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  • 8/8/2019 Nimit Mathur - 25


    Visual Merchandizing & Brand Communication



    Visual Merchandizing


    Brand Communication for the LOOTMART store.

    Completed at: Pantaloon Retail India Ltd (PRIL)

    Under the Guidance of: Mr. Swapnil Laghate (Manager, Value Fashion)

    Date: 2nd

    April 31st May 07

    Submitted by: Nimit Mathur


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    The following Summer Project Report titled "Visual merchandizing and

    Brand Communication for the LootMart store is hereby approved as a

    certified study in management carried out and presented by Nimit Mathur,


    in a manner satisfactory to warrant its acceptance as a prerequisite for the

    award of Post-Graduate Diploma in Management for which it has been

    submitted. It is understood that by this approval the undersigned do not

    necessarily endorse or approve any statement made, opinion expressed or

    conclusion drawn therein but approve the Summer Project Report only for

    the purpose for which it is submitted.

    Under Guidance of: Approved By

    Mr. Swapnil Laghate Mr. Dheeraj Agarwal

    Manager, Marketing/Operations Asst. Manager H.R.


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    Visual Merchandizing & Brand Communication


    I take this opportunity to express my regards with deep sense of gratitude to

    Mr. Swapnil Lagathe (Manager, Value Fashion) who gave me an

    opportunity to under go training in his esteemed organization.

    I sincerely thank Mr. Hemant Kejriwal (Sr. Manager, Value Fashion), my

    industry guide for his guidance and support through out the project. Also I

    would like to thank all the associates of Pantaloon Retail India Ltd (PRIL),

    for their cooperation and for providing me with a congenial working


    I would also like to thank Brig. H. Chukerbuti (Director, Symbiosis Institute

    of Management Studies) & Prof. D.S. Kadam (Deputy Director) for letting

    me have a glance at the corporate world.

    Last but not the least, I would like to thank my family members and friends,

    who knowingly or unknowingly helped and supported me during the courseof training.


    Nimit Mathur.


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    Visual Merchandizing & Brand Communication


    Executive Summary5

    Company profile.6

    Objective & Methodology..8



    Visual Merchandizing.10 New VM for the Store13 Brand Communication19

    Retail Trends in India22



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    Visual Merchandizing & Brand Communication

    Executive Summary

    The project was undertaken during the summer internship at Pantaloon

    Retail India Ltd (PRIL).

    My project was to develop the LOOTMART brand in India. I assisted in the

    development of the Brand LOOTMART, helped in various promotions and

    communications about the brand. The work involved conceptualizing and

    implementation of advertisements (Print Ads, Banners, Posters and Leaflets

    etc.) both in the stand alone and in-mall promotional activities. My work

    also involved the standardization of the signage, in-store communication

    which was to simplify the design of various furniture used in the store like

    shelves, browsers, gondolas etc. The contribution of my findings and

    observations were practiced in the LOOTMART stores all over INDIA and

    also in all the upcoming stores. Various recommendations helped the retailer

    communicate better with the consumer and were established as the standard


    Visual Merchandising was a way to standardize the communication the

    impact of the stores image and the advertisements on the consumers mind.

    The project with Pantaloon was to find the suitable ways of doing the same

    and also making it simpler for the store managers to implement. I was

    responsible for standardizing the practices to be followed and suggesting

    newer and innovative ways of Visual Merchandising.


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    Company Profile

    Pantaloon Retail is the flagship enterprise of the Future Group, which is

    positioned to cater to the entire Indian consumption space. The Future

    Group operates through six verticals: Future Retail (encompassing all retail

    businesses), Future Capital (financial products and services), Future Brands

    (management of all brands owned or managed by group companies), Future

    Space (management of retail real estate), Future Logistics (management of

    supply chain and distribution) and Future Media (development and

    management of retail media).

    Future Capital Holdings, the group's financial arm, focuses on asset

    management and consumer finance. It manages two real estate investment

    funds (Horizon and Kshitij) and consumer-related private equity fund, in

    division. It also plans to get into insurance, consumer credit and other

    consumer-related financial products and services in the near future.

