a study on impact of visual merchandising on sales at bb-vizag

8/10/2019 A Study on Impact of Visual Merchandising on Sales at BB-Vizag

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A Study on Impact of Visual Merchandising on Sales at Big

Bazaar, Visakhapatnam

Guide/Mentor:

Mr. Mandeep Sing Hayer, Assistant Professor

Mr. Babji, Visual Merchandiser

Presented By:

K. Syam Sundar,

MBA, Q1302


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Contents

Introduction

Need for the Study

Objective of the Study

Retail Industry

Company Profile

Research Methodology

Data Analysis & Interpretation Findings & Recommendations

Conclusion


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

appealing to the eyes of the customer.

This helps in presenting the products/services in a way that would

convert the window shoppers into prospective customers andultimately buyers of the product.

Visual merchandising will include store layout, window displays,

signages, cosmetic promotions and any other sales promotions

taking place in the store.

Retailer has roughly seven seconds to capture the attention of a

passing customer.

Introduction


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Need For The Study

Visual merchandising today forms a critical element of retailing.

Besides the facade & windows, which are clearly done up with an objective to

attract passer-bys and induce walk-ins, there is also in-store decor that is

designed to enhance the customers comfort and convenience whileshopping & overall, offer a superior shopping experience.

Especially in todays challenging economy, people may avoid designers/

visual merchandisers because they fear unmanageable costs. But in reality,

visual merchandisers can help economize by avoiding costly mistakes. With guidance of a professional, retailer can eliminate errors, saving time &

money.


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As the concept of large retail stores gains ground in India, the practice

and concept of Visual Merchandising is likely to grow exponentially.

In the modern retailing formats Visual Merchandizing has become

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

senior management, architects, merchandising managers, buyers, the

visual merchandising director, designers, and staff is needed.

Hence, this study is chosen to realize the impact of VM in increasing

store traffic.


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Objectives of The Study

To study the effectiveness of visual merchandizing with reference to

Big Bazaar, Visakhapatnam.

To study the impact of visual merchandizing on sales by conducting

a survey at Big Bazaar, Visakhapatnam.

To know visual merchandizing influence on buying decision of the

customers.

To know the various elements that contributes to visual

merchandizing.

To find out how visual merchandising helps in dragging customers

attention.


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Retail Industry

The word retail is derived from the French word retailing, meaning to

cut a piece ofor tobreak bulk.

A retailer may be defined as a dealeror trader who sells goods in small

quantitiesor onewho repeats or relates

In some parts of the world, the retail business is dominated by smaller

family-run or regionally-targeted stores, but this market is increasingly

being taken over by billion-dollar multinational conglomerates like Wal-

Mart and Sears

The retail industry in India is of late often being hailed as one of the

sunrise sectors in the economy.

India's strong growth fundamentals, high saving and investment rates,

fast growth in labour force and, increased consumer spending has made

it a very favourable retail destination globally.


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Emerging Areas of Retailing

Apparel and Fashion

Fashion & Lifestyle

Food & BeverageRetail

Pharmaceutical Retail

E-commerce


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Retail

rganized Unorganized

Unorganized retailers like the traditional family run stores and corner stores.

Ex: local kirana shops, owner-manned general stores, chemists, footwear

shops, apparel shops,paanand beedi (local betel leaf and tobacco)

shops, hand-cart hawkers, pavement vendors, etc

Organized retailing refers to trading activities undertaken by licensed

retailers, that is, those who are registered for sales tax, income tax, etc

Ex: Corporate backed hyper markets and retail chains


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Market Size of Retail IndustryBreak-Up of mall space format in India

Market Break-Up of Retail Industry in India


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Format Description The Value Proposition

Branded StoresExclusive showrooms either owned or franchised out by a

manufacturer.

Complete range available for a given brand,

certified product quality

Specialty Stores

Focus on a specific consumer need, carry most of the

brands available

Greater choice to the consumer, comparison

between brands is possible

Department Stores

Large stores having a wide variety of products, organized

into different departments such as clothing, house wares,

furniture, appliances, toys, etc.

One stop shop catering to varied/ consumer

needs.

Supermarkets Extremely large self-service retail outletsOne stop shop catering to varied consumer

needs

Discount StoresStores offering discounts on the retail price through selling

high volumes and reaping economies of scaleLow Prices

Hyper- martLarger than a supermarket, sometimes with a warehouse

appearance, generally located in quieter parts of the city

Low prices, vast choice available including

services such as cafeterias.

Convenience stores Small self-service formats located in crowded urban areas.Convenient location and extended operating

hours.

Shopping MallsAn enclosure having different formats of in-store retailers,

all under one roof.Variety of shops available to each other.


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BIG Bazaar- Hypermarket chain Food Bazaar- Supermarket chain

eZone- Electronics superstore HomeTown- Home improvement

and building materials store

Central- Seamless department store Planet Sports- Sportswear retailer

Foodhall- a premium lifestyle food destination Aadhar- Rural retail chain

KBs Fairprice- Urban low-frills Futurebazaar.com- Shopping portal

neighbourhood store

Company Profile


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Big Bazaar

Retail Format Hypermarket

Founded 2001

Headquarters Jogeshwari, MumbaiIndustry Retail

Promoter Kishore Biyani

Punch line Is se sasta aur accha kahin nahin

Vision:

We shall deliver Everything, Everywhere, Every time for Every Indian Consumer in

the most profitable manner.


