A Study on Impact of Visual Merchandising on Sales at Big

Bazaar, Visakhapatnam

Guide/Mentor:
Mr. Mandeep Sing Hayer, Assistant Professor
Mr. Babji, Visual Merchandiser

Presented By:
K. Syam Sundar,
MBA, Q1302

Contents

Introduction
Need for the Study
Objective of the Study
Retail Industry
Company Profile
Research Methodology
Data Analysis & Interpretation
Findings & Recommendations
Conclusion

Introduction
It is the art of displaying merchandise in a store, in a manner that is

appealing to the eyes of the customer.

This helps in presenting the products/services in a way that would
convert the window shoppers into prospective customers and
ultimately buyers of the product.
Visual merchandising will include store layout, window displays,
signages, cosmetic promotions and any other sales promotions
taking place in the store.

Retailer has roughly seven seconds to capture the attention of a

passing customer.

Need For The Study

Visual merchandising today forms a critical element of retailing.

Besides the facade & windows, which are clearly done up with an objective to
attract passer-bys and induce walk-ins, there is also in-store decor that is
designed to enhance the customers comfort and convenience while
shopping & overall, offer a superior shopping experience.
Especially in todays challenging economy, people may avoid designers/
visual merchandisers because they fear unmanageable costs. But in reality,
visual merchandisers can help economize by avoiding costly mistakes.

With guidance of a professional, retailer can eliminate errors, saving time &
money.

 As the concept of large retail stores gains ground in India, the practice
and concept of Visual Merchandising is likely to grow exponentially.
In the modern retailing formats Visual Merchandizing has become

such an important element in retailing that a team effort involving the

senior management, architects, merchandising managers, buyers, the
visual merchandising director, designers, and staff is needed.
Hence, this study is chosen to realize the impact of VM in increasing
store traffic.

Objectives of The Study

To study the effectiveness of visual merchandizing with reference to
Big Bazaar, Visakhapatnam.
To study the impact of visual merchandizing on sales by conducting
a survey at Big Bazaar, Visakhapatnam.
To know visual merchandizing influence on buying decision of the
customers.
To know the various

elements that contributes to visual

merchandizing.
To find out how visual merchandising helps in dragging customers
attention.

Retail Industry
The word retail is derived from the French word retailing, meaning to
cut a piece of or to break bulk.
A retailer may be defined as a dealer or trader who sells goods in small
quantities or one who repeats or relates
In some parts of the world, the retail business is dominated by smaller
family-run or regionally-targeted stores, but this market is increasingly
being taken over by billion-dollar multinational conglomerates like WalMart and Sears
The retail industry in India is of late often being hailed as one of the
sunrise sectors in the economy.
India's strong growth fundamentals, high saving and investment rates,
fast growth in labour force and, increased consumer spending has made
it a very favourable retail destination globally.

Emerging Areas of Retailing

Apparel and Fashion
Fashion & Lifestyle
Food & Beverage
Retail
Pharmaceutical Retail
E-commerce

Retail

Organized

Unorganized

Unorganized retailers like the traditional family run stores and corner stores.
Ex: local kirana shops, owner-manned general stores, chemists, footwear
shops, apparel shops, paan and beedi (local betel leaf and tobacco)

shops, hand-cart hawkers, pavement vendors, etc

Organized retailing refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc
Ex: Corporate backed hyper markets and retail chains

Market Size of Retail Industry

Break-Up of mall space format in India

Market Break-Up of Retail Industry in India

Format
Branded Stores

Specialty Stores

Description
Exclusive showrooms either owned or franchised out by a

Complete range available for a given brand,

manufacturer.

certified product quality

Focus on a specific consumer need, carry most of the

Greater choice to the consumer, comparison

brands available

between brands is possible

Large stores having a wide variety of products, organized

Department Stores

into different departments such as clothing, house wares,

furniture, appliances, toys, etc.

Supermarkets

Discount Stores

Hyper- mart

Extremely large self-service retail outlets

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

One stop shop catering to varied/ consumer

needs.

One stop shop catering to varied consumer

needs
Low Prices

Larger than a supermarket, sometimes with a warehouse

Low prices, vast choice available including

appearance, generally located in quieter parts of the city

services such as cafeterias.

Convenience stores Small self-service formats located in crowded urban areas.

Shopping Malls

The Value Proposition

An enclosure having different formats of in-store retailers,

all under one roof.

Convenient location and extended operating

hours.
Variety of shops available to each other.

Company Profile
BIG Bazaar - Hypermarket chain

Food Bazaar - Supermarket chain

eZone - Electronics superstore

HomeTown - Home improvement

and building materials store

Central - Seamless department store

Foodhall - a premium lifestyle food destination

KBs Fairprice - Urban low-frills

neighbourhood store

Planet Sports - Sportswear retailer

Aadhar - Rural retail chain

Futurebazaar.com - Shopping portal

Big Bazaar
Retail Format
Hypermarket
Founded
2001
Headquarters
Jogeshwari, Mumbai
Industry
Retail
Promoter
Kishore Biyani
Punch line
Is se sasta aur accha kahin nahin
Vision:
We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in
the most profitable manner.

Guerilla Marketing Strategy

Future Group have come up with 3 catchy/cocky and cheeky ad
campaigns which surely do catch our eyes and surely one cant
resist appreciating the same.
Guerrilla Marketing is an advertising strategy that focuses on low-cost
unconventional marketing tactics that yield maximum results.

Keep West-aSide. Make a smart choice!

Shoppers! Stop. Make a smart choice!
Change Your Lifestyle. Make a smart choice!