    Future Group's vision is to, "Deliver Everything, Everywhere, Every time

    to Every Indian Consumer in the most profitable manner." One of the core

    values at Future Group is, 'Indianess' and its corporate credo are - Rewrite

    rules, Retain values.

    Pantaloon Retail (India) Limited, is India's leading retail company with

    presence across multiple lines of businesses. The company owns and

    manages multiple retail formats that cater to a wide cross-section of the

    Indian society and is able to capture almost the entire consumption basket

    of the Indian consumer. Headquartered in Mumbai (Bombay), the company

    operates through 5 million square feet of retail space, has over 331 stores

    across 40 cities in India and employs over 17,000 people. The company

    registered a turnover of Rs 2,019 crore for FY 2005-06.


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    Pantaloon Retail forayed into modern retail in 1997 with the launching of

    fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar,

    a hypermarket chain that combines the look and feel of Indian bazaars, with

    aspects of modern retail, like choice, convenience and hygiene. This was

    followed by Food Bazaar, food and grocery chain and launch Central, a

    first of its kind seamless mall located in the heart of major Indian cities.

    Some of its other formats include, Collection i (home improvement

    products), E-Zone (consumer electronics), Depot (books, music, gifts and

    stationary), aLL (fashion apparel for plus-size individuals), Shoe Factory

    (footwear) and Blue Sky (fashion accessories). It has recently launched its

    e-tailing venture,

    The group's subsidiary companies include, Home Solutions Retail India

    Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League

    Clothing. The group also has joint venture companies with a number of

    partners including French retailer Etam group, Lee Cooper, Manipal

    Healthcare, Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a

    group company owns the franchisee of international brands like Marks &

    Spencer, Debenhams, Next and Guess in India.

    Leadership is a value that is followed by one and all at Pantaloon.

    Leadership is the quality that motivates us to never stop learning, stretching

    to reach the next challenge, knowing that we will be rewarded along the

    way. In the quest of creating an Indian model of retailing, Pantaloon has

    taken initiatives to launch many retail formats that have come to serve as a

    benchmark in the industry.


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    Visual Merchandizing & Brand Communication


    To evaluate and create an attractive in-store identity and an appropriate

    brand communication for the LootMart store.


    Step 1 Study LootMarts Structure.

    Step 2 Observe and study the target market and the products offered at the

    LootMart Store.

    Step 3 Based on the observation and the USP of the brand create an in-

    store identity and brand communication keeping in mind their target market,

    their product range, and the promotions to be offered.


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    While working on the following project I made a few interesting observation

    about the brand, its working and the retail sector as a whole. These were:

    LootMart was a new concept introduced by the Value Fashion withthe USP being Selling big brands at amazingly low prices.

    At present they had 18 stores across various cities all over India andwere opening more at a rapid pace.

    The in-mall and in-store display and communication was very dulland did not have any set theme or style. This created confusion for

    our target market and led to fewer footfalls.

    The stores (Orchid Centre in particular) were too congested andlacked an attractive and appealing look.

    The store was unorganized and everything seems to be just stockedbut not presented to the customer.

    Brands available, sizes, different offers/schemes were not highlightedproperly.

    Though we had a colour theme around which the store was done butit still lacked a sort of standardization.

    We had the best of brands available with amazing merchandize but Iguess we were surely lacking in communicating effectively with our

    target audience.

    These initial observations of mine helped me in tackling my project

    effectively and efficiently. Working in a Retail company for the first time I

    learnt how various departments co-ordinate and work towards a common

    goal. The project taught me the various aspects of Visual Merchandizing

    and Brand Communication and their relative importance in creation of a

    successful and a strong brand.


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    PART 1: Visual Merchandising.

    1. Be Original

    Boredom. Sameness. Mediocrity.

    We need to continuously innovate with new and attractive ideas. We must give our customers as many reasons as possible to shop in

    our store and make it a happy and satisfying experience for them. We should try and play around with the layout of the store and keep



    The following recommendations can provide us with a good starting point:

    Use colour corrected bulbs. Improper bulbs make merchandise lookgrey and shabby.

