A SUMMER TRAINING REPORT

“ IMPACT OF VISUAL MERCHANDISING ON SALES AT

BIG BAZAAR MUGALSARAI”

Submitted in partial fulfillment of the requirements for the

MASTER OF BUSINESS ADMINISTRATION
Session: 2019-20
SUBMITTED TO :- DR. ANJU SINGH
SUBMITTED BY:- SIDDHARTH SRIVASTAVA

ROLL NO- 1810670101

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 DECLARATION

I hereby declare that this project report entitled “IMPACT OF VISUAL

MERCHANDISING ON SALES AT BIGBAZAAR” is a record of work carried by me

under the guidance of my guide and has not been submitted to any other university

or institute or published earlier.

I also declare that I have not revealed any sort of critical information of the organization in

my report.

And also that all the information collected from various secondary sources has been duly

acknowledge in this project report.

PLACE: Varanasi SUBMITTED BY-

SIDDHARTH SRIVASTAVA

1810670101

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 ACKNOWLEDGEMENT

To begin with , I Would like to acknowledge and extend my heartfelt gratitude to Dr.

ANJU SINGH, my internship mentor for providing me this great opportunity to work

on this report concerning on the impact of visual merchandising on sales. I am grateful to

them for guiding me and showing their best interest in helping me in preparing this

report. Without their patience, sincere guidance and suggestion. I would not have been able to

finish this report properly.

Secondly, I heartily thank all the officials of BIG BAZAAR MUGALSARAI for

supporting me as well as co-operating me as an intern in their organization.

Moreover, I am thankful to them for providing necessary and valuable information

regarding bigbazaar and also for being so kind to me. Without their help this

internship report would not have been easy to prepare. Also, I am thankful to my faculty

guide Dr. Anju Singh and my coordinator Kartikeya Singh too of my institute, for his

continued guidance and invaluable encouragement.

Siddharth Srivastava

1810670101

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 TABLE OF CONTENTS

 EXECUTIVE SUMMARY
 SECTION- A
 INDUSTRY OVERVIEW
 COMPANY PROFILE
 HISTORY OF BIGBAZAR
 FACILITIES OFFERED BY BIGBAZAR
 COMPANY INTRODUCTION
 MISSION,VISSION AND CORE VALUE

 SECTION – B
 INTRODUCTION AND BACKGROUND OF STUDY
 THE 5 SENSORY ELEMENTS
 VISUAL MERCHANDISING ELEMENTS
 PRINCIPLES OF DESIGN
 IMPULSIVE BUYING - THE TRICK OF VISUAL

MERCHANDISING
 DISPLAY DESIGN
 PROPS, FIXTURE AND SIGNAGE
 FIXTURE TYPE
 MERCHANDISE DISPLAY PLANNING AND

RECOMMENDATION
 BASIC RULE FOR FIXTURE PLACEMENT
 INTERIOR SIGNAGE
 ERROR OF DISPLAY
 USE OF OTHER SENSORY ORGAN FOR MERCHANDISING
 LITERATURE OVERVIEW
 RESEARCH METHODOLOGY
 PRIMARY OBJECTIVE
 SECONDARY OBJECTIVE
 SAMPLING PLAN
 DATA COLLECTION
 DATA COLLECTION MODE
 PLAN OF ANALYSIS
 LIMITATION OF RESEARCH
 DATA ANALYSIS RESULT AND INTERPRETATION
 FACTORS NOTICED AFTER ANALYSIS OF VISUAL MERCHANDISING
 FINDINGS AND CONCLUSION
 SUGGESTIONS
 RECOMMENDATIONS
 BIBLIOGRAPHY AND REFRENCES

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  APPENDIX

EXECUTIVE SUMMARY

Backgroud:

The India Retail Industry is the largest among all the industries, accounting for over ten per

cent of the country‟s GDP and around eight per cent of the employment. The Retail Industry

in India has come forth as one of the most dynamic and fast paced industries with several

players entering the market.

This project has been done in Big Bazaar, Mugalsarai. This is a flagship company of future

group which comes under future value retail limited with having annual turnover of twenty

three crores.

Purpose:

The purpose of the study was aimed at finding out the Impact of Visual merchandising (VM)

on sales at Big Bazaar, Mugalsarai.

Scope:

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The scope of the study is to find out the impact of visual displays in the store which causes

to change the buying decisions of the customers. It is important to notice that Visual

merchandising is involved in getting more visitors to stores; it is of immense importance

which attracts customers towards impulsive buying in the store

Research methodology: A sample size of hundred and fifty customers was selected for the

study. Data was collected by the simple random sampling method. Questionnaire was the tool

used to capture data from the customers, which was prepared on a Likert scale. Data was

analyzed through the Ms Excel.

Major Findings: The major findings of the study are listed below:

• Fifty five percent of the customers changed their buying decisions with the influence of

visual merchandising in the store.

• Eighty seven percent of the customers can recall the product display in the store.

• Seventy four percent preferred to follow the layout of the store to find the product.

• Eighty percent of customers are satisfied with the shopping experience at Big Bazaar,

Mugalsarai.

Major Recommendations:

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• As stated in the findings Seventy four percent preferred to follow the layout of the store to

find the product. But only Fifty five percent of the customers changed their buying decisions

with the influence of visual merchandising in the store. So it is important to improve the

visual merchandising inside the store to get hike in sales.

• By effective presentation of the sign boards/drop downs and with promo activities like

melas & celebrations, only 60percent people came to know about different offers in the

store. Offer is the sustaining factor for hypermarket like Big Bazaar. So it is crucial to get the

attention of the customers to enhance sales.

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 “ IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG

BAZAAR MUGALSARAI”

Section- A

Industry Overview

1. Introduction to Indian retail industry:

The sea of change can pull customers in many directions. It is our responsibility to light the

way and take care of them… before the competition does.

RETAILING Means “Re-tailing” to the customers so that they comeback.

Retailing consists of all activities involved in selling goods and services to consumers for

their personal, family, or household use. It covers sales of goods ranging from automobiles to

apparel and food products, and services ranging from hair cutting to air travel and computer

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education. Sales of goods to intermediaries who resell to retailers or sales to manufacturers

are not considered a retail activity.

The Indian retail story couldn't have been more different. India has approx 12 million retail

stores, more than rest of the world put together. But the per capita square feet area under

retail is just 2 sq.ft or 0.2 sq. meters with fragmented kirana stores being the predominant

players.

Retailing in India has remained in the unorganized sector and largely untouched by corporate.

The first decade of modern retail in India has been characterized by a shift from traditional

channels to new formats including department stores, hypermarkets, supermarkets and

specialty stores across a range of categories.

Modern retail formats have mushroomed in metros and mini-metros, in the last few years

modern retail has also established its presence in the second rung cities. Thus, exposing the

residents of these cities to shopping options, they have never experienced before. It has been

forecasted that the share of modern retail will increase from 2 per cent currently, to about 15-

20 per cent over the next decade. To begin with, retailers today will have to support the large

retail infrastructure in terms of Malls and Superstores that are being created. The challenge

for leading retailers shall therefore shift from diverting demand to creating demand.

With all the modern stores offering convenience in terms of an assortment of products,

ambience, service and innovative products, the paradigm shall shift from competing with the

kirana stores to an in-house demand creation. Relevant experiences from consumer goods

companies, which have successfully crafted an explosion in demand in their sectors, through

innovation, consumer driven strategies, will be head runner. Times are changing. With the

GDP at an all time high and income levels shooting through the roof, the average Indian

consumer has never had it so good. The propensity to consume has reached peaks that had

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never been scaled before. Credit cards are flashed with disdain and shopping baskets are

getting bigger all the time. Here are some factors that indicate the potential of retail in India:

• At 271 million, one of the largest consuming base in the world, forming 27% of the

total population.

• A high spending community below 45 years comprises 81 percent of the population.

• A young population with 54% population below 25 years

• Increased literacy from 44% in 1965 to 70% in 2016

• Increase in working women from 1.3 million in 1991 to 4.8 million in 1998.

The first decade of modern retail in India has been characterized by a shift from traditional

kirana shops to new formats including department stores, hypermarkets, supermarkets and

specialty stores across a range of categories. Modern retail formats have mushroomed in

metros and minimetros.

In the last few years, modern retail has also established its presence in the second-rung cities,

exposing residents to shopping options like never before. However, even as modern retailers

garner share from traditional channels, there is a larger role they would be required to play in

boosting consumption levels.Figures suggest that the total turnover of the sector is around Rs

10 lakh crores, of which 4 percent is contributed by the organised sector.

