EXECUTIVE SUMMARY

Marketing products using visual merchandising system is an age-old practice but with growing growth of retail industry, the art or arguably the science of Visual Merchandising has gone to occupy a newfound fancy. 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 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. This project deals with components of visual merchandising, and a comparative analysis of six retail lifestyle stores in Bangalore. The comparison has been made taking into account the components of visual merchandising and rating each store on each of these components.

The methodology followed is questionnaire method with a total sample size of 50 respondents, 10 respondents from each store namely Lifestyle, Bangalore Central, Shoppers Stop, Westside and Pantaloons. The data is tabulated and graphically represented through, pie-charts, histograms etc. Findings and recommendations are listed at the end of this project.

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Retailing
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain.

Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Importance of retail marketing:

Advertising

There are two main functions of advertisements: to sell more products, and to inform the

customer. Through newspaper, TV, radio and internet advertisements, retailers can inform their customers of the sales, promotions and in-store events. Moreover, since the media is flooded with advertisements, the ability to create a more eye-catching or attention-grabbing
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ad directly influences sales. Stores that advertise--as opposed to those that dont--are kept at the top of their potential shoppers mind, which can produce sales in the short and long term.

In-Store Promotions

Stores

use promotions to prompt impulse buying behaviour. A shopper may not intend to

buy a product, but if there is a promotion, there is an incentive for immediate action. For example, a shopper may not need another dress shirt, but might still buy one if it is on sale. Additionally, promotions can prompt consumers to recall a product and thus instigate a purchase. Retailers also use promotional periods-- corresponding with national holidays or well-know sales times--to sell off the previous seasons merchandise. Promotional periods spike sales, and are a way retailers can reduce the loss of unsold inventory.

In-Store Atmosphere and Customer Relations

Store design and consumer relationship marketing (CRM) directly affected the way

customers purchase and retain goods. Things like the atmosphere, music, store layout, sales help, and post-purchase support can influence things like shopping time (the longer they shop, the more likely they are to buy), and how gratified they feel with their purchase. The more content a buyer is with their shopping experience, the more likely they are to buy merchandise, and the less likely they are to return it.

Branding Retail Outlets

It is necessary for retailers to develop their brand in order to stand out amongst the many

other stores. With local boutiques, specialty stores, department stores, mass-merchants and internet stores, customers have more choices when it comes to buying. There is competition within each category, and competition between categories. For example, a local boutique selling dress shirts is competing with other local boutiques, and also with the mass-merchant
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who might be selling dress shirts at a cheaper price. It is therefore necessary for the boutique to create a brand position that a customer can identify with, to keep them loyal.

Private Labelling
solidifying

a retail brands private label is the apex of the retail marketing evolution--and the

most recent trend in high-end retailing. This is not a new concept for low- to mid-priced retail outlets, as everything from food to raincoats have been put under their brand's name. But what are new is stores that build their brand to the point where they can sell merchandise at a premium price. Doing so is more cost effective: they can reduce the costs associated with buying other brand names, source cheaper goods from private manufacturers and reap higher profits. As an added bonus, stores benefit from consumer loyalty to their stores and their products.

Ingredients of retail marketing:

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ANALYSIS OF the Indian retail industry

Evolution of Indian retail Industry:
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs, Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment. The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.

Overview:
The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 145 per cent to reach US$ 21.35 billion by 2014. BMI forecasts consumer electronic sales at US$ 29.09 billion in 2011, with over-the-counter (OTC) pharmaceutical sales at US$ 2.69 billion. The former sub-sector is expected to show growth of 55.6 per cent between 2011 and 2014, reaching US$ 45.27 billion, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase slightly more, by 56.5 per cent throughout the forecast period, to reach US$ 4.21 billion.
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China and India are predicted to account for more than 91 per cent of regional retail sales in 2011, and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2011-2014 is forecast by BMI at 48.1 per cent, an annual average 15 per cent. According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India', organised 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 Organised 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 organised retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft. Driven by the growth of organised retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025, according to a report by KPMG. India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organised retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidlyup to US$ 535 billion in 2013, with 10 per cent coming from organised retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, according to the report Expanding Opportunities for Global Retailers, released by A T Kearney. India has been ranked as the third most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2010. Foreign direct investment (FDI) inflows between April 2000 and October 2010, in singlebrand retail trading, stood at US$ 197.04 million, according to the Department of Industrial Policy and Promotion (DIPP).

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Carrefour, the worlds second-largest retailer, has opened its first cash-and-carry store in India in New Delhi. Germany-based wholesale company Metro Cash & Carry (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking to its number to six in the country.

Electronic retail chain major, Next Retail India, plans to open 400 showrooms across the country during January-March 2011 increasing the total number of retail stores to 1,000 by the end of the fiscal year 2010-11.

Jewellery retail store chain Tanishq plans to open 15 new retail stores in various parts of the country in the 2011-12 fiscal.

V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13 stores in 2011, in Tier-II and Tier-III cities.

Reliance Retail, the wholly owned subsidiary of Mukesh Ambani's Reliance Industries, is set to open 150 stores by the end of March 2011 and double the number of stores across the country in all formats within five years.

Future Value Retail, a Future Group venture, will take its hypermarket chain Big Bazaar to smaller cities of Andhra Pradesh, with an investment of around US$ 1.54 million to US$ 4.41 million depending on the size and format.

RPG-owned Spencer's Retail plans to set up 15-20 new stores in the country in 201112.

Spar Hypermarkets, the global food retailing chain of the Dubai-based Landmark Group, expects to start funding its India expansion beyond 2013 out of its local cash flow in the country. So far, the Landmark Group has invested US$ 51.31 million in setting up five hypermarkets and plans to pump in another US$ 51.31 million into the next phase of expansion.

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.

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.

Spain's Inditex, Europe's largest clothing retailer opened the first store of its flagship Zara brand in India in June 2010. It further plans to open a total of five Zara outlets in India.

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Bharti Retail, owner of Easy Day storesupermarkets and hyper martsplans 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.

Policy Initiatives:
100 per cent FDI is permitted under the automatic route for trading companies for cash & carry trading wholesale trading/ wholesale trading. FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand products, according to the Consolidated FDI Policy document. The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multibrand retail. It has written a letter to this effect to the Commerce Ministry. "Multi-brand retail should be permitted with a cap of 49 per cent A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing," the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion in June 2010 on allowing 100 per cent FDI in multi-brand retail. The Securities and Exchange Board of India (SEBI) has notified the increase in the retail investment limit to US$ 4,391.19 in initial public offers (IPOs). The new norms will be applicable to issues that have yet not opened for subscription.

