7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
1/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
2/51
Classify customers on the following two basis
1. Hypothetically2. Empirically derived evidence
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
3/51
Theoretically customers can be divided in to
ProspectorsReluctant shoppers
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
4/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
5/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
6/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
7/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
8/51
Local shoppers :Prefer to shop at small local stores
Spend less moneyMore often are old people, coming from smallhouseholds
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
9/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
10/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
11/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
12/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
13/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
14/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
15/51
H ence continuous pressure to create
increasing value for the customers
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
16/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
17/51
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%3Doff7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
18/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
19/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
20/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
21/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
22/51
In broader sense THE
EXTERIOR & THE INTERIOR design of the storeare some of the keydeterminants of a retailersimage.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
23/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
24/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
25/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
26/51
Retailers may selectA regularRevolvingElectricSelf-openingPush-pull
Climate controlled door ( a door with an air curtainin the entrance whose temperatures is fixed sameas inside stores).
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
27/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
28/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
29/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
30/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
31/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
32/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
33/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
34/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
35/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
36/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
37/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
38/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
39/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
40/51
1. Value of the space2. Space utilization & allocation
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
41/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
42/51
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.
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
43/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
44/51
Allocation based on historical salesAllocation based on Gross margin
Allocation based on Industry averagesAllocations based on strategic objectives
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
45/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
46/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
47/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
48/51
Merchandise Presentation Techniques
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
49/51
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
50/51
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
7/28/2019 Visual+Merchandising+New+(Stores+Design+&+Layout)+(2)
51/51
Top Related