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CERTIFICATE FROM THE COMPANY CERTIFICATE This is to certify that Mr. Shishir Saxena of PGDM-IB from IFIM Business School has undergone a “Summer Internship Programme” (SIP) at “NUANCE GROUP INDIA PRIVATE LTD. ” on the topic “THE APPLICATION OF VISUAL MERCHANDISING CONCEPT TO IMPROVE SALES “under the guidance of Mr. Rolf Blaser & Prof. Shinu Abhi, towards the partial fulfillment of the award of Post Graduate Diploma in Management in International Business during the academic year 2007-2009. Dr. Balasubramanian, Dean, International Study Programme and Placements, DECLARATION
I hereby declare that this Summer Internship project report on “THE APPLICATION OF VISUAL MERCHANDISING CONCEPT TO IMPROVE SALES” is my own work, to the best of my knowledge and belief. This is an original report and is not submitted elsewhere or has been accepted for the award of any other degree or diploma of any other institute, except where due acknowledgement has been made in the text. SHISHIR SAXENA IFIM B SCHOOL ACKNOWLEDGEMENT I express my heartfelt gratitude towards “NUANCE GROUP INDIA PRIVATE LTD” Company for having given me an opportunity to undertake my summer internship project. I am grateful to Mr.
Sanjay Chatterjee HEAD-HUMAN RESOURCE who gave me this opportunity to work with one of the world’s leading airport world’s Nuance group. I would like to thanks Mr. Rolf Blaser-Airport operations manager who helped me during several stages of my project. I would also like to thanks all the member of nuance staff who cooperated with me during the project. I express my sincere thanks to my internal guide Prof. Shinu Abhi for her sincere help given to me during my internship. Finally, I would like to thank all those people who have directly or indirectly helped me in completing this research project successfully.
EXECUTIVE SUMMARY Nuance is one the world’s leading airport retailer in the world. It has entered Indian market through a tie-up with Shopper’s stop. It has opened stores at Hyderabad and Bangalore international airports. The brief was to study the visual merchandising concepts and apply them to Nuance stores at the departure section of the airport. The stores that had to be analyzed for improvement areas are Crossword, Cocoon, LTC, Perfumes & Cosmetics under Duty-free category; Life’Spirits, Lamoda and Mithaas under Duty-paid category.
Since Nuance had established the stores recently, the arrangements of various items was done in a random fashion and the shelves were still not filled with the stocks as they were in the process of finalsing the suppliers. Nuance targets airtravellers with an array of products including the best brands in the world and also some unique products which are available only in this part of the world. Some of the areas of improvement noticed were ?Many dead spots ?Lack of proper aisles to regulate the traffic flow ?Even sized shelves with the same monotonous colour ?Lack of lighting arrangements highlighting the products Badly designed signages Some of the suggestions for improvements are ?Dead spots have to be eliminated by placing gondolas, advertising material on walls etc. ?The layout has to be designed in such a way that the aisles would guide the customers around the store enabling them to access every area of the store without missing any part of the store. ?Independent gondolas having different shelf sizes have to be installed to display items of different sizes. The shelves will have to be covered with materials of contrasting colours so as to highlight the products. Appropriate arrangement of products on the shelves so that the light is focused on each product. ?Clearly visible signages with appropriate colours of the letters and backgrounds. ?The space allocated to “Mithaas” appears to be more. This space can be partitioned and allocated to other sections which require more space like the “Souvenirs” By implementing the recommendations made, the customers would find the display attractive enough and be enticed to purchase the products by creating an interest and the desire to acquire the product. Thus a good display would translate into high sales for the store.
Chapter 1: GENERAL INTRODUCTION Introduction to the study Visual merchandising until recently called simple merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes utilizing product, environment & space into a stimulating and engaging display to encourage the sale of the product or services. Many elements can be used by visual merchandising in creating display, including colors, lighting, space, product information, sensory inputs such as smell touch & sound as well as technology such as digital display & interactive installation.
Visual merchandising is not a science; there are no absolute rules. It is more like an art in the sense that there are implicit rules but that these also exist to be broken for striking effects. Especially in today’s challenging economy, people may avoid designers/ visual merchandisers because they fear unmanageable costs. But in reality, visual merchandisers can help economist by avoiding costly mistakes. With the guidance of a professional, retailer can eliminate errors, saving time and money. It is important to understand that the visual merchandiser is there, not to impose ideas, but to help clients articulate their own personal style.