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Structure of the Retail Industry in India:

The retail industry continued in India in the form of Kiranas till 1980. Soon, following the modernisation of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. As has been mentioned earlier the retail sector in India can be widely split into the organised and the unorganized sector. The unorganized sector is predominant. We may discuss in detail the different divisions of the retail in India.

Unorganized Retail Sector

The unorganized retail sector basically includes the local kiranas, hand cart, the vendors on the pavement etc. This sector constitutes about 98% of the total retail trade. But Foreign Direct Investment in the retail sector is expected to shrink the employment in the unorganized sector and expand that in the organized one.

Organised Retail Sector

In the organised sector trading is undertaken by the licensed retailers who have registered themselves to sales as well as income tax. The organised retail sector have in their ambit, corporate backed hypermarkets and retail chains. The private large business enterprises are also included under the organised retail category.The organised retail sector can be further subdivided into:

In store Retailers
This type of retail format is also known as the brick and mortar format. These retail stores are in the form of fixed point sale outlets. They are specially designed to lure the customers. There are different types of stores through which the in store retailers operate.

Branded Stores appear in the form of exquisite showrooms. Here the total range of a
particular brand is available and the quality of the product is certified by the government.

Department stores have a large number of brands and products catering to all basic needs
to luxurious items as well.
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Supermarkets are basically self service retail stores. Discount Stores offer commodities at
reduced prices. In Hyper Marts customers have wide variety of products to choose from and they are also available at discounted rates.

Convenient stores are located in prominent places within the reach of majority of the
customers and do not operate in stringent work hours.

Shopping Malls are a storehouse of a large variety of retail shops situated close to each
other.

Different Segments in the Indian Retail Industry:

The retailing sector of India can be split into two segments. They are the informal and the formal retailing sector. The informal retailing sector is comprised of small retailers. For this sector, it is very difficult to implement the tax laws. There is widespread tax evasion. It is also cumbersome to regulate the labour laws in this sector. As far as the formal retailing sector is concerned, it is comprised of large retailers. Stringent tax and labour laws are implemented in this sector. If the retail industry is divided on the basis of retail formats then it can be split into the modern format retailers and the traditional format retailers. The modern format retailers comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and company owned and operated retail stores. The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple brand outlets. The retail industry can also be subdivided into the organized and the unorganized sector. The organized retail sector occupies about 3% of the aggregate retail industry in India.

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Size and contribution of the retail industry in India:

In terms of value, the Indian Retail industry is worth $300 billion. Its contribution to the Gross Domestic Product is about 10%, the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organised retail sector is expected to triple its size by 2010. The food and grocery retail is expected to multiply five times in the same time frame. The major reason behind the low participation in the Indian retail sector is the need for lumpy investments that cannot match up their break even points. The government policies are being revised from time to time to attract investments in this sector.

The Indian Retail IndustrySky is the limit:

In terms of the retail development index India ranks fifth. In Asia it occupies the second position, next to China. Among all the global markets, the Indian retail market is the most expanding. This is owing to absence in restriction at the entry level. So the large foreign companies can reap the benefits of economies scale by entering the green retail fields of India. There are many reasons why the retail industry in India can reach the zenith. Firstly the organised retail sector in India has a very low contribution to the entire retail sector in the country. Hence there is ample scope for the new players to achieve success in the backdrop of soaring disposable income of the upcoming generation. Secondly, not only have the incomes increased but there has been a sea change in the preferences of the consumers. These factors have acted as a stimulus for the ushering of foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping malls have already mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail Market.

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Road Ahead:
According to industry experts, the next phase of growth is expected to come from rural markets. According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in India', organised retail market in India is expected to reach US$ 50 billion by 2011. The key findings of the report are:

Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent from 2007 to 2015

Rural market is projected to dominate the retail industry landscape in India by 2012 with total market share of above 50 per cent

Driven by the expanding retail market, the third party logistics market is forecasted to reach US$ 20 billion by 2011

Apparel, along with food and grocery, will lead organised retailing in India

Further, the luxury brand in the country is estimated to be worth about US$ 4.06 billion-US$ 4.51 billion and is expanding rapidly driven by the growing aspirations of youth and income levels in the country. Most people constantly scale up spends as aspirations grow. Thus, major international brands are in the process of expanding their retail presence. For instance, Paul & Shark now has two stores with Hyderabad and will have few more by next year, Zegna, another Italian brand, known for its formal wear and quality suits, is also expanding and Diesel will have seven stores in the country. Meanwhile, European football clubs, including Manchester United, Chelsea and Liverpool, are increasingly scouting for partnerships in India to sell their merchandise and also set up chain of coffee clubs and theme shops. The stationery retailing market in India is also witnessing steady growth due to the arrival of organised players in the business. It is estimated that the Indian office products industry is in the range of US$ 2.22 billion with stationery comprising US$ 666.89 million-US$ 889.19 million and growing at 30 per cent per annum.

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Future Group and Reliance Retail are some of the players who are already tapping into the sector and have launched brands such as Staples and Office Depot.

Major Retailers in India:

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

DLF Shopping Malls

DLF Retail Developers Ltd. is one of the troikas of the DLF Group. Besides being India's largest real estate developer, DLF is also of the leaders in innovating shopping malls in India.
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It caught public eye when it launched the 2,50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the next two years. Till last year the company was involved in building 18 malls out of which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls(speciality malls, big box retailing and integrated malls) across 60 cities in next 8-10 years. They are slowly transforming into 'lease' and 'revenue share' models.

Retail formats in India:

Hyper marts/supermarkets: large self-servicing outlets offering products from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small sections; they
are individually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offering quality products and services. Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

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Challenges facing Indian retail industry:

The tax structure in India favours small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill

Retail pricing:
The pricing technique used by most retailers is cost-plus pricing. This involves adding markup amount (or percentage) to the retailer's cost. Another common technique is suggested. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon which the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.

