5 Impulse buying - The trick of Visual Merchandising
1.6 Display Design
1.7 Props, Fixtures and Signage
1.7.1 Props
1.7.2 Image
1.8 Fixture Types
1.8.1 Straight Rack
1.8.2 Four way fixtures
1.8.3 Wall Fixtures
1.9 Merchandise Display Planning
1.9.1 Shelving
1.9.2 Hanging
1.9.3 Pegging
1.9.4 Folding
1.9.5 Stacking
1.9.6 Dumping
1.9.7 Depth
1.9.8 Planogram
1.10 Merchandise And Fixture Display Recommendations
1.11 Basic rules for fixture placement
1.12 Interior Signage
1.13 Errors commonly occurring in display
1.13.1 Too little merchandise
1.13.2 Lack of underlying theme

5
1.13.3 Length of time for a display
1.13.4 Limited or No Display Budget
1.13.5 Lack of attention to Detail
1.14 Use of other sensory organs for merchandising
1.14.1 Use of music
1.14.2 Perfumes and Scent
2.1 Title
2.2 Primary objective
2.3 Secondary objectives
2.4 Sampling Plan
2.5 Data Collection
2.6 Data collection mode
2.7 Plan of Analysis
2.8 Limitations of the study
3.1 Indian Retail scenario
3.2 Retail formats in India
3.3 Major retailers in India
3.4 Challenges facing Indian retail industry
3.5 The Future
3.5.1 Future trends
3.6 About the future group
3.6.1 About Pantaloon Retail (India) Limited
3.6.2 Big Bazaar
4.1 Frequency of visitors to Big Bazaar
4.2 Factors tells about new product arrival in the store
4.3 Perception about product arrangement & display in the store
4.4 Perception about following the displays and layout to find a
Product
4.5 Action after entering the store
4.6 Perception about promotional activities in the store
4.7 Most relevant activity regarding shopping
4.8 Factors effecting buying behavior
4.9 Experience of impulsive buying in the store
4.10 Factors affecting the impulsive buying behavior in the store
4.11 Place of impulsive buying
4.12 Perception about product arrangement
4.13 Perception about change in buying decisions with the influence
of display
4.14 Perception about factors affecting the buying decisions
4.15 Product recall
4.16 Assortment * Display influence Cross tabulation
4.16.1 Null hypothesis
4.16.2 Alternate hypothesis
4.17 Crosstab between Display influence and satisfaction levels of
Customers
5.0 Findings and Conclusions
5.1 Suggestions
5.2 Recommendations
5.3 On a further note
 LIST OF TABLES

Table Particulars Page No

No
1 Frequency of visitors to the Big Bazaar
2 Factors tells about new product arrival in the store
3 Perception about product arrangement & display in the
store
4 Perception about following the displays and layout to
find a Product
5 Action after entering the store
6 Perception about promotional activities in the store
7 Most relevant activity regarding shopping
8 Factors effecting buying behavior
9(a) Experience of impulsive buying in the store
9b (1) Case processing summary
9b (2) Factors affecting the impulsive buying behavior in the
store
10 Place of impulsive buying
11 Perception about product arrangement
12 Perception about change in buying decisions with the
influence of display
13 Perception about factors affecting the buying decisions
14 Shopping Experience at Big Bazaar
15 Product recall
16 Assortment * Display influence Cross tabulation
17 Crosstab between Display influence satisfaction levels
of Customers
 LIST OF FIGURES

Figure Particulars Page No

No
1 Frequency of visitors to the Big Bazaar
2 Factors tells about new product arrival in the store
3 Perception about product arrangement & display in
the store
4 Perception about following the displays and layout to
find a Product
5 Action after entering the store
6 Perception about promotional activities in the store
7 Most relevant activity regarding shopping
8 Factors effecting buying behavior
9(a) Experience of impulsive buying in the store
9(b) Factors affecting the impulsive buying behavior
10 Place of impulsive buying
11 Perception about product arrangement
12 Perception about change in buying decisions with the
influence of display
13 Perception about factors affecting the buying
decisions
14 Shopping Experience at Big Bazaar
15 Product recall
 EXECUTIVE SUMMARY

The India Retail Industry is the largest among all the industries, accounting for
over ten per cent of the country’s 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. This is a flagship company of future group
which comes under future value retail limited with having annual turnover of
twenty three crores.The purpose of the study was aimed at finding out the Impact
of Visual merchandising (VM) on customer buying behavior at Big Bazaar.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. 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. 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.

1
 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 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 customer’s 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 store’s 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 store’s unique identity and best form of advertising.
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
store’s 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.

1.1.1 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-of- purchase 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.
1.1.2 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 colors, 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 retailer’s details should always
keep in mind the sense of smell of a shopper. Good odor 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 today’s quality-
conscious 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.
1.1.2 VISUAL MERCHANDISING ELEMENTS

1.1.2.1Exterior 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.

1.1.2.2Exterior 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 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
6
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.

1.1.2.3Marquees

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.

6
1.1.2.4 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.

1.1.2.5 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
customer’s 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.

1.1.2.6 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 store’s 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 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.
1.1.3 PRINCIPLES OF DESIGN
1.13.1 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

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

1.1.3.2 Impulse buying - The trick of Visual Merchandising

A research conducted in US suggests that 64.8 per cent of all purchase 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.
1.1.4.3 Display Design

An effective way of attracting customers to a store is by having good displays, both exterior
and interior. A customer will be 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.

1.1.4.4 PROPS, FIXTURES AND SIGNAGE

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.

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 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.

a) Straight Rack - Long pipe suspended with supports to the floor or attached to the
wall.
b) Four-way fixtures: Two cross bar that are perpendicular to each other in a pedestal.
 c) 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.
ii. MERCHANDISE DISPLAY PLANNING

 Shelving – flexible and easy to maintain.

 Hanging- Suspending merchandise from hangers
 Pegging – small rods inserted into walls.
 Folding – For soft lines that can be folded and stacked on shelves or tables – creates
high fashion image.
 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
 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.
 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.

 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:

1. Improved sales presentation and closure results

2. Increased consumer appeal of product displays

3. Better brand awareness through consistency

4. Improved efficiency of shelf space allocations

5. Improved financial performance of assortments

6. Faster more accurate replenishments

7. Quicker inventory resets

8. Much better marketing through targeting displays

iii. 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 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.

a. 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.

b. Interior Signage

Signage is a critical part of interior display and point-of-purchase promotion. Store 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, colors, quality and prices. They can also be used to explain customer benefits and
describe merchandise features.

c. 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
d. Too little merchandise

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

Generally the 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.

 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.

 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.

 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.

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.
 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:

1. The display should be absolutely clean without any dust

2. Signs should be attached in the display providing all the necessary information
3. Lights in the display area should be covered. Moreover caution is to be taken to avoid
fire and other related disasters
4. 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
5. The four principles of design and display include emphasis, balance, rhythm and
proportion. These principles must be reviewed every time the display is completed.
6. Every display needs a point where the viewer’s 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.

e. Use of other sensory organs for merchandising

 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.

 Perfumes 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.
 1.2 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 color
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 (Gross art 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.

Kaur Amandeep (2013) came up with an important finding that the store derives as much of
its identity, character and gravity rom its physical contours, as from the products it houses
and the individuals who manages the operations in the store. Also, visual merchandising
practices certainly influence customers‟ buying behavior.

Their research revealed that is a direct proportional relationship between customers' buying
behavior and in-store form/mannequin display, promotional signage and window display.
Jigna N. Ahir, Vishal J. Mali (2013) advocated that due to increasing competition and the
similarity of merchandise, retailers utilize visual merchandising to differentiate their offerings
from others' as well as to improve the desirability of products. Since impulse buying is a
common aspect of consumers' behaviors and a focal point for strategic marketing plan.

Dr. Alireza Miremadi, Rahil Khoei (2013) in their study understood from mentioned test that
Iranian shoppers give more importance to visual communication, visual merchandising, and
staff management.

S Madhavi and T Savati (2013) suggested that the attributes that are associated most strongly
with the purchase intention were: merchandise colors, presentation style, awareness of
fixtures, path to merchandise, sensory qualities of materials and lighting. Their findings
suggest that liking the display doesn’t totally determine purchase, but it does make it four
times more likely. These visual merchandising practices helps in provoking the desire that
ultimately motivates a customer to make unplanned purchase decision upon entering the
store, significantly influence customer's impulse buying behaviors.

K. R Pillai et al. (2011) visually appealing stores and outlets dose help respondents to create
an image of the brand in the minds of the customers. Contradictory to the customer’s
preferences, visual merchandisers rated illumination as the most preferred in-store visual
appeal creating factor at their store locations / outlets but customers did not give it a high
rating. Among various features at the store, visual appeal got the highest ranking that helps in
converting window shoppers into real customers.

Yolande Hefer, Michael. C. Cant (2013) found that consumer behavior is influenced only to a
limited extent by visual merchandising displays. Visual merchandising guide consumers in
the direction of the products and also helps in making product choice. Personal preferences
and the quality of displays can influence the consumer behavior.

Vandana Gupta (2013) supported that lightings and colors are the essential part of the Visual
Merchandising. Toward store with proper lightings and colors positive response received
from the majority of the customers. Visit from frequent purchasers shown a higher positive
response towards the lightings and colors used in the store and it also indicates that lightings
and colors have a positive impact on the customer loyalty. Signage is an essential part of
Visual Merchandising, signs displayed helps in providing basic information to the customers,
and this is the area which can be improved upon by Evok. Young Ha et al. (2007) revealed
that many VMD features used by offline stores have been implemented online. In addition,
some online apparel stores VMD features do not have a direct offline parallel.
Gaynor Lea-Greenwood (1998) found that visual merchandising practices certainly influence
customers buying behavior. The research revealed that there is a direct proportionate
relationship in between customers buying behavior and in-store form / mannequin display,
promotional signage and window display.

Jiyeon Kim (2012) found a significant relationship between college student’s impulse buying
behavior and in-store form / mannequin display and promotional signage. Even though it is
seen that college student’s impulse buying behavior is not affected by floor merchandising
and window display, but the results of the study still suggested that these variables and
student’s impulse buying behavior are significantly correlated. Study also argued that all four
types of visual merchandising (window display, in-store form / mannequin display, floor
merchandising, and promotional signage) are significantly interrelated and relationship in
them have influences on consumers' impulse buying behavior.

Atmosphere in the retail store may also have impact on shopper behavior. According to
Chain Store Age (2004), the majority of consumers (63%) remember occasions when they
buy more or spent more time in the store because of its atmosphere. Moreover, from those
who were influenced by the atmosphere of the store, almost half (45%) of them informed that
they not only spent more money but also more time in the store. As noted in Turley and
Milliman's (2000) review on the atmospheric effects on the consumer behavior, time spent in
the store based on its atmospheric influence has received attention from researchers and
therefore needs further discussion. Spending time in the store is related with the desire to stay
in or to get out of its environment and also with the decision to shop or not to shop at the
store (Kellaris and Altsech, 1992). In their landmark article introducing the Mehrabian-
Russell (M-R) environmental psychology model for the study of store environment, Donovan
and Rossiter (1982) suggested that store induced with pleasure plays a significant role in
determining the approach-avoidance behavior within the store, including spending behavior.
Store induced with feelings of excitement and alertness could result in increased time spent in
the store. More than a decade later, Donovan et al. (1994) copied and extended the Donovan
and Rossiter's study, confirming that pleasure generated by atmosphere of the store
contributes in extra time spent in the store and unplanned spending. In 2003, Babin et al.
found that the combination of lightings and colors plays a vital role in influencing the
purchase intention of consumers for store patronage. Kouchekian and Gharibpoor (2012)
found that grocery store layout, color, lighting, design, cleanliness and height of shelves are
the significant determinants of consumer buying decision at the store.

