A Study on Advertising and Visual Merchandising of

Branded/Organised Apparel Retail Stores

INTRODUCTION
APPAREL RETAIL INDUSTRY
The Indian Apparel Industry has an overwhelming presence in the economic life of the
country. It is one of the earliest industries to come into existence in the country. The sector
has a unique position as a self-reliant industry, from the production of raw materials to the
delivery of end products, with considerable value-addition at every stage of processing Apart
from providing one of the basic necessities of life, the apparel industry also plays a pivotal
role through its contribution to industrial output, employment generation, and the export
earnings of the country. Currently, it contributes about 14 percent to industrial production, 4
percent to the GDP, and 17 percent to the countrys export earnings. It provides direct
employment to over 35 million people

ADVERTISING
Indian fashion retail industry is transforming rapidly, due to growing organized retail,
increasing purchasing power and the new-found look good-feel good concept in the youth.
This article explores the scope of branded apparels beyond metros by analyzing consumer
behaviour in the suitable target segment and developing market insights. It maps consumer
expectations with key success factors for the industry and recommends suitable entry
strategies for leading players considering their individual strengths and weaknesses.
The Indian apparel industry in retail is growing rapidly, with an increasing focus on private
labels (PLBs). Recently, in a sharp contrast to earlier periods, consumers have started
considering purchase of PLBs as smart shopping. Considering these aspects, this article aims
to analyze the association of PLBs with customers and retailers so as to gauge customer
loyalty, consumer preferences, shopping behaviour and also to understand the marketing
strategies and objectives of PLB retailers. It provides an insight into the positioning of brands
and PLBs in the minds of consumers and recommends suitable strategies to enhance the
market share of private labels.
Premium menswear has seen both domestic and international brands spend on mainstream
advertising. But before releasing a campaign on TV or going after 'likes' on their Facebook
pages, it would do well for brands to understand how Indian men interact with the mid to
premium branded apparel category. A study done by Nielsen, the leading global provider of
information and insights, says that just one in four shoppers decide on the brand before
purchasing, bringing into question the efficacy of advertising.
Within the management process of the marketing area, it highlights the element of
advertising, which in short is intended to promote the brand.

The expected results:

Obtaining acceptance and consumer preference, and their presence in the mind of this
advertising serves to promote the product and the organization.
Directly stimulate the demand for consumption.
Make more effective sales personnel.
Promote the various ways to use the product.
Remind and reinforce the brand image in the minds of consumers and reduce demand
fluctuations.

There are various means of dissemination of advertisements, each with its peculiarities,
advantages and disadvantages. In fashions industry,
The major media types are:
Television.
Outdoors.
Magazines.
Internet
Newspapers
The television advertising, in general, demand more investment, but in the fashion industry
is not always a good alternative, since the sector is composed of niches and that channel is
directed to the general mass of consumers. This media type is most commonly used for the
creation and development of brand image.
The outdoors, which is a media-related advertising in the external environment as taxis,
outdoors, and other ways to explore the urban setting, can be highly utilized to attract
consumers to the stores, being a channel with much lower investment compared to mass
media. The big disadvantage is the simplicity of outdoor advertising piece that can not
contain a lot of information, so that consumers do not lose attention. In the fashion market,
the media type is considered as a very effective piece of advertising in magazines, because
the possibility of targeting, which makes your marketing dollars more effectively.
ADVERTISING: MESSAGE AND MEDIA
The structure of the message matches the "way it is made to achieve the best effect on the
receiver". It set the starting amount of information and the repetition of such information. The
information must not be excessive due to the difficulty that the receiver has to process large
amounts of information. Repetition allows the receiver to assimilate the elements of the
message, but when individuals are already familiar with the message repetition causes
fatigue, boredom and disgust. One of the most effective ways to convey the message of
advertising is through the image.
This has a big influence on the process of brand building; it is the brand that translates into a
concept, bringing the brand to life. Celebrities are much in demand in this segment, to

compose their campaigns with the intention to endorse the brand. So the brand receives
meanings that relate to the celebrity, your lifestyle.
The content strategies used in the messages into three groups:
(a) Cognitive - convey information in a rational manner, with a focus on product sales.
(b) Affective - evoke feelings and emotions that consumers relate to products, services or
image of the company.
(c) conative - are designed to directly influence consumer buying behaviour