Future:
The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the

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consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

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The level of concentration within the clothing retailing industry:

SWOT Analysis:
A SWOT analysis of the Indian organized retail industry is presented below:

Strength:
1. Retailing is a technology-intensive" industry. It is technology that will help the organized retailers to score over the unorganized retailers. Successful organized retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry. They introduced two innovative logistics techniques cross-docking and EDI (electronic data interchange).

2. On an average a super market stocks up to 5000 SKU's against a few hundred stocked with an average unorganized retailer.

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Weakness:
1. Less Conversion level: Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 2025%. On the other hand, a high street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10%.

2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.

Opportunity:
1. The Indian middle class is already 30 Crore & is projected to grow to over 60

Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment.

2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010. 2. Percolating down: In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

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4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes.

Threat:
1. If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. 2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping.

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Conclusion on retail industry in India:

What, how and in this report I have analyzed in detail the retail industry in India. I have also covered issues like the Foreign Direct Investment in the retail sector, the untapped opportunities that exist in the retail industry in India. I have also discussed about the bottlenecks that the retail industry is facing in India, online retailing in India and the role of Information Technology in the retail sector in India.

Major Findings:
1. The Retail Sector in India can be split up into two, the organised and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc. 2. In terms of value the size of the retail sector in India is $300 billion. The organised sector contributes about 4.6% to the total trade.

3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to the employment of the country.

4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind.

5. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees. This was how Wal-Mart had entered joining hands with Bharati Enterprises.

6. On line retailing is still to leave a mark on the customers due to lacunae that we have already mentioned. In a nutshell we may conclude that the retail industry in India has a very bright future prospect. It is expected to enrich the Indian Economy in terms of income and employment generation.

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Visual merchandising

Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus. It educates the customers, creates desire and finally augments the selling process. This is an area where the Indian textile and clothing industry, particularly, the SMEs lack adequate knowledge and expertise. This inadequacy is best reflected in poor presentation/display and communication in various national and international exhibitions. Therefore this Programme has been conceived to fill this gap. Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions taking place.

History:
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 Museums and department stores in America have a shared history of displaying their products, both having come of age in the last quarter of the nineteenth century. Like world's fairs, department stores and museums crowded everything together on shelves or in display cases. Today displays in museums are referred to as exhibitions, while displays in stores are referred to as "Visual Merchandising. Essentially, visual merchandising is the selling of a store's goods through visual means, incorporating advertising, and window displays, and interior sales floor design and display. Throughout the twentieth century, well-known artists such as Salvador Dal and Andy Warhol created window displays, while other artists who are lesser known were commissioned to design unique objects specifically for visual merchandising purposes.

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1. Sell by showing and promoting the product. 2. Create an emotional connect between the viewer and the display. 3. Encourage the shopper to enter the store. 4. Get the customer to pause and shop the selling floor. 5. Establish, promote, and enhance the stores visual image. 6. Entertain customers and enhance their shopping experience. 7. Introduce and explain new products.

Facility:
Visual merchandising starts with the store building itself. The management decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers. 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. Visual merchandising is not a science; there are no absolute rules. It is more like an art in the sense that there are implicit rules but they may be broken for striking effects. The main principle of visual merchandising is that it is intended to increase sales, which is not the case with a "real" art. Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the stores image. Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual merchandising." Especially in todays challenging economy, people may avoid designers/ visual merchandisers because they fear unmanageable costs. But in reality, visual merchandisers can help economise by avoiding costly mistakes. With guidance of a professional, a retailer can eliminate errors, saving time and money. It is important to understand that the visual merchandiser is there, not to impose ideas, but to help clients articulate their own personal style.

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Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume. VM is an art and science of displaying merchandise to enable maximum sale. VM is a tool to achieve sales and targets, a tool to enhance merchandise on the floor, and a mechanism to communicate to a customer and influence his decision to buy. VM uses season based displays to introduce new arrivals to customers, and thus increase conversions through a planned and systematic approach by displaying stocks available. Recently visual merchandising has gained in importance as a quick and cost effective way to revamp retail stores.

VM helps in:

Educating the customers about the product/service in an effective and creative way. 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.

Status of VM in India:
Unlike the western countries, where VM receives highest priority in commercial planning of a product, the Indian industry understands and practice of the concept of VM is inadequate. With phasing out of quantitative restrictions after the year 2004, the textile industry will have to compete purely on the competitive edge of the products and VM will be a helpful tool in projecting the uniqueness of the products and thereby increasing the market access and sales. It is high time that the Indian textile and clothing industry, therefore, understands and adopts

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the scientific and professional system of VM rather than the traditional practices of display of products and communication.

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 and merchandise. Making it easier for the shopper to self-select. Making it possible for the shopper to co-ordinate & accessorize. Informing about the latest fashion trends by highlighting them at strategic locations.

Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, easy to shop and find the product format. This easier format is especially implemented in fast fashion retailers.

Guidelines for an effective Visual Merchandising:

There are certain things which a retailer needs to take care while proceeding with the process of displaying his products. These components when combined together in a proper ratio will make a successful outcome.

Make merchandise the focal point:

The main goal of display is to showcase the products within the overall display area. Customers give three to five seconds of their attention to window display. The retailers visual message should be conveyed to the customer in that short period of time. It should not be like an unsuccessful TV advertisement, where the product is forgotten altogether and only the concept of the commercial remains in the mind of the viewer. The arrangement of
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window display should go with the product and should not suppress them to make it discernable to the eye.

Right choice of colours is vital:

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. A retailer has to focus on the right choice of color that would match with the theme of display. It is not possible to satisfy everyone all the time, but it is possible to cultivate the taste of customers gradually and purposefully. A right choice of colors in the display items can turn walkers into stoppers and significantly convert them into customers. It is therefore mandatory to choose the right color for the right theme of display. A Halloween display would require black color in the display theme. Valentines theme should be ruled by red color supplemented with pink and white. A display of babys accessories should reflect light shades of pink and blue colors. A Christmas display should contain colors of red, green, gold and silver.

Display themes to appropriately support the product:

A theme is a display of sale items of similar categories e.g. a display of kitchen accessories. Its essential to have themes for all retail displays. They can be romantic, wild, or capricious, and capture peoples imaginations.

A good theme will lure the customer with a shopping mood into the store. Themes mainly depend upon the retailers imagination and creativity. Focusing on the right theme rather than creating a display with expensive raw
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materials is the key to successful window display. A shoe store theme can be a group of elves buying shoes. A theme for display of casual wears can be a group of mannequins sitting casually at a get together in different poses. Related themes will tug the heartstring of the customers and will pay off.

