Visual Merchadising In Pantaloon Presented By: Sneha Dwivedi

INTRODUCTION Led by its flagship enterprise, Pantaloon Retail, the group operates

over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. 

Pantaloons is among India's largest chains of fashion stores. Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers.

Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally. This 'fresh fashion' destination allows customers to shop for the latest in fashion apparel and accessories throughout the year in an attractive and visually stimulating ambience.

Pantaloons Fresh Fashion stores have presence with stores not just in Metros but also in smaller towns. All stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for Men, Women and Kids.

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Organized retail in India is a bit like India itself. Young, optimistic, networked, upwardly mobile and growing… It’s been the coming of age ... of retail in India … of India Itself. Young Ideas, Young Markets, Young Approach, Young Minds, a Movement – Youth Inc. It’s time to change, innovate and connect with this India. As an Organization, as a Business, as an Approach. As the way forward. We are young, ambitious and passionate, constantly innovating and experimenting. Exploring new avenues, creating new systems. Youth – The mantra for business this year.

Pantaloons Retail India Limited : The Financials

53%

23%

10%

4% 7%

2%2%

Sales Turnover Cr.

Pantaloons RetailShoppers' StopTata TrentKewal Kiran ProvogueCantabil Retail Koutons Retail

PRIL Market Share

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Pantaloon Ret 156.10 3,615.00 4,477.48 285.03 5,051.25

Shoppers Stop 351.10 2,907.77 1,930.04 64.26 877.57

Trent 1,054.20 2,894.16 821.79 47.27 1,594.18

Kewal Kiran 615.00 757.99 301.90 52.14 240.43

Brandhouse 13.05 69.95 783.48 8.50 322.85

REI Six Ten 3.75 55.16 614.05 0.32 148.95

Cantabil Retail 19.75 32.25 164.54 -25.47 192.69

Koutons Retail 7.25 22.15 164.65 -193.81 1,010.52

- Multiple formats to achieve maximum consumer's wallet share- Focused on fashion-Private labels margin drivers

-Inventory is a critical issue- Consumer spending pattern-Consumer loyalty

-Industry is booming-Rural retailing

-Competition is increasing-Risk of new formats

STRENGTS

WEAKNESS

OPPORTUNITY

THREAT

PRODUCT OFFERINGS CHART

.

Plantoon Brands

Men’s

Formals Casuals Ethnic

Women’s

Formals Casuals

Non Plantoo

n Brands

Men’s

Formals Casuals

Women’s

Formals Casuals Ethnic

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LombardKnighthood

RIGUMMAgileBareT2006JM SportsLee Copper

AakritiF Factor

Annabelle HoneyAgile

John MillerUrbabaScullersIndigo Nation

Pepe Scullers Jealous21BareRIGUMMLee Copper

Rang ManchTrishaMix & MatchAakriti

Retail Format observed at Pataloons

Retail Strate

gy

Customer

Service

Merchandise

Assortment

Location

Communication

Mix

Pricing

Store Design

& Displa

y

9

Store location The location of a retail store occupies an

important place in retail strategy. It not only conveys the image of the store, but also influences the merchandise mix and the interior layout of the store. While the merchandise mix can be changed and prices can be adjusted, it is difficult to change the decision on store location.

It is located in posh locality in the centre of the city. Further the easy availability of transport facilitates makes the location really accessible for shopping.

Pantaloons is situated very close to the main road. Pantaloons being a three floor building have great visibility. To enhance the visibility pantaloons has put its sign board on the top of the building.

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MERCHANDISE ASSORTMENT

Pantaloons have applied the concept of category management in its day-to-day merchandising function as against the traditional brand management merchandising practice followed by most retailers. Category managers look at sales and margins of each brand in a category. The whole idea of category management is to create products across length and breadth of a category at different price points, fabrics, design, shape, seasons, colour and size.

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STORE LAYOUTPantaloons follows a free form store layout. No particular format is followed anything is placed anywhere but strategically. Pantaloons fall under following categories- Departmental stores, Malls, E-retailers Here when it comes to arranging the clothes, same type of clothes are put up together in different sizes so that same clothes are available for every size at one point only.

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STORE DESIGNExterior Store Design

The exterior appearance of a store silently announces what customers can expect inside. Good exterior visual merchandising attracts attention, creates interest and invites the

customer into the business.