The retail sector in India is highly fragmented with organized retail contributing to only 2%

of total retail sales. The retail sector in developed countries was also highly fragmented at the

beginning of the last century but emergence of large chains like Wall Mart, Sears, and

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McDonald’s led to rapid growth of organized retail and growing consolidation of the retail

industry in the developed countries.

Organized retail is growing rapidly and we see the emergence of large organized retail chains

like Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over

the country. The opportunities in retail industry in India will increase since Indian retailing is

on the threshold of a major change.

India retail industry is the largest industry in India, with an employment of around 8% and

contributing to over 10% of the country's GDP. Retail industry in India is expected to rise

25% yearly being driven by strong income growth, changing lifestyles, and favorable

demographic patterns. It is expected that by 2020 modern retail industry in India will be

worth US$ 175- 200 billion. India retail industry is one of the fastest growing industrieswith

revenue expected in 2015 to amount US$ 320 billion and is increasing at a rate of 5% yearly.

A further increase of 7-8% is expected in the industry of retail in India by growth in

consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has

further been predicted that the retailing industry in India will amount to US$ 21.5 billion by

2020 from the current size of US$ 7.5 billion.

Shopping in India have witnessed a revolution with the change in the consumer buying

behavior and the whole format of shopping also altering. Industry of retail in India which

have become modern can be seen from the fact that there are multi- stored malls, huge

shopping centers, and sprawling complexes which offer food, shopping, and entertainment all

under the same roof. India retail industry is expanding itself most aggressively, as a result a

great demand for real estate is being created.

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Traditional Convenience Stores:

Traditional convenience stores are too well established in India than to be wiped out and

besides there is uniqueness in the traditional items that represent the sub-continent. The retail

stores in India are essentially dominated by the unorganized sector or traditional stores. Infact

the traditional stores have taken up 98 percent of the Indian retail market. Now stores run by

families are primarily food based and the set up is as Kirana or the 'corner grocer' stores.

Basically they provide high service with low prices. If the stores are not food based then the

type of retail items available are local in nature.

The traditional family run convenience stores can take pride in the fact that the Kirana is the

most common outlet forms for the consumers. The tough competition for convenience stores

are coming from organized retail stores dealing in food items, like:

• Apna Bazaar

• Canteen stores

• Food World

• Subhiksha

• Food Bazaar

Convenience Stores are open for long hours and is one of the formats of the Indian retail

stores that cater to basic needs of the consumer. A good example of such would be Convenio.

These stores are found in both residential as well as commercial markets. The food products

of traditional family run convenience stores are comprised of branded as well as non-branded

items. The benefits of family run convenience stores is that they give importance to:

• Personal touch

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• Facilities of credit

• Quick home delivery

• Non-food based stock comprises of multiple and varieties of local brands.

The future of such stores as they face competition from organized sector, would depend on

the following particulars:

• Place and capacity

• Diligent area coverage

• Disciplined work schedule

• Managing turnover

• Revenue from assets

• Customer service and satisfaction

The traditional family run convenience stores serves the purpose of the housewives who

definitely wants to avoid traveling long distances to purchase daily needs. The convenience

factor in terms of items, among people in general can be highlighted as below:

• Groceries

• Fruits

• Drug Store

• Necessary stationery

As such traditional family run convenience stores are here to stay and cannot be oversized by

the organized retail sector besides, it represents the variety of India.

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Indian organized retail market:

Indian organized retail market is growing at a fast pace due to the boom in the India retail

industry. In 2015, the retail industry in India amounted to Rs 10,000 billion accounting for

about 10% to the country's GDP. The organized retail market in India out of this total market

accounted for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.

Traditionally the retail industry in India was largely unorganized, comprising of drug stores,

medium, and small grocery stores. Most of the organized retailing in India have started

recently and is concentrating mainly in metropolitan cities. The growth in the Indian

organized retail market is mainly due to the change in the consumers behavior. This change

has come in the consumer due to increased income, changing lifestyles, and patterns of

demography which are favorable. Now the consumer wants to shop at a place where he can

get food, entertainment, and shopping all under one roof. This has given Indian organized

retail market a major boost.

Retail market in the organized sector in India is growing can be seen from the fact that 1500

supermarkets, 325 departmental stores, and 300 new malls are being built. Many Indian

companies are entering the Indian retail market which is giving Indian organized retail

market a boost. One such company is the Reliance Industries Limited. It plans to invest US$

6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets.

Pantaloons is another Indian company which plans to increase its retail space to 30 million

square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in

talks with Tesco a global giant for a £ 750 million joint venture. A number of global retail

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giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India.

Indian organized retail market will definitely grow as a result of all this investments

Classifying Indian retail:

(A)Modern Format retailers

1) Supermarkets (Foodworld)

2) Hypermarkets (Big Bazaar)

3) Department Stores (Shoppers Stop)

4) Specialty Chains (Ikea)

5) Company Owned Company Operated (BP)

(B)Traditional Format Retailers:

1) Kiranas: Traditional Mom and Pop Stores

2) Kiosks

3) Street Markets

4) Exclusive /Multiple Brand Outlets

(C)Large Indian retailers

1. Hypermarket

1) Big Bazaar

2) Giants

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4) Star

2. Department store

1) Lifestyle

2) Pantaloons

3) Piramyds

3. Entertainment

1) Fame Adlabs

2) Fun Republic

4) PVR

CLASSIFICATION OF INDIAN RETAIL SECTOR

a) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector Traditional types

of retailers, who operate small single-outlet businesses mainly using family labour, dominate

this sector In comparison, super markets account for a small proportion of food sales in India,

However the growth rate of super market sales has being significant in recent years because

greater numbers of higher income Indians prefer to shop at super markets due to higher

standards of hygiene and attractive ambience.

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b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health and beauty

products .Here also small, single-outlet retailers dominate the market .However in recent

years, a few retail chains specializing in these products have come into the market. Although

these retail chains account for only a small share of the total market their business is expected

to grow significantly in the future due to the growing quality consciousness of buyers for

these products.

C) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets operate all over

India. Traditional outlets stock a limited range of cheap and popular items; in contrast,

modern clothing and footwear stores have modern products and attractive displays to lure

customers. However, with rapid urbanization, and changing patterns of consumer tastes and

preferences, it is unlikely that the traditional outlets will survive the test of time.

D) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market, very few

large and modern retailers have established specialized stores for these products. However

there is considerable potential for the entry or expansion of specialized retail chains in the

country.

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E) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign companies

during the post liberalization period. A greater variety of consumer electronic items and

household appliances became available to the Indian customer. Intense competition among

companies to sell their brands provided a strong impetus to the growth for retailers doing

business in this sector.

F) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have encouraged

consumer expenditure on leisure and personal goods in the country. There are specialized

retailers for each category of products (books, music products, etc.) in this sector. Another

prominent feature of this sector is popularity of franchising agreements between established

manufacturers and retailers.

Today trend is the development of integrated retail cum Entertainment centers or shopping

malls. An increasing number of retailers are focusing on malls now as opposed to stand-alone

developments. While the number of shopping malls has seen a massive surge in the recent

past in the metros and their suburbs, the latest trend in this sector is the increasing focus on

providing leisure activities such as multiplexes, facilities for kids' entertainment, eateries etc.

within the mall premises. Customer less the time consumes and more entertainment with his

family in malls because they within shopping mall number of retail shop and variety of

products and selected the product they want. Good environment in mall. Less crowed and

These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq ft. Critical to these

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malls is the concept of the anchor, the key outlet or store around which other outlets cluster.

The most popular Indian anchors include Shoppers' Stop, Globus, Pantaloon, Lifestyle and

hypermarkets like Big Bazaar and Giant. Cinemas also often anchor malls. Driven by the

lucrative tax breaks, the old single screen theatres are being divided into three-five smaller

screens, as was done in the US, years ago. Example for wave and PVR.

COMPANY PROFILE

Company Profile:

Type: Subsidiary of Pantaloon Group.

Founded: 2001.

Headquarters: Mumbai, India.

Industry: Retail.

Parent: Pantaloon Group.

Owner: Kishore Biyani.

Slogan: Is se sasta aur accha kahi nahin.

Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and

requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd.

and is an answer to the United States’ Wal-Mart. Big Bazaar has released the doors for the

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fashion world, general merchandise like sports goods, cutlery, crockery, utensils, and home

furnishings etc. at best economical prices.

Big Bazaar group offers more than 100 stores all over the country with an amalgamation of

Indian bazaars’ feel and touch with a convenience and choice of the modern retail facilities.

The retail format of the Big Bazaar group includes Aadhar, Rural & Home-Town retail chain,

Ezone home-improvement chain, sportswear retailer, depot and music chain is few among

others.