Display should complement the retailers other strategies:

The content of the display should complement the in store environment and other marketing strategies of the retailer. If the retailer has a specific logo, the colors of the display can reflect the same color of the logo. For e.g. McDonalds display, the clown is of the same color, red and yellow as in their logo.

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. Effective cleaning schedule of showcases and display fixtures is required.

Change the display settings in frequent intervals:

Changing the arrangement of the displays in regular intervals will initiate new interest about the products in the minds of the customer. By designing a plan-o-gram 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 symbolise the brand keeping the target audience in mind.

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Shoppers stop

Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. With the launch of the Navi Mumbai departmental store, Shoppers Stop has 34 stores in 15 cities in India. Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name Shoppers Stop in India. Shoppers Stop has 35 stores across the country and three stores under the name HomeStop. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories.Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad. Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie , Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, whos men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India. In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New mantra.And introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, Dior across the stores. The focus of the reposition was on the service, ambience upgradation and customer connect. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth, up the fashion quotient through
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merchandising, and create ambience that connects with the mindset. The brand campaign addresses environment-related issues in a youthful, tongue-in-cheek manner. Shoppers Stop as a brand active on social media marketing platforms with Facebook and Twitter to connect with this audience. Shoppers Stops has a loyalty program called First Citizen. They also offer a co-branded credit card with Citibank for their members.

From its inception, Shoppers Stop has progressed to become a premier Fashion & Lifestyle destination for the family. Today, Shoppers Stop is known for its superior quality products, services and above all, for providing a complete shopping experience.

With an immense amount of expertise and credibility, Shoppers Stop has become the highest benchmark for the Indian retail industry. In fact, the companys continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today.

Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 65 stores across the country. It has also invested in Hyper CITY, a hypermarket chain which has been rated as amongst the top 100 stores worldwide.

With exclusive brands as well as domestic and international brands, Shoppers Stop continues its expansion across the country with the department stores, bookstores and hypermarkets.

Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mother care PLC, and cosmetic boutique stores with MAC.

Vision:
To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category.

Mission:
Nothing but the best

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Visual Merchandising:
Shopper Stop follows the methods of visual merchandising; which 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. Visual merchandising starts with the store building itself. The management decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers. 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. Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the stores image. Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual merchandising." The store layout is in the form of a race track.

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Category Management:
Category management is a retailing concept in which the range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories (examples of apparel categories might be: mens wear, womens wear, children wear). Each category is run as a "mini business" (business unit) in its own right, with its own set of turnover and/or profitability targets and strategies. Introduction of Category Management in a business tends to alter the relationship between retailer and supplier: instead of the traditional adversarial relationship, the relationship moves to one of collaboration, with exchange of information, sharing of data and joint business building. The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the sales of individual products. Suppliers are expected, indeed in many cases mandated, to only suggest new product introductions, a new planogram or promotional activity if it is expected to have a beneficial effect on the turnover or profit of the total category and be beneficial to the shoppers of that category. One key reason for the introduction of category management was the retailers' desire for suppliers to add value to their (i.e. the retailer's) business rather than just the supplier's own. For example, in a category containing brands A and B, the situation could arise such that every time brand A promoted its products, the sales of brand B would go down by the amount that brand A would increase, resulting in no net gain for the retailer. The introduction of category management imposed the condition that all actions undertaken, such new promotions, new products, re-vamped planogram, introduction of point of sale advertising etc. were beneficial to the retailer and the shopper in the store. A second reason was the realization that only a finite amount of profit could be milked from price negotiations and that there was more profit to be made in increasing the total level of sales. A third reason was that the collaboration with the supplier meant that supplier's expertise about the market could be drawn upon, and also that a considerable amount of workload in developing the category could be delegated to the supplier

Site Location:
Shoppers Stop is a free standing store, mostly located away from central business district. This type of retail location is basically any stand-alone building. It can be tucked away in a neighbourhood location or right off a busy highway. Depending on the landlord, there are generally no restrictions on how a retailer should operate his business. It will probably have
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ample parking and the cost per square foot will be reasonable. The price for all that freedom may be traffic. Unlike the attached retail locations where customers may wander in because they were shopping nearby, the retailer of a free standing location has to work at marketing to get the customer inside.

Promotions:
Apart from conventional promotion programs of running ads on television, print media advertising, radio advertising and outdoor advertising, Shoppers Stop runs its own loyalty program which has been giving a very big boost to its sales.

The Company has pioneered Indias first retail loyalty program - First Citizens. The First Citizens base grew from 781,000 to 1,013,000 over customers in this year. During the current year, the First Citizens contributed 65% of the Companys annual sales. The First Citizen program has 3 tiers - Classic Moments (entry level), Silver Edge and Golden Glow. Members fall into the various tiers on the basis of their spending with the company. First Citizens also earn differential reward basis on their current tier of membership. First Citizens receive: Reward points on all their spending. Reward points can be redeemed for a wide variety of merchandise at Shoppers Stop. Exclusive schemes, benefits and promotions.

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 Extended and exclusive shopping hours - especially during the festive season. Special previews before the sale periods. Invitations to exclusive events - both in-store as well as those organized outside the stores. Home delivery of altered merchandise. Exclusive First Citizens lounge at select stores to relax after hectic shopping. First Citizens always stay updated with all details pertaining to their membership as well as the best of offers and privileges available, through a unique service launched last year - First Citizens First Through this service First Citizens get all the information that they want on their mobile phones simply by sending an SMS. In the coming year your Company proposes to announce some ground breaking programs for its First Citizens which will not only enhance front end sales but will also strengthen customer loyalty for the company.