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Design Display DENIM promotion - This promotion was pitched as denim reunion by the marketing team created a story around denim treating it as a sinful dessert no one can resist. Bold and out of the box displays definitely caught attention and doubled the sales during the promotion,

Men's Formal Wear Promotion - The objective was to make Pantaloons a destination for Men's formals. Bold displays showcasing only men in formalwear in their different moods and activities get the attention. Icons are used to symbolise the different lifestyle habits of the urban men today

PRICINGHigh turnover

Low turnover

High Margin

Low Margin

Since Pantaloons provides products to a potentially large number of customers at affordable prices, it falls in the High Turnover -

Low Margin Category.

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Visual Merchandising

Merchandise Display : A light to dark color story is

always followed The store usually also follows a

color theme.For example if the color theme is pink then the garments at the focal points, on theclusters etc. will be within the pink palette.

Smaller, “quick pick up” products such asHairbrushes, clips, toys etc are kept near the billing counter.

Merchandise is also displayed on the mannequins (either stand alone or clusters) by mixing clothes and accessories of different brands to put together a complete look.

There are A4 sized shelf talkers that tell the customer which product is from which brand.

Window Display :

The windows in each store are segregated and have different themes for display.

One of the windows is dedicated to “Fashion Friday”.

Fashion Friday is a concept by Pantaloons since they believe in fresh fashion and say that they bring something new to the customers every week.

The display always follows a color theme. The maximum time for which a display may be put up is a month though usually they try and change it every fortnight.

Point of Sale Promotions and Signage: Various

schemes are promoted in the store through announcements Other promotional materials such as those with the brand ambassadors etc are given to various stores by the head office.

Shopping Bags: The bags are green in color with the brand name and the customary leaf design.

Space Allocation and Utilization

Furniture and fixtures---- The fixtures were

designed to meet capacity and storage criterion from operation's view point and also aid customers' in easy browsing. Fixtures also served to build brand identity and brand differentiation.

Pantaloons visual merchandising is creative, innovative and outstanding which can be seen from its own in-house private brands such as John Miller.

All the merchandise is placed at both 360 degree and 180 degrees.

Window display is highly interactive for impulsive buyer.

The Pantaloons store at Mega Mall , Mumbai was abuzz with excitement, as 'Live Mannequins, models wearing the recently launched 'Pantaloons Femina Miss India 2009 Collection', walked around the store and posed in the window display area. Live mannequins is a unique new concept in store merchandise display, Pantaloons being one of the first stores to introduce it.Visual merchandising is gaining moment all over India ,but it is still in early stages in kolkata

Objectives visual merchandising, a common external

factor that encourages consumers’ urge to buy, can affect consumers’ impulse buying decisions.

Based on research findings, the purpose of this research is to examine the relationship between impulse buying behaviors and common external factors that trigger impulse buying.

External factors that the research will exam are attributes likely to be encountered in many retailing contexts, such as visual merchandising.

The research, therefore, will focus on effects of 3 types of visual merchandising on impulse buying behavior.

The types of visual merchandising used as predictors in this study are window display, in-store form/mannequin display, and promotional signage.

Literature Review

Impulsive Buying“Impulse buying has been considered a pervasive and distinctive phenomenon inthe American lifestyle and has been receiving increasing attention from consumerresearchers and theorists (Youn & Faber, 2000, p.179)”. Despite the negative aspects ofthe impulse buying behavior from past research, defining impulsive behavior as anirrational behavior (Ainslie, 1975; Levy, 1976; Rook & Fisher, 1995; Solnick,Kannenberg, Eckerman, & Waller, 1980), resulting from a lack of behavioral control(Levy, 1976; Solnick et al., 1980), impulse purchases account for substantial sales acrossa broad range of product categories (Bellenger at al, 1978; Cobb & Hoyer, 1986; Han,Morgan, Kotsiopulos, & Kang-Park, 1991; Kollat & Willet, 1967; Rook & Fisher, 1995;Weinberg & Gottwald, 1982)

Internal factors/cuesMood/Need/DesireHedonic PleasureCognitive/AffectiveEvaluation

External factors/cues:Visual MerchandisingWindow DisplayIn-store Form DisplayFloor MerchandisingPromotional SignageImpulse Buying Process

Browsing(ProductAwarenes

s)

CreateDesire

PurchaseDecision

Post-purchaseEvaluation

Model of impulse buying process

Visual merchandising, or visual presentation, is the means to communicate a store/company’s fashion value and quality image to prospective customers.

“The purpose of visual merchandising is to educate the customer, to enhance the store/company’s image, and to encourage multiple sales by showing apparel together with accessories” (Frings, 1999, p. 347).

Therefore, each store/company tries to build and enhance its image and concept through visual presentations, which appeal to shoppers and ultimately transform them into customers by building brand loyalty and encouraging customers’buying behaviors.