History of Big Bazaar

The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore

Biyani. The group do not promises more than what it delivers. Their basic attraction

associated with reasonable prices is their Unique Selling Price.

Though, the products Big Bazaar stores stocks might not be advanced, but the customers are

assured to avail the worth of the money spent by them. In 2001, the group opened its first

store on the VIP Road, Calcutta, which was the primary departmental store offering regulated

services of parking, steel vessels, apparel, electronics etc under the one roof at the

competitive prices. Big Bazaar has become a massive hit with lower middle-class and middle

class people as a major client base.

At present, the Future Group comprises various formats and brands like Pantaloons, F123,

Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, Loot Mart, Home

Town and Central. The Big Bazaar has several stores located all over the India, among that

Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those

metro cities where the stores of Big Bazaars are located.

FACILITIES OFFERED BY BIG BAZAAR

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• Online shopping: Big Bazaar has an official website, FutureBazaar.com, which is one

of the most favorite sites among people of India for online shopping. Future Bazaar is an

online business venture of Future Group, which sells an assortment of products such as

fashion, which includes merchandise for men and women, mobile accessories, mobile

handsets and electronics like home theatres, video cameras, digital camera, LCD TVs,

kitchen appliances and many more.

• Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein extra

and special discounts were offered on Wednesday every week, to attract the potential buyers

into their store.

• Security check: At each exit of Big Bazaar, they use alarm systems or Electronic

Article Surveillance system, which detects the products that has attached tags or not.

COMPANY INTRODUCTION

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Kishore Biyani is an Indian businessman. He is the founder and chief executive

officer (CEO) of Future Group and also the founder of retail businesses such as Pantaloon

Retail and Big Bazaar. Widely credited as the pioneer of modern retail industry in India,

Kishore Biyani is a mentor and role model for many Indian entrepreneurs and a thought

leader in Indian business.

Future Group is an Indian Conglomerate headquarter Mumbai, Maharashtra India. Future

Group is a corporate group and nearly all of its businesses are managed through its various

operating companies based on the target sectors. For e.g., retail supermarket/hypermarket

chains Big Bazaar, FBB, Food Bazaar, Food Hall, Hometown etc. are operated by its retail

division, Future Retail Limited, while its fashion and clothing outlets Brand

Factory, Central, and Planet Sports are operated via another of its subsidiaries, Future

Lifestyle Fashions Limited. With these many fashion outlets and supermarkets, the group also

promotes its fashion and sports brands like Indigo Nation, Spalding, Lombard, Bare etc., and

FMCGs like Tasty Treat, Fresh & Pure, Clean Mate, Premium Harvest etc.

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Future Retail, the flagship company of Future Group, currently has a presence inover 250

cities across the country with over 12 million square feet of retail space. It presently runs

around 1600 odd stores across food, grocery and general merchandise segments.

It's also interesting to note that Future Group-owned Big Bazaar, the large retail chain, went

through a complete image makeover (both in terms of logo and tagline) on completing 10

years of operation in the country. The new tagline - Naye India Ka Bazaar - replaced the older

one - IsseSastaAurAcchaKahinNahin.

Big Bazaar also operates other retail chains, including Central, Food Bazaar, Home Town,

and eZone. The CEO of Big Bazaar is Sadashiv Nayak Big Bazaar is estimated to end this

financial year with a turnover of Rs 4,000 crore and expects to double it over the next year.

Future Group has also changed its brand identity several times in the past. A quick throwback

to 2014, when the company made an effort to change its brand image with a new tagline -

Making India Beautiful - a Business Today article quoted Biyani as saying, "The world is

changing very fast and so should a company's brand image. A company should change its

brand image every five years."

But, is the new tagline going to help the brand grow its business? We'll have to wait and see.

Future Group flaunting its new tagline displaying the same logo, the new brand tagline reads

- Co-Founders of The New.Easily identifiable or relatable taglines have often proved to be

game-changers for businesses and some even went on to symbolize respective brands for an

entire generation or more.

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Future Group's operating companies sorted by targeted markets

Retail

 Future Retail Ltd

 Future Lifestyle Fashion Ltd

 Future Consumer Limited

 Future Enterprises Limited

 Swathi Tiffin Shop

 Food hall

Financial services

 Future Capital Holdings (for internal financial services)

 Future General Life Insurance

 Future General Insurance

 Future Ventures

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Future Group retail services sorted by operating companies

 KORYO (Chinese Re-branding)

 Food Bazaar

 Fashion Big Bazaar (FBB)

 Aadhaar Wholesale

 Hometown

 E Zone

 Food hall

 Easy day

 Big Bazaar

 Nilgiris

 Heritage Fresh

 Hyper City

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 Products brands under Future Group in India

Fashion and lifestyle

 Indigo Nation

 Scullers

 John Millers

 All

 Rig

 Cover story

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  DJ&C

 Buffalo

 Hey

 Converse

 Bare

 Clarks

 Holii

 UMM

 Urban Yoga

Joint venture partnerships

General Group

General is an Italian insurance company, having business in India through a joint venture

with Future Group under the brand name Future General Insurance. Future General operates

in India having through two primary legal entities namely General India Life Insurance Co.

Ltd (Life Insurance) and General India Insurance Co. Ltd.(Non-Life Insurance). Since 2013,

Future General held talks of a possible merger with Larsen & Toubro Ltd to form a general

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insurance company but a year later, on 22 April, Future Group backed out of merger leading

to premature closure of the talks.

Staples Inc

United States-based office supply retailer, has a presence of over nine cities in India under the

joint venture with Future Group.[ As of April 2013, Future Group has 60% stake in the

partnership.

Sketchers

Sketchers entered India through a JV with Future Group in 2012.

Celio

French fashion Celio entered Indian markets in 2008 through a 50:50 joint venture with

Future Group's then Retail hand, Pantaloons Retails India Ltd (now Future Retail Ltd). On

November 2013, Celio hiked its stake in the joint venture to 65%

Clark

C&J Clark International Ltd is a UK-based footwear and accessories retailer. The Future

Group has entered into a 50:50 joint-venture (JV) to form 'Clarks Future Footwear Ltd'. The

JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April

2011. The brand seeks to gain a share of the premium segment in this category.

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 VISION MISSION AND CORE VALUES

VISION:
“To deliver Everything, Everywhere, Every time, to every Indian customer in the most

profitable manner.”

MISSION:
 We share the vision and belief that our customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading

to economic development.

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  We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments - for classes and for

masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient, cost conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united

determination shall be the driving force to make us successful.

CORE VALUES:

 Indianness: By believing in oneself and doing things the Indian way

 Leadership: To be a leader, both in though and business.
 Respect & Humility: To respect every individual and be humble in our

conduct. As well as dealing with everyone within and outside the organisation
 Introspection: Leading to purposeful thinking. for continuous learning, self-

development and personal excellence

 Openness Adaptability: by accepting new ideas and knowledge, and being

proactive in meeting challenges emerging from changing business scenarios.

 Valuing and Nurturing Relationship: To build long term relationships. with

customers, business associates, stakeholders, communities and the society.

 Simplicity & Positivity: To foster innovation, speed and imagination.
 Flow: To respect and understand the universal laws of nature.

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 The Future

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries

due to the entry of several new players. Total consumption expenditure is expected to reach

nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per

cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the

employment. India is the world’s fifth-largest global destination in the retail space.

Retail market in India is projected to grow from an estimated US$ 672 billion in 2017 to US$

1,200 billion in 2021F. Online retail sales are forecasted to grow at the rate of 31 per cent

year-on-year to reach US$ 32.70 billion in 2018. Luxury market of India is expected to grow

to US$ 30 billion by the end of 2018 from US$ 23.8 billion 2017 supported by growing

exposure of international brands amongst Indian youth and higher purchasing power of the

upper class in tier 2 and 3 cities,

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As the country has got a high growth rates, the consumer spending has also gone up and is

also expected to go up further in the future. In the last four year, the consumer spending in

India climbed up to 75%. As a result, the India retail industry is expected to grow further in

the future days

The first decade of modern retail in India has been characterized by a shift from

traditional kirana shops to new formats including department stores, hypermarkets,

supermarkets and specialty stores across a range of categories. Modern retail formats

have mushroomed in metros and minimetros.

In the last few years, modern retail has established its presence in the second-rung cities,

exposing residents to shopping options like never before. However, even as modern

retailers garner share from traditional channels, there is a larger role they would be

required to play in boosting consumption levels.

The retail sector in India is highly fragmented with organized retail contributing to only

2% of total retail sales. The retail sector in developed countries was also highly

fragmented at the beginning of the last century but emergence of large chains like Wall

Mart, Sears, and McDonald’s led to rapid growth of organized retail and growing

consolidation of the retail industry in the developed countries.