Recently visual merchandising has gained in importance as a quick and cost effective way to revamp retail stores. Background to the study The Bangalore International Airport Limited (BIAL) is a newly constructed airport located at a distance of around 40 kms from the city centre. Nuance Group-one of the largest airport retail companies in the world has entered India by having a joint venture with shopper’s stop. It has two operations in India, one is at Hyderabad and other is at Bangalore International Airport Limited (BIAL). Nuance stores at BIAL retails premium, branded items.
The stores are located in Arrival, Departure and at the main entrance of the airport. However, our objective was to analyse and make recommendations on the stores at the departure section only. The stores at the departure section have been classified into two categories viz, Duty Free Shops, Duty paid shops. The product categories include liquors, tobacco, cigars, cigarette, apparel, perfumes, cosmetics, books, electronic items, souvenirs, jewellery, bags, food items etc. Nuance has setup the stores recently and is in the process of obtaining the products and displaying them for sales.
Hence they were on the lookout for trainees who could study the visual merchandising aspects of the stores and suggest areas of improvement. Chapter 2: INTRODUCTION TO THE PROBLEM Title of the study Applying visual merchandising concepts to Nuance stores at BIAL so as to increase sales Statement of the Problem Nuance stores being setup recently, the displays and the arrangements were still being designed. As a result, many arrangements were arbitrary with no design theme or much thought given for the display. Moreover the problem was compounded by the lack of stocks in many of the stores.
Though the stores sold only premium items, the sales at Nuance stores were not encouraging. Objectives of the Study ?Study visual merchandising concepts from other major retailers and literature so as to apply those concepts to Nuance stores ? Identify the areas of improvement of display at Nuance stores and make recommendations so as to increase sales Scope of the Study Nuance stores are located in Arrival, Departure and at the main entrance of the airport. Our objective was to analyze and make recommendations on the stores at the departure section only.
The stores that had to be analyzed were Crossword, Sound & Vision, Cocoon, LTC, Cosmetics & perfumes in the duty free section; Life spirit, LaModa and Mythaas in the duty paid section. Limitations of the Study ?Only recommendations had to be made and the execution was not in our hand. ?Many shelves/fixtures had been constructed already and hence the recommendations had to take into account the constructions already put up and no major changes/alterations in civil structure could be made. Chapter 3: COMPANY PROFILE History of the Company Nuance has had an eventful history since the company was established in 1992.
What started out as the amalgamation of the duty-free operations of Swissair and Crossair has grown to become the world’s largest airport retailer and the global number one in duty-free sales. This phenomenal growth has been largely achieved through acquisitions, particularly of Allders International Duty-Free in 1996. In the process, Nuance has taken a patchwork of successful but independent travel retail companies and fused them into a single strong corporation with one shared mission that makes optimum use of its constituent members’ local strengths and expertise.
THE WORLD’S TOP AIRPORT RETAILER With operations on five continents and over ninety years experience of serving the travelling customer, it’s hardly surprising that Nuance is the world’s top airport retailer. It’s a position we aim to retain, through our growing portfolio of stores that are carefully tailored to travelers’ needs, provide customers with the products they desire and enable our airport partners to create their own unique travel shopping environment. Nuance is active in all sales channels – in flight, on ferries, downtown, by mail order, over the Internet and from border shops.
With our geographical spread, our retail expertise and our extensive distribution network, we’re excellently equipped to identify and respond to new shopping trends. No wonder that, when it comes to travel retail. Nuance is active in all sales channels – in flight, on ferries, downtown, by mail order, over the Internet and from border shops. With our geographical spread, our retail expertise and our extensive distribution network, we’re excellently equipped to identify and respond to new shopping trends. Facts & Figure: Revenue for 2007CHF 2’266 mio. Including joint ventures at 100%) Revenue for 2007CHF 1’764 mio. (consolidated) Staff5’000 Retail outlets380 In flight salesEdelweiss Air, SATA, TAP Air Portugal, Yesair and distribution to over 20 UK based airlines * as of December 31, 2007 Strategy of Nuance: Mission Values Corporate strategic goal Corporate Philosophy of Nuance: For all the diversity of its locations and distribution channels, The Nuance Group strives to ensure that all its efforts and energies are devoted to the same goals and the same corporate philosophy in all its business endeavors.
That’s why the group has adopted a single mission statement and a set of clear brand values, which are adopted and observed in all its activities worldwide Mission Statement: “By daring to be different and constantly challenging ourselves, we will make Nuance the first choice in travel shopping. ” Our Brand Values: “We exceed our customer desire and expectations” “We are the innovators in travel retailing. ” “We build lasting value through partnership. ” Some of the partners who make a big differnce in nuance business: CountryAirport AustraliaVienna airport Netherland Schipol international airport.
