Visual Merchandising and Product Assortment

FORAY BETWEEN THE SHOPPING AISLES 2010
ACKNOWLEDGEMENT
“Not what we give, But what we share,
For the gift, without the giver
Is bare”
~James Russell Lowell
A journey to the world outside text books and class rooms has remained the best teacher
for ages. “Foray between the Shopping Aisles”, was an expedition to learn, in a different
way.
We are deeply indebted to our professor, Dr. Deepak Gupta, for holding our hands when
we risked stumbling and guiding us through this study with his immense fund of wisdom and
patience.
We express a deep sense of gratitude to our mentor, Mr. Arpit Mishra, for his unfaltering
support and motivation which made this study worthwhile.
A token of gratitude, to the staff of Big Bazaar, Nilgiris, Reliance Fresh and More outlets of
Palakkad and Coimbatore, for without their support this study would have been impossible.
We are indebted to Mr. Anupam Goyal and Mr. Mohit Saxena for helping us out although
we were perfect strangers to them.
We are deeply obliged to all those customers who filled our surveys both at the stores and
online, for without them this study would have been nonexistent.
Thanks to all the students of Amrita School of Business, who, with their ideas and
suggestions fostered this study to completion.
AMRITA SCHOOL OF BUSINESS, COIMBATORE i

EXECUTIVE SUMMARY
The study “Foray Between the Shopping Aisles” was aimed at finding out the Impact of
Visual merchandising (VM) on customer buying behaviour. Visual Merchandising, which
deals with elements of display of products is fast gaining momentum in India with the
growth of retail industry. While
double conversion theory of
converting visitors to shoppers and
shoppers to buyers is making
marketers around the world pour
efforts towards the area of
shopper’s marketing, it is
important to notice that Visual
merchandising is involved in
getting more visitors to stores and
also in converting them into shoppers. As this accounts for 2/3 rd of the process, it is of
immense importance.
The research methodology consisted of experience surveys with floor managers and visual
merchandising managers. This was followed by questionnaire survey, which was done both
at stores and online. The total sample size amounts up to 176. Social media was also used as
a tool for learning in this study. A free lance interior designer who has designed over 100
stores including those for Zaara, Pocket and Nautica provided us with a telephonic interview
and also provided us with valuable secondary data which aided this research. Another
respondent who helped us out through social media was a Visual Merchandiser with VF
Arvind Brands who gave valuable insights about VM efforts and chanllenges in India.
The results obtained from qualitative and survey analyses are described in respective
chapters. Transcripts of interviews are available in Appendices 1-5.
AMRITA SCHOOL OF BUSINESS, COIMBATORE Page ii

Although we got some wonderful insights about the role of visual merchandising in retail
stores on consumer behaviour, this study had a few limitations. The study was conducted in
a sample which was from Kerala and Tamilnadu. Visual merchandising varies significantly
across states, which due to limitations of time and other resources were unexplored. Yet,
this study was conducted after a lot of cerebration, planning and hard work and throws
some much needed light on the subject.
AMRITA SCHOOL OF BUSINESS, COIMBATORE Page iii

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION TO PROJECT .............................................................................................. 3

1.1 TOUR OF THE AISLES ..................................................................................................................... 3
1.2 INTRODUCTION TO RETAIL INDUSTRY .......................................................................................... 4
1.3 REASONS FOR EMERGENCE .......................................................................................................... 5
1.4 STATUS QUO OF RETAIL MARKET IN INDIA................................................................................... 6
1.5 BIG PLAYERS IN INDIAN RETAIL MARKET ...................................................................................... 8
CHAPTER 2: RESEARCH DESIGN ............................................................................................................ 11
2.1 OBJECTIVES ................................................................................................................................. 11
2.2 RESEARCH METHODOLOGY ........................................................................................................ 12
2.3 SAMPLING PLAN.......................................................................................................................... 13
2.4 DATA COLLECTION AND CLEANING ............................................................................................ 14
2.5 ANALYSIS PLAN............................................................................................................................ 14
CHAPTER 3: EXPLORATORY RESEARCH–SECONDARY DATA ANALYSIS ................................................. 15
3.1 DESK RESEARCH .......................................................................................................................... 15
3.2 THE 5 SENSORY ELEMENTS ......................................................................................................... 17
3.3 VISUAL MERCHANDISING ELEMENTS ......................................................................................... 19
3.4 TIME DURATION OF THE WINDOW DISPLAY .............................................................................. 22
3.5 PRINCIPLES OF DESIGN ............................................................................................................... 23
CHAPTER 4: EXPLORATORY RESEARCH - QUALITATIVE METHODS ....................................................... 53
4.1 INTRODUCTION TO QUALITATIVE METHODS ............................................................................. 53
4.1 DEPTH INTERVIEWS .................................................................................................................... 53
4.2 OBSERVATIONAL RESEARCH ...................................................................................................... 55
4.3 IMPACT OF SOCIAL MEDIA .......................................................................................................... 57
4.4 DESCRIPTIVE RESEARCH .............................................................................................................. 58
4.5 RESULTS - DESCRIPTIVE RESEARCH ............................................................................................. 59
CHAPTER 5: RECOMMENDATIONS........................................................................................................ 76
CITATIONS ............................................................................................................................................. 81
APPENDIX 1: DEPTH INTERVIEW – VM MANAGER ............................................................................... 82
APPENDIX 2: DEPTH INTERVIEW – FLOOR MANAGER 1 ....................................................................... 85
APPENDIX 3: DEPTH INTERVIEW – FLOOR MANAGER 2 ....................................................................... 88
AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 1

APPENDIX 4: DEPTH INTERVIEW – RETAIL STORE DESIGNER ............................................................... 89

APPENDIX 5: DEPTH INTERVIEW – ASST. VM MANAGER ..................................................................... 93
APPENDIX 6: SURVEY QUESTIONNAIRE ................................................................................................ 96
APPENDIX 7: CODE BOOK ..................................................................................................................... 99
ADIEU TO THE AISLES .......................................................................................................................... 105

CHAPTER 1: INTRODUCTION TO PROJECT
1.1 TOUR OF THE AISLES
Shopping has transformed from necessity to an adventure. It’s more of an experience,

opportunity for celebration. Gone are the good old days when a list is made and shopping is
done at the nearby Kirana store. Shopping is a welcome break from hectic schedules, time
to let your hair down and hit the malls. Retail giants like Central woo their patrons with
mottos of “Shop Eat and Celebrate”, and Big Bazaars rule hearts with “Is se sastha aur acha
kahin nahi”. Do those attractive mannequins and 3D displays of Play stations actually make
more sales at your store?
The double conversion theory talks about visitors converting into shoppers and shoppers
ultimately in to buyers. Marketers around the globe are pouring efforts and currency into
shopper’s marketing.
VISITOR SHOPPER BUYER
Figure 1: The Double Conversion
At this juncture it is important to notice that visual merchandising, which deals with the
display of products and creating
an ambience is involved in the
first two stages. A good display
makes people walk into the store
and also helps in making them
feel like taking a look around.
Since VM is directly involved in
2/3 of the entire process of
converting a mere visitor into a
buyer, the need arises to seek a correlation.

As Peter Drucker rightly said, “Most serious mistakes are not being made as a result of
wrong answers. The truly dangerous thing is asking the wrong questions”. This report will
contain the purpose, procedure, methodology, conclusions and recommendations that
would make the foray between shopping aisles a memorable one to customers. It also
consists of a separate chapter on the impact of social media in this study in the form of
expert interviews.
1.2 INTRODUCTION TO RETAIL INDUSTRY
Retailing is considered as one of the most agile industry, where the individual stores comes
in contact with the customers and responds to their everyday needs. To be successful,
retailers must be able to convince the shoppers, that they can satisfy their needs better
than their competitors.
Retailing one of the largest industries in India, with an employment of around 8% and
contributing to over 11% of the country's GDP. Retail industry in India is expected to rise by
25% yearly as it is being driven by strong income growth, changing lifestyles and favourable
demographic patterns. Shopping in India has witnessed a revolution with the change in the
consumer buying behaviour. In India there are multi- stored malls, huge shopping centres,
and sprawling complexes which offer food, shopping, and entertainment all under the same
roof.
Retail industry in India and its growth
 India has the highest shop density and is rated the fifth most attractive emerging
retail market in the world
 2nd in the global retail development index out of 30 (AT Kearney Global Management
Consultants)
 The growth of Retail Companies in India has a long way to go and great potentials
within this sector is yet to be explored.

1.3 REASONS FOR EMERGENCE
Gender roles: Gender roles are now changing. Females have started working outside. So,
they have no time for actively looking out for new stores for their needs. They want all their
needs to be fulfilled in one single shop.
Paucity of time: People have no time for product searching. Because of emergence of
working women and also number of other entertainment items, people want to spend their
time either at work or with family.
Double income group: Emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily.
Large population: India being a second largest country in terms of population possesses
large potential market for all the products/services. This results into entry of large number
of fast food players in the country. Relaxation in rules and regulations, with the economic
liberalization of 1991, most of the tariff and non tariff barriers from the Indian boundaries
are either removed or minimized. This helped significantly the retail industry.
Industry Growth Rate and Trends: Most of the big companies have forayed into the retail
sector for a better business. Bharti – Wal-Mart, Future Group, Nilgiris, D mart, Shoprite
Hypermart, Spencers, Reliance Fresh, More (Aditya Birla Group) to name a few. The Growth
of Retail Companies in India is most pronounced in the metro cities; however the smaller
towns are also catching up.
The growth of Indian retail sector is expected to touch US$440 billion landmark by 2010
with the growth rate of 30-35 % as per Associated Chamber of Commerce and Industry of
India (ASSOCHAM). Revenues from the sector are expected to rise up to US$ 24 billion by
2010. It is expected that by 2016, modern retail industry in India will be worth US$ 175- 200
billion.

The share of modern retail is likely to grow from its current 3 per cent to 15 - 20 percent
over the next decade. 85 % of organized retailing is taking place in India’s urban areas. The
retail companies are found to be rising in India at a remarkable speed with the years and
this has brought a revolutionary change in the shopping.
Figure 2: Expected Growth of retail and contribution of GDP
1.4 STATUS QUO OF RETAIL MARKET IN INDIA
Currently there are about 51, 30,000 retail outlets selling about Rs5000 billion worth of
products. Retail universe in India comprises large, medium general stores, chemists and
pan-bidi, kirana stores (apart from accessories stores). In the last couple of years this
industry has made agile move from its nascent stages.
 In India, more than12 millions outlets are run by small business houses
 The expected boom in retailing is $ 300 billion and going to occupy second
largest retail market after China
 Retailing contributes 3% to GDP (around 10^10 rupees) in comparison to
organized sector
 There are over 2400 supermarkets, which account for 10% of total grocery sales
within the 28% urban towns.

 In India 60% of food and 40% of non-food items are kept in retails stores.
 In other countries the ratio is 80% foods or grocery and remaining 20% non-food
items are kept.
 There are 50 hypermarkets in India, operated by 5 big retailers.
 There are hypermarkets following backward integration and 70% stock is
procured from agricultural markets in India.
 Food and apparel retailing key drivers of growth in this industry.
Individual
retailers
MBO’s Hypermarkets
Convenience Discount
stores
Indian stores
Retail
Industry
Department
Supermarkets
Stores
Shopping Specialty
malls Chains
Figure 3: Types of Indian Retail Sector

Types of Indian Retail Sector
 Supermarkets (Nilgiris, Kannan’s Departmental Store)

 Hypermarkets (Shoprite)
 Department Stores (Apna Baazar, Maharashtra)
 Individual retailers
 Shopping malls (Forum , Central , Inorbit)
 Specialty Chains (Mega Mart)
 Convenience stores (Kirana Stores)
 MBO, ( Multi Brand outlets), ( Lifestyle, Pocket Stores)
 Discount stores (D- Mart, Big Bazaar, Coupons, Brand Factory)
1.5 BIG PLAYERS IN INDIAN RETAIL MARKET
 Pantaloon and the Big Bazaar

 Landmark and Central
 Shopper's Stop
 Lifestyle
 Globus
 Will's Lifestyle
 Westside
 Subhiksha/ Vishal Mega mart
 Vivek's Nilgiris
 Tata
 Godrej
 Reliance
 Aditya Birla-MORE
 Metro
 Varkey’s

This study was focussed in Coimbatore, where the concentration was mainly on modern
retail outlets viz. Big Bazaar, Nilgiris, More and Reliance fresh.
Here is a brief description about each:
Big Bazaar
Big Bazaar is India’s 1st hypermarket retail
outlet.
It was founded in 2001 with the 1st store
founded in Kolkata; it’s promoted by Future
Group headed by Mr Kishore Biyani. There are
currently around 110 outlets across india, It
provides products at best prices. The target
customers are price conscious segment which forms the major chunk of in the market.
Figure 4: Flowchart showing Big Bazaar assortment

More
More was started by Kumarmangalam Birla, Aditya
Birla Group in 2007, with the first store in Pune.
Now there are over 600 More stores in the country.
More started off as a supermarket but More
Megastores are fast mushrooming.
Nilgiris
Nilgiris was established in 1905 with humble
beginning in Ooty and Coonor. Has 90 supermarkets
across India’s southern states. It was established
with a clear vision for serving people.
Reliance Fresh
Reliance fresh is a supermarket from RIL, started in
2006 and has 560 stores across the country. These
stores will sell fresh fruit and vegetables besides
staples (dal, atta, rice) as well the company’s in-
house brand, Reliance Select. RIL is targeting not
only the households but also street side vegetable
sellers. According to sources, RIL is setting up Ranger Farms — outlets that will specifically
service streetside vegetable sellers who can stock up on fresh farm produce.

