Visual Merchandising

STUDY ON IMPACT
OF VISUAL
MERCHANDSING
IN RETAIL
MARKETING
[PROJECT REPORT]
Submitted by: SURENDHAR.D, II yr. MBA, Rai Business school Chennai.
STUDY ON IMPACT OF VISUAL
MERCHANDISING IN RETAIL MAKETING
PRACTICED AT
BIG BAZAAR
(PART OF FUTURE RETAIL GROUP)
PONDY BAZAAR,
CHENNAI
SUBMITTED BY
SURENDHAR DHANDAPANI
II yr., MBA
OF
RAI BUSINESS SCHOOL,

TEYNAMPET, CHENNAI.
A PROJECT REPORT SUBMITTED TO THE

FACULTY OF BUSINESS ADMINISTRATION
In partial fulfillment of the requirements of the program
For the award of the internal marks.
Space for Bonafide
certificate
DECLARATION
I D. Surendhar, a student of MBA, Rai Business School, Teynampet, Chennai.

hereby, declare that the project work titled “A STUDY ON IMPACT OF VISUAL
MERCHANDISING WITH REFERENCE To BIG BAZAAR”, Submitted to the Rai
Business School in partial fulfillment of the requirement for the award of the degree
of Master of Business Administration is a record of Bonafide research carried out by
me under the guidance of Mrs. Vinitha Prasad, Senior Lecturer, Rai Business
School and no part of it has been submitted for any other degree or diploma.
Place: CHENNAI D.SURENDHAR
Date:
STUDY ON IMPACT OF VISUAL MERCHANDISING
ACKNOWLEDGEMENT
An endeavor over a long period can be successful only with the
advice and support of many well - wishers. I take this opportunity
to express my gratitude and appreciation to all of them.
Firstly I thank the Almighty who has been with me from the
beginning of this project. Secondly, I would like to thank all my
faculties at RAI business school for their encouragement and
arousing the management skill in me to certain level which
opened up an opportunity for internship which of course part of
my course.
I would also like to thank Prof. Venkatesan, Head, Academics and

Mr. Ilango Manager Placement division of Rai Business School,
Chennai, for providing me full support to complete my internship.
I would also like to thank Mrs. Vinita, my project mentor at the Rai
business school, Chennai who guided me in the successful
completion of the project.
I am deeply indebted to express my heartfelt thanks to Mr.

SHENBAGARAJAN, Senior Executive (HR), Future Value Retail Ltd,
Chennai for giving me permission to do the project in the
organization and his support and guidance to complete this
project.
My family and friends also supported me with the study and

encouraged me a lot and I am thankful for it.
Acknowledgements Page 1
D.SURENDHAR
II yr. MBA
Acknowledgements Page 2
ABSTRACT
This 5 days of mini project was organized by the college and put
the students directly to the fields of market is mainly aimed for
evaluating the knowledge of the student and to give him a chance
to self-evaluate himself and to improve him in the areas needed.
Also gives the chance to test practically with concepts learned by
the student from books. Also provides opportunity for the student
to understand the industry in which they are going to work after
their graduation.
This project report has got two sections.
The first section deals with the overall view of Indian retail
industry and the company profile for future group along with their
vision & mission statement
The second section has the details about study on the impact of
visual merchandising in influencing the consumer’s buying
behavior.
«««««»»»»»
PROJECT REPORT Page 2

CONTENTS
CHAPTER
PARTICULARS PAGE NO
NO
SECTION – I 05
1 1.1 INTRODUCTION 06
1.2 NEED AND IMPORTANCE FOR THE

07
STUDY
1.3 INDIA RETAIL INDUSTRY – OVER

09
VIEW
1.4 COMPANY PROFILE 11
SECTION - II 17
STATEMENT OF OBJECTIVES 18
2 2.1 PRIMARY OBJECTIVE 18
2.2 SECONDARY OBJECTIVE 18
3.1 REVIEW OF LITERATURE

19
3 3.2 VISUAL MERCHANDISING
STRATEGIES FOLLOWING AT BIG 21
BAZAAR
23
3.3 CONCEPTUALIZATION
RESEARCH METDOLOGY 24
4.1 RESEARCH DESIGN & DATA

