Dissertation Project

DISSERTATION PROJECT

“Visual Merchandising Manual For

Super Markets”

Submitted by:

Submitted to:
 Declaration

I, -------------, hereby declare that this project “Visual Merchandising Manual for

Super Markets” is my legitimate work. The project is conducted taking into

consideration the major supermarkets i.e. Food Bazaar, Apna bazaar, Food division
of hypermarkets like Spencer’s, and Big Bazaar regarding the display and layouts,
and doing best practice sharing to make a ideal manual with display guidelines for
existing an upcoming supermarkets.
 Acknowledgement

I wish to acknowledge my gratitude to all those who assisted and advised me during
the Project work, without their guidance and support and time, the project would not
have been completed.

I would like to thank -----------------and the mentor for this project, and Mr. Nagendra
Pratap Singh (North Zone, Head Visual Merchandising) for all the efforts and
cooperation to make me understand the subject and to learn difficulties and
pathways to solve them.

I also wish to acknowledge the following for their support.

 Mrs. Kalyani, Librarian, Pearl Academy of Fashion

 Mrs. Raman Jeet Kaur, visual merchandiser for EDM
 Miss Tripti, Visual Merchandiser Pyramid Retail
 Mr. Atul Soin, Business development manger Subhiksha.
 Mr. Vijay Yadaav, Store Manager Food Bazaar.
 TABLE OF CONTENTS
CONTENTS PAGE No
Executive summary 5
Chapter 1 -Market Over View 7
Retail industry 8
Indian retail 11
Food retail 14
Chapter 2- Literature Review 17
Super market 18
Visual merchandising 19
Chapter 3 -Project Definition 20
Problem identification 21
Project title 21
Statement of objectives 21
Scope of the project 22
Chapter 4 -V M in Supermarkets 23
VM in supermarkets 24
Uses of visual merchandising 25
Chapter 5- Ideal Display Strategies 25
Display strategies 26
Methods of display 32
Use of fixtures 34
General display 36
Signanges 37
Chapter 6- Lay Out And Elevations 41
Use of the manual 42
Product grouping 44
Personal care 45
Home care 50
Processed foods 55
Staples 63
Fruits and vegetables 68
Conclusion 71
Bibliography 72
 Executive summary

The Indian retail market is the on of the fastest growing markets today and with a

increasing size of organized food retail at 5956 crore in 2005 (KSA Technopak

statistics) the market is set to have a boom with increasing competition the

supermarkets and food divisions of hypermarkets need to stream line the visual

merchandising process, the project deals with setting a manual for the same.

PROJECT TITLE:

“Visual Merchandising Manual For Super Markets”

Statement Of Objectives:

The objective of the project include of the problem include:

 To benchmark the standards of display for super markets.

 To define the various ideal layouts and product groupings for various pre- defined

categories.

 To define the standards for display of various signage’s.

 To define and implement the various techniques of visual merchandising for display

according to a supermarket format.

Approach To The Problem

 Relevant data was collected over the Internet, books.

 Study of various super markets and hypermarkets was conducted for best practice

sharing including

 Observation of display format.

 Standards if any followed by the organization.

  Talking to the people concerned about the display.

 Creating a manual based on the above and Applying logical reasoning and space

considerations to the display

Scope Area

The scope of the project is limited to the display guidelines in supermarkets (food divisions

of hypermarkets) and not any other format

 This project is based on the product lines used by the most of the organized

supermarkets and exceptions may arise with different companies and formats.

 The scope of the project is limited to layouts, elevations, usage of fixtures and

signage’s and does not include the other aspects of visual merchandising like lights,

ambience, color etc.

Conclusion

Usage of visual merchandising principles can increase the sale of Indian food and

grocery reaitels and give them a considerable edge over their competition, all that’s

need to done is to

 Stick to the basics of visual merchandising

 Change as per the consumer needs

 Apply logical reasoning to the display

The elevations manual can be used as a guide to proper planning and lay out of the

supermarket for effective use and product grouping.

This kind of presentation provides a customer focused approach; systematic and

consistent display technique and visual appeal for the customer at the retail outlet.
This changes the feel and the look of the store and increases the convenience factor for

the customer in a supermarket.

 CHAPTER ONE
MARKET OVERVIEW
The Retail Industry

Introduction

Retailing is the final step in the distribution of merchandise - the last link in the Supply

Chain - connecting the bulk producers of commodities to the final consumers. Retailing

covers diverse products such as foot apparels, consumer goods, financial services and

leisure.

A retailer, typically, is someone who does not effect any significant change in the product

execs breaking the bulk. He/ She is also the final stock point that makes products or services

available to the consumer whenever require. Hence, the value proposition a retailer offers to

a consumer is easy availabilities of the desired product in the desired sizes at the desired

times.

