project of pantaloons
TRANSCRIPT
A project report on
MERCHANDISE PRESENTATION MANAGEMENT
at
Durgapur
BIDHAN CHANDRA COLLEGE
THE UNIVERSITY OF BURDWAN
Submitted By: PRITAM BHADRA
Roll. ASAN B BM, NO. 2010/29
Registration No. 738 of 2009-2010
ACKNOWLEDGMENT
I PRITAM BHADRA acknowledge with thanks the assistance provided to me in preparing the report on my industrial training at pantaloons.
I feel satisfied in preparing the project report on MERCANDISE PRESENTATION MANAGEMENT. It was a great experience at Pantaloons for 1month during which I received the training.
Through this acknowledgment, I express my sincere gratitude to all those people who have been associated with this assignment and have helped us with it and made it a worthwhile experience.
Firstly i extend my thanks to the various people who have shared their opinions and experiences through which i received the required information crucial for this report.
Finally, i express my thanks to Dr. GAUTAM BANERJEE (Hon’ble principal, Bidhan Chandra College) who gave us this opportunity to learn the subject in a practical approach and Prof. PRATAP SHANKAR DAS(Teacher & internal guide) who guided me and gave me valuable suggestions regarding the project report.
I would also like to thanks Mr. Swapnil Gupta(Store Manager at Pantaloons, Durgapur & external guide) to allow me to do this project & helped me with crucial information.
List of Contents
Overview Businesses Future thought Media VISUAL MERCHANDISING Fundamentals of Merchandise
Presentation & Display Process of Merchandise Planning
Overview of pantaloonsAs India’s leading retailer, Pantaloon Retail inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. We serve customers in 85 cities and 60 rural locations across the country through over 15 million square feet of retail space.Pantaloon Retail is the flagship company of Future Group, India’s retail pioneer catering to the entire Indian consumption space. Through multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. This number is set to grow.We operate multiple retail formats in both the value and lifestyle segments of the Indian consumer market including:
Pantaloons - a chain of fashion outlets.
Our other formats include Brand Factory, Ethnicity, Planet Sports, aLL and more.As modern retail drives fresh demand and consumption in new categories, our strategy is based on a deep understanding of Indian consumers the products they want, and making these products available in every city in every store format. We are in line with our broad
objective of being a catalyst in India’s consumption-led growth and being a positive agent of change in the communities we serve.
Leadership:Kishore Biyani
Managing DirectorKishore Biyani is the Managing Director of Pantaloon Retail (India) Ltd and the Group Chief Executive Officer of
Future Group. Considered a pioneer of modern retail in India, Kishore’s leadership has led Pantaloon Retail’s
emergence as India’s leading retailer operating multiple retail formats that cater to the entire basket of Indian
consumers.
Kishore Biyani led the company’s foray into organised retail with the opening of the Pantaloons family store in 1997.
This was followed in 2001 with the launch of Big Bazaar, a uniquely Indian hypermarket format that democratized
shopping in India. It blends the look and feel of the Indian bazaar with aspects of modern retail like choice,
convenience and quality. This was followed by a number of other formats including Food Bazaar, Central and Home
Town.
2006 marked the evolution of Future Group that brought together the multiple initiatives taken by group companies in
the areas of Retail, Brands, Space, Capital, Logistics and Media.
Kishore Biyani advocates ‘Indianness’ as the core value driving the group and the corporate credo ‘Rewrite Rules,
Retain Values.’
Regularly ranked among India’s most admired CEOs, he is the author of the book It Happened in India. He has won
numerous awards from government bodies and the private sector in India and abroad and is on the board of a
number of bodies, including the National Innovation Foundation in India and the New York Fashion Board.
Shailesh Haribhakti Chairman & Non-Executive Independent DirectorShailesh Haribhakti is the Chairman and Non-Executive Independent Director of the Company. He is the Managing
Partner of Haribhakti & Co., Chartered Accountants and the Chairman of BDO Consulting. He is the Chairman of the
Banking, Finance and Insurance Committee of the Indian Merchant’s Chamber and Member of the Adhoc Advisory
Committee for Master’s Degree in Management Studies, University of Mumbai. He is on the Board of several public
limited companies, including ACC Ltd., Mahindra Lifespace Developers Ltd. and Raymond Ltd.