4 24
COLLECTION
4.2 DATA ANALYSIS PROCEDURE 24
4.3 LIMITATIONS OF THE STUDY 25
4.4 METHOD ADOPTED FOR THE

25
EXPERIMENT
4.5 DATA ANALYSIS AND

26
INTERPRETATION

4.6 FINDINGS 28
4.7 RECOMMENDATIONS 30
5 CONCLUSION 32
6 BIBLIOGRAPHY 33

SECTION - I

Introduction
I chose BIG BAZAAR at Pondy bazaar in Chennai to do my project

under the topic “A STUDY ON IMPACT OF VISUAL
MERCHANDISING, a unit of FUTURE GROUP is one of the most
well-known Retail firms in India. I found Retail business
appropriate for the topic as this is the only business which gives
importance for visual merchandising and future group is one such
firm a leading player in the industry and also encourages students
like me to conduct this this kind of studies in their outlets and
providing proper support and assistance

Need and importance of visual merchandising
Visual merchandising today forms a critical element of retailing.

Besides the facade and 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 customer’s
comfort and convenience while shopping and overall, offer a
superior shopping experience.
Consumer behavior studies have confirmed that the lure of a

beautifully done up show window and a tastefully decorated
facade, more often than not, prove irresistible as they walk in to
check out what is on offer. It also ensures exclusivity since no two
stores should look alike. Besides, when the mood and theme of
such displays change at regular intervals, it makes certain that
the store remains top of mind. Loyal customers have often been
known to anxiously wait for the next display. ‘Stickiness’ in retail
formats is also ensured by the imaginative use of colors, lighting,
space, furniture and visual elements with regard to in-store
displays.
Once customers walk in, it is but imperative to ensure that they

enjoy their first encounter with the store. After all, repeat visits
will only happen if a customer’s first visit is a memorable one. The
logical arrangement of counters, with clear passageways allows
for easy access to merchandise.
Rather than getting lost in the big space that most large stores
are, the customer feels more in control. Space is allocated to
various product categories taking into account the number of
SKUs stocked and shelves/counter space requirements are
worked out accordingly.

Clear passages are provided for products, which require touch

and feel. All impulse purchase driven products are also clearly
displayed so that the customers can reach them without any
hindrance. Also, it has been observed that when a person enters a
room, the human eye moves in a Z pattern, i.e. from rear left of
the room to right rear, followed by front left of the room to front
right. Care should be taken to do up the rear left end of the room
in an appealing manner so as to guide the direction of vision and
keep a shopper visually interested.
A great deal of research has been undertaken on the impact of

lighting on a customer’s purchase behavior. Results clearly
indicate that in general, stores that are brightly lit, with the lights
cleverly blending with the interiors lead to higher customer
comfort, and as such, more sales.

INDIAN RETAIL INDUSTRY – AN OVERVIEW
India retail industry is the largest industry in India, with an

employment of around 8% and contributing to over 10% of the
country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles,
and favorable demographic patterns.
The BMI India Retail Report for the third-quarter of 2010, forecasts
that the total retail sales will grow from US$ 353 billion in 2010 to
US$ 543.2 billion by 2014. With the expanding middle and upper
class consumer base, there will also be opportunities in India's tier
II and III cities. The greater availability of personal credit and a
growing vehicle population to improve mobility also contribute to
a trend towards annual retail sales growth of 11.4 per cent. Mass
grocery retail (MGR) sales in India are forecast to undergo
enormous growth over the forecast period. BMI further predicts
that sales through MGR outlets will increase by 154 per cent to
reach US$ 15.29 billion by 2014. This is a consequence of India's
dramatic, rapid shift from small independent retailers to large,
modern outlets.
BMI forecasts consumer electronic sales at US$ 29.86 billion in

2010, with over the counter (OTC) pharmaceutical sales at US$
3.28 billion. The latter is predicted to be the fastest growing retail
sub-sector and BMI forecasts that sales will reach US$ 6.18 billion
by 2014, an increase of 88.5 per cent.
Moreover, for the 4th time in five years, India has been ranked as
the most attractive nation for retail investment among 30
emerging markets by the US-based global management
consulting firm, A T Kearney in its 8th annual Global Retail