    We can make use of spot lights, preferably halogen, to highlight keyselling areas.

    Make the front of the store "glow" with light. Lootmart needs to benoticed and a bright storefront is more attractive and appealing.

    Address the Senses

    Create a sensual experience in your store by paying attention not only to

    sight, but also to smell, touch and sound.

    Pay attention to how our store smells.


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    Music is an essential element in any store. A relaxed and fun workplace will also increase the productivity and morale levels of your

    employees. Lootmart should use music that suits our target market. .

    Store Windows

    Your storefront windows are an ideal opportunity to attract customers

    attention and drag them into your store. Windows should be used for these

    main purposes:

    Sales promotions Image-building Seasonal changes New arrivals High demand items

    - We must change our windows as often as every week. Customers pass by

    our store at least two or three times a week.

    - You must constantly present a fresh and exciting face.

    Creative Displays

    Our displays should tell a story or have a theme. The new design forLootMart has incorporated that.

    Keep displays simple. Dont include too many items. Try portraying our products in use. Use well-stocked power walls/displays to show best sellers. Show complementary/coordinating items together. We should try and integrate our advertising into our displays.


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    As much as 80% of all sales are generated at point of purchase by signage,

    displays and events within the store. Signage is the "silent salesperson" for

    the retailer and must reflect our image.

    We should broadly consider the following 4 basic types of signages:

    1) Promotional signs: For off-price events or specials.

    2) Location signs: For direction to specific departments.

    3) Institutional signs: For store policies, charitable events.

    4) Informational signs: For product related features/ benefits/prices.

    Make our signs short and sweet. Create a consistent look. Colour, size, type, style, and layout should

    be consistent, which the new VM for LootMart has imbibed.

    Use feature/benefit/price signs. We should only post positive signs about our policies. If it's negative,

    either change it or don't post it.

    Say "Save Rs.100", instead of "10% off". Its usually much morepowerful.


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    New VM for the LootMart Store.



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    Hanging Pointer


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    Wall Vertical/Pillars


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    Visual Merchandizing & Brand Communication

    Scheme Announcer

    Carry Bags


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    Visual Merchandizing & Brand Communication

    Mission Statement Board


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    Visual Merchandizing & Brand Communication



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    Visual Merchandizing & Brand Communication

    PART: 2 Brand Communication.

    Brand Communications engages the highest levels of management because

    it brings strategy, finance and marketing communications together to

    manage the brand to optimize its value. It serves as a catalyst for uniting

    executive, financial and marketing management and ultimately helps to

    remove internal barriers that may have prevented an integrated

    communications effort.

    Step 1: Start understanding the role of branding your business.

    Analyzing the role that brand plays and can play in securinggreater loyalty across the business.

    Where does LootMart stand now and where it can be taken.

    Step 2: Understand whom you need to reach.

    Identify key target audiences. Distinguish between targets that drive the success of the business and

    targets that simply contribute to, or influence, its success.

    Get people to change the way they think about LootMart Store. Design a brand strategy that connects with our driving audiences and

    a communications plan to connect with your contributing audiences

    which is more or less in place for the LootMart store.

    Step 3: Frame your BIG idea.

    Define unique value propositions.19

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    Visual Merchandizing & Brand Communication

    Communicating meaningful distinctiveness is a catalyst for growth. Differentiated and stand apart from competitive propositions Credible in their believability. Have the stretch to grow with your business as it evolves.

    Step 4: Build the messages to shift perceptions.

    Change the way people think about you. Deliver precisely targeted messages that rise above the clutter and

    compel them to alter their assumptions.

    Before you spend, make sure the messages are right.

    Step 5: Understand the role of each medium in making the shift and

    sustaining momentum.

    Each progressive stage of involvement requires more individualizedcommunications to meet the needs of your audience.

    Depending upon what stage of Product Life Cycle our LootMart storeis going through we should decide upon the medium of


    For a format like ours we should concentrate more on print media,hoardings, banners and more of cross-promotions.