Visual Merchandising In Relation To Impulse Buying Behavior:

"Browsing in-the store is the examination of a retailer's merchandise for recreational and
informational purposes without an immediate intent to buy" (Bloch, Ridgway, and Sharrell,
1989, p.14). Jarboe and McDaniel (1987) found that in a regional mall setting more
unplanned purchases were made by those customers who browsed in the store than the non-
browsers.

Color: Bellizzi et al. (1983) investigated the effects of color in retail store design. The results
shown that despite of color preferences, participants were physically attracted towards the
retail store with warm color (yellow and red), but they also found that environment in the
(yellow and red) color retail store was generally unpleasant, negative, tense, and less
attractive as compared to environment in cool color retail store (green and blue).

Product Display: In a study carried out by Abratt and Goodey (1990) product display has
been identified as in-store stimuli. Simonson and Winer (1992) found that purchase behavior
can be influenced by the manner in which inventory is displayed. Kumar and Leone (1988)
mentioned that products display can be very useful in stimulating sales.

Music: Bruner (1990) suggests that the kind of background music is likely to strongly affect
the perceptions and preferences. They reported that based on gender the impact of loudness
on musical preference differs, towards louder music females reacting more adversely than
males. Oakes (2000).

Lighting: Mehrabian (1976) "believed that lighting was a prime factor in the environmental
impact on individuals because brightly lit rooms are more arousing than dimly lit ones".
(Summers and Herbert, 1999) Areni and Kim (1994) found that under bright lighting
condition consumers examined and handled significantly more items than under soft lighting
conditions.

Cleanliness: A study by Carpenter and Moore (2006) across the entire retail formats both
frequent and occasional shoppers determined cleanliness to be the single most important store
attribute. Yun and Good (2007) declared that shopping in an ultra-clean store might create
perceptions of cleanliness, contentment, or luxury for the store.
Store Design or Store Display: It was also understood from Bellizzi and Hite (1992) study
that displays are one of the most important elements that can influence customers for
unplanned purchases. Abratt and Goodey (1990) stated that displays at the point of purchase
can be very useful in stimulating sales. In addition it was stated that the shoppers get more
influenced by the floor of a store than its ceiling.

Merchandising includes "sales promotion as a comprehensive function including market

research, development of new products, coordination of manufacture and marketing, and
effective advertising and selling" (Merriam-Webster dictionary). Visual merchandising is a
subcategory of merchandising and it is becoming increasingly more important to both
consumers and retailers. Factors such as the economy and changing consumer behavior are
altering the way consumers shop for products. An advertisement on television or in a
magazine is no longer going to fully convince customers to purchase a particular brand.
Consumers have an unlimited amount of information and buying opportunities at their
fingertips on the internet. Because of this, it has become even more critical for retailers to be
able to attract consumers to their products. Consumers are currently facing a growing number
of brands in almost every product category, and it is up to the visual merchandising team to
draw consumers not only to certain brands and products, but to their retail outlets as well.

Visual merchandising is defined as "the display of products which makes them appealing,
attractive, accessible, engaging, and enticing to shoppers in a retail store" (Farfan, n.d.).
Visual merchandisers add value to a retail outlet by making shopping an experience rather
than a chore. Effective visual merchandising will increase the amount of pleasure a consumer
receives from their shopping experience. Ultimately, visual merchandising should act as a
persuasive method and should convince the consumer to purchase that particular product or
brand.

The term "displays" in the definition is a broad category that encompasses almost every
promotional item in a store. Floor layouts, internal displays, window displays, signs, banners,
and even the interior and exterior designs of a retail outlet are all managed by a visual
merchandiser (Waters, n.d.).
Overall, visual merchandising should create a positive atmosphere for the consumer
(BastowShoop, Zetocha, & Passewitz, 1991). This should help with not only sales, but
consumer satisfaction. If a consumer enjoys the atmosphere in Starbucks or Macy's, for
example, they are more likely to spend a considerable amount of time browsing and
purchasing products in that outlet. They are also more likely to visit the store again if their
experience was a pleasant one.

The Need for Visual Merchandising The changing economic and consumer environment is
making visual merchandising more of a priority for many retail outlets. Despite the increase
in the amount of retail space available to consumers, they are spending less money on
products per square foot (Bronson, n.d.). This means consumers are more selective than ever
when purchasing products, especially during tough economic times. The recent recession has
changed the way consumers manage their money because they are heavily and directly
impacted by a poor economy.

When economic times are bad, consumer attitudes towards spending also tend to be bad, and
vice versa when times are good (Babej & Pollok, 2008). Consumers have cut back on many
of their lavish purchases and have developed the desire and necessity to live within their
means during the recession (The great reshuffle, 2009).

Further, fifty-five percent of consumers have experienced some form of economic hardship,
and wealth in the average American household has decreased twenty percent (Zogby, 2010).
Overall, this results in more cautious American consumers when it comes to purchasing
products and services. The concept of value is more prevalent to consumers because they're
on a limited or tightened budget; they want and need the most utility for their money. For
example, consumers are switching to generic brands from name brands and foregoing luxury
items more frequently. Clothing, cars, entertainment, and household goods, such as
furnishings, are seen as secondary wants, and not necessarily needs anymore (Beutler, 2011).

Consumers need to be reminded of products through advertising, and most importantly,

drawn to goods in the retail outlet through visual merchandising in order to simply be placed
into a consideration set. A major consumer trend is the shift to convenience shopping
(Bronson, n.d.).

Convenience goods are bought with minimum effort, which means consumers are seeking the
easiest shopping experience possible. They are also looking for speed of purchase and
convenience of location for both the retail outlet and the product itself. Perceived and actual
time spent considering competing brands is a major constraint when shopping based on
convenience (Yale & Venkatesh, 1986).

In a survey, consumers spend very little time when shopping for convenience goods.
Compared to other products, where consumers felt they spent a lot of time shopping, this is
very low (Heckler, Childers, & Arunachalam, 1989).

In general, consumers do not have the desire to be shopping around for an extended period of
time. This can be a possible explanation of why internet shopping has grown to be so popular.
Information is accessed faster than in a retail outlet. Consumers can compare brands in a
matter of seconds with minimal effort compared to traditional modes of shopping. Reviews
and opinions about products are published frequently. This is information that is not readily
available in a retail outlet without the consumer putting forward a decent effort. It is up to
promotional materials to persuade consumers into, first, placing the product into their
consideration set, and second, choosing the product. Further, visual merchandising is
extremely important for simply catching consumers' attention. Eighty-three percent of
information gathered by a human comes from sight. This is interesting because it could easily
be assumed that touch would have a major impact on consumer impressions, especially when
buying a tangible product. In reality, touch only accounts for 1.5% of information gathered
(Quidores, 2012).

In result, attractive displays, visuals, and promotional items have the greatest potential impact
on consumer behavior. Window displays can grab a consumer's attention before they have
even entered a store. A proper display on a sales floor has the ability to increase sales for that
product by 540% (Quidores, 2012). This is extremely important for retailers. If they choose
not to take advantage of visual merchandising, they are potentially missing out on a large
amount of sales. And in current times, with the economy and changing consumer behaviors,
it is essential for retailers to take advantage of profit-making opportunities. The Perceptual
Process The perceptual process begins with a sensory exposure. In visual merchandising, the
sensory exposure is most likely sight since it has such a high importance to consumers. This
exposure leads to attention and then comprehension. Sensory exposure, such as a sign in a
mall, needs to be at or above the absolute threshold. The absolute threshold is the minimum
level of stimuli a consumer needs to experience a sensation. If the sign is not at the absolute
threshold, it will more than likely go unnoticed by the consumer. While the level of stimuli is
subjective for each consumer, it is important to consider when planning and developing
different elements of visual merchandising. Arousal is the state of physical wakefulness or
alertness experienced by a consumer. Arousal is low when sleeping and high during exciting
events. Arousal is an important consideration when evaluating the level of stimulation a
display possesses. With too little stimulation, arousal remains low and consumers retain little
information. But if stimulation is very high, consumers become over-stimulated and
essentially shut down. Their arousal also becomes too high, resulting in little retained
information. This goes against assumptions that an overly-stimulating display is memorable.
In fact, consumers remember the most about a display when their arousal is moderate. Visual
merchandisers need to decide whether they are going to choose a display with salient stimuli
or vivid stimuli. Salient stimuli draw consumers' attention involuntarily, but are context
dependent. For example, an elaborate display in a small, local grocery store may seem more
interesting than the same display in a large, chain grocery store where these kinds of displays
are common. Salient stimuli depend on their novelty, intensity, and complexity to attract
consumers' attention and to be memorable. Vivid stimuli are also involuntary, but vivid
stimuli are emotionally interesting, concrete, imagery provoking, and rely on proximity to the
consumer. Salient and vivid stimuli do not capture the attention of consumers one-hundred
percent of the time, but it is the hope of the marketer that they will help make promotions or
displays more appealing to consumers (Kardes, Cronley, & Kline, 2011).

Out of Store Influences Visual merchandising is a powerful tool for promoting products and
brands to consumers. Visual merchandising has the ability to increase sales and profits, but
any kind of advertising or promotion is not one hundred percent effective. Consumer choice
is not as easy as a fancy window display. There are a lot of different factors that affect the
choices consumers make. Involvement is the personal relevance and importance of an issue
or situation. Enduring involvement is constant interest in a topic or issue. If a consumer really
enjoys fashion, a fashion forward window display would be most appealing to them. If they
have hobbies that fall under fishing, they might be more likely to browse a display of the
newest fishing rods. Because these consumers have interests that are enduring they will
always be attracted to the appropriate displays. This is where retailers can use target markets
to their advantage. On the other hand, situational involvement is based on special
circumstances or specific conditions. Involvement is high in situational involvement, which
means there will be a lot of thought put forth by the consumer. This is where visual
merchandising might be slightly less effective because impulse buys are less likely. A display
may attract their attention, but if a consumer has a list of requirements that do not match the
product, the display ultimately will not matter to them when making a choice. Established
beliefs and attitudes sway consumer consideration and choice. Beliefs are non-evaluative
judgments that describe a consumer's ratings on product attributes and benefits. Attitudes
usually follow beliefs, and are evaluative judgments. A coat on a mannequin at a JC Penny's
in New Hampshire provides a lot of information to consumers. When they first look at it, they
may believe the coat looks warm because it is puffy. When they actually try it on, though,
they may find the coat is deceiving not very thick, so they put it back on the rack. The
attitude they develop may be that particular coat will perform poorly in the cold New
England weather. This attitude has the two components evaluative attitudes need: direction
and extremity. The direction is negative, while the extremity is strong since the consumer
decides immediately not to purchase the coat. In this case, the display does not have any
effect on the consumer's final decision on whether to purchase the coat or not, even though it
may have convinced them to examine the coat more closely (Kardes, Cronley, & Kline,
2011).

