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Visual Merchandising at Big Bazaar

MPBIM 2009
A Project Report on
VISUAL MERCHANDISING IN THE RETAIL SECTOR
(A Case Study of Best Practices and Effective Strategies of
Visual Merchandising at Big Bazaar, Bangalore)
A Dissertation submitted in partial requirements for the award of MBA
Degree of Bangalore University
By
DILIPA S NAIK
Reg No: 07XQCM6021
MBA Fourth Semester
(2007-2009 Batch)
M.P.Birla Institute of Management
Bangalore-560001
Under the Guidance and Supervision of
Dr K V Prabhakar
Senior Professor
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M.P.Birla Institute of Management, Bangalore Visual Merchandising at Big Bazaar
MPBIM 2009
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DECLARATION
I hereby declare that this dissertation entitled Visual Merchandising in Retail
Sector (Big Bazaar, Bangalore) is the result of my own research work carried out
under the guidance and supervision of Dr. K V Prabhakar, Senior Professor, M P

Birla Institute of Management, Bangalore. I also declare that this dissertation has
not
been submitted earlier to any Institute/University/Institution for the award of any
degree or diploma or similar title.
Place: Bangalore
Date:
Visual Merchandising at Big Bazaar

(Dilipa S Naik)

MPBIM 2009
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PRINCIPALS CERTIFICATE
This is to certify that this dissertation entitled Visual Merchandising in Retail
Sector (Big Bazaar, Bangalore) is the result of research work carried out by
Mr. DILIPA S NAIK under the guidance and supervision of Dr. K V Prabhakar,
Senior Professor, M.P. Birla Institute of Management, Bangalore
Place: Bangalore
Date:

(Dr. Nagesh S. Malavalli)


Principal
Visual

Merchandising at Big Bazaar


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GUIDES CERTIFICATE
I hereby state that the dissertation entitled Visual Merchandising in Retail Sector
(Big Bazaar, Bangalore) is the result of research investigation carried Out by Mr.
DILIPA S NAIK under my guidance and supervision.
Place: Bangalore
Date:
Merchandising at Big Bazaar

(Dr. K V Prabhakar)
Senior ProfessorVisual

MPBIM 2009
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ACKNOWLEDGEMENT
I express my gratitude to Dr. Nagesh S. Malavalli, (Principal, M. P. Birla Institute of
Management) for providing me with the academic support.
I extend my sincere thanks to Dr. K V Prabhakar, Senior Professor, M.P.Birla
Institute of Management, Bangalore for guiding me effectively

Dilipa S Naik Visual Merchandising at Big Bazaar


MPBIM 2009
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TABLE OF CONTENTS
Contents
EXECUTIVE
SUMMARY ................................................................................................... 9
CHAPTER 1INTRODUCTION ...................................................................................... 10
CHAPTER 2 - INDUSTRY
PROFILE ................................................................................. 13
CHAPTER 3 - VISUAL MERCHANDISING ....................................................................
27
CHAPTER 4 - COMPANY
PROFILE .............................................................................. 38
PART A- THEORITICAL SETTING................................................................................
42
CHAPTER 5 - Significance of Research ....................................................................
43
CHAPTER 6 - Literature
Review.................................................................................. 44
Chapter 7 Research Gap .......................................................................................
46

CHAPTER 8- Problem Statement and Research Objective.................................. 47


CHAPTER 9 Hypothesis.............................................................................................. 48
CHAPTER 10 - Research Methodology ....................................................................
49
CHAPTER 11 - RESEARCH
LIMITATIONS ..................................................................... 50
PART B - SURVEY FINDINGS .....................................................................................
51
CHAPTER 12 - Data Analysis & Inference ................................................................
52
CHAPTER 13 - Hypothesis
Testing .............................................................................. 82
CHAPTER 14 - Major Findings of Research ..............................................................
84
PART C - RECOMMENDATIONS...............................................................................
86
CHAPTER 15 Recommendations ............................................................................ 86
CHAPTER 16 Conclusion........................................................................................... 92
Annexure ................................................................................................................
...... 93
SELECT
BIBLIOGRAPHY ................................................................................................ 94
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QUESTIONNAIRE .....................................................................................................
...... 96
EXPALANATION TO RESEARCH INSTRUMENT USED................................................
100
Directions for further Research................................................................................
101

List of Tables
Table 1 frequency of
visit ........................................................................................ 52
Table 2 opinion on store
display ............................................................................ 55
Table 3 opinion of ambience of store ..................................................................
57
Table 4 opinion of store design..............................................................................
59
Table 5 opinion of color & lighting ........................................................................
61
Table 6 opinion of props & decorative items ......................................................
63
Table 7- opinion on fixtures & hardware .................................................................
65
Table 8 opinion of signs in the
store ...................................................................... 67
Table 9 opinion on convenience in reaching for items in rack ....................... 69
Table 10- opinion about soft drinks, biscuits for casual customer....................... 72
Table 11- opinion on whether window display should be changed weekly.... 74
Table 12- opinion on space between aisles...........................................................
76
Table 13 opinion on seasonal & high margin merchandise locations............ 78
Table 14 opinion on overall professionalism of the store...................................
80
Table 15 - Hypothesis
Testing..................................................................................... 83 Visual
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List of Charts
Figure 1 Retail Sales in
India....................................................................................... 16

Figure 2- Projected Retail in India.............................................................................


17
Figure 3 demographics............................................................................................ 19
Figure 4 - Frequency of visit to Big Bazaar ..............................................................
53
Figure 5 - opinion of store
dispaly............................................................................. 55
Figure 6 - opinion of ambience of Big Bazaar........................................................
57
Figure 7 - opinion of store
display............................................................................. 59
Figure 8 - opinion of color & lighting........................................................................
61
Figure 9 - opinion of props & decorative items......................................................
63
Figure 10 - opinion of fixtures & hardware ..............................................................
65
Figure 11 - opinion of signs at Big
Bazaar ................................................................ 68
Figure 12 - opinion on convenience in reaching for items in the rack .............. 70
Figure 13 opinion on chocolates, biscuits located at exit doors for casual
customers ...............................................................................................................
...... 72
Figure 14 - opinion on window display ....................................................................
74
Figure 15 - opinion on space between the aisles..................................................
76
Figure 16 - opinion on seasonal & high margin merchandise............................. 78
Figure 17 - opinion on overall professionalism of the store ..................................
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EXECUTIVE SUMMARY
Visual Merchandising is everything the customer sees, both exterior and
interior, that creates a positive image of the business and results in attention,
interest,
desire and action on part of the customer
There is a growing recognition of the need for an effective Visual
Merchandising. But even as it continues to grow, the understanding of Visual
Merchandising impact and effectiveness is still in its infancy.
The project deals with components of Visual Merchandising and its influence
on customer purchasing decision. The study is conducted at Big Bazaar,
Bangalore.
The study is based on how the visual merchandising components such as Color
and
Lighting, Props and Decorative items, Fixtures and Hardware, Store Design and
Display and overall ambience of the store plays a crucial role in influencing the
purchase decision making of the customer.
The methodology followed is questionnaire method with a total sample size of
100 respondents. The data is tabulated and graphically represented through,
Piecharts, Bar graph. Based on the response obtained through questionnaire
major
research findings are presented and suitable recommendations are made in
order to
improve the customer shopping experience at Big Bazaar. Visual Merchandising
at Big Bazaar
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The ambience of the store is a very important element in Visual
Merchandising as it influences consumers in purchase decision. . A customer is
highly
influenced by the look and feel of the store Visual merchandising when used
effectively is no doubt a powerful tool to entice customers in making a purchase

decision.. Visual merchandising will lead to impulse purchase of the product.


CHAPTER 1 INTRODUCTION
RETAILING Visual Merchandising at Big Bazaar
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RETAILING
Retailing consists of those business activities involved in the sales of goods
and services to consumers for their personal, family or household use. The field
of
retailing is both fascinating and complex. It has enormous impact on the
economy, in
distribution, and its relationship with companies that see goods and services to
retailers for their resale or use. Retailing is the final stage in the distribution
process, it
does not necessary have to include a .retailer, Manufacturers, importers, nonprofit
firms, and wholesalers, and other organization are also considered as retailers
when
they sell goods and/or services to final consumers. Competition in the retailing
scene
has intensified manifold for the past few decades, generally as a consequence of
new
technologies, more sophisticated management practices and industry
consolidation.
These trends have been especially pronounced in the food industry.
There has been a significant amount of studies that examine the issues of retail
channel management and retail marketing strategies to tackle the fierce
competition in
existing retail channels in food industry. As in all other industries, the ultimate
decider of the eventual success of an alternative retail channel is the
CONSUMER.
Consumers refer to individuals who buy products and services for themselves

or on behalf on their households. They are invariably either users of these


products or Visual Merchandising at Big Bazaar
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services or responsible for the welfare and well being of those who are. Since
consumers are extremely crucial for retailers, an understanding of consumer
behavior
is an essential prerequisite of successful retail marketing strategy and one of the
most
fundamental principles of in exerting influence on consumer patronage decision
process. Without customer focus, marketing planning can easily be dominated by
the
actions of competitors or internal influences. The success of a retailer depends
on how
well he/she selects, identifies and understands his customers.
The feasibility of new retail channels is also highly dependent on retailers.
Ability to select the type of consumer segments to reach (mass markets, market
segment, or multiple segments), to identify the characteristics and needs of the
specific target market and understanding how consumers make decisions.
According
to Peter McGoldrick, the most successful examples of innovation and evolution
in
retail formats are retailers that respond accurately and profitably to previously
unsatisfied needs.
TYPES OF RETAIL OUTLETS
The emergence of new sectors has been accompanied by changes in existing
formats as well as the beginning of new formats:
Hyper marts, typically 8,000 sq.ft and more
Large supermarkets, typically 3,500-5,000 sq. ft.
Mini supermarkets, typically 1,000-2,000 sq. ft.