CHAPTER 2: RESEARCH DESIGN
2.1 OBJECTIVES
Does “What” and “Where” and “How” in

Decision maker's problem a store really matter as far as customers’
buying decisions are concerned?
What attracts customers towards

Market Researcher's problem
different products in a retail store?
On a more specific note, the market researcher’s problem (MRP) can be divided into the
following:-
MRP 1: To explore the impact of visual merchandising on the buying decisions of customers
in a retail store (how factor of DM Problem)
MRP 2: To explore if buying choices are made before reaching the store or thereafter
(General question which will help us understand consumer behaviour)
MRP 3: To explore the impact of layout in a retail store on customer buying behaviour
(Where factor of DM Problem)
MRP 4: To analyze whether customers actively seek for new products at a retail store
(What factor of DM problem)
MRP 5: To get an insight on “Are buying decisions unconscious or purely conscious”

(General question which will help us understand consumer behaviour)

2.2 RESEARCH METHODOLOGY
The study was done on the retail industry, specifically the discount stores, supermarkets and
hypermarkets and the apparel industry which are the pioneer in area of implementing visual
merchandising. The objective of the study was to understand the impact of visual
merchandising on the buying behaviour and the buying decisions of the customers.
Stages of research process:-
Stage 1 - Problem Definition
Stage 2 - Desk Research
Stage 3 - Research Design
Stage 4 - Field Work
Stage 5 - Analysis of Data Gathered
Stage 6 - Conclusion
Stage 7 - Recommendations
Figure 5 – Research Process Flow

2.3 SAMPLING PLAN
Target Population: Individuals between

the age group of 15 to 85 years.
Sampling Procedure: Judgement

sampling.
Sample Size: 176
Sample Elements: Handpicked

elements.
Data Collection: Survey done on the

sawmple elements using questionnaire.
Figure 6 – Sampling Plan
Target Population: Individuals between the age group of 15 to 85 years were chosen as the
target population. It is people under this age group who are frequent visitors and shoppers
to the large retail stores.
Sampling Procedure: The sampling procedure used here was judgemental sampling. Only
those respondents were chosen who visit retail outlets on a regular basis. This technique
was chosen to avoid sample elements that had not been to the retail outlets that are
focused in the study conducted.
Sample Size: Since covering the entire population for the study was not feasible, a sample of
176 customers was taken. Out of the 176 samples 97 were surveyed directly at Coimbatore
and Palakkad and 79 were online surveys from people all over India.
Sample Elements: The sample element consisted of people who visit and shop from large
retail stores.

2.4 DATA COLLECTION AND CLEANING
The data collection was done using the survey method. This was divided into 2 parts, the
direct survey and online survey. Much of the data cleaning was required for the online
surveys though the samples were judgemental. The responses outside the target sample
elements that crept in were filtered. There was not much data cleaning needed for the
direct surveys. In case of missing or the ambiguous responses the variable was assigned 9 or
99 to distinguish it from the valid responses.
2.5 ANALYSIS PLAN
Analysis of the data collected through survey was done using SPSS. The data was cleaned
and coded to give as input to the SPSS. The analysis done using SPSS was used to arrive at a
meaningful conclusion of the research. A code book was prepared for the entire
questionnaire.

CHAPTER 3: EXPLORATORY RESEARCH–SECONDARY DATA ANALYSIS
3.1 DESK RESEARCH
A better part of any successful study owes to the secondary research of published works. A
brief idea of what was already done will provide wonderful insights about how it can be
taken to the next level. This gave us published data on what attracts customers towards
products and buying behaviours of customers with reference to visual merchandising. It also
highlighted various forms of visual merchandising and their impact on consumer buying
behaviour.
Significant amount of work has been done in what drives people to choose some products
over the others from shelves. The increase in Existing Indian middle classes with an
increased purchasing power turn implies that retail industries are finding various ways to
attract customers of different SEC to buy the goods for which visual merchandising plays a
very important role. Introduction of slotting allowances which necessitate payments by
manufactures to retailers for providing shelf space for new products becomes relevant in
this context. It is all about how to make customers look at your products. [1]
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 Buylogy – the subconscious thoughts, feelings and desires that drive the purchasing
decisions that we make in everyday lives. [2]
Studies reveal that indoor signage play a dominant role in attracting customers to buy
certain products. “Standee” is preferred by the majority of shoppers followed by drop down
and shelf stock signage. A striking data that came out of this research was that signage of
discounts and offers influenced the group with monthly income between INR10000 and INR
25000.

Figure 7: graphical representation of the range of information carried by signage

(Source: Report by V.P.S. Arora, Shivani Sharma and Nirdesh K. Singh for the Agricultural Economics
Research Review)
Study on ITC Choupal fresh revealed that all the racks were placed on the left hand side and
the cash counter was on the right side of the store keeping in view that the moment the
customer enters the store; he turns to the left instead of right. [3] They also designed special
section and racks for fruits and vegetables to make it look more appealing.
The 70% Rule

70 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.[4]
In addition to its conclusion that “more than 70 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 “in supermarkets, 42 percent of all brand purchases were
made when one or more pieces of POP were present for a brand, [and] at mass
merchandise stores, 35 percent of all brand purchases were made when one or more pieces
of POP were present for a brand. More precisely, the study found that “more than 70
percent of brand purchase decisions are made in-store at supermarkets, and more than 74
percent are made in-store at mass merchandisers.” The context, in which this data is
presented, however, is lacking. These percent findings are stated as a conclusion, rather
than, for example, as a percent of all store SKUs, in test versus control stores, etc., which
would help explain the significance or lack thereof of these conclusions. [5]

This study was large in scope; encompassing data from a nationwide field intercept study of
4,200 consumers across 14 cities.
Yuri Bolotin, Principal, Design Portfolio, Australia, says, “Retail design can increase sales of a
store, provided the productive sq.mts (the retail floor) are effectively designed, keeping that
purpose in mind.” ‘In-store’ decisions to buy a product depend on a lot of factors like, the
quality of the product, durability, pricing and so on. But the buck does not stop here,
aspects like how the merchandise is placed, whether the in-store advertisements are
properly put, what kind of music does the store play, how does it smell, what is the colour-
scheme of the walls, is the ambience pleasing or otherwise are important for a visual
merchandiser to take care of.
Manu Neelakandhan, Design Director, Idiom Design & Consulting Ltd, says, “Try and involve
all the senses to attract the clients. The emotions should follow the AIDA and ultimately to
satisfaction at having received the best that the retailer has to offer the clients.” A store
should always be viewed as a catalyst for raising revenues for the retailer. And therefore, its
layout’s importance can never be over stressed.
3.2 THE 5 SENSORY ELEMENTS
Sight: The first thing that motivates a consumer to walk into a store is how the store ‘looks’.
A welcoming and friendly store always scores a plus over those which are not. Bright
colours, well-placed merchandise and in-store advertisements, all go into working for
creating that ‘sight’ for a consumer. For example, in a furniture store, facts and helpful tips
by interior designers can be put up next to merchandise to aid the consumers. They can see,
read and take informed decisions.
Sound: Cacophony and chaos is not something that a retailer should ever associate his/her
store with. Neither is silence a good option. 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. Musty odours or strong
paint fumes can act as a deterrent for clients. A visual merchandiser while working in
accordance to the retailer’s details should always keep in mind the sense of smell of a
shopper; especially in the case of an F&B outlet, where bad odour is just unacceptable. A
good odour is a sure-shot bonus to the store, it may not be remembered always, but its
absence shall surely be remembered.
Touch: This is a tricky sense to indulge in, but most vital. For 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, holding a porcelain vase, feeling
the texture of a glass table or judging the sturdiness of a hammock, the client should always
be made to feel at home when it comes to the sense of ‘touch’. The worth this cannot be
over emphasised.
Taste: Not all retail stores can hope at utilising the sense of taste. But for those who can, like
chocolate stores, candy stores, F&B outlets, snack and juice bars should aim at always
treating the sense of ‘taste’ of their consumers. On the house samples for tasting, free
dishes or drinks on certain amount of purchases or sweets and chocolates for kids at any
other kind of store are a few ways the retailer can indulge in the sense of taste of the
consumer.
Pampering the five senses of the consumers ensures a sensory shopping experience for
them. Working out the visual merchandising of a store with this end in mind can work
wonders for a brand. The sixth sense, in this case, can be the sense the consumer exercises
in purchasing the product. But that sense shall only prevail if the other five have been
effectively stimulated!

3.3 VISUAL MERCHANDISING ELEMENTS
EXTERIOR 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.
EXTERIOR SIGNS
An effective sign is a silent sales person. A sign must attract attention of customers in less
than 10 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 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.
MARQUEES
Marquees are special type of signs
used to display stores name. Effective
marquees should be designed so as it
is different from others and attracts
the attention of customers.
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.
AWNINGS
Colour and appeal can be added to a store exterior with the use
of awnings. They also act as production to customer from rain
and sun. This also facilitates the customers to view the window
display more comfortably as it reduces heat, cuts down on glare
and reflection and also prevents fading of merchandise from
exposure to sun. Awnings if wrongly used can be distracting
factor to the total image of the store.

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.
LANDSCAPING
Landscaping should ultimately lead a
customer’s eye to the focal point
using colour and texture to provide
contrast in harmony. A good
landscaping should be simple one
which is also easy to maintain. Plants
and flowers used in front of store ads
to the general appearance of the
store. Well chosen plans which are
properly placed and maintained will help a lot in welcoming customers.
WINDOW DISPLAYS
The Window to Customer’s Heart
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. Window display can be as important, if not
more important, than advertising. 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 11 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.
3.4 TIME DURATION OF THE WINDOW DISPLAY
Shoppers also lose interest when the same window display is left up too long. It is especially
important to frequently change window displays in small towns where customers pass by
several times a week. New displays indicate that new, up-to-date merchandise is available.
Properly lighted window display can help sell specific products or ideas that promote a
store’s image. Window lights should be strong enough to overcome the reflections from
outside objects, such as parked cars and buildings. At night, additional lights overhead
marquees and projecting cornices can make the window area look larger.
Closed-back windows require a high level of general illumination. Massed window displays
are often lighted with overhead fluorescents which are supplemented by closely spaced
clear incandescent lamps. Miniature portable spotlights should be used to accent small
display areas, price cards and specific items in a massed display. Compact footlights help
relieve shadows near the bottom of vertical displays.

THEME CREATION IN A WINDOW DISPLAY

Window displays are more successful
when a prominent theme is carried
throughout the display, regardless of
whether the featured products are
fashion-oriented, institutional or
promotional in nature.
Suggested window treatments that

have proven successful include:
 A single object against seamless paper
 Merchandise displayed as it would be utilized in a realistic setting
 A theatrical setting using fantasy and drama
 Straight merchandise glamorized with props
 Animation, such as in holiday windows that draws crowds of shoppers
 The use of sculpture, painting or art objects for a touch of glass
 Media tie-ins, with current area activities, films, stars or best-selling books
Window displays should be in harmony with the entire surroundings, a whole is being
created rather than a fragment. When planning a window display consider the building
façade, street, people and their perceptions, colour harmony, lighting and viewing angle.
3.5 PRINCIPLES OF DESIGN
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. One proven way to do this is
through interior displays that effectively
show merchandise to the customer. 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.
INTERIOR DESIGN AT SHOPPERS STOP
Impulse buying - The trick of Visual Merchandising

A research conducted in US suggests
that 64.8 per cent of all purchases
decisions were made inside a
supermarket. This included impulse
purchase along with substitutions
and generally planned buys where
the shopper had an item in mind,
but no brand. Most people indicated
they purchased the item because
they saw it displayed.
Displays or advertising alone may not increase product sales substantially. However,
combining advertising and display into an integrated promotional campaign will usually be
more effective.