Organized retail is growing rapidly and we see the emergence of large organized retail

chains like Shopper’s Stop, Lifestyle, and Westside. We also find retail malls

mushrooming all over the country. The opportunities in retail industry in India will

increase since Indian retailing is on the threshold of a major change

34
Shopping in India have witnessed a revolution with the change in the consumer buying

behavior and the whole format of shopping also altering. Industry of retail in India which

have become modern can be seen from the fact that there are multi- stored malls, huge

shopping centers, and sprawling complexes which offer food, shopping, and

entertainment all under the same roof. India retail industry is expanding itself most

aggressively, as a result a great demand for real estate is being created.

Government of India has taken various initiatives to improve the retail industry in India.

Some of them are listed below:

The Government of India may change the Foreign Direct Investment (FDI) rules in food

processing, in a bid to permit e-commerce companies and foreign retailers to sell Made in

India consumer products.

Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online

retail of goods and services through the automatic route, thereby providing clarity on the

existing businesses of e-commerce companies operating in India.

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 History of Big Bazaar

The worldwide country chain, Big Bazaar, is formed by CEO of Future Group, Mr. Kishore

Biyani. The group do not promises more than what it delivers. Their basic attraction

associated with reasonable prices is their Unique Selling Price.

Though, the products Big Bazaar stores stocks might not be advanced, but the customers are

assured to avail the worth of the money spent by them. In 2001, the group opened its first

store on the VIP Road, Calcutta, which was the primary departmental store offering regulated

services of parking, steel vessels, apparel, electronics etc under the one roof at the

competitive prices. Big Bazaar has become a massive hit with lower middle-class and middle

class people as a major client base.

At present, the Future Group comprises various formats and brands like Pantaloons, F123,

Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, Loot Mart, Home

Town and Central. The Big Bazaar has several stores located all over the India, among that

Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those

metro cities where the stores of Big Bazaars are located.

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BIG BAZAAR

Big Bazaar is a hypermarket retail store, which caters to every family's needs and

requirements. Big Bazaar has released the doors for the fashion world, general merchandise

like sports goods, crockery, utensils, and home furnishings etc. at the best and reasonable

prices. At the time of the launch of Big Bazaar there was no real precedent in the Indian

market giants the RPG hypermarket had opened in Hyderabad only two months prior to the

launch of Big Bazaar. A western model had to be adapted to suit the needs of the Indian

environment various local markets and local markets leaders were studied. This was done to

understand the product mix and prices offered. Saving is s the key to the Indian middle class

consumer.

37
The stores which would be created had to offer value to the consumer. Keeping this mind, the

concept of Big Bazaar was created. Big Bazaar offers a wide range of products which range

from apparels, food, farm products, furniture, child care, toys etc. Products of all the major

brands are available at Big Bazaar and also there are many home brands promoted by Big

Bazaar. There pricing objective is to get maximum Market share.

Big bazaar is not just another hypermarket. It caters to every need of your family. Where Big

Bazaar scores over other stores is its value for money proposition for the Indian customers.

At Big Bazaar, you will definitely get the best products at the best prices – that’s what they

guarantee. With the ever increasing array of private labels, it has opened the doors into the

world of fashion and general merchandise including home furnishings, utensils, crockery,

cutlery, sports goods and much more at prices that will surprise you. And this is just the

beginning. Big Bazaar plans to add much more to complete their customers shopping

experience.

In India most of us are not prepared for the consumerism that is setting in this country. We

underestimate how many people are going to fly and that s why our airports get crowded. We

underestimate how many people will speak on the phone for how many billions of minutes

and therefore our cell phone networks are always congested. But the minds responsible for

the huge success of Big Bazaar have captured and understood the force of consumerism that

is unfolding.

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Big Bazaar’s all over India attract a few thousand customers on any regular day, and a lot

more if they are offering something extra on each buy, which they normally are! And the

sales force at Big Bazaar along with the executives is prepared for them.

Image

“Is se sasta aur accha kahin nahi” Nothing captures the sprit of Big Bazaar better than this

one liner. It is a simple statement and yet it positioned at the top of Indian customers mind. It

shows that big bazaar was built on the foundation of entrepreneurship and simplicity. They

believe in service and value for the customers. They consider that it is their only duty to keep

customer in mind at every step, they go that extra mile and buy directly from source in bulk

so that they can get best rates by keeping the margin low

Big Bazaar is constantly on the lookout for finding new ways and means to improve the

current state of affairs. Thus, innovation is a very important aspect of their working strategy.

The other very important philosophy is that of Indianness. All the concepts and formats as

well as the way of doing things are very Indian. The way Big Bazaar is designed and the way

the whole concept has developed reflects a sense of Indianness.

39
 Study parameters of Big Bazaar

” In order to implement specific retail strategy managers prepare the ideal combination of

retail-mix variables and coordinate the activities of the different elements of the mix such as:

 Merchandise assortmement

 Location

 Layout

 Visual merchandising

 Store atmosphere

 Customer service

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 Targeting young working class

The large and growing young working population is a preferred customer segment for Big

bazaar. These young people are early adopters of most modern product lines.

The ongoing boom in sectors such as information technology and business process

outsourcing has created a clientele with high disposable income and a increased demand for

lifestyle merchandise such as watches, cosmetics and perfumes. This is a much-travelled and

brand-savvy urban population. Interestingly, an estimated 40-50% of the Indian working

woman’s salary is spent on apparel and footwear. Eating out, mobile phones and accessories

make up the other leading spending options. Big Bazaar specifically target young, working

professionals, home makers who are primary decision maker

Value for money

All our lines of business are consumer centric and I believe that if we are to be in the larger

consumer space, we would need to keep changing, evolving and accordingly be flexible in

our business plans. Consumers are the same everywhere; we are only bound by our social

systems. Their desires, greed’s and needs are similar. The value for money proposition is so

ingrained in the Indian consumers mind that he needs to be shown true value all the time.

Therefore, all our current and future businesses would necessarily have the common

denominator as the consumer.

All our alliances and relationships with many company’s have been built, keeping the

synergies of business and consumer offerings in mind.

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 Layout

People often complain that Big Bazaar outlets always look very crowded. But few realize that

it is concisely designed to look just like that. When the shop looks neat and empty, the masses

never walk into it. There has to be what is called the ‘button brush effect’, and an ‘organized

chaos’. As Indians, we like bumping into people, chatting, gossiping and eating while we

shop!

Big Bazaar layout consists of layout of long rows of parallel fixtures; with no aisles because

aisles can be boring they restrict space and can’t be dramatized. At Big Bazaar, they create

multiple cluster or mini-bazaars within every store. It was designed as an agglomeration of

bazaars with different sections selling different categories.

MARKETING TECHNIQUES USED BY BIG BAZAAR:

 Value Pricing (Every Day Low pricing): Big Bazaar promises consumer the lowest

available price without coupon clipping, waiting for discount promotion, or

comparison shopping.

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

of psychological discounting is used as promotional tool. Big Bazaar also caters on

Special Event Pricing (Close to Diwali, GudiPadva, Durga Pooja, Independence Day,

Republic Day etc.)

 Differentiated Pricing: Time pricing, i.e., difference in rate base on peak and non-

peak hours or days of shopping is also a pricing used in Indian retail, which is

aggressively used by Big Bazaar.

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  Bundling: Selling combo-packs and offering discount to customers. The combo-

packs add value to customer.

Merchandise:

Main objective of the stores layout is to maximize the interface between customer and

merchandise. It provides easy accessibility to the customer to view the offerings of the store.

Layout of the store has been strategically designed in order to make effective use of

merchandise and passage to draw customer’s attention on store’s offerings Big Bazaar has a

wide range of merchandise they have both branded products like –

 Home lien items: Like bed sheets, pillow covers, carpets, Towels, Duster, Cushion

cover, Chair bags etc.

 Electronic items: Like refrigerator, T.V, Vacuum cleaner, music system, washing

machine, Rice cooker, juicers, Irons, Mixers and Grinders, A.C etc.

 Mobile Zone: A wide range of mobile phones and accessories is available at lowest

possible price.

 Plastics, Utensils and Crocker: Bucket, Casserole, Containers, Boxes, Bowls, Jugs,

Bottles, Plates, Non stick Cookware, Kitchen tools, Cookery Cutlery, Dinner sets,

Wine and Juice Glasses etc.

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 Men's Department: Formal (shirt & paints), Casual ( shirts & paints ), party wear,

Jeans, T-shirt, Suits and Blazers etc.

 Ladies Department: Dress materials formal as well as casual, Western Wear, Ethnic

wear, Undergarments, Nightwear etc.