Convenience stores, typically 750-1,000sq. ft.


Discount/shopping list grocery Visual Merchandising at Big Bazaar
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CHAPTER 2 INDUSTRY PROFILE
INDIAN RETAIL SCENARIO Visual Merchandising at Big Bazaar
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RETAIL INDUSTRY IN INDIA
The retail sector in India is witnessing a huge revamping exercise as
traditional markets make way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores. Western-style malls have
begun
appearing in metros and second-rung cities alike introducing the Indian
consumer to a
shopping experience like never before. The sector is at an inflexion point where
the
growth of organised retailing and growth in the consumption by the Indian
population
is going to take a higher growth trajectory. The Indian population is witnessing a
significant change in its demographics. Organised retail is on all time high in
India.
The growth is boosted by various factors such as availability of professional
practices,
media proliferation, various brands which are gaining value thereby enhancing
industry growth, availability of various funding options, regulations like VAT
implementation to make processes simple, sea change in demographics of
country and
international exposure.
The Indian retail market, which is the fifth largest retail destination globally,

was ranked second after Vietnam as the most attractive emerging market for
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investment in the retail sector by AT Kearney's seventh annual Global Retail
Development Index (GRDI), in 2008. The share of retail trade in the country's
gross
domestic product (GDP) was between 810 per cent in 2007. It is currently
around 12
per cent, and is likely to reach 22 per cent by 2010.
In a joint study recently conducted by ASSOCHAM and KPMG, the following
findings were revealed:
The total retail market size in India in 2008 was estimated at US$ 353 billion.
The annual growth of the retail market in India is expected to be around 8 per
cent.
The total retail market size in India is likely to touch US$ 416 billion by 2010.
The present share of organised retail sector is estimated at 7 per cent.
The estimated annual growth of organised retail sector is 40 per cent.
The size of organised retail sector by 2010 is estimated to reach US$ 51
billion.
The estimated share of organized retail in total retail by 2010 is 12 per cent.
The investment into modern retailing formats over the coming 4-5 years is
expected to be around US$ 25-30 billion.
Retail Sales in India Visual Merchandising at Big Bazaar
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Figure 1 Retail Sales in India
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Projected Retail in India Visual Merchandising at Big Bazaar

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Figure 2- Projected Retail in India
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Advantage India
Against the backdrop of an accelerating modern retail revolution, India offers
to be an attractive destination for global corporations and leading retailers
seeking
emerging markets overseas. India presents a significant market, with its young
population just beginning to embrace significant lifestyle changes.
Rapid Economic Growth
The fast and furious pace of growth of the Indian economy is the driving force
for Indian consumerism; with the Indian consumers confident about their
earnings and
are spending a large portion of their high disposable incomes.
Projections by analysts suggest that India has the potential to be labelled the
fastest-growing economy and outpace the developed economies by 2050.
Analysts
predict India to sustain an average GDP growth rate of 5 per cent till the mid of
this
century, with India projected to outpace the other developed economy markets
by
2050.
The average annual growth rate for 1994-2004 was pegged at 6.1 per cent,
second only to China. The more recent growth rates of over 9 per cent posted for
India, promise a continued robust growth story. Private consumption accounted
for 62
per cent of Indias GDP in 2004-05, comparable to most of the leading
economies

around the world.


The Young India
Against the backdrop of an ageing world, India possesses the advantage of
having a largely young population. 35 per cent of Indias population is under 14
years
of age and more than 60 per cent of the population is estimated to constitute
the
working age group (15-60) till 2050. Two-thirds of Indian population is under 35,
with the median age of 23 years, as opposed to the world median age of 33.
India is
home to 20 per cent of the global population under 25 years of age. Visual
Merchandising at Big Bazaar
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This trend is projected to continue for the next decade, with the share set to
reach its maximum in 2010. The large proportion of the working-age population
translates to a lucrative consumer base vis--vis other economies of the world,
placing
India on the radar as one of the most promising retail destinations of the world.
Figure 3 - demographics
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Potential untapped market
India ranks first, ahead of Russia, in terms of emerging market potential and is
deemed a Priority 1 market for international retail. Organised retail penetration
is
on the rise and offers an attractive proposition for entry of new players as well as
scope for expansion for existing players.
India is home to a large base of consumers with annual incomes ranging from

US$ 1,000 US$ 4,700, comprising of over 75 million households. A steadily


rising
percentage of rich and super rich population and impressive disposable incomes
offers
a spectrum of opportunities, spanning from rural retailing to luxury retailing.
The
impressive retail space availability and growing trend of consumerism in the
emerging cities and small towns add to the market attractiveness.
Abundant availability of skilled Labour
India has a vast resource base of talent and skilled labour. Over 37,000,000
students were enrolled in about 150,000 pre-college institutes and over
11,700,000 in
14,000 higher education institutions in 2005-06. With English being the language
for
business in India, the language skills of the Indian workforce score higher than
that of
emerging economies. Retail Management is a sought after education stream
amongst
students, with over 15 premier institutes offering specialised courses in Retail
Management.
The great Indian consumer market is still going strong. The ETIG analysis
carried out by the Economic Times revealed that most mass consumer goods and
service in India were not much affected by the global economic slowdown.
Despite
the inflation experienced during the period, the second-quarter results of leading
70
consumer-related firms revealed that their aggregate revenues increased by 8.5
per
cent during the September 2008 quarter over the same period in 2007. Even
though
this was a tad lower than the 9 per cent growth posted during the first quarter of
2008-Visual Merchandising at Big Bazaar
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09, it was a lot higher than the 7 per cent registered during the previous three
quarters
for these firms.
Despite the global economic slowdown, Indian retailers are still optimistic
about the India growth story. The Indian economy is more stable than other
economies across the world and one must not confuse India with the rest of the
world. With the 30-40 per cent drop in retail rentals, Indian retailers are a happy
lot.
In fact, retailers are also foreseeing further drops in rentals in 2009 and they
are
optimistic about their expansion plans for this year.
India has one of the largest number of retail outlets in the world. A report by
Images Retail estimates the number of operational malls to grow more than twofold,
to cross 412, with 205 million square feet by 2010, and a further 715 malls to be
added by 2015, with major retail developments even in tier-II and tier-III cities in
India.
Even as the organised retail market is starting to take off, there is an associated
surge in branded discount outlets in India. Top realtors and local retail chains are
developing malls in regional boroughs, specifically to sell premium branded
goods.
Government Initiatives
The government has taken various measures to promote and encourage
investment in the Indian retail industry.
The Government allows 100 per cent FDI in cash and carry through the
automatic route and 51 per cent in single brands. Besides, the franchise route is
available for big operators. To further attract global retailers, the economic
survey
200708 has suggested a share for foreign equity in all retail trade and 100 per
cent in

respect of luxury brands and other specialised retail chains. Visual


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However, many industry experts feel that the Indian tariff structure has to be
streamlined as India levies one of the highest duties and taxes on imported
luxury
goods. This fuels the growth of the grey market and duty-free purchases, even as
the
stringent regulatory environment encumbers investment by foreign brands.
Organizational characteristics
Given the traditional and underdeveloped state of the Indian retail sector, the
organizational characteristics of retail enterprises are rudimentary. Most of them
belong to independent enterprises in the form of small family businesses.
Cooperatives have been present in India for several decades, spurred by the
encouragement given by the Indian Government, which viewed the cooperative
movement as an integral component of its erstwhile socialist policies. However,
since
the 1990s, there has been a reduction in government support for cooperatives.
In
2002, there were about 35,000 outlets run by cooperatives.
Economic liberalization, competition and foreign investment since the 1990s
led to a proliferation of brands with both foreign and Indian companies acquiring
strong brand equity for their products. Hence, franchising emerged as a popular
mode
of retailing. Sales of franchises grew at a rapid pace of 14% per annum over the
review period.
India represents an economic opportunity on a massive scale, both as a global
base and as a domestic market. Regulatory controls on foreign direct investment