He is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor.
S DoreswamyNon-Executive Independent DirectorS Doreswamy is a Non-executive Independent Director of the Company. He has vast experience in banking and
finance. He retired as Chairman and Managing Director of Central Bank of India. He is Chairman of CanFin Homes
Ltd. and is also on the Board of Ceat Ltd., Rama Newsprint & Paper Ltd. and Hexaware Technologies Ltd.
He holds a Bachelors degree in Science and Law.
Dr. Darlie KoshyNon-Executive Independent DirectorDr. Darlie Koshy is a Non-executive Independent Director of the Company. He has served the National Institute of
Design (Ministry of Commerce, Govt. Of India) as Director for two terms. Prior to this, he was the founding
Chairperson of Fashion Management at the National Institute of Fashion
Technology (Ministry of Textiles, Govt. Of India). He is currently Director General and CEO of ATDC Network of 58
Institutes / Centres and two premier campuses of Institute of Apparel Management under the aegis of AEPC
(Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the Delhi IIT Alumni Award for his contributions to
National Development in 2008. Dr. Koshy has also been conferred with the ‘Star of Italian Solidarity’, one of the
highest civilian awards bestowed by the Government of Italy. Dr. Koshy is the author of three pioneering books,
including the much acclaimed Indian Design Edge.
He holds a PhD from IIT Delhi, besides an MBA degree.
Anil HarishNon-Executive Independent DirectorAnil Harish is a Non-executive Independent Director of the Company. He is a partner at D.M. Harish & Co.,
Advocates & Solicitors. He specialises in Income Tax, FEMA and property matters. He is on the Board of a number of
public limited companies like Hotel Leela Ventures Ltd. and Mahindra Lifespace Developers Ltd. among others.
He holds an LLM degree from the University of Miami, USA.
V. K. ChopraNon-Executive Independent DirectorVijay Kumar Chopra is a Non-executive Independent Director of the Company. He has over 31 years of experience in
the banking industry. He was Chairman and Managing Director of SIDBI and Corporation Bank. His last assignment
was with SEBI as Whole-time Member. He is on the Board of a number of public limited companies like Rolta India
Ltd. and Havells India Ltd. among others.
He is a fellow member of the Institute of Chartered Accountants of India (ICAI) by profession and is a Certified
Associate of Indian Institute of Bankers (CAIIB).
Gopikishan Biyani Non-Executive Director Gopikishan Biyani is a Non-executive Director of the Company and looks after the manufacturing operations. He has
more than two decades of experience in the textile business.
Sustainability:Climate change is one of the greatest challenges facing the world today. Future Group strives to
reduce environmental impact and optimize energy consumption in its stores and strengthen green
considerations in logistics operations. Our endeavour is to promote eco-friendly products and raise
awareness on environmental issues both internally and externally.
As part of our sustainable-development initiatives, we have made a commitment to care for the environment. Through
our commitment, we look to make a significant positive impact on the ecology and surroundings in which we operate.
Through investment and innovation we are leading the way in providing a greener way to do business. We fulfil our
responsibility for delivering high quality services in a sustainable and environmentally responsible manner by:
Reducing the environmental impact of store construction and operations
Improving energy efficiency for important environmental benefits and reducing operating costs
Strengthening environmental considerations in the design of green products and packaging; developing green
product lines that respect environmental concerns
Reinforcing environmental considerations in logistics
Through community-driven development, we aim to foster a symbiotic relationship with Indian
entrepreneurs across communities to create increased self-employment opportunities.The grassroots nature of community-driven development promotes people participation in development decisions that
are usually decided in a top-down manner. Economically disadvantaged women and ethnic minorities are among
those who stand to gain the most through our community-driven development initiatives.Our approach is to help and
collaborate with different communities in the rural pockets of our country to achieve harmonious growth.