This strategy seeks to induce action and promotional support. The message and the medium
in which they are transmitted keep a relationship together, after each message has its most
appropriate means for serving. Messages have effectively only when consumers understand
the information on this. Thus, the purpose of the communicator is to get consumers to encode
the information and, to that end, let's do it as simply and quickly as possible. The selection
process consists of selecting media vehicles to send your message to your target market. To
select the media should be analyzed: reach and frequency, continuity, geographical averaging
or markets, budget constraints and availability, market and audience, gross rating points,
duration of the campaign, integration with other areas of the communications mix and
flexibility. It is emphasized that the point of sale can be used as media, in other words, as a
communication platform for the brand.

POINT OF SALE AS A COMMUNICATION TOOL

The retail point of sale functions as a tool of brand communication. Thus, their design can
help support both the brand image and influence in a successful strategy for retail. The main
objective of the design of the store has to be the best show advantages of the products, so
each store tends to be different according to the products it sells and the category in which
they fall. In the fashion market, where the specifics of the product are based on logical
discontinuity, seasonality and ongoing renewal and supply trends, merchandising, technical
product promotion at the point of sale, quickly assumes a stale, the which creates the need to
be reinvented, renewed frequently to create an ideal atmosphere at the point of sale is
necessary to integrate various resources, such as lighting, floors, displays, showcases, music,
odours and brand. The store environment, expression of the brand identity is the result of
alchemy between decoration, colour, material, light, music and odours. In this environment
the products will be presented in a manner directly related to the needs, preferences,
aspirations, lifestyle and attitudes towards fashion or consumer target. According to its
qualities, the mode of presentation of the products the customer will visit a succession of
discoveries attractive and rich emotions or a search confusing and frustrating.

SHOP WINDOWS
The first impression of the selling point is caused by the front entrance of the store and by
this, emphasizes its importance as they are instrumental in motivating the entry or not the
consumer in the store. The author believes that glass windows, allowing visualization of the
store, can serve as a good advertisement. The brand name and logo are factors that
complement the design of the store and facilitate the identification of the concept of brand
stand out especially at stores that are not located in malls. The individual, who travels through
the mall or the shopping streets, stops on average two to seven minutes in front of a shop
window.

So it must comply with certain principles aimed at testing their visibility clearly:

Obviously be noticeable quickly readable only submit one idea at a time.

Only one message.
Hold the attention of the passerby to urge him to enter the boutique be proportional to
the product size.
To prevent the consumer is not lost.

States that the consumer must submit to showcase the products protected by an aura of desire
and indispensable necessity must be organized so as to make the consumer dream through
her. Each element that makes up the showcase is important because it establishes a
relationship with the whole. Therefore, it is essential to define the theme of the showcase, the
central idea, in order to establish a common point between the elements arranged,
FLOORS, WALLS, LIGHT AND ENVIRONMENTS
The importance that should be given to the material used on the floors of the store. In
addition to communicate same style, it should always ask whether the traffic is suitable. The
walls of the shops have two important components to the study of communication point of
sale, colours and furniture. Regarding the colours, currently the most used in the boutiques
are white, beige and gray. There are other components that can complement the design of the
outlet. it can be effective in perpendicular to the attention of pedestrians. The plants, and
discusses their importance for creating ambiences. The lighting conditions the value of the
offer, and also provides comfort to the customer purchase.
HEARING AND SMELL, SENSES THAT HELP A STORE
ENVIRONMENTALIZATION
The conventional practices of visual merchandising are no longer sufficient today, it is
necessary to provide experiences to consumers beyond the purchase. These can be caused
through music, smell or even taste. Brands increasingly adopt more often a procedure that
consists evoke synaesthesia, in other words, the combination of a maximum of experiences
sensory consumer exploiting the senses of smell and hearing. It is believed that the music
mark may provide a palette references to the consumer. Music provokes an emotion on every
client that is his and that may influence their behaviour so unpredictable. The trend is the
brand to create your own musical environment, in other words, instead of connecting to a
radio station either, besides the fact that convey a musical style incompatible with the brand
proposition, often allowing the disclosure of competitive products within store; today, brands
are developing their own musical sets. The scents also help the ambiance of the stores, they
refer to each individual to their history and their memories, is deeply related with the personal
emotions.