Portugal Aeroportos de portugal,lojas francas de Portugal. Sweden Gothenburg landvetter airport Some of the Operative Countries: ANGOLA ??? Airport Shops – Luanda International AirportAUSTRALIA ??? Airport Shops – Brisbane International Airport – Cairns International Airport – Melbourne International Airport – Perth International Airport – Sydney International Airport ??? Downtown Shops – Canberra – Perth – SydneyAUSTRIA ??? Airport Shops – Vienna International Airport USA ??? Airport Shops – Denver International Airport – Fort Lauderdale-Hollywood International Airport – Houston George Bush Intercontinental Airport Las Vegas McCarran International Airport CANADA ??? Airport Shops – Calgary International Airport – Toronto Pearson International AirportCHINA ??? Airport Shops – Zhuhai AirportGERMANY INDIA ??? Airport Shops – Bangalore – HyderabadIRELAND ??? Ferry Shops – Dublin – RosslareMACAU ??? Downtown Shops – The Venetian Macau NETHERLANDS ??? Airport Shops – Amsterdam SchipholNEW ZEALAND ??? Airport Shops – Auckland International Airport – Christchurch International Airport – Wellington International Airport ??? Downtown Shops – AucklandPORTUGAL ??? Airport Shops – Faro – Lisbon – Porto – The Azores SWITZERLAND ??? Airport Shops – Geneva – Geneva Airport Zurich ??? Downtown Shops – GenevaTURKEY ??? Airport Shops – Adana – Antalya Airport – Kayseri – Trabzon Nuance: Key Factor of Success: Nuance Core Competencies: Travel Retail Market: ` Overall Development of Nuance: Knowing What Our Customers Want: If you want to know what your customers want in your shops, the best people to ask are your customers! That’s why Nuance makes extensive use of consumer research as it strives to provide a product mix to please its customers and its airport partners alike. It’s an approach that has given us an unmatched insight into our customers’ attitudes to and expectations of their airport shopping experience.
That, of course, is only part of the story. If we aim to stay ahead, we need to know what our customers will want tomorrow, too. To do so, we’ve devised and developed our own predictive research tool, which enables us to identify new airport and other retail locations that offer promising sales potential and, with its targeted research approach, also helps us enhance the overall efficiency of our retail development process. Nuance Group in India: THE NUANCE GROUP AND SHOPPER’S STOP LTD SIGN A MEMORANDUM OF UNDERSTANDING FOR SETTING UP A JOINT VENTURE TO ENTER THE DUTY FREE RETAIL MARKET AT INDIAN AIRPORTS.
HYDERABAD, June 7, 2006 ??? The Nuance Group is teaming up with one of India’s leading retailers Shopper’s Stop Ltd. (part of the K. Raheja Corp. ??? Chandru. L. Raheja Group) in a joint venture designed to enter the Indian airport retail market. The JV Company will be equally owned by both partners and plans to offer a comprehensive range of services, from operating master concessions to distribution for international brands. Switzerland : Nuance-Shoppers’ Stop to operate Intl retail at Bangalore Airport November 30, 2006.
The Nuance Group, in a joint venture with leading Indian retailer Shoppers’ Stop, will start to operate at Bangalore Airport in April 2008. This is the first concession in India to be operated by The Nuance Group, who has defined India as one of its key strategic markets for expansion. The Nuance Group has defined India as one of its key strategic expansion areas and its Executive VP Business Development & Strategic Marketing, Mr Carlo Bernasconi, said, “Together we will be able to create a truly unique offer perfectly tailored to the needs of the customers at Indian airports. Bangalore Airport has awarded the concession to operate retail at both the international and domestic terminals to the consortia between the two companies. The international retail will be managed by a joint venture company by The Nuance Group AG and Shoppers’ Stop Ltd, whereas Shoppers’ Stop will handle retail in the domestic part, supported by The Nuance Group through a technical management agreement. The two contracts together cover retail space of appr. 3’200 sqm and are valid for 5 years. Overall, the concessions’ value amounts to USD 150 million.
Bangalore Airport is India’s fourth biggest airport and also the one with the highest growth rate. It is privately owned. By April 2006, Bangalore Airport handled 7 mio. Passengers on an annual basis, out of which 1 million travelled internationally. For 2008, the airport expects passenger numbers to amount to nearly 15 million. The retail offer in the international terminal will comprise a total of five stores, covering 2’000 sqm. One of these stores is a 450 sqm arrival store. Domestic retail will equally consist of five stores and a total of 1’400 sqm.