Individual Difference Measures Self-Monitoring Scale The self-monitoring scale was

developed by Mark Snyder in 1974. This scale is used to measure “the extent to which people
regulate their self-presentation by tailoring their actions in accordance with immediate
situational cues” (Lennox & Wolfe, 1982, p. 1349).

A high selfmonitor adapts their actions based on the situation they are in. They have the
ability to distinguish what actions are appropriate based on external cues from others. The
public self and the private self are in two different states. High self-monitors are sensitive to
others’ behavior and adapt accordingly. Low self-monitors, on the other hand, are oblivious
to situational cues. These people have trouble hiding their true feelings in any given situation
and, therefore, have trouble adjusting their external behavior. In this situation, the public and
private self are essentially the same. The self-monitoring scale has been used in this study
because visual merchandising is a situational cue. If a display indicates a certain product is
positive, a high self-monitor may be more likely to adjust their behavior to match that cue. A
low self-monitor may be more likely to ignore the situational cue because external behavior
does not affect them in the same way. A potential correlation between visual merchandising
and self-monitoring could indicate who is more likely to welcome the message visual
merchandising attempts to send. A revised self-monitoring scale was used in this study.
Lennox et al. (1982) revised Snyder’s original 25 question scale to a 13 question scale. This
13 question scale measures “sensitivity to the expressive behavior of others and the ability to
modify self-presentation” (p. 1349). Each of these categories represents seven and six
questions in the scale, respectively.

According to Lennox et al. (1982), the shortened scale is more appropriate because it has
more of a focus on what it means to be a high or low self-monitor. They believe Snyder’s use
of questions involving theatricality do not give an accurate reading of the subject’s true
selfmonitoring score. Thus, through repeated testing, Lennox et al. (1982) were able to
reduce Snyder’s original scale by 12 questions. Need for Cognitive Closure Scale Need for
cognitive closure (NFCC) (Kruglanski & Webster, 1996) is defined as the “desire for a firm
answer to a question and an aversion towards ambiguity” (Kardes, Fennis, Hirt, Tormala,
Bullington, 2007, p. 378).

A person with a high need for cognitive closure has an aversion to ambiguity. They have a
desire for an answer to end any further reasoning on a subject. Once the desired amount of
information has been presented to the subject, they stop seeking more information and are
able to make a decision with a level of confidence. These individuals make their judgments
based on early information as opposed to later information. They are quick to disregard
information that appears to be ambiguous or hard to understand and fall back on their initial
perceptions. Kardes et al. (2007) used a six question need for cognitive closure scale that was
derived from the original 42 question scale for greater reliability. The six item scale was used
in this study. It was expected that people who are higher in NFCC may prefer visual
merchandising more than people with low scores. Visual merchandising aides understanding
of products and their benefits and it is likely that people who are higher in NFCC may find it
more useful in forming quick judgments than those who are low in NFCC.

Amandeep Kaur (2013) has undertaken a study in Chandigarh to determine the important
factors of visual merchandising which influence consumer’s buying behavior and in-store
promotion activities. Questionnaires regarding visual merchandising were filled by the
customers visiting the retail stores present at different locations in Chandigarh. Various visual
merchandising techniques like graphics and signage, fixtures, props, lighting and space
management were considered and study there impact on the buying of the customers. The
study also tried to explain the relationship between impulse buying and visual merchandising.
Through research we will be able to see that whether visual merchandising can attract more
customers, increase the traffic in the store, which ultimately would, increases the sales figures

Bashar & Irshad, (2012) has considered impact of form display, window display, promotional
signage and floor merchandising by taking sample size of 250 Indian respondents by
applying Pearson correlation. His findings are that window display and impulsive purchasing
are positively correlated. Impulse buying and store display are not correlated. Floor
merchandising is also correlated with impulse buying.

Derry Law, Christina Wong & Joanne Yip (2012), aim to explore consumer affective
response on visual stimulus in stores by considering the aesthetic, symbolic and cultural
perceptions of function-oriented product–intimate apparel. The literature to date tends to
focus on the interaction between individual visual merchandising elements (e.g. colour,
lighting) with consumers. However, the product nature and its symbolic meaning have not
been seriously taken into consideration. Due to the immense market potential in the East,
applying western-developed theories may not be universally appropriate. There may be
different results and patterns in consumer behavior. Thus, this study enrich existing
knowledge of atmospheric management by including the interaction of Eastern values and
product nature on affective responses.

Mehta & Chugan, (2012) has studied the contact of visual merchandising on shopper
impulse buying behavior. He took sample size of 84 customers visiting the retail stores of
India and find that window display has direct relation with impulse buying. However no
significant relation is found between form display and impulse buying but floor
merchandising shows direct relation.

S. Madhavi & T. S. Leelavati (2013) have tried to contribute to a deeper understanding about
the impact of visual merchandising on consumer buying behavior in shopping stores. The
paper analyses the influence of visual merchandising, especially the one related to the
shopwindows, on consumer buying behavior according to store attributes most valued by
consumers.

Vinamra Jain, Ashok Sharma & Pradeep Narwal (2012), in their paper explores women’s
decision making behavior towards apparel’s based on how they are displayed in windows and
in stores on mannequins or in form. Specifically it offers empirical results on the relationship
between women’s impulse buying, product decision making and visual appeal of apparel
displays. A questionnaire survey was employed as the tool to collect primary data and was
administered to 150 ladies in the Delhi/NCR region of India. The result shows that apparel
displayed on mannequins inside the store and in show windows has a significant impact on
the purchase decision of women .

S. Meenakumari (2013), in this research attempted to find out the role of visual merchandise
on Retailing among supermarkets in Chennai city. The components of visual merchandise
were analyzed in this study to find out the impact on purchase decision in supermarket. A
sample of 105 was collected. Promotional signage and floor space plays important role in
buyer’s decision.

Many studies have been done relating to visual merchandising, store aesthetics and how it
influences consumer shopping behavior. Numerous aspects contribute to understanding why
consumers shop the way they do, and how visual merchandising and displays affect
customer’s emotions and purchasing behaviors. To thoroughly understand this concept, this
paper reviews different studies that include: storefront window displays, consumer entry
decisions, elements of visual merchandising and store aesthetics, as well as the integration of
modern technologies to promote products to customers. Each of these studies correlates with
one another, and the effects visual merchandising has on consumer behavior.

A study conducted by Jain, Takayanagi, & Malthouse, explains retailer’s reliance on

promotional strategies such as visual merchandising, as a means of standing out to buyers.
Visual merchandising is used throughout the retail industry. Some of the areas visual
merchandising can be found are storefront window displays and in-store displays. Jain,
Takayanagi, & Malthouse, examine the importance of storefront windows on consumer
perception and buying behaviors. Two methods of collecting data are used. After conducting
twenty in-depth interviews, researchers developed a survey- based on the S-O-R framework
and distributed it to two hundred and nine female customers. The participants viewed
randomly assigned storefront windows and were asked to answer seven questions about their
perception of what they saw. There were five components that made up consumer’s
responses: social, informational, hedonic, and image related. Additionally, it was found that
storefront windows which elicit these responses can create a “good feeling” enhancing
purchasing power. This study enables managers and merchandisers to incorporate elements of
visual merchandising that customers respond well to, both environmentally and emotionally
(Jain et al., 2014). The study correlates with visual merchandising strategies and its effects on
consumer shopping behavior, because without understanding the customer and the way they
view storefront displays; stores will not be able to influence customer's emotions. When
considering visual merchandising, and the effect it has on consumer behavior, it is essential to
discuss aspects of merchandising specifically in storefront windows, that are visually
perceptions of store/brand image and, ultimately store entry decisions (Oh & Petrie, 2012).

Pantano, examined the effects of engaging consumers through storefront window displays by
incorporating interactive technologies. Retail is as competitive as ever, and retailers must
continue to emerge and be ahead of the “next popular thing”. The study consisted of six focus
groups lead by moderators. The focus groups focused on behavioral and perception questions.
At the end of the focus groups, participants engaged with integrated technology that would be
found in storefront windows, and asked to comment on their attraction to such technology.
Moderators asked participants what the most prominent aspect of an enticing storefront
window included. The findings concluded that there is significant importance to the
aesthetical elements of the storefront window, with an emphasis on brightness and lighting.
While the integration of interactive technologies can enhance storefront windows if
effectively used, storefront visual merchandising can also impact consumers shopping
behavior and store entry decision.

Although, visual merchandising of storefront windows is a crucial to attracting customers to

a store, another aspect that influences consumer shopping behavior is the interior aesthetic
stimuli of a store. The proper use of aesthetics creates a positive or negative atmospheric
environment, directly influencing consumers buying decisions. A study done in China
examined the effects of visual merchandising, store aesthetics and the response to store
displays in the intimate apparel market on consumer buying behaviors ("Visual
Merchandising Strategies," 2012).

There are cultural differences between the way female consumers shop in Asia, and how they
perceive visual merchandising. The study concluded that Asian consumers also view visual
merchandising as a vital aspect of influencing purchasing decisions. However, one cultural
difference found that, Asian consumers preferred to see intimate apparel displayed
functionally and femininely, rather than uniquely. Another study conducted in China within
the intimate apparel market aimed to investigate the relationship between visual
merchandising elements and consumer affective response (Law, Wong, & Yip, 2012).
The study concluded that female consumer participants between the ages of 25-35 evaluate
visual merchandising two ways: hedonically and functionally. Hedonic shoppers accept
visual displays while functional shoppers do not, and in some instances, elicit negative
emotional responses to visual merchandising methods. Not only are store atmospherics and
visual merchandising essential qualities for retailers to influence consumer shopping
behavior, but it is necessary for retailers to understand their target market. When a store
understands the way their customer shops, it is easier to appeal to them through targeted
visual merchandising techniques.

A study conducted by, Thang and Tan, explored the consumer perception to the preference
of retail stores through an empirical assessment of multi-attributes of store image. The study
used the S-O-R framework and Likert scale, to examine the relationship of consumer retail
behavior. Customer perception of a retail store (merchandise, store experience, brand image,
etc.) directly affects the consumers store preference. Although visual merchandising and store
atmospherics are essential in the retail environments, there are other aspects which influence
consumer preference and behavior (Thang & Tan, 2003). Three hundred and fifty
questionnaires were distributed at random to female consumers. The findings found that
factors which influenced consumer shopping behavior and store preference were as followed;
1. Merchandising, 2. Store accessibility, 3. Reputation of the store, 4. In-store service, and 5.
Promotions. This study further proves the importance of visual merchandising and its effects
on female consumer shopping behavior (Thang & Tan, 2003).

Bell and Ternus (1952) state that the factors of visual merchandising, such as window and
interior display, store layouts &interior design, promotional signing, fixture layouts,
displaying merchandise on walls and fixtures.

Window displays plays the most vital visual communication tool which helps to build a store
image as stated by Lea- Greenwood (1953).

Edwards and Shackley (1954) reported that sales increase when window displays are used,
especially for new products, and well- known brands.