Development Index (GRDI) 2009. India remains among the
leaders in the 2010 GRDI and presents major retail opportunities.
India's retail market is expected to be worth about US$ 410
billion, with 5 per cent of sales through organized retail, meaning
that the opportunity in India remains immense. Retail should
continue to grow rapidly—up to US$ 535 billion in 2013, with 10
per cent coming from organized retail, reflecting a fast-growing
middle class, demanding higher quality shopping environments
and stronger brands, the report added. Bharti Retail strengthened
its position in northern India by opening 59 stores, Bharti Wal-
Mart is expected to open 10 to 15 wholesale locations in the next
three years, and Marks & Spencer is considering plans to open
additional outlets in the next few years.
Established retailers are tapping into the growing retail market by

introducing innovative store formats. Spencer's Retail, More
(owned by Aditya Birla Group) and Shoppers Stop (owned by K
Raheja Group) already plan to expand.
According to a McKinsey & Company report titled 'The Great

Indian Bazaar: Organized Retail Comes of Age in India', organized
retail in India is expected to increase from 5 per cent of the total
market in 2008 to 14 - 18 per cent of the total retail market and
reach US$ 450 billion by 2015.
Furthermore, according to a report titled 'India Organized Retail

Market 2010', published by Knight Frank India in May 2010 during
2010-12, around 55 million square feet (sq. ft.) of retail space will
be ready in Mumbai, national capital region (NCR), Bengaluru,
Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010
and 2012, the organized retail real estate stock will grow from the
existing 41 million sq. ft. to 95 million sq. ft.
India continues to be among the most attractive countries for

global retailers. Foreign direct investment (FDI) inflows between
April 2000 and April 2010, in single-brand retail trading, stood at
US$ 194.69 million, according to the Department of Industrial
Policy and Promotion (DIPP).

Leading watchmaker Titan Industries Limited plans to invest
about US$ 21.83 million for opening 50 premiums watch outlets
Helios in next five years to attain a sales target of US$ 87.31
million. "We are looking to open Helios outlets in Mumbai, Delhi,
Hyderabad, Kolkata, Chennai, Pune, Ahmedabad etc. in next 12
months," said Ajoy Chawla, Vice President (Retail), Titan.
British high street retailer, Marks and Spencer (M&S) plans to

significantly increase its retail presence in India, targeting 50
stores in the next three years. M&S currently operates 17 stores
in India through a joint venture (JV) with Reliance Retail.
Bharti Retail, owner of Easy Day store—supermarkets and hyper

marts—plans to invest about US$ 2.5 billion over the next five
years to add about 10 million sq. ft. of retail space in the country
by then, according to a company spokesperson.
Source: http://www.ibef.org/industry/retail.aspx
COMPANY PROFILE
FUTURE GROUP
The field of study was conducted at Big bazaar a unit of

Pantaloons Retail (India) Limited. Pantaloon Retail (India) Limited,
is India’s leading retailer that operates multiple retail formats in
both the value and lifestyle segment of the Indian consumer
market. Headquartered in Mumbai (Bombay), the company
operates over 12 million square feet of retail space, has over
1000 stores across 71 cities in India and employs over 30,000
people.
The company’s 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 Brand
Factory, Blue Sky, all, Top 10 and 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 eZone focused
on catering to the consumer electronics segment. 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.
Pantaloon Retail is the flagship company of Future Group, a

business group catering to the entire Indian consumption space.
Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore
Biyani, is one of India’s 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 multi-format 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.

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 group’s 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. Future Capital Holdings, the
group’s financial arm provides investment advisory to assets
worth over $1 billion that are being invested in consumer brands
and companies, real estate, hotels and logistics. It also operates a
consumer finance arm with branches in 150 locations. Other
group companies include, Future General, the group’s insurance
venture in partnership with Italy’s General Group, Future Brands,
a brand development and IPR company, Future Logistics,
providing logistics and distribution solutions to group companies
and business partners and Future Media, a retail media initiative.
The group’s presence in Leisure & Entertainment segment is led

through, Mumbai-based listed company Galaxy Entertainment
Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co.
and family entertainment centres, F123. Through its partner
company, Blue Foods the group operates around 100 restaurants
and food courts through brands like Bombay Blues, Spaghetti
Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.
Future Group’s joint venture partners include, US-based

stationery products retailer, Staples and Middle East-based Axiom
Communications.
The group’s flagship company, Pantaloon Retail was awarded the

International Retailer of the Year 2007, by the US-based National
Retail Federation, the largest retail trade association and the
Emerging Market Retailer of the Year 2007 at the World Retail
Congress in Barcelona.