In the developed countries, the retail industry has developed into a full-fledged industry

where more than three-fourths of the total retail trade is done by the organized sector. Huge

retail chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now

replaced the individual small stores. Large retail formats; with high quality ambiance and

courteous, and well-trained sales staff are regular features of these retailers.
Broadly the organized retail sector can be divided into two segments, In-Store Retailers,

who operate fixed point-of-sale locations, located and designed to attract a high volume of

walk-in customers, and the non-store retailers, who reach out to the customers at their homes

or offices.

Apart from using the Internet for communication (commonly called e-tailing), non-store

retailers did business by broadcasting of infomercials, broadcasting and publishing of direct-

response advertising publishing of traditional and electronic catalogues, door-to-door

solicitation and temporary displaying of merchandise (stalls).

Major formats of In-Store Retailing have been listed in Table given below:

Format Description The Value Proposition

Branded Stores Exclusive showrooms either owned Complete range available for

or franchised out by a a given brand, Certified

manufacturer. product quality.

Specialty Focus on a specific consumer need; Greater choice to the

Stores carry most of the brands available. consumer, comparison

between brands possible

Department Large stores having a wide variety One stop shop catering to

Stores of products, organized into different varied consumer needs.

departments, such as clothing,

house wares, furniture, appliances,

toys, etc.
Supermarkets Extremely large self-services retail One stop shop catering to

outlets. varied consumer needs.

Discount Stores offering discounts on the Low prices.
Stores retail price through selling high

volumes and reaping the economies

of scale.
Hyper-mart Larger than a Supermarket, Low prices, vast choice

sometimes with a warehouse available including services

appearance, generally located in as cafeterias.

quieter parts of the city

Convenience Small self-service formats located Convenient location and

Stores in crowded urban areas. extended operating hours.

Shopping An enclosure having different Variety of shops available

Malls formats of in-store retailers, all less close to each other.

than one roof.

The Indian Retail Sector

The Indian Retail Sector is at an inflexion point, with changing demographics driving

growth of organized retailing and driving growth in consumption.

With changing demographic and economic profile of the Indian population, It is believed

that India is expected to experience accelerated consumption over the next few years.

Further, that increase in consumer spending would be driven by nuclearisation of families,

increasing population of working women and new job opportunities in emerging service

sectors such as IT Enabled Services. With declining interest rates an average Indian is not

averse to taking loans. Not only are the demographic factors becoming more favorable but

also the growing media penetration is leading to a convergence of aspirations of various

classes of consumers.

A larger number of households are adding to the consuming class with growth in income

levels. The number of households with income of over Rs 45,000 per annum is expected to

grow from 58 million in 1999-2000 to 81 million by 2005-06 (source: The Marketing White

book 2003-04, brought out by Business world). Of this, 56% (44.8 million households) is

expected to be concentrated in Urban India. This large base of households with growing

disposable income is expected to drive demand for organized retail.

The changes in demographics are changing consumption pattern in the country. Central

Statistical Organization (CSO) estimated private final consumption of consumers in India at

about Rs.17, 600 billion in FY04. Of the total private consumption, retail sector accounted

for approximately 60% at Rs 8570 bn (source: Images Retail). Of this, food and beverages,
apparel and consumer durables are the top three categories of consumer spend and form

87% of the total retail sales in India.

Growth in organized retail

In sharp contrast to the global retail sector, retailing in India – though large in terms of size,

is highly fragmented and unorganised. With close to 12 million retail outlets India has the

largest retail density in the world. (Source: CII Mc Kinsey Report titled ‘Retailing in India,

the Emerging Revolution’)

However, most of these retail outlets belong to the unorganised sector. The inability of the

unorganised sector to offer a wide range of products along with artificially inflated costs due

to various factors have presented opportunities for growth in the organized retail sector.

Migration from unorganized to organized retail has been visible with economic development

in most economies. The Indian retail industry is evolving in line with changing customer

aspirations across product groups, with modern formats of retailing emerging. Organized

retail derives its advantages in generating operational efficiencies while simultaneously

catering to rising consumer aspirations. Size drives economies on procurement, and lowers

logistics and marketing costs while delivering better value to customers in terms of lower

price, better quality, greater selection, improved service and in-store ambience.

Drivers for retail transformation in India

A number of factors that drive transformation in retail – such as income growth, changing

demographic profiles and socio-economic environment – are already in place in India.

However, organized retail has to overcome significant challenges in terms of regulations and
infrastructural barriers in order to realize its full potential. Availability of quality retail space

has been one of the main constraints for development of organized formats in India. In the

past, negative yield spread on leased property and lack of bank funding due to unorganized

property market resulted in a dearth of quality retail space in the country. The spread

between yield on property and its financing cost has turned positive with the fall in interest

rates. Attractive yields on investments have resulted in sharp increase in property

development.

Consumerism and brand proliferation has been another enabler for organized retailing in

India. Most of the world’s leading brands are now present in India.

Value Retailing

These stores primarily retail primarily food and household items. These are primarily large

stores with volume based discounted prices. The share of expenditure on food and grocery in

a consumer’s wallet, availability of a vide variety of products at a reasonable price are the

main factors which has contributed to the growth of this segment. The large chains of

supermarkets and hypermarkets (namely Big Bazaar, Star India, Nilgiris, Food world) have

presence in metros and mini metros.