Logo:

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lifestyle

Lifestyle entered in India in 1999 and in a little over a decade has come to be recognized amongst leading retail companies in the country. Positioned as a trendy, young, colorful and vibrant store, Lifestyle offers consumers not just the ease of shopping but also provides for an enjoyable shopping experience. Lifestyle is a branch of a Dubai based retail-chain, Landmark Group. With more than 30 years of experience, Lifestyle India has become the foremost retailer across Gulf. Lifestyle India is found to be a vibrant, youthful and trendy brand, which offers customers an assortment of clothing lines at an incomparable value in terms of money. Lifestyle offers an astounding experience of shopping and is amongst the major leading retail groups of the Middle India and East, maintaining constant growth by their international brand, core and valued business approaches. Each Lifestyle store from Lifestyle International (P) Ltd. brings together five concepts under one roof - Apparel, Footwear, Children Wear & Toys, Household & Furniture and Health & Beauty; offering a convenient one-stop shop and a choice of over 250 national & international brands. The Group has also introduced Home Centre, a one stop destination for affordable furniture, home dcor and soft furnishing that truly represents style, comfort and individuality. In keeping with the Group's tradition of making every shopping experience even more rewarding and memorable, The Inner Circle - Landmark Group's Loyalty program allows members to enjoy exclusive benefits and privileges such as reward points and exciting offers.

Key Facts:

Year of Inception - 1999 Origin - India Stores - 25 Retail Space - 1.1 million sq. ft.

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Major locations of Lifestyle India outlets:

At present, there are around eight Home-Center stores and 15 Lifestyle stores in every state and city of the country, which includes Gurgaon, Noida, New Delhi, Pune, Mumbai, Jaipur, Hyderabad, Chennai, Bangalore and Ahmedabad.

Awards & Achievements by Lifestyle India:

Lifestyle India won The Most Respected Company in the Retail Sector award by Business World, in 2004 and 2003.

Another award Lifestyle won for KSA Technopak for Excellence in Retail by ICICI in 2005.

Lifestyle got another award by Images Retail for The Most Admired Retailer of the Year Departmental Store, 2008.

Award by Fashion Award of Lycra Images for the The Most Admired Large Format Retailer of the Year, 2006.

Retailer of the Year, 2006 was awarded by Reid & Taylor.

Industry of Specialization:
Lifestyle merchandise for youth

Lifestyle offers a complete fashionable wardrobe for the youngsters with affordable and trendy range of merchandise providing stunning wardrobe essentials like formals, menswear, and women clothing line, chic clothes, ethnic wear and sportswear.

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Furniture:
Lifestyle has a brand by the name of Home Centre, which is one stop destination for purchasing the furniture, home furnishings and home ware, which epitomizes individuality, luxury and elegance. This particular section of Lifestyle store houses an array of classic and contemporary linen and furniture along with various home accessories, therefore, providing the potential buyers complete and affordable home solutions. This section comprises home ware, furnishings, gifts, cookery, cutlery, glassware, rugs, curtains and carpets.

Baby's shop lifestyle:

The kid's section at Lifestyle India offers an entire product range for the children starting from infants to 14 years old, with several international leading brands, which are exclusive only to Lifestyle.

Lifestyle accessories:
An attractive combination of infinite beauty, endurance and romance, this section of Lifestyle offers a selection of aromatherapy and natural products in various fragrances and colours, which makes the products very exotic and unique.

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Westside
Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's largest and fastest growing chains of retail stores. The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already established 36 Westside departmental stores (measuring 15,000-30,000 square feet each) in Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing. Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an ample assortment of products made available at the lowest prices, aptly exemplifying its Chota Budget, Lambi Shopping motto. At present Star Bazaar has 4 stores in 3 cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an eclectic array of products that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items at the most affordable prices. Star Bazaar also includes a largerange of fashionable in-house garments for men, women and children, exclusively available at the store. In addition, Trent recently acquired a 76% stake in Landmark, one of the largest books & music retail chains in the country. Landmark began operations in 1987 with its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark have 10 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each in Bangalore, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow and Ahmedabad. Until 1996, Landmarks product portfolio comprised books, stationery, and greeting cards. It was later that music was added to it. Landmark also sparked the trend of stocking curios, toys and other gift items. What separates Landmark from other stores of its kind is the range and depth of its stock. This story began circa 1998 when The Tatas acquired Littlewoods a London based retail chain. This acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently operates Westside). Littlewoods was subsequently renamed Westside.

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In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise creating a loyal following. Currently, the company has 36 Westside stores measuring 15,00030,000 square feet each across 20 cities. With a variety of designs and styles, everything at Westside is exclusively designed and the merchandise ranges from stylized clothes, footwear and accessories for men, women and children to well-co-coordinated table linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling space, prime locations and coffee shops enhance the customers shopping experience.

Mission statement:
To be regarded by our customers as the most relevant retailer in the country.

Services & Store Atmosphere in Westside:

Pre purchase services include accepting telephone & mail orders, advertising, window

& interior display, fitting rooms, fashion shows It provides post purchase service including shipping & delivery, gift wrapping, adjustments & returns, alteration & tailoring It also provides ancillary services including general information, check cashing, parking, restaurants, repairs, interior decorating, credit etc. The Westside stores wear a bright, festive look and, in keep with the mood of the season, hosting a festival bright. With the sole objective of rewarding its loyal customers for their patronage, Westside has lined up a bonanza of surprise gifts. Every shopper gets a scratch-and-win card which entitles them entry into a contest. Those making purchases above Rs 1,500 are also entitled to receive other pleasant surprises The trendy household section has a complete new range of bed linen in elephant motifs, floral motifs and paisley design. The color palette for the festive collection includes flaming orange, royal blue and other vibrant colors to depict festivity.

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The gift section has a plethora of gifts terracotta pots, urns, knick-knacks and diyas in beautiful colors, shapes and sizes. The store has also introduced a new range of furniture and other household goods, including cabinets, butler trays and mirrors in wood with an antique finish. An innovative range in wrought iron and rope has been introduced in utility items which include magazine racks, folding stools, jam pots on trays and Ganesha in brass and terracotta.

Promotions:

1. Club west card program

An assured return-and-exchange policy reinforces customer confidence in the chain. Another winning Westside idea is Club West, a customer loyalty programme launched in May 2001. The 30,000-plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels, home delivery of alterations, and best of all, special shopping hours on the first day of any discount sales event organized by the chain.