Roberto Graziani, President & CEO, The Nuance Group, declares: “We are highly pleased to have been awarded the contract to operate at Bangalore International Airport, which serves a fast growing and increasingly important business location. The Nuance Group has defined India as key strategic market for future expansion. ” Nobody Can Afford to Stand Still: Innovation is a linchpin in the Nuance retail philosophy. Nobody can afford to stand still in today’s business world. But you have to do more than keep abreast of your competitors if you want to lead the field.
That’s why Nuance is dedicated to innovation in all its forms – in its exciting shop concepts, in its constantly-developing range of products, and in its pioneering collaborations with its brand and airport partners. SHOPS AT BANGALORE INTERNATIONAL AIRPORT (BIAL). DUTY FREE AS WELL AS DUTY PAID: LA MODA: DOMESTIC DEPARTURE Fashion lovers will adore this shop: fashion accessories including sunglasses, watches and travel gear by well-known international designers such as Tommy Hilfiger, CK and FCUK and for Indian fine jewellery by Carbon.
LIFE & SPIRIT: DOMESTIC DEPARTURE: One part of the shop is dedicated to Crossword Books, with an attractive offer of books and related articles. The rest of the store offers souvenirs, a Time Box fashion watch concept and fine jewellery. COCOON: Fashion accessories by well-known international brands designed to take every fashion lover’s breath away: Crystals, jewellery, travel gear, sunglasses and watches are each stylishly presented, with leading writing instruments brand Montblanc featured in a shop-in-shop. CROSSWORD & SOUND VISION:
Targeting lovers of books and music alike, this concept features a wide array of books, magazines, CDs, DVDs, souvenirs and gift articles. BESIDE THESE THERE ARE LIQURS, TOBBACCO, and CIGARRTTE & PERFUMES SHOPS. MILESTONES IN THE NUANCE STORY: 1917Ocean Trading begins operating on board cruise ships 1955Duty-free sales begin on board Swissair 1961First tax-free shop at Zurich Airport 1992Nuance founded through merger of Swissair and Crossair duty-free operations 1995Acquisition of Downtown Duty Free and City International Duty Free, both Australia 996Acquisition of Allders International Duty Free and Island Companies, Grand Cayman 2000Strategic reorientation and birth of The Nuance Group 2002Nuance is acquired by Gruppo PAM SpA and Stefanel SpA Chapter 4: REVIEW OF LITERATURE Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. Visual merchandising helps in the following Educates the customers about the products and services offered creatively and effectively. ?Enables a successful selling process, from browsing to buying. ?Establishes a creative medium to present merchandise in a lifelike 3-D environment, thus creating a strong impact and recall value. ?Sets the context of the merchandise. ?Establishes the linkage between fashions, product design and marketing by keeping the focus on the product. ?Draws the attention of the customers and help them match their needs with the visually merchandised product. Visual merchandising includes Location of Store
Location will suggest the market level of a business. Whether it is on a mainstreet, laneway, arcade or shopping mall, location will strengthen the success of a store. It is a known fact that corner sites are the most valuable location, as it will give one the opportunity to capture different flows of traffic. Store Design Store design requires in-depth knowledge of the product mix and what a store needs to communicate. This includes access, customer and sales staff-friendly fixturing. Customers notice and appreciate small details. Height of counters and efficiency of counter space is also a key factor. Streets and Signs
Start from the Street Level: From the signage to the smallest item in the window ??? the shopfront should be considered to be a tactical marketing method with the same branding ability as any advertising campaign. Signage: Signage should be clear, bold and reflect the point of difference of a business. If one is a florist, then some large, colourful 3D cut outs of daisies could form part of his signage. A cafe could be highlighted with a coffee-cup silhouette that may be back-lit for after dark advertising. Signage is a direct indication of the image. Window Displays Windows are usually the first point of communication with the customer.