Future Group believes in developing strong insights on Indian
consumers and building businesses based on Indian ideas, as
espoused in the group’s core value of ‘Indianness.’ The group’s
corporate credo is, ‘Rewrite rules, Retain values.’
Vision
Future Group shall deliver Everything, Everywhere, Every time for

Every Indian Consumer in the most profitable manner.
Mission
They 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.
They will be the trendsetters in evolving delivery formats,

creating retail realty, making consumption affordable for all
customer segments – for classes and for masses.
They shall infuse Indian brands with confidence and renewed

ambition.
They shall be efficient, cost- conscious and committed to quality

in whatever we do.
They shall ensure that our positive attitude, sincerity, humility

and united determination shall be the driving force to make us
successful.
Core values
Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in

our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and

information.
Valuing and Nurturing Relationships: to build long term

relationships.
Simplicity & Positivity: Simplicity and positivity in our thought,

business and action.
Adaptability: to be flexible and adaptable, to meet challenges.
Flow: to respect and understand the universal laws of nature.
Major Milestones
2001- Three Big Bazaar stores launched within a span of 22 days

in Kolkata, Bangalore and Hyderabad.
2002- Food Bazaar, the supermarket chain is launched.
2004- Central - India’s first seamless mall is launched in

Bangalore.
2005- Group moves beyond retail, acquires stakes in Galaxy

Entertainment, Indus League Clothing and Planet Retail. Sets up
India’s first real estate investment fund Kshitij to build a chain of
shopping malls.
2006- Future Capital Holdings, the company’s financial is formed

to manage over $1.5 billion in real estate, private equity and
retail infrastructure funds. Plans forays into retailing of consumer
finance products.
Home Town, a home building and improvement products retail

chain is launched along with consumer durables format, Ezone

and furniture chain, Furniture Bazaar. Future Group enters into
joint venture agreements to launch insurance products with
Italian insurance major, General Forms joint ventures with US
office stationery retailer, Staples.
2007- Future Group crosses $1 billion turnover mark. Specialized

companies in retail media, logistics, IPR and brand development
and retail-led technology services become operational.
2008- Future Capital Holdings becomes the second group

company to make a successful Initial Public Offering in the Indian
capital markets. Big Bazaar crosses the 100-store mark, marking
one of the fastest ever expansion of a hypermarket format
anywhere in the world. Total operational retail space crosses 10
million square feet mark. Future Group acquires rural retail chain,
Aadhar present in 65 rural locations.
BIG BAZAAR
Big bazaar, Pondy Bazaar was the second store to make an

impact in the minds of the customer. It was opened in the month
of June, 2008. Situated in the midst of an IT hub, it welcomes
customers with exciting offers and discounts. Pondy bazaar is
among the few areas in Chennai that is full of activities with
shopping malls, eat out joints, restaurants etc. This also brings a
lot of competition for the store. Measures are taken to retain the
customers by training the employees to be polite and vigilant.
The various departments in the store are as follows:
• Food bazaar department
• Cash department
• Plastics, Utensils and Crockery
• Appliances
• Footwear
• New Business Developments
• Depot

• Home Linen
• Furniture
• Apparels
• Visual merchandise
• Human Resource
• Administration
• Ware house / Logistics
• Maintenance
• Customer Service Department
«««««»»»»»

SECTION - II

STATEMENT OF OBJECTIVES
PRIMARY OBJECTIVES OF THE STUDY
A study on impact of merchandising products on the consumers’

buying choice with reference to big bazaar
• To identify the impact made by the modern promotional

techniques (signage’, posters etc.,) along with the
traditional visual merchandising strategies (Lighting , design
layout preference, product display and cleanliness) in
consumers’ buying decision.
SECONDARY OBJECTIVES OF THE STUDY
Though the primary objective of the study is to study the impact

of visual merchandising in relation to consumer buying decision
the secondary objective of the study is to acquire the knowledge
on over all function of Indian retail industry and its operations by
observing a retail outlet – BIG BAZAAR, Pondy Bazaar Branch,
Chennai.