Visual merchandising is defined as “the presentation of a store/brand and its merchandise to the customer through the teamwork of the store’s advertising, display, special events, fashion coordination, and merchandising departments in order to sell the goods and services offered by the store/company” (Mills, Paul, & Moorman, 1995, p. 2).

Visual merchandising (VM)

Emotional stimuli

Visual-Make your competencies visible-Make strategic relevant products best visible-Increase the level of consumer awareness

Visual Merchandising-to provide consumers efficient information and emotional loaded pictures, which support customer pleasure and shopping activity.

Merchandising-All activities appropriate to stimulate additional sales

Visual merchandising stands for

ROLE OF VM IN THE DECISION MAKING PROCESS OF A CONSUMER

• The store stimuli serves as a type of information aid for those who go to the store without any predetermination of what they need or buy, and once they get into the store, they are reminded or get an idea of what they may need after looking around the store.

• In other words, consumer’s impulse buying behavior is a response made by being confronted with stimuli that provoke a desire that ultimately motivate a consumer to make an unplanned purchase decision upon entering the store.

• The more the store stimuli, such as visual merchandising, serves as a shopping aid, the more likely the possibility of a desire or need arising and finally creating an impulse purchase

Visual Merchandising in Relation to Impulse Buying Behavior

In-store browsing may be a link between internal and external factors, as an important component in the impulse buying process as well as a link between consumers’ impulse buying behavior and retail settings including exterior and interior display.

“Instore browsing is the in-store examination of a retailer’s merchandise for recreational and informational purposes without an immediate intent to buy” (Bloch, Ridgway, & Sharrell, 1989, p.14).

Research MethodologyCollection of data was done for Pantaloons Fresh

Fashion stores in Kolkata.

Population For analysis of perceived service quality: All people who visit

Pantaloons Fresh Fashion Stores in Kolkata. For the analysis of effect measuring consumer impulse

buying tendency, influence of visual merchandising All people

Sample size For analysis of perceived service quality: 150 respondents For analysis of effect consumer impulse buying tendency,

influence of visual merchandising : 125 respondents

Research

In this study, consumer’ impulse purchase tendency serving as a shopper characteristic and visual merchandising serving as an external cue are determined to be variables.

Therefore, hypotheses were developed to investigate relationships between consumer tendency to purchase on impulse and 3 types of visual merchandising:

window display, in-store form/mannequin display, and promotional signage.

Methodology

Sample: The sample group for this research survey was selected for people shopping in pantaloons . The sample size was 150who had filled the survey Survey Development : The instrument used for this study was in survey format .The questionnaire consisted of 4 major sections measuring consumer impulse buying tendency, influence of visual merchandising and demographics. Responses were measured using a five-point Likert scale, which ranged from never=1 to frequently=5. The first section of the survey measured consumer impulse buying tendency. Sections twothrough the section four included questions measuring three distinctive visual merchandising practices that were expected to influence consumer buying tendency. These were window display, in-store form/mannequin display, and promotional signage.

under 2283%

above 2217%

Respondents

Data Collection

The data was collected through a structured questionnaire

The questionnaire was filled online by the respondents

The total data collected included 150 respondents

The data was selected for 125 respondents which was under the age of 22 to measure the influence of visual merchandising on the impulsive buying behavior of consumer

Data Analysis

Case Processing Summary

   N %

Cases Valid125 100.0

Excludeda

0 .0

Total125 100.0

a. Listwise deletion based on all variables in the procedure.

Statistical Packages for Social Sciences’ (SPSS) software is used for the data analysis. The plan for analysis is as follows. First, descriptive statistics andfrequency tables will be generated by SPSS

