choice of retailers and merchandise

8/2/2019 Choice of Retailers and Merchandise

http://slidepdf.com/reader/full/choice-of-retailers-and-merchandise 1/24

PRASAD.E.PRABHU (101134)

PRIYANKA GUPTA (101135)RAHUL KRISHNAN (101136)

ROHIT BATRA (101138)RUDRA PRATA.P (101139)

SADAF IRFAN (101140)

SAI KIRAN KUMAR S.B (101141)



DEFINITIONS

Merchandise: Household, personal use, or commercial goods,

commodities, bought and sold in wholesale and retail.



Retailer: A business or person that sells goods to the consumer, as

opposed to a wholesaler or supplier, who normally sell their goods toanother business.



Choice of Retailer:

Choosing a particular retailer or retail store by consumer.

There are some motives that actuate a consumer in buying his requirements from aparticular retailer or retail store rather than from another because of the following:

• Location

a) Area in which the store is located

b) Distance from consumer’s home

• Nature of the goods sold

• Goodwill of the store

• Attitude of salesman

• Services offered by store

• Stores approach to the customer/consumer

• Quality• Prices

• Variety availability

• Cleanliness

• Safety

• Space availability



A factor analysis, on the importance of selection criteria by

consumers

A seven factor solution,

Factor 1: "Environment", consists of variables relating to the physical

environment of the retail store. Variables such as store decor, lighting,atmosphere/ambience and layout, and air conditioning, attractiveness of

displays, and advertising effectiveness are included in this factor.

Factor 2: "Merchandise and Operations", consists mainly of variables

relating to the tangible offerings of the retailer such as variety and quality of merchandise, availability of desired product lines and desired package sizes.

Factor 3: "Staff", includes variables relating to the helpfulness, friendliness,

courtesy and training of staff, and personalized relations with staff.



Factor 4: "Pricing Promotions", includes variables related to "sale" items

such as selection/choice, discounts and availability.

Factor 5: "Availability”, includes variables that are related to the

availability of the retail store such as store hours and location convenience.

Factor 6: "Shopping Ease", includes ease of movement in store and ease of

finding items.

Factor 7: "Image”, includes reliability and reputation of store in this factor.



Factors Affecting the Choice of Merchandise

Merchandising:“ The analysis, planning, acquisition,handling and control of merchandise investments of a retail

operation.”

Size

Merchandise carried

Organization structure

Planning

Directing

Co-ordination Controlling



Visual Merchandising: The artistic display of merchandise and theatrical props used as scene-

setting decoration in the store

Several key characteristics

Not associated with shop-able fixture but located as a focal point orother area remote from the on-shelf merchandising (and perhaps out of the reach of customers)

Use of props and elements in addition to merchandise – visuals don’talways include merchandise; may just be interesting display of itemsrelated to merchandise or to mood retailer wishes to create

Visuals should incorporate relevant merchandise to be most effective Retailers should make sure displays don’t create walls that make it

difficult for shoppers to reach other areas of the store



Store Front Design & Atmospherics

Storefronts must:

Clearly identify the name and general nature of the store

Give some hint as to the merchandise inside

Includes all exterior signage

In many cases includes store windows – an advertising medium for the store – window displays should be changed often, be fun/exciting, and reflect

merchandise offered inside.

The design of an environment via:

visual communications lighting color sound scent

to stimulate customers’ perceptual and emotional responses and ultimatelyinfluence their purchase behavior



Visual Communications:

• Name, logo and retail identity

• Institutional signage

• Directional, departmental and category signage

• Point-of-Sale (POS) Signage

• Lifestyle Graphics

Coordinate signs and graphics with store’s image

Inform the customer

Use signs and graphics as props

Keep signs and graphics fresh

Limit sign copy

Use appropriate typefaces on signs

Create theatrical effects



Lighting & Color:

Important but often overlooked element in successful store design

• Highlight merchandise

• Capture a mood

• Level of light can make a difference

Blockbuster Fashion Departments

Can influence behavior

• Warm colors increase blood pressure, respiratory rate and otherphysiological responses – attract customers and gain attention but can alsobe distracting

• Cool colors are relaxing, peaceful, calm and pleasant – effective forretailers selling anxiety-causing products