Recognizing the potential to address economic inequality/disparity and accomplish other objectives contributing to
inclusive growth, Future Group has spread its reach deep into rural India. Our people engage to undertake
community mobilization and capacity building, and help develop measures to reach isolated, ethnically diverse, or
remote communities.
Our engagements provide us with practical knowledge about designing and building upon community-driven
operations and provide them with an enabling and inclusive framework.
Inclusive Growth:Future Group’s vision of inclusive growth for a harmonious society, points to a future in which the entire population can enjoy a better quality of life. We aim to serve as a catalyst that stimulates the use of inclusiveness as a powerful development tool. Future Group aims to create and sustain an environment conducive to the domestic growth of India by partnering with various stakeholders and playing a proactive role in India’s development process.
Future Group believes in broad-based growth, the fruits of which are not concentrated in the hands of few but shared
by the community as a whole. This is the way towards achieving the dual goal of profitable and socially responsible
growth.Our initiatives in inclusive development include livelihood issues, diversity management, skill development
and protecting the environment, to name a few.
Modern Indian retail can help improve incomes and provide opportunities for growth to individuals with lower
education levels or from the unorganised sector. With fair wages and benefits, opportunities for further development
and growth and a better working environment, modern retail offers much more than most alternatives available to
such individuals.
Future Group focuses on three key enablers for inclusive growth: employability, innovation and entrepreneurship.
While employability helps create a qualified and skilled workforce, innovation and entrepreneurship help drive growth
and generate employment.
Manifesto:Rewrite Rules. Retain Values.Our manifesto encourages us to explore unexplored areas and write new rules to create new opportunities and
successes. Our focus in striving for a glorious future gives us strength and the ability to learn, unlearn and re-learn
our ability to evolve.
At Pantaloon Retail we do not wait for the future to unfold itself but create future scenarios in the consumer space
and facilitate consumption because consumption means socio-economic development for our customers, employees,
shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when they need any product or
service.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of
tomorrow.
It is this understanding that has underwritten our success and will help us succeed in the future as well.
Group Mission
Core Values We share the vision and belief that our customers and stakeholders shall be served only by creating and executing
future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all
customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to
make us successful.
Recognition:2011
Designomics Awards 2011 - Recognising Businesses that build value through Design
Winning Designomist at the World Brand Congress 2011 - Future Group
2010
Coca-Cola Golden Spoon Awards 2010 Most Admired Food & Grocery Retailer of the Year : Private Label – Pantaloon Retail
2009
Images Fashion Forum 2009 Most Admired Private Label - Pantaloons, lifestyle format Critics’ Choice for Pioneering effort in Retail Concept Creation – Central
2008
The Reid & Taylor Awards for Retail Excellence 2008 Retailer of the Year: Home Products and Office Improvements: HomeTown
2007
Images Retail Awards Most admired retailer of the year: Home & office improvement: HomeTown Most admired Retail Company of the year: Pantaloon Retail (India) Ltd.
National Retail Federation, New York International Retailer for the Year 2007 – Pantaloon Retail (India) Ltd.
World Retail Congress, Barcelona Emerging Market Retailer of the Year 2007 – Pantaloon Retail (India) Ltd
Hewitt Best Employers 2007 Best Employers in India (Rank 14th) – Pantaloon Retail (India) Ltd
2006
Retail Asia Pacific Top 500 Awards, Singapore Asia Pacific Best of the Best Retailers – Pantaloon Retail (India) Ltd Best Retailer in India – Pantaloon Retail (India) Ltd
Asiamoney Awards Best Managed Company in India (Mid-cap) – Pantaloon retail (India) Ltd.
2005
Images Retail Awards 2005 PRIL- Most Admired Retailer of the Year Central-Retail Launch of the Year
DAKS London PRIL- Brand Builder of the Year
2004
Images Retail Awards 2004 PRIL- Most Admired Retailer of the Year Central-Retail Launch of the Year
Reid & Taylor and DLF Awards PRIL - Retailer of the year
2003
Indian Express Award PRIL – Marketing Excellence and Excellence in Brand Building
Indusland Bank (India Brand Summit) PRIL – E
Affiliate Companies:Future Brands Ltd.