LITERATURE REVIEW
VISUAL MERCHANDISING – AN OVER VIEW
Visual merchandising is the activity of promoting the sale of

goods, especially by their presentation in retail outlets. This
includes combining products, environments, and spaces into a
stimulating and engaging display to encourage the sale of a
product or service. It 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.
Many elements can be used by visual merchandisers in creating

displays, including color, lighting, space, product information,
sensory inputs such as smell, touch, and sound as well as
technologies such as digital displays and interactive installations.
Purpose
Retail professionals display to make the shopping experience

more comfortable, convenient and customer friendly by:
• Making it easier for the shopper to locate the desired

category of products and merchandise.
• Making it easier for the shopper to handpick the products.
• Making it possible for the shopper to co-ordinate &

accessorize.
• Informing about the latest fashion trends by highlighting

them at the strategic locations.
VM helps in:
• Educating the customers about the product/service in an

effective and creative manner.
• Establishing a creative medium to present merchandise in

3D environment, thereby enabling long lasting impact and
recall value.

• Setting the company apart in an exclusive position.
• Establishing linkage between fashions, product design and

marketing by keeping the product in prime focus.
• Combining the creative, technical and operational aspects of

a product and the business.
• Drawing the attention of the customer to enable him to take

purchase decision within shortest possible time, and thus
augmenting the selling process.

VISUAL MERCHANDISING STRATEGIES FOLLOWED AT BIG

BAZAAR
A Planogram allows planning of the arrangement of merchandise

on a given fixture configuration to support sales through proper
placement of merchandise by Style, Option, Size, Price points, etc.
It also enables a chain of stores to have the same merchandise
displayed in a coherent and similar manner across the chain.
At big bazaar they used the proper combination of each of these

elements to support ease of applicability to the consumer and
also increasing selection & enhancing the merchandise display in
a neat and organized manner.
GIVING MERCHANDISE THE FOCAL POINT
At big bazaar they showcased the major fast moving products

within the overall display area in a way that no prospective
consumer will miss a product that they were looking for. And in
the entry stage itself they displayed a proper map of the shop
stating the brief description of products available in each floor
along with information for rest room and customer desk areas.
This helps in educating the consumer about the detailed products
and saves their time from unwanted enquiries also helps them to
engage more on their shopping activity

USING THE RIGHT CHOICE OF COLORS
Color is one of the most powerful tools in the Visual

Merchandising segment. It is a visual perceptual property. Colors
can be associated with emotions, special occasions and gender. It
attracts attention and pulls more customers into the store. At big
bazaar they utilized the major advantage of this factor and used it
in the entire store for the arrangement of products. During my
project period I was put up in food bazaar. There I noticed that in
all the shelves they arranged the packs based on color of the
packs so that they formed color gradients giving emphasize to
strong color packs and slightly saturating to the lighter shade
packs. This helps in grabbing the attention of the customer and
holding it for minimum of 5-10 seconds and also helps them for
effective scanning between the products across the shelves
without straining the eyes much.
DISPLAYTHEMES TO APPROPRIATELY SUPPORT THE

PRODUCT:
I did this project at Big Bazaar during their big day sales or
Mahabachat which will happen every year during republic day and
Independence Day. The sale lasts for 5 days. For these 5 days
they decorated the store with themed displays of offers available
during these Mahabachat sales throughout the store and
windows. It sets the context in an aesthetically pleasing fashion,
presenting them in a way that would convert the window
shoppers into prospects and ultimately buyers of the product.
CLEANLINESS:
Neat and clean arrangement is the foundation of an inviting a

successful visual display. A beautiful display can be ruined by a
cracked sign holder or an unclean display environment. In big
bazaar I noticed that they took enormous effort in cleaning the
floor and followed an effective cleaning schedule of showcases
and display fixtures.

