THE INFLUENCE OF VISUAL MERCHANDISING ON CONSUMER BUYING

BEHAVIOUR AT REEBOK

ABOUT REEBOK Type Subsidiary of Adidas Founded 1895, Bolton, England Headquarters Canton, Massachusetts,

USA Industry Sportswear and Sports

Goods Products Footwear, Accessories,

Sportswear Website http://www.reebok.com

INTRODUCTION

Reebok is an American-inspired, global brand that creates and markets sports and lifestyle products.

The brand is committed to designing products and marketing programs that reflect creativity and the desire to constantly challenge the status quo.

REEBOK'S VISION & MISSION Fulfilling Potential Reebok is dedicated to providing each and every athlete –

from professional athletes to recreational runners to kids on the playground - with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable.

Always Challenge and Lead through CreativityAt Reebok, we see the world a little differently and throughout our history have made our mark when we’ve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand’s unlimited creative potential.

Visual Merchandising

Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer.

Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions taking place.

Components of Visual Merchandising:

SignageStore InteriorMarqueesBannersStore ExteriorDisplays

Signage:- Signage is a critical part of interior display and

point –of-purchase promotion. Store signage that communicates a sales message can make up for a lack of sales personnel.

A good sign provides the most information in the fewest possible words.

Store interiors Store interior is an important element of a store concept.

The industry, product selection, price segment, customer group and company vision form the foundation of the concept.

Marquees :- A special type of sign is used to display the name of the store.

An effective marquee must stand out from the other businesses to attract customers.

It can be used to announce a change in season, sale, a special

event or a promotion.

Banners:-

These are used increasingly as an inexpensive but colorful , eye-catching means of promotion.

Banners can be hung from flagpoles , projected from the building or hung flat against the exteriors.

Where many signs compete for customer’s attention , design and logo become more important . They should be unique, noticeable and readable.

STORE EXTERIORSThe exterior

appearance of a store silently announces what customers can expect inside.

Good exterior visual merchandising attracts attention,creates interest,and invites the customer into the business.

DisplaysA display is an arrangement of

merchandise designed to get attention and thus promote sales.

Displays: Types of Displays

Types of Apparel Display Fixtures

Straight Rack

Rounder Four-Way

Gondola

Element of store interiors

Atmospheric:-LightsMusicColorFragrance

CONCEPT OF VISUAL MERCHANDISING

Objectives of VM

AIDAAttractInterestDesireAction

“Attractive displays attract and stimulate .This, in turn, creates desire and behavior-that of increased sales”.

VM helps in:Educating the customers about the

product/service in an effective and creative way.

Drawing the attention of the customer to enable him to take purchase decision within shortest possible time.

Visual merchandising also helps to increase the Sales.

Visual merchandising is a silent seller & it gives an appeal to the customer for buying.

It helps create positive customer image.It encourages impulse buying .

SWOT Analysis of Reebok Strengths• Strong Brand

names like Hexride,Dmxride etc.

• Rich Product Mix • Good market

penetration.• Better customer

service.

Weakness• Lack of products

for price sensitive customers.

• Supply in certain area is very irregular.

• Poor signage and display is making the routes week for the Sale of Reebok

It is observed that in some newly establishing areas many new Outlets are opening; Reebok needs to concentrate on this new outlets and can gradually increase its sale in these area.

There are huge potential in footwear and apparel industries

There are lot of competitors of Reebok so that the pressure on the company to provide the better service to the client.

Market is too sensitive.Its competitors are

availing more & more services or facilities, which the company is not availing, which attract the customers towards other competitors.

