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8/2/2019 Choice of Retailers and Merchandise
http://slidepdf.com/reader/full/choice-of-retailers-and-merchandise 1/24
PRASAD.E.PRABHU (101134)
PRIYANKA GUPTA (101135)RAHUL KRISHNAN (101136)
ROHIT BATRA (101138)RUDRA PRATA.P (101139)
SADAF IRFAN (101140)
SAI KIRAN KUMAR S.B (101141)
8/2/2019 Choice of Retailers and Merchandise
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DEFINITIONS
Merchandise: Household, personal use, or commercial goods,
commodities, bought and sold in wholesale and retail.
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Retailer: A business or person that sells goods to the consumer, as
opposed to a wholesaler or supplier, who normally sell their goods toanother business.
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Choice of Retailer:
Choosing a particular retailer or retail store by consumer.
There are some motives that actuate a consumer in buying his requirements from aparticular retailer or retail store rather than from another because of the following:
• Location
a) Area in which the store is located
b) Distance from consumer’s home
• Nature of the goods sold
• Goodwill of the store
• Attitude of salesman
• Services offered by store
• Stores approach to the customer/consumer
• Quality• Prices
• Variety availability
• Cleanliness
• Safety
• Space availability
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A factor analysis, on the importance of selection criteria by
consumers
A seven factor solution,
Factor 1: "Environment", consists of variables relating to the physical
environment of the retail store. Variables such as store decor, lighting,atmosphere/ambience and layout, and air conditioning, attractiveness of
displays, and advertising effectiveness are included in this factor.
Factor 2: "Merchandise and Operations", consists mainly of variables
relating to the tangible offerings of the retailer such as variety and quality of merchandise, availability of desired product lines and desired package sizes.
Factor 3: "Staff", includes variables relating to the helpfulness, friendliness,
courtesy and training of staff, and personalized relations with staff.
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Factor 4: "Pricing Promotions", includes variables related to "sale" items
such as selection/choice, discounts and availability.
Factor 5: "Availability”, includes variables that are related to the
availability of the retail store such as store hours and location convenience.
Factor 6: "Shopping Ease", includes ease of movement in store and ease of
finding items.
Factor 7: "Image”, includes reliability and reputation of store in this factor.
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Factors Affecting the Choice of Merchandise
Merchandising:“ The analysis, planning, acquisition,handling and control of merchandise investments of a retail
operation.”
Size
Merchandise carried
Organization structure
Planning
Directing
Co-ordination Controlling
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Visual Merchandising: The artistic display of merchandise and theatrical props used as scene-
setting decoration in the store
Several key characteristics
Not associated with shop-able fixture but located as a focal point orother area remote from the on-shelf merchandising (and perhaps out of the reach of customers)
Use of props and elements in addition to merchandise – visuals don’talways include merchandise; may just be interesting display of itemsrelated to merchandise or to mood retailer wishes to create
Visuals should incorporate relevant merchandise to be most effective Retailers should make sure displays don’t create walls that make it
difficult for shoppers to reach other areas of the store
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Store Front Design & Atmospherics
Storefronts must:
Clearly identify the name and general nature of the store
Give some hint as to the merchandise inside
Includes all exterior signage
In many cases includes store windows – an advertising medium for the store – window displays should be changed often, be fun/exciting, and reflect
merchandise offered inside.