PRINT MEDIA
Any advertising categories increased print ad pages in 2013, helping to slow the decline in
magazine ad pages that weve seen in recent years. The Medical/Pharmaceutical, Home
Furnishings, Technology, and Beverages categories all increased ad pages from 2012.
Perhaps most significantly, Apparel & Accessories brands, the largest advertising category in
consumer magazines, increased ad pages in 2013. Ad pages in the category rose by 1.2% to
18,886 total pages January-December, as measured among 161 consumer magazines. During
this period, 514 Apparel & Accessories brands increased ad pages versus 2012, and there
were 592 brands that did not place ad pages in these consumer titles in 2012.
Apparel & Accessories ad pages were boosted by increased advertising from several of the
largest Apparel & Accessories categories, including Designer Fashion (+5.6%), Watches
(+3.5%), and Footwear (+2.9%). These categories offset the ad page declines from Jewellery
and Bridal brands.
Ralph Lauren was the most active Apparel & Accessories advertiser in 2013, with 287.8 ad
pages up slightly from 281.3 pages in 2012. Calvin Klein and Chanel followed, with 278
and 259 pages, respectively.Vogue achieved the highest share of Apparel & Accessories ad
pages in 2013 with 1,332 pages, followed by Brides(1,220.5 pages) and Harpers
Bazaar (1,162 pages). Among other womens fashion and bridal magazines, GQ is the only
mens publication in the top 10, with 621.5 pages from Apparel & Accessories brands.

Hence, we note the importance of using point of sale and media by means of a process
integrated with other media. Highlighting elements that compose this environment, such as
lighting, flooring, walls, perfumes,

Used clothing stores purchase used clothing in good condition directly from consumers, then
resell the clothes at a fraction of their original retail price after cleaning them up. Used
clothing stores are recession-proof businesses with a low cost of inventory and a steady
stream of suppliers willing to negotiate on prices. Local advertising techniques can be

effective for brick-and-mortar used clothing retailers, helping them to gain a steady foothold
in the local market and spread the word about their store.
Youth Culture Publications
Used clothing stores are trendy among young people who want a range of fashion options but
who do not necessarily have the money to buy new designer styles. This same demographic
may read local music-centred magazines, events listing publications and college campus
publications, for example. Target any publications that cater to trendy youth with your print
ads.
Local Sponsorships
Sponsor local concerts, fashion shows, art shows and other community events to gain
exposure to the right audience. Ask event planners to include your company name on their
marketing materials, promote your shop publicly at the event or allow you to come and hand
out flyers or coupons for your shop. Again, focus on events that younger adults and teens are
likely to attend.
Partnerships
Find local art galleries, music stores and other community-focused stores to form advertising
partnerships. Agree to give each other references to your own customers, for example, or to
display a poster advertisement for each others' business on your premises.
Consider creating a multi-business promotion to boost traffic to both stores. You may offer
someone who spends $50 at your store a gift certificate to a local shoe store, for example,
while they do the same for you.
Fashion Shows
Hire models to walk in local fashion shows on your behalf. Dress the models in all used
clothing from your store; advertise your store as you describe the ensemble, and include the
total cost of the outfit in your description. This can excite local fashion enthusiasts about the
idea of creating stunning outfits at a fraction of the usual cost. Take the opportunity to hand
out flyers or other promotional materials for your store at the event, as well.
Storefront
Open a storefront in a high-traffic area and display large signage advertising the fact that you
buy and sell used clothing. This can drum up steady business over time, as passersby note
your location in their minds, talk about your shop with others and eventually come in to shop
or to make a little money.

