Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)

7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)

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Classify customers on the following two basis

1. Hypothetically2. Empirically derived evidence


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Theoretically customers can be divided in to

ProspectorsReluctant shoppers


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Prospectors:

Customers who are generally positive aboutshopping

View retail environment as a hunting ground forfresh ideas, fashion & bargains

Such persons play a game with retailers in whichthey get good value for their money


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Based on surveys the following customers areclassified(differentiated on the basis of their motivation and store preferences).

Based on analysis of survey responses of customers , A study wasdone way back in 1992 at supermarkets in Britain & US

And this revealed three categories:

The heavy buyersCongestion (overcrowding) dislikersLocal shoppers


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The heavy buyers: Having larger incomes & householdsage below 45 yearshave preference for large volumesSelect out-of-town stores

Congestion Dislikers :Similar to reluctant shopperClaim to avoid peak time shoppingHold management responsible for any delay


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Local shoppers :Prefer to shop at small local stores

Spend less moneyMore often are old people, coming from smallhouseholds


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Compulsive (habitual) shoppers :More often own credit cardsYoung in ageUsually womenLower self-esteemIndicate addictive shopping behaviorThus more of customers having emotional problems

Loyal shoppers :Prefer to frequently patronage a particular storePurchase merchandise sort by them.

Customer Classification - 2


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Indian market is no more a mass marketwhich can be served in a single way

Thus based on that KSA Technopark,consumer outlook study proposed threecustomer categories:

Technology babiesImpatient AspirersBalance seekers


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Technology babies :

Shoppers who fall in age between 8-19 years

Techno savvyGadget loving young customers who love spendingmoneyMore spending on books, music, mobile phones,eating out, footwear & apparel


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Impatient Aspirers :

Shoppers who fall in age between 20-25 yearsAggressive, independent, indulgent (non-judgmental)

& career driven shoppersFor whom creativity and Customization counts greatwhile shopping

Balance seekers:Fall in age between 26-50Sober and sophisticated

Fond of high end gadgets but spend cautiously


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Indian retailer aggressively foray (venture) into retailing by

Adapting multiple store formats

Diverse product lineDispersed location

But now faced inter-related issuesEver transient customer preferenceDiminishing operational margins

Increasing competition from the other players


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H ence continuous pressure to create

increasing value for the customers


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Have you ever thought of why a customermoves all the way to MusicWorld to buy

his/her favorite album

Same is available more cheaper atneighborhood stores.


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http://images.google.co.in/imgres?imgurl=http://media.canada.com/a373a9c0-95d4-4a46-a780-e930d6c76147/071113-music-world2.jpg&imgrefurl=http://www.canada.com/vancouversun/news/business/story.html%3Fid%3D8d17e6bd-ec94-4870-81c7-8a5e959115c9&usg=__eDfkd0DuZnCs_v_0lLSZAu2736U=&h=322&w=382&sz=24&hl=en&start=4&itbs=1&tbnid=oDZatAT_K0vUNM:&tbnh=104&tbnw=123&prev=/images%3Fq%3DMusic%2BWorld%26gbv%3D2%26hl%3Den%26safe%3Doff


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Has redefined the shopping for musicIts store design and visual merchandising initiativesprovides an enduring shopping experience.

MW has used bright colors in its interiorsHas set up listening posts (where customer can listento music and buy if they wish)

Music is played on Bose speakers continuously &thats probably the most attracting feature.


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Is the primary concern of the retailerBut creating an image is not an easy taskAs the attraction is relative to various stimuliattachedLike

Physical facilitiesLocationMerchandise offeredServices providedPricing policiesPromotional activities


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Quality of the merchandise offered, prices &assortmentAdvertising, external attractiveness,

salesmanship & fashionability.Convenience of location, products offered,shopping experience, ease in transaction

Cleanliness of the premises, credit facilities,level of customer sophistication, free spaceinside and outside.


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In broader sense THE

EXTERIOR & THE INTERIOR design of the storeare some of the keydeterminants of a retailersimage.


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It is the most significant exteriorAs it displays the store name.Marquee is the painted Signboard

It typically carriesStore nameTrademark

Other relevant information like captionsE.g.: McDonalds Golden arch is the mostpopular marquee in the world.