(FDI) have relaxed considerably in recent years. However, while retailing


currently
remains closed to FDI, this is an area of ongoing debate. This means that foreign
retailers and consumer goods manufacturers can only participate in the retail
market
through indirect access strategies, such as wholesaling, franchising or licensing,
or by
having a manufacturing base in India, or in businesses upstream of retailing.
However, the Indian government has indicated in 2005 that liberalization of
direct
investment in retailing is under active consideration. Visual Merchandising at Big
Bazaar
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Price controls have been progressively liberalized since 1992, but a small
number of items remain fully controlled. There are also extensive controls on
packaging, labelling and certification.
Estimates of the size of the retail sector vary, with recent calculations putting
the annual value of Indian retailing anywhere between US$180 billion and
US$292
billion in 2003. The retail sector is largely made up of what is known in India as
the
unorganized sector. This sector consists of small family-owned stores, located in
residential areas, with a shop floor of less than 500 square feet. At present the
organized sector (everything other than these small family-owned businesses)
accounts for only 2 to 4 percent of the total market although this is expected to
rise by
20 to 25 percent by 2010.
Many of the companies surveyed believe that the potential size of this market
is underestimated. They consider that there are considerable opportunities for

organized retailers in the kind of rural territories that many companies have
failed to
address. A critical issue is how fast and how far the consuming class will grow.
This
depends both on the growth of personal disposable income and the extent to
which
organized retailers succeed in reaching lower down the income scale to reach
potential consumers towards the bottom of the consumer pyramid.
Companies expect retail growth in the coming five years to be stronger than
GDP growth, driven by changing lifestyles and by strong income growth, which in
turn will be supported by favourable demographic patterns. The structure of
retailing
will also develop rapidly.
Shopping malls are becoming increasingly common in large cities, and
announced development plans project at least 150 new shopping malls by 2008.
The
number of department stores is growing much faster than overall retail, at an
annual
24 percent. Supermarkets have been taking an increasing share of general food
and
grocery trade over the last two decades. Visual Merchandising at Big Bazaar
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Consumer credit will also grow, assisted by the likely fall in retail lending
rates and more efficient and consumer-friendly lending practices. Distribution
continues to improve, but it still remains a major inefficiency.
Poor quality of infrastructure, coupled with poor quality of the distribution
sector, results in logistics costs that are very high as a proportion of GDP, and
inventories which have to be maintained at an unusually high level. Marketing
and

advertising are of increasing interest and concern to consumer companies.


Indian
consumers are becoming increasingly sophisticated and knowledgeable about
products; media channels that allow companies to communicate with consumers
are
growing in diversity and reach. Foreign brands remain very powerful in India,
especially in clothing and personal care products, but increasingly brands have
to be
associated with value. Advertising is becoming a bigger part of the marketing
mix.
Companies are concerned about identifying consumer insights and the profusion
of
media channels.
Food and beverage offer the greatest organized retail growth opportunities, say
companies. The main growth opportunity in the segment is in processed foods:
rapid
growth in the processed food segment is already apparent, changing lifestyles
and
food habits are resulting in the rapid expansion of branded food outlet and caf
chains. Gemstones and jewellery represent the most significant specialist
segment of
Indian retailing. Organized jewellery retailers are increasingly offering brand
solutions to the demand for quality and value, as consumers move away from
traditional retail settings reliant on family retailers.
All companies agree that Indian consumer markets are changing fast, with
rapid growth in disposable incomes, the development of modern urban lifestyles,
and
the emergence of the kind of trend-conscious consumers that India has not seen
in the
past.
Companies expect that the next cycle of change in Indian consumer markets
will be the arrival of foreign players in consumer retailing. The very fact that
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politicians have left the issue open leads us to think the restrictions are going to
be
reviewed. And if retailing is liberalized, say companies, growth will be boosted,
but
so will competition. Indian companies know Indian markets better, but foreign
players
will come in and challenge the locals by sheer cash power, the power to drive
down
prices.
Retail Formats in India
Malls
The largest form of organized retailing today, Located mainly in metro cities,
in proximity to urban outskirts Ranges from 60,000 sq ft to 7,00,000 sq ft and
above.
They lend an ideal shopping experience with an amalgamation of product,
service and
entertainment, all under a common roof. Examples include Shoppers Stop,
Piramyd, a
Pantaloon, Big Bazaar, Reliance, Specialty stores. Chains such as the Bangalore
based
Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the
Times Group's music chain Planet M, are focusing on specific market segments
and
have established themselves strongly in their sectors.
Discount Stores
As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over
at
the season. The product category can range from a variety of perishable/
nonperishable goods.

Department Stores
Large stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. Further, classified into localized departments such as clothing,
toys,
home, groceries, etc. Departmental Stores are expected to take over the apparel
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business from exclusive brand showrooms. Among these, the biggest success is
K
Raheja's Shoppers Stop, which started in Mumbai and now has more than seven
large
stores (over 30,000 sq. ft) across India and even has its own in store brand for
clothes
called Stop.
Hyper Marts/ Super Markets
Large self-service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These stores
today
contribute to 30% of all food & grocery organized retail sales.
Super Markets can further be classified in to mini supermarkets typically 1,000 sq
ft
to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft.
having a strong focus on food & grocery and personal sales.
Convenience Stores
These are relatively small stores 400-2,000 sq. feet located near residential
areas. They stock a limited range of high-turnover convenience products and are
usually open for extended periods during the day, seven days a week. Prices are
slightly higher due to the convenience premium.
MBOS

Multi Brand outlets, also known as Category Killers, offer several brands
across a single product category. These usually do well in busy market places
and
Metros. Visual Merchandising at Big Bazaar
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CHAPTER 3 VISUAL MERCHANDISINGVisual Merchandising at Big Bazaar
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VISUAL MERCHANDISING
Visual Merchandising is everything the customer sees, both exterior and
interior, that creates a positive image of the business and results in attention,
interest,
desire and action on part of the customer
A successful retailing business requires that a distinct and consistent image be
created in the customers mind that permeates all product and service offerings.
Visual Merchandising can help create that positive customer image that leads to
successful sales. It not only communicates the stores image, but also reinforces
the
stores advertising efforts and encourages impulse buying by the customer.
Visual merchandising is a major factor often over looked in the success or
failure of a retail store. It is second only to effective customer relations. A story
can
be told that communicates to the prospective customer what the store is all
about. It
includes the dramatic presentation of merchandise as well as other important
subtle
features that create the stores overall atmosphere. Visual Merchandising at Big
Bazaar

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Eighty percent of our 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.
Some businesses maintain a minimum staff to reduce costs, which means it is
even more important for the merchandise to sell itself. Greater effort must be
spent on
merchandise displays that make it easier for the customer to find and purchase
the
items they want or need.
The basic objective for visual merchandising is a desire to attract customers to
place of business in order to sell the merchandise. Visual merchandising is
offered to
the customer through exterior and interior presentation. Each should be
coordinated
with the other using the stores overall theme.
Visual Merchandising Evolution
Every shopkeeper and merchant's primary objective is to sell merchandise.
When the giant nineteenth century dry goods establishments like Marshall Field
&
Co. shifted their business from wholesale to retail the visual display of goods
became
necessary to attract the retail customer. The store windows no longer simply
allowed
natural light to shine in the building or act as storage space for stock; they
became
important venues to attractively display the store's merchandise. Gradually, the
design
aesthetic used in window displays moved indoors and became part of the overall

interior store design, eventually displacing the importance windows altogether in


suburban malls.
The Victorian era made window displays popular and the Great Exhibition of
1851 in London established the prominence of display over the items while
commercializing the practice. In due course visual merchandising became an
inalienable part of the fashion and retail industry. Visual Merchandising at Big
Bazaar
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As far as the term Visual Merchandising is concerned, it became widespread
only in 1970 even though it was coined during the 1940s. From the late 1800s till
the
1920s, visual merchandisers were known as window trimmers. By the late 1920s,
the
window trimmers were referred to as display men, just as advertising industry
called
its people ad men. The industry is evolving and entering new domains, Visual
Merchandising is increasingly perceived as a part of the overall brand
communication
process.
COMPONENTS OF VISUAL MERCHANDISING
STORE IMAGE
Image can be described as the overall look of a store and the series of mental
pictures and feelings it evokes within the beholder. For the retailer, developing a
powerful image provides the opportunity to embody a single message, stand out
from
the competition and be remembered.
As a rule, image is the foundation of all retailing efforts. While store layout,
presentation, signing, displays and events can all change to reflect newness and

excitement from week to week, season to season, they must always remain true
to the
underlying store image. The following elements combine to form a distinctive
image
that not only reaches out and grabs the customer's attention, but also makes a
positive Visual Merchandising at Big Bazaar
MPBIM 2009
Page 31
impression within those precious few seconds. Image forms the solid foundation
for
the remaining components of Maximizing Store Impact
STORE DESIGN
Store design plays a crucial role in branding: it reflects and reinforces the
corporate image. The sights, sounds, smells and other any other aspect should
therefore reflect what the retailer brand is about and what its attributes are.
Different types of store design are:
Grid: It contains long gondolas (a free standing block of shelves used to
display goods in a supermarket) of merchandise and aisles in repetitive
pattern.
Racetrack: also known as loop. It provides a major aisle to facilitate customer
traffic that has access to the stores multiple entrances.
Free Form: also known as boutique; arranges fixtures and aisles
asymmetrically.
Visual merchandising creates a connection between the companys image and
the look of the store.
EXTERIOR DESIGN
STORE NAME
An effective store name sets the tone and provides a store's identification by
conjuring up an image in the customer's mind. An effective name is consistent
with

both the product mix and the store atmosphere.