Lifestyle Retailing

These stores retail primarily non-food items such as apparel, footwear, accessories,

cosmetics and Household products. They stock multiple brands across product categories,

though some of them focus on their in house store label (on the lines of Marks & Spencer’s
and St. Michael). These stores are found on high streets and as Anchor Tenants of shopping

malls.

Several local department store chains have opened shop in India in the past five years. The

convenience Factor coupled with the inspirational perception of shopping in a department

store has contributed to their growth. The larger chains of department stores (Namely

Pantaloons’, Shoppers’ Stop, Westside, and Lifestyle) have presence in the metros and mini

metros.

Food Retail In India

Organized retailing in the last decade has emerged as the sunrise industry in India.

This is particularly important for the agricultural sector. Organized retailing will deliver an

efficient farm-to fridge supply chain wherein, the farmers will get a better return and the

consumers will get products at a reasonable price. This sector due to its tremendous growth

opportunities has attracted many investors giving rise to many food retail chains. The live

examples that can be quoted here are Food Bazaar, Food World, Nilgris, Trinethra those

who have already entered into the organized food retailing and reaping the benefits from it.

Food retailing-Indian scenario

Retailing is on the cusp of a transformation. A combination of increased consumer

Demand, improved sourcing options and larger availability of real estate are creating the

Foundation for a significant growth in the organized retail sector. The concept of retailing

Though not new, but organized food retailing is a new concept. Retailing in India is still in

Nascent stage. Most retail firms are companies from other industries that are now entering

The retail sector on account of its amazing market potential. With more than one billion
People, the third largest economy in Asia is on a track to overtake China, as the most

populous in the world by 2050. India is a young country, with 24 percent of the population

within the age group of 20-34. It’s also becoming a richer country: GDP per capita is

expected to rise almost 4 percent per annum for the next 10 years, indicating significant

increase in the purchasing power. According AT Kearney report, by 2010, 49 percent of

households are expected to be classified as middle-to-high income group.

Consumer spending will pick up even more as these more affluent members of the middle

class move in to urban areas and clamor for pricey products will further increase.

India’s retail industry, both food and non-food, is the second largest employer (after

agriculture) and the second largest untapped market (after China). Organized retailing in

India constitutes only around 2 percent of the country’s overall retailing business.

According to a study on the food and grocery retail market by KSA Technopark, the

country’s overall retail sales now account for 44% of it’s GDP.Food retail sales make up for

close to 63 percent of total retail sales. In absolute terms, food retail sales have grown from

Rs 3, 81,000 Crore in 1996, to Rs 7,03,900 Crore in 2001.Besides, the food and grocery

sector now accounts for 14 percent of total organized retail, after clothing and textiles (at 36

percent) and watches and jewellery (at 17 percent). Food and grocery retail offers the

biggest opportunity for growth, provided levels of investment are high, says

KSA Study. By the end of 2005, India will be the most attractive destination for retailers,

according to A.T.Kearney’s Global Retail Development Index (GRDI).

”Organized food and grocery retailing in India has long, long way to go. The sector has not

seen too many big entrants. The industry requires a lot more players. What it also requires is

fundamental investments. That is still not happening yet. Organized food and grocery

retailing chains going national requires significant investments. There is a great potential to

increase the value of trade in the food and agricultural sector in the coming years. Retailing

within this sector is not just about the front end, but involves complex supply chain and

logistics well.” Quoted by A.T.Kearney’s Arvind Singhal.

Source: KSA TECHNOPAK RETAIL VISION

 CHAPTER 2
LITERATURE REVIEW
DEFINITIONS
Before the study we need to define and clear the terms that will be used in the project. Here

are a few definitions on which the study is based so a clear understanding of these terms is a

must

Super Markets

According to Mr. Phillip Kotler

“A super market is relatively large, low cost, low margin high-

volume, self-service, operations designed to serve total needs for

food, laundry and household products.”

How ever a more elaborate definition could be

A supermarket is a store that sells a wide variety of goods including food and alcohol (where

permitted), medicine, clothes, and other household products that are consumed regularly. It

is often part of a chain that owns or controls (sometimes by franchise) other supermarkets

located in the same or other towns; this increases the opportunities for economies of scale.

The chains themselves are often supplied from the distribution centers of a larger business
Visual Merchandising

“Visual merchandising is the science and art of effective

presentation of products within an available space to invite the

attention of the customer that tempts him/her to make a purchase”

Visual merchandising has been around since the dawn of civilization, when people started

selling merchandise on a barter system of exchange.

Need For Visual Merchandising

 The Retail mantra is “We must show in order to sell”.

 Through the window, the store is selling the image and the uniqueness

 Innovative and creative display develops competitive advantage

 Proper window display and interiors create a good consumer-friendly ambience

 Enough walk-in space is taken care of

This kind of presentation provides a customer focused approach; systematic and consistent

display technique and visual appeal for the customer at the retail outlet.