Opportunities Threats

A. PROBLEM DEFINITION“Identifying the influence of Visual Merchandising on

Sales.”B. PROBLEM ENVIRONMENTThe environment under study is Reebok Store Hazratganj,

Lucknow. C. SAMPLE SIZE: 100D. SAMPLING TECHNIQUE: Convenience SamplingE. QUESTIONNAIRE DESIGN The questionnaire was based on multiple-choice questions

and dichotomous questions.F. DATA COLLECTIONData Collected through questionnaires.G. RESEARCH PROBLEM“How does Visual Merchandising influence the consumer

buying behavior?”H. RESEARCH DESIGNExploratory Method

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES AND SUB-OBJECTIVES

OBJECTIVE-“Identifying the influence of Visual

Merchandising on consumer buying behavior”SUB-OBJECTIVE- Acknowledging Brand awareness of Reebok.Analyzing the main target market.Determining the Footfall at StoreIncreasing customer concern about shopping.

Data Analysis And

Interpretation

Analysis of Footfall (From 25-6-09 to 16-7-09) Total 22 days

Total No. of Customer Visited the Store = 384No. of Customer Converted = 167Conversion Rate = 43.48 %No. of Footwear Sold = 78No. of Apparel Sold = 91No. of Accessories Sold = 74Total Sales = Rs. 3, 29,698  Average No. of Customer visited the store

daily = 17Average No. of Customer Converted daily = 7Average Sales (per day)= Rs. 14,986

Most of the Customers who visited the Store are Male

Gender Distribution

66%

34%

Male

Female

Gender Distribution

66%

34%

Male

Female

Maximum Customers belong to age group of 26 to 35 years.

Age Group

31%

34%

26%

9%

16-25

26-35

36-45

45-60

Majority of the Customers have the annual income from 2 lakh to 5 lakh.

Annual Income

18%

38%

29%

15%

Upto 2 lakh

2 lakh to 5 lakh

5 lakh to 8 lakh

Above 8 lakh

Most of the Customers are Casual Buyers.

Regular Customer

41%

59%

Yes

No

Majority of the Customer are often attracted by Signage.

Attracted by Signage

17%

37%

38%

8%

Always

Often

Sometime

Not at all

Majority of the Customer are attracted by Window Display & lighting.

Which one of attracts you most?

22%

15%

20%

19%

16%

8%Window display

Colors

Lighting

Music

Fixture

Others

The degree of attractiveness of different elements of VM in decreasing order are Display > Store Front> lighting > Interior Design> music >color

25

20

2723

20

29

35

24

38

4543

35

18

26

1512

17

1112

22

8

15 14 15

108

12

5 610

0

5

10

15

20

25

30

35

40

45

50

Store Front Display Lighting Music Color InteriorDesign

Rating 1

Rating 2

Rating 3

Rating 4

Rating 5

Majority of the Customer’s buying is affected by Brand Image.

Attributes

27%

36%

26%

11%

Price

Brand image

Service

Others

It was found that Majority of the Customer believes that Puma is a Competitor of Reebok.

substitute of Reebok

26%

34%

29%

11%

Adidas

Puma

Nike

Others

MAIN FINDINGS conti…..

Males are the main customers of Reebok as compared to female.

Youngsters are the prime customer of Reebok.

Customer having annual income 2 to 5 lakhs are the main target Market.

There are more occasional customer as compared to regular.

Customers are attracted by signage (reduced price, sales promotion etc.)

Customers are more concern about brand image and price when buying from Reebok.

Most of the customers believe that Puma can be a substitute of Reebok.

Moreover, in terms of gender response it was found that women were more influenced by signages as compared to men in making their purchase decisions.

Non-working women were the ones who were much influenced by signages.

The degree of attractiveness of different elements in decreasing order is Display > Store Front> lighting > Interior Design> music >color

RECOMENDATIONCreate an emotional connect between the

viewer and the display. Get the customer to pause and “shop” the

selling floor.Establish, promote, and enhance the store’s

visual image.Entertain customers and enhance their

shopping experience.

Introduce and explain new products.The styles and code to the brand should

change as clientele advance and grow.Thus, we can say that companies which want

to make their brands No. 1 should adopt the above findings in their Visual merchandising.