Some effective displays are created by suppliers or brand-name manufacturers, while others
are developed from scratch. The main principles of design used in display are balance,
emphasis, proportion, rhythm, colour, lighting and harmony. These principles apply to all
displays ---window and interior.
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.
PRINCIPLES OF DESIGN
To execute a display that will sell merchandise it is necessary to have a working knowledge
of the principles of design. The primary principles of design used in display include balance,
proportion, rhythm, emphasis, colour, lighting and harmony. When applied appropriately,
all parts of display are pulled together to create a purposeful effective and aesthetically
pleasing presentation. An understanding of these principles will make it easier to design a
display for all types of merchandise.
Balance
Balance involves equilibrium and weight of elements between 2 sides of a display. Balance is
based on theory of equals, two types of balances include
1. Traditional or symmetrical balance is the large on one side and large on other this can be
effective when expensive and quality merchandise is being presented

2. Informal or asymmetric balance

Creates flow or rhythm and a feeling of excitement. The two sides of the display appear to
be of equal weight , but they are not replicas of each other. Something large can be
balanced by several small items or an expanse of empty space, a bright colour or a shot of
lights. Several soft colours in a large space can be balanced by one bright colour because the
intensity of bright colour will compensate for small size
When planning a display following points concerning balance has to be considered
 If colours are too bright they will overwhelm pastels

 If several small objects are more exciting than the large object, they will overpower
the large item
 A large expanse of empty space will call attention to a single object placed within it
 If an item is placed at an angle or to one side (Off Centre) the space on either side of
that piece becomes important
 If an object is centred, empty space loses importance because its shape is
predictable and has less recognition as its own element
 A pleasing distribution of weight using merchandise of similar value will provide
importance to both sides

Emphasis
Emphasis is the point of initial eye contact. From this spot all eye movements flow.
Emphasis is therefore formulation of focal point, with all else in display subordinate. There
should be emphasis in all displays. This can be by virtue of focal point’s size, colour or
position. The merchandise is the focal point in a majority of displays.
Eye Movement is from left to right

When planning display, the following points regarding Emphasis are to be considered
 A display needs to emphasize a theme or mood such as the use of sports equipment,
work equipment or leisure equipment set up in a lifelike situation. Themes may also
depict seasons, anniversaries, celebrations, holidays and other special store events.
All elements in a display must then reinforce one other and emphasize the mood
created
Focal point is the small square. Eye movement is from the square along the dashed line.
 The focal point is in the upper left and eye movement is to lower right
 An isolated item can be emphasised when surrounded by a blank space
 Shiny surfaces emphasize and enlarge objects
 Dull surfaces absorb light and help to de emphasize an area

 Colour is a powerful medium for creating emphasis. Small amounts of advancing

colour, bright intensities, extreme tints or shades contrast in right places will provide
striking accents
 Unusual textures highlight an area
 Emphasis is diminished with receding variations such as thin, fuzzy lines, nondescript
shapes, regular spacing, even light absorption, cool hues, dull intensities. Medium
tints or shades, dull opaque textures and small all-over or no pattern
Repetition usually means something is important. So repeated shapes, colours or motifs

grouped together reinforces their importance and creates emphasis.
PROPORTION
Proportion is the ratio of parts to the whole display. It is comparative relationship of
distances, sizes, amounts, degree or parts. Each item may look normal when isolated, but if
it is inconsistent in area or dimension with neighboring items, it seems out of proportion.
Each piece of merchandise must be considered in relationship to all the other merchandise.
When planning a display, the following points concerning proportion has to be considered
 All large objects should not be used together, because there is nothing to break the
monotony and sameness of that large feeling.
 Adding an odd number of smaller, related items to large creates more interest and
balance.

 Proportions take on more meaning when items define one another. For example the
size of a dinosaur is defined when it is standing next to a two story house.
 Proportion and balance can best be accomplished when articles within the display
play off each other thorugh their size, shape and colour.
 Ratio of merchandise to space is critical:
o Each piece of merchandise must be considered in relation to others.
o The ratio of props and show cards to merchandise must be in proportion to
avoid the appearance of stressing or selling props rather than merchandise.
o Each object should not be too large or too small, nor too heavy or too light in
proportion to other items in display areas.
 Proportion and contrast are important elements of good display. Drastically changing
the proportions and the colour and texture can work wonders in attraction attention
to a display. For example, a pair of baby shoes will appear smaller and more delicate
when placed next to an enormous teddy bear.
RHYTHM
Rhythm or flow involves the measurement of organized, a self contained movement from
object to object, background to foreground, and /or side. The rhythm in a display leads the
viewer’s eye from the dominant object to the subordinated object(s) or from the primary
presentation of the grouping down of the display.
Rhythm may be broken-up or continuous; clearly stated or subtly suggested; repeated or
vaguely similar. The initial pattern or design when repeated makes more of an impression
on the viewer because it provides a continuous beat and completion, which is satisfying to

the viewer. Rhythm entails an arrangement of organized motion and does not necessarily
need repetition. However, it does gain impact from repetition.
A flow exists if eye travels from one area of a display to another, covering the entire display.
The eye should travel easily through the entire design. For example, If a very tall object such
as mannequin, is placed in the baskets (one and one-half times the height if the baskets),
the height of the smaller objects is raised so the eye flows easily from the head and neckline
of the mannequin to the baskets. A display can lead the eye with the colour, repetition,
shadows created by light placement, lettering or texture.
When planning a display the following points concerning rhythm have to be considered:
 People who read English, read from left to right. A left to right reading should be
created in the display.
 Elements that mean something together and relate to the merchandise are to be
used.
 A pattern through the use of light and dark, either with colour or light has to be
created.
 Overlapping of objects placed together in the display area can prevent the blank
space that could exist with a number if items in display. Overlapping is one of the
most effective tools for creating good flow.
 It is usually recommended to use an odd number of items when displaying multiples.
 A fabric or colour that unifies the theme has to be used.
 Props that are repetitions either in form or theme are to be used

 The technique of flying merchandise to create flow can be used

 Lettering with repetition of similar items or with dominance by using oversized items
to create flow can be used
 Lettering with repetition of similar items or with dominance by using oversized items
to create a flow is to be employed
It is important that the eye is led through the display and does not leave until all parts have
been seen.
HARMONY
Harmony is a coordinating umbrella principle that can cover and incorporate every other
principle. It is an agreement in feeling and consistency in mood; i.e. , the feeling that all
parts of display relate to each other and to the whole display. Without harmony, the
observer is uncomfortable and will not be entitled to purchase merchandise.
Three forms of Harmony namely Functional, Structural and decorative must be in
agreement in a display.

Functional Harmony deals with how something works physically, which means it must be
realistic and must work. E.g.: - Kitchen counter used in a display that is the appropriate
height and depth for working.
Structural Harmony is correctly fitting together the entire piece; merchandise should not be
out of place in the display. E.g.: an electrical appliance is not structurally consistent in an
outdoor or camping display. A good window display may have pot and pans, fishing gear and
outdoor furniture all mixed together because these items truly would be used on a camping
trip; hence camping theme is carried out. All merchandise is brought together as part of the
trip and harmony would be created or a mood would be set.
Decorative harmony includes the parts of a display that are included for decorative
purposes. If an atmosphere of spring is being developed, butterflies and/or flowers may be
used as props. These items are attractive and add to the theme.
COLOUR AND LIGHTING

COLOUR
Colour contributes significantly to peoples impression of a display, as well as a stores overall
appearance. Colour in a display can catch the eye and make people pause and look. The
colour combinations of the ceiling, walls floor covering and the overall décor can affect the
atmosphere of the store. Changing the colour scheme of a store, and can increase (or
decrease) business.
Colour can change the shape and add interest to a dull room, and can direct attention
toward a specific object or ways from the problem areas. People tend to respond a certain
way to different colours, these responses are outlined in the chard on the following page.
Warm colours (red, yellow, orange and colours with red or yellow hues such as yellow-
green, beige, peach brown and orange-red) are stimulating and cheery. They make a room
feel warm and intimate. Warm colours make a room seem smaller while making objects in
the room appear larger. A warm colour end walls of a long narrow room will appear to
shorten the room.
Blue, green, violet and colours containing blue, such as blue green and violet-blue, are cool
colours. These help create a relaxing atmosphere. Rooms decorated primarily in cool colours
tend to appear larger and more spacious. Cool colours are especially pleasing in smaller
rooms.

A colour wheel is a handy tool to use in developing a colour scheme for a store. The colour
wheel consists of 12 colours, as shown on the following wheel consists of 12 colours. Several
colour schemes are possible by choosing different combination. Some common colour
schemes that can be used to plan a display are listed below.
Table 1: Emotional Response to colour

Figure 16: Colour Wheel
There are no absolute rule for choosing and combining colours, only flexible guidelines.
Imagination and experimentation will find colour schemes that lend to the atmosphere and
attract customer. The type of merchandise featured, such as hardware, jewelry; clothing
etc. will have effect on the type of colour schemes that can be used and the extent to which
they can be used.
MONOCHROMATIC SCHEME
A Single colour on the colour wheel is used with three to five tints and shades of that single
true colour in this scheme. Several pieces of blue merchandise each consisting of a different
value ranging from baby blue to navy blue, is an example of a monochromatic colour
scheme.
ANALOGOUS SCHEME
Any three or four consecutive colours on a colour wheel create an analogous scheme. This
can be used to create a soft and subtle décor and warm or cool effect. This colour scheme
needs to be used with caution so as not to end up with and over stimulating nor depressing
atmosphere. Example of analogous scheme could be yellow, yellow-green, green and blue-
green, or blue, blue-green and green.

TRIADIC SCHEME
Every fourth colour on the colour wheel for a total of three colours makes a triadic scheme.
This is a good combination of colours that can create the muted, traditional look as well as
more vibrant colour characteristics of moderns colour schemes. An Example could be red,
blue and yellow.
COMPLEMENTARY SCHEME
A complementary colour scheme is represented by two colours that are exactly opposite
one another on the colour wheel, such as green and red or yellow and purple. It can result in
a very pleasing combination of warm and cool colours. Using opposite colours in equal
amounts of lights and dark combinations should be avoided.
SPLIT COMPLEMENTARY SCHEME

Three colours forming a y on the colour wheel consists of base colour and one colour on
each side of the base colour scheme to create interest and richness. Examples are yellow,
blue-violet and re-violet or blue, yellow- orange and red-orange.
DOUBLE COMPLEMENTARY SCHEME

Four colours, consisting of any two sets of complementary colour create a double
complementary scheme.Eg:- This colour scheme would be yellow and purple, as well as red-
orange and blue-green.
TONE ON TONE SCHEME

Two colours that are next to one another on the colour wheel with very little space between
them make ip a tone on tone scheme. Generally no change in either intensity, such as
degree of brightness, or in tints or shades is used in a tone on tone scheme. A display of
blue and blue-violet silk flowers is an example of this scheme.
A dominant colour must be selected in developing a colour scheme. A single colour can be
monotonous; however a pleasing effect can be obtained by adding the right colours using
an uneven balance between warm and cool colours.

Knowing about colour and its effect on the viewers can be helpful in designing displays.
Certain colours create intense vibrations when used together. Bright red and yellow create a
hot, festive atmosphere that suggests a celebration or circus. Too much of any vibrating
colour scheme will detract from the merchandise and irritate the customer after prolonged
exposure. Using different tints or shades of the colour (such as a lighter yellow with a pinked
red) will set up a warm, friendly colour scheme and will be less intense and offensive over
the long run. Bright colours can also be broken up by an eye-relieving area of solid neutral
or light tone.
Some of the most effective displays utilize monochromatic schemes because a large area of
any one colour can be seen from a great distance and will create an impression of strength
in that colour. The colour may also be popular in fashion, clothing, and house wares, make
up or other merchandise that shows merchandise in the store is current.
Combining colour scheme choice with traffic patterns can see more items. The colour a
retailer wants featured should be positioned on the wall where it can be easily seen,
drawing customers into a department or store. Other colours can fan out on either side and
complement the feature colour. Background colours should be selected which will show off
the merchandise at its best. Generally, neutral colours selected are white, blue, gray, beige
and black.

Colours must be considered in view of their surroundings, as a colour change dramatically

when viewed under different circumstances. A red chair will appear yellower when put next
to blue wall. Next to green wall a red chair will appear lighter and brighter, and beside gray
it will appear brighter. A dark colour placed near a lighter colour will appear deeper while
the light colours will appear lighter yet. Colours are also radically altered by difference in
pattern and texture.
Table 2: Colour Combination in stores
A major concern is choosing a background

colour used in display areas and store that
will work for a reasonable period of time.
There are companies that do colour forecasts
and track expected colour preferences for five
years. Colour forecasts can also be received
as they pertain to a season.