 Kids Department: In have both boys and girls clothes are given to the customer like

for Girls frocks, Western wear, ethnic wear and for Boys Jean’s, trousers western wear

or ethnic wear etc.

 Luggage: Travel bags, Trolley bags, School bags, Ladies purse, Suitcase etc.

 Footwear: In this section footwear for men, women and kids is made available like

shoes, Men’s sandals, Ladies sandals, kid’s sandals, slippers etc.

 Toys: All kinds of toys for children are available like soft toys, Educational toys,

Board games, Dolls etc.

 Stationery: All kind of office stationery and stationery for school going kids is

available like Pen, Copy, Diary, Books for kids, Paintings colors etc.

 Personal Care: There have Soaps, Toothpaste, Shampoo, Deodorant’s, Body Spry,

baby food, Talcum powder etc.

Customer Services of Big Bazaar:

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Big Bazaar provides a wide range of services to its customers like Trial rooms, Elevators, Car

parking, Security, Baggage counter, Trolleys, Gift wrapping, free call in case of emergency,

for electronic item provides at the entrance of the Big Bazaar and stretcher are also provided.

They even provide them with a free sale services in case of buying electronic items. One of

the major services provided by them are one shop as one could get a whole range of items

under one shop and at the most reasonable price. They always have their outlets in such a

location where it is easy to commute. Big Bazaar provides a customer help desk at entrance

of the shop, where customer can get all the necessary information of any new scheme or offer

going on. Customer desk is for helping and guiding the customer. Customer desk help have

complaint or suggestion box in which customer can write their suggestion and complaint

regarding services, product etc. Big Bazaar provides toll free number for customer care and

email id through which customers can give their complaints and suggestion. A complaint of

any customer can be solved within 24 hrs by a person who handle complaints if he is not able

to solve it within 24 hrs then he try to convince that customer, that it would be solved within

few hours or days. If that fellow is not at all able to solve the problem of the customer then it

goes to zonal office.

Different facilities offered by Big Bazaar:

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 Online Shopping: Big Bazaar has an official website, FutureBazaar.com, which

is one of the most favorite sites among people of India for online shopping. Future

Bazaar is an online business venture of Future Group, which sells an assortment

of products such as fashion, which includes merchandise for men and women,

mobile accessories, mobile handsets and electronic like home theatres, video

cameras, digital camera, LCD TVs, kitchen appliances and many more.
 Wednesday Bazaar: ‘Hfte ka sabse sasta’ din was introduced by the Big Bazaar,

wherein extra and special discount were offered on Wednesday every week, to

attract the potential buyers into their store. The aim, according to the chain, is to

give homemaker the power to save the most and even the stores in the city done a

fresh look to make customers feel that it is their day.

 Security Check: At each exit of Big Bazaar, they use alarm system or Electronic

Article Surveillance System, Which detects the products that has attached tags or

not.
 Exchange Offer: A new offer came in from Big Bazaar, to exchange your old

goods for coupons which one can reimburse with goods.

Competitors of Big Bazaar with regards to services:

 Wal-Mart
 Reliance

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 Shopper Stop
 Vishal Mega Mart
 D-Mart
 Mahindra Retail

“ IMPACT OF VISUAL MERCHANDISING ON SALES AT BIG

BAZAAR MUGALSARAI”

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 Section-B

1.INTRODUCTION AND BACKGROUND OF STUDY

1.1 INTRODUCTION

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

opportunity for celebration. The good old days have gone when a list is made and shopping is

done at the nearby Kirana store. Now shopping is a welcome break from hectic schedules.

Retail giants like Big Bazaars rule hearts with “Is se sastha aur acha kahin nahi” Central

with motto of “Shop Eat and Celebrate”. The double conversion theory talks about visitors

converting into buyers.

At this juncture it is important to notice that visual merchandising, which deals with the

display of products and creating an ambience. A good display makes people walk into the

store and also helps in making them feel like taking a look around.

A successful retailing business requires that a distinct and consistent image be created in the

customer‟s mind that permeates all product and service offerings.

Visual merchandising can help create that positive customer image that leads to successful

sales.

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It not only communicates the store‟s image, but also reinforces the stores advertising efforts

and encourages impulse buying by the customer. Visual merchandising is a major factor often

overlooked in the success or failure of a retail store.

Visual merchandising is the art and science of displaying and presenting product on the sales

floor and in the windows with the purpose to increase store traffic and sales volume. Along

with the store design, it is a key component of store‟s unique identity and best form of

advertising.

Visual merchandising can be defined as everything the customer sees, both exterior and

interior, that creates a positive image of a business and results in attention, interest, desire and

action on the part of the customer. It includes the presentation of merchandise as well as other

important, features that create the store‟s overall atmosphere. Eighty percent of impressions

are created by sight; that is why one picture is worth a thousand words. Each customer has a

mental image of a store and its merchandise.

A store should have an inviting appearance that makes the customer feel comfortable and yet

eager to buy. Visual merchandising is directly involved in two-third of the entire process of

converting a mere visitor into a buyer.

Visual merchandising plays a very important role in attracting customers of different sections

to buy the goods. The basic objective for visual merchandising is a desire to attract customers

to a place of business in order to sell the merchandise.

Visual merchandising is offered to the customer through exterior and interior presentation.

Each should be coordinated with the other using the store‟s overall theme.Creating and

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maintaining a store‟s visual merchandising plan, however, is not a simple task. It is necessary

to continually determine what the customer sees.

This evaluation from the customer‟s perspective should start on the exterior and work

completely through the interior of the store.

Through visual merchandising it is able to communicate to target customer brand‟s identity,

and what is unique and special about the offering and what makes this store better than other

stores.

The 70% Rule

Seventy per cent of the purchase decisions happen on the store floor according to the study

conducted in the US in 1995 study initiated by the Point-of- Purchase Advertising Institute.

In addition to its conclusion that “more than seventy percent of brand decisions are made in

store,” It was also advanced that “POP (point-of- purchase displays) are a significant

decision Influencer.”

The study found that “more than seventy percent of brand purchase decisions are made in-

store at supermarkets, and more than seventy four percent are made in-store at mass

merchandisers.” This study was large in scope; encompassing data from a nationwide field

intercept study of four thousand two hundred consumers across fourteen cities.

Visual merchandising has taken retailing by storm. Stemming from Neural marketing, an

intriguing marriage of marketing and science is the window to human mind. It is the key to

unlock the subconscious thoughts, feelings and desires that drive the purchasing decisions

that we make in everyday lives.

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 1.2 THE 5 SENSORY ELEMENTS

Sight: The first thing that motivates a consumer to walk into a store is how the store

looks‟. A welcoming and friendly store always scores a plus over those which are

not. Bright colours, well-placed merchandise and in-store advertisements, all go into

working for creating that „sight‟ for a consumer. For example, in a furniture store,

facts and helpful tips by interior designers can be put up next to merchandise to aid

the consumers. They can see, read and take informed decisions.

Sound: Indulging the sense of sound through pleasing music (in accordance with the

merchandise and brand concept) is a must. At an apparel store for young adults,

fashion shows on screens and tips by stylists can be aired in the store to help

shoppers select clothes for themselves. Interviews or quotes by famous authors can

be played at bookstores to educate the customers on what books to pick up.

Smell: A pleasing smell always adds to the ambience of a store. A

visual merchandiser while working in accordance to the retailer‟s details should

always keep in mind the sense of smell of a shopper. Good odour is a sure-shot bonus

to the store, it may not be remembered always, but its absence shall surely

be remembered.

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 Touch: This is a tricky sense to indulge in, but most vital. For today‟s

quality- conscious consumer it is more than a necessity to be able to „feel‟

the merchandise. Be it in trying on clothes in the trial room, or testing a perfume

with a tester. The client should always be made to feel at home when it comes to

the sense of „touch‟. The worth this cannot be over emphasized.

Taste: Not all retail stores can hope at utilizing the sense of taste. But for those who

can, like chocolate stores, candy stores, F&B outlets, snack and juice bars should aim

at always treating the sense of „taste‟ of their consumers. On the house samples for

tasting, free dishes or drinks on certain amount of purchases or sweets and chocolates

for kids at any other kind of store are a few ways the retailer can indulge in the sense

of taste of the consumer.

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.

1.3VISUAL MERCHANDISING ELEMENTS

1.3.1Exterior Signs

An effective sign is a silent sales person. A sign must attract attention of customers in less

than ten seconds and should convey what the business is and what it has to sell. The size of

the letter used in signs should be large enough to be read from a distant place. Elegant design

52
and expensive sign material will convey a business of luxury goods and services. A design of

the sign conveys a great deal about the business. Signs can also be used to target a specific

market segment such as youth, women, singles etc. Logo is also very important and plays a

major role in attracting customers. They should be unique and noticeable. To put it in simple

words simple brief, well designed, well lettered and easy to read signs will attract more

customers and convey a feeling of welcome to the customers. A stores signs is its identity. It

is with the sign that the public recognize the store.