Important benefits of club west card:

Most attractive rewards shopping Instant use of the card Easy to operate Extra convenience Validity at all stores

Westside does its regular brand building through advertisements in the media with brand ambassador Yuvraj Singh and other young models; more important are its in-house promotions, which peak during the three main festive seasons: summer, Diwali and Christmas. The promotions are mostly theme based, with decorations to match, live bands and other attractions. 2. Fashion Logy: Westside has launched a new ad campaign titled 'Fashion Logy'. The campaign is designed to provide the buyer with not just clothing, but also guides and aid on dressing smart, styling and accessorizing. The campaign sees on-ground activities and promotions designed to interact with the consumer about their style

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Logo:

Westside outlet:

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Pantaloons

Incorporated in October 1987, Pantaloons ranks amongst the top five retailers in India.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, Top 10, mBazaar 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 in, selling home furniture products and E-Zone focussed on caterings 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 Y ear 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. Pantaloon Retail India Limited (PRIL) was incorporated on October 12,1987 as Manz Wear Private Limited under the stewardship of Mr.Kishore Biyani. The Company was converted into a Public Limited Company on September 20,1991 and on September 25,1992 the name was changed to Pantaloon Fashions (India) Limited and the same time it went public.

From a humble beginning in 1987, Pantaloon has today evolved as a leading manufacturer-retailer in the country with 13 departmental stores and 5 hypermarkets operating across the country. It has been a remarkable journey for PRIL as it evolved from a manufacturing to a completely integrated player controlling the entire value chain.

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It has been a pioneer in introducing the concept of Mega Retail Stores in India called 'Pantaloons' for the entire family. It has diversified, and has come up with its new concept with Big Bazaar and Food Bazaar. In an extremely price-sensitive market like India, the Pantaloons chain of stores has been successful in maintaining the equilibrium between quality and price.The company has aggressive growth plans to achieve scale of economy and take leadership position in this evolving industry. PRIL's ability to evolve from smaller format into large format retail stores is well proven. With aggressive growth plans the company has identified many locations across the company to roll out stores in the future. The company plans to increase the retail space under control from 2 lakhs in 02 to more than 1 million square feet over the next 3 years to emerge as a 'Godzilla' of the Indian Retail Industry.

Mission:
"We share the vision and belief that by improving our performance through innovative spirit and dedication, we shall serve our customers and stakeholders satisfactorily."

Brands:
John Miller Shirts - The shirt inspired by America Pantaloon - India's No.1 trousers Bare Annabelle -Western wear for the contemporary modern woman Agile - More than Sportswear Honey - T-2000 best trousers of the country Bare Kids - For children from age group of 3-14 age group

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Logo:

Pantaloons outlet:

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Bangalore central
Bangalore Central is a shopping mall, situated in Bangalore, India. Spread over 120,000 sq ft (11,000 m2), it is situated on Residency road, off M G Road. Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of its kind in India. The thought behind this pioneering concept was to give customers an unobstructed and a pure shopping experience and to ensure the best brands in the Indian market are made available to the discerning Indian customer. Sprawling over 1 lakh 20 thousand sq. ft. area, Bangalore Central has everything a family would need, for a complete shopping experience. The 6 storied Seamless Mall has specific areas dedicated to women, men, children, infants, food and beverages, home appliances and furnishing, toys, play area for children among others.

Located in the heart of the city, Bangalore Central houses over 300 brands across categories, such as apparels, footwear and accessories for women, men, children, infant basics, apart from a whole range of Music, Books, Coffee Shop, Food Court, Super Market (Food Bazaar), Fine Dining Restaurant, Pub and Discotheque. The mall also has a separate section for Concert/Cinema Ticket services such Booking, Bill as Travel, Finance, Payments and other Investment, miscellaneous Insurance, services.

Bangalore Central also houses Central Square a dedicated space for product launches, impromptu events, daring displays, exciting shows and art exhibitions. Bangalore Central conceptualised with a theme and tagline that says Shop, Eat and Celebrate has several unique features. Centralized Billing, Customer friendly environment and Indias first live Radio Central and an in-house radio station are only some of the many things that the retail giant Pantaloons has in the offing for Bangalore Centrals customers. Bangalore Central helps the brands in unleashing the complete potential of a brand. Bangalore Central, because of its seamless nature offers direct walk-ins to the brand. The consumer gets to experience the brand in a setting that is classy, uniform and bereft of boundaries. The brands at the Mall have the facility to organize in-store brand promotions// launches / schemes and in turn strengthen their image and branding. The brands are also laid out in such a way that it is easy for the customers to locate and access a category in which all the related brands are showcased together. This means that once a customer walks in to the category, all the

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brands get the customers attention.

Commenting on the unique format of Bangalore Central Mall, Mr. Kishore Biyani, Managing Director, Pantaloon Retail (India) Limited said, Bangalore Central is based on the concept of a Seamless Mall with the objective to provide world-class retail experience to customers and brands. We are extending the retail experience beyond just shopping to shop, Eat and Celebrate, the spirit that symbolises affluent India.

Logo:

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Literature review
Article # 1:

Title

Visual merchandising: a neglected area in UK fashion marketing?

Author - Gaynor Lea-Greenwood Link - http://www.emeraldinsight.com/journals.htm?articleid=857234

Review:
This paper outlines recent research which demonstrates that the re-naming of display as visual merchandising has led to centralisation and professionalism of the function. Centralisation of visual merchandising has given the function a strategic profile which has to date been neglected within the literature. The move towards centralisation and therefore increased professionalization and sophistication of the creative process is discussed and includes the following benefits outlined by the respondents: (1) communicating a cohesive brand image; (2) differentiating the offer from the competition; (3) integrating promotional effort across the brand; (4) increasing availability of technology to facilitate the process. The paper concludes with future research avenues and recommendations.

Article# 2:

Title Visual Merchandising - 'The changing scenario Authors - Ms. Sharmila Dua and Dr. Anjali Karolia
http://www.fibre2fashion.com/industry-article/13/1212/visual-merchandising-the-changingscenario1.asp

Link

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Review:
The store derives as much of its identity, character and gravity from its physical contours, as from the products it houses and the individuals who manage the transactions there in. It includes not only the products on sale but also the decor, the shop floor and ceiling, restrooms and trial rooms, staff uniforms, lipstick color of female personnel and tie knots of male personnel. It is also inclusive of the attitude of your personnel who interact with customers. Hence everything that makes an impact on the perspective customer is part of visual merchandising.

Article# 3:
Title scope of retail in India, Monday, June 21, 2010 Author C.K CHINMAYAPRASAD Link - http://ckchinmayaprasad.blogspot.com/2010/06/scope-of-retail-in-india.html

Review:
The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort.