Before using any colour, the surroundings of the colour must also be considered. Colours
can change drastically with respect to the surroundings. For example, a red chair will look
brighter in front of a green wall than in front of a blue wall. Choosing a background colour
for display areas and interiors that will work for a reasonable period of time is a major
concern for companies. Background colours affecting the colour of the merchandise should
not be used.
For example, light colours such as pink, yellow, blue and white should not be used in infant
garment section because these are generally the colour of the garments. The small size and
light tone of garments generally make them invisible. Bright and sharp colours should be
used in these areas to make the garments stand out and more visible.
Gray, brown and blue backgrounds work well for stores carrying chinaware and glassware.
Brown colour especially goes well with bon china and blue work well for porcelain. Brown
colour should not be used as background for silver merchandise because the reflection of
brown colour on the merchandise will make it appear tarnished. Brown and burgundy
colours acts as a good background to display brass merchandise. Sky blue and tennis court
green are some colours that can give a great look to stores with sports merchandise.
SOME COLOUR RULES
1. Intensity of the colour and contrast should be considered while developing colour
schemes. One should be very
careful while using intense and
strong contrast colours. The more
intense the colour is, the smaller
the area it should cover. When
intense colours are used, the
second colour should be a softer
one. Strong colours should not be
used to paint large areas.

2. The colour scheme used in the background should match with the merchandise on
display. It is better to use neutral colours for background. None of the main colours
of the merchandise should be used for floors or walls.
3. The value of the merchandise should be associated with the selection of background
colours used in the display area. Vivid hue is generally used to display low priced
merchandise. Mixing of low priced and high priced merchandise is not advisable.
Items should be grouped by price and design.
4. Light tints are pleasing to the eye and seem to deepen the window space increasing
the window size.
5. Dark shades shorten the perceived window space because they appear to bring the
background to the foreground.
6. Warm colours such as yellow, orange, red and their combination with white and
black are pleasing to the eye and enhance the appearance of the merchandise.
Colours such as blue and green are cool, calming, balanced and soothing and they
create an illusion of enlarging window.
7. Contrasts are effective if they are done properly. Bold combinations can be very
effective if it is done with a good taste.
Certain colour combinations work well because they are used for a long time and also are
accepted internationally. New colour combinations should be worked out carefully and
one can learn more about colour combinations by observing the colour scheme used by
new stores.
LIGHTING
Lighting plays a major role in visual
merchandising. Bright areas and items
generally attract the attention of
shoppers. Lighting is used extensively
in shops and malls to draw attention of
customers to a specific area or a
product. Lighting is also used to direct
customers through the store.

Customers follow the lighting of the store and navigate through the lighted path. So,
essentially the display lights should be more powerful and effective than lighting used in
other parts of the store.
There are three types of lighting for illuminating stores. They are
1. Primary lighting
2. Accent or secondary lighting
3. Atmosphere lighting
Primary lighting
Primary lighting is the basic overall lighting of the store which includes both internal and
external lighting. Internal primary lighting includes lighting which fills the store area from
overhead lighting fixtures and provides only very basic store illumination. External primary
lighting includes basic window lighting, marquee lights illuminating the sidewalks and the
lighting for the general lobby. Fluorescent light sources are generally used for primary
lighting.
Accent or secondary lighting

Accent lighting provides illumination to specific display areas. A store with only primary
lighting can be very boring to the customers and shopping in such a store becomes no
fascination gradually. Accent lighting provides a change to this boredom. Down lighting from
the ceiling, showcase lighting and valence lighting are some ways in which accent lighting is
done. Incandescent lights varying from small to bigger sizes are generally used for accent
lighting.
Atmosphere lighting
“Playing with light against shadow” is the concept of atmosphere lighting. This is used to
create distinctive effect on specific displays. Colour filters, pinpoint spotlights and black
lighting are used to create dramatic effects on certain displays.

Types of lights used

Fluorescent lights are used for this purpose because they cannot be directed towards a
product. Fluorescent lights wash an area with light in which no shadows or accents are
made. A large range of shades of colours are available for illuminating the merchandise as
well as the store. One should also be careful while using fluorescent lights to illuminate the
store as the store may appear dull or boring. A combination of lighting effects can be used
to avoid this.
Incandescent lamps have sharply defined beams that can be easily used to highlight a
particular merchandise or display. These are available in numerous sizes, shapes and
colours. They emit a lot of heat which is considered to be a safety issue and also increases
the cost of air conditioning in the store.
Spotlights are very effective for merchandise displays. Merchandise racks on the whole can
also be illuminated well using spotlights. Spotlights are either installed in ceilings or on the
racks. These lights are surrounded by a shade which affects the way the light is emitted. The
angle in which the spotlight is directed is very important. The direction of spotlights can be
changed frequently or as and when new products are introduced in the store so as to
highlight them. Coloured filters that change the colour of light are available for spotlights.
But one should take care that filters should not change the colour of the merchandise.
Gels are coloured acetates that can be placed over light bulbs. They are similar to filters, but
are less expensive. They are available in rolls and can be used by cutting it as required. Gels
need to be changed every week.
High intensity discharge (H.I.D) is considered to be the most efficient lamps available. The
advantage is that they provide more light per watt than fluorescent or incandescent lamps.
This type of light is relatively small in size and provides shadows and highlights. These lights
enhance the merchandise and also flatter the customers. They are cost effective also.

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. But it is not the theme merchandise, such as golf bulbs used in conjunction with golf
wear.
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 increase 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.
Props may also be natural or ordinary objects such as such as items carried on from the
woods or rustic antiques found in someone’s attic. Examples include a branch from a lilac
Bruch for a spring or summer theme, shocks of
wheat, dried leaves and wood created if
assorted size used to enhance a fall theme, large
boulders used to give the idea of strength and
power to a tractor, and grey rocks to provide
contrast to jewellery. These object props are not
generally beautifully themselves, but highlight
the merchandise for sale.

The merchandise in a display should always be the dominant element. The presence of prop
is to highlight or complement the merchandise and add visual excitement to the
surrounding area. A prop not present to distract the customer from their original purpose
for shopping for and purchasing goods.
FIXTURE TYPES
STRAIGHT RACK - long pipe suspended with
supports to the floor or attached to the wall
FOUR WAY FIXTURE: two cross bar that are

perpendicular to each other in a pedestal
OTHER COMMON FIXTURES: tables, large bins,

flat desks
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.
MERCHANDISE DISPLAY PLANNING

SHELVING – flexible and easy to maintain.
HANGING- Suspending merchandise from hangers
PEGGING – small rods inserted into walls or
gondolas.
FOLDING – for softlines that can be folded and
stacked on shelves or tables – creates high fashion
image.
STACKING – for large hardlines 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 is seen in the figure.
DUMPING – large quantities of small merchandise can

be dumped into baskets or bins – highly effective for
softlines (socks, washcloths) or hardlines(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
we; look 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 3 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:
 Improved sales presentation and closure results

 Increased consumer appeal of product displays
 Better brand awareness through consistency
 Improved efficiency of shelf space allocations
 Improved financial performance of assortments
 Faster more accurate replenishments
 Quicker inventory resets
 Much better marketing through targeting displays
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 fixture in stores are 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.
End caps are units at the end of aisles. End-caps are important selling locations and should
be used for high profit impulse or seasonal merchandise on a gondola sides. For example
golf balls displayed on a end-cap indicate that related golf accessories are located on
gondola sides.

Customers generally look to the centre of gondola sides first and then, to either right or left.
Additional high profit impulse items should be placed in the centre of gondola sides and
other related merchandise to either right or left. Larger more expensive merchandise should
be placed to the right.
The high turnover, high-profits items should be placed at the eyelevel. If possible remove a
sample from the container to allow the customer to handle and feel the item. Old
merchandise should be cleaned and pulled forward as new merchandise should be added to
back. Use a starter gap in which at least one item is missing, so the customer will not feel
like they are messing up a neat display. Restock the display before it gets down to the last
item so customers will not get the impression that something is wrong with the item. As the
merchandise begins to have broken sizes or assortments, the remaining items should be
moved to the bottom shelves of gondola.
An acceptable means of arranging merchandise on a gondola is by colour. People think of

colours is as follows:
1. Start with neutral colours: off-white, cream, ivory, beige, tan and brown.
2. Proceed with warm colours: yellow, gold, orange, peach. Rust, pink, red. Cerise,
lavender and violet.
3. Finish with cool colours: blue, green, gray and black. Group merchandise by
colour as previously mentioned, as well as from smallest to largest and from left
to right. When a variety of styles are shown, each style (small to large sizes)
should be grouped separately by colour. Some merchants may use variations of
this concept to provide greater contrast in the display.
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.
 3 ft distance between racks must be allowes

 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 maximise 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. 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.
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, announce sales
and sale merchandise. Although their primary purpose was these, now signage commonly
advertise vendors, colours, quality and prices. They can also be used to explain customer
benefits and describe merchandise features.

A good signage would use the AIDA principle of
 Drawing the customer attention

 Identify the merchandise item being sold
 State the customer benefit
 Communicate the underlying value for the customer
Common principles in designing and using signs effectively

Special attention to be given to the sign and show card margins, The left and right margins
must be exactly equal and usually not exceed2 inches. A border drawn or printed around
the edge of a show card can attain the customer focus.
The focal point of a sign appears near the optical centre of the sign which is exactly halfway
between the left and the right margins and slightly above the midpoint of the poster. The
human eye makes the first contact in this portion.
White space must be maintained as much as possible around the copy
 Action adjectives or adverbs must be used to describe a hidden feature that will
benefit the customer.
 Some of the key words that can be used in the signage can be YOU, MONEY, SAVE,
NEW, EASY, LOVE, DISCOVER, RESULTS, PROVEN, FREE, GUARANTEE
 All these words should be aptly used. There should be no over usage or under usage
 Clutter of information should be avoided; signs should be avoided where the
merchandise itself can tell the entire story.
 It is better to use the price information directly rather than percentage discounts as
the customer would find it difficult to compute
 The signage should be checked daily to ensure that It displays the current promotion
and not of the previous day or of the previous sale
 Information can be printed on both the sides for sign holders as this would enabe
the customers approaching from different directions to read the signs
 Same style print of the signage can be used in the interior signs so that there is an
cohesive appearance
 The signage should appeal to all the audience
 Stimulate the customer by asking them to buy

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
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 has 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.
The reverse scenario can also happen, i.e. using too many mini themes in a display making
each one completely ineffective. It is possible to effectively combine several types of
merchandise in one area using one theme. An example would be combining body wash,
soap, after wash hair cream, shampoo and deodorant with a signage showing complete
body care package
Props

There is no specific rule that stipulates the number of props appearing in a display. However
the error of over propping a display can be more serious than using too many props. The
type and number of props are dependent on the merchandise. The display of a living room
suite will need fewer props to complete its message. Other goods especially smaller items
will need more props to elevate it to the eye level or provide a central theme to the
grouping.
Poorly selected Props

One should evaluate the props as to whether they are seasonal, rustic, contemporary,
feminine or masculine and whether they will appeal to the store’s target market. Props are
important to effectively present a display with a theme. Therefore props must be in
harmony with the goods shown. For example, a green velvet backdrop will not be reflective
in a display promoting summer merchandise.
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. However,
no display or set of props should remain until it collects dust and every person in the
community has seen a number of times. Frequently changing the display sends a positive
message to the community, provides opportunity to show more merchandise and presents
more to the shopper
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
 The display should be absolutely clean without any dust

 Signs should be attached in the display providing all the necessary information
 Lights in the display area should be covered. Moreover caution is to be taken to
avoid fire and other related disasters
 The display area should be checked from all the angles so that all merchandise
should be easily visible and aesthetically pleasing
Mistakes in applying principles of display
 The four principles of design and display include emphasis, balance, rhythm and
proportion. These principles must be reviewed every time the display is completed
 Every display needs a point where the 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
 The principle of rhythm should not be violated. An example of the same can be as
follows. Many small items kept in a single area with no attempt made to keep the
eye following a planned pattern. Such a pattern creates a scattered and spotty
display. The visual display should be tightly tied to each other to depict a story

 Props and merchandise when not arranged together by size or weight creates a
disproportion in the VM. Small items should not be clubbed with large items unless
there is a continuous graduation
 The fixtures in the store should be adequately stocked , if it’s sparsely stocked then it
looks as if the remains are leftovers
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 a particular merchandise can create
a good shopping experience and can be an important tool for creating a brand. The best
example of using the music can be entering the Raymond showroom and one can hear
constantly the music of its famous advertisement ‘The complete man’. Thus shopping at a
Raymond outlet would actually mean that, the customer actually is a complete man!!
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. In some cases the best may be the absence of any
noticeable scent! This is particularly important if the section has a non-vegetarian food
court.
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. [6]