Gerard (1957) states that in general, warm colors (red and yellow) have produced opposite
psychological effects than cool colors (blue and green), which are opposite on the color
spectrum. For example, red or warm colors have been found to be associated with increased
blood pressure, respiratory rate, eye blink frequency (Cited in: Bellizzi and Hite, 1959).
Bellizzi et al. (1958) investigated the effects of color in retail store design. The results
indicated that despite color preferences, subjects were physically drawn to warm color
(yellow and red) environments, but they paradoxically found red retail environments to be
generally ungraceful, negative, tense, and less attractive than cool color retail (green and
blue) environments (Cited in: Bellizzi and Hite, 1992).

Mehrabian (1976) “believed that lighting was an important factor in the environment‟s
impact on individuals because brightly lit rooms are more absorbing than dimly lit ones”.
(Cited in: Summers and Herbert, 1993) Areni and Kim (1994) found that consumers
examined and observed significantly more items under „bright‟ lighting conditions than
under soft lighting conditions.

With reference to the Illuminating Engineering Society of North America (IES) Handbook
states that „„the primary goals common in the lighting of merchandise are to attract the
consumer, to initiate purchases, and to facilitate the completion of the sale (Rea, 1993).

The IES suggests that when illuminating merchandising spaces, lighting designers should
create a „„pleasant, absorbing and secure environment to do business (Rea, 1993, p. 591).
Shoppers are highly supersensitive to the way a store is lit. Visual merchandising is the
presentation of a store and its merchandise to the customer through the team work of the
stores advertising, display, special events, fashion coordination, and merchandising
departments in order to sell the goods and services offered by the store (Mills et al., 1995,
p.1).

In 1998, Pegler argued, Visual merchandising is no longer just a matter of making

merchandise look attractive for the customer. It is the actual selling of merchandise through a
visual medium. Visual merchandising includes both store exterior and interior. The store
exterior includes window display, façade and retail premises. Window display is a medium
which creates first impression in customer’s mind to enter the store. Physical attractiveness of
the store impresses customers highly for store selection (Omar, O. 1999).

Visual communication have long been considered important aspect of retailing by

Practitioners and academic alike (McGoldrick, 1990, 2002).Visual merchandising is an
Activity, which coordinates effective merchandising selection with effective merchandising
Display (Wolters and White, 1987). In this context, it will be affecting to a positive
Psychological or behavioral outcome, ultimately leading to purchase. McGoldrick, 1999;
Marsh, 1999 Retail store elements such as color, lighting and visual Merchandising have
always been considered as having an immediate effects on the buying Decision making
process. The emphasis has moved away from in-store product displays, Towards elements
that excite the senses of shoppers such as flat screen videos or graphics, Music, smells,
lighting and flooring that tend to capture the brand image or personality and Help to create an
unique environment and shopping experience Bell and Ternus (2002) asserted that visual
merchandising, once called display,has evolved from its origins as a store’s decorative arts
department to its current status as a sales-supportive entity, which impacts store design, store
signing, departmental merchandise placement and display, store atmospherics, and store
image.

Eroglu (2003), argues that companies and retailers are now dealing with more informed
consumers who prefer value, and interested in stores that make efforts to create value through
different visual merchandising tools, and merchandising strategies. These tools include the
concept of “Atmospherics” and creation of “atmospheric cues” alongside of product.
Atmospherics is referred to as an effort to devise the buying environment in a way that it
arouses specific emotions that enhances the probability of purchase.

Groeppel-Klein (2005), studied different empirical studies and found that the store
atmosphere has a strong influence on consumer behavior, and store image. The study further
concluded considering the empirical studies that the store atmosphere has a strong influence
on consumer consideration of the merchandise and arouse consumer reaction towards the
store. Impulse buying and store display are not correlated. Floor merchandising is also
correlated with impulse buying.

Bashar and Irshad, (2012) studied the impact of form display, window display, promotional
signage and floor merchandising on impulse buying behavior by taking 250 Indian
customers. Pearson correlation analysis was used to conduct this study. The Findings
sguggested that window display, floor merchandising are positively correlated with impulse
buying behavior of consumer. Store display is not correlated with the impulsebuying. Overall
this study showed that Visual merchandising has a greater impact on the consumer buying
behavior. Park (2014), argued that the proper and effective visual merchandising including
illumination helps in differentiating the retail brand, contribute to brand preference and
encourage the brand preference.
Pillai (2014) found that customers are influenced by attractive windows displays, proper
store layout, and appealing visual merchandising themes. The study recommended the proper
utilization of visual merchandising as an effective tool of converting potential customers into
real customers. The study further concluded that the most important aspect that consumers
value most in visual merchandising are proper lighting and attractive display themes. Bashar
and Irshad, (2015) has considered impact of form display, window display, promotional
signage and floor merchandising by taking sample size of 250 Indian respondents by
applying Pearson correlation. His findings are that window display and impulsive purchasing
are positively correlated. Vinamra et al., (2015) has studied impact of visual merchandising
on consumer behavior toward women's Apparel. His dependent variable is visual
merchandising and independent variables are neutral role in influencing the purchase and
significant role in influencing the purchase. He took sample size of 150 Indian women‟s who
were visiting shopping malls. His findings are that visual merchandising has a very strong
impact on customer purchasing behavior. To some extant visual merchandising also leads to
impulse buying.

Levy & Weitz, 2012 in their study said that smooth customer flow influence customer
purchase decision. Factors which influence customer purchase decision include well designed
retail store layout with optimal store space for customers to walk-in. Vrechopoulos, O’Keefe,
Doukidis, and Siomkos (2004), in their study illustrated that store layout is an important
determinant of store image. They further focused on the three major store layout types which
include Store Grid, Store Freeform & Store Racetrack/boutique. They explained that store
Grid layout deals with the routine and planned shopping behavior while freeform layout deals
with the time which customers are willing to spend in the store on the other hand Store
Racetrack/boutique is the layout which deals with the movement of the customers throughout
the store. Their study are suggested that for the usefulness & entertainment of any customer a
freeform layout was most preferred by customers. They further added that for the ease of use,
customers use to prefer the grid layout. A good store layout provides businesses opportunity
to increase sales.

Bellizzi, Crowley, and Hasty (1983) in their study expressed color encourages sales. Color is
an important driver for influencing the purchase decision. He further added that the first
things which customers see before entering a retail store are the color. Every individual
responds to color in different ways. Mauger (1964) in his study explained lighting creates an
effective atmosphere that makes products more appealing and influence customers to shop
more. Colborne (1996) in his further illustrated retail lighting is an important factor for
apparel businesses. He said that lighting creates an atmosphere which attracts customers
towards stores in order to make them purchase. With proper and effective lightening,
customers are able to match up their items & visualize how merchandise will look after the
purchase.

Bell & Ternus (2012) in their study supported the theories given by earlier scholars and
added lighting can enhance the retail space and increase the value of product in customer’s
mind. The marginal benefits of the products were enhanced. Yalch and Spangenberg (2000)
in their study said that music has significant effect on retail setting on shopping time. Music
plays deep impact on time, exploration, communication and satisfaction in retail setting. Sen,
Block, and Chandran (2002) in their research advocated that window displays has an
influence on store entry & purchase decisions. Window display creates an awareness of
merchandise type for the entry on the other hand it shows how the merchandise is to be
presented in window displays which would influence buying decision.

Visual merchandising is concerned with both how the product and/or brand is visually
communicated to the customer and also whether this message is decoded “appropriately” – in
this context affecting a positive psychological or behavioural outcome, ultimately leading to
purchase (Kerfoot, Davies & Ward, 2003). Ebster & Garaus (2011) define visual
merchandising as the art and science of presenting products in the most visually appealing
way, emphasizing on the communication with the customers through images and
presentations. Such authors as Law, Wong & Yip (2012) state that visual merchandising is a
tool to convey a message about goods to the buyers by employing various visual styles and
themes. Although the academic papers identify differences in the opinions on the visual
merchandising concept, most of them agree that visual merchandising is specific
communication to the buyers that affects their buying behaviour.

Aspects of the visual merchandising impact on impulse buying have been widely covered by
the studies of Kerfoot, Davies & Ward (2003); Ebster & Garaus (2011); Law, Wong & Yip
(2012); Mehta & Chugan (2013) and other foreign scientists. However, there are few studies
related to impulse buying behaviour and factors affecting it made by Lithuanian scientists
have different views also while naming visual merchandising elements.
The theoretical study revealed that authors define visual merchandising differently and
attribute different elements to this phenomenon; some authors name the elements as
techniques, others refer to them as tools, some others call them as elements.

Kerfoot, Davies & Ward (2003) consider colours, lighting, forms and location, store layout,
store equipment, goods and display as visual merchandising elements. Some authors call
components of merchandising as techniques and attribute visual merchandising, product
range, music, scents and temperature to them. Other authors (Pajuodis, 2005; Theodoridis &
Chatzipanagiotou, 2009; Chang, Yan & Eckman, 2014) name such elements as store layout,
goods display, variables of the store atmosphere, visual components of the store exterior
(store signboard, facade, windowcases, outdoor posters) as factors of store environment, and
distinguish the aspects of the latter that have visual effect as visual merchandising elements.

Metha & Chugan (2013) outline that visual merchandising includes both store exterior
(window display, facade, retail premises) and interior (orienting factors, signage, layout,
presentation techniques, props, spatial factors and ambient conditions). Moreover, authors
classify architecture, colours and product display as aesthetic elements.

Hussain & Mashar, 2015 analyse store atmosphere which in addition to visual merchandising
elements (lighting, colour, display/ layout) covers cleanliness, music, scent and temperature.
Theodoridis & Chatzipanagiotou (2009) outline that the atmosphere of the store environment
is created by adding up a number of the visual elements of the physical store environment,
such as colours and decoration elements, therefore, they treat visual merchandising as a factor
of store environment by distinguishing elements that make impact on buyers’ behaviour
which are named as visual merchandising elements.

Pajuodis (2005) considers paintings, pictures, signage, references, etc. as visual atmosphere
elements. Mohan, Sivakumaran & Sharma (2013) outline that store environment consists of
ambient factors (lighting, scent, music), design factors (layout and assortment) and social
factors. Thus, following these authors, one can see that store layout, atmosphere,
merchandising are store environment factors; however one could distinguish visual aspect
thereof that could be jointly named as visual merchandising. There is a number of studies that
refer not only to the impact of visual merchandising or store environment on the buyers’
behaviour, but also peculiarities of the behaviour, especially impulse buying (Theodoridis &
Chatzipanagiotou, 2009; Law, Wong & Yip, 2012; Mohan, Sivakumaran & Sharma, 2013;
Chang, Yan & Eckman, 2014; Pajuodis, etc.). Law, Wong & Yip (2012) stressed that the
impact of the environment is defined by the paradigm of the stimulusorganism-response
(SOR), where S – stimulus, ambient factor that draws the attention of the organism (O) –
consumer – and gets the response (R) – of the consumer state that factors which make an
impact on impulse buying may be classified into four categories: consumer characteristics,
peculiarities of store environment, situational factors and product features. Attributes of store
environment include: store layout, store atmosphere, store type and staff. Some authors
classify part of the store environment attributes (layout and atmosphere) as visual
merchandising elements. The paper is based on Lithuanian and foreign authors’ scientific
works and it analyses visual merchandising elements that make an impact on impulse buying.
In their empirical surveys the authors (Kerfoot, Davies & Ward, 2003; Ebster & Garaus,
2011; Law, Wong & Yip, 2012; Mehta & Chugan, 2013; Pajuodis, 2005; Mohan,
Sivakumaran & Sharma, 2013; Chang, Yan & Eckman, 2014; Hussain & Mashar, 2015, etc.)
analyse a different number of visual merchandising elements and different methods for data
collection.