This changes the feel and the look of the store and increases the convenience factor for the

customer in a supermarket.
 CHAPTER 3
PROJECT DEFINITION
Problem identification

The visual merchandising aspect of the super market retail has a very little contribution and

is does not have benchmark standards of display, organized food retail being at the nascent

stage of its development there have been almost no efforts to benchmark a visual

merchandising format for the super markets (also food division of hypermarkets).

Super markets have a variety of goods which need to be treated differently including

perishables and due to space limitations and high expected per square feet productivity there

need to be set standards for display for super markets

PROJECT TITLE:

“Visual Merchandising Manual for Super Markets”

Statement of Objectives:

The objective of the project include of the problem include:

 To benchmark the standards of display for super markets.

 To define the various ideal layouts and product groupings for various pre- defined

categories.

 To define the standards for display of various signage’s.

 To define and implement the various techniques of visual merchandising for display

according to a supermarket format.

Approach to the problem

 Relevant data was collected over the Internet, books.

 Study of various super markets and hypermarkets was conducted for best practice

sharing including

 Observation of display format.

 Standards if any followed by the organization.

 Talking to the people concerned about the display.

 Creating a manual based on the above and Applying logical reasoning and space

considerations to the display

Scope of The Project

The project though deals with visual merchandising aspects of the trade and the solutions

mentioned might be applied to formats other than super markets also, how ever has a scope

area.

Scope Area

The scope of the project is limited to the display guidelines in supermarkets (food divisions

of hypermarkets) and not any other format

 This project is based on the product lines used by the most of the organized

supermarkets and exceptions may arise with different companies and formats.

 The scope of the project is limited to layouts, elevations, usage of fixtures and

signage’s and does not include the other aspects of visual merchandising like lights,

ambience, color etc.

 CHAPTER 4
VISUAL MERCHANDISING
IN SUPERMARKETS
Visual Merchandising In Super Markets

Super markets deal with the daily needs of the consumers and now there is intense

competition not only between the organized and unorganized sector, but with in the

organized sector too. With new super markets emerging almost every now and then, each

and every super market needs to maintain its identity and visual merchandising plays an

important part in it.

Super markets, how are they different??

Super markets are different from other retail formats the points of difference could be

 They deal with perishables and FMCG products

 The expected sales per feet is extremely high due to space considerations

 The shelf life of a product is considerably low

 The turn over needs to be high hence the movement of the product off the shelf

should be quick

 They have a higher footfall and lesser space.

Due to these points of difference there is all the more a need for visual merchandising in

these stores
USES OF VISUAL MERCHANDISING

Visual merchandising helps the store in the following ways

 Optimization Of Space

Super markets have a lot of space considerations i.e. would want to display the maximum

items possible in the limited area, hence Proper lay out planning and execution can give a

better shop fill rate i.e. an optimum quantity of merchandise could be stored per sq feet.

 Merchandise Presentation

Since there are a lot of product categories and product lines in a super market finding a

specific customer need could be a difficult task how ever Proper signage’s and product

placement will help serve the customer needs better

 Sales

Visual merchandising could help faster sales; since there are a lot of perishables sold and for

any super market to be a success the basic is a higher stock turn better presentation of

merchandise will for sure help the sales to improve

 Clarity Of Stock

If the stock is kept in a proper manner as directed the stock position could be gauged

0visually and would help managing the stock.

 Customer Experience

A better looking and a well-managed store will always appeal to the customer and will help

improve the customer experience and loyalty

 CHAPTER 5
IDEAL DISPLAY
STRATEGIES
DISPLAY STRATEGIES

Visual Merchandising makes three important contributions to a retail store. It increases

sales. It improves profitability. And it controls costs. It increases sales by making a store

appealing to customers. It improves profitability by generating more margin dollars. And it

controls costs by improving employee and sales floor productivity. In doing so, visual

merchandising touches almost every aspect of retail management and operations.

Appealing To Customers

The first aspect to Visual Merchandising is how it can be used to attract customers, make

shopping easier for them and give them reasons to come back often and spend more money.
The strategy should be based on the understanding that many consumers no longer consider

shopping fun. A retailer’s challenge is to know the fundamentals of customer satisfaction

and use them to take the hassle out of shopping.

 Customers want to save money and time;

 They want information to make intelligent decisions;

 They want one-stop shopping;

 They want shopping to be easy and fun;

 And they want special services.

Repeat shopping is critical. Customers who are most likely to come back are those who

made a recent purchase, who buys frequently and who spend the most money. With all of

the competition for sales, prime opportunities for growth come from bringing existing

Customers back more often and giving them reasons to buy more each time.