CHAPTER 4: EXPLORATORY RESEARCH - QUALITATIVE METHODS
4.1 INTRODUCTION TO QUALITATIVE METHODS
Some things make perfect sense when they come from people who are closest to the action.
For getting a clear picture of the objectives of study, interviews were set up with the floor
managers of Big Bazaar and Visual Merchandising Manager. These interviews gave
invaluable insights about visual merchandising and its impact on customers at a retail store.
It was not difficult to get them talking although some of the information they shared could
be confidential as they were also interested in finding out the effectiveness of VM
implementations.
Some of the valuable insights of this study came from structured observation of customers
shopping and also the visual merchandising efforts at these retail outlets. Some of the
observation was done by following passengers discreetly to see how many of them stopped
at the promotional areas in a store to get an idea about the effectiveness of VM
implementations.
The most surprising addition to this study is the involvement of social media like Orkut. A
request was put up on communities dedicated to visual merchandising. separate mails were
also sent to the members of these communities seeking experience surveys. Two visual
merchandisers took active interest in this study and gave interviews over telephone. One of
them also sent literature that aided in secondary research. It threw light on some of the
difficult questions whose answers kept evading us.
4.1 DEPTH INTERVIEWS
Depth interview with key informants like floor ma nagers and visual merchandising manager
was done. The respondents were:

1.Ms. Sujatha (Visual Merchandising Manager, Big

Bazaar, Coimbatore)
(Transcript available in Appendix 1.0)
2.Mr. Shiju . S( Floor Manager, Luggage and Footwear
Department, Big Bazaar, Palakakd)
3.Mr. Rajesh (Floor Manager, Apparel Section, Fashion at
Big Bazaar, Palakkad)
Although a set of questions were prepared for the interview, the amicable nature of the
respondents prompted to have a dialogue rather than a Q&A session. The respondents took
us around the floors and briefed us on the VM efforts implemented at various points and
also the need for them . the conversation however provided answers to specific questions
that were drafted.
Key Findings
 All the respondents felt that VM contributed to increased sales. They feel that a
good VM attracts people even though the product may not have been on their list.
The bins kept at various locations in Big Bazaar is just a way to add to the sales by
making people feel that a heap is associated with what a crowd would buy.
 VM comes into picture also when some product is not selling enough. This is an
indicator for in-store promotions in the form of displays.
 The ambience of the store matters, when customers walk into the store , VM efforts
must touch their senses. This is done at the level of 5 sense organs. The drop downs
from the ceilings and the wall drops etc create an ambience of some event
happening.

4.2 OBSERVATIONAL RESEARCH
Observing customers during their shopping at the store gave us some wonderful insights.
BIG BAZAAR (Coimbatore and Palakkad)
 As already proven by research, People turned left on

entering the store although there were merchandise
on the right. The Big Bazaar Coimbatore had a ladies
cosmetics division on the right, but customers could
not have cared less. They just veered left, passed the
Mobile Junction without stopping and proceeded
into the store to the area where the first shelf talker
said “Deo Rs. 79”
 Customers do not mind bending or stooping to look for new products. We observed
that a lot of customers picked up things from lower shelves
 Big Bazaar places new products in the lowest rack in addition to the top ones
contrary to other retail stores. Retail outlets like Nilgiris never keep new products on
their lowest rack. It is used only to keep the extra stock of already available products
 Almost all the customers who shopped during our presence at the store bought
plastic items that included buckets, cups, hangers etc
NILGIRIS (Coimbatore, Palakkad)
 Nilgiris is a single floor department store.

 The entrance had magazines and chocolates and the right side had cakes, pastries
and chocolates.
 The location of the store is strategically selected to be in RS Puram, which is a posh
neighbourhood with upper middle class dwellings. Same is the case with Nilgiris
outlet in Palghat, at Chandranagar.
 The Focal point was a pavilion of Swarovski crystals in front of opening window
 Nilgiris have also done some kind of Bin Management. Some non branded items kept
at the entrance BIN MANAGEMENT (non branded items fetch max profit for the
store).

 The stationary department had a gondola, which was a big pen stand (in shape of
pen)
 In addition to this, there were gondolas of Lakme, Revlon and Cadbury. Himalaya had
a space near the right of the counter.
 Plastics and sanitary kept at the end of the store , which are priced by Nilgiris
themselves. They derive the maximum margin out of the sales of these items.
Contrary to Big Bazaar, no new products were kept bottommost rack.
 Dairy products had a separate section which was spotlighted.
 What appeals about Nilgiris is that there is a logical flow in the arrangement. This is
decided by Head office at Mylapore, Chennai
 The food section was flooded with yellow lighting
RELIANCE FRESH (NSR Road Coimbatore)
 Reliance fresh had very little VM done

 The store is located in Sai Baba colony right in front of Aditya Birla’s More.
 The entrance was crowded with the farm products, for which reliance is famous. The
store housed a wide variety of groceries, fruits and farm products. However the
assortment was not done well. Very little sales assistance was available to
customers. The lighting of the store was not adequate.
 The 2nd floor consisted mainly of plastic, rubber, gifts and other miscellaneous items.
There were no salesmen at this floor to aid cutomers. What meets a customer in the
eye on reaching this floor is a rack of Outlook Magazine. However wallets were
arranged in place of Outlook magazine
 While walking amidst plastic in the 2nd floor, out of the blue a section of food items
pops up, with noodles, jams and ketchups . This would puzzle a customer.
 Although the store was filled and had a lot of scope for VM, it did not look as though
it was implemented.
More (NSR Road, Coimbatore)
 Contrary to their next door neighbour, More was smaller (small size departmental
store).

 The VM efforts in the store are quite evident. The products are arranged in a great
fashion and quite logically.
 Customer who enters the store is guided by the store itself and almost every
customer sees what is in the store at least once.
 The shop Is properly lighted and the shopping conditions are superior. There are a
good number of sales people assisting every customer.
 New products are also kept in the lowest rack
 They maintain their uniform colour theme (orange base)
 They have placed a hut outside the store which has assortment of all grocery items o
attract customers in the road.
 More has thus shown that size of the store does not really matter when it comes to
visual merchandising and assortment planning.
4.3 IMPACT OF SOCIAL MEDIA
To explore the presence of visual merchandising in social media, a search was made in
Orkut, the social networking site of Google. Orkut was one of the pioneers of social media
revolution. The days of waiting for the 100th or 1000th scrap is still fresh in memories, and
the joy of having a testimonial all for oneself is one of its kind!
A key word of “Visual Merchandising” yielded a

handful of communities (Groups of likeminded
people join communities in Orkut). These were
communities dedicated to visual merchandising and
served as a forum for experts to share latest news
and views with their counterparts in rest of the nation. Vacancies for VM jobs were also
advertised on these pages. These communities had hundreds of members; some had not
revealed e-mail addresses in their profiles. However users can post event in these
communities. An event was posted in the forum seeking for help with this project and what
followed was some of the most wonderful moments in the making of this study!

The link to the online survey was also posted on communities dedicated to Retail, Big
Bazaar, Nilgiris, Big Bazaar Trivandrum etc. Some of the members who frequented these
communities made visits to the survey link and participated in the study. Responses were
received from 4 professionals from various areas of Visual Merchandising. A set of questions
regarding VM was mailed to them prior to telephonic interview. (Refer Appendix 4 & 5).
QUESTIONS MAILED
 Could you tell us what would be a regular day at work for a VM?
 What are the most commonly used VM in the industry that you are in?
 What are the new trends in this area?
 Do you feel VM helps in increasing sales?
 What are the challenges in VM?
 How do you get to know about new trends, is India at par with the VM efforts
elsewhere on globe?
4.4 DESCRIPTIVE RESEARCH
Methodology Used
A questionnaire which asks the ‘right’ questions was circulated among customers who
walked out of the stores of Relaince Fresh, Nilgiris, Big Bazaar and More.
The survey was also posted online and respondents were asked to do the survey keeping in
mind the retail outlet they visited last. The responses of respondents were tabulated using
SPSS. The results obtained were analysed as follows and the following conclusions were
drawn.

4.5 RESULTS - DESCRIPTIVE RESEARCH
Question: 5 (To get an insight on “Are buying decisions unconscious or purely conscious”)
Method Used: Frequency Charts
Hypothesis
Buying decision are made before reaching the store
Analysis
Mostly people never carry a written list while going out for shopping. More than 60 % of the
people agree to this fact. Hence it can be concluded that most of buying decisions are made
inside the store
Hence the hypothesis is true

Question: 4 & 5 (To explore if buying choices are made before reaching the store or
thereafter, To get an insight on “Are buying decisions unconscious or purely conscious”)
Hypothesis
Buying decisions are taken inside the store
Method used: Crosstabs
Analysis
It can be seen that most of the customers do not carry a written list of items(47.2%) to be
bought which means that most of the buying decisions are made inside the store. Thus a
good product coupled with good visual merchandising will have a greater impact on
consumer buying behaviour.

Question: 4
Hypothesis
Customers visit stores to fulfill their needs
Method used: Frequency
Analysis
It can be seen that 72.4 % of the sample comes to a store only when there is a need.

Question: 4, 11, 12
Hypothesis
Customers only confine shopping to their needs
Method used: Frequency
Analysis
It can be seen that 62% of people buy more than what they need and more than 92% of
people buy more than what they have written it down on a list. They have also bought more
due to the reason that either it was a good product or it was a good discount. Attractive
display also played a major role in this. Thus customers mostly do not confine to their needs
and generally buy more than what they need
Hence the hypothesis is not true

Question: 1, 6 (To analyze whether customers actively seek for new products at a retail
store)
Hypothesis
Frequently visiting customers actively seek new products

Analysis
It can be seen that customers who visit the store regularly are the people who actively seek
for new products. 70 % of population visit these stores at least once a month. New
products generally have an enhanced VM. Hence VM targets such population

Question: 8 & 9 (To explore the impact of layout in a retail store on customer buying
behaviour)
Hypothesis
VM inside the store traps customers to follow layout plan

Analysis
It can be inferred from the graph that about 40% of the customers feel that they don’t have
any particular direction, they follow the stores path. Also around 60% of customers agree to
the fact they follow signage board to find the product. This clearly gives an indicator of VM
as a leading indicator for product sales.

Question: 7, 10 & Gender

Which gender is attracted the most by VM

Analysis:
From the above analysis it can be seen that males are the most affected by VM. This can be
said from the two bar charts where 34% of males are the ones who mostly see the signage
board and the product layout and they also agree to the fact that they get attracted to it.
While only 22.9 % of females pay attention to the signage boards.

Question- 4 & Age
Whether there is any correlation between different age group with VM.
Method used: Cross-tab.

Analysis
From this cross tabulation we cannot conclude the correlation, however we can conclude
with some certainty that age group of 16-21 are not interested in checking out new
products. The most relevant people who come to the store are of the age group 22- 28. They
usually come to buy what they need and they also are interested in looking out for new
offers. So it can be said that this age group is the most influenced by VM and product layout.

Question 13
Hypothesis
VM plays a major role in internalising the image of the product in the store
Method used: Projective question asked outside the store
Analysis
62% of the sample recalls the product displayed by VM. This can lead to the conclusion that
good product coupled with a good VM will enable the customers not only to buy the product
but also internalise the brand image of it.

Question – Occupation and 11 (To explore the impact of visual merchandising on the buying
decisions of customers in a retail store)
Method Used: Crosstabs

Analysis
Most of the shopping is done by professionals who are educated. Moreover they are the ones
who end up in buying more than what they need (52.7%). Hence it must be ensured that of the
entire layout, VM should be emphasised

Question: Occupation and 3

Whether there is any correlation between occupation and the role played in shopping
Method used: Cross tabs
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
What is your role in 174 98.9% 2 1.1% 176 100.0%

shopping * occupation
Analysis:
It can be inferred that professionals do

most of the shopping (50%). Hence there
is a definite correlation between the
occupation and the role that people play
in shopping.

Question: 7
Hypothesis
VM has no impact on consumer buying behaviour of the customer in a retail store.
Method used: One sample T- Statistic
Analysis
T-Statistic is 29.548 at 95% confidence interval. On that CI, T-Critical is 1.645, so clearly T-
Statistic > T-Critical, Hence the hypothesis is rejected. So we can say that the hypothesis is
strongly rejected i.e. VM has a great impact on consumer buying behaviour
Hence the hypothesis is not true

CHAPTER 5: RECOMMENDATIONS
RECOMMENDATIONS FOR NILGIRI’S, COIMBATORE
 At the entrance there are the billing counters facing backwards which blocks the
view of all the merchandise of the store for the visitors and the customers of the
Chowatty store just outside the entrance. The unpacked cardboards are littered
most of the time immediately near the entrance along the glass windows. One of our
recommendations is to make use of the glass window at the entrance to display their
attractive products. A few posters or flex at the entrance would also serve a good
purpose to convert the passersby on the road and visitors in of Subway just beneath
the store at Coimbatore to visitors of Nilgiris.
 Another recommendation would be to change the direction of the billing counter.