VISUAL TRADEMARK
An identifiable trademark adds a visual image to the memory recall of a store
name, by combining words and pictures, colour, shape, typeface, texture and/or
style
to make it stand out. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 32
STOREFRONT
Storefront is also an important element, which adds to the store image like the
exterior architecture, signing and window displays.
EXTERIOR ARCHITECTURE
A store's exterior look is often referred to as the architecture, and comprises
aspects such as building materials, architectural style and detail, colours and
textures.
These elements give a lasting first impression to the consumer. It is important
that the
exterior look and feel right to the shopper.
STORE SIGN
The store sign is a vital element of the storefront and also an important
component of Visual Merchandising it helps in identifying the store In realizing
the
value of a strong storefront sign, many retailers are employing new design
techniques
which include projecting or cantilevering the store sign beyond the lease line,
adding
motion, or using three-dimensional lettering and unique lighting applications to
add
depth to the sign.
WINDOWS DISPLAY AND FLOORING

A store's exterior windows or glass storefront provide an additional


opportunity to reach out and grab the passing customer. Windows are integral in
creating a positive impression since they offer an opportunity to begin telling the
store's unique merchandise story. The flooring and the number of floors a retail
outlet
has, also make an important impact on the consumers.
INTERIOR DESIGN ELEMENTS Visual Merchandising at Big Bazaar
MPBIM 2009
Page 33
The elements of interior design can be used to create an image that matches the
desired customer profile.
FIXTURES
A major consideration in developing an appropriate store design involves the
use of fixtures. They are used to display merchandise, to help sell, to guard it
and to
provide a storage space for it. They should be attractive and focus customers.
Attention and interest on the merchandise.
DISPLAYS
Displays play an important role in a retail store. An attractive and informative
display can help sell goods. There are several principles that help ensure this
effectiveness. They are achieving balance, provide dominant point, create eye
movement etc.
MERCHANDISE PRESENTATION TECHNIQUE
Merchandise Presentation technique is one of the most important component
of Visual Merchandising. The following are the different presentation techniques:
1. Idea-Oriented Presentation: a method of presenting merchandise based on a
specific idea or image of the store.
2. Style/Item Presentation: organizing stock by style or item Visual Merchandising
at Big Bazaar

MPBIM 2009
Page 34
3. Colour Presentation: A major role in a display is that of the colour and
lighting. Aesthetic and innovative use of them can lure customers to visit more
aisles than they usually do and spend more time there.
4. Price- lining: is the technique when retailers offer a limited number of
predetermined price points within a classification.
5. Vertical Merchandising: merchandise is presented vertically suing walls and
high gondolas
6. Tonnage Merchandising: here large quantities of merchandise are displayed
together to enhance and reinforce a stores price image
7. Frontal Presentation: here the retailer exposes its much of the product as
possible to catch the customers eye
8. Fixtures: the primary purposes of fixtures are to efficiently hold and display
merchandise.
COLOUR
The psychological effect of colour continues to be important to retailers.
Colour probably more than any other factor except price, is the .stopper. that
catches
the consumers attention. Intelligent use of colour is important in store design.
LIGHTING
Proper lighting is one of the most important considerations in retail outlet.
Today lighting has become a display medium. It is an integral part of the
stores
interior and exterior design. Lighting is used to highlight merchandise, sculpt
space
and capture a mood or feeling that enhances the stores image.
CEILINGS
Ceiling represents a potentially important element of interior design. Ceiling

heights colour and material used will influence the store look.
FLOORING Visual Merchandising at Big Bazaar
MPBIM 2009
Page 35
Flooring choices are important because the coverings can be used to separate
departments; muffs noise in high-traffic areas and strengthen the store image.
SHELVING
The material used for shelving as well as its design must be compatible with
the merchandising strategy and the overall image desired. Music and scent in
the retail
outlet can influence consumer behaviour to a large extent.
VM supports Retail Strategy:
VM physically carries out a store's promotional selling strategies by designing
and executing window and interior displays that supports ad goals
Installing promotional signing for in-store selling
Producing workable departmental layouts and interior dcor
Devising merchandise fixture layouts for day to day operations
Placing and presenting merchandise on walls and fixtures
Working as team members with the store's promotional staff
VM supports selling:
Communicate the latest trends in fashion and colors
Assists customers in making a buying decision
Create an exciting environment within the store
VM transforms a shopper into a buyer
VM supports gift shopping
VM stimulates customers' appetites for artfully presented merchandise in the
same way that the gourmet cook stimulates diners' appetites for the artfully
presented mealVisual Merchandising at Big Bazaar

MPBIM 2009
Page 36
VM supports retailing trends:
A trend is a direction in which fashion seems to be moving. VM is the
invisible force that doing a lot of the pushing behind the trend. Trends put 'fun'
in fundamental merchandising. Some of the prominent trends include:
Consumerism is the trend: Consumers like an opportunity to thoroughly
inspect the product before making a purchase
The barriers to 'showcase selling' had to come down. Stores began to move in
the direction of self service
Assortment which the consumers like is another trend
V Merchandisers should become experts in anticipating and responding to
lifestyle trends. The crux is how to target the customers live their lives
Stand along stores in shopping villages is a trend where customers are able to
park their vehicles in front of retail stores
Non-store retailing will affect VM
VM also supports international retailing
Visual Merchandising Dos and Donts Visual Merchandising at Big Bazaar
MPBIM 2009
Page 37
Dos
Window display should be changed weekly or fortnightly to ensure freshness.
The display and layout should differentiate the store from competition. Colors
and design should be characteristic of the brand image.
Impulse purchase items (perfumes, watch straps, gifts) should be close to the
entry and exit doors for non-serious or causal customers would like to browse
the whole store. Their purchase is not pre-planned and because these impulse

purchase items are relatively cheaper they might buy them in a whim. Also
when customers wait at the billing counter the people accompanying the buyer
may snoop around and make a purchase too.
Use symbols as directions
Distance between the aisles should facilitate the easy for movement shoppers.
Donts
Avoid too many floors.
Racks shouldnt be too high, especially in bookstores because customers
might not be able to reach the books.
Lighting shouldnt be poor and at the same time shouldnt be very bright.
Shadows are essential for that added effect.
The display shouldnt be contrast to the section in which it is. It also shouldnt
be unaesthetic. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 38
CHAPTER 4 COMPANY PROFILE
BIG BAZAAR Visual Merchandising at Big Bazaar
MPBIM 2009
Company Profile

Pantaloon Retail (India) Limited, is Indias leading retailer that operates


multiple retail formats in both the value and lifestyle segment of the Indian
consumer
marker. Headquartered in Mumbai (Bombay), the company operates over 5
million
square feet of retail space, has over 450 stores across 40 cities in India and
employs
over 18,000 people.

