Visual Merchandizing & Brand Communication

COMPANY PROJECT STUDY REPORT:

FASHION GLOBAL RETAIL PRIVATE

LIMITED.

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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Visual Merchandizing & Brand Communication

CERTIFICATE OF APPROVAL

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,
student of “SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES”
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

ACKNOWLEDGEMENT

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
environment.

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 course
of training.

Sincerely,

Nimit Mathur.

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Visual Merchandizing & Brand Communication

Content

Executive Summary………………………………………………5

Company profile………………………………………………….6

Objective & Methodology………………………………………..8

Observations……………………………………….......................9

Recommendation

• Visual Merchandizing…………………………………….10
• New VM for the Store……………………………………13
• Brand Communication……………………………………19

Retail Trends in India……………………………………………22

Bibliography……………………………………………………..26

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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
practices.

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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Visual Merchandizing & Brand Communication

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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Visual Merchandizing & Brand Communication

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, futurebazaar.com.

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

Objective

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

brand communication for the LootMart store.

Methodology

Step 1 – Study LootMart’s 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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Observations:

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 with

the USP being “Selling big brands at amazingly low prices”.
• At present they had 18 stores across various cities all over India and
were opening more at a rapid pace.
• The in-mall and in-store display and communication was very dull
and 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 and
lacked an attractive and appealing look.
• The store was unorganized and everything seems to be just “stocked”
but not “presented” to the customer.
• Brands available, sizes, different offers/schemes were not highlighted
properly.
• Though we had a colour theme around which the store was done but
it still lacked a sort of standardization.
• We had the best of brands available with amazing merchandize but I
guess 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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Visual Merchandizing & Brand Communication

Recommendations

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
experimenting.

Lighting

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

• Use colour corrected bulbs. Improper bulbs make merchandise look
grey and shabby.
• We can make use of spot lights, preferably halogen, to highlight key
selling areas.
• Make the front of the store "glow" with light. Lootmart needs to be
noticed 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 work

place 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 for
LootMart has incorporated that.
• Keep displays simple. Don’t 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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Visual Merchandizing & Brand Communication

Signage

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". It’s usually much more
powerful.

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Visual Merchandizing & Brand Communication

New VM for the LootMart Store.

Wall

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Visual Merchandizing & Brand Communication

Danglers

Hanging Pointer

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Visual Merchandizing & Brand Communication

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

Façade

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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 securing
greater 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.

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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 individualized

communications to meet the needs of your audience.
• Depending upon what stage of Product Life Cycle our LootMart store
is going through we should decide upon the medium of
communication.
• 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 them

more compelling.

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Visual Merchandizing & Brand Communication

• Return to your media assumptions and determine if you’re reaching

your targets.
• Return to your budgets and determine if you’ve allocated them as
effectively 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
urbanization.

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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 and
hubs by Indian corporates. Outsourced logistics service providers are also
emerging – McDonald’s working with Radhakrishna Foodland is a case in
point.

Is retail space adequate in India?

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Visual Merchandizing & Brand Communication

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
formats.

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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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Bibliography
1. www.pantaloon.com
2. www.google.com

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