Kerfoot, Davies & Ward (2003), Law, Wong & Yip (2012) followed a qualitative approach,
and Mohan, Sivakumaran & Sharma (2013), Chang, Yan & Eckman (2014) carried out
quantitative surveys – questionnaires. The review of the literature suggests that all analysed
articles prove that visual merchandising makes a positive impact on impulse buying.
Although the authors have no common agreement on the definitions and number of visual
merchandising elements, the review of the publications leads to identification of visual
merchandising elements that are most frequently mentioned in the academic articles which
were attributed by the authors to the elements that have the highest impact on impulse
buying: 1) window displays, 2) in-store design, 3) promotional signage, 4) store layout and 5)
store atmosphere. Based on the results of the studies analysed herein, one may make an
assumption that window displays make the highest positive impact on impulse buying among
the buyers of Lithuanian clothing and footwear stores. An empirical consumer opinion survey
was carried out to verify this assumption.

Visual merchandising is purely aesthetics of science, and it is the backbone of the retail
industry. Visual merchandising plays a highly major role in retail industry. Visual
merchandising is a silent selling technique that helps to reduce the employee mix and
increase per square feet returns and can further helps in reducing marketing budgets. The
activity and profession consists of developing the floor plans and three-dimensional displays
in order to maximize sales. Today’s fierce and cut-throat competition and the similarity of
merchandise have forced each segment of the fashion industry to utilize visual merchandising
as a tool to increase the allure of products.

Visual merchandise is the presentation of a store and its merchandise in such a manner that
will attract the attention of potential customers. It involves decorating the store keeping the
interior presentation the same as what is promised on the outside. People can be easily
swayed by their surroundings, i.e. odours, sounds or colors have a substantial effect on the
positive buying behavior of consumers. The scientific study of the effects of the environment
on human behavior is called environmental psychology. Important insights are created that
can be utilized in all sorts of settings like supermarkets, stores, hospitals, prisons, restaurants,
schools and many more. The layout of a store is a significant factor for the maintenance of a
thriving business, which can help advance sales and profitability. An effective store layout
encourages consumers to shop the entire store and view an extensive assortment of
merchandise. The most common forms of store layouts include grid layout, racetrack layout
and free form layout. Choosing a store layout depends on the type of store and the nature of
the product sold. A grid layout is generally organized in a rectangular shape, which allows
customers to shop quickly and maximize shop floor space, ideal for a supermarket or
hardware store. A race track layout ensures that the consumer only follows one path when
browsing the store. This is beneficial in the sense that the consumer will come into contact
with every product on the shelf.

However, this can irritate customers. Customers may feel that they are being forced to follow
a certain path, and can be frustrating when trying to make a quick purchase. Free form layout
is a suitable layout for a store that encourages browsing. This type of layout is more relaxed
in its structure, which leaves the customer feeling less rushed. The entrance of the store,
otherwise known as the transition zone, is an important area in the store. This is an area
where all shoppers pass on entry into store, and is significant as this zone is where consumers
can observe the stimuli and sense the general vibe of the store. Therefore, thoughts and
representations a consumer has about the store and the brand depend on this area. Spatial
design of a retail store is a key aspect when it comes to creating an enjoyable experience, and
is also an effective way of communicating with customers. Colour can be considered as one
of the most important variables when it comes to ambiance in retail (Van Rompay, Tanja-
Dijkstra, Verhoeven, & van Es, 2011).
Certain colours that can be considered as highly arousing can encourage customers to make
purchases out of impulse. Warm colours such and orange, red, and yellow give consumers a
sense of excitement but also provide a sense of anxiety and create a distraction. Recreational
shoppers that enjoy a sense of excitement may prefer these high arousal colours (Van
Rompay et al., 2011).

In general, people prefer cool colours such as green and blue and associate these colours with
a sense of calmness and security. Shoppers that are more tasks oriented are more likely to
prefer these cool colors as they bring this calming effect and are also less likely to distract
them from the task at hand. The way the furniture such as shelves and racks and seating are
set up is a tangible element is store design. A store layout with a higher regard for space can
increase customer pleasure, and a store filled with clutter can have the opposite effect (Van
Rompay et al., 2011). When It comes to a simple well-spaced layout in a store, task oriented
customers find this type of layout to be the most effective, as they can easily locate the items
they want without the unnecessary clutter and obstacles in their way. These simple factors
can encourage customers to stay in the store longer and in turn spend more (Van Rompay et
al., 2011).

Mannequins are used by apparel retailers to display their products in-store and in the window
display. They are a tool used to show consumers what their products look like on a person.
The mannequins will commonly be styled to match trends as well display the latest products
available. A study found that retailers projected an ideal image to consumers with the size
and proportions of the mannequins. This is used to further reinforce the characteristics of
their target market. However, consumers found the size of mannequins to be unrealistic but
would give a favorable response to the mannequins when they were headless. This was
because the participants in the study found the faces of the mannequins unrealistic and could
not relate to them. Therefore, it is important for retailers to understand the thoughts and
opinions of consumers on visual stimuli such as mannequins so they can create a more
desirable shopping environment for the consumers.

Merchandise must be visible, easy to access, and there must be a range of merchandise to
choose from. Having visible merchandise is essential for retailers as consumers to not only
“buy what they see” but are also able to tangibly engage with the physical product. This
creates an emotional connection, which can drive the customer to purchase the product.
Considering these elements when merchandising gives the customer a sense of freedom of
choice. Less is more is a key principle in visual merchandising. Although having a wide
variety of stock and product options is important for consumers, it is also important not to
overwhelm the consumer. Arranging stock, so it is not overcrowded and limiting the amount
of merchandise on the shop floor, is an important aspect of merchandising. Over-crowded
stores can create a sense of stress and anxiety, which does not encourage the consumer to
shop the entire store. The atmospherics also have a large influence on the store environment.
Atmospherics should all coordinate with each other to create a consistent ambiance and
positively influence the consumer’s shopping experience and buying decision-making
process. Visuals such as light and display are not always enough to enhance the overall
ambience of the store, and retain customer attention; therefore, other elements such as music
and scents can be used. Light can be used in many ways in retail stores, from highlighting an
object or area of a store to simply illuminate the entire store. Bright light can create a sense of
honesty, positivity, and can promote impulse purchasing. Lighting can also be used to
highlight the store layout and urge customers to flow through the store, exposing them to
more merchandise. The level of brightness in the store is a very important factor in consumer
behavior and the retail environment, as rooms that have dim lighting are less arousing than
more brightly lit spaces (Areni, 1994).

Lighting can influence the customer’s decision making, behavior, and also the overall spatial
environment as lighting and ambiance are connected. Customers become more stimulated
when the lighting in the room is considered to be very bright and speeds up the pace at which
customers purchase products.

Markin recommended that in order to slow the pace customers shop at, the merchandiser
should adopt a softer lighting technique which will increase the amount of time customers
spend in the store. (Areni, 1994). The result of this is a possible increase in the amount of
merchandise the stores customer’s purchase. This shows us that the differing levels of in store
lighting can directly affect the amount of time consumers spend in the store (Areni, 1994).
The lighting inside a retail store can be used strategically to highlight products on display or
to create a comfortable environment for consumers. It is an important element used
(alongside music, temperature, fragrance, and layout) in retail to create an atmosphere that
matches with the brand’s personality. Atmosphere of a retail store is significant as it was
found that the mood of a customer will affect their buying behaviour. A retailer can use soft
lighting to create a calm and peaceful atmosphere for the customer or bright lighting to
represent a fun and vibrant feeling associated with the brand. The strategic use of light can
change the mood of a consumer and affect their subconscious mind during their shopping
experience within a retail store. A retail store with a soft ambience and bright lights
highlighting certain products will drive the customer towards these products and motivate
them to make a purchase.

The music played within a store can promote a brand’s image, and can also aid consumers
into making purchase decisions. Music that suits the style of the store and the target audience
is an important factor to consider. Music with a slow tempo can cause the consumer to relax;
therefore, they spend more time in the store. This leads to more contact with merchandise and
increased purchasing. Having music, which is popular within the target market, can also
encourage consumers to linger in the store longer. For example, a store with a teenage target
market should consider playing pop music, as this is a genre that a younger audience
commonly enjoys. Playing this genre will make their shopping experience more enjoyable,
which can result in them staying longer in the store, exposing them to more merchandise, and
influencing possible purchasing decisions. In today’s keen competitive environment store
image and atmosphere are recognized by retailers as important factors influencing customers’
decision making processes (Hartman and Spiro, 1995).

Moreover, the term atmospherics refers to the stimuli in the store environment which have a
direct influence on customers purchase behavior. Akther et al. (1987). Espinoza et al. (2004)
(Mayo de Juan & Gültekin, 2009) argue that a pleasing store atmosphere is more likely to
increase customers’ willingness to purchase. Mc Goldrick (2002) stated four dimensions of
store atmosphere, i.e. visual (sight), aural (sound), olfactory (smell) and tactile (touch), which
are significant in customers’ choice of products. As presentation of goods is often the most
crucial factor in decisionmaking (Oakley, 1990), retailers place more importance on visual
merchandising in order to differentiate their offers from others due to the similarity of
merchandize nowadays.
 CHAPTER II
INDUSTRY PROFILE AND
COMPANY PROFILE
3.1 INDIAN 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

3.1.1 Retail formats in India:

Format Description The Value Proposition
Branded Stores Exclusive showrooms either Complete range available
owned or franchised out by a for a given brand, certified
manufacturer. product quality
Specialty Focus on a specific consumer Greater choice to the
Stores need, carry most of the brands consumer, comparison
available between brands is possible
Department Large stores having a One stop shop catering to
Stores wide variety of products, varied/ consumer needs
organized into different
departments such as
clothing, house
wares, furniture, appliances,
toys, etc.
Extremely large self-service retail outlets One stop shop
Supermarkets catering to
varied consumer
needs
Discount Stores offering discounts on the retail price Low Prices
Stores through selling high volumes and
reaping economies of scale
Hypermarket Larger than a supermarket, sometimes Low prices, vast
with a warehouse appearance, generally choice available
located in quieter parts of the city including services
such as cafeterias
Convenience Small self-service formats located in Convenient location
Stores crowded urban areas extended Operating
hours.
Shopping An enclosure having different formats of Variety of shops
available
Malls in store retailers, all under one roof.
to each other.

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”.

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.

3.1.3 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

3.2 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.

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.

3.2.1 Future Trends:

 Lifestyle International, a division of Landmark Group, plans to have more than fifty
stores across India by 2012–13.
 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 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.