The companys leading formats include Pantaloons, a chain of fashion outlets,


Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket
chain,
blends the look, touch and feel of Indian bazaars with aspects of modern retail
like
choice, convenience and quality and Central, a chain of seamless destination
malls.
Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,
Fashion Station, aLL, Top10, Star and Sitara. The company also operates an
online
portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home
Town, a large-format home solutions store, Collection i, selling home furniture
products and E-Zone focused on catering to the consumer electronics segment.
Page 39
Pantaloon Retail was recently awarded the International Retailer of the Year
2007 by the US-based National Retail Federation (NRF) and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 40
Pantaloon Retail is the flagship company of Future Group, a business group
catering
to the entire Indian consumption space.
Big bazaar is owned and operated by Future Bazaar India Ltd., a subsidiary of
Pantaloon Retail (India) Limited. As part of Indias largest retail chain, it enjoys
the
benefits of buying in bulk for the entire group and keeps the margins low, so
that
customers get a great range of products at great prices. Pantaloon Retail (India)

Limited led by Kishore Biyani is the country's largest retailer. It owns and
operates
multiple retail formats including Pantaloons, Big Bazaar, Food Bazaar, Central,
EZone, Fashion Station, Depot and many others.
Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one
of Indias leading business houses with multiple businesses spanning across the
consumption space. While retail forms the core business activity of Future Group,
group subsidiaries are present in consumer finance, capital, insurance, leisure
and
entertainment, brand development, retail real estate development, retail media
and
logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12
million square feet of retail space in 71 cities and towns and 65 rural locations
across
India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around
30,000
people and is listed on the Indian stock exchanges. The company follows a
multiformat retail strategy that captures almost the entire consumption basket
of Indian
customers.
In the lifestyle segment, the group operates Pantaloons, a fashion retail chain
and Central, a chain of seamless malls. In the value segment, its marquee
brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of Indian
bazaars with the choice and convenience of modern retail. Visual Merchandising
at Big Bazaar
MPBIM 2009
Page 41
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic
expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in

Kolkata, Hyderabad and Bangalore.


The groups specialty retail formats include, books and music chain, Depot,
sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement
chain, Home Town and rural retail chain, Aadhar, among others. It also operates
popular shopping portal, futurebazaar.com.
Group Vision
Future Group shall deliver Everything, Everywhere, Every time for Every
Indian Consumer in the most profitable manner.
Group 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.
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. Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 42
PART A THEORITICAL SETTINGVisual Merchandising at Big Bazaar
MPBIM 2009
Page 43
CHAPTER 5 Significance of Research

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 your store design, it is a key component of your stores unique
identity and your best form of advertising. Through them you are able to
communicate to your target customer your brands identity, what is unique and
special about your offering and what makes you better than other stores.
When deciding how to present your product in your store, always remember
that visual merchandising is an extension of your stores customer service. That
is
why when planning for your stores look and feel and product presentation, you
must
make sure that they:
Enhance the feeling of service and make your customer feel good. Above all
you want your customer to feel good and be happy. If they are happy you
know that they are going to buy. You also want to build loyalty and repeat
purchases by creating a good shopping experience.
Create a memorable impression: make it a feast for the senses. Shopping isn't
just about picking up a product. Its about temptation, attraction, and creating
a memorable impression that will encourage the customer to come back over
and over again. Customers are giving you what little time they have. You
should reward them with benefits beyond the products you carry. A
memorable impression can be created in many different ways. It could be
about the sensory experience of entering a store and being surrounded by light,
colour, texture, and sound.
While there is substantial amount of research on each of the components of
visual
merchandising, a holistic approach towards visual merchandising involving the
Visual Merchandising at Big Bazaar

MPBIM 2009
Page 44
consumers perceptions has not attracted much of research effort. So this has
prompted me to take up the research.
CHAPTER 6 Literature Review
Visual Merchandising is everything the customer sees, both exterior and
interior, that
creates a positive image of the business and results in attention, interest, desire
and
action on part of the customer
Source: Visual Merchandising for retailers by Holly Bastow Shoop, North Dakota
State University
Dale Zetocha, North Dakota State University
Gregory Passewitz, the Ohio State University
Merchandising and display are an important part of the marketing plan, and
should have a reasonable budget allocated - even for a retailer operating on a
shoestring.
In today's competitive retail environment a retailer cannot afford to consider
merchandising as a 'frill'. Everyone is competing for the customers' dollar. There
are
more choices out there for consumers than ever before.
Posters covering the door and windows, hand lettered signs, lack of lighting
and untidy displays send the message that your business isn't serious. If your
store
looks like a bargain basement, customers will expect bargain basement prices
and
may draw the conclusion that your product is poor quality. This judgment may
have
little to do with the product itself, but be the result of poor presentation.
Melanie McIntosh, a retail consultant and founder of Inspire Retail

Solutions, a British Columbia firm that helps retailers create strong, professional
business images that attract customers. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 45
Merchandising is more than simply the arrangement of products on the shelf.
It is an integral component of the business image. It should be considered when
you
design your logo, business cards, brochures, letterhead, packaging, and product
mix.
When you examine your merchandising, you examine what the customers'
experience, from their first sight of your store front, until they leave store hopefully
with a purchase in hand. Merchandising is also about understanding the way
customers shop. By using this knowledge, you can position your merchandise to
increase sales.
You need to create an environment that attracts the customer, is comfortable to
shop,
and encourages the customer to return.
Are the store front and windows attractive & inviting?
Is all signage clear, professional and legible?
Is the store interior welcoming and comfortable?
Is merchandise presentation appealing?
Are seasonal and high-margin merchandise placed in high profile locations?
Overall, is the store appearance professional? Visual Merchandising at Big
Bazaar
MPBIM 2009
Page 46
Chapter 7 Research Gap
Visual Merchandising is an integral part of retail today. There is a growing

recognition of need for Visual Merchandising. But even as it continues to grow,


the
understanding of Visual Merchandising impact and effectiveness is still in its
infancy.
The shopping behaviour which governs the decision to buy is a function of
three stimuli viz., visual, auditory and kinaesthetic; the visual stimulus is the
easiest
and most widely used tool for attracting customers.
While there is substantial amount of research on each of the components of
visual merchandising, a holistic approach towards visual merchandising involving
the
consumers perceptions has not attracted much of research effort. There is a
vital gap
in the current research and this has prompted to take up research investigation
in this
field. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 47
CHAPTER 8 Problem Statement and Research
Objective
VM carries with its 'touch points' from the customers' point of view. These
touch points comprise the customer environment and it is through interacting
with that
VM that customer preference is formed. The VM is an excellent analytical tool for
discovering the nature of these touch points, their essentiality for preference
formation
and the combination and sequence of such touch points that result in a
customer
environment that maximizes corporate ability to construct sustained customer
preference. What are these touch points? How does VM unzip these touch points?
What should be the appropriate configurations to the VM? This problem
statement

has been crystallized into the following research objectives


Research Objective
To examine the impact of VM in consumer buying decisions
To make recommendations for the alignment of VM in the process of
customer preference Visual Merchandising at Big Bazaar
MPBIM 2009
Page 48
CHAPTER 9 Hypothesis
We seek to achieve the above objectives through testing the following
hypothesis:
H0: All factors are equally important in Visual Merchandising
HA: All factors are not equally important in Visual Merchandising Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 49
CHAPTER 10 Research Methodology
TYPE OF RESEARCH
The study can well be described as descriptive. As a descriptive research, the
study will deal with the variables affecting the customer preference process via
VM. It
finds facts.
AREA OF ENQUIRY
It is proposed to conduct research in Bangalore City.
Secondary Data
The secondary data of the study will be based on the available literature in
Journals in the retailing sector.
Primary Data
Primary Data was collected using the structured questionnaire. A sample size

of 100 respondents was chosen through random sampling technique.


Construction of questionnaire: Visual Merchandising at Big Bazaar
MPBIM 2009
Page 50
The questionnaire was used as the respondents had to give a specific answer to
the questions. This also made it easier for the respondents to give their opinion
without too much time.
Personal interaction with the consumers at the store and observation technique
was also used.
Sample Size
Total 100 respondents were selected as the sample size. Random Sampling
CHAPTER 11 RESEARCH LIMITATIONS
Our research investigation is beset with the following constraints:
Time and resource constraints.
At the micro level, the scope of our research investigation is restricted to only
one retail unit in Bangalore City.
Bias/prejudice creeping into the responses of the respondents. However we
will exercise due care to obviate it through meticulous cross checking of data;
(Delphi Method).
Limited sample size, but, in our opinion, it is adequate enough to make valid
projections. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 51
PART B SURVEY FINDINGSVisual Merchandising at Big Bazaar
MPBIM 2009
Page 52

CHAPTER 12 Data Analysis & Inference


1) How often do you visit Big Bazaar?
Respondents
Once in 3 days 0
Once in a week 10
Monthly 23
No time frame 67
Table 1 frequency of visitVisual Merchandising at Big Bazaar
MPBIM 2009
0
10
23
67
0
10
20
30
40
50
60
70
80
Once in 3 days Once in a week Monthly No Time Frame
frequency of visit
Respondents
Figure 4 - Frequency of visit to Big Bazaar
INFERENCE:
From the above observations it is found that:

67% respondents visit to Big Bazaar has no definite Time Frame.