«««««»»»»»

CONCEPTUALIZATION
In conceptualizing the study, I have attempted to build

relationship between key variables i.e., visual merchandising
(independent variable) and buying behavior (dependent variable).
According to the literature review, I came to know that lighting,
design layout, product display and cleanliness are the main
variables of visual merchandizing. It is also necessary to examine
the relationship between two key variables and other variables
influenced on dependent variable. This would enable me to
interpret the findings in a more comprehensive manner. The
conceptual model that has been developed indicating their
relationship is given below
Conceptual Model
Lighting
Design Buying
Layout Visual decision
Merchandizing Behavio
Product r
Display
Cleanliness
Courtesy: Visual merchandising and consumer decision process

for intimate apparel by Derry Law and Joanne yip – institute of
textile and clothing,
the Hong Kong polytechnic university – Hong Kong.

RESEARCH METHODOLOGY
DATA COLLECTION
The nature of research design chosen by me is almost a

descriptive one. So, as far as possible attempt was made to
gather primary data. In that context, a detailed observation
criterion was administrated, facilitating the observations process.
The primary research was carried out in BIG BAZAAR – T-Nagar
branch, Chennai. And information was collected from customers
who were purchasing products from the supermarket at the time
of the study. Additionally, secondary data for conceptualization
and operationalization of the matters and other purposes were
also utilized through textbooks and web sites etc.
Data were collected through observations from 1000 consumers

from four different age groups i.e. 20-30, 30-40, 40-50, 50-60 who
walked in to the store at the time of study. There were no any
rejected forms due to field investigation and personally filled
criterion forms with observation. Most of the data pertaining to
this study have been collected from customer sample drawn from
randomly.
DATA ANALYSIS PROCEDURE
Descriptive method was used in presenting and analyzing the

data. Descriptive tools such as frequency counts and percentages
calculated for the statements on the criterion form in order to
determine the impact of in store promotions on buying decisions.
LIMITATIONS OF THE STUDY:
Apart from visual merchandising there is the influence of other

mediums like television, newspaper and radio used for
communicating the mahabachat sale at BIG BAZAAR – this has
got the strong influence in buying decision.
Since i chose the busy retail out let like BIG BAZAAR and that too
during the period of big day sales its bit tough for me to do the
observations in a detailed manner.

How strong a marketer/ promoter is trying to promote the product
if it is not needed for the customer then the customer won’t be a
prospective customer for that marketer
METHOD ADOPTED FOR THE EXPERIMENT
At big bazaar during the Mahabachat sale our aim was to sell the
maximum combi packs of provisions.
The following were the combi packs bundle they made:
• Rs.444 – 5 kgs of sugar, rice and golden harvest atta
• Rs.555 – 5 kgs of pills burry atta, tilda long grain rice and 5
liters Gemini refined sunflower oil
• Rs.575 – 5 kgs of sugar, tilde long grain rice and 5 liters

fortune refined sunflower oil
• Rs.589 – 5 kgs of sugar, aashirvad atta and 5 liters gold

winner refined sunflower oil
• Rs.625 – 5 kgs of hello royal basmati rice, pills burry atta and
5 liters gold winner refined sunflower oil
• Rs.649 – 5 kgs of aashivad atta, daawat devya basmati rice

and 5 liters gold winner refined sunflower oil.
For the first 3 days we didn’t adopt any systems for the
promotion, we sold average of 200 combi packs.
For the fourth and fifth day we were given targets for the sale
of combi packs. So my team leader decided to add up extra
visual merchandise to make the customer available of those
packs. So we decided two place one close to the customer bag
zone there we displayed all the combi packs in a decorated
table along with the signage displaying the offers in an
attractive way and the second place was quite close to
customer service desk the entry for the customers to the shop
we adopted the same method as earlier.

I’ve enclosed the details for one hour of the study as it was
very tough to record the actual data for over a period of time.
But the end result was we achieved the targets for all these
days. For the fourth day we were given target of 300 combi
packs and we sold around 320 packs and for the closing day we
got the target of 400 and sold close to 447 packs. Over all the
method worked very well and played a vital role in achieving
the targets.
DATA INTERPRETATION
Impact of visual merchandising on consumer buying

behavior across the age groups
AGE GROUP 20-30 30-40 40-50 50-60 IMPACT
OF VM
FREQUENCY 168 599 135 98 1000
PERCENTAGE 16.8 59.9 13.5 9.8 100