Article # 4:
Title - India Organised Retail Market 2010 Author - Knight Frank Link - http://retail.franchiseindia.com/articles/Retail-Business-Practice/MarketResearch/India-Organised-Retail-Market-2010-250/

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Review:
The article determines the performance of the operational malls in terms of occupancy, rentals; retail formats and also foresees the demand-supply dynamics till 2012. The other information which is obtained from this are as follows:

Knight Frank India estimates Mumbais Organized Retail Stock (ORS) to touch 20 million sq .ft. by 2012 while countrys ORS estimated to reach 95 million sq ft 6.4 million sq ft retail space to be available in Mumbai by end of 2010 4.7 million sq ft to be completed over the next two years 1.76 million sq ft of retail space currently vacant in the city.

In Mumbai, 6.4 million sq ft of retail space will be available by the end of 2010 and about 4.7 million sq ft will be completed over the next two years. For Chennai market, approximately 7.49 million sq ft of organized retail space is expected to come up during the next three years.

Article # 5:
Title -Indian retail sector to grow to about $900 bn by 2014
Author A.k. Shyamsundar Link - http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/indianretail-sector-to-grow-to-about-900-bn-by-2014-pwc/articleshow/7420035.cms

Review:
The report said in Asia as a region retail sales are expected to grow to more than $ 8.5 trillion in 2014 from USD 5.4 trillion in 2010.Multinational retailers such as Wal-Mart, Tesco, and Metro will continue to expand their operations in Asia as modern retail outlets continue to rise in popularity. Demand in food, beverage and tobacco sector in Asia is expected to grow moderately at 3.4 per cent during 2010-2014, in value, sales of food are expected to almost double from $2.7 trillion in 2010 to USD 4.6 trillion in 2014. Demand growth will be strongest in China, where it is predicted to average 5.7 per cent in the forecast period. India will see 3.2 per cent average annual demand growth.

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Research design
Title of the research:
A Study on the Customer Perception towards Visual Merchandising in Selected Retail Outlets in Bangalore.

Objectives of the study :

To understand the dynamics of visual merchandising To capture the perceptions of consumers towards visual merchandising. To make appropriate recommendations for an effective visual merchandising To make a comparative analysis of five different lifestyle stores in Bangalore.

Scope of the study :

This study is limited to a comparative analysis confined to these five lifestyle stores in Bangalore city only. Furthermore it covers only the aspects or components of visual merchandising.

Research methodology:
Primary data was collected using the structured questionnaire. A sample size of 50 respondents were chosen through random sampling technique. 10 respondents in each store were asked to fill the questionnaire.

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Construction of questionnaire:
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 spending too much time.

Sample Size: 50 (10 in each store) Sampling technique: Random Sampling

Secondary data:
Secondary data was collected from various articles published in magazines, internet, company brochures and publications.

Limitations of the study:

The project had to be done keeping in mind a time frame. The study is limited to the stores in Bangalore city only. Branches outside Bangalore are not taken into account.

Lack of interest from the respondents. Limited information about the outlets on the internet. So, secondary data collection became tough.

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Data analysis and interpretation

1) How often do you visit the store? Response Respondents Weekly 9 Fortnightly 12 Monthly 23 Others 6

visiting frequency

12%

18%

weekly 24% 46% fortnightly monthly others

Here we can see that most of the respondents (46%) are monthly visitors of the store.

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

Response Respondents

Very important 33

Important 13

Neither important nor unimportant 4

Not important 0

ambience

2% 8% very important

25%
important

65%

neither important nor unimportant not important

Here we can see that the ambience of the store is a very appealing factor for the customers. The store should therefore keep a very decent ambience.

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3) How pleased are you with the store display?

Response Respondents

Very pleased 21

Pleased 27

Neither pleased nor displeased 2

Displeased 0

display

0% 4% 42% very pleased 54%

pleased
neither pleased nor displeased displeased

Here we can see that store display is a very vital part of visual merchandising. Most of the respondents are pleased with the store display

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4) How appealing is the lighting, choice of colours, and material in the store?
Response Respondents Very appealing 13 Appealing 29 Neither appealing nor unappealing 8 Unappealing 0

lighting, colour and materials

0% 16% 26%

very appealing
appealing neither appealing nor unappealing unappealing

58%

Most of the respondents have found the lighting, colours and materials appealing. This is a good indication. The stores should maintain this.

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5) How probable are you to purchase a product without pre planning?

Response

Very probable

Probable

Not probable

Not

at

all

probable Respondents 6 19 14 11

probablity of pre planning

3% 35%

15%

very probable probable not probable 47% not at all probable

Majority of the respondents are probable about the pre planning.

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6) How informative are the signs in the store?

Response

Very informative

Informative

Not informative

not at all informative 0

Respondents

21

29

store signs

0%

0%

42% very informative 58% informative not informative not at all informative

All the respondents feel that the store sign are informative enough to guide them inside a store.

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7) Do you agree that the visual merchandising help retailers to communicate retail brand message so that the customers can make better informed choices?

Response Respondents

Totally agree 27

Agree 21

Neither agree nor disagree 2

Totally disagree 0

visual merchandising helps to communicate

4%

2%

totally agree 41% 53% agree neither agree nor disagree totally disagree

Here we can see how important is visual merchandising as a mode of communication between the retailer and the customers.

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8) Do you agree that the window display (for the sake of VM) should be changed weekly or fortnightly to ensure fresh display?

Response Respondents

Totally agree 29

Agree 19

Neither agree nor disagree 2

Totally disagree 0

window display changing frequency

2% 4%

37% 57%

totally agree agree neither agree nor disagree totally disagree

Majority of the respondents feel that window display should be change every fortnight.

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9) Do you agree that the impulse items like perfumes, watches, ties, wallets, gift items and accessories should be close to the entry and exit doors for non-serious customers and casual customers so that they can browse the whole store?

Response Respondents

Totally agree 16

Agree 23

Neither agree nor disagree 11

Totally disagree 0

positioning of impulse items

2% 22% 31% totally agree agree neither agree nor disagree 45% totally disgree

Most of them feel ha positioning of impulse items should be in front of the exit and entry. This will catch the attention of the customers quickly.

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10) Do you agree that the retailers must ensure the distance between the aisles so as to facilitate the easy for movement of shoppers?

Response Respondents

Totally agree 39

Agree 11

Neither agree nor disagree 0

Totally disagree 0

spacing

0% 22%

0%

totally agree agree neither agree nor disagree 78% totally disgree

Every one prefers to shop in a spacious area, taking their time to look around the store and choose the products.