Hence it should create an image that can be consistently carried out as an identity of the

store.

1.3.2 Marquees

Marquees are special type of signs used to display stores name. Effective marquees should be

designed so as it is different from others and attracts the attention of customers.

1.3.3 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

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1.3.4 Entrance & Aisles

Most of the first time customers remember the store entrance. This goes on with the

quote “first impression is the best impression”. Giving the best impression to the

customer’s right at the entrance is mandatory for any store. Cluttered aisles makes the

shoppers feel uncomfortable and hence leave to a bad shopping experience. Entrances that

allow shopping to come into a store without being aware of their entering are also becoming

very popular.

1.3.5 Window Displays

The display at shop windows is becoming increasingly popular as far as visual merchandising

stands. Changing window displays to suit themes and moods and seasons is gaining

popularity. Special emphasis has to be placed on a store‟s window displays because they are

the information link to the potential customer.

It is reckoned that as many as one in every four sales could be the result of a good window

display. Window display should attract attention, create interest and invite people into the

store to purchase goods.

The average amount of time an individual spends looking at a window display is about

eleven seconds, and that is the maximum time available to achieve this. Too much

of merchandise must not be crowded at a window, as customers find it difficult to determine

the message and what items are being promoted.

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 1.4 PRINCIPLES OF DESIGN

1.4.1 Interior Presentation

Selling space is the most important part of a store and therefore, efforts to utilize each square

foot will help to maximize sales. When planning interior displays, it should be kept in mind

55
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

56
Advertising Institute (POPAI) indicates that nothing influences the consumer‟s purchase

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

1.5 Impulse buying - The trick of Visual Merchandising

A research conducted in US suggests that 64.8 per cent of all purchases decisions were made

inside a supermarket. This included impulse purchase along with substitutions and generally

planned buys where the shopper had an item in mind, but no brand. Most people indicated

they purchased the item because they saw it displayed.

Displays or advertising alone may not increase product sales substantially. However,

combining advertising and display into an integrated promotional campaign will usually be

more effective.

Some effective displays are created by suppliers or brand-name manufacturers, while others

are developed from scratch. The main principles of design used in display are balance,

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emphasis, proportion, rhythm, colour, lighting and harmony. These principles apply to all

displays, window and interior.

1.6 Display Design

An effective way of attracting customers to a store is by having good displays, both exterior

and interior. A customer will be

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.

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 1.7 PROPS, FIXTURES AND SIGNAGE

1.7.1 Props

A prop is something used with a product in a display that clarifies the function of the

merchandise being sold. Props are the integral part of a display. They are used in visual

merchandising to tell a story about a product, the merchandise concept or the store itself. A

display prop is something which is not for sale, such as floor coverings, wall treatments,

backgrounds, mannequins, shelves, and steps. Props may also be merchandise that is for

sale.

1.7.2 Image

When using sellable merchandise as a prop, it should be ensured that it is appropriate for the

theme of the display and in sufficient quantity to meet an increased demand arising from the

display. Theme and prop merchandise must be prominently displayed in their respective

departments for the easy access by the customer.

If a store does not have merchandise available that can be used in the display, display props

can be used for non-merchandise categories. Non-merchandise props used for their original

purpose can assist in telling a story. Including tissue paper, pens, pencils, shopping bags,

hangers, chairs, desks and tables is an example.

The presence of prop is to highlight or complement the merchandise and add

visual excitement to the surrounding area.

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 1.8FIXTURE TYPES :

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

wall.

1.8.2 Four way fixtures: Two cross bar that are perpendicular to each other in a pedestal.

1.8.3 Wall Fixtures: To make store walls merchandisable, wall usually covered with

a skin, that is fitted with a vertical columns of notches similar to those on the Gondolas, into

which a variety of hardware can be inserted can be merchandised much higher than floor

fixture

1.9 MERCHANDISE DISPLAY PLANNING

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1.9.1 Shelving – Flexible and easy to maintain.

1.9.2 Hanging- Suspending merchandise from hangers

1.9.3 Pegging – Small rods inserted into walls.

1.9.4 Folding – For soft lines that can be folded and stacked on shelves or tables –

creates high fashion image.

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1.9.5 Stacking – For large hard lines that can be stacked on shelves, base desks of

gondolas or flats – easy to maintain and show an image of high volume and low price.

Stacking cushions is one such practice.

1.9.6 Dumping – Large quantities of small merchandise can be dumped into baskets or

bins – highly effective for soft lines (socks, washcloths) or hard lines(batteries candy, grocery

products) – creates high volume, low cost image.

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1.9.7 Depth - Depth is the distance from the front of the window to the back of the

window. It is important to give the display the right amount of depth. Consider the way we

watch movies and ok at the painting; we step or sit back from whatever we wish to see.

1.9.8 Planogram

Planogram is tool used by the retailer, which helps the retailer to determine the location of the

merchandise within a department. It is a diagram that visually communicates how

merchandise physically fit on to a store fixture or window, to allow for proper visibility

and price point options. It helps in listing the exact number of square feet used for various

products and exact number of products to be displayed in a particular area.

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64
Planogramming benefits:

• Improved sales presentation and closure results

• Increased consumer appeal of product displays

• Better brand awareness through consistency

• Improved efficiency of shelf space allocations

• Improved financial performance of assortments

• Faster more accurate replenishments

• Quicker inventory resets

• Much better marketing through targeting displays

1.10 MERCHANDISE AND FIXTURE DISPLAY

RECOMMENDATIONS

Goods can be effectively displayed on a variety of fixtures such as gondolas, tables, cubes,

mannequins, waterfalls and other racks, display cases and manufacture point of purchase

displays. A fixture should not only complement the merchandise, but also the

atmosphere created in the store.

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Each fixture should present the merchandise to the public and thereby act as a silent

salesperson. One of the most common fixtures in stores is gondolas - movable shelving

approachable from all sides which are used in self service retail stores, to display

merchandise. They can be lined up in rows as in grocery, hardware and drug stores or used

singly to create an island.

1.11 Basic rules for fixture placement

Outlined below are some basic rules for fixture placement. These are not absolutes, but rather

guidelines that fit in well store set-up and customer traffic patterns.

• Three feet distance between racks must be allowed

• The aisle leading to directly to the fire exit is considered a major aisle. The fire exit must

not be blocked with fixtures and extraneous materials.

• A well-planned, geometric aisle pattern works best to maximize sales.

• Aisle displays must be placed on an island rather than wing fixtures.

• When placing racks, progress from small (sized or capacity) fixtures at

aisles to large fixtures near the back walls. When working with hard goods,

place cubes in the front with gondolas to the rear of the department or store.

• Higher priced stores require fewer fixtures because there is less stock available. T-stands

and four ways can be used to create an illusion of space

and selective goods. This feeling is necessary to sell higher-priced goods.

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• 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.

1.12 Interior Signage

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

that communicates a sales message to the customers can make up for lack of sales personnel.

A good point-of-purchase sign, properly placed, acts as a salesperson without wages. Signs

were originally used to identify a store, name various departments, and announce sales.

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and sale merchandise. Although their primary purpose was these, now signage commonly

advertises vendors, colours, quality and prices. They can also be used to explain customer

benefits and describe merchandise features.

1.13 Errors commonly occurring in display

There is no thumb rule as to how much merchandise should appear in an area.

However one major consideration is the price of the merchandise. The more expensive item

the fewer it is displayed. Some precautions must be taken so that the display area is not

• Cramped up with many similar items

• Many different items , such that any selling message is lost

• Appear aesthetically offensive to the customer

1.13.1 Too little merchandise

A window or display area with too little merchandise makes a store appear to be going out of

business or indicates to the customer that the establishment is less than prosperous.

Generally the lack of merchandise on the display is that the merchandise has been sold and it

has not been replaced.

If the items needed for display are unavailable then the display dimensions have to be

reduced to make it appear in proportion with the available merchandise. Poor planning is also

one of the main reasons.

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1.13.2 Lack of underlying theme

Merchandise is often placed in a space with no selling message, theme or motive. Regardless

of the type of the merchandise used, the location or the store type, the display needs a strong

theme. The consumer should be able to understand the concept presented by the display in a

few seconds.

1.13.3 Length of time for a display

As a standard many interior displays are changed daily because they are effective and

merchandise sold directly from them needs to be replaced. Large window displays may be

changed as often as two times a week or as infrequently as every other week. This generally

depends on the season and the length of time a current store theme has been planned. An

example of a display that might stay longer would be an unusual festive display. The expense,

time and planning of a display is also used as a guideline for frequency of change. Special

window and internal store promotions have a longer display life.