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha Based

on Standar

dized Items

N of Items

.904 .894 16

Data Analysis

Inter-Item Correlation Matrix

  ATM SEIP PPDM RTO IOGD EWD GWD DMWD MD BDD MDS DMSD EPO IOS EOSP UPOS

ATM 1.000 .250 .178 .164 .211 .197 -.032 .269 .198 .111 .171 .289 .031 .053 .240 .246

SEIP .250 1.000 .687 .730 .663 .477 .036 .596 .504 .715 -.109 .313 .256 .134 .678 .604

PPDM .178 .687 1.000 .789 .695 .574 .050 .580 .582 .629 .023 .246 .429 .386 .660 .631

RTO .164 .730 .789 1.000 .836 .506 .058 .631 .490 .617 -.052 .271 .399 .287 .609 .650

IOGD .211 .663 .695 .836 1.000 .487 .074 .653 .430 .576 .006 .222 .324 .255 .545 .562

EWD .197 .477 .574 .506 .487 1.000 .414 .372 .500 .446 .262 .232 .419 .449 .519 .466

GWD -.032 .036 .050 .058 .074 .414 1.000 .179 .236 -.086 .225 .006 .347 .373 .129 .139

DMWD .269 .596 .580 .631 .653 .372 .179 1.000 .693 .487 .035 .167 .275 .325 .515 .512

MD .198 .504 .582 .490 .430 .500 .236 .693 1.000 .480 .083 .155 .427 .401 .546 .420

BDD .111 .715 .629 .617 .576 .446 -.086 .487 .480 1.000 -.261 .205 .097 .101 .593 .518

MDS .171 -.109 .023 -.052 .006 .262 .225 .035 .083 -.261 1.000 .017 .254 .124 .032 .118

DMSD .289 .313 .246 .271 .222 .232 .006 .167 .155 .205 .017 1.000 .234 .041 .267 .282

EPO .031 .256 .429 .399 .324 .419 .347 .275 .427 .097 .254 .234 1.000 .608 .427 .447

IOS .053 .134 .386 .287 .255 .449 .373 .325 .401 .101 .124 .041 .608 1.000 .448 .452

EOSP .240 .678 .660 .609 .545 .519 .129 .515 .546 .593 .032 .267 .427 .448 1.000 .833

UPOS .246 .604 .631 .650 .562 .466 .139 .512 .420 .518 .118 .282 .447 .452 .833 1.000

Then, principal component analysis with reliability test will be conducted. ThePearson correlation test will be conducted to see the correlations between collegestudents’ impulse buying tendency and each of three types of visual merchandisingpractices.

Regression analysis will be conducted for hypotheses testing to find outthe relationship between college students’ impulse buying tendency (dependent variable)and the three types of visual merchandising (independent variables).The result of the regression analysis on the impulsive buying behavior was 38%

Data Analysis

• IOGD=beeta 0+beeta1* ATM+beeta2 * SEIP+beeta2 *SEIP+ beeta3 * PPDM+beeta4* RTO

• DMWD= beeta0+ beeta 1* EWD+ beeta2 *GWD

• MDS= beeta 0+beeta1* MD+ beeta 2 *BDD

• UPOS= beeta 0+ beeta 1 *DMSD+beeta2 *EPO+beeta3* ios+beeta4* EOSP

Y= beta0+ beta1 * X1 +beta2 * X2+ beta3 * X3+......+beta n * XnY= Dependent Vaiable and X=Independent Variable

Window Display

Store Display Promotions36%

38%

40%

42%

44%

46%

48%

50%

48%

44%

41%

Results of the Regression Analysis On The in-fluence Of Visual Merchandising On the Im-

pulsive Buying Behaviour Of Consumer

Results of the Re-gression Analysis On The influence Of Vis-ual Merchandising On the Impulsive Buying Behaviour Of Con-sumer

Recommdations Pantaloons in kolkata should put more efforts

creating attractive and eye-catching in store display providing information regarding new products, fashion trends, or coordination tips.

Since the target is under the age of 22 pantaloon as a pilot scheme could offer a three-month EMI option and zero interest rate, The offer would be available on all branded products, subject to a minimum purchase of Rs 1,500. The scheme could be in a tie-up with bank credit cards.

Thus this would help Pantaloon to retain its impulsive buyers

Scope of Report The report will be beneficial for the company to

determine a comprehensive Service policy to reach impulsive buyers

The report can also be used to develop visual merchandising to influence impulsive buying behaviour of consumer

The company is now aware of the impulsive buying behaviour of consumer group which is under 22and hence it should target that group by increasing its visual merchandising

Limitations There was no personnel administration

of data collection The sample was geographically limited

and the age range was narrow. Data collected in other areas may

produce different results. A competitive analysis was not done for

data collection.

References

www.pantaloon.com http://www.fibre2fashion.com/news/company-news/pantaloo

n-retail-india/ http://

www.retailangle.com/Newsdetail.asp?Newsid=2340&Newstitle=Levi%92s_jeans_available_on_EMI

http://www.financialexpress.com/news/the-importance-of-visual-merchandising/62649/

http://www.pantaloonretail.in/pdf/PRIL_Annual_Report_2010-11.pdf

http://www.pantaloonretail.in/businesses/pantaloons-retail.html

http://www.pantaloonretail.in/businesses/retail-formats.html http://mmb.moneycontrol.com/india/messageboardblog/mes

sage_thread/11299571/13099572

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