Instead of billing staffs facing backwards at the billing counter at the entrance. This
can also give more visibility, to the people outside about the customers inside the
store, which in turn attracts more customers to the store from outside.
 As per the code books of typical store designs the entrance of a store should not
have any merchandise kept up to 30 ft from the entrance as the customers on
entering will just take some time to absorb the layout of the store. In Nilgiris, the
store looked crowded at the entrance which can be avoided by replacing at least one
of the billing counters near the entrance.
 The visual merchandising which was used to promote their offers or products was
confined to only gondolas, shelf talkers and very few signages. They can try
increasing the number of signage in the store which according to our study also plays
an important role in attracting the customers. Posters or cut outs can also serve the
same purpose.
 Through observation study it came into our notice that most of the customers who
hit the store are upper middle class or above who come in luxury cars. These are
people who seek luxury. A lounge with a set of magazines can be provided at the left

corner of the entrance which cannot be utilized by the store for any displays because
of its very low visibility. An arrangement like this can attract the shoppers or the
people who accompany the shoppers who wish to take weight off their feet. An
arrangement of visual merchandising around this place can be effective.
RECOMMENDATIONS FOR BIG BAZAAR, PALAKKAD
 Big Bazaar strikes a good balance between visual merchandising and lay out to allow
customers to have a good shopping experience. Suggestions for Big Bazaar would be
very few, but will ceratnly add some value to the store
 There are repetitions of shelves for cooldrinks. The chilled ones are kept in chill zone
and the unchilled ones are kept in another shelf between the aisles which houses
sugar free items, Horlicks, Tang etc. Keeping the unchilled cooldrinks near the chill
zone will help customers who don’t want chilled ones.
 The apparel section for kids can be a little more organized. Big Bazaar Coimbatore
had done a good job in this regard. Also, the stuffed toys section can be kept near
that of kids sections to attract them as implemented in Big Bazaar, Coimbatore
 The shubh Muhurat displays can be made more attractive by making them theme
based and employing the use of some props. Backdrops can also create some good
effects in this region.
 There is clutter near the staircase (if customers decide to take the stairs) which is the
first thing a customer sees on using the stairs.
RECOMMENDATIONS FOR RELIANCE FRESH, COIMBATORE
 Improve the customer service significantly.
 The amount of VM is very low, significant changes have to be made in this upfront.

 Low sales force: Customers complain of bad customer service. This can be evident
from the fact that there were just two sales persons in the entire store out of which
one was in the cash counter.
 The cash counter is just placed on the right side very close to the entrance. This
encourages the customer to leave the store as soon as they arrive. They are not
given a chance to explore the entire store. The position of the cash counter should
be changed.
 Improper lightings: Pickles are kept in a corner where there are no lights. Half of the
store was under lighted. This should change immediately as the customer is
encouraged by proper lights
 Improper product assortment: The ground floor consists of many food products.
1nd floor has mainly plastics, rubber items and clothes. However a huge section of
food products appears on this floor as well.
RECOMMENDATIONS FOR BIG BAZAAR, COIMBATORE
 Have excellent Visual merchandising implemented
 The only recommendation is that to decrease the size of the aisle of the luggage.
There are more luggage kept than required.
RECOMMENDATIONS TO RELIANCE FRESH MADURAI
 Lightings –Poor: They have provided a separate gondola and wall mounted racks for shirt
and jeans, which was placed in a very dark place. They can place spot lights, so that
customers can at least view them. They can provide sodium lights for fruits and
vegetables, as it looks more attractive than the ordinary lights. Throughout the store,
only ordinary lights were provided.

 Aisle was medium in the biscuits and snacks, and plastics section. Around 4 to 6 feet wide
aisles can be provided, as people crowd in that section more than in others.
 The billing counters are placed at the entrance, which makes the entrance very crowded
and people find hard to cross the entrance. To check the bills after customers purchase,
only one guard is present at the entrance, this adds further crowd. To avoid this problem
they can provide exit at the other end of the floor as the shop is placed at the corner.
Another guard can be appointed during the peak hours to check the bills as it can reduce
crowding at the exit.
 All the offer pamphlets are placed at the entrance of the store and people stay there for
a while before they purchase. The pamphlets are not displayed properly, they are
congested and people get confused. They can instead provide offer boards for all those
products in that section, at the entrance of that section aisle also.
 The main advantage for Reliance Fresh is that, they provide many exciting offers between
8pm and 9 pm daily. But it also has a disadvantage; these offers aren’t announced
through loud speakers. Instead customers have to ask the sales person every time. They
can announce these offers through speakers.
 Recommendations to Spencer’s daily Madurai
 The entrance and exit are same. They can provide exit at another end or divide the
entrance and exit with any divider.
 They have provided SAVE THIS MONTH offer pamphlets, which are provided at the
entrance. This can be provided inside the store also.

ON A FURTHER NOTE
It evolved out of our study that although
the importance of VM is growing, there
are no real metrics for measuring its
effectiveness. The judges who evaluated
our presentations also agreed to this fact.
As Ms. Mallika who has 4.5 years of
experience in retail noted, “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”
We 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.
Although this would be difficult in terms of implementation, we can go by the folklore that
says , “Something is better than nothing”

CITATIONS
[1]
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=1425&Item
id=302
[2]
Lindstrom, Martin (2008). BUY.ology How everything we believe about why we buy is
wrong, London: The Random House Group Limited
[3]
Arora ,V.P.S., Sharma, Shivani, and K. Singh, Nirdesh. (2007). Nature and Functioning of
Visual Merchandising in Organized Food Retailing. Retrieved March 11, 2010, from
Ageconsearch
http://ageconsearch.umn.edu/bitstream/47438/2/3-VPS-Arora
[4]
Electronic References: Electronic Media and URLs (2003). Retrieved March 10, 2010,
from Retail Franchise India online, Retailfranchiseindia website:
http://retail.franchiseindia.com/articles/Retail-Store-Operations/VM-and-Design/Sensory-
experience-must-in-retail-design-163/
[5]
from Digital Signage Expo online, Digitalsignageexpo website:
http://www.digitalsignageexpo.net/DNNArticleMaster/DNNArticleView/tabid/78/smid/104
1/ArticleID/1688/reftab/243/t/The-Impact-of-Digital-Signage-on-In-Store-Decision-
Making/Default.aspx
[6]
from Scribd online, Scribd website:
http://www.scribd.com/doc/17926288/Role-of-Visual-Final

APPENDIX 1: DEPTH INTERVIEW – VM MANAGER

Depth Interview
Ms. Sujatha, Visual Merchandising Manager

Big Bazaar, Coimbatore
People say, “When you learn, learn from the best”. And what better place can one find to
learn about visual merchandising (VM) in retail stores than at Big Bazaar! Ms. Sujatha is the
Visual Merchandising Manager of Big Bazaar, Coimbatore. All those mannequins, floor
stickers, headers and drop downs are in place due to the hard work and enthusiasm of this
eminent woman.
Ms. Sujatha responds to the questions posed to her regarding VM
Q. Who decides the where and how to display merchandise?

A. For each product there is something called SOP(Standard operating Procedure) which is
designed at the Head Office (HO) in Mumbai. The layout, display ambience, lights, visuals
etc are the same across stores all over India and are standardized. The HO gives us these
instructions.
Q. We see a lot of brands specific to Big Bazaar, like Koryo for Electronics, AFL Jeans,
Matrix Jeans...What are these?
A. These are called SIS(Shop inShop) alliances. Big Bazaar has several of these, AFL, Matrix,
Knitwood, Koryo, Tasty Treat, Srishti and many more. These make up a major share of our
in- store promotion.
Q. How are the VM efforts co-ordinated?

A. At every floor or at every merchandising counter there is something called as Focal point
which is a strategic location on that particular section. Always the best merchandise is kept
at the focal point.
The focal point often correlates to the positioning of the products and also the segment
they cater to. Mannequins, printed banners etc are examples of VM focal points. Some

products sell less and need a push, these are products which are laggard are concentrated in
these focal points to increase their sales.
The store also has some Promo Areas (Promotional areas) and Window Areas intended only
for promotion and not sales. VM plays a major role here. The Coimbatore Big Bazaar does
not have a window area, but we have a number of promo areas in each section.
At the entrance you might have seen mannequins of different kinds of clothing, it is a
promo area. The Apparel Section also has a lot of promo areas. You can see Asin in
beautifully clad kurtis and saree, we have huge wall drops of Asin and Dhoni at the promo
areas in Apparel Section.
In Furniture section you can see artificial living rooms and bed rooms that we have created.
This kind of visual merchandising helps the customer to visualise how the piece of furniture
will look when arranged at home.
Q. What is the role of lay out in VM?

A. Every floor has something called a Circulation Plan. In short the VM people decide how
people should enter and leave the store. The layout in the store and arrangement of
products is in such a way that every customer who enters the store sees all the merchandise
in the store at least once. We try to achieve this goal. As you know, there are five sense
organs for every human being. We try to influence at least one of them every time the
customer is anywhere in the store.VM takes care of the eye part of it.
The Chowpatty (food court) is consciously kept at the top floor so that customers walk
between various aisles and when finally reach the food court are welcomed by aromas of
various dishes. The ambience of food fort is aided by the ads on the walls. The menu is
plastered on the wall, in a floor to ceiling manner with pictures that make customers want
to try out, although Big Bazaar is not a lunch destination. This aids impulse buying even in
food!
The Food Bazaar is kept at ground floor as this is the most sought after section. Merchandise
moves very fast from food bazaar and needs constant replenishment also.

Q. What purpose do these Bins serve?

A. The layout is designed in such a way that even if the number of people in the store is few,
the store will look crowded. This is done by VM, the promo areas, bins kept heaped with
merchandise at various locations in the store etc are the keys to this .Indians like buying
things from crowded places, as they believe fast moving goods are of good quality and that
is why people crowd for them. This motivates them to buy when there is crowd surrounding
merchandise.
Q. How often does the layout of the store change?

A. Layout changes are not frequently unless some product is afflicted by low sales or low
visibility. Some layout changes also occur as a result of new arrivals.
Q. Big Bazaar has Wednesday Bazaars for weekly discounts. Why Wednesday s?
A. Wednesday is chosen as the day for giving weekly discounts as it falls in middle of the
week. Big Bazaar has introduced a Wednesday Bazaar concept called “Hafte Ka Sabse Sasta
Din”. Everyone knows that in weekend the sales are the highest. Hence there should be
some stimulus to boost the sales during the week and hence Wednesday offers are given.
The offers include 50% off on most items Solid surprises on food items - Every Wednesday.
The aim is to give homemakers the power to save the most. The stores don a fresh look to
make customers feel that it is their day. The wednesday Bazaar also offers clothes,
accessories and fashion jewellery and personal care products.

APPENDIX 2: DEPTH INTERVIEW – FLOOR MANAGER 1
Mr. Shiju, Floor Manager, Luggage and Footwear

Big Bazaar, Palakkad
True answers come to the right question from people who are close to the action. We
stumbled upon Mr. Shiju amidst our Foray Between the Shopping Aisle., the keen, observant
floor manager of Luggage and Footwear department of Big Bazaar, Palaghat.
Mr. Shiju answers some questions pertaining to Visual Merchandising at Big Bazaar
Q. How often does the floor undergo a layout change?

A. There is no need to change the way of display as long as customers ask for a certain
product. If no one is asking or rather buying, that is where the visual merchandising can
help. When we feel there is a problem and see a dip in sales, we change layout. If it is a shift
in floors, like it is happening now (The Apparel section will come down to where the
Luggage and Footwear section is) the decision comes from Mumbai. There would have been
some common indicators that initiated this change.
Some products which sell less are put in front at a prominent space in the store to promote
it and thus aid in its selling. The overall arrangement at the footwear and luggage section
follows a pattern. We arrange the products according to price. The shoes/ trolleys with
lowest MRP are thus placed at the entrance. This helps to make customers think about
buying, although the trolley or shoe might not have been on the shopping list. A good VM is
essential for this section as these items are sought only by customers when they are in need
for it
Q. How do you think layout complements VM efforts?

A. The layout is also designed in a way so as to help customers to enjoy a spacious shopping.
The width of aisles are 1.25 feet. Lighting also plays an important role. Spotlights are used to
attract customers to fancy footwear. Otherwise white fluorescent tube lights are used in the
store. Thus layout also becomes a part and parcel of VM.