Good window displays will enhance communication of the product, brand and image. Equally the window can communicate a viewpoint or trigger an emotional response, giving the customer a reason to enter the store. Stores only have a few seconds to get the customer’s attention The Entrance The entrance to store is extremely important, as it is the access to the store and merchandise. The pavement area in front of the store and entry should always be kept clean and uncluttered. Decorative tile work or inlaid signage on the floor of the entrance could reflect the image of the store or simply add character. In store Merchandising
Floor Layout/Traffic Flow: A well-planned floor layout will effectively maximise the retail space for greater return. The careful arrangement of fixtures and display racks form and influence the traffic flow. The traffic flow is the ‘intended’ path of navigation for customers to access all areas of the store ??? paying closer attention to promotional, in-season or slow-moving stock. A few points to consider when determining traffic flow: ?Easy access (wheelchairs, prams etc. ). ?Visible aisle-ways. ?Suitable aisle patterns. ?Register point/s. ?Display points (their position, to highlight departments etc. . ?Fixture configuration (to move customers). Also one should be aware of where the “Dead Spots” and “Prime Positions” are in the store. Dead Spots: ?Not clearly visual. ?Odd corners. ?Left/right of entrance when narrow. ?Reverse side of racks (facing away from the entrance). ? Behind columns. ?No clear line/bad lighting. ?Bottom shelves. Prime Positions: ?Clearly visible. ?Near the front. ?Cash desks. ?Main aisle. ?Eye level. ?End of gondolas (facing entrance of store). ?Where the line of vision meets the wall. The traffic flow is driven by the type of stock in the store.
In most businesses, stock can be divided into these five categories: Seasonal Merchandise: ?Summer: swimwear, special events: Christmas, Easter etc. ?Seasonal merchandise has a planned, limited floor life from one week to three months. ?Should be at the front of the store. Best Sellers: ?Customers will go anywhere in the store for it (something the store is ‘famous’ for, destination product etc. ). ?Creates traffic flow. ?Should be merchandised in the most prominent position. Basic Stock: ?”Bread and Butter” lines. ?They represent a large part of one’s business. ?Must always be in stock. ?Generates repeat business. Should be placed towards the back. High Profit Lines: ?Usually carry a higher % markup and generate few markdowns. ?Not always a ‘best seller’. ?Forms part of the ‘product/profit mix’ ??? a blend of high and low profit merchandise. ?Should be placed in a prominent position. Impulse Merchandise: ?Used to generate ‘add-on’ sales. ?Located in eye-catching positions: – at the register point/s. – near the related stock (e. g. napkin rings near napkins). – end of aisle ways. Arouse Interest: In display, the observer’s mental process is directed systematically toward the target. For the most part, passers by approach windows without purpose.
Attention is gained by something positive, some striking point that we will term the focus of the display. This focus may be created by lighting, movement, and colour, or the merchandise itself. From there, the eye of the observer will move in the desired direction through the display by use of devices such as arrows – subtle or definite – that lead to the saleable merchandise. Observation should be guided along lines easy to follow; from decoration, to merchandise, to show card, and finally, to the price tag. Quality effects are to be used and make every attempt to create a favourable reaction in the mind of the customer.
Create Desire: The customer must be made to want the product; this desire can be aroused in the following ways: ? Demonstrate the qualities and benefits of the product. ?Demonstrate the use of the product. ?Present the product in such a way as to increase the possibility of inducing a sale. It is not sufficient just to please the observer; the objective is to sell the merchandise. Ensure Front and Back Sight Lines: Customers should be able to see clearly to the back of the store in order to determine whether browsing longer is worth their time.
A centre aisle, strategic lighting, alternate floor covering, further displays all can help “pull” the customer through the store. Take Advantage of your Highest Profile Location: As shoppers move from the front of the store, most in fact walk in 6 to 10 paces before they stop to look around. They then move to the left at a 45-degree angle, unless the counter is to the left, in which case they will walk to the right. The store’s most exciting and best-selling merchandise should be displayed in these positions. Important rule: eye level is buy level, so it should be ensured that merchandise is at an accessible height for the customer to reach.
Direct and Redirect Common Customer Traffic Patterns: Shoppers in addition to walking towards the left, also quite typically walk down one side, across the back and up the other side of the store. Colour, angles and motion in the store’s displays can attract the shopper’s peripheral vision and encourage them to zigzag through the store, pausing and “shopping” the selling floor. Wrap It All Up at the Cash Wrap Counter: The last chance for that extra purchase should be at the cash wrap counter. By this time, the customers should have seen most of the merchandise in the store.
One last impulse buy should be encouraged with a display positioned beside the counter. Merchandise Display Variety: Variety adds interest by creating contrast. It is necessary to attract and hold the viewers attention. Displaying one small item with several large items or a single round shape with numerous square shapes is another variety creating idea. Dominance: Attractive, effective displays have a centre of attention or dominance to which the customer’s eye is drawn and held. Without a dominant display feature, the customers’ eye will be attracted elsewhere and the display does not communicate its sales message effectively.