Improving Profitability

There’s more to merchandising than stacking products on the sales floor. “VISUAL

Merchandising”. With skilled use of product selection, display and pricing, can suggest to

consumers that they can, indeed, find good prices in independent stores. It can also help

retailers protect operating margins by increasing item sales If, by simply moving a product

from a shelf location to a promotional location, sales double or triple, retailers have the

flexibility to make strategic pricing decisions. Which is a part of Strategy For Super Markets

.
Controlling Costs

One way retail companies can control costs is by improving the productivity of sales floors

and employees. Retail productivity improves when the same sales-floor square footage and

the same number of employees generate more sales. There are several measurements of

retail productivity - average transaction, sales per square foot, gross margin per square foot,

sales per employee, gross margin per employee,

Merchandising should complement the efforts of salespeople by organizing the store,

suggesting project ideas, reminding customers of forgotten items, promoting special buys

and seasonal items and providing self-shopping information while allowing employees to

give full attention to customers who need their help. These same visual merchandising

techniques can increase sales and margins per square foot..

Following Are The Various Aspects Of Visual Merchandising That Should Be Exploited To

The Fullest For Higher Productivity

Interior Signage’s

Signage’s is a key to make shopping easier for customers and to giving them information to

make intelligent buying decisions. Signs keep customers in store longer, move them from

department to department and suggest more items to purchase. In addition to department and

aisle signs, shelf and product signs can convey shopping information. Signs should tell

price, savings, features, benefits and uses of products. They can create urgency by

identifying items as one-time-only bargains. They should be neat, easily read, eye catching
and informative. Department signs should be visible from the front of the store to help time-

pressured customers quickly find what they are looking for. Informational signs should

describe the product, state its price, identify advertised items, flag new items, etc. In addition

to giving customers instantaneous information, item/price signs help establish a value price

image.

Consumers want information at the point of sale that will tell them about the product and

will suggest ideas to them. Signage’s can be especially effective with related item or cross

merchandising.

Use Of Space

Visual Merchandising should organize products to make the most productive use of space.

This involves setting shelves at heights that will clear merchandise but not waste space,

adjusting hooks and bins to the size of the item and fitting long and short handled items

together. Retailers advertise products they think customers want. That same idea should

govern what items are put in prime display space in the store. Keep the best display Area for

high-demand, fast-moving products. Putting slow-movers in prime space won’t make them

sell faster; it will only suggest to customers that the merchandise they want may not be

available

Use Of Color

Masses of color attract customer attention, whether the color is in the packaging or in the

product itself. Try to take advantage of color in organizing displays. Surrounding color -

walls, fixtures, etc. - should compliment the merchandise; it should not distract customer
Attention away from products and packages.

Use Of Lighting

Lighting does more than let customers find their way through the store. It sets a mood and

creates a shopping environment. Bright, well-lighted stores are more appealing

Than dark, poorly lighted ones. Lighting can draw attention to feature departments

And highlight special areas of the store. It can enhance the color and appearance of

merchandise. For maximum effect, lighting should be replaced on a regular basis and before

bulbs burn out. Fixtures should be cleaned every time lighting is changed.

Mass Displays

Mass displays create a store’s price image. In the consumer’s mind, high volume equals low

price. Mass displays put a high volume of merchandise in front of the customer, with its

accompanying message of economy and value pricing. bins, , movable racks, stack displays

and special promotional areas are the vehicles for effective mass displays. Placing low-

priced, loss-leader items in the front of the store add to a low-price image. The first items

customers see are the bargains. Products that are good candidates for mass display include,

stackable items, everyday products.

Demonstration Area

Customers like organized stores; they like to be able to find merchandise quickly.

Departmentalization does that. Keeping items in their proper places should be part of every
employee’s job description. Any time an employee sees a product in the wrong place, pick it

up and put it back where it belongs.

Methods Of Display

The following are the methods of displays that shall be used

Impulse Displays

Techniques include feature bins, movable racks and stack displays. They can move massive

amounts of advertised and promoted merchandise as well as special one-time buys and

closeouts. They are most effective in high-traffic areas.

Like Items

Like items are similar products with the same end use. Displaying these items together lets

customers see the full range of products and make the best purchase decision.

Related Items

Related items are products that can be used together. Customers tend to buy additional

items when they see them next to each other.

Vertical vs. Horizontal Merchandising

Vertical merchandising displays items in vertical rows by color, type, manufacturer or end

use. The most popular items should be at eye level. Vertical merchandising lets customers

see the maximum amount of merchandise at one time. If sizes are involved, the largest items

should go on the lower shelves. In the case of color, mass products of the same color

together. Occasions when horizontal merchandising can be effective include products that

come in several types and each type in several sizes. In those cases, the solution is to

combine vertical and horizontal – sizes stocked vertically, types horizontally.

Cross-Aisle Merchandising

Displaying related merchandise on facing shelves.

Cross Merchandising

Displaying products together that are used together; is especially effective for related items

normally stocked in different departments.

Eye-Level Merchandising

Displaying the fastest selling and most profitable merchandise from waist to eye level.

Facing

The number of similar products exposed on a shelf; the number of facings relates to sales

demand. And promotes brand appeal.

Fronting

Pulling merchandise to the front of the shelf, hook or bin to make it look full

Grouping

Organizing merchandise in logical groups such as color or related uses.