Q. What drives these VM efforts?

A. The two major ways to attract customers are offers and display. Big Bazaar believes that
good product coupled with good offers and apt display will sell more. A look around the
store will bring some items into quick notice. Over days these items keep changing.Thus
attractive offers and display are the key to customer’s heart.
Q. What are the major ways in which VM is done in this store?

A. There are several VM aids in store. A few are:
Shelf Talkers: “AFL Jeans, MRP RS 299, Offer Price: RS239” These strips of papaer which are
inserted in transparent slots of the shelves are the major medium in Big Bazaar for
conveying their offers.
Signage: Signage are posted at each section which communicate the offers or new arrivals.
The Exchange signage which promotes the exchange mela would be on till the 4th of April
Drop Downs: The A4 sized cardboards with exchange mela written across them hang from
the ceilings of each floor. These promote the specific offer of the season (as of now the
“Exchange Mela”) There are numerous of these in the store. These drop downs are used just
to make customers feel something is happening. It is akin to the decorations we do at
temples, just to create an ambience.
Flooring Stickers: Stickers are stuck onto floors especially during Onam in Kerala. The
colourful stickers portraying flower carpets would aid in creating an celebration mood
among the shoppers.
Movable Wall Drops: These are lookalike of pillars that are omnipresent at Big Bazaar. Asin
sporting sarees and Kurtis, Dhoni wearing DJ&C T-Shirts welcome shoppers amidst their
search between the aisles.
Q. How often does the VM change?

A. The VM changes centrally with new offers and seasons. For instance Big Bazaar is known
for “Killing Offers”. Sometimes, selected products are sold at half rate or even less for about
an hour or so. These offers will definitely attract customers who are within the store. Some

of them even communicate to their friends using mobiles. This in turn increases the walk ins
of a day. So we have to make the ambience look as if something is happening! So is the case
with Big Days, which are one of the pioneering inventions of Future Groups. Future
recognized that some months of the calendar do not have any festivals, in short no scope
for mega shopping. Thus, they started Big Days for Independence, Republic and May Days to
attract holiday crowd with killing offers lasting for 5 days. Customers queue up and this at
times even extends outside the store as they wait to gain entry.
Shiju observes that Big Bazaar caters more to homemakers, who can do shopping for the
entire family when they visit the store.It is keeping them on mind that offers, layout and
display are done.

APPENDIX 3: DEPTH INTERVIEW – FLOOR MANAGER 2
Mr. Rajesh, Floor Manager

Apparel Section (Fashion@Big Bazaar)
Q) How are the VM desicons made at Fashion@Big Bazaar?

A. The most visually merchandised section of Big Bazaar is the Apparel Section. Recently Big
Bazaar has adopted the Merchandising Presentation Manual to visually merchandise the
products. Contrary to the footwear section where the arrangement is based on lowest priced
item near the entrance, the App section puts “Fashion at First”.According to MPM, Big
Bazaar’s apparel section has altered its arrangement of jeans according to size, color and
pattern.
Q) What are the different methods of VM used in this section?

Shubh Muhurat: This is one of the major attractions on the App Floor. Sporting a ramp with
fashionably clad and decorated mannequins , Shubh Muhurat woos customers. The Shubh
Muhurat sported an attractive summer collection which definitely caught some eyeballs.
Color Blocking: Color blocking is done for a better look. From Left to Right on the floor,
apparels are arranged in the order of colors (White –Cream-Yellow-Green-Blue-Pink-
Maroon-Red-Black)
Bin Management: The Bins that are kept throughout the store house some products merely
for aiding impulse buying. The Bins are a sheer way to increase sales and go by the principle,
the more the customers see, the more they buy.
The Electronics section also has employed some visual merchandising of its own. Koryo, the
electronics brand promoted by Big Bazaar was celebrating summer with backdrops of ice
capped mountains and penguins. A huge flex said at the footwear section:
“Temperature today at footwear section,300C.
Temperature at Electronics Section 160C.”
Instead of arranging cots, sofas and Television stands, the floor had them arranged in a
similar set up as found in real homes.

APPENDIX 4: DEPTH INTERVIEW – RETAIL STORE DESIGNER

ROLE OF SOCIAL MEDIA IN VISUAL MERCHANDISING
TELEPHONIC INTERVIEW
MR. ANUPAM GOYAL
Interior Designer, Mumbai
Anupam Goyal is a young interior

designer based at Mumbai who
specialises in designing retail stores. This
designer, who is also an MBA has
designed nearly 100 stores in the last 2
years. In his free time, he delivers guest
lecturers to designing students in
Mumbai. Anupam has designed stores for Nautica, Zaara, Pocket etc. Pocket is a multi
Branded Outlet (MBO) renowned for 62 international brands in Apparels, Footwear and
Accessories like CK, Greg Norman, Nautica, Gap, Puma, Van Heusen, Pull and Bear, Austin
Reed, Nike, Reebok etc.
This enthusiastic designer was full of words when he spoke of Visual merchandising. He
believes in creating an identity for every store, which will find a place in the minds of
customers.
Q. Could you tell us what would be a regular day at work for a VM?
A. A visual merchandiser is involved in creating an identity for a store. This will not include
just mannequins, bins and aisles. It involves a lot of little things that make up the store. The
3 preliminary things that I feel makes up the identity of a store are its,
Ambience: How appealing is the store to customers is decided by the ambience of the
store. It will include the furniture fit outs and lighting. These things change as per the

display. As he specialised in apparels, he talked about mannequins, spotlights and window

displays.
Fragrance: The store must have a constant fragrance. The air fresheners or cooler perfumes
must not be changed as when liked.
Music: The choice of right music for the store is of great importance. Once customers walk
in, they should feel that the store is friendly. Once this is done, they would not even look for
a sales person. Music in store plays a role in this. I change music according to crowd in the
stores that I design and manage. In stores of international brands, which is frequented by
youth, romantic numbers and soft music is played. On weekends, by evening it’s an air of
romance in my stores. On week days I play some soft music. Friday evenings are dedicated
to rock.
In addition to this, I manage a log book near the billing counter which collects data about
customers. It is very important to know all about your customer, so that you can change
according to their tastes. In this log book, a customer tells about what he felt when he
walked into the store.
In-Store Branding: This includes managing posters and banners inside the store, shelf
talkers, sectional signages etc. The store’s logo and theme has to be maintained well .
Managing these will directly help customers in their purchase. This is the responsibility of a
VM
A VM is also responsible for changing the stacking, hanging, mannequins etc. The stacks
should be reshuffled. This should be done periodically to make the store look fresh. No
customer will walk into a store that looks stale and has the same display for a long time.
Q. What are the new VM trends in the apparel industry?

A. It primarily depends on what kind of apparel you are displaying. Denims are stuffed with
polythene bags to resemble a mannequin. I had designed a store in Goa, where I tied up a
hammock at the window area and put a denim clad mannequin in it. It was well
appreciated.

These days casuals can be

seen rolled up and tied to
give them a rough look. The
new Levis store has used a
theme of red and black. It is
very dark inside, dark shades
all over. But they have used
yellow spotlights to display jeans. Big brands like Levis and Spykar can afford to do this as
customers know the quality associated with the brand and might not even care if the
lighting is not adequate. Levis is soon coming out with a new red and black format with red
lights to make the store appealing to the youth as the store would give the ambience of a
pub with its red lighting!
I had designed a saree store in Mumbai which sold sarees with a beginning price point of
INR25,000. I had left the flooring cemented, roughly and did not polish or lay tiles on it. The
walls of the store had an uneven coating of white cement, and had rough surface. The
ceilings were dark. I used spotlights to display the merchandise and put mannequins under
spotlights. This idea was well received and the store won an award for its interiors. It’s
about thinking and doing different.
Themes are among the commonest things. If you are creating a display for sportswear, you
might want a water bottle nearby, a basket ball etc. It will be great to use the ceiling area
above the display as well.
Displaying near the glass windows are becoming increasingly popular as this lets customer
see what is inside.
Q. Do you thing VM adds to sales?

A. 60% of the footfalls in a store depend on VM. Good VM makes people want to enter the
store. That with a friendly feeling would make customers buy.

Q. Is VM in India at par with that in countries across the globe?

A. India has a lot of catching up to do when it comes to this. The way VM is done in Europe
is way too good. German stores are awesome when it comes to displays. I had the
opportunity to meet with some of the best ones from Germany, and I also received a month
long training from them. I learnt a lot of things during this training which I use in my store
designs now.
Q. What are the challenges that VM faces?

A. A lot depends on the mindset of people. I came to Mumbai as an Interior designer. I later
became an expert in residential and commercial kitchens. I still think I design good kitchens,
as women love the ones I design. Later I got a project on retail, on contract basis for an
unbranded store. I enjoyed what I did although I was not trained in VM. I then started
learning from all available sources, attended training and also travelled around the world
and looked at stores. Getting business was not easy, it was difficult to take people into
confidence. I promised them that I would give back their money if the design did not pay off.
Thank god it did!

APPENDIX 5: DEPTH INTERVIEW – ASST. VM MANAGER

TELEPHONIC INTERVIEW
MR. MOHIT SAXENA
Asst. Manager, Visual Merchandising
VF Arvind, Bangalore
Mohit Saxena is a graduate from National Institute of

Fashion Technology. He works in Visual Merchandising with VF Arvind and is based at
Bangalore. He is responsible for co-
ordinating VM efforts across 70 stores
in the South and West region. Arvind
Brands Ltd. which was a wholly owned
subsidiary of Arvind Mills Ltd. has
formed a joint venture with US based
VF Corporation for marketing various
brands owned by the US firm in India.
The existing business including intellectual assets and licenses from VF for Lee, Wrangler,
Nautica, Jansport, Kipling, Lee Youth, Hero by Wrangler, Riders by the makers of Lee brands
, which was held by Arvind Fashions Ltd, has now been transferred to the new company.
Q. Tell us about how important is visual merchandising in apparel industry?

A. Let me begin with a return question. If there are two stores, one which has attractively
displayed merchandise and a neighbouring one which looks normal and unattractive which
one would you go to? Naturally, the first one. Visual merchandising gives richness to the
merchandise and makes it exclusive. When products are kept randomly, it resembles a
wardrobe. Who wants to buy at a wardrobe?

Q. How exactly do you go about with the VM activities across the 70 stores that you
manage?
A. I am based at Bangalore. So on a weekly basis I go the stores in Bangalore, arrange the
brands in a specific manner. Be it folding, stacking or grouping I click photographs of these
arrangements and mail it to the VM co-ordinators in the other stores. They implement the
design, click photographs of the implementation and mail it back to me. In addition to this, I
might drop in at some of the stores in other locations and conduct quick surprise visits, to
ensure that everything is in order. Changing the displays according to seasons is also an
important thing to be done. These things happen every week.
Q. Can you tell us about some new trends in the area of VM with respect to apparel
industry?
A. VM in India is relatively new. About 6 years back no one even knew about VM. But they
are looking at it now. In this context window displays, signage, theme displays etc are
relatively new in India.
But they have been
prevalent for quite long
abroad. For instance,
displaying merchandise in
a neat way is the in thing.
But in Europe it is
ruggedness that is new.
Rolling casuals, hanging
the merchandise
asymmetrically etc which
are hot trends abroad are
just in their infancy in
India. United Colours of Benetton is doing an unmatchable job in this regard when it comes
to India This is because they have more VM staff than anyone else

Q. What do you feel are the challenges for VM in India?

A. The problem is that there are no clear metrics available to
see the impact of VM on sales. Let’s think about this
experiment in which we decide to keep a store unarranged
for some time without VM, monitor sales and then try doing
the same with VM implementation. It’s simply not possible.
But all of us know that visitors come in due to display and
then buy if the product matches their needs. But the
parameters for measuring a successful VM are few as a higher turnover could be due to
promotions, sales people, or many other things. The indicators are also pretty fuzzy.
Another challenge is the number of staff doing VM in a store. Some of the best VM-
implemented stores have more visual merchandisers than sales people. Industries have
recognized the need in India and VM is fast growing. We can soon catch up with what the
other countries are doing. There is also trouble with the posts of VM in India. In European
nations there is a coveted title of VM director, whereas in India the highest anyone can get
to be is a Head VM.