3.2.2 About the Future Group:

Future Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India. The

company is known for having a significant prominence in Indian retail and fashion sectors,
with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand
Factory, Central, etc. The group also has a notable presence in integrated foods and FMCG
manufacturing sectors. Future Retail Limited and Future Lifestyle Fashions Limited, two
operating companies of Future Group, are among the top retail companies listed in BSE with
respect to assets, and in NSE with respect to market capitalization.

On May 2012, Future Group announced a 50.1% stake sale of its fashion chain Pantaloons to
Aditya Birla Group in order to reduce its debt of around 8,000 core (equivalent to 1 10 billion
or US$1.6 billion in 2018). To do so, Pantaloons fashion segment was demerged from
Pantaloons Retail India Ltd; the laffer was then merged into another subsidiary-Future Value
Retail Ltd-and renamed to Future Retail Ltd.

Future Group is a corporate group and nearly all of its businesses are managed through its
various operating companies based on the target sectors. For e.g., retail
supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall,Hometown, etc.
are operated by its retail division, Future Retail Limited, while its fashion and clothing outlets
Brand Factory, Central, and Planet Sports are operated via another of its subsidiaries, Future
Lifestyle Fashions Limited. With these many fashion outlets and supermarkets, the group also
promotes its fashion and sports brands like Indigo Nation, Spalding, Lombard, Bare, etc., and
FMCGs like Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach, etc. It
also has operating companies to cater specifically to internal financial maffers and consulting
within its group of companies.

On November 21, 2014, Future Consumer Enterprises Limited acquired the 98% from Actis
Capital and other promoters. With that, Nilgiris is a fully owned subsidiary of Future
Consumer Enterprises Limited (FCEL).

Fig 3.2 3 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 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 group's core
value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'.

3.2 4 HISTORY:

Future Retail Ltd. formerly known as Bharti Retail Ltd was incorporated in February 07
2007. The company is engaged in the business of retailing of fashion household and
consumer products through departmental and neighborhood stores under various formats
across the country. Future Retail Ltd is the flagship company of Future Group India's retail
pioneer catering to the entire Indian consumption space. Through multiple retail formats the
company connects a diverse and passionate community of Indian buyer’s sellers and
businesses. The Company has been able to develop presence across India with good loyal
customer base of approximately 50 million members across India as of March 31 2019.Future
Retail operates multiple retail formats in both the hypermarket supermarket and home
segments of the Indian consumer market including: Big Bazaar Easy day Fashion at Big
Bazaar Food hall Home Town Ezone as India's leading retailer. Future Retail inspires trust
through innovative offerings quality products and affordable prices that help customers
achieve a better quality of life every day. The Company has a pan India presence with 1511
stores serving customers in nearly 428 cities through over 16.14 million square feet of total
retail space for various formats of the Company as on March 31 2019. The company added
21 new large stores during the year 2019. On 7 November 2016 Future Retail announced that
the company's Board of Directors has approved a proposed consolidation of the retail and
allied businesses of Heritage Foods Limited. The retail business of Heritage Foods includes
the popular Heritage store chain of 124 stores in three key southern cities of Hyderabad,
Bangalore and Chennai. These retail stores compliment well with Future Retail's existing
network of 379 small formats Easy Day stores in northern cities of India. The retail and allied
businesses of Heritage Foods posted revenue of Rs.629.70 core during the financial year
2015-16. On closure of the transaction Heritage Foods will own 3.65% of the shareholding in
Future Retail through fresh issuance of shares by the company. As part of the scheme of
arrangement for the acquisition Heritage Foods will spin off its retail bakery agri-sourcing
and veterinary care business in a fully owned subsidiary. Subsequently all these businesses
except veterinary care will then be merged with Future Retail. The Board of Directors of
Future Retail at its meeting held on 20 April 2017 considered and approved segregation of
the Home Retail Business of the company operated through Home Town stores into Praxis
Home Retail Private Limited by way of a demerger. The proposed segregation would be
carried out vide a Composite Scheme of arrangement between Future Retail and Blue rock e
Services Private Limited (BSPL) and Praxis Home Retail Private Limited and their respective
shareholders. In consideration of the demerger of the Home Retail Business of FRL into
PHRPL in terms of the scheme PHRPL will issue one fully paid up equity share of Rs.5 each
to the equity shareholders of FRL as on the record date for every 20 fully paid up equity
shares of Rs.2 each of FRL. The equity shares of PHRPL to be issued to the shareholders of
FRL pursuant to the scheme shall be listed on the stock exchanges. The Board of Directors of
Future Retail at its meeting held on 20 April 2017 approved increase in the investment limit
of Registered Foreign Portfolio Investors (including FIIs) in equity share capital of the
company from present 24% to 49% of the company's total paid-up equity share capital. The
Board of Directors of Future Retail at its meeting held on 5 October 2017 considered and
approved the acquisition of entire equity share capital of M/s Hypercity Retail (India)
Limited (HRIL) from its existing shareholders for part cash and part share consideration
aggregating up to Rs 655 core. HRIL is mainly into retail business and operating its various
stores across India and does not have any overseas presence. HRIL clocked turnover of
Rs.1191 core in FY 2016-17.The Board of Directors of Future Retail at its meeting held on 6
December 2017 considered and approved the Scheme of Arrangement between Hyper city
Retail (India) Limited (HRIL) and Future Retail Limited. The Scheme inter-alia provides for
the demerger of Retail Business Undertaking of HRIL into the company and for
reorganization and reclassification of balance lying in the Capital Reserve Account into
Securities Premium Account of the company. HRIL is a wholly owned subsidiary of Future
Retail. On 13 March 2018 Future Retail announced that the company has entered into
Shareholders Agreement on 13 March 2018 with Khimji Ramdas LLC a leading business
conglomerate in Oman for the formation of a joint venture company to undertake business to
operate 'fbb' brand fashion outlets commencing in Oman and across other member states On
1 June 2018 Future Retail announced that it has completed the acquisition of the Retail
Business Undertaking operated under the brand name 'Food world' (Food world Business)
from Food world Supermarkets Private Limited (FSPL) in terms of Business Transfer
Agreement and other related documents (the Agreement) which were executed between the
company FSPL and erstwhile Promoters of FSPL for acquisition of Food world Business.
FSPL originally incorporated on 25 August 1999 is mainly into retail business format in food
FMCG and general merchandise category. For FY 2017-18 FSPL clocked turnover of Rs.119
core on provisional basis. During the year under review the Company executed necessary
agreements and on May 11 2018 acquired the entire equity share capital of Travel News
Services (India) Private Limited (TNSI) from its existing shareholders for cash consideration.
Consequent to this TNSI became a wholly owned subsidiary of the Company. In addition to
this TNSI Retail Private Limited a wholly owned subsidiary of TNSI and Welcome Retail
Private Limited a joint venture of TNSI in which TNSI holds 51% of the share capital also
became step down subsidiaries of the Company effective from the same date i.e. May 11
2018.During the year under review the Company acquired the entire equity share capital of
SHME (now known as SHME Food Brands Limited) for cash consideration of Rs.0.01 core
from its existing shareholders on February 28 2019 and accordingly SHME became a wholly
owned subsidiary of the Company. The Board of Directors of the Company had approved the
acquisition of entire equity share capital of its subsidiary namely Travel News Services
(India) Pvt. Ltd. (TNSI) and also executed necessary agreement(s) and related documents for
the said transaction. On May 11 2018 the Company has paid Rs.65.42 core in cash (after
adjustments) to the existing shareholders of TNSI towards the said acquisition. Further on
March 29 2019 the Company had made an additional investment by subscribing 3400000 7%
Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs.34 core in
cash. .During the year 2019 the Company's joint venture company Future Retail LLC had in
aggregate invested fund to the tune of Rs.4.57 core towards total 250000 shares of Omani
Rial 1 each in the share capital and accordingly it holds 50% of JV Company.

3.2.5 About Pantaloon Retail (India) Limited:

Pantaloon Retail (India) Limited, is India’s 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 company’s 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
company’s 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 focused 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.

Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.
3.2 5.1 Company Profile

Pantaloons Retail (India) Limited was incorporated as Men’s Wear Private Limited in the
year 1987. It became a public limited company in 1991 and was renamed Pantaloons
Fashions Limited and then Pantaloons Retail (India) Limited in 1999. Over the years the
company has accelerated growth through its ability to manage change with time. It integrated
backwards into garment manufacturing and expanded its retail network at the same time. It
launched three successful brands – Pantaloons trouser bar denims and John Miller shirts
between 1987 and 1993. The company introduced the concept of The Pantaloons Shoppe, an
exclusive men’s wear retail store, which expanded across India from 1994- 1998 . In the year
1997, Pantaloons moved to large format lifestyle retailing with the launch of Pantaloons
India’s family Store.

Pantaloons has grown to a 29 store network and occupies 2, 63,000 sq. of the retail space.
They contributed Rs.174 cores to the total turnover of the company. 4 Big Bazaar owned
by Pantaloons Retail India Limited, the flagship retail chain of the Future Group,
achieved a unique milestone in the history of world retail - by being the first hypermarket
format in the globe to roll-out the fastest 101 stores in a short span of seven years. This
hypermarket chain was introduced in India by Pantaloons Retail (India) Limited. The year
was 2001. The first store opened in Kolkata and was followed by stores in Hyderabad,
Bangalore and Aurangabad in a short span. It works on the same economy model as Wal-
Mart and has had considerable success in many Indian cities and small towns. The Group
is confident of the Indian retail story. It has not slowed A Study of Innovative Marketing
Practices in Retail Marketing Sector with Special Reference to Big Bazaars in
Maharashtra State. Innovative Retail Marketing Practices its expansion plans despite
many other retailers slowing expansion, reducing the number of outlets, effecting layoffs
and even exiting the businesses. In 2006-2007 more Indians discovered the value of
shopping in Big Bazaar. Big Bazaar launched 27 new stores in 22 cities, covering over
1.40 million square feet. While Big Bazaar continued to expand in the large cities it also
tapped consumptions potential in smaller cities like Agra, Allahabad, Coimbatore, Surat,
Panipat, Palakkad, Kanpur, Nasik, Jalagaon and Kolhapur. By May 2008, there were 89
Big Bazaars spread across various cities and towns across the country. Big Bazaar plans
to have 300 stores and is expecting revenues of 130 billion rupees by the year 2011. At
the time of the launch of Big Bazaar there was no real precedent in the Indian market
giants the RPG hypermarkets had opened in Hyderabad only two months prior to the
launch of Big Bazaar. A western model had to be adapted to suit the needs of the Indian
environment various local markets and local market leaders were studied. This was done
to understand the product mix and the prices offered. Saving is the key to the Indian
middle class consumer. The store which would be created had to offer value to the
consumer. Keeping this in mind, the concept of Big Bazaar was created. Big Bazaar
offers a wide range of products which range from apparels, food, farm products, furniture,
child care, toys, etc. Products of all the major brands are available at Big Bazaar. Also,
there are many in house brands promoted by Big Bazaar. Big Bazaar sold over 3 lakh
pairs of jeans, 50,000 DVD-players and A Study of Innovative Marketing Practices in the
Retail Marketing Sector with Special Reference to Big Bazaars in Maharashtra State.
Innovative Retail Marketing Practices. In all, the fashion, electronics and travel segments
made up about 70 per cent of sales. The tag-line is "Is Se Sasta Aur Accha Aur Kahin
Nahi". They work on the model of economics of scale. There pricing objective is to get
Maximum Market Share. Retail is India's largest industry, accounting for over 10 percent
of the country's GDP and around 8 percent of the employees. Retail industry is India is at
the crossroads. It has emerged as one of the most dynamic and fast paced industries with
several players entering the market. But because of the heavy initial investments required
breakeven is difficult to achieve and many of these players have not tasted success so far.
However the future is promising, the market is growing government policies are
becoming more favorable and emerging technologies are facilitating operations.

