PRESENTED BY:

SUNNY KUMAR ROY

AMANPREET SINGH
SHASHI KANT SINGH
SHUSHANTH
RAMMS
We help shoppers buy
RETAILING
RETAILING AND MERCHANDISING
WHY MERCHANDISING?
RAMMS HISTORY
RAMMS CAMPAIGN
CASE ISSUES
REFRENCES
Sale of goods and services from individuals or businesses to the end-
user
Retailers are part of an integrated system called the supply chain
A retailer purchases goods or products in large quantities from
manufacturers directly or through a wholesale, and then sells smaller
quantities to the consumer for a profit

Customer Money Product
B 2 C Business
Demand
Design &
Production
Advertiseme
nt
Wholesale Retailing Delivery
Customer
satisfaction
Retailing and Merchandising have a limited scope but firm connection
with overall marketing function of a company.
Quick and efficient shopping
But longer the stay at shop -> more
likely to purchase

Customer wants better product at least price, least time and
most convenient way
75% of buying decisions are taken at the time of purchase only
Advantages over Media ad
Low cost
Consumer Focus
Precise Target marketing
Relative Ease in evaluation

Implementation Steps
Analyzing the effect of Merchandising on consumers purchase decision
Identifying the participating channels & their effectiveness
Allocating the functions to channels
Integrating all the elements of merchandising & retailing
Measure the performance of merchandising by linking it with trade result
Programme execution

Cooperation of channel members
Comprehension of campaign by consumers

Rise to the Top
Psyche of a Shopper
Battle of the Brands
Shelf Appeal
Most of buying decisions made on
point of sales


Year Milestones
1960 Marketing Advertising Associates (MAA) Founded
1981 MAA Communications-an independent agency with operations across
South India
1991 RAMMS started as subsidiary of MAA Bozzel
1994 RAMMS declared as a Public limited company
Retailing advertising marketing and merchandising Services

Among India's first indigenous advertising agencies
20 year old specialized Shopper Marketing
agency
A team of retail experts with an intimate
knowledge of the Indian retail market
Name Designation Curriculum Remark Experience
R. Kannan Chairman IIM, Ahmedabad 42 years
Gautam
Chowdhary
President Institute of
Chartered
Accountants of
India
34 years
Krishna Rajan Dy. President Marketing
communication
specialist
22 years
Presence: Bangalore. Mumbai. Delhi. Kolkata. Chennai. Hyderabad
Shopper Marketing in India is different because of the MULTIPLICITY of
channels in India. RAMMS has devised an India specific methodology
(DICEM) to create new paradigms in Shopper Marketing across these
multiple channels
Functions Descriptions
Experiential Store Design Design of retail environments that deliver joyous shopper
experiences
Retail Identity Creation Retail brands, product brands and private labels
Retail Communication Specialized in-store communication targeted at shoppers
Navigation & Way finding Planning, design and deployment of shopper-led retail
signage and way-finding systems
Project Management &
Rollouts
Meticulous execution of concepts and designs, from pilot
store to national roll outs
Brand Launches

End-to-end product launch services from shopper centric
launch campaigns to post launch metrics
Events and Promotions Conceptualization and on ground translation of in-store
events through trained promoters
Manufacturer Retailer
Collaboration
Creation of platforms for long term retailer-brand
collaborations that deliver the ultimate shopper experience
Shopper Research Shopper behaviour studies through observation, shadowing
and conversations to derive insights
Planogramming Handling on shelf product presentation of brands and
products
Major campaign launched by Bangalore unit

POP (Point of Purchase) displays for Lakme Orchids nail enamels
Cariba-cola flavored rum campaign




Place of campaign
1. Spencer, MG Road, Bangalore
2. Topaz, Brigade Road,
Bangalore
Measurement of effectiveness
of merchandising
Survey and Questionnaire
comprising 16 questions mostly
objective
Target customer for survey
Upper and upper middle class
Sample size
30 numbers
Q1. What is your objective of coming to the store?

To purchase cosmetics?
To do window-shopping?
To give company?
To check out new arrivals?
Inference
A major portion of visitors in stores come for checking out new arrivals

These possibly will be the future customers for the store

Number of customers coming to check out new arrivals in case of consumer
goods is very less compared to electronic devices

Hence it can be said that consumer goods are bought with comparatively less
ponderation.
Q2. Do you prefer shopping in big departmental stores like this?






Q3. If answer to question 2 is yes, then why do you prefer shopping
in these stores?

Inferences:

Luxury items such as cosmetics are more appealing to consumer when sold at
dedicated large departmental stores.
Convenience & quality faith are major factors of shopping taking place in
malls
Merchandising alone can sufficiently influence buying decision
10
6
3
4
2
1
4
0
0
5
10
15
Convenience
of all under one
roof
Better quality Good variety Courteous
sales people
Competitive
pricing
Abundant
quantity
Status symbol Any other
reason
Scope of Merchandising
Q4. Are you normally pre-decided on what to purchase before
you come to store?