First In First Out

it is a technique used for merchandise refilling where the products shall be moved in way

that the product that has been kept first shall be moved out first to ensure timely movement

of the product.
Use Of Fixtures

In any super market it very important to use the fixtures properly to ensure optimization of

space; these fixtures can be racks, gondolas, bins etc.

While taking the fixtures the supermarket shall keep in mind

 The layout shall be made first and then fixtures to be bought

 Fixtures shall be with adjustable racks to ensure that shelf space can be increased or

decreased as per the requirement and product size

 Material used shall be less expensive but stable and should be able to take weight

 The height of the fixtures should depend on the sections, e.g. for products like

personal care the height shall be a maximum of 5 feet so that the products can be

easily seen and picked up

 In other cases where the top shelf could be used for display and storage the height

can go up to seven feet.

 There shall be enough space between gondolas for at least two people to pass in with

enough breathing space

Effective Use of Shelf Space

Do Not Waste Shelf Space

Super markets shall not waste space, as it is the most important aspect of value retailer. A

retailer shall not

 Overstocks one item while under stocking another.

 Fails to refill bins or shelves when the basic stock is reduced.

 Stocks the same items in several places.

 Does not relate shelf space to customer-demand fluctuations.

Shelf Configuration

Although the shelf profile is only one element in effective display, it is an important one.

The shelves shall have

 Eye Level Profitability—Display the most profitable items between hand and

eye level, for this represents the best selling height on any display.

 Show As Much As Possible—Displaying as much merchandise on the shelf as

possible will avoid backroom stock and will give customers an impression that you

can fulfill all of their product needs.

 Adjust Heights -Adjust the shelves for the merchandise they display. If shelves

are too far apart vertically, you waste space and the sales floor looks under stocked.

If shelves are too close together or not set back properly, the shopper cannot see

merchandise on the lower shelves without bending over.

GENERAL DISPLAY

Use A Pyramid Profile

This is where the widest shelves are at the bottom. It lets the shopper see the most

merchandise. Shelves the same width, however, are best to mass display items the same size

and shape.

Don’t Hide the Merchandise

Never place shelves so close together that the top shelf hides binned or boxed merchandise

on the lower shelves. Shelves are for display-- not for storage. And no top shelf should ever

be wider than those below, except on a sidewall or gondola over six feet high where the

shelf is used more for storage than for display.

Slow Movers

Display slow-moving and low-priced items farthest from the customer’s reach. Always use

prime display space for high-demand, seasonal, impulse or promotional items.

Make Your Merchandise POP

Use point-of-purchase signs to call attention to hot items in each department.

Keep It Stocked And Fronted

Keeping displays neat and well stocked is one of the most effective “tricks” in visual

merchandising.
Use Of Signanges
Signage’s is key to making shopping easier for customers and to giving them information to

make intelligent buying decisions. Signs keep customers in store longer, move them from

department to department and suggest more items to purchase. In addition to department and

aisle signs, shelf and product signs can convey shopping information. Signs should tell

price, savings, features, benefits and uses of products. They should be neat, easily read, eye

catching and informative. Department signs should be visible from the front of the store to

help time-pressured customers quickly find what they are looking for. Informational signs

should describe the product, state its price, identify advertised items, flag new items, etc. In

addition to giving customers instantaneous information, item/price signs help establish a

value price image.

Consumers want information at the point of sale that will tell them about the product and

will suggest ideas to them. Signage’s can be especially be effective with related item or

cross merchandising.

SIGNAGE GUIDELINES

The signage that is used as part of in-store display and promotions are shelf and product

signs, which are covered in the project. These can be

 A3 Signage
 A4 Signage
 Shelf Talkers
A3 SIGNAGE
 CHAPTER 6
LAYOUT AND
ELEVATIONS
 Supermarkets
A supermarket is a store that sells a wide variety of goods including food and alcohol (where

permitted), and other household products that are consumed regularly. It is often part of a

chain that owns or controls (sometimes by franchise) other supermarkets located in the same

or other towns; this increases the opportunities for economies of scale. The chains

themselves are often supplied from the distribution centers of a larger business

How ever in India the size of super markets is relatively smaller so to have a better

business and a better stock turn they need to use the space efficiently.

Use Of The Manual

The elevations manual can be used as a guide to proper planning and lay out of the

supermarket for effective use and product grouping.

This kind of presentation provides a customer focused approach; systematic and

consistent display technique and visual appeal for the customer at the retail outlet.

This changes the feel and the look of the store and increases the convenience factor for

the customer in a supermarket.

On the basis of the use of the merchandise the various sections of a supermarket could be

 Personal care

 Home care

 Processed foods

 Staples and

 Fresh fruits and vegetables

The other categories may include alcohol, tobacco and other items like magazines or

stationary.
Product Grouping

All these sections are based on grouping like products which may have a similar use or can

act as alternatives for the customer and have various subgroups under them, so following

this hierarchy can help the customer reach a specific need that needs to be addressed without

asking any thing, the layout with the signage’s shall effectively communicate the placement

of like and related products.