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Guerilla Marketing Strategy

Future Group have come up with 3 catchy/cocky and cheeky adcampaigns which surely do catch our eyes and surely one cantresist appreciating the same.

Keep West-aSide. Make a smart choice!

Change Your Lifestyle. Make a smart choice!

Shoppers! Stop. Make a smart choice!

Guerrilla Marketing is an advertising strategy that focuses on low-cost

unconventional marketing tactics that yield maximum results.


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Guerilla Marketing Strategy


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One stop shopping at discounted prices.

Provides Best Products at the Best Prices.

Targets price conscious majority segment of customers.

Big Bazaar targets higher and upper middle class customers.

The large and growing young working population is a preferred

customer segment.

Big Bazaar specifically targets working women and home

makers who are the primary decision makers.

Customer Segmentation


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Value Pricing (EDLP Every Day Low Pricing): Big Bazaarpromises consumers the lowest available price without coupon clipping,

waiting for discount promotions, or comparison shopping.

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

The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used aspromotional tool. Big Bazaar also caters on Special Event Pricing

(Close to Diwali, Durga Pooja, Public Holiday).

Differentiated Pricing: Time pricing, i.e., difference in rate based on

peak and non-peak hours or days of shopping is also a pricing technique

used in Indian retail, which is aggressively used by Big Bazaar.

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

The combo-packs add value to customer.

Strategies


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Visual MerchandisingKey Elements of Store Displays

Window Display

Cluster

Focal Points

Open Windows


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Mannequins

Counter Displays

End Cap Displays


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Signage Communication

Directional Signages

Instructional Signages

Departmental Signages

Promotional Signages

Corporate branding Signage

Price ticketing

Generic Signages


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

years will be chosen as the target population. The people under this

age group who are visitors and shoppers to Big Bazaar,

Visakhapatnam. Sampling Procedure: The sampling procedure using here is simple

random sampling. Simple random sampling means each sample in

the population has equal chance to be picked up for the study.

Sample Size: A sample of 100 customers can be taken in order to

carry the study.

Sample Elements: The sample elements will consist of people who

visit and shop from Big Bazaar.


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Findings & RecommendationsFrom the Analysis of the results, based on the objectives of the study and from

my observations in the store the following findings can be ascertained:

40 percent customers are influenced to buy more than what they came to

buy, the main reason for it is the attractive product display and good

deal/offer with the product.

45percent of the customers going straight to the products which they want.

29percent of customers walk through the store as it leads them

44percent of the customers came to know about the new product arrival

through the advertisements.

35percent of the customers came to know about the new product arrival

through the display of the product.

66percent of the samples came to know about different offers in the store

through advertisements on Newspaper, T.V etc.,


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Food Bazaar is the walk-in driver for the store with low margins and

adding value to the store.

Food Bazaar department is the one which is contributing significantly in

both sales and margin to the store.

Walk-ins are more on Wednesday Bazaar, Sabse Saste 3 Din, PublicHoliday Sale, Monthly Savings Bazaar, Weekends, Big Day

Celebrations, Great exchange, festivals/special occasionsetc.,

Out of hundred samples 88percent of samples are satisfied with

overall shopping experience in Big Bazaar, Visakhapatnam. They usedto say that wide range of availability under the single roof made their

shopping easier and the offers they are getting in the store are

satisfying its punch line Isse sastha aur acha kahin nahi.


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

75percentof people responded visual display/presentation of products

influence their buying decision.

It is observed that customers instant/unplanned buying decision isinfluenced mainly because of favourable (low) price and good offers. It

states that Visual Merchandising should be implemented more effective

manner to attract more customers and increase the sales of the store.

In order for a good shopping experience for Customers Big Bazaar

needs to improve their ambience with suggestions regarding fragrance,

working of escalator and A.C in the store which can improve their

shopping experience.

Suggestions


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Signages should be executed in a manner that should be in eye

contact/properly visible for the customers.

It is necessary to concentrate on product display and placing banners

which tells about offers particularly on the special days etc.,

Few customers are in the perception that some products price range inBig Bazaar, Visakhapatnam is higher than the market price; there is a

need to focus on this issue.

Speed cash counters (billings of less than 10items) should be available

for the customers. So that the people need not stand for longer hoursfor billing of less than 10 items and also cash counters are not being in

operation at some of the floors itsleading to a problem and customers

need to wait at long queues in ground floor.

Additional Suggestions


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Recommendations

Setup the merchandise outside the store, this can create a sense of

excitement and buzz: consider a "Street Fair" environment, with

flags and balloons.

Customers are in a hurry. It is better to use signage to identify not

only departments but also categories -- this will help customers

pinpoint what they need and inspire additional purchases.

Merchandise that moves will catch the eye, so it is better to have

anything that moves --from clocks to toys to music boxes, take one

out and set it up.

Great merchandising appeals to more than the eyes. Consider how

store sounds, smells, and even feels.


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Conclusion

It evolved out of my study that although the importance of VM is growing,

there are no real metrics for measuring its effectiveness. There is no right

or wrong as far as retailing and Visual merchandising are concerned.

There is no way to find out what worked. It is just trying out new things.

Some things work, some things do notI feel that increase in dosage can

be employed in this regard. When product promotions remain constant,

increasing levels of visual merchandising efforts can be employed to see

the response of customers. Periodically monitoring increase in sales during

times of dramatic VM implementations can also be a way to determine if

the VM efforts paid off.


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Thank You

a study on impact of visual merchandising on sales at bb-vizag

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