Q5. If answer to question 4 is no, then what range of goods do
you usually decide after coming to the store?


5
10
5
8
2
Cosmetics Household Items Crockeries Hygiene items Hard drinks
Inferences:

Majority consumer takes decision at the time of purchase so irrespective
of perception of ad, they can be attracted

FMCG such as Household, hygiene and cosmetic items are more likely to
have opportunity to influence consumers decision
Q6. When you move toward the cosmetics section, what is it that
strikes you most?







Q7. Have you seen or come across the newly-launched ads for Lakme
Orchids range?

5
15
10
0
Salesgirl Colorful displays Beautifully done
shelves
Other
purchasers
Inferences:

Arrangement and decoration play a cog in wheel role to attract customer

Less likely customer care about launching of new products but more
likely to try & use the new product
Q8. If answer to question 7 is Yes, then in what media?









Q9. What is your opinion about ads?

12
6
2
10
Newspaper Magazines TV(DD) TV(satellite)
Inferences:

News paper & TV (urbane region) ads are more likely reach customer

Mostly ads are liked because of being humorous and tickling
Q10. When you come to the cosmetics section of this store was the
ad in your mind?








Q11. What did you like in Lakme Orchids range of displays?

5 2
8
15
Colour Movement Positioning Try and buy concept Nothing in particular
Inferences:

Planograms & displays act as catalyst to ossifying impact of ads seen by
customers

Major sales take place on the ground of Try & Buy whereas positioning &
display play fairly good role for customers decision making
Q12. What is your opinion about the try and buy concept?

Confidence in product quality
Enables decision making to buy a new product


Q13. Would you have purchased Lakme Orchids range if
there was no try and buy scheme?

Inferences:

Try & Buy concept is welcomed to widen the customer base in market
basically for new products


Q14. What in your opinion is the decisive factor in making the
purchase?






Q15. If you have not purchased, then please give the reasons
thereof

4
5
8
4
9
Advertisement Store displays Ads and displays Salespersons Try and buy scheme
10
8 8
4
Highly priced Limited range of shades Dissatisfied by previous usage Any other reason
Unfortunately, out of scope of Merchandising
Parameters
Score Result
1 2 3 4 5 6 7 8 9 10 100%
Overall convenience 2 6 20 2 83%
Quality of products 4 5 2 9 10 75%
Variety available 2 5 5 6 10 2 78%
Sales people 3 5 7 5 10 85%
Price 1 4 5 6 8 6 41%
Quantity 1 1 2 8 8 10 87%
Spaciousness 1 5 8 9 7 85%
Location of store 1 1 5 18 5 88%
83%
75%
78%
85%
41%
87%
85%
88%
Overall
convenience
Quality of
products
Variety available Sales people Price Quantity Spaciousness Location of store
1. With the data collected what type of analysis could be adopted to
measure the impact of Lakme Orchids Campaign?

Survey data:
Based on sample data collected through survey bar chart and pie chart helped to find
correlations between effectiveness of various merchandising activities and sales
Financial data:
Regression analysis portrays that increase in ad campaign fetches higher sales revenue

2. What type of conclusions can be drawn from such an analysis?

Most of the buying decisions are taken on the spot majorly for FMCG products
Big departmental stores offering good variety of products with attractive showcasing
under one roof increases perceived value proposition of the product
Schemes such as Try & Buy complemented with advertisement in Newspapers & TVs
play fairly good role in influencing customers buying decision
Failure in meeting the sale of the product is mainly attributed to High Prices that is out
of scope of merchandising
Is it possible to conclude that effectiveness of merchandising is
higher if coupled with Ad campaign?

Survey questionnaire
Q10. When you come to the cosmetics section of this store was
the ad in your mind?

Very clearly
13%
Clearly
10%
Just could
recall
10%
Could recall
after seeing
the displays
67%

Inferences:

Planograms & displays act as
catalyst to ossifying impact of ads
seen by customers

Display of the products in store
should be in line with the ads to fetch
more sales
What are the possible limitations?
Limitation of data analysis:

1) Limited & Biased sample-
Sample data are highly biased as these are collected from limited & niche
segment of customers i.e. Students of IISc and social media that may have
common cultural and generation effects
2) Spurious correlation-
Regression analysis is done along a considerable period of time; that shows
positive correlation between Sales & Ad but this may have spurious correlation
with time as latent variable

Limitation of Merchandising:

1) Limited Scope-
It has limited scope up to product display & delivery; doesnt touch Price &
Quality component that is major decisive factor in buying decision
2) Accountability-
Increases price of product & hard to measure the ROI

Websites
www.ramms.co.in
www.google.co.in
www.wikipedia.com

Books
Marketing Management By Philip Kotler