Big Bazar is an Indian retail chain of hypermarkets, discount departments stores, and
grocery stores. The retail chain was founded by Kishore Biyani under his parent
organization Future Group, which is known for having a significant prominence in Indian
retail and fashion sectors. Big Bazar is also the parent chain of food bazar, fashion at Big
Bazar and Ezone where at locations it houses all under one roof, while its sister chain of
retail outlets like Brand factory, home town, central, and Ezone etc.
3.2.5 Founder

Fig 3.2 5.1Founder

Founder of future group and is company Big Bazaar Biyani began working in the family
fabric-trading business, Bansi Silk Mills, but became frustrated with the conservative
approach adopted there by his father, brothers and cousins. It was around this time, in
November 1983, that he married Sangita Rathi and also made his first venture into business
on his own account, commissioning the manufacture of some fashionable fabric for sale to
garment manufacturers. He progressed to selling his own brand of clothing fabric and then to
manufacturing trousers using it, which in turn led to the launch of his Manz Wear garment
manufacturing business in 1987. The business, which supplied a few retail outlet, adopted the
brand name of Pantaloons and soon expanded into retail itself using a franchise model.

In 1992, Biyani floated 60 per cent of his business on the Indian stock market to raise funds
for expansion, store improvements and marketing. He has admitted since that this expansion
across the country created logistical problems for the company, especially with regard to
managerial oversight of its franchisees. By 1994, the Pantaloons franchise was turning over 9
million rupees but with a smaller profit margin. Biyani looked to converting Pantaloons from
being a franchise operation to a direct retailer using the department store model, initially
renting and converting a 10,000 square feet property in Kolkata for that purpose. This outlet,
which was more than twice the size of any other store in the city, opened in August 1997.

Known for a thrifty approach to running his businesses, with precepts such as modest
corporate travel and hospitality arrangements, Biyani has acknowledged the role of luck in
his business success at this time, which he says was the coincidence of his ambitious ideas
and the growth of an Indian middle-class with disposable income to spend. His success
continued with the opening of a series of stores under the Big Bazaar brand name from 2001.
These stores were designed deliberately to appear somewhat chaotic, like the
traditional bazaars with which his customers were familiar. By 2009, and despite the
worldwide economic downturn of 2008, there were over 100 of these stores across the
country, serving over two million customers each week, while Pantaloons Retail employed
over 30,000 people and had over 12,000,000 square feet of retail space across 1000 stores in
71 cities. Turnover in 2008 was 47 billion rupees.

3.2.5.2 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.

3.2 5.3 ACHIVEMENTS OF BIGBAZAAR:

● Big Bazaar organized one of the world's first 24hrs of Facebook Live Shopping
Carnival to celebrate the 12th anniversary of Sabse Sasta Din
● Big Bazaar for the first time ever created a mobile game 'Deal Sky fall – Sabse Saste
5 Din' that has transformed the shopping experience in India
● Fbb launched ' Watch Now Buy Now', India's first ever LIVE online fashion event
● Big Bazaar dropped prices of 1,500 Everyday Items with the 'Har Din Lowest Price'
Promise
● Fbb created Guinness World record for the world's largest photo book of 18 feet
height and 27 feet width
 ● Future Retail Limited approved a proposed consolidation of the retail and allied
businesses of Heritage Foods Limited. The retail business of Heritage Foods includes
the popular Heritage store chain of 124 stores in the three key southern cities of
Hyderabad, Bangalore and Chennai.
● Big Bazaar & Ezone made to the Brand Equity's Top Retailer's List
● Big Bazaar and Ezone were voted as one of the Top 50 Most Trusted Brands in the
country in the Brand Equity Survey 2013 conducted by Nielson. The survey also
revealed that Big Bazaar is the 4th Most Trusted Service Brand of the country
● Big Bazaar initiated Maha Annasantarpane program at its stores in South India – a
unique initiative to offer meals to visitors and support local social organizations
● Big Bazaar captured almost one-third share in food and grocery products sold through
modern retail in India
● Big Bazaar partnered with Futurebazaar.com to launch India's most popular shopping
portal
● Big Bazaar initiated the Power of One campaign to help raise funds for the Save The
Children India Fund
● Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the
hypermarket format anywhere in the world.

3.2.5.4COMPITITORS INFORMATION OF BIGBAZAAR:

As BIGBAZAAR is leading retail sector it is important to consider the part of competitors.

Competitors for BIGBAZAAR are as follows:

 DMart
 More
 Fbb
 Mahindra retail
 Roomstory
 Spencer’s
 Star bazar
 SPAR
 Avenue stores
3.2.5.5 Brief view of Big Bazaar’s Products:

Fashion Dept Food Bazaar GM-Home Gm-fashion

Staples Utensils Depot
Denims & T-shirts
Fruits &
Fabrics & Cut
Vegetables
Furniture Luggage carriers
pieces
Ready to cook Electronics
Formal wear
Own brands
Casual wear
Species
Party wear
Live kitchen
Ethnic wear
Accessories
Under garments
Night wear
Dress material
Sarees
Foot wear
 CHAPTER III
RESEARCH DESIGN
2.1 Title: A Study on Impact of visual merchandising on sales in Big Bazaar

2.2 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
 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.

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.

o Primary Data:
In the current study, a survey was conducted through the assistance of forms to collect data
relating to consumer preference in relation to pantaloons, city centre Mangalore. The data
collected from surveys conducted to customers, employees.
 Interaction with respondents
 Direct observation
Data will be collected to obtain desired information through structured questionnaire.
o Secondary Data:
These include data collected by individuals from different sources, which include various
research articles, books, journals and the Internet.
 Company website
Data is collected through books, magazines, newspapers and internet…etc

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 Mangalore, Karnataka.
3. Language barrier prevailed.
STATISTICAL TOOLS:
Followed by the collection of data /, next method adopted was data analysis in which all the
data collected were analysed, thus coming into the conclusion about the entire research, the
methods I have adopted in this are:
1.Bar Graph:
It is a chart or graph that presents categorical data with rectangular bars with heights or lengths
proportional to the values that they represent. The bars can be plotted vertically or horizontally.
2.Chi – square test:
Is the simple statistical tool most commonly used in non – parametric test. The quantity
describes the magnitude of discrepancy between the observed values and expected frequencies.
3. Anova:
A one-way Anova is used when differentiate two or more group means on a unbroken
dependent variable. The independent t-test is a case of the one-way Anova for situations where
there are only two group means.

SAMPLING:
Sample of a fifty Respondents were designated out of the many customers to hold out the
analysis. The research worker used straightforward sampling. The analysis was conducted to
understand the sales on visual merchandising in the store.

TABULATION:
Arrangement of information into apothegmatic and logical order within the next step.
Percentages are found out once grouping the information into sets and classes, charts, tables
and graphs can be ready where it's necessary.
 CHAPTER IV
ANALYSIS &
INTERPRETATION OF DATA
4.1 FREQUENCY OF VISITORS TO BIG BAZAAR

Gender Total
Male M % Female F%
Frequency More than once in a week 23 28.7 25 35.7 48
Once in a week 19 23.7 16 22.8 35
Once in a month 15 18.7 24 34.2 39
Only on offer days 14 17.5 4 5.7 18
Very rarely 9 11.2 1 1.4 10
Total 80 70 150
Table-1(Frequency of visitors to Big Bazaar)

30

25

20

15

10

5
0
more than once in a only on offer
very rarely
once in a weekonce in a week month 15 days 14
male23 19 18.70% 17.50% 9
m%28.70% 23.70% 24 4 11.20%
female25 16 34.20% 5.70% 1
f%35.70% 22.80%

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

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.

4.1 Factors tells about new product arrival in the store

Gender Total
Male M % Female F%
New Through display of the product 37 46.3 25 35.7 62
arrival
Through Offers 19 23.8 14 20 33
Through Announcements 16 20.0 8 11.4 24
By enquiring salesperson 3 3.8 9 12.9 12
You will search by your own 5 6.3 14 20 19
Total 80 70 150
Table-2(Factors tells about new product arrival in the store)

40
35
30
25
20
15
10
5
0
through display throughby enquiringyou will search
of the productthrough offers announcementssalespersonby your own 1635
male37 19 20.00%3.80%6.30%
M%46.30% 23.80% 8914
female25 14 11.40%12.90%20%
F%35.70% 20%

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 Total
Male M% Female F%
Assortment Always 18 22.5 16 22.9 34
Mostly 32 40 40 57.1 72
Sometimes 19 23.8 9 12.9 28
Rarely 8 10 4 5.7 12
Never 3 3.8 1 1.4 4
Total 80 70 150
Table-3(Perception about product arrangement & display in the store)

80
70
60
50
40
30
20
10
0

male m% female
f%
always mostly sometimes rarely never
18 32 19 8 3
22.50% 40% 23.80% 10% 3.8
16 40 9 4 1
34 72 28 12 4

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.

4.5 Perception about following the displays and layout to find a product

Gender Total
Male M% Female
Follow Strongly Agree 34 42.5 44 62.9 78
display
Agree 20 25 14 20 34
Neither agree nor Disagree 17 21.3 10 14.3 27
Disagree 7 8.8 1 1.4 8
Strongly Disagree 2 2.5 1 1.4 3
Total 80 70 150
Table-4(Perception about following the displays and layout to find a product)

70

60

50

40
male
30 m%
female f%
20

10

0
strongly agree agree neither agree disagree strongly
nor disagree disagree

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

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.