The layouts and elevations shall be such that the sales staff could easily understand them. As

they are the ones who do the ultimate labor to practically implement these things on a daily

basis.

Even though there might be special needs for every section some techniques shall be

implemented to each and every section like?

 Fronting

 Facing

 First in first out

 Vertical brand presentations

 Eye level merchandising

PERSONAL CARE SECTION

PRODUCT GROUPING
Layout For Personal Care Section

In this section hair care and skin care demands the maximum space due to highest

consumption by all the users of any age or sex, since oral care and shaving are more

synonymous in terms of use by the Indian men they can be clubbed toghter and cosmetics

baby products and sanitary pads are usually a women’s affair they can be clubbed toghter

and hence can provide a shopper with an easy and comfortable shopping experience.

Also the sizing of oral care and shaving needs is more or less the same (like a toothpaste and

a shaving cream or gel) and similarly for baby products and sanitary pads (nappies and pads)

so it gives the store a more organized appeal.

Elevation Plan For Baby Products

 Vertical brand blocks are to be used for product display

 The lowest shelf can be used to display the bigger size as well as stack

The basic principles that should be used

 Fronting-the products shall be always fronted to make the shelf look full

 Facing the product branding on the front of the product should always be facing the

customer.

 This section needs to be essentially spick and spans since people are very careful of

what they are buying for their babies and even a hint of dust could affect customer

loyalty
Elevation Plan For Oral Care

Brand blocks can be built horizontally as well as vertically as almost all the products

are made by all companies, tooth paste due to its size and recurring buying needs to be

given the most space, tooth powders not a very common option though could be given

space based on their salability in the store.

Basics to be used are

Eye-Level Merchandising - Displaying the fastest selling and most profitable merchandise

from waist to eye level.

Facing –to face the merchandise towards the customer for brand appeal

Fronting - Pulling merchandise to the front of the shelf, hook or bin to make it look full

Grouping - Organizing merchandise in logical groups such as color or related uses.

Elevation Plan For Sanitary Pads

These are women oriented products and are grouped with baby products and hair care and

should be stacked properly.

Fronting - Pulling merchandise to the front of the shelf, hook or bin to make it look full

Grouping - Organizing merchandise in logical groups such as color or related uses.

First In First Out. To Refill

HOME CARE SECTION

Product Grouping

Home
Layout For Home Care Section

The grouping in this section is based on the need and buying behavior and identical use and

size of the products. Fabric cleaners and utensil cleaners are clubbed toghter as their

appearance and the end use is similar and they are generally bought toghter. Also the sizing

the products is more or less the same (e.g. nirma and vim bar or poly bags of detergents and

utensil cleaners) similarly insecticides and fresheners are of similar size (barring some

cases).
ELEVATION PLANS FOR HOME CARE

Elevation For Floor And Toilet Cleaners

 The floor and toilet cleaners are grouped together vertical brand blocks are built and

displaying similar size products of different brands can do horizontal merchandising

 The lowest shelf can be used to display the bigger size as well as stack

The basic principles that should be used

 Fronting-the products shall be always fronted to make the shelf look full

 Facing the product branding on the front of the product should always be facing the

customer.
Elevation For Furniture And Metal Care

 The furniture and metal cleaners as both toghter form the interiors of a household

 The lowest shelf can be used to display the bigger size as well as stack

The basic principles that should be used

 Fronting-the products shall be always fronted to make the shelf look full

 Facing the product branding on the front of the product should always be facing the

customer.
Elevation for Disposable Goods

The products of this section are grouped on the basis of nature .All The Tissues and rolls are

kept toghter and cross merchandising can be done, in this section.

PRODUCT GROUPING FOR PROCESSED FOODS
Lay Out Plan For Processed Foods – Ready To Eat

The lay out is very simple and is based on the use and size aspect, Namkeens and chips&

wafers are clubbed toghter due to their similarity in size and taste. Biscuits are a major part

of the Indian market due to high tea consumption hence they get the last shelf and the

maximum space. Since bakery products and canned foods are not really considered a

supermarket buy (as people like to buy fresh fruits and bakery products) they can be clubbed

due to space considerations.

Elevation Plan For Ready To Eat- Break Fast Cereals
Elevation Plan For Ready To Eat- Chips And Wafers

Chips and wafers are clubbed toghter as they are almost replaceable products, and the

Technique of like use can be used here. These are probably the fastest movers in the store

and the following techniques need to be implemented to ensure good display and quick

movement of the products off the shelf.

 Fronting-the products shall be always fronted to make the shelf look full

 Facing -the product branding on the front of the product should always be facing the

customer.

 Brand blocks shall be built vertically and similar sizes shall be displayed horizontally
Processed Foods -Ready To Cook Grouping

Due to space considerations , ready to cook health foods and additives shall be grouped

toghter also the products with in these sections are similar in size and packing so they will

give a more organized look to the store .