Future Brands Ltd. (FBL) is involved in the business of creating, developing, managing, acquiring and dealing with consumer-related brands and IPRs (Intellectual Property Rights).
Future Media (India) Ltd.Future Media (India) Ltd. (FMIL) is a media venture aimed at creating media properties in the consumption space. It offers relevant engagement through its media properties within Future Group retail spaces.Visual spaces in the shopping environment include shopping trolleys, carry-bags, elevator doors, standees, danglers, trial rooms, counters, in-store signage, product displays and facades.
Future Supply ChainsFuture Supply Chains, a specialized subsidiary, offers a strategic, focused and consolidated approach to meet the group’s large supply chain requirements as well as those of select suppliers and business partners.
Future Supply Chains provides integrated end-to-end supply chain management, warehousing and distribution, multi-modal transportation and container freight stations.
Future Axiom Telecom Ltd.Future Axiom Telecom Ltd. is a joint venture with Axiom Telecom LLC, UAE. The company has a 50% stake in Future Axiom Telecom Ltd. (FATL) which is a joint venture Company with Axiom Telecom LLC, UAE. The Company is engaged in sourcing and wholesale distribution of mobile handsets, accessories and in setting up service centres for mobile handsets in India.
Pantaloon Food Product (India) Ltd.Pantaloon Food Product (India) Ltd. (PFPIL) is involved in the sourcing and backward integration of the food business of the Company. PFPIL has sourcing and distribution bases at all key cities across the country.
Future Knowledge Services Ltd.Future Knowledge Services Ltd. (FKSL) is engaged in the business of business process outsourcing and knowledge process outsourcing.
Future Capital Holdings Ltd.Future Capital Holdings Ltd. (FCH) is a provider of financial services across consumer and wholesale businesses, with aspirations to grow into a significant financial conglomerate.Conceptualized around a unique positioning of a financial services business, integrated with a retail chain, Future Capital is establishing financial superstores within the retail stores of Future Group such as Big Bazaar, Ezone and Home Town to create India’s first consumer-centric retailer of financial products and services.
Future Generali India Insurance Company Ltd.Future Generali India Insurance Company Ltd. (FGIICL) was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for offering general insurance was received from the Insurance Regulatory and Development Authority of India (IRDA) on Sept 4, 2007.
Future Generali India Life Insurance Company Ltd.Future Generali India Life Insurance Company Ltd. (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. The approval for offering life insurance was received from the IRDA in September, 2007.
Futurebazaar India Ltd.Futurebazaar India Ltd. (FBIL) is the e-retailing arm of Pantaloon Retail. It is one of the most popular online shopping portals in India. It was awarded with the ‘Best Indian Website’ award in the shopping category by PC World Indian Website Awards.
Staples Future Office Products Private Ltd.Staples Future Office Products Private Ltd. (SFOPPL) is involved in the business of office supplies, office equipment and products. SFOPPL is a joint venture between the Company and Staples Asia Investment Ltd. (a subsidiary of Staples Inc., USA). The company’s
Businesses
Lifestyle:Pantaloon Retail is focused on driving the growth of the lifestyle retail business. As India’s leading retailer, we operates multiple retail formats in the lifestyle segment of the Indian consumer market.
Led by its lifestyle formats - Pantaloons and Central, Pantaloon Retail makes every effort to delight its
customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their
desires. Pantaloons, India’s favorite fashion chain has 46 stores across the country offering the most
popular loyalty program Green Card. Central, our large-format lifestyle department store has 12 locations in
key urban consumption centers in the country and offers over 500 foreign and Indian brands across
merchandise categories.
Retail:Winning the Hearts of Indian ConsumersPantaloon Retail makes every effort to delight its customers, tailoring store formats to changing Indian lifestyles and adapting products and services to their desires.We operate some of India’s most popular retail formats. Across value and lifestyle segments, our multi-format retail strategy caters to all the consumption needs of a wide cross-section of Indian consumers.