23% of respondents visit Big Bazaar once in a Month.
10% visited the store Weekly.
Page 53Visual Merchandising at Big Bazaar
MPBIM 2009
Page 54
2) What is your opinion of the Store Display?
Respondents
Very Good 15
Good 53
Satisfactory 22
Poor 10
Very Poor 0 Visual Merchandising at Big Bazaar
MPBIM 2009
Table 2 opinion on store display
0
10
20
30
40
50
60
Very Good Good Satisfactory Poor Very Poor
St or e Di spl ay
Respondents
Figure 5 - opinion of store dispaly
INFERENCE

From the above observations it is found that:


53% of respondents felt that overall Store Display at Big Bazaar was Good.
12% of the respondents felt that overall Store Display was Excellent.
22% felt that Store Display was Satisfactory.
10% felt that Store Display was Poor.
Page 55Visual Merchandising at Big Bazaar
MPBIM 2009
Page 56
3) How important is the Ambience of the store while shopping?
Respondents
Very Important 44
Important 56
Not Important 0 Visual Merchandising at Big Bazaar
MPBIM 2009
Not at all Important 0
Table 3 opinion of ambience of store
44
56
00
0
10
20
30
40
50
60
Very Important Important Not Important Not at all

Important
Ambience
Response
Figure 6 - opinion of ambience of Big Bazaar
INFERENCE
From the above observations it is found that:
44% of the respondents feel that Ambience of the Store is Very Important.
56% of the respondents feel that Ambience of the Store is Important.
Page 57
While none of the respondents feel that Ambience of the store is not
important. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 58
4) How do you rate the store on basis of Store Design & Display?
Respondents
Excellent 14 Visual Merchandising at Big Bazaar
MPBIM 2009
Good 63
Average 23
Poor 0
Table 4 opinion of store design
14
63
23
0
0
10

20
30
40
50
60
70
Excellent Good Average Poor
St or e Design & Display
Response
Figure 7 - opinion of store display
INFERENCE
From the above observations it is found that:
14% of the respondents feel that Store Design and Display was Excellent.
Page 59
63% of the respondents feel that Store Design and Display was Good. Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 60
23% of the respondents feel that Store Design and Display was Average.
While none of the respondents felt that overall Store Design and Display was
Poor.

5) How do you rate the store on basis of Colors & Lighting? Visual Merchandising
at Big Bazaar
MPBIM 2009
Respondents
Excellent 8
Good 66

Average 22
Poor 4
Table 5 opinion of color & lighting
8
66
22
4
0
10
20
30
40
50
60
70
Excellent Good Average Poor
Col or & Li ght i ng
Response
Figure 8 - opinion of color & lighting
INFERENCE
Page 61
From the above observations it is found that: Visual Merchandising at Big Bazaar
MPBIM 2009
Page 62
8% of the respondents feel that Color and Lighting at Big Bazaar was
Excellent.
66% of the respondents feel that Color and Lighting at Big Bazaar was Good.
22% of the respondents feel that Color and Lighting at Big Bazaar was

Average.
4% of the respondents feel that Color and Lighting at Big Bazaar was Poor.
6) How do you rate the store on basis of Props & Decorative items? Visual
Merchandising at Big Bazaar
MPBIM 2009
Respondents
Excellent 8
Good 71
Average 18
Poor 2
Table 6 opinion of props & decorative items
8
71
18
2
0
10
20
30
40
50
60
70
80
Excellent Good Average Poor
Props & Decorat ive it ems
Response
Figure 9 - opinion of props & decorative items

Page 63Visual Merchandising at Big Bazaar


MPBIM 2009
Page 64
INFERENCE
From the above observations it is found that:
8% of the respondents felt that Props & Decorative items at Big Bazaar were
Excellent.
71% the respondents felt that Props & Decorative items at Big Bazaar was
Good.
18% the respondents felt that Props & Decorative items at Big Bazaar was
Average.
2% the respondents felt that Props & Decorative items at Big Bazaar was Poor
Visual Merchandising at Big Bazaar
MPBIM 2009
7) How do you rate the store on the basis of Fixtures & Hardware?
Respondents
Excellent 4
Good 36
Average 58
Poor 2
Table 7- opinion on fixtures & hardware
4
36
58
2
0
10

20
30
40
50
60
70
Excellent Good Average Poor
Fixt ur es & Har dwar e
Response
Page 65
Figure 10 - opinion of fixtures & hardwareVisual Merchandising at Big Bazaar
MPBIM 2009
Page 66
INFERENCE
From the above observations it is found that:
4% felt that Fixtures and Hardware at Big Bazaar was Excellent
36% felt that Fixtures and Hardware at Big Bazaar was Good
58% felt that Fixtures and Hardware at Big Bazaar was Average
2% felt that Fixtures and Hardware at Big Bazaar was Poor Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 67
8) How Informative was the signs in the store?
Respondents
Very Informative 12
Informative 65
Not Informative 22

Not at all Informative 1


Table 8 opinion of signs in the storeVisual Merchandising at Big Bazaar
MPBIM 2009
12
65
22
1
0
10
20
30
40
50
60
70
Ver y Infor mative Infor mative Not Infor mative Not at all
Informative
Si gns i n t he st or e
Response
Figure 11 - opinion of signs at Big Bazaar

INFERENCE
From the above observations it is found that:
12% felt that Signs at Big Bazaar was Very Informative
65% felt that Signs at Big Bazaar was Informative
22% felt that Signs at Big Bazaar was Not Informative
1% felt that Signs at Big Bazaar was Not at all Informative
Page 68Visual Merchandising at Big Bazaar

MPBIM 2009
Page 69
9) Did you face problem in reaching for items in the rack?
Respondents
Yes 32
No 68
Table 9 opinion on convenience in reaching for items in rack
Visual Merchandising at Big Bazaar
MPBIM 2009
32
68
items in the rack
Ye s
No
Figure 12 - opinion on convenience in reaching for items in the rack

INFERENCE
From the above observations it is found that:
32 % felt that they had problem in reaching for the items in the rack
68% felt that they had no problem in reaching for the items in the rack
Page 70Visual Merchandising at Big Bazaar
MPBIM 2009
Page 71
10) Do you agree that items such as Chocolates, Biscuits, and Soft Drinks should
be close to entry and exit doors for casual customers?
Respondents

Agree 68 Visual Merchandising at Big Bazaar


MPBIM 2009
Somewhat Agree 28
Disagree 4
Table 10- opinion about soft drinks, biscuits for casual customer
68
28
4
0
10
20
30
40
50
60
70
80
Agr ee Somewhat Agr ee Disagr ee
Response
Figure 13

INFERENCE
From the above observations it is found that:
Page 72
68% Agreed that items such as Chocolates, Biscuits & Soft Drinks should be
placed near entry and exit doors for casual customers Visual Merchandising at
Big Bazaar

MPBIM 2009
Page 73
28% Somewhat agreed that items such as Chocolates, Biscuits & Soft Drinks
should be placed near entry and exit doors for casual customers
4% Disagreed that items such as Chocolates, Biscuits & Soft Drinks should
be placed near entry and exit doors for casual customers
11) Do you agree that Window Display should be changed weekly or for every
Fortnight to ensure fresh display? Visual Merchandising at Big Bazaar
MPBIM 2009
Respondents
Agree 67
Somewhat Agree 33
Disagree 0
Table 11- opinion on whether window display should be changed weekly
67
33
0
0
10
20
30
40
50
60
70
80
Agree Somewhat Agree Disagree

Window Display
Response
Figure 14 - opinion on window display
INFERENCE
Page 74
From the above observations it is found that: Visual Merchandising at Big Bazaar
MPBIM 2009
Page 75
67% Agreed that Window Display should be changed every fortnight to
ensure fresh display
33% Somewhat Agreed that Window Display should be changed every
fortnight to ensure fresh display
While None of them Disagreed that Window Display should be changed
every fortnight to ensure fresh display Visual Merchandising at Big Bazaar
MPBIM 2009
12) Did the distance between the Aisles facilitate for easy movement of the
Shoppers?
Respondents
Yes 62
No 38
Table 12- opinion on space between aisles
62
38
Aisles
Yes
No
Figure 15 - opinion on space between the aisles

Page 76Visual Merchandising at Big Bazaar


MPBIM 2009
Page 77

INFERENCE
From the above observations it is found that:
62% felt that distance between the Aisles facilitated for easy movement for the
shoppers
38% felt that distance between the Aisles did not facilitate for easy movement
for
the shoppers
Visual Merchandising at Big Bazaar
MPBIM 2009
13) Are Seasonal and High Margin Merchandise placed in high profile locations?
Respondents
Yes 58
No 42
Table 13 opinion on seasonal & high margin merchandise locations
58
42
Seasonal & High Margin Merchandise
Yes
No
Page 78
Figure 16 - opinion on seasonal & high margin merchandise Visual Merchandising
at Big Bazaar
MPBIM 2009

Page 79

INFERENCE
From the above observations it is found that:
58% respondents felt Seasonal & High Margin Merchandise were placed in
high profile location
42% respondents felt Seasonal & High Margin Merchandise were not placed
in high profile location Visual Merchandising at Big Bazaar
MPBIM 2009
Page 80
14) Overall, is the Store Appearance Professional?
Respondents
Yes 44
No 24
Somewhat 32
Table 14 opinion on overall professionalism of the storeVisual Merchandising at
Big Bazaar
MPBIM 2009
44
24
32
0
5
10
15
20
25