Dominance within a display allows the outlet to emphasize a single promotional message or focus on a direct purchase incentive. Grouping: A balanced display consists of small groupings within one large grouping. Each smaller group formulates the depth (as explained below) within the display. A small area of space between each depth acts as a full stop. Giving the customer time to absorb the message. Each smaller group must overlap to form the main body of the group. Too much product within each group can cause a heavy/bulky appearance.
Display arrangement is placing merchandise into interesting and stimulating forms to ensure an effective and clear message is communicated to the customer. Special display merchandise is frequently presented in one of four definite arrangement patterns. Depth: Depth is the distance from the front of the window to the back of the window. It is important to give the display the right amount of depth. Consider the way we watch movies or look at a painting; we step or sit back from whatever we wish to see. The same applies to windows – to grasp the whole picture it must be set back from the window, not positioned right at the glass.
The rule of thumb is to start 3 quarters away from the glass then work forward. At the same time the display should be stepping down from the highest point. Remember not to push merchandise onto the glass. Step: Step arrangements lead the eye in a direct line; they begin at a low point on one side of a display area and progress directly to a higher point on the opposite side of that area. Typically step displays are constructed so that the base of each step increases in area; the larger base area is used for displaying accessory items, while the steps are used for feature merchandise.
Fan: A fan arrangement is spread up and out from a small base, like an inverted pyramid, thereby directing the viewer’s eyes upward and outward. Zigzag: This is a modified pyramid that zigzags its way to the apex of the display. No two display levels should be at the same height. This arrangement is less monotonous than the pyramid. Pyramid: One of the most commonly used principles in display grouping is the pyramid display. This is a triangular display of merchandise in vertical (stacked) or non-vertical (un-stacked) form. The pyramid begins at a large or broad base and progresses to an apex, or point, at the highest level.
When displaying different sized merchandise, larger items are positioned at the base, and the smaller items at the apex. This principle can be applied to almost anything from small cosmetic items (bottles, creams, lotions etc. ) to mannequins (e. g. tall one up the back and two seated mannequins on a box with accessories grouped into the display). Lighting A well-lit window provides a visual link into the store itself, highlighting the type of shop it is, the attitude, atmosphere and ethos of the business and not merely the goods on sale.
Intelligently controlled, the lighting assists enormously in the design of the window display, and by varying the power and type of illumination, the appearance of the window and the merchandise can be altered to a great extent. Lighting highlights the focus of display and creates the ambience required for a well dressed window. Chapter 5: RESEARCH METHODOLOGY In this visual merchandising project, I had to visit various retail outlets to study the Visual merchandising aspects and apply those concepts to the Nuance Group retail stores at BIAL. Some of the retail stores visited were ?
Louis Vuitton, Gucci, Salvatori Ferragamo, Dunhill, Burberry, Van Cleef, Apple, Zegna, Mont Blanc, Rolex, Omega, Tag, Estee Lauder at UB City ??? The Collection ? Cauvery Emporium at MG Road, Bangalore. ?Lalith Mahal, Mysore ?Jaganmohan Palace, Mysore ?Retail Stores in Forum Mall, Sigma Mall, Garuda Mall, etc. Samples of merchandising material were obtained from Cauvery emporium, Jaganmohan Palace and various other places. The store layout and the existing display arrangements of the Nuance stores at BIAL were anlaysed and the improvement areas were identified using the knowledge gained from the literature review and the retail store visits.
Chapter 6: DATA ANALYSIS AND RECOMMENDATIONS Nuance stores at BIAL retails premium, branded items. The stores are located in Arrival, Departure and at the main entrance of the airport. However, our objective was to analyse and make recommendations on the stores at the departure section only. The stores at the departure section have been classified into two categories viz, ? Duty Free Shops ?Duty paid shops The different stores/shops and the items displayed under the above categories is listed below Duty Free Shops Cross Word -Souvenirs, Books
Sound & Vision -Digital Camera, Handy cam, Ear Phones, Electric Razor, Pen drive, Music Systems, Play Stations Cocoon -Apparels, Bags, Jewelry LTC -Liquors, Tobacco, Cigarette, Cigars, Chocolate Cosmetics & Perfumes Duty Paid Shops Life Spirit -Souvenirs, Books, Magazines, Watches, Pens, Jewelry Lamoda -Bags, Apparels, Jewelry MIthaas -Tea bags, Sweets, chips Analysis of Nuance stores will be based on the structure elucidated in the literature review In this project we had to present the duty free as well as duty paid shops in a much more attracted and organized way.