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11) Do you agree that the retailers should avoid too many floors because shoppers would be tired?
Response Respondents Totally agree 17 Agree 29 Neither agree nor disagree 4 Totally disagree 0

number of floors in a retail store

0%

0%

37% totally agree agree 63% neither agree nor disagree

totally disgree

All the customers seek convenience. They do not prefer moving around and going up and coming down for checking out the products. They want everything at one place.

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12) Do you agree that the store display should not be contrast to the section in which it is and should not be un aesthetic?

Response Respondents

Totally agree 43

Agree 7

Neither agree nor disagree 0

Totally disagree 0

relativity and authenticity

0% 7% 13% totally agree agree neither agree nor disagree 80% totally disgree

Most of the customers expects authenticity and relativity and uniformity in a retail store. They want things to be kept in order so that it becomes easy to find out things.

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13) Do you agree that the VM should be powerful enough to persuade the customers to visit as many aisles as possible?

Response Respondents

Totally agree 37

Agree 11

Neither agree nor disagree 2

Totally disagree 0

power of visual merchandising

0% 4% 22% totally agree

agree
74% neither agree nor disagree totally disgree

Maximum number of respondents feels that VM should be strong enough to attract customers and create interest in them for buying the products. The concept is show more to sell more.

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14) Do you agree that the exposure through VM is a significant variable in consumer decision-making?

Response Respondents

Totally agree 32

Agree 18

Neither agree nor disagree 0

Totally disagree 0

exposure through visual merchandising

0% 16%

0%

totally agree

agree
neither agree nor disagree 84% totally disgree

Maximum number of respondents accepts that VM influences consumer buying behaviour.

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Findings and suggestions

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. The minute he/she walks in, an image of the store is formed. This image is extremely important to the retailer if he wants to bag a new customer. Hence the ambience is to be given utmost importance. A retailer needs to hire a good interior decorator and if possible use ergonomics while designing a store. Visual merchandising will lead to impulse purchase of the product. Visual merchandising is used to attract shoppers to view the product more closely. 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. All the customers seek convenience. They do not prefer moving around and going up and coming down for checking out the products. They want everything at one place.

Visual merchandising appeals to every customer. Majority of the respondents are probable about the pre planning. But visual merchandising can be effective in non planned buying activities.

The store should be spacious enough to give the customers a calm shopping experience All customers expects authenticity and uniformity in the stores. Retailers should keep this in mind.

Visual Merchandising enhances the pleasure of shopping experience.

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 Store windows can be used effectively to entice people on the streets to walk into the store. Promotions, props and decorative items are huge attractions with regard to visual merchandising. anniversaries. Visual merchandising enhances a customers willingness to buy things without thinking. The retailers should come up with more effective VM plans which will boost up their sales. Unfortunately, stores use these tools only during festivals and

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Conclusion
This project has helped me understand the importance and significance of visual merchandising and its impact on consumer buying behaviour. It has given me exposure to the practical side of retailing and at the same time enhanced my knowledge by applying theory learnt in class to practice.

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.

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Bibliography
Books:
Retail Management By Ron Hasty & James Reardon Marketing Management - Philip Kotler Research Methodology - Cooper and Schindler

Journals and magazines:

4 Ps Business World Business Today

Internet

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Questionnaire

Dear Sir/Maam I am a student of BBA in Christ University, Bangalore. As a part of the BBA curriculum, I have taken up a research project on VISUAL MERCHANDISING IN RETAIL UNITS. In this connection, I need some information. Below is the questionnaire. Kindly give your

responses to the questions in the questionnaire. I sincerely assure your responses will be kept strictly confidential and shall only be used for academic purpose. I shall greatly appreciate your cooperation in completing my research project. Mr. Sandipan Sarkhel

Visual Merchandising (VM) is defined as selling a product through a visual medium. It is arranging items for display and thereby turning a passive looker into an active buyer, through use of colour, texture, composition and visual communication.

May I know your name? ____________________________________ How old are you? Sex: ______ ______

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1) How often do you visit the store? a) Weekly b) fortnightly c) monthly d) other(please specify)

2) How important is the ambience of the store while shopping? a) b) c) d) Very important important neither important nor unimportant not important

3) How pleased are you with the store display? a) b) c) d) Very pleased Pleased Neither pleased nor displeased Displeased

4) How appealing is the lighting, choice of colours, and material in the store?

a) b) c) d)

Very appealing Appealing Neither appealing nor unappealing Unappealing

5) How probable are you to purchase a product without pre planning? a) Very probable b) Probable c) Not probable d) Not at all probable

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6) How informative are the signs in the store?

a) b) c) d)

Very informative Informative Not informative Not at all informative

7) Do you agree that the visual merchandising help retailers to communicate retail brand message so that the customers can make better informed choices?

a) Totally agree b) agree c) Neither agree nor disagree d) Totally disagree

8) Do you agree that the window display (for the sake of VM) should be changed weekly or fortnightly to ensure fresh display?

a) Totally agree b) Agree c) Neither agree nor disagree d) Totally disagree

9) Do you agree that the impulse items like perfumes, watches, ties, wallets, gift items and accessories should be close to the entry and exit doors for non-serious customers and casual customers so that they can browse the whole store?

a) b) c) d)

Totally agree Agree Neither agree nor disagree Totally disagree

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10) Do you agree that the retailers must ensure the distance between the aisles so as to facilitate the easy for movement of shoppers?

a) b) c) d)

Totally agree Agree Neither agree nor disagree Totally disagree

11) Do you agree that the retailers should avoid too many floors because shoppers would be tired?

a) b) c) d)

Totally agree Agree Neither agree nor disagree Totally disagree

12) Do you agree that the store display should not be contrast to the section in which it is and should not be un aesthetic?

a) b) c) d)

Totally agree Agree Neither agree nor disagree Totally disagree

13) Do you agree that the VM should be powerful enough to persuade the customers to visit as many aisles as possible? a) b) c) d) Totally agree Agree Neither agree nor disagree Totally disagree

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14) Do you agree that the exposure through VM is a significant variable in consumer decision-making? a) b) c) d) Totally agree Agree Neither agree nor disagree Totally disagree

15) Please recommend some measures to make VM more effective, more appealing and more propelling.

__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ _________________________________________________________________________

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