APPENDIX 6: SURVEY QUESTIONNAIRE

A study on consumer buying behaviour
Hi! Hope you enjoyed the shopping. It would be really great if you can help us (MBA
students of Amrita School of Business) in understanding a few things that would make
shopping effective and entertaining. Please help us by filling out this questionnaire and be a
part of our Marketing Research project.
Name of the Store: Location:
1. How often do you visit this store?
□ More than once in a week □ Once a week □ Once a fortnight

□ Once a month □ Very rarely □ I come when I feel like
2. With whom do you usually come shopping?
□ With parents □ With friends □ With spouse

□ With spouse and kids □ Alone
3. What is your role in shopping? (Tick the most relevant)
□ I do the shopping □ I look around

□ I look around and suggest □ I do not do anything
4. What do you feel about shopping? (Tick as many as applies)
□ To take a break □ To look for new products

□ To check for new offers □ To buy what I need
□ Others (Please Specify) __________________________________________
5. How often do you carry a written list when you go out for shopping?
□ Always □ Mostly □ Sometimes □ Rarely □ Never
6. Do you actively seek new products when you go out for shopping?
7. Does the way products are arranged or displayed attract you?
8. When I enter a store....

□ I go straight to the products which I want

□ I walk through the store as it leads me
□ I do not follow any pattern. I just walk randomly and pick up products
□ I seek the help of salesperson to navigate in the store
□ Others (Please specify) __________________________________________
9. Generally I follow the signage board and layout to find a product.
□ Strongly Agree.
□ Agree
□ Neither agree nor disagree
□ Disagree
□ Strongly Disagree
10. 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)

□ I do not pay attention to offers □ Sales People
□ Shelves and sign boards/banners □ Pamphlets
□ Loudspeakers in the store □ No offers
11. Which of these is most relevant with regard to your shopping?
□ I bought what I came to buy. Nothing More.

□ I bought a little more than what I came for.
□ I bought lot more than what I came for.
□ I bought everything that attracted me.
□ I did not find what I needed. So I did not buy anything.
12. 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)
□ Good Product
□ Good Discount Offer
□ Attractive display of the product
□ Information provided by salesperson
□ No specific reason, I just bought because I liked the Product
□ I did not buy anything out of list
13. Can you recall one product which was prominently promoted in the store,
Please specify _________________________________________

Personal Information:
Gender : Male / Female Age :
Occupation : Education :
Thanks for spending your valuable time. Your response means a lot to us 

APPENDIX 7: CODE BOOK

A study on consumer buying behaviour
Name of the Store(store.name): Missing – 9 Question.ID:
Location(location): Missing - 9
1. How often do you visit this store?

□ More than once in a week (1)
□ Once a week (2)
□ Once a fortnight (3)
□ Once a month(4)
□ Very rarely(5)
□ I come when I feel like(6)
Missing - 9
Ordinal
Variable - frequency
2. With whom do you usually come shopping?
□ With parents(1)
□ With friends(2)
□ With spouse(3)
□ With spouse and kids(4)
□ Alone(5)
Missing - 9
Nominal
Variable – accompany to shopping.
3. What is your role in shopping? (Tick the most relevant)

□ I do the shopping(1)
□ I look around(2)
□ I look around and suggest (3)
□ I do not do anything(4)
Missing – 9
Nominal
Variable – shopping role
4. What do you feel about shopping? (Tick as many as applies)

□ To take a break (Shop4break) (0=No,1=Yes,9=Missing)
□ To look for new products (shop4newprod) (0=No,1=Yes,9=Missing)
□ To check for new offers (shop4newoffer) (0=No,1=Yes,9=Missing)
□ To buy what I need (shop4need) (0=No,1=Yes,9=Missing)
(0=No,1=Yes,9=Missing)
Nominal
5. How often do you carry a written list when you go out for shopping?
□ Always (1)
□ Mostly(2)
□ Sometimes(3)
□ Rarely(4)
□ Never(5)
Missing 9
Interval
Variable – shopping list

6. Do you actively seek new products when you go out for shopping?
□ Always(1)
□ Mostly(2)
□ Sometimes(3)
□ Rarely(4)
□ Never(5)
Missing 9
Interval
Variable – seeking new product
7. Does the way products are arranged or displayed attract you?

□ Always(1)
□ Mostly(2)
□ Sometimes(3)
□ Rarely(4)
□ Never(5)
Missing -9
Interval
Variable – product arrangement
8. When I enter a store....

□ I go straight to the products which I want(1)
□ I walk through the store as it leads me(2)
□ I do not follow any pattern. I just walk randomly and pick up products(3)
□ I seek the help of salesperson to navigate in the store(4)
□ Others (Please specify) __________________________________________(5)
Missing -9
Nominal

Variable – enter to store
Others description (string, 0=not applicable)
9. Generally I follow the signage board and layout to find a product.

□ Strongly Agree(1)
□ Agree(2)
□ Neither agree nor disagree(3)
□ Disagree(4)
□ Strongly Disagree(5)
Missing 9
Interval
Variable – following signage
10. 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)
□ I do not pay attention to offers(1)
□ Sales People(2)
□ Shelves and sign boards/banners(3)
□ Pamphlets(4)
□ Loudspeakers in the store(5)
□ No offers(6)
Missing 9
Nominal
Variable –knowledge about offer.
11. Which of these is most relevant with regard to your shopping?

□ I bought what I came to buy. Nothing More.
□ I bought a little more than what I came for.
□ I bought lot more than what I came for.
□ I bought everything that attracted me.
□ I did not find what I needed. So I did not buy anything.

Missing 9
Nominal
Variable – shopping relevancy
12. 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)
□ Good Product (good.prod) (0=No,1=Yes,9=Missing)
□ Good Discount Offer (good.offer)(0=No,1=Yes,9=Missing)
□ Attractive display of the product (attr.disp)(0=No,1=Yes,9=Missing)
□ Information provided by salesperson (info.sp)(0=No,1=Yes,9=Missing)
(others.extr) (string)(0=No,1=Yes,9=Missing)
□ No specific reason, I just bought because I liked the Product
(no.reason)(0=No,1=Yes,9=Missing)
□ I did not buy anything out of list (no.extra)(0=No,1=Yes,9=Missing)
Nominal
13. Can you recall one product which was prominently promoted in the store,
Please specify _________________________________________
(0=No,1=Yes,9=Missing)
Product recall
String

Personal Information:
1—below 15
Gender : Male / Female Age :
2—16-21
Male-1 / Female-2 / Missing- 9 3—22-28
Gender 4—29-35
Nominal 5—36-45
6—46-60
7—above 60
Scale
Missing- 9
Education:
undergrad—1
grad—2
post grad—3
Ordinal
Missing-9
Occupation :
Student-1
Professional—2
Selfemployed—3
Home maker—4
Missing- 9
Nominal

ADIEU TO THE AISLES

Chewing the cud!
It was a tremendous experience, one akin to learning to walk

all over again. Be it waging the scorching sun to fill out
questionnaires or sleepless nights or drafting and report
making, I thoroughly enjoyed the MR bug that had gotten
into my system. Amidst the “Foray between the aisles” what
caught me off guard is the role of social media in this study.
The two expert interviews included in this study owe fully to
the social networking site, Orkut. I am amazed at how
communities of interest can aid in researches like this. In addition to this some Visual
merchandisers on Orkut took active interest and shared works done on this field with us in
the form of power point slides and PDFS. It made me look at social media with a renewed
interest and respect.
~Anitha Kaveri
Experience survey gave excellent insights of what each store

actually follows with regard to VM and how and when they
implement it. Analysis of the data was the foundation of
our conclusions and the amount of learning received from
that was immense. After all it’s the customers who are the
base of the study conducted because every VM is based
on what appeals to them.
Observation study proved to be very effective as it helped
to personally get a feel of what each of the hypothesis
was and what could be the expected conclusion.
~ Pooja Nair

I was fascinated by the study, especially the findings that evolved out of the study. The ideas
that issued out of the expert interview with Mr.
Anupam Goyal really amazed me. Being the owner of
a retail textile store, I found some of his insights were
very relevant to make shopping a wonderful
experience to customers by implementing visual
merchandising at my store. With the insights they
gave I could understand the frequency at which they
try to influence their customers. This invoked the creativity in me and one such was
displayed during the presentation we delivered.
~ Karthik Krishnan
I realised something now, by virtue of the

experience I gained out of this study. I am
used to taking my mother shopping at
various shopping malls. Every time I would
come home and recheck bills and the items. I
always found that I have bought much more
than I actually need. This happened every
time I visited a store with my mother. I always used to exclaim to my mother, why we
always end up in buying a lot more than we need. She also couldn’t figure out. This may also
be because I was working at that time and never cared how much I spent. However in my
engineering days even if I go to any kind of store, I always bought what I just need. Nothing
more, nothing less. Doing this project helped me in a way to find the culprit, Visual
Merchandising!! Now after going back I will explain this concept to my mother 
~Sankar Rajan

Modern organised retail stores were one my favourite

places to hang out. A little different from others, I enjoy
looking for products in retail stores. Given an off day, the
first place I would hit will be any organised retail store
and do window shopping. This project was of my area of
interest and also nevertheless a great learning
experience. During the course of the project, I got an
opportunity to meet Ms.Sujatha, Visual Merchandising
Manager. One of the interestin g and surprising facts from her was that any big bazaar
throughout the country is designed in such a way that the store always looks packed even if
it has 5 customers. That was the control established by a well planned layout and floor plan.
Many other insights received from experts through direct meeting as well as telephonic
interviewing made me understand that there is logic between each and every aspect of a
store and its design. The findings from the project were really fascinating and have also
made me look for an opportunity to extend the same project further as my summer
internship project. Signing off from the learning’s section of foray between the shopping
aisles.
~Subbu. C
The project gave me valuable insights about

various methods of in-store promotions. This
not only made me understand how
important these display were to customer,
but they will also give me a good foundation
for my summer internship in Marketing at
LG, as it deals with promotion. I am an avid
shopper, and always come out of the store
with empty wallets. Now I know why it
happened to me all the time. I am planning to venture into retail business sometime soon,
now I understand what I should watch out for. Visual merchandising is really an interesting
and important area for retails to concentrate.
~ Surendran

It was a nice learning experience. It gave me

the opportunity to talk to a lot of people,
conduct interviews and surveys. I learnt the
importance of visual merchandising from
Big Bazaar, Coimbatore and also realised
the importance of logical flow in the
arrangement of things. The best of my
learning comes from the observation at
Reliance Fresh and More outlets of Coimbatore. It helped me understand how important
the attitude towards customers and product assortment were when it comes to retail
outlets.
~Suman Ghosh

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FORAY BETWEEN THE SHOPPING AISLES 2010

AMRITA SCHOOL OF BUSINESS, COIMBATORE i

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page ii

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page iii

CHAPTER 1: INTRODUCTION TO PROJECT .............................................................................................. 3

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 1

APPENDIX 4: DEPTH INTERVIEW – RETAIL STORE DESIGNER ............................................................... 89

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 2

CHAPTER 1: INTRODUCTION TO PROJECT

1.1 TOUR OF THE AISLES

Shopping has transformed from necessity to an adventure. It’s more of an experience,

VISITOR SHOPPER BUYER

Figure 1: The Double Conversion

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 3

1.2 INTRODUCTION TO RETAIL INDUSTRY

Retail industry in India and its growth

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 4

1.3 REASONS FOR EMERGENCE

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 5

Figure 2: Expected Growth of retail and contribution of GDP

1.4 STATUS QUO OF RETAIL MARKET IN INDIA

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 6

Figure 3: Types of Indian Retail Sector

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 7

Types of Indian Retail Sector

 Supermarkets (Nilgiris, Kannan’s Departmental Store)

1.5 BIG PLAYERS IN INDIAN RETAIL MARKET

 Pantaloon and the Big Bazaar

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 8

Here is a brief description about each:

Figure 4: Flowchart showing Big Bazaar assortment

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 9

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 10

CHAPTER 2: RESEARCH DESIGN

Does “What” and “Where” and “How” in

What attracts customers towards

MRP 5: To get an insight on “Are buying decisions unconscious or purely conscious”

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 11

2.2 RESEARCH METHODOLOGY

Stages of research process:-

Stage 1 - Problem Definition

Stage 2 - Desk Research

Stage 3 - Research Design

Stage 4 - Field Work

Stage 5 - Analysis of Data Gathered

Figure 5 – Research Process Flow

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 12

2.3 SAMPLING PLAN

Target Population: Individuals between

Sampling Procedure: Judgement

Sample Size: 176

Sample Elements: Handpicked

Data Collection: Survey done on the

Figure 6 – Sampling Plan

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 13

2.4 DATA COLLECTION AND CLEANING

2.5 ANALYSIS PLAN

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 14

CHAPTER 3: EXPLORATORY RESEARCH–SECONDARY DATA ANALYSIS

3.1 DESK RESEARCH

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 15

Figure 7: graphical representation of the range of information carried by signage

The 70% Rule

AMRITA SCHOOL OF BUSINESS, COIMBATORE Page 16