Amity School of Fashion Technology

Presented To : Shikha Chantia Presented By: Vishwa Varun

Industry Internship

“Impact of Store Atmospheric & Fixtures on Consumer Behaviour”

Objective of Study:

Objective of my study to understand the consumer behavior in today’s retail apparel business.

What are the factors which influencing consumer behaviour.

What is the role of store atmospherics in consumer buying behaviour?

Is there any relation in consumer buying behaviour and store format, store display?

To study the factors which influence consumers to buying apparel products?

Objective to find the consumer needs?

About Landmark Group

Statement of Purpose: Creating exceptional value for all lives we touch. Core values:

Passion for excellenceIntegrity in everything we doEmpowering people to strive and deliverAdapting to changing market and consumer needs

Founded in 1973 in Bahrain, the Landmark Group has successfully grown into one of the largest and most successful retail organizations in the Middle East and India. An international, diversified retail and hospitality conglomerate that encourages entrepreneurship to consistently deliver exceptional value, the Group operates over 1800 outlets encompassing over 24 million square feet across the GCC, Egypt, Turkey, Jordan, Lebanon, Yemen, Iraq, Sudan, Kenya, Libya, Nigeria, Tanzania, India, Pakistan and Sri Lanka. The Group employs over 50,000 people.

Key Strengths:

The Landmark Group has grown consistently in every market condition displaying stability of performance and high value for our customers across the globe.

Our strengths lie on the four pillars of strategic business, efficient operations, logistics and the people who drive our success as a group.

  Business  Logistics  Operations  People 

Large and diversified retail formats with anchor stores in major malls.

Efficient supply chain management

Cost efficient operations and optimum use of resources.

Decentralized decision making teams with hands-on management capability.

Our businesses:As  one  of  the  largest  retail  conglomerates  in  the  Middle  East  and  India,  the Landmark Group has a diverse portfolio of retail and hospitality brands.

o  Retail Brandso  Hospitality Brandso  Mall Management

Retail Brands:The Landmark Group provides value-driven products for the entire family through a diverse portfolio of core retail brands:  Centre point  Baby shop  Splash   Shoe mart   Lifestyle  Iconic  Max

About Max

Launched in the UAE in May 2004, Max is the largest value-fashion brand in the Middle East and caters to the mid-market segment.

With over 226 stores across the Middle East, North Africa and India, Max plans to expand its network to more markets within the region.

With stores that typically measure between 1,800 sq. m to 2,800 sq. m, the company sells its own-label apparel for men, women and children, along with footwear and home accessories. With a friendly shopping experience, Max delivers More Fashion More Value.

Brand Vision: To be the leading value-fashion retailer in the region by offering good products at great prices.

Brand Philosophy: To be fair and transparent in our business transactions with all stakeholders and to provide maximum opportunities for growth.

Management Hierarchy level

Here is explaining hierarchy of max at store level.

                                                                     Area Manager 

                                                              Assistant Store Manager

                                                                Departmental Manager                                                                  Senior Sales Executive

                                                                   Sales executive

  Max offers apparels for whole Indian family from kids to adults and Men’s to women’s, from ethnic to modern apparels.

Max target consumer is middle class and lover middle class.

As Max tagline says “Look Good, Feel Good”.

If female wants to shop for daily wear she can get a t-shirt and kurtis in just 250 rupees onwards. Same with males.

Max knows his target consumer and offer according to that.

Departments in Max Fashion

Max has following departments in each retail store

a. Western wear Department 52b. Ethnic Wear Department 48c. Footwear Department 49d. Men’s Department 51e. Accessories Department 46f. Kid’s Wear Department 50

During my internship I studied each and every department with the range and depth of department.

Each and every department has particular codes so that people can understand the merchandise which it belongs.

Average contribution of various departments in regular business

Western wear department 20%Ethnic Wear department 14%Footwear Department 7%

Men’s wear Department 21%Accessories Department 4%Kid’s Wear department 22%

Concessional Department 12%

On the basis of price band they categories products

1)Basic 2)Non Basic

Fixtures and setting used in Max Fashion

Fixtures and setting used in max Fashion India are as follows

o    Gondolao    4 way browsero    6 way browsero    D-shape browsero    T-armo    Step Armo    Round Tableo    Nesting Tableo    A-Stando    A-Railo   Wall  (area count in meters )

SOP: Standard of the Process.

oMax follows SOP designed by landmark group.

oQuality and service standard defined by group.

oMax follows human resource policies to employees.