1.13.4 Limited or No Display Budget

An empty display area generally indicates the declining path of sales. Display areas are often

budgeted with the left over; after all other monetary needs have been fulfilled. This generally

means that there is little or no budget for the display.

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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.

1.13.5 Lack of attention to Detail

Making a good impression is very much important. Hence paying attention to small detail is

an important factor. This is generally the first thing the customer notices. Below 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

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or the point of emphasis is in the wrong place.

1.14 Use of other sensory organs for

merchandising

1.14.1 Use of music

The store image and the mood of the customers can be changed dramatically by the use of

music. Music establishes moods, helps to motivate the subconscious mind and create long

lasting impression on the customers. Specific music for particular merchandise can create a

good shopping experience and can be an important tool for creating a brand.

1.14.2Perfumes and Scent

The other use of stimulation can be use of stimulating the olfactory lobe of the brain. i.e. use

of perfumes and scents. Layout having fresh breads and buns, can entice the customers by the

aroma. Segments of the store having soaps and toiletries can enchant the customers by the

use of perfumes and scents. A pleasing scent can create a wonderful ambience and add to the

customers shopping experience. Scent can also be a major factor in determining which

product to buy.

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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.

2.Literature Overview:

Visual Merchandising is an important component in atmospheric management. It

includes both store exterior and store interior. Store exterior includes window display

retail premises and facade whereas store interior includes store layout, fixtures and

fittings, wall display and store highlights.

Also there are components governing both store exterior and interior, which include

colour coordination, lighting design, mannequin selection and the application of design

principles. If retailers want to project the best side of its company, a good selection of

the visual merchandising with a detailed consideration of proper cooperate expressions

are vital.

Visual merchandising helps maintaining the overall image of a retail store in consumers

„mind (park et.al.1986).

Visual merchandising focuses on various aspects of consumers, which include sensory

pleasure, affective pleasure and cognitive pleasure (Fiore, Yah and Yoh,2000).

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Sensory aspect includes personal feeling of consumers, such as response to temperature and

noise, feeling crowded in a store (Grossbart et.al 1990: Hornik, 1992; Ko & Rhee, 1994).

Store related and product related information can also be acquired from store environment

(Baker et.al 1994).Also window display plays a crucial role in affecting store entry decisions

as it is very important information cue for consumers (Bettman et.al, 1998).A little research

about the inter relationship between the importance of store aesthetics and consumer decision

process, as a result, the aim of this study is to look into this specific relationship.

3.RESEARCH METHODOLOGY

Research Methodology

3.1 Title: A Study on Impact of visual merchandising on sales in Big Bazaar, Mugalsarai.

3.2 Primary objective:

• To study the impact of visual merchandising on the buying behavior and the buying

decisions of the customers.

3.3 Secondary objectives:

• To explore the impact of layout in a retail store on customer buying behaviour.

• To explore if buying choices are made before reaching the store or based on visual displays

in the store.

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• To analyze whether customers can recall the products displayed by visual merchandising or

not.

3.4 Sampling Plan:

• Target Population: Individuals between the age group of 18 to 70 years will be chosen

as the target population. The people under this age group who are frequent visitors and

shoppers to Big Bazaar, Mugalsarai.

• Sampling Procedure: The sampling procedure using here is simple random sampling.

Simple random sampling means each sample in the population has equal chance to be picked

up for the study.

• Sample Size: A sample of 150 customers can be taken in order to carry the study.

• Sample Elements: The sample elements will consist of people who visit and shop from

Big Bazaar.

3.5 Data Collection:

Data is the information which will be collected from various sources. It concerns with gather

accurate information about the problem.

3.6 Data collection mode:

Two methods can be used to collect the relevant data, which are essential for the study.

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• Primary Data: Data will be collected to obtain desired information through structured

questionnaire.

• Secondary Data: Data is collected through books, magazines, newspapers and

internet...etc

3.7 Plan of Analysis:

The collected data from both primary and secondary sources will be tabulated in the form of

tables. The data collection through questionnaire will be analyzed in detail and divided into

various categories of preferences. By giving inputs to various methods in SPSS I can observe

the impact of visual merchandising on buying decisions of customers. The analysis of data

using SPSS will give the meaningful conclusion for my research.

3.8 Limitations of the research:

There are a few limitations to the study that may arise due to the following reasons:

1. Reluctance of the sample to give a proper feedback

2. The study is confined just to Mugalsarai.

3. Language barrier prevailed.

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 4.ANALYSIS AND INTERPRETATION OF DATA

4.1 Frequency of visitors to Big Bazaar

FREQUENCY MALE % FEMAL % TOTAL

More than once in a 23 28.7 25 35.7 48

Week
Once in a Week 19 23.7 16 22.8 35

Once in a Month 15 18.7 24 34.2 39

Only at Offers Day 14 17.5 04 5.7 18

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 Very Rare 09 11.2 01 1.4 10

Total 80 70 150

Analysis:
0

It is observed that 55.3% of samples are coming the store once in the week, so we need to

concentrate on daily consumables.34.2% female are coming once in a month, so to attract these

people we need to concentrate on provisions.17.5% of male samples are interested to come only

on offer days, so it will be helpful to concentrate slightly on male belongings on offer Days

4.2 FACTORS TELLS ABOUT NEW PRODUCT ARRIVAL IN THE

STORE

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 4.2 Factors tells about new product arrival in the store

Search By Own; 4.00%

Through Announcement; 20.00%

Through Display; 52.00%

Through Offers; 24.00%

Analysis:

From the above interpretation it was observed that 52% of the arrival information is coveyed by the

Display

Only 24% of the samples came to know through different offers.

So with that i can conclude that Visual merchandising is making awareness about new product better

than 4.3
offers offered for the
Perception customers
about on new
following products
the displays and laout to find a product.

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

Disagree; 6.00% strongly disagree; 1.00%

Agree; 35.00%

Strongly Agree; 58.00%

Analysis:

From the above analysis it can be observed that 58% samples were agreed that they follow displays

and layout to find product.

So it is necessary to maintain excellent displays for products and flexible layout for store.

Then it will be very helpful to the customers to find the products easily and impulsive buying may

happen with excellent display of products. This will help in raising the sales

4.4 Action after entering the store

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 4.4 Action after entering the store

Go Straight to the product they want; 9.48%

Walk through the store as it leads them; 19.91%

Seek the help for SalesPerson; 56.87%

Random Pick Product; 13.74%

Analysis:

It can be inferred as 57% of the samples are stated that “they walk through the store as it leads

them”.

So from the above I can conclude that it will be the trick of Visual merchandising to convert the

people who walk through the store as customers. So store should concentrate on excellent way of

merchandising to attract customers and to improve sales of the store.

4.5 Most Relevant Activity Regarding Shopping

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 4.5 Most relevant activity regarding shopping
I bought what I Come to buy
Ibought something more than what I come from
I bought lot more than what I come for
I dIdn't find what I needed, so I didn't buy anything

28.00%
22.00%

5.00%

45.00%

Analysis:

From the above it can be observed that 45% samples bought more than what exactly they came for.

That may happen with the impulsive buying, offers.

So visual display of the sign boards and products are crucial to create an intention to buy the

product with offer or with good display.

4.6 Factors effecting Buying Behaviour

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 4.6Factors effecting buying behavior
Attractive Display Of Product Good Product
When I see good offers I buy more No Specific Reason

12.84%

16.06%

55.05%

16.06%

Analysis:

From the above it can be observed that 16% samples were agreed that when they see good deal

they will buy.

So it is important to display the offers and promote them as much possible.

55% was influenced by attractive display of the product. So we should concentrate on product

display in the store which can influence the buying decisions of customers.
4.7 Experience of Impulsive Buying in the Store

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 4.7Experience of impulsive buying in the store
YES NO
22.00%

78.00%

Analysis:

From the above it can be observe that 78% samples experienced impulsive

buying in the store.

So there is a possibility to implement some techniques to grab those

customerswho tend to impulsive buying inside the store.

4.8 Place of Impulsive Buying

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 4.8Place of impulsive buying
Near by Cash Counter while Billing Promo Area
Where Promotion are Too Attractive
16.07%

21.43%

62.50%

Analysis:

From the above it can be observed that 63% samples made impulsive buying at attractive promo

areas.

21% of the samples stated that they will do impulsive buying at

promo areas.

So it is necessary to concentrate on promotions to achieve impulsive buying inside the store.