Lay Out Plan For Processed Foods -Ready To Cook

In this section the product grouping is primarily on the basis of their nature and use of the

product. Instant dishes and instant mixes are clubbed because of their pack size similarity

and usage. Soups and noodles are clubbed toghter as these products are considered to be of

the same origin (Chinese) and are complimentary products, pickles spreads and jams are

kept toghter due to the similarity in the pack sizing and usage of the materials as mean

extras.
Elevation Plans Ready To Cook -Chutney And Paste

Products are grouped on the basis of the usage i.e. can be used as additives for cooking or

cooked foods. These pastes are still not a very popular option in India as people prefer fresh

pastes and home made chutneys and may be a slow mover so we need to put the special

offers using wobblers in front. The products shall always be

 Fronted and customer facing

 Clean to give a fresh look

 First in First Out (FIFO) method of refilling of stock shall be used to ensure older

products are moved first

Elevation Plans Ready To Cook –Health Foods

All the above grouped products may not be ready to cook but they are grouped as they are

all classified into health products, since health drinks are the most sought after health

products using the principle.

LAY OUT PLAN FOR STAPLES

This lay out plan does not really need gondolas as the stacks an bins are kept on the floor

and have a very little height for the customer to easily peep In to the bins the usage of

weighing machines is a very important thing as most of these are sold loose and the

customer needs to know how much they are buying, also staff assistance shall be provided to

this section at all times since weighing and proper selling from this section needs a lot of

manpower. Also the trolleys shall be kept close to this section also so that customer can
easily put their purchase in the trolley and don’t have to go to the other end of the store and

they may get the time to change their mind.

ELEVATION FOR STAPLES

Floor Elevation For Loose Staples

The Bins shall stack the merchandise and the label of the merchandise and price shall be

very clearly mentioned on the signages. Also there shall be enough people to help the

customers weigh and bill the merchandise. The machines used shall be certified and the

display of weight shall be visible to the customer for satisfaction

Floor Elevation Plan Atta

The floor stack shall have trolleys close by so that its convenient for the customers, there

shall be enough people to help the customers at all times, the price signage’s shall be

clear and visible from a distance, also first in first out principle shall be used to ensure

all stock is moved out in time and old stock moves out first.
Floor Plan For Cooking Oil
ELEVATION PLAN SUGAR AND PULSES (PACKED)

Pulses and sugar can be kept toghter since their sizing is the similar and are packed in

packets of half Kg, one Kg, and two Kg respectively. The lowest rack could be kept for

stacking and the upper racks could display all the sizes, all the brands and the in-house brand

shall be kept toghter with prices clear to promote the sale of the in store brand.
Lay Out Plan For Fruits and Vegetables
Guidelines for the presentation of

Vegetables & Fruits

 To make the display attractive the product should be kept in the neat stacks

 The stock should be fresh and at the reach of the customers to feel that whether the

fruits and vegetables are fresh or not.

 Fruits and Vegetables of the same category and of the same color should be placed

together

 Merchandise should be rotated so that fresh merchandise comes on top.

 Pricing of the products should be clearly mentioned for each product.

 Vegetable peels, cartons and waste materials should d not be visible on the floor

 Sponge sheets should be used to line the base of the crates stocking fruits and

vegetables. This will ensure that even when there will be less stock the merchandise

would be visible at the top of the crate

Placement Of Fruits

Fruits, which are prone to be, spoil while handling should be placed within easy reach of the

salesperson as well as the customer.

Fruits which are big in size should be kept at the back of the section so as they don’t block

the visibility of others.

Display should be give a fresh look to the section

PLACEMENT OF VEGETABLES

Vegetables should be grouped according to their families like all leafy vegetables to be

grouped together.

Vegetables should be kept at the reach of the customers so that they can touch the vegetables

Display should give a fresh look to the section

Conclusion
Usage of visual merchandising principles can increase the sale of Indian food and grocery

retailers and give them a considerable edge over their competition, all that’s need to done is

to

 Stick to the basics of visual merchandising

 Change as per the consumer needs

Apply logical reasoning to the display

The elevations manual can be used as a guide to proper planning and lay out of the

supermarket for effective use and product grouping.

This kind of presentation provides a customer focused approach; systematic and consistent

display technique and visual appeal for the customer at the retail outlet.

This changes the feel and the look of the store and increases the convenience factor for the
customer in a supermarket
 Bibliography
For the completion of this project the secondary data and the relevant information was collected from
the following sources
Books
 IMAGES BUSINESS OF FASHION, IMAGES YEARBOOK 2005

 PHILLIP KOTLER, MARKETING MANAGEMENT, 7TH EDITION

Websites

 www.imagesfashion.com/back/ profile/july03_1_profile_zodiac.htm
 in.rediff.com/r/r/ps238

 retailindustry.about.com/ cs/first_timers/l/bldvisualmdsing.htm
 amazon.webwizards.net/visual.html
 www.gablescharrette2002.com/ CoralGablesFinalNewsletter

 retail-industry-search-swicki.eurekster.com/ visual+merchandising
 www.displaywarehouse.com
 dir.indiamart.com/indianexporters/ display-accessories

Search engines

 www.google.com
 www.altavista.com
 www.askjeevs.com