Guerilla Marketing Strategy

Customer Segmentation
One stop shopping at discounted prices.
Provides Best Products at the Best Prices.
Targets price conscious majority segment of customers.
Big Bazaar targets higher and upper middle class customers.

The large and growing young working population is a preferred

customer segment.
Big Bazaar specifically targets working women and home
makers who are the primary decision makers.

Strategies
Value Pricing (EDLP Every Day Low Pricing): Big Bazaar

promises consumers the lowest available price without coupon clipping,

waiting for discount promotions, or comparison shopping.

Promotional Pricing: Big Bazaar offers financing at low interest rate.

The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used as
promotional tool. Big Bazaar also caters on Special Event Pricing
(Close to Diwali, Durga Pooja, Public Holiday).
Differentiated Pricing: Time pricing, i.e., difference in rate based on
peak and non-peak hours or days of shopping is also a pricing technique
used in Indian retail, which is aggressively used by Big Bazaar.
Bundling: Selling combo-packs and offering discount to customers.
The combo-packs add value to customer.

Visual Merchandising
Key Elements of Store Displays

Cluster
Window Display

Focal Points
Open Windows

Counter Displays

Mannequins

End Cap Displays

Signage Communication
Directional Signages

Instructional Signages
Departmental Signages
Promotional Signages

Corporate branding Signage

Price ticketing
Generic Signages

Research Methodology
Target Population: Individuals between the age group of 18 to 70

years will be chosen as the target population. The people under this
age group who are visitors and shoppers to Big Bazaar,
Visakhapatnam.
Sampling Procedure: The sampling procedure using here is simple
random sampling. Simple random sampling means each sample in
the population has equal chance to be picked up for the study.
Sample Size: A sample of 100 customers can be taken in order to

carry the study.

Sample Elements: The sample elements will consist of people who
visit and shop from Big Bazaar.

Findings & Recommendations

From the Analysis of the results, based on the objectives of the study and from
my observations in the store the following findings can be ascertained:
40 percent customers are influenced to buy more than what they came to
buy, the main reason for it is the attractive product display and good
deal/offer with the product.
45percent of the customers going straight to the products which they want.
29percent of customers walk through the store as it leads them

44percent of the customers came to know about the new product arrival
through the advertisements.
35percent of the customers came to know about the new product arrival
through the display of the product.
66percent of the samples came to know about different offers in the store
through advertisements on Newspaper, T.V etc.,

 93percent of samples feel that product arrangement in the store was

good.
75percent of samples stated visual display/presentation of products
influence their buying decision.
By effective presentation of the sign boards/drop downs and with promo
activities only 20percent people came to know about different offers in
the store.
72percent of the customers stated they purchased products other than
what they came to buy because of good product and good offers.

Only 18percent of the customers purchasing more than what they came
to buy.
42percent of customers purchasing the products instant/unplanned
buying decision because of favourable/low price of the product.
25percent of customers influence their instant/unplanned buying decision
on the factors of products arrangement and promotional signage

 Food Bazaar is the walk-in driver for the store with low margins and
adding value to the store.

Food Bazaar department is the one which is contributing significantly in

both sales and margin to the store.
Walk-ins are more on Wednesday Bazaar, Sabse Saste 3 Din, Public
Holiday

Sale,

Monthly

Savings

Bazaar,

Weekends,

Big

Day

Celebrations, Great exchange, festivals/special occasionsetc.,

Out of hundred samples 88percent of samples are satisfied with
overall shopping experience in Big Bazaar, Visakhapatnam. They used

to say that wide range of availability under the single roof made their
shopping easier and the offers they are getting in the store are
satisfying its punch line Is se sastha aur acha kahin nahi.

Suggestions
93percent of samples feel that product arrangement in the store is good,

75percent of people responded visual display/presentation of products

influence their buying decision.
It is observed that customers instant/unplanned buying decision is
influenced mainly because of favourable (low) price and good offers. It
states that Visual Merchandising should be implemented more effective
manner to attract more customers and increase the sales of the store.
In order for a good shopping experience for Customers Big Bazaar

needs to improve their ambience with suggestions regarding fragrance,

working of escalator and A.C in the store which
shopping experience.

can improve their

Additional Suggestions
Signages should be executed in a manner that should be in eye
contact/properly visible for the customers.

It is necessary to concentrate on product display and placing banners

which tells about offers particularly on the special days etc.,
Few customers are in the perception that some products price range in
Big Bazaar, Visakhapatnam is higher than the market price; there is a
need to focus on this issue.
Speed cash counters (billings of less than 10items) should be available
for the customers. So that the people need not stand for longer hours

for billing of less than 10 items and also cash counters are not being in
operation at some of the floors its leading to a problem and customers
need to wait at long queues in ground floor.

Recommendations
Setup the merchandise outside the store, this can create a sense of
excitement and buzz: consider a "Street Fair" environment, with
flags and balloons.
Customers are in a hurry. It is better to use signage to identify not
only departments but also categories -- this will help customers

pinpoint what they need and inspire additional purchases.

Merchandise that moves will catch the eye, so it is better to have
anything that moves --from clocks to toys to music boxes, take one
out and set it up.
Great merchandising appeals to more than the eyes. Consider how
store sounds, smells, and even feels.

Conclusion
It evolved out of my study that although the importance of VM is growing,
there are no real metrics for measuring its effectiveness. There is no right
or wrong as far as retailing and Visual merchandising are concerned.
There is no way to find out what worked. It is just trying out new things.
Some things work, some things do not I feel that increase in dosage 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.

Thank You