SPRING

PRE AUTUMN

WINTER SUMMERSEASON CYCLE

SEASON’S CYCLE

FEB-APR

MAY-JUNENOV-JAN

JULY-OCT

Factors Influencing Customers

In  today’s  keen  competitive  environment  store  image  and  atmosphere  are recognized  by  retailers  as  important  factors  influencing  customers’  decision making processes.

Kotler was the first person to define atmospheric ….

“The conscious designing of space to create certain effects in buyers. More specifically, atmospherics is an effort to design buying environment to produce specific emotional effects in the buyer that enhance his purchase probability”

Moreover,  the term atmospherics refers to  the stimuli  in the store environment which have a direct influence on customers purchase behavior.

Visual /Light Sound Fragrance /Smell Touch

This buying decision process is shaped by social, marketing and situational influences.

Firstly, social factors involve geographic and sociologic influences, which are culture, subculture, social class and family that affect the consumer’s behaviour through direct and indirect messages and feedbacks.

Sticking to the social factors, reference groups also affect consumers’ thoughts, feelings, and actions. Secondly, marketing influences, known as the 4P’s (Product, Price, Place, Promotion), also have an impact on the process.

Internal Stimuli

Hedonic needsSelf regulatory 

Resource availabilitySocial status

Subjective well being

External Stimuli

Visual stimulusSelf service

Store environmentDiscountsDisplay

Social factorsOwnership of credit card

Shopping format

Objective

↔  Objective of my study to understand the consumer behavior in today’s retail apparel business.↔  What are the factors which influencing consumer behaviour.↔  What is the role of store atmospherics in consumer buying behaviour?↔  Is there any relation in consumer buying behaviour and store format, store display? ↔  To study the factors which influence consumers to buying apparel products?↔  Objective to find the consumer needs?

Hypothesis

Aims to discover whether there is a significant relationship, correlation between customers’ impulse buying behavior and the layout of the studied store and if this visual merchandising technique enhances this behavior. What are the factors which influencing consumer behaviour.

What is the role of store atmospherics in consumer buying behaviour?

Is  there  any  relation  in  consumer  buying  behaviour  and  store  format,  store display? To study the factors which influence consumers to buying apparel products? 

Data Collection

↔ During  the  study,  five  important  factors  (quality,  price,  variety,  design  and visual merchandising) affecting the purchase of apparels have been identified. 

↔ Data collection by following methods

↔ Direct interaction and solving queries of consumers. To find out the affect of visual merchandising on buying behavior of customers.

↔ I frequently asked question to consumer’s sample of questioaire attached in last.

FindingsAs window display is the face of store, it must need to change on regular basis.

Visual display change as per seasons and latest arrival in the stores.

Which apparels are displayed in store branding was not available in store.

Music was also not happening in the store to set consumer mood.

Assortment planning need improvement. Which products are not moving are still displayed in sections.

Fast moving product need to replenish as soon as product move from store.

Inventory management & assortment planning in store from corporate office is poor.

Like in kids department consumers were looking for more ethnic and party dresses.

Max doesn’t have kurta form men’s so many consumer asked.

Relationship between sales executive presentation and consumer behaviour.

Shopping basket is necessary to give every consumer?

Consumer behaviour on product out of stock.

Accessories department product width & depth (Assortment).

So many consumer asked for resting area.

Recommendation

Visually appealing stores and outlets did help the respondents to create an image of the brand in the minds of the customers.

There should be proper relation between the season and the products displayed. The store environment should be warm, welcoming and friendly giving a customer a memorable shopping experience.

Music is played in retail store not with the objective of providing entertainment but for influencing buying behavior.

The Store should be organized logically like proper groups and categories should be mentioned, so that all merchandize of one type, color, and size is positioned together helping the customer to make a clear choice.

Do proper assortment planning from corporate to store level as per trend and past sale.

Max running out of stock in many categories, on moving stock stored in stock. It needs improvement.

In accessory department also introduce Bronze, Copper, and Silver Jewellery.Improve consumer and sales people interaction; way of interaction must be different from shopping basket.

It may be some fabric knowledge, Washing pros and cons, how to improve life of garment, something interesting.

Why not introducing some CREDIT facility for students, either students can deposit small amount in installments and shop after 3 or 6 month of whole amount they deposited.

Introduced resting area in store if possible in all the departments. So many consumers complained.

Thank you

Amity School of Fashion Technology