    Step 6: Revisit step 3.

    Return to your messages and explore opportunities to make themmore compelling.


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    Return to your media assumptions and determine if youre reachingyour targets.

    Return to your budgets and determine if youve allocated them aseffectively as possible.


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    Recent trends in the retail sector in India.

    Real estate costs:

    Most retailers expressed concerns about the high cost of real estate today.

    On the other hand, the average purchase ticket size in India is still low. This

    could lead to a situation of high fixed cost, with low contribution per sale for

    retailers. High footfalls would be a necessary condition for success. Unless

    real estate costs become conducive to retail growth, most retail business will

    take a longer time for break-even. Also the problem of excess general malls

    with similar value propositions is posing a menace of choked rapid



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    Distribution costs:

    A key bottleneck mentioned by respondents is the absence of distribution

    networks connecting Tier-II towns with regional logistics hubs. There is

    scope for organised logistics players like regional transport companies/ third

    party logistics (3PL) players to develop these distribution networks

    including warehouses, cold chains and truck/ multi-modal services

    connecting these locations. Investments are being made in warehouses andhubs by Indian corporates. Outsourced logistics service providers are also

    emerging McDonalds working with Radhakrishna Foodland is a case in


    Is retail space adequate in India?


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    Availability of quality retail space is a critical enabler for the anticipated

    rapid growth of modern retailing in India. The preferred form of retail real

    estate acquisition is through long term leases in India. Few retailers prefer a

    mix of owned and leased real estate space and some own the real estate

    space. A majority of the survey respondents felt that the availability of retail

    real estate space is adequate in India. However there were some instances

    where retailers had to wait a few years before they got a suitable location to

    set up their stores. A pressing issue facing retailers today is the cost of real

    estate. An overwhelming majority of the respondents felt that the real estate

    in India is over priced today.

    Development of Tier II cities and sourcing hubs:-

    Stocks in the retail sector are also becoming increasingly attractive from an

    investor's point of view. Successful development of value based concepts as

    well as development of retail space in smaller cities and towns shall drive

    the organized retail into the next levels of cities. Retailers have responded to

    this phenomenon by introducing contemporary retail formats such as

    hypermarkets and supermarkets in the new pockets of growth. Prominent

    tier-II' cities and towns which are witnessing a pick-up in activity include

    Surat, Lucknow, Dehra Dun, Vijaywada, Bhopal, Indore, Vadodara,

    Coimbatore, Nasik, Bhubaneswar, Varanasi and Ludhiana among others.

    With consumption in metros already being exploited, manufacturers and

    retailers of products such as personal computers, mobile phones,

    automobiles, consumer durables, financial services etc are increasingly

    targeting consumers in tier II cities and towns. In addition, petro-retailing

    efforts of petroleum giants scattered through out the country's landscape

    have also ensured that smaller towns are also exposed to modern retailing



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    On the supply side, mall development activity in the small towns is also

    picking up at a rapid pace, thereby, creating quality space for retailers to

    fulfil their aggressive expansion plans. Thus, the retail boom', 85% of

    which has so far been concentrated in the metros is beginning to percolate

    down to smaller cities and towns. The contribution of these tier-II cities to

    total organized retailing sales is expected to grow to 20-25%.

    Favourable demographic and psychographic changes relating to India's

    consumer class, international exposure, availability of increasing quality

    retail space, wider availability of products and brand communication are

    some of the factors that are driving the retail in India. Over the last few

    years, many international retailers have entered the Indian market on the

    strength of rising affluence levels of the young Indian population along with

    the heightened awareness of global brands and international shopping

    experiences and the increased availability of retail real estate pace.

    Development of India as a sourcing hub shall further make India as an

    attractive retail opportunity for the global retailers. Retailers like Wal-Mart,

    GAP, Tesco, JC Penney, H&M, Karstadt-Quelle etc stepping up their

    sourcing requirements from India and moving from third-party buying

    offices to establishing their own wholly owned / wholly managed sourcing

    & buying offices shall further make India as an attractive retail opportunity

    for the global players.


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