Pantaloon Retail (India) Ltd. focuses on the lifestyle retail segment led by the Pantaloons and Central formats.
Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaar and KB’s Fair Price formats. Our business is well capitalized to propel pure retail growth momentum. We believe the Indian consumption story is intact and the combination of consumption and investment driven growth will power our success. We aim to maintain our focus on increasing consumption demand through innovative customer engagement activities.We aim to continue on our growth path through a combination of realization efficiency and space expansion. Our aim is to maintain the momentum of top line growth through
continuous efforts to increase store efficiencies and productivity as evident in improved throughput.
Value:Led by its format divisions Big Bazaar and Food Bazaar, Future Value Retail Ltd. is a wholly owned subsidiary of Pantaloon Retail (India) Ltd. that has been created keeping in mind the growth and current size of the company’s value retail business.
Covering an operational retail space of over 6 million square feet, the company operates 148 Big Bazaar stores and 169 Food Bazaar stores, among other formats, in over 70 cities across the country. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Ltd. will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India.
Corporate Governance:Our reputation is earned by our conduct: what we say, what we do, the products we provide, the services we offer and the way we act. Pantaloon Retail stands on the foundation of integrity and stewardship.
We believe success requires the highest standards of corporate ethics towards everyone we work with, the communities we serve, and the environment we impact. This is our road to sustainable, profitable growth to create long-term value for our people, business partners, customers and shareholders.We have an active, capable and diligent management and leadership team that understands its role in implementing rigorous financial discipline, risk metrics and gold standard corporate governance. Our ongoing efforts encompass financial stewardship in strategic and daily business decisions to ensure accurate financial reporting and effective controls.
Employment Philosophy:Start Here. Dream Big. Grow Far.
We're growing in dynamic ways and are looking for people who will enable us to
continue our success. We are looking for people who are passionate, adaptable, self-
motivated, team players and who reflect our ideology - "Rewrite rules. Retain values".
If you share our passion for success, we invite you to be a part of an amazing success story by taking up exciting growth opportunities with us.Future Group is an equal-opportunity employer. We encourage people to join us from all walks of life. To this end, we have implemented numerous training programs that provide our employees avenues for advancement. Our unflagging efforts have ensured that over 80 percent of our people have been positively impacted. This has helped us identify and nurture Future leaders and bringing fresh energy and perspective to the business.In potential employees, we value
Future Group looks to employee expertise to combine and sustain business and community growth. We are fully committed to India’s socio-economic development and seek the same values in those looking to be part of the Future Group family.
Future Thought
Overview:Retail leadership in India through innovation and transformation
Future Group offers new ways of thinking about retail and consumerism in India. We
believe Retail must take the lead in renewing our economic growth trajectory.
Leveraging the experience and insights gained in pioneering retail in India, we have
developed a deeper understanding of the evolution of modern Indian retail and its role in
driving sustainable economic growth.
At Future Group, we believe in channelizing our energies to research-based innovation for generating value and delivering better experiences to customers. We are focussed on achieving sustainable business performance through the synergy of customers, communities and partners by ongoing learning, unlearning and adaptation.Our thinking delivers business value in 3 waysKnowing India the Indian way
Embracing Indianness to conduct business across various socio-economic and demographic segments
Integrating the traditional approach into modern-day retail to identify critical customer-value levers and game-changing trends in Indian retail
Driving Inclusive Growth Thriving in an ecosystem that facilitates collaboration and inclusive growth as a
sustainable economic growth model for India Creating fresh employment, impacting livelihoods, empowering local communities and
fostering mutual growth
Accelerating Innovation Driving innovation with solutions that reconcile the interests of our business, the
environment and other stakeholders Leveraging powerful research as a co-creation engine to harness consumption
opportunities created by emerging urbanization and lifestyle trends
Visual merchandising
Visual merchandising is the activity and profession of developing floor plans and three-dimensional displays in order to maximise sales.[1]
Both goods or services can be displayed to highlight their features and benefits. The purpose of such visual merchandising is to attract, engage and motivate the customer towards making a purchase.