4.9 Perception About Product Arrangement

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 4.9Perception about product arrangement
Excellent Good Average Bad

33.00%

6.00% 2.00%

59.00%

Analysis:

From the above it can be observed that 92% of the samples agreed that the product arrangement

is acceptable.

8% samples stated that it is poor.

So it is important to arrange and display the product properly. So proper visual merchandising is

required for better results.

4.10Perception about change in buying decisions with the influence of

display

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 GENDER

MALE % FEMALE %

STRONGLY AGREE 21.3 15.7

AGREE 33.8 44.3

NITHER AGREE NOR 23.8 20.2

DISAGREE
DISAGREE 15 14

TOTAL 93.9 93.5

Analysis:

From the above it can be observed that most samples were agreed that visual display of the

product influenced their buying decisions.

So it is very important to improve the quality of the displays and presentation of the product to

attract more customers.

This will defiantly helpful in creating an identity in customer‟s mind about the store.

4.11 Shopping Experience at Big Bazaar, Mugalsarai

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 Dissatisfied

Nither Satisfied Nor Dissatisfied

Satisfied

Highly Satisfied

0 10 20 30 40 50 60 70

MALE FEMALE

Analysis:

From the above it can be observed as most of the samples are satisfied with the service.

5.Factors Noticed After Analysis For Visual Merchandising

 The position of dummies should be changed frequently.

 There should be adequate light in the store. Change the burned out lights immediately.

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 Don’t stock unnecessary furniture at the store.

 Choose light and subtle color’s for the walls to set the mood of the walk-ins.

 Make sure the signage displays all the necessary information about the store and is
installed at the right place visible to all.

 The customers should be able to move and shop freely in the store.

 The retail store should be well ventilated.

6.FINDINGS AND CONCLUSIONS

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6.1 FINDINGS AND CONCLUSIONS

From the Analysis of the results and based on the objectives of the study the following

findings can be ascertained:

 55 percent customers are influenced to buy more than they tend to buy, the main reasons

for that are attractive product display and good deal/offer with

the product.

 63percent of the customers came to know about the new product arrival through the

display of the product and through the discount offers.

 Out of hundred and fifty samples 74percent preferred to follow the layout of the store to

find the product.

 58percent of the samples are intended to follow the layout of the store as it leads them.

 By effective presentation of the sign boards/drop downs and with promo activities like

melas & celebrations 60percent people came to know about different offers in the store.

 40percent of the customers changed their buying decisions by the influence of product

arrangement and promotional signage.

 87 percent customers are able to recall the product after their shopping. So it is stating that

the visual merchandising of the store is good.

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 70percent of the customers are tending to do impulsive buying nearby promo areas and

where the promotions are too high in the store.

 Out of hundred and fifty samples 57percent of customers had the perception that the

product arrangement in the store is good and it

influenced their buying decisions.

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

store.

 Fashion department is the one which is contributing significantly in both sales and margin

to the store.

 Walk-ins are more on Wednesday bazaar, weekends and celebrations like birthday

celebrations, big day celebrations, melas…etc

Especially Koryo’s small appliances, Tasty treat‟s mango juice, pure & Fresh’s Ghee…etc

 80 percent of customers are satisfied with the shopping experience at Big single roof made

their shopping easier and the offers they are getting in the store are satisfying its tag line “Is

se sastha aur acha kahin nahi”.

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 7.SUGGESTIONS:

Some of the suggestions given by the customers are as follows

 It is necessary to improve the product arrangement and offers to get

attention of the remaining 45percent customers.

 Customers have observed that Big Bazaar needs to improve their ambience with

suggestions regarding improvement in lighting, fragrance in fashion department.

7.1 ADDITIONAL SUGGESTIONS:

 The layout of the department stocking furniture should make the furniture arrangement

such that it mirrors the way the customers would arrange it at their own homes Rotating table

with different colours can be used in kids fashion to attract and create pleasant environment

in the store.

 Few customers are in the perception that some product‟s price range in Big this issue.

 Parking place for vehicles is comparatively very less; it will become a

serious problem while the store‟s walk-ins are in growth stage.

People have good knowledge about products in Big Bazaar, Mugalsarai.

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Bazaar, Mugalsarai. They used to say that wide range of availability under the Bazaar,

Mugalsarai are higher than the market price; there is a need to focus on.

 It is necessary to concentrate on product display and placing banners which tells about

offers particularly on the special days like celebrations time, melas…etc

8. RECOMMENDATIONS

 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.

 Creating a proper E-zone (electronic zone) will increase the revenue as there is no proper

e-zone

 Plan on changing the displays at least weekly.

 Timely updating and changing Signage, shelf edge label, offer banners and headers to

avoid dispute in store with customers

9. BIBLIOGRAPHY

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Books:

 Kotler, Philip and Kevin Lane Keller. Marketing Management. New Delhi:Prentice-Hall of

India Private Limited, 2007

 Pradhan, Swapna. Retail concepts, 2006

 Sheikh, Arif and Kaneez Fatima. Retail Management. New Delhi:

Himalaya Publish House, 2008

 "IT Happened in India" by kishore Biyani

10. REFERENCES:

 www.rai.net.in

 www.pantaloon.com

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 www.retailyatra.com

 www.futurebazaar.com

 www.futuregroup.com

 www.Retailerslideshare.net

 www.supplychaintoday.com/info007.html

 www.scribd.com

 www.retailchoice.com

 www.theretailbulletin.com

 www.globalretailbuiness.com

 www.wikipidea.com

 www.owlers.com

 www.ibf.org

11. Appendix

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APPENDIX-1

QUESTIONNAIRE

Hi! Hope you enjoyed the shopping. It would be really great if you can help me make

shopping effective and entertaining. Please help me by filling out this questionnaire and be a

part of my Marketing Research project.

Name of the Store: Big Bazaar Mugalsarai.

1. How often do you visit this store?

 More than once in a week

 Once a week

 Once a month

 Only on offer days (Big days, Wednesday bazaar)

 Very rarely

2. How do you come to know about new product arrival in the store?

 Through Display of the product

 Through offers

 Through announcements

 By enquiring salesperson

 You will search by your own

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3. Do the way of product arrangement & display in the store attract you?

 Always

 Mostly

 Sometimes

 Rarely

 Never

4. Generally I follow the displays and layout to find a product.

 Strongly Agree.

 Agree

 Neither agree nor disagree

 Disagree

 Strongly Disagree

5. When I enter the store....

 I go straight to the products which I want

 I walk through the store as it leads me

 I do not follow any pattern. I just walk randomly and pick up products

 I seek the help of salesperson to navigate in the store

 Others (Please specify) _______________________________

6. While shopping, how do you come to know about the offers for the day in

the store?

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(Tick only one option which is most relevant)

 Sign boards/drop downs

 promo areas (Melas, Celebrations)

 Sales People

 Pamphlets

 Announcements in the store

7. Which of these is most relevant with regard to your shopping?

 I bought what I came to buy. Nothing More.

 I bought a little more than what I came for.

 I bought lot more than what I came for.

 I bought everything that attracted me.

 I did not find what I needed. So I did not buy anything.

8. If you have bought some products other than what you came to buy, which

of the following factors made you buy more? (Tick as many as applies)

 Attractive display of the product

 Good Product

 Information provided by salesperson

 When I see a good deal, I tend to buy more than that I intended to buy.

 No specific reason, I just bought because I liked the Product

 I did not buy anything out of list

9. Have you ever experienced instant/unplanned buying in store ?

 Yes

 No

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If “yes”, which factor influenced you more to take instant/unplanned

buying decision?

 Influence Product arrangement

 Placing of the product

 Influence of Promotional Signage

 Excitement in trying a new product

 Influence of mannequin display

10. At which place you tend to do more impulsive buying in the store?

 Nearby cash counter while waiting for payment

 Promo area (Melas, celebrations)

 Nearby coffee bar

 Where promotions are too attractive in the store

11. What do you feel about the product arrangement in the store?

 Excellent

 very good

 Good

 Average

 Poor

12. Visual display/Presentation of products influences my buying decision in

the store.

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 Strongly Agree.

 Agree

 Neither agree nor disagree

 Disagree

 Strongly Disagree

13. How do you feel that the following factors influence your buying decisions

in a store?

Rate the following from 1-5.

 [ ] Locating products through signs, graphics etc

 [ ] Lighting

 [ ] Music

 [ ] Fragrance

 [ ] Colours

14. Can you recall one product based on the display which was prominently

promoted in the store?

Please specify__________

15. On the whole how was your shopping experience with Big Bazaar?

 Highly satisfied

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 Satisfied

 Neither satisfied nor dissatisfied

 Dissatisfied

 Highly dissatisfied

Any suggestions to improve the display and visuals in the

store_________________________

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