Factors involved in Visual Merchandsing – based on time

spent
TIME SPENT
FACTOR 0-5 sec 05-10 10-15 TOTAL PERCENTAG

sec sec E
SIGNAGES 31 55 108 194 19.4
POSTER 174 47 84 305 30.5
THEMED PRODUCT 251 50 10 310 31

DISPLAYS
INSHOP PROMOTIONS 15 56 120 191 19.1
Grand Total 1000 100

VISUAL MERCHANDIZING AND CONSUMER’S BUYING
BEHAVIOR.
This study focused on the visual merchandizing and consumer

buying decisions. The main objective of this study was to examine
the influence emerged from visual merchandizing and the usage
of new medias into the VM such as postages, signage’s themed
displays for influencing consumer’s buying decisions. The finding
shows that influence emerged from visual merchandising on
consumer’s buying decisions is strong. From this it is clearly
shown that highest mean value of visual merchandising is 59.9
from the age group of 30 -40 shows that people belonging to this
group is highly attracted towards VM. It was represented in
strongly influenced score category.
However, visual merchandising consists of four variables such as

lighting, design layout, product display and cleanliness, all of
those variables, have considerable influence in selecting specific
supermarket outlet. The usage of new mediums in a unique way
has a strong influence in buying decision. The majority of
respondents (31 & 30.5) mentioned that posters and product
displays majority themed displays in supermarkets outlets
strongly influence on their buying decisions. In the same time,
30% of respondents have indicated that product display strongly
influence on their buying decisions. Moreover, the frequency of
product display is 310. It is more close to the higher level of
strongly influenced score category. The findings show that 30% of
respondents have indicated that posters are strongly influencing
their store buying behavior. The smallest value equal to 19 that
represents the moderately influenced score category. Most of the

customers mentioned that in-shop promotions are one of the
most important factors of attractive in-store environment of
supermarket outlets. According to the findings, 191 respondents
have indicated in-shop promotions will affect in a strong and
moderate way respectively on their buying decisions. Though
signage has low impact actually it helps in gaining the passer-by
attraction and from results it is also clearly shows that in-shop
promotions and product displays holds the consumers for a long
time results to the buying decision. Therefore, the quantitative
figures show that visual merchandising has significant impact in
buying decisions
In addition to the in-store variables, most of consumers

consider price of goods, location, and customer service and
parking facilities etc. When customers are ranking the relative
importance of factors affecting to the buying decisions, most of
customers have given first and second priority to visual
merchandising as it conveys them clearly what the product is and
whom it is meant for also at the same time it also informs the
consumers about the offerings and discounts associated with that
product. Second and third largest amount of customers
mentioned price of goods and location of the outlets.
«««««»»»»»

RECOMMENDATIONS
The research findings of present study have more practical

orientation and which is important for the marketers in
supermarkets sector. Hence, the study recommends the
following.
1. Visual merchandising is the most important variable in in-

store environment among the tested variables. It can
significantly influence on consumer’s buying choice.
Therefore, application of more attractive visual
merchandising materials in their promotions will help to
obtain better results. The lighting, Design layout, themed
displays and cleanliness are the key elements of visual
merchandizing programs.
2. Most of customers are willing to purchase products from
super markets from 6.00p.m. To 9.00p.m. In weekdays and
10.00a.m. To 8.00p.m. During weekends. Therefore, visual
merchandisers can pay special attention to make attractive
environment in the supermarket premises and make action
to control the rush condition.
3. Spaces between shells (Passage), cashier counters layouts,
height of shells, no. of Gondola, number of impulse counters,
sanitary facilities, height of roof are key variables of design
layout that helps to make customer relaxation, convenience
to selection of products, reduce average waiting time and
encourage the impulse purchasing etc.
4. When designing the product display, Supermarket managers
should pay special attention on category layout, canola

(Light ceiling), color separation, lighting box, category name
of product shells.
5. When planning for themed displays for special offers or for
festive seasons, the theme of the display and creativity
should match the offer for example when planning for
valentine special it’s very important that pick color should be
used for the display
6. Damaged items on the shells and dust will make bad image
towards the supermarket outlets and design of floor tiles can
make significance influence to feeling of pleasure at
shopping time.
7. Majority of customers respond to the lighting more
positively. They specially mentioned that lighting helps to
select correct products, reduce the time wasted and feel
relaxation during the shopping tours. Therefore managers
can select appropriate lighting system that creates
satisfaction of psychological needs of customers.
8. The background music will also encourage customers to
spend extra time in supermarkets. However, it has low
significance relative to the other elements of in-store
environment. It will help to encourage customers to make
impulse purchasing decisions in supermarkets. And also
customers will consider the shopping in such a supermarket
is one of entertaining exercise. The soft and classic music
are highly recommended than other type of music.
«««««»»»»»