30
35
40
45
50
Ye s No So m e w h at
Response
Figure 17 - opinion on overall professionalism of the store

INFERENCE
From the above observations it is found that:
44% of the respondents felt that the overall Store Appearance was Professional
24% of the respondents felt that the overall Store Appearance was Not
Professional
32% of the respondents felt that the overall Store Appearance was Somewhat
Professional and needed some improvements
Page 81Visual Merchandising at Big Bazaar
MPBIM 2009
Page 82
CHAPTER 13 Hypothesis Test i ng
Hypothesis Conducted on Question no 2, 3, 4, 5, 6, and 7.
H0: ALL THE FACTORS ARE EQUALLY IMPORTANT IN VISUAL
MERCHANDISING
HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN VISUAL
MERCHANDISING Visual Merchandising at Big Bazaar
MPBIM 2009
FACTORS

(ranking)
E
*4
G
*3
A
*2
P
*1
OBSERVED EXPECTED (O-E)2
E
Ambience 44 56 0 0 344 287.6 11.06
Store Design &
Display
14 63 23 0 291 287.6 0.04
Color & Lighting 8 66 22 4 278 287.6 0.32
Props &
Decorative items
8 71 18 2 283 287.6 0.07
Fixtures &
Hardware
4 36 58 2 242 287.6 7.23
O=1438
2
cal=18.72
Table 15 - Hypothesis Testing
E: Excellent G: Good
A: Average P: Poor

Expected (E):
E= OBSERVED / NO OF FACTORS
E= 1438 / 5
E= 287.6

2
calculated = 18.72
Page 83Visual Merchandising at Big Bazaar
MPBIM 2009
Page 84
Level of Significance: 5%
Degrees of Freedom: (5-1) = 4
2 tabulated = 9.488
Therefore 2
tabulated < 2
calculated
HO IS REJECTED
There fore HA: ALL THE FACTORS ARE NOT EQUALLY IMPORTANT IN
VISUAL MERCHANDISING

CHAPTER 14 Major Findings of Research


From the research conducted it is evident that overall ambience of the store is
a very important component of Visual Merchandising and clearly influences
consumers purchasing decisions. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 85
Proper planning must be done while designing the store since, a customer is

highly influenced by the look and feel of the store. Effective visual merchandising
is
essential to attract shoppers enticing them to make a purchase. Effective visual
merchandising should also be supported by good sales staff to close deals with
shoppers.
1) Most of the people who visited Big Bazaar had no exact time frame.
2) Nearly half of the respondents believed that the overall store display at Big
Bazaar was good, and over 20% respondents feel that there was further
need for improvement.
3) Almost all the respondents felt that the overall ambience of the store is
important while shopping.
4) Majority of the respondents believe that signs in the store were
informative. While few said otherwise.
5) Over 60% of the respondents felt that items such as chocolates, biscuits,
soft drinks should be close to entry and exit doors for casual customers.
6) 67% of the respondents feel that window display should be changed
weekly or every fortnight.
7) Nearly 44% of the respondents feel that Big Bazaar store is professional
8) Many respondents believed that Seasonal and High margin merchandise
were placed in high profile location.
9) Some respondents felt that during peak hours the shelf were not
replenished faster, resulting in longer waiting periods.
10) Promotions, props and Decorative items are huge attractions with regard to
visual merchandising. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 86
PART C RECOMMENDATIONS
CHAPTER 15 Recommendations

Based on the research and interaction with the customers, we make following
specific
recommendations: Visual Merchandising at Big Bazaar
MPBIM 2009
Page 87
1. Faster replenishment of shelf during peak hours must be taken care of.
2. Customers who visit Big Bazaar weekly once or twice must be treated as
loyal customers and special attention must be given for them. Since most
of the respondents who visit the store has no time frame.
3. Lightings near the grocery department must be bright to enable the
customers to carefully select the groceries.
4. For casual customers items such as chocolates, biscuits, bubble gum,
chips must be kept near the billing area in order to stimulate last minute
purchasing or casual purchasing.
5. Flooring can be made innovative. Since the flooring currently at store is
plain and is of metallic cement colored. Floor Graphics can be used also as
signs to help locate certain segments of product.
6. Parking for especially 2 wheelers should be arranged. Since currently few
parking spaces are available and no other arrangements are made.
7. Better training to service staff can result in overall increase in
professionalism.
8. Window display needs to be changed once every fortnight in order to give
a new look.
9. Fixtures at the store were rated as average. So decorative, creative fixtures
should be used to create a good store image.
10. Retail Design Strategies: The success of the retail architect's design hinges
on
the work of the visual merchandisers. They are responsible for capturing the

architect's vision of the store and implementing it through their choice of


fashion, color, props, lighting and focal points. The creativity and hard work
of the visual merchandisers are the linchpins of effective store design. We give
below the design principles which must be adopted by Big Bazaar:
DESIGN PRINCIPLES
Unity
Harmony
Repetition Visual Merchandising at Big Bazaar
MPBIM 2009
Page 88
Balance
Rhythm (movement)
Contrast
Emphasis
Surprise
DESIGN ELEMENTS:
Color
Texture
Proportion
Direction
Size
Shape
Line
Sequence
Tension
COLOR SCHEMES:
1. Complementary schemes consists of two colors that are directly
opposite to each other on the color wheel--example yellow and violet

2. Double-complementary consists of four colors--two colors plus their


complements. Example: yellow with violet plus greet with red
3. Split-complementary consists of three colors--one central color plus
the two colors on either side of its component: Example: yellow with
red-violet and blue-violet
4. Triadic consists of three colors that are equidistant from one another on
the color wheel (They form a triangle when we look at the wheel)
Example: orange, green and violet
5. Analogous (color families) consists of two or more colors that are next
to each other 9adjacent) on the color wheel. Example: yellow with
yellow-green
6. Monochromatic consists of a single color in different values and
intensities (more white or grey blended into the basic color). Example:
blue with medium blue and light blue
11. MAGIC OF THE WINDOW DISPLAY: Window display should synchronize
with the visual merchandising. We give below the dynamics of window display
which
must be considered by Big Bazaar.
Windows entice people into our world and into our mindsets. It leads shopper
from
viewing to purchasing. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 89
Window Display Functions:
Fashion windows are about creating excitement and desire in shoppers who
are always open to something new and different
Fashion apparel windows tout the store's fashion leadership position by
presenting the store's newest trend merchandise

Home fashion windows may feature the latest dining trend. They may also
feature candles, dinnerware, table linens that relate to the dinner theme,
encouraging shoppers to create all of the ambience may might find in a
restaurants in their own homes
Promotional windows feature products that are part of an advertising strategy
promoting an entire line of products, a single item or a special store-wide
event. Holidays like Mother's Day and Valentine's Day provide opportunities
to stage exciting window functions
Sale windows announce the store's major sale events and may not feature any
merchandise at all--implying that the store is stripped down and ready to sell
out to the bare walls at low, low, low prices.
Drive-by-windows are exterior windows viewed by people driving on city
streets or passing through shopping mall parking lots
Live or Demo windows capture shoppers' attention. Retail theatre with a live
actor draws curious crowds into the store
Interactive or through-glass windows. Electronic components invite passerby
to interact with window displays by touching sensitive panels on the exterior
glass which are connected to oversized screens set up in the window's interior.
This is a breakthrough innovation for retailing
Window display theory:
Window theatrics may be retail fantasies, romances, dramas, comedies, or
adventure stores but they are always designed to engage imagination and make
shoppers think about what it would be like to own the merchandise on display.
Fantasy-to-Reality Theory guides shoppers from their first look at
merchandise in windows and editorial displays to the selling floor and into the
fitting room in three steps:
The window's larger-than-life version of fashion-merchandise that is
dropped or posed to amaze, amuse and enthuse--draws window shoppers

into the store. This is fantasy stage


The retailer presents the window merchandise inside the store and less
theatrically using editorial space in prime interior locations. These are
stepped-down presentations. They echo the theme of the window display Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 90
but are now presented in the context of the store. This is reality stage.
Merchandise looks more 'true to life' than it does in the window. Shoppers
have the chance to personally impact the merchandise
The window merchandise is ready for purchase. Here is final reality where
shoppers can finally handle the items they have admired or to try them on
Window Display Themes (Retail Advertisement Message):
Thematic inspiration for window displays is always the merchandise itself.
Window's motif (dominant theme idea) is a good supporting device for visual
merchandising. Some times themes are set by the corporate advertisers
The theme inspiration can come from:
Products' end use, fabrication, styles and color
Current directions in fashion design
Popular color parallels--market-driven color choices
Recent, current or upcoming events--global, national or local happenings that
involve or influence fashion
Influential cultural directions--fads, merchandising and lifestyle trends, new
books and magazines, recent films, plays, art, architecture, entertainment etc.
Historical perspectives---well-known symbols, recurring on retrospective
fashion designers, significant anniversaries of events
Retail image decisions---unique or 'signature' architectural, decorative or
stylistic elements exclusively characteristic of the retailer's image or the store's