Duty free shops have LTC section, Apparel & perfumes section, electronic & books section. Sound & vision:-Following points were observed in this shop ?Stock problem. ?Improper arrangements. ?Display problem. ?Same Brand material was arranged in different racks. ?Height of the racks as compared to the product is not comparable. ?Varieties of items are missing. ?Glass Cabins were mostly empty. ?Very few items were displayed in the glass cabin. ? This section seems to be too much empty. ?Improper stuffing of the bag. As far as display is concerned following observations were noted: ?
Top most shelves have big Sony play station with enough space left. ?Some small appliances can be kept in between so as to fill the gap ? All the big play station can be kept in one shelf. ?The height of the shelf is big enough for small appliances. ?The height and the size of the appliances should be compatible so that it should not look odd to the customer. ?The customer should not feel that there is some shortage of Stocks, ? Proper arrangements of product are necessary. Improper Arrangement: Suggestions: There was an empty space left where the cabin was kept.
Such type of revolving stands can be kept so as to make it enticing Basically the stock problem should be removed. Same brand material is kept in different shelves. The height of the shelf should always match the product type. The customer should never feel that there is any lack of stock. The customer should have more variety in the shop to buy the product. Some demos should be kept so that it is easier for the customer to visualize and feel the product. The arrangements inside the glass cabin seems to be imappropriate,there should be more of lighting as well as proper arrangement along with some demos inside.
Some of the tower for displaying stands can be kept for displaying demos These are some of the revolving glass stands on which demos of the camera & handicam can be shown. This would be more enticing for the customer to visualize the product and have a feel of it. The visualization of some of the latest brands can be kept in this sort of design. ?Stock problem should be removed ? Near to the cash counter some latest display of the items is necessary, along with some stands ? The counter should look busy. ?A cloth can be placed inside the glass cabin. On that small stands can be kept on which the Demo can be kept.
Some lightening effects would be more attractive. CROSSWORD: ?Improper arrangements ?Stock problem ?Too much magazine section ?The Gondolas have more travel section. ?The front big wooden structured base is looking too much empty. ?Varieties in books are lacking. SUGGESTIONS: SOME VARIETIES OF BOOKS WHICH CAN BE KEPT IN THE GONDOLA’S & RACKS ? Aladin,arabian night, amar chitra rath,champak ?Teen fiction,leadership,business management ?philosopy,religion,travelouge,horror,sports ?music,puzzles,computers,double magazine,india ?Asterik,architect,psycology ?science & fiction,humour,young reader romance,cinema,music WAVE DISPLAY: SOME SORT OF WAVE DISPLAY SHOULD BE KEPT SOME MORE DISPLAY FLOOR DESIGN AS WELL AS NEW RELEASES DISPLAY: SOME GONDOLA’S FOR BOOKS DISPLAY: SOME BOOKCASES FOR BETTER ARRANGEMENT: SOME OF THE BOOKS INTRODUCED: SOME SPECIAL TYPE OF GONDOLA’S FOR ARRANGEMENT OF BOOKS & MAGAZINE: CIGARATTES, LIQUORS, TOBACCO SECTION: This Section is one of the best shops in nuance group in duty free section. Many brands are kept with a very nice arrangement and properly visualized. The wall racks are displayed very nicely.
The entire product in the wall racks are arranged systematically. Stock problem doesn’t seem to be any sort of problem. Sometimes the arrangement becomes zig zags which look awkward. The gondolas are very nice with different designs & display. Even the style of keeping the cigarettes is very good; the signage of the entire product is very nice in the whole shop. For all the tobacco & cigarette product there is a visualize which makes the customer feel about the product. Sometimes the arrangement looks inappropriate when there is lack of stock. The liquors section is very nice and the gondolas are also very good.