Visual merchandising commonly occurs in retail spaces such as retail stores and trade shows
History
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 general consumers. The store windows were often used to attractively display the store's merchandise. Over time, the design aesthetic used in window displays moved indoors and became part of the overall interior store design, eventually reducing the use of display windows in many suburban malls.
In the twentieth century, well-known artists such as Salvador Dalí and Andy Warhol created window displays
Methodology
PrinciplesThe purpose of visual merchandising is to:
Make it easier for the customer to locate the desired category and merchandise. Make it easier for the customer to self-select. Make it possible for the shopper to co-ordinate and accessorise. Recommend, highlight and demonstrate particular products at strategic locations.
TechniquesVisual merchandising builds upon or augments the retail design of a store. It is one of the final stages in setting out a store in a way customers find attractive and appealing.
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.
ToolsA planogram allows visual merchandisers to plan the arrangement of merchandise by style, type, size, price or some other category. It also enables a chain of stores to have the same merchandise displayed in a coherent and similar manner across the chain.
The fundamentals of merchandise presentation
and display
An overview of layout philosophy and an insight into how customers might make their decision when they purchase a product, and how that should influence the way you display your merchandise.
Principles of display
-- The customer must be able to: see the goods-- The customer must be able to: see the quality and utility-- The customer must be able to: see the price-- The customer must be able to: self-select
And... the customer must be able to: do all of the above in the shortest possible time
Keeping these broad layout principles in mind, let's focus on where it's best to place your merchandise and how best to display it.
Merchandising methodsThere are several ways to display merchandise:
Product AccessoriesBrand Additional and related linesColour/size Advertised linesProduct character Promotional linesLifestyle Slow sellersAge group Impulse linesSeasonal lines Sell-up linesCombination of several
A basic philosophy of merchandising is to expose the customer to the best merchandise first. But sometimes other considerations, such as the return on an item and its volume selling appeal, might mean that we don't want to push the top price line.
Consider the â good, better, best display philosophy. For example, it's not necessarily a good idea to lead with top priced goods in a low socio-economic area.
In more detail...
By ProductThis involves grouping merchandise by product regardless of brand; for example, all hand tools together, and within hand tools all chisels together; within homewares all saucepans together and within electrical all steam irons together, all toasters likewise...
By BrandGrouping all items, colours, sizes of each brand together as separate blocks or fixtures. This may be for the complete power tool range or some categories or lines only. Electric drills, grinders and circular saws are grouped by brand, other products are grouped by some other criteria.
The key issue when deciding whether to group product by brand is whether the brand is the main reason the customer would buy that product. For example; with yoghurt is it low-fat or flavour that is the main consideration, and is it the size of the motor in the case of electrical drills? In other words is the customer seeking the brand because of brand awareness and preference or is that only perhaps the second or third consideration?
By colourGrouping all merchandise by colour; for example, vertical 'colour blocking' of merchandise on shelves or grouping produce by colour of vegetables. Great selling opportunity when selling contemporary or fashion merchandise. When it's hot, it's hot, and when it's not...it's not �
By sizeGrouping all merchandise according to size (which may be irrespective of brand or quality); for example, displaying footwear all by shoe size only. What fantastic customer service to personalize the stock for each customer size.
By quality and/or priceThis arranges merchandise in a logical progression of quality and price (assuming they go hand in hand), for example, horizontally left to right, normally starting with the dearest (as this is the logical way we read), or with the best quality item at eye/shoulder level ( eye level is...buy level) and the cheapest line above eye level or much lower. Or very different items may be grouped together, say in a dump bin, to clear at one particular price point.
By product characteristicsThis is based on placing products together according to their distinctive features. For example, displaying together all power drills with electrical leads and all cordless drills together or leather jackets in contrast with denim or other fabrics.
By lifestyleIdentifying merchandise suitable to particular lifestyles or tastes and presenting that merchandise together. For example, furniture is often classified as contemporary, traditional or casual.