4.6 Action after entering the store

Gender Total
Male M% Female F%
I enter Go straight to the product 9 11.3 20 28.6 29
which i want
Walk through the store as it 60 75 28 40 88
leads me
Don't follow any pattern, 7 8.8 12 17.1 19
randomly pick product
Seek the help of salesperson 5 14.3
4 10 14
to navigate in the

Store
Total 80 70 150

Table-5(Action after entering the store)

 100
90
80
70
60
50
40
30 male
m%
female f%

20
10
0

straight to thewalk through theDon’t follow anyseek the help of

product which Istore ass it leads me pattern randomlysalesperson to wantpick productnavigate in the store

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.
 4.6 Perception about promotional activities in the store
Gender Total
Male M% Female F%
Offers Sign boards/Drop 40 50 17 24.3 57
downs
Promo areas(melas) 9 11.3 25 35.7 34
sales people 5 6.3 12 17.1 17
pamphlets 9 11.3 3 4.3 12
Announcements in 17 21.3 13 18.6 30
the store
Total 80 70 150
Table-6(Perception about promotional activities in the store)

60

50

40

30 male
m% female
20 f%

10

0
Sign promo sales people pamphletsannouncements
boards/drop downs areas(melas) in the store

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

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.
4.8 Most relevant activity regarding shopping

Gender Total
Male M% Female F%
I bought what i came to buy, Nothing more 21 26.3 7 10 28
I bought little more than what i came for 34 42.5 46 65.7 80
I bought lot more than what i came for 15 18.8 9 12.9 24
I bought everything that attracted me 7 8.8 6 8.6 13
I didn't find what i needed, so i didn't buy 3.8 2.9
3 2 5
Anything
Total 80 70 150
Table-7(Most relevant activity regarding shopping)

70
60
50
40
30
20
male
10
m%
female f%

0
I bought what I I bought little more I bought lot more I bought everything I didn’t find what I
came to buy, nothing more
than what I came for than what I camethat attracted me needed, so I didn’t
for buy anything

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.
4.9 Factors effecting buying behaviour

Gender Total
Male M% Female F%
Attractive displays of the product 17 21.3 11 15.7 28
Good product 12 15 23 32.9 35
Information provided by sales person 6 7.5 7 10 13
When i see a good deal, i tend to buy more 42.5 30
34 21 55
than i intended to buy
No specific reason, i bought because i like 13.8 2.9
11 2 13
the product
I didn't buy anything out of list 0 0 6 8.6 6
Total 80 70 150

Table-8(Factors effecting buying behaviour)

45
40
35
30
25
20
15 male
10 m% female f%
5
0

attractivegood product information when I see ano specificI didn’t buy

displays ofprovided by good deal, Ireason , Ianything out
the productsalesperson tend to buyboughtof list more than I because I like
intended to the product buy

Fig 8(Factors effecting buying behaviour)

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.

4.10 Experience of impulsive buying in the store

Gender Total
Male M% Female F%
Yes 68 85 56 80 124
No 12 15 14 20 26
Total 80 70 150
Table-9(Experience of impulsive buying in the store)

90
80
70
60
50
40 male
30 m% female f%
20
10
0

yesno

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

Gender Total
Male M% Female F%
Influence of product arrangement 13 19.1 9 16.1 22
Placing of the product 8 11.8 10 17.9 18
Influence of promotional signage 15 22.1 23 41.1 38
Excitement in trying a new product 20 29.4 8 14.3 28
Influence of mannequin display 12 17.6 6 10.7 18
Total 68 56 124

45

40

35

30
male
25 m%
female f%
20

15
5
10
0
Influence ofPlacing of theInfluence ofexcitement ininfluence of
productproductpromotionaltrying a newmannequin arrangementsignageproductdisplay

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

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.

4.12 Place of impulsive buying

Gender Total
Male M% Female F%
Nearby cash counter while 21 30.9 15 26.8 36
waiting for payment
Promo area 19 27.9 28 50 47
Where promotions are too 28 41.2 13 23.2 41
attractive in the store
Total 68 56 124
Table-10(Place of impulsive buying)

60
50
40
30
20
10
0
where promotion are too
nearby cash counter while promo area
attractive in the store
waiting for payment
28
male21 19 41.2
m%30.9 27.9 13
female15 28
f%26.8 50

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.

4.13 Perception about product arrangement

Gender Total
Male M% Female F%
Excellent 19 23.8 14 20 33
Very good 30 37.5 34 48.6 64
Good 21 26.3 5 7.1 26
Average 3 3.8 13 18.6 16
Poor 7 8.8 4 5.7 11
Total 80 70 150
Table-11(Perception about product arrangement)

60

50

40
male
m%
30 female
f%

20

10

0
excellent very good good average poor

Fig-11(Perception about product arrangement)

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.

4.14 Perception about change in buying decisions with the influence of display

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

50
45
40
35
30
25
20 male
15 m% female
10 f%
5
0

strongly agreeagree neither agree disagree strongly

nor disagree 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 customer’s
mind about the store. So visual merchandising of the store should be attractive.

4.15 Perception about factors affecting the buying decisions

Gender Total
Male M% Female F%
Locating products through signs, graphics 74 92.5 57 81.4 131
Lighting 6 7.5 9 12.9 15
Colours 0 0 4 5.7 4
Total 80 70 150
Table-13(Perception about factors affecting the buying decisions)

100
90
80
70
60
50
40
30
20
10
0

male m% female
locating products through
f% lighting colours
signs, graphics 74
92.5 6 0
57 7.5 0
81.4 9 4
12.9 5.7

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.

4.16 Shopping Experience at Big Bazaar

Gender Total
Male M% Female F%
Highly Satisfied 15 18.8 12 17.1 27
Satisfied 52 65 41 58.6 93
Neither Satisfied nor dissatisfied 11 13.8 8 11.4 19
Dissatisfied 2 2.5 6 8.6 8
Highly dissatisfied 0 0 3 4.3 3
Total 80 70 150
Table-14(Shopping Experience at Big Bazaar)

70

60

50

40
male
m% female f%
30

20

10

0
highly satisfied satisfied neither satisfied dissatisfied highly
nor dissatisfied dissatisfied

Fig-14(Shopping Experience at BigBazaar)

Analysis:

From the above it can be observed as 80% of the samples are satisfied with the service
offered by Big Bazaar

4.17 Product recall

Gender Total
Male M% Female F%
Yes 67 83.75 64 91.43 131
No 13 16.25 6 12.9 15
Total 80 70 150

Table-15(Product recall)

100

90

80

70
male
60 m% female f%

50

30
40

20

10

0 yes no

Fig-15(Product recal)
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.

4.18 Assortment * Display influence Cross tabulation

Display influence Total

Strongly Neither agree Strongly
agree Agree nor disagree Disagree disagree
Always 5 8 17 3 1 34
Mostly 9 37 10 12 4 72
Sometimes 8 8 5 4 3 28
Rarely 4 4 1 3 0 12
Never 2 1 0 0 1 4
Total 28 58 33 22 9 150

Table-16 (Assortment * Display influence Cross tabulation)

Chi-Square Tests

Asy mp. Sig.

Value Df (2-sided)
Pearson Chi-Square 36.314a 16 .003
Likelihood Ratio 33.974 16 .005
Linear-by-Linear
.968 1 .325
Association
N of Valid Cases 150

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

4.18.1 Null hypothesis:

Display of the product did not have any impact on buying decisions in the store
4.18.2 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.

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.

4.19 Crosstab between Display influence and satisfaction levels of customers:

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

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 ,mangalore. 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, mangalore. 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 2shopping
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.
 CHAPTER V

FINDINGS & SUGGESTIONS

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.
 Walk-ins are more on Wednesday bazaar, weekends and celebrations like birthday
celebrations, big day celebrations, melas…etc
 People have good knowledge about products in Big Bazaar. Especially Koryo‟s small
appliances, Tasty treat’s mango juice, pure & fresh’s Ghee…etc
 80 percent of customers are satisfied with the shopping experience at Big Bazaar. 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 product’s price range in Big Bazaar,
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 store’s walk-ins are in growth stage.
 It is necessary to concentrate on product display and placing banners which tells
about offers particularly on the special days like celebrations time, melas…etc

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.
CHAPTER VI

CONCLUSION
CONCLUSION

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.

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.

What is needed today is Brand DNA which should be visible throughout the store. There
needs to be consistent brand message through VM standards. The standardization of strong
international brands need not be changed for local needs as even local customers and
consumers needs to be treated as international customers and get the global feel. The idea of
design is seen as Indian or Western, The designers working for it may be local or global. We
need to break down the barriers and bring in a fusion of design while respecting and
celebrating the things that make each of the retail outlets unique. Here lies the question how
much localization is needed. What is needed is the concept of “Global localization”. The VM
needs to give a local flavor which needs to be further integrated to global concept i.e. Global
Localization- Visual Merchandising and Retail Design the Indian way.
CHAPTER VII

BIBLIOGRAPHY
BIBLIOGRAPHY

Books:

o Malhotra, Naresh K. Marketing Research. New Delhi: Prentice-Hall of India Private

Limited, 2006
o Nagundkar, Rajendra. Marketing Research. New Delhi: Tata McGraw-Hill Publishing
Company Limited, 2008
o Kotler, Philip and Kevin Lane Keller. Marketing Management. New Delhi: Prentice-Hall
of India Private Limited, 2007
o Pradhan, Swapna. Retail concepts, 2006
o Clark BH, Montgomery DB. Managerial Identificationof Competitors. Working Paper
No. 98–127, Marketing Science Institute, Cambridge, MA, 1999.
o Sheikh, Arif and Kaneez Fatima. Retail Management. New Delhi: Himalaya Publish
House, 2008
o "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

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-and-
Design/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
APPENDIX-1 QUESTIONNAIRE

Hi! Hope you enjoyed the shopping. It would be really great if you can help me 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 Location: Mangalore, Karnataka

1. How often do you visit this store?

o More than once in a week
o Once a week
o Once a month
o Only on offer days (Big days, Wednesday bazaar)
o Very rarely
2. How do you come to know about new product arrival in the store?
o Through Display of the product
o Through offers
o Through announcements
o By enquiring salesperson
o You will search by your own
3. Do the way of product arrangement & display in the store attract you?
o Always
o Mostly
o Sometimes
o Rarely
o Never
4. Generally I follow the displays and layout to find a product.
o Strongly Agree.
o Agree
o Neither agree nor disagree
o Disagree
o Strongly Disagree

5. When I enter the store....

 o I go straight to the products which I want
o I walk through the store as it leads me
o I do not follow any pattern. I just walk randomly and pick up products
o I seek the help of salesperson to navigate in the store
o 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)
o Sign boards/drop downs
o promo areas (Melas, Celebrations)
o Sales People
o Pamphlets
o Announcements in the store
7. Which of these is most relevant with regard to your shopping?
o I bought what I came to buy. Nothing More.
o I bought a little more than what I came for.
o I bought lot more than what I came for.
o I bought everything that attracted me.
o 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)
o Attractive display of the product
o Good Product
o Information provided by salesperson
o When I see a good deal, I tend to buy more than that I intended to buy.
o No specific reason, I just bought because I liked the Product
o I did not buy anything out of list
9. Have you ever experienced instant/unplanned buying in store ?
o Yes
o No
If “yes”, which factor influenced you more to take instant/unplanned buying decision?

o Influence Product arrangement

o Placing of the product
o Influence of Promotional Signage
 o Excitement in trying a new product
o Influence of mannequin display
10. At which place you tend to do more impulsive buying in the store?
o Nearby cash counter while waiting for payment
o Promo area (Melas, celebrations)
o Nearby coffee bar
o Where promotions are too attractive in the store
11. What do you feel about the product arrangement in the store?
o Excellent
o very good
o Good
o Average
o Poor
12. Visual display/Presentation of products influences my buying decision in the store.
o Strongly Agree.
o Agree
o Neither agree nor disagree
o Disagree
o Strongly Disagree
13. How do you feel that the following factors influence your buying decisions in a store?
Rate the following from 1-5.

o [ ] Locating products through signs, graphics etc

o [ ] Lighting
o [ ] Music
o [ ] Fragrance
o [ ] 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?

o Highly satisfied
 o Satisfied
o Neither satisfied nor dissatisfied
o Dissatisfied
o Highly dissatisfied

Any suggestions to improve the display and visuals in the store