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Careful planning of this element is alsoessentialFirst of all retailer should first determine the

number of entranceIdeally an outlet should have 2 entrance onefor the pedestrians and a side entrance forthe vehicular traffic.Both should be designed separately as theyserve different purpose


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Retailers may selectA regularRevolvingElectricSelf-openingPush-pull

Climate controlled door ( a door with an air curtainin the entrance whose temperatures is fixed sameas inside stores).


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This helps the customers to identify thestore and the merchandise offered

And motivates them to enter the storeDisplay windows carry lot of informationto customers about the stores

Along with the following benefits


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1. Creating particular mood by displaying the merchandisebeing offered

2. Conveying the store Contemporariness by displayingseasonal merchandise that is currently in fashion

3. Attracting the price sensitive customers by displayingmerchandise that is for sale

4. Catching the attention of pedestrians by displaying eye-catching goods that are not directly linked directly with themerchandise being offered. (E.g.: Furniture that are not forsale but still displayed to attract)

5. Show its concern towards the society by displayingmessages that are for the common good of the public


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Creating good display windows requires properplanning

Including Number, Size, shape, color, theme &frequency of changes in a year

Usually retailers in shopping mall do not havedisplay windows facing the parking area

As they feel that vehicular traffic is generally notattracted by the display windows.


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The size also does mattersThe height of the building can be disguised / non-disguised

Disguised : means some portion of the store is hiddeni.e. below the ground

Non-disguised height of the building means all its portion is visible to the pedestrians

A retailer cannot go for a huge building for a FashionboutiqueAnd can neither go for a small building for adepartment store


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Apart from aUnique store designElaborate marqueeRecessed open air entranceDecorated window displaysDistinct size of the building

What about the surrounding areas & the stores around

E.g.: An up market premium store will not fit in an areadominated by low price discount stores.

Like say Asopalav finds it difficult in its Rantanpol branch

Even the demography & lifestyle of the area matters a lot to thestore


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At a very first sight it creates an impression inthe customers mind

Psychologically proved do leave animpression in their minds

It also do convey the meaning about the store


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Steel Exteriors : tend to project an image of strength

Glass Exteriors : creates an unique impressionof contemporariness (modern)

Concrete structures: creates an impression of

a low cost & value based storesBricks: creates an upscale image


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Prevention involves controlling Employee &Customer pilferage

While planning the exteriors flow in & out of thecustomers should be managed well

As well as proper monitoring devices at entry, exit,inventory receiving doors & trash disposal corridors


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Retailers Can make the best out of theavailable space

By proper layout management & therebymake it unique

That can be done through a properStore LayoutVisual Merchandise


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1. Value of the space2. Space utilization & allocation


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1. Value of the spaceIt represents the measures of square foot allotted to

each category

Sales/Sq foot measures : by stores, departments orfree standing stores

Sales/ Sq foot of exposure : Shelf space allocation formerchandise like grocery & cosmetics

Sales / Cubic foot : for the goods in freezers &

refrigerators.


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The space near the stores entrance is themost valuable

The space value starts decreasing graduallyas move towards the end of the store

Similarly as height increases the valuedecreases.


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2. Space utilization & allocation

The retailer basically requires five types of space inits store:

I. Back roomII. Office & other functional space

III. Aisle, service areas & other non-selling areaIV. Floor SpaceV. Wall Space


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Allocation based on historical salesAllocation based on Gross margin

Allocation based on Industry averagesAllocations based on strategic objectives


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Is used to analyze the performance of themerchandise and then allot them space

It follows 80-20 rulei.e. 80 % of revenue comes from 20 % of merchandise, thus should identify the stockthat generate maximum revenues


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A = 5 % of itemsContributing 70 % of revenue

B = 10 % of items

Contributing 20 % of revenueC = 65 70 % of itemsContributing 10 % of revenue

D = Remaining SKUs that don't contributeanything

Should get rid of such SKUs By Markdowns


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Merchandise Presentation Techniques


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Free-Form Layout: Otherwise known as Boutique layout Aisles and fixtures are asymmetricalWorks more in Specialty storesWhere it is most needed to show the entire room as afashion living roomArranged in such a way that gives a look which creates awide range merchandise impression in the customersmind

E.g.: Westside & all other international fashionboutiques


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Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)

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