The whole shops seem to be busy full of stock and enticing displays. Even the walls are also full of displays, most of the part of the wall is fully covered & the wall doesn’t seem to be empty or lack of stock at all. Different products have different gondolas. Some sorts of promotion were done for Johnnie walker McLaren car was displayed as a sort of promotions. However it was removed after some two weeks and a big circular gondola was kept surrounded by other gondolas. However the chocolate section is totally different. There is lack of stock problem. Variety in chocolates are lacking, even the rrangement is not in a systematic manner. The simple chocolates were kept besides the liquors chocolates, so the customer was getting confused whether those are liquors chocolate or simple chocolate. Some sort of arrangements: However the counter should doesn’t look busy at all. Following things were observed. ?The counter should have display stands of some popular brands. ?It should be designed in a more proper way so as to look more enticing. ?Some special product should be kept only at the counter to which the customer gets enticed. ?The white wooden structure should be of some dark color. Some display of the liquids should be more prominent on the counter. ?The counter should not look empty to the customer. Duty paid shops: Life spirit Magazine section: ?The gondolas on which magazine section is kept looks very odd. ?For special type of magazine some special gondolas, stands should be kept. ?The magazines are not arranged properly. ? Magazines are not distinguished. ?The arrangement seems to be in a awkward manner. ?The shelves look empty. ?All magazines are mingled up. ?The wall racks seems to have magazines kept in a very awkward manner. ?Some magazines seem as if they are simply thrown and kept. The wall racks are empty. ?Some of the racks have only one magazine in it. ?Improper stuffing of the magazines at counter. ?Difficult for the customer to identify the variety in magazine. Suggestions: ?The customer should not feel that there is some shortage of stocks ? A proper arrangement of product is necessary. ?Magazine should be arranged so that It could be easily distinguish by the customer. ?The magazines at the wall racks should be kept systematically. Some of the displaying demos: Greeting card display BOOK SECTION: ?Stock problem ?Improper arrangement ?Signage are not visible Some signage are empty and some are written with marker ?Books seems to be torn and untidy ?Arrangement seems to be in a zigzag manner. ?Same book is kept in different racks. the counter should be of some dark color rather than being white in color. It should have display of some latest magazines, as well well books. The counter should look busy as well as structured properly. Last moment shopping by the customer is one of the mantra to increase the sales of the items in the shops, Some stands can be displayed which can have the latest released books along with some famous books. Watch section: This section has proper visualization with proper color, lights ? The watches kept inside the glass cabin are arranged nicely ? Some of the watches are kept very interior in the wall rack cabin. ?So it’s difficult for the customer to look at those watch. ?Even price tags are mixed very badly in wall rack cabin, There is no one to guide the custome, Overall this section is more enticing and spontaneous. Clothes section: ?Stock problem ?Such type of gondolas should look more busy ?T-shirts are not arranged properly. ?The length of the wall racks is not compatible to the number of T-shirts kept. Some of the gondolas are not a proper base for arranging jeans. ?Wall racks will be better for arranging the jeans ?T-Shirts seem to be old. ?They are not ironed properly. ?Wrinkles are there on the T-shirts. ?This wooden structure is not suitable for T-shirts . ?The jeans seem to be old. ?Variety and colors are missing in the jeans. ?Customer doesn’t have enough choice to select. ?Only one stands for Tie section. ?No enough variety which can motivate the customer to buy the product. The jewelry section is fine. Some racks have stock problem, infinity section has nice visualization.
Glass cabins have proper visualization; the arrangements seem to be very nice with proper lighting & gondolas. However in jewelery section there is ot enough varieties in terms of keeping the jewels. Especially the Carbon section, there is enough lack of stock. Even the wall racks are still empty. The racks should be arranged according to the stock position of the jewels. White light has been illuminated for it sort of display. There should be some sort cream or yellow light display . white light will be fine for some dark display. SUGGESTIONS: Some of different arrangements were suggested to display the jewels.
Some of them are wave display, earing tray, hand display, face display, walldisplay. MIthaas ?There are around 10 to 15 categories of sweets and snacks only. There is lack of variety and hence the display appears monotonous. ?More varieties of chocolates sweets would increase the customer interest. ?The tea bags, sweets and other items present can be differentiated in a better way. ?The space allocated for sweets & snacks etc. appear to be very huge making the store appear empty and the display monotonous. By partitioning the store, the additional space can be allocated to other sections which are in need of space for example “souvenirs”.
CHAPTER 7: SWOT ANALYSIS: STRENGTH: ???Nuance group, vast retail expertise-for 90 years experience in retail marketing. ???Extensive distribution network-operations in five continents active in all sales channels-in flights… ???World’s top airport retailers and has won many awards. WEAKNESS ???IT established recently in India and hence the processes are not perfect. ???The product portfolio is not the best since it has newly entered into India. ???Sales staff not trained well. OPPORTUNITY: ???Air travel in India is projected to grow at a rapid pace especially in metros like Bangalore,Hyderabad,Chennai. tc ???Airport retail industry in India is on the threshold of growth. ???Nuance group is the only major player in airport retail in India. THREATS: oSince airport retail is in the beginning of the growth stage, competitors would find this place attractive. oGovernment regulation at airports act as constraints for the grow Chapter 8: CONCLUSION By implementing the recommendations made, the customers would find the display attractive enough and be enticed to purchase the products by creating an interest and the desire to acquire the product. Thus a good display would translate into high sales for the store.