The design of an environment via:
visual communications lighting color sound scent
to stimulate customers’ perceptual and emotional responses and ultimatelyinfluence their purchase behavior
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Visual Communications:
• Name, logo and retail identity
• Institutional signage
• Directional, departmental and category signage
• Point-of-Sale (POS) Signage
• Lifestyle Graphics
Coordinate signs and graphics with store’s image
Inform the customer
Use signs and graphics as props
Keep signs and graphics fresh
Limit sign copy
Use appropriate typefaces on signs
Create theatrical effects
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Lighting & Color:
Important but often overlooked element in successful store design
• Highlight merchandise
• Capture a mood
• Level of light can make a difference
Blockbuster Fashion Departments
Can influence behavior
• Warm colors increase blood pressure, respiratory rate and otherphysiological responses – attract customers and gain attention but can alsobe distracting
• Cool colors are relaxing, peaceful, calm and pleasant – effective forretailers selling anxiety-causing products
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Sound & Scent
Sound
Music viewed as valuable marketing tool
Often customized to customer demographics
Can use volume and tempo for crowd control
Scent
Smell has a large impact on our emotions
Victoria Secret, The Magic Kingdom, The Knot Shop Can be administered through time release atomizers or via fragrance-
soaked pellets placed on light fixtures
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Grid (Straight) Design
• Best used in retail
environments in which
majority of customers shop the
entire store
• Can be confusing and
frustrating because it isdifficult to see over the
fixtures to other merchandise
• Should be employed
carefully; forcing customers to
back of large store mayfrustrate and cause them to
look elsewhere
• Most familiar examples for
supermarkets and drugstores
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Curving/Loop (Racetrack) Design
•Major customer aisle(s)
begins at entrance, loops
through the store (usually inshape of circle, square or
rectangle) and returns
customer to front of store
• Exposes shoppers to thegreatest possible amount of
merchandise by encouraging
browsing and cross-shopping
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Free-Flow Layout • Fixtures and
merchandise grouped
into free-flowing
patterns on the sales
floor –
no defined trafficpattern
• Works best in small
stores (under 5,000
square feet) in which
customers wish to
browse
• Works best when
merchandise is of the
same type, such as
fashion apparel
• If there is a great
variety of merchandise,
fails to provide cues as
to where one
department stops and
another starts
Storage, Receiving, Marketing
Underwear Dressing Rooms
Checkout counter
Clearance
Items
Feature Feature
J e a n s
C a s u
a l W e a r
S t o c k i n g s
A c c e s s o r i e s
P a n t s
T o p s
T o
p s
S k i r t s a n d D r e s s e
s
H a t s a n d H a n d b a g s
Open Display Window Open Display Window
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Spine Layout
• Variation of grid, loop and free-form layouts
• Based on single main aisle running from thefront to the back of the store (transporting
customers in both directions)
• On either side of spine, merchandise
departments branch off toward the back or
side walls
• Heavily used by medium-sized specialty
stores ranging from 2,000 – 10,000 square feet
• In fashion stores the spine is often subtly
offset by a change in floor coloring or surface
and is not perceived as an aisle
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Location of Departments
Relative location advantages
Impulse products
Demand/destination areas
Seasonal needs
Physical characteristics of merchandise
Adjacent departments
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Fixture Types
Straight Rack – long pipe suspended with supports to the floor orattached to a wall
Gondola – large base with a vertical spine or wall fitted with sockets ornotches into which a variety of shelves, peg hooks, bins, baskets and
other hardware can be inserted.
Four-way Fixture – two crossbars that sit perpendicular to each other ona pedestal
Round Rack – round fixture that sits on pedestal
Other common fixtures: tables, large bins, flat-based decks
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Fixture Types
Wall Fixtures
To make store’s wall merchandisable,
wall usually covered with a skin that is
fitted with vertical columns of notches
similar to those on a gondola, into
which a variety of hardware can be
inserted
Can be merchandised much higher
than floor fixtures (max of 42” on
floor for round racks on wall can be as
high as 72”
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Merchandise Display Planning
Shelving – flexible, easy to maintain
Dumping – large quantities of small merchandise can be dumped intobaskets or bins – highly effective for soft lines (socks, wash cloths) orhardliners (batteries, candy, grocery products) – creates high volume, lowcost image
Pegging – small rods inserted into gondolas or wall systems – can be laborintensive to display/maintain but gives neat/orderly appearance
Folding – for soft lines can be folded and stacked on shelves or tables -creates high fashion image
Stacking – for large hardliners can be stacked on shelves, base decks of gondolas or flats – easy to maintain and gives image of high volume andlow price
Hanging
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Three Psychological Factors to Consider in Merchandising
Stores
Value/fashion image
Trendy, exclusive, pricy vs. value-oriented
Angles and Sightlines
Customers view store at 45 degree angles from the path they travel as theymove through the store
Most stores set up at right angles because it’s easier and consumes less space
Vertical color blocking
Merchandise should be displayed in vertical bands of color whereverpossible – will be viewed as rainbow of colors if each item displayedvertically by color
Creates strong visual effect that shoppers are exposed to more merchandise(which increases sales)
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POS Displays
Assortment display – open andclosed assortment
Theme-setting display
Ensemble display
Rack display
Case display
Cut case
Dump bin