Conclusion
From the study it is clearly understood that the arrangement of

the displays in an attractive manner initiates new interest about
the products in the minds of the customer. By designing a proper
themes and activating changes frequently one can thus be a
proactive retailer.
With globalization and the retail boom, visual merchandising is

growing in leaps and bounds. It is not simply concerned about
decorating a store beautifully; but must also symbolize the brand
keeping the target audience in mind.
By doing this project am not only learned about the impact of

visual merchandising but also it opened the door for me to learn
about many aspects in sales and retail including buying behavior
of consumers, salesmanship etc., I once thank mi institute and
also future group for providing training of this kind.
«««««»»»»»

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STUDY ON IMPACT

RAI BUSINESS SCHOOL,

A PROJECT REPORT SUBMITTED TO THE

I D. Surendhar, a student of MBA, Rai Business School, Teynampet, Chennai.

Place: CHENNAI D.SURENDHAR

I would also like to thank Prof. Venkatesan, Head, Academics and

I am deeply indebted to express my heartfelt thanks to Mr.

My family and friends also supported me with the study and

This project report has got two sections.

PROJECT REPORT Page 2

1.2 NEED AND IMPORTANCE FOR THE

1.3 INDIA RETAIL INDUSTRY – OVER

1.4 COMPANY PROFILE 11

2 2.1 PRIMARY OBJECTIVE 18

2.2 SECONDARY OBJECTIVE 18

3.1 REVIEW OF LITERATURE

4.1 RESEARCH DESIGN & DATA

4.2 DATA ANALYSIS PROCEDURE 24

4.3 LIMITATIONS OF THE STUDY 25

4.4 METHOD ADOPTED FOR THE

4.5 DATA ANALYSIS AND

PROJECT REPORT Page 3

PROJECT REPORT Page 4

PROJECT REPORT Page 5

I chose BIG BAZAAR at Pondy bazaar in Chennai to do my project

PROJECT REPORT Page 6

Need and importance of visual merchandising

Visual merchandising today forms a critical element of retailing.

Consumer behavior studies have confirmed that the lure of a

Once customers walk in, it is but imperative to ensure that they

PROJECT REPORT Page 7

Clear passages are provided for products, which require touch

A great deal of research has been undertaken on the impact of

PROJECT REPORT Page 8

INDIAN RETAIL INDUSTRY – AN OVERVIEW

India retail industry is the largest industry in India, with an

BMI forecasts consumer electronic sales at US$ 29.86 billion in

PROJECT REPORT Page 9

Established retailers are tapping into the growing retail market by

According to a McKinsey & Company report titled 'The Great

Furthermore, according to a report titled 'India Organized Retail

India continues to be among the most attractive countries for

PROJECT REPORT Page 10

British high street retailer, Marks and Spencer (M&S) plans to

Bharti Retail, owner of Easy Day store—supermarkets and hyper

The field of study was conducted at Big bazaar a unit of

The company’s leading formats include Pantaloons, a chain of

PROJECT REPORT Page 11

A subsidiary company, Home Solutions Retail (India) Limited,

Pantaloon Retail is the flagship company of Future Group, a

Headquartered in Mumbai (Bombay), Pantaloon Retail employs

PROJECT REPORT Page 12

The group’s specialty retail formats include, books and music

The group’s presence in Leisure & Entertainment segment is led

Future Group’s joint venture partners include, US-based

The group’s flagship company, Pantaloon Retail was awarded the

PROJECT REPORT Page 13

Future Group shall deliver Everything, Everywhere, Every time for

They will be the trendsetters in evolving delivery formats,

They shall infuse Indian brands with confidence and renewed

They shall be efficient, cost- conscious and committed to quality

They shall ensure that our positive attitude, sincerity, humility

Indianness: confidence in ourselves.