design
Holidays: Mothers Day, Fathers Day, Valentine Day
Nostalgia--(1970.1980.1990)
New developments in props or decorative items available from the display
industry---innovative items like metal shopping bags, crystal clear up-scaled
ice cubes, unusual looking mannequins and alternatives.
Mechanics of window Display Magic:
The window display is the first message we are sending to regular and potential
customers. Therefore we must carefully plan he merchandise and how it is
presented. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 91
It is not unlike how we get dressed each day. We carefully coordinate the clothes
you
want to wear and the manner in which our style your hair or apply make-up. The
storefront window displays should be given the same level of importance. Here
some
useful guidelines:
Select the merchandise category--example, kids cloths, T-shirts etc
Select the color story: If T Shirts come in both bright and pastels, choose first
one color group for the window
Select the theme
Select the props
Select mannequins
Select accessories
Sketch proposed window presentation.
To sum up, it is our strong belief and conviction that visual merchandising, if
appropriately implemented, will go a long way to entice the customers into the
store.

The following prerequisites of an effective visual merchandising are quite


helpful:
Window display should be changed weekly or fortnightly to ensure freshness.
The display and layout should differentiate the store from competition. Colors
and design should be characteristic of the brand image.
Use symbols as directions: Distance between the aisles should facilitate the
easy for movement shoppers.
Impulse purchase items (perfumes, watch straps, gifts) should be close to the
entry and exit doors for non-serious or causal customers would like to browse
the whole store. Their purchase is not pre-planned and because these impulse
purchase items are relatively cheaper they might buy them in a whim. Also
when customers wait at the billing counter the people accompanying the buyer
may snoop around and make a purchase too.
Avoid too many floors, as they mess up the items
Racks should not be too high especially in book stores because customers
might not be able to reach the books
Lighting should not be poor and at the same time should not be very bright.
Shadows are essential for that added effect Visual Merchandising at Big Bazaar
MPBIM 2009
Page 92
The display should not be contrast to the section in which it is. Also it should
not be unaesthetic.
The whole point of visual merchandising is to help the retailers to
communicate brand message so that customers can make better-informed
choices. Consumers increasingly shop by what attracts their eye whether it is
perfume, or sand witch or chocolates
CHAPTER 16 ConclusionVisual Merchandising at Big Bazaar

MPBIM 2009
Page 93
Visual merchandising when used effectively is no doubt, a powerful tool to
entice customers in making a purchase decision. Retailers can attract more
customers
and increase sales by proper use of visual merchandising techniques.
With new competitors entering into India Retail Sector such as Bharti WalMart,
Tesco and many more, it becomes even more necessary for Indian domestic
retailers to focus and give importance to visual merchandising techniques in
order to
create a good customer shopping experience and use it as a customer retention
tool.
Through effective use of visual merchandising a store can improve its image
and also build a brand that helps in achieving long term goals of the retailer.
AnnexureVisual Merchandising at Big Bazaar
MPBIM 2009
Page 94
SELECT BIBLIOGRAPHY
BOOKS:
Retail Management by Ron Hasty & James Reardon, Pearson Publication
Retailing in India, ICFAI Publications,
Marketing Management by Philip Kotler (Chapter on Retailing)
Holly Bastow Shoop, Dale Zetocha North Dakota University, Gregory
Passewtiz, Visual Merchandising for Retailers, d.o.p May 2001
JOURNALS & MAGZINES
Business Today
Marketing Mastermind
Journal of Marketing
Back numbers of A & M

International Journal of Management Sciences


WEBSITES: Visual Merchandising at Big Bazaar
MPBIM 2009
Page 95
www.pantaloon.com
www.acumen.com
www.ibef.com
www.mbaindia.com
www.slideshare.com
www.wikipedia.org
www.mint.com
www.timesofindia.comVisual Merchandising at Big Bazaar
MPBIM 2009
QUESTIONNAIRE
VISUAL MERCHANDISING IN THE RETAIL SECTOR
(A Case Study of Best Practices and Effective Strategies of Visual Merchandising
at
Big Bazaar, Bangalore)
Dear Respondent,
I am a student of M.P.BIRLA INSTITUTE OF MANAGEMENT,
Bangalore. I am doing a survey for my research project entitled "VISUAL
MERCHANDISING IN THE RETAIL SECTOR (A Case Study of Best Practices
and Effective Strategies of Visual Merchandising at Big Bazaar, Bangalore). In
this connection, I need some information from you. Below is the questionnaire
crafted for this purpose. Kindly give responses to the questions contained in the
questionnaire. I humbly assure you that the information so provided will be kept
confidential and shall be used for academic purpose only

Dilipa S Naik
Name _______________________ Age ___________
Gender _______________
Income per annum:
<50,000

50,000-1L

1L-3L >3L

Not Applicable

Page 96Visual Merchandising at Big Bazaar


MPBIM 2009
Page 97
1) How often do you visit Big Bazaar?
a. Once in 3 days

()

b. Once in a week

()

c. Monthly

()

d. No Time Frame

()

2) What is your opinion of the Store Display?


a. Very Good

()

b. Good

()

c. Satisfactory

()

d. Poor

()

e. Very Poor

()

3) How important is the ambience of the store while shopping?


a. Very Important

()

b. Important

()

c. Not Important

()

d. Not at all Important

()

4) How do you rate the store on basis of Store Design & Display?
a. Excellent ( )
b. Good

()

c. Average ( ) Visual Merchandising at Big Bazaar

MPBIM 2009
Page 98
d. Poor

()

5) How do you rate the store on basis of Colours & Lighting?


a. Excellent ( )
b. Good

()

c. Average

()

d. Poor

()

6) How do you rate the store on basis of Props & Decorative items?
a. Excellent ( )
b. Good

()

c. Average

()

d. Poor

()

7) How do you rate the store on basis of Fixtures & Hardware?


a. Excellent ( )
b. Good

()

c. Average

()

d. Poor

()

8) How Informative was the signs in the store?


a. Very Informative

()

b. Informative

()

c. Not Informative

()

d. Not at all Informative ( ) Visual Merchandising at Big Bazaar


MPBIM 2009
Page 99
9) Did you face problem in reaching for items in the rack?
a. Yes ( ) b. No ( )

10) Do you agree that items such as chocolates, biscuits, soft drinks should be
close to entry and exit doors for casual customers?
a. Agree

()

b. Somewhat Agree

()

c. Disagree

()

11) Do you agree that window display should be changed weekly or for every
fortnight to ensure fresh display?
a. Agree

()

b. Somewhat Agree ( )
c. Disagree

()

12) Did the distance between the aisles facilitate for easy movement of the
shoppers?
a. Yes ( ) b. No ( )
13) Are Seasonal and high margin merchandise placed in high profile locations?
a. Yes ( ) b. No ( )
14) Overall, is the store appearance professional?
a. Yes ( ) b. No ( ) c. Somewhat ( )
15) Please give recommendation to improve Visual Merchandising at Big Bazaar
more appealing. Visual Merchandising at Big Bazaar
MPBIM 2009
Page 100

EXPALANATION TO RESEARCH INSTRUMENT


USED
The research instrument used for this survey is questionnaire. The reasons why
this
instrument is chosen are: It is free from all bias.

It covers a wide area.


It helps in getting original data.
Not expensive.
It is easy to tabulate and understand
It can be collected through Email Visual Merchandising at Big Bazaar
MPBIM 2009
Page 101
Directions for further Research
The following areas of research constitute 'green pastures' for further research:
Category Manage in Retailing Units: A Diagnostic Study
Creating a Shopping Experience in Retailing Units: A Phenomenographic
INFERENCE
Business Intelligence and Retailing: An Analytical Study
Private Labels in Retailing Units: A Diagnostic Study
Dynamics of Supply Chain Management in Retail Industry: Diagnosis &
Prognosis
Use of RFID Technology in Retailing Units: An Analytical Study
Category Killers in Retailing: A Diagnostic Study
Super Franchising in Retailing: An Analytical Study
Non-Store Retailing: Contemporary Issues
Retail Store Graphics: An Explorative Study
Micro-analysis of Visual Merchandising Variables
Magic of Window Display and its interface with Visual Merchandising Visual
Merchandising at Big Bazaar
MPBIM 2009
Page 102
Customers' Perceptions/Insights of Visual Merchandising

Impact of Visual Merchandising on transforming the shoppers into buyers


Impact of Visual Merchandising on transforming the online buyers into offline
Buyers

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