By age groupHere, merchandise is grouped together according to age; for example, children's toys or clothing by age group. Great opportunities exist here to put related departments next to one another to maximise sales (eg toys, sporting, kids' books, etc).
By a combination of several elementsSpace, stock quantity, and range may require two or more of these methods to be combined. For example, a display of paint could be arranged vertically by size of can, by type (indoor/outdoor use), semi-gloss, gloss, and flat; by brand; by colour, and by price.
How do I decide?Which factor will be the most important consideration for the customer and therefore the way you should present the paint will depend largely on the customers' brand awareness, income group, end use of the product, and response to promotional activities - to name a few. Price may well be synonymous with size, end use and brand.
Another example to consider is hair care. Would you expect to find products grouped together by brand (Palmolive, Pantene, etc) or would it be more convenient for you to find them grouped by hair type? That is to find the products for dry, normal and oily hair to be displayed together, grouped with shampoo and conditioner adjacent to each other.
If one of the principles of display is to make it easy, the answer is obvious. Most people like to find personalized displays showing them all the products that will suit their specific requirements.
The Process of Merchandise Planning
Customers visiting a retail shop, very often, know what they wish to purchase; they may
however, be unaware of the specific size, variant or type of product that is best suited for their
needs. After an initial assessment of the products available, they may arrive at a decision in
terms of the specific product that they wish to purchase. It is at this stage that the merchandise
that the retailer has on offer in the store plays a critical role in determining whether the purchase
is made or the customer takes his search for the products elsewhere.
We understood the function of buying and merchandising varies from organization to
organization, depending on the size of the organization, the region that it operates in, the
products sold etc. The significance of this function stems from the fact that the product is to
integral part of the retail function. The products to be retailed in the stores have an impact on all
other functions and therefore this function, immaterial of the size of the organization, can never
work in isolation.
The Concept of Merchandise Planning:
The retailer’s reason for existence or his vision and missions for being largely dictates the
business strategy adopted. A part of this strategy is also the retail model that he chooses to
operates in, which in turn determines the type of product, the price etc., that is retailed in the
store. Therefore while the retailer’s business mission dictates merchandise planning the starting
point of merchandise planning is in analysis. Merchandise planning can therefore, be defined as
the planning and control of the merchandise inventory of the retail firm, in a manner which
balances the expectations of the target customers and the strategy of the firm.
Merchandise planning is beneficial to the customer and to the retailer. It benefits the retailer as it
enhances the possibility of the right assortment of goods, with the adequate amount of depth, to
be available at the stores where it is needed. The process of merchandise planning further
enhances the possibility of increased stock turns, thereby releasing important working capital.
From the point of view of the customer, it is beneficial as it increases the choice available to him
and reduces the possibility of facing a situation when the store is out of stock of the
merchandise needed.
As indicated Figure below the business strategy dictates the merchandise strategy which in turn
influences the planning of merchandise in terms of the type of product, the price, the range and
then the assortment. Planning or the number of retail stores and the space available for the
display of merchandise are also taken into account for the purpose of allocating the
merchandise to the stores. The next stage in the planning process looks at the sourcing of
merchandise and then, its actual allocation to the retail stores. The last stage is the monitoring
of merchandise and vendor evaluation.
Figure
The process of Merchandise Management
Store (Format) Strategy>
Business Strategy>>
Merchandise Strategy>
Merchandise Planning >>
1) Product
2) Price
3) Range
4) Assortment
5) Space
Sourcing>>
1) Make or Buy
2) Vendor identification
3) Negotiations
4) Placing the order
Allocation of merchandise to stores
Performance monitoring & evaluation
Store Operations Planning
Methods of DisplayRetailers while displaying their products may adopt various methods. The chief among them are:
Color Dominance
This is the simplest and the most direct method of presenting merchandise. In such a display merchandise is primarily displayed by color. Within the color display the products may be displayed by size and style.