Sound & Scent

Sound

Music viewed as valuable marketing tool

Often customized to customer demographics

Can use volume and tempo for crowd control

Scent

Smell has a large impact on our emotions

Victoria Secret, The Magic Kingdom, The Knot Shop Can be administered through time release atomizers or via fragrance-

soaked pellets placed on light fixtures



Grid (Straight) Design

• Best used in retail

environments in which

majority of customers shop the

entire store

• Can be confusing and

frustrating because it isdifficult to see over the

fixtures to other merchandise

• Should be employed

carefully; forcing customers to

back of large store mayfrustrate and cause them to

look elsewhere

• Most familiar examples for

supermarkets and drugstores



Curving/Loop (Racetrack) Design

•Major customer aisle(s)

begins at entrance, loops

through the store (usually inshape of circle, square or

rectangle) and returns

customer to front of store

• Exposes shoppers to thegreatest possible amount of

merchandise by encouraging

browsing and cross-shopping



Free-Flow Layout • Fixtures and

merchandise grouped

into free-flowing

patterns on the sales

floor –

no defined trafficpattern

• Works best in small

stores (under 5,000

square feet) in which

customers wish to

browse

• Works best when

merchandise is of the

same type, such as

fashion apparel

• If there is a great

variety of merchandise,

fails to provide cues as

to where one

department stops and

another starts

Storage, Receiving, Marketing

Underwear Dressing Rooms

Checkout counter

Clearance

Items

Feature Feature

J e a n s

C a s u

a l W e a r

S t o c k i n g s

A c c e s s o r i e s

P a n t s

T o p s

T o

p s

S k i r t s a n d D r e s s e

s

H a t s a n d H a n d b a g s

Open Display Window Open Display Window



Spine Layout

• Variation of grid, loop and free-form layouts

• Based on single main aisle running from thefront to the back of the store (transporting

customers in both directions)

• On either side of spine, merchandise

departments branch off toward the back or

side walls

• Heavily used by medium-sized specialty

stores ranging from 2,000 – 10,000 square feet

• In fashion stores the spine is often subtly

offset by a change in floor coloring or surface

and is not perceived as an aisle



Location of Departments

Relative location advantages

Impulse products

Demand/destination areas

Seasonal needs

Physical characteristics of merchandise

Adjacent departments



Fixture Types

Straight Rack – long pipe suspended with supports to the floor orattached to a wall

Gondola – large base with a vertical spine or wall fitted with sockets ornotches into which a variety of shelves, peg hooks, bins, baskets and

other hardware can be inserted.

Four-way Fixture – two crossbars that sit perpendicular to each other ona pedestal

Round Rack – round fixture that sits on pedestal

Other common fixtures: tables, large bins, flat-based decks



Fixture Types

Wall Fixtures

To make store’s wall merchandisable,

wall usually covered with a skin that is

fitted with vertical columns of notches

similar to those on a gondola, into

which a variety of hardware can be

inserted

Can be merchandised much higher

than floor fixtures (max of 42” on

floor for round racks on wall can be as

high as 72”



Merchandise Display Planning

Shelving – flexible, easy to maintain

Dumping – large quantities of small merchandise can be dumped intobaskets or bins – highly effective for soft lines (socks, wash cloths) orhardliners (batteries, candy, grocery products) – creates high volume, lowcost image

Pegging – small rods inserted into gondolas or wall systems – can be laborintensive to display/maintain but gives neat/orderly appearance

Folding – for soft lines can be folded and stacked on shelves or tables -creates high fashion image

Stacking – for large hardliners can be stacked on shelves, base decks of gondolas or flats – easy to maintain and gives image of high volume andlow price

Hanging



Three Psychological Factors to Consider in Merchandising

Stores

Value/fashion image

Trendy, exclusive, pricy vs. value-oriented

Angles and Sightlines

Customers view store at 45 degree angles from the path they travel as theymove through the store

Most stores set up at right angles because it’s easier and consumes less space

Vertical color blocking

Merchandise should be displayed in vertical bands of color whereverpossible – will be viewed as rainbow of colors if each item displayedvertically by color

Creates strong visual effect that shoppers are exposed to more merchandise(which increases sales)



POS Displays

Assortment display – open andclosed assortment

Theme-setting display

Ensemble display

Rack display

Case display

Cut case

Dump bin

choice of retailers and merchandise

Documents