Coordinated Presentation
Many a times, it is effective to present merchandise in a coordinated manner. Presentation by co-ordination may by done for garments, and it can also be done for home fashions, bed & Bath linens and even kitchen requisites.
Presentation by Price
In such a display, the inexpensive bargain or sale merchandise is displayed first. The volume of the product and the saving is dominant.
Merchandise can be displayed on shelves – horizontally and vertically. Vertical Merchandising is believed to encourage purchase as the products are displayed in the line of vision. As mentioned above, color can also be used to attract attention and the vertical use of color is called Color Ribboning which is always a better choice over Color Blocking the horizontal use of color.
While displaying similar items in various sizes, it is advisable to place the small size of the product on the left, and the larger size on the right. As most customers are right handed, they tend to unconsciously reach for the item closest to their rightly hand. Visual Curve Merchandising involves the use of slanted shelves to increase the customer’s strike zone – the amount of product the customer sees in just one glance.
Common errors in creating the display
Many errors made in display can be easily avoided. Some of the most common errors include the following:
Clutter
Too much of merchandise in one place always creates a cluttered look and may actually turn a person away from the merchandise rather than attract him.
Lack of an underlying Theme
The display created is often not linked to the message that the retailer wants to convey to the customer. The consumer should be able to understand the concept presented by looking at the display in a few seconds.
Too many Props
There is no specific rule that stipulates the number of props appearing in a display. However, the error of over propping a display can be more serious than using too few props. The type and number of props are dependent on the merchandise.
Dirty floors
Unclean floors reflect the attitude on the part of the store management implies a basic disregard for the customer.
Poor Lighting
The overuse or under use of lighting can take away from the overall look of the store and the merchandise.
Awareness and importance of design is fast increasing in Indian retail. Eventually, retail design will help business compete and create an image in a crowded marketplace. In India, some retailers are gradually waking up to this truth.
Acknowledgement
No work is consider complete unless due indebtedness is expressed to all those,
who made the work successful. Concentration, dedication, hard work &
application are essential but not the only factors to achieve the desired goal.
Many people have helped me on this project and each of their contribution is
valuable. I would like to take this opportunity to acknowledge and thank
Pantaloons Durgapur for providing me with this highly coveted opportunity
to associate my Project with their esteemed organization. My debts for
assistance in making this report are more than can be identified here. This whole
effort is the result of guidance, assistance and inspiration of several people who
helped me through my study and preparation of this report.
Firs t o f a l l I would l ike to express my hear t ies t grat i tude for the
invaluable he lp o f the Mr.Swapni l Gupta (s tore manager ,
Pantaloons , durgapur) , ) and employees o f Pantaloons. Their
knowledge, nature, judgment, support along with their experience was an immense
source of inspiration in completing this project and preparing this report.
I fur ther fee l indebted to Sales Manager o f Pantaloons ,Durgapur
for h is ass is tance , encouragement, inspiration and various suggestions
from the conception to completion of the project. He has helped me to
prepare a factual, realistic and pragmatic report in limited period than
would have been possible.
I am highly thankful to Dr.Gautam Banerjee (Hon’ble Principal, B.C.College) for
his guidance. I am highly obliged to Prof.Pratap Shankar Das (Teacher and
internal guide). He has been a constant source of inspiration and his critical
evaluation during our course in the institute has helped me to complete this
assignment properly. I also thank to my other professors, Prof .Tuhin Kumar
Chakarvorty, Prof.Kajol Ghoswami, Prof.Krisnandu Chaterjee and Prof.Santanu
Mazumdar and other non teaching staff.
Las t but not the leas t I thank to a l l my f r iends Sudip , Vikas ,
Shahina, Arka and my al l fami ly members who have d irec t ly or
indirec t ly he lped me in completion of my project report.
DECLARATIONI, Pritam Bhadra, declare that this project report entitled “MERCHANDISE PRESENTATION MANAGEMENT” is an original piece of work is done and submitted by me towards partial fulfillment of my BBA (H), 3rd yr, under the guidance of Prof.Partap Shankar Das.
Pritam Bhadra