VISUAL MERCHANDISING

Visual merchandising must not be seen as a once off thematic or sales activity. It is rather an
ongoing process to ensure that visual merchandising is effective and useful. It is therefore
important to consider how consumers and potential consumers react and respond to different
visual merchandising elements, and to establish what they see as important factors in the
merchandising process.
Visual merchandising is not an isolated and once off phenomenon but rather forms a
significant component of retailing. Besides the window displays, which are designed with the
purpose to attract walking by consumers and encourage walk-ins, there is also in-store
decoration that is designed to enhance the customer's comfort and convenience while
shopping. The overall aim is to enhance the consumers overall shopping experience.
When diving into the world of retail either through a pop-up shop or own boutique retail
store, one of the key sales metrics we are going to want to focus on is "sales per square
footage," which is the average revenue a retail business generates for every square foot of
sales space.
Essentially, "retail space" has to be most productive and most efficient salesperson, and how
to optimize your sales space for maximum revenue is to employ the art and science of visual
merchandising.
The discipline requires a sense of aesthetic, but it's also a science, which means that it's a
tried and true method that has been studied with results to show for it, results that can
replicate and recreate for own store.
However, it's also important to recognize that the field of visual merchandising encompasses
a lot of distinctive retail design topics and covers everything from creating the window
display a prospective customer first sees, to the signage that is put up and the layout which is
decided on to direct the traffic and a whole lot more.
Visual merchandising is creating effective merchandising displays in the store that not only
catch your target customer's attention, but gets them to make a purchase as well.
This study explored consumers' perceptions towards visual merchandising displays and to
determine which aspects of visual merchandising displays are the most important to
consumers. The primary research question posed by the literature was to determine which
aspects of visual merchandising displays are relevant and important to consumers. The
findings showed that a prominent visual stimulant and important aspect of visual
merchandising displays was colour, which creates visual attraction and stimulation. Other
important aspects of visual merchandising that were identified were the positioning of
displays and the use of space, lighting as well as the neatness of displays. A further important

aspect that was noted was that visual merchandising displays should provide information
about the products sold in store. It became clear from the findings that visual merchandising
displays have a functional role to play in apparel marketing.
Visual merchandising displays
Visual merchandising displays form part of visual merchandising, and it is imperative that the
concept of visual merchandising is explained and understood first before visual
merchandising displays are discussed. Visual merchandising can be defined as the activity
that matches effective merchandise assortment with effective merchandise display. Visual
merchandising can in simple terms be seen as the way in which retailers display their
products in store in order to attract consumers and to enhance their propensity to purchase the
items as displayed. Visual merchandising is therefore all about displaying the right
merchandise and in so doing use the available retail space effectively and efficiently in order
to increase sales.
Visual merchandising display is one of the elements of visual merchandising and can be
regarded as visual features that create attention or pleasure in a store. These displays are also
known as feature areas. In simple terms, the displays that are used in apparel stores are
predominantly used to decorate and beautify a store by adding additional fixtures, props,
posters, materials, colours, frills and objects to a store.
Apparel retail stores frequently use visual merchandising displays to illustrate a matter that is
regularly associated with holidays, special days like Valentine's Day and St. Patrick's Day,
women's month, mothers' and fathers' day, Easter, Christmas, seasonal changes, and major
events such as the World Olympics. Therefore, depending on the event selected an apparel
retailer's displays can be in a continuous flux of change.
In today's retailing environment visual merchandising forms a central part of the retailers
marketing strategy. Besides the window displays, which are clearly designed with the purpose
to attract walking by consumers and encourage walk-ins, there are also in-store decorations
that are designed to enhance the customer's comfort and convenience while shopping, and
overall to offer the consumer a better shopping experience.
It can be really easy to focus on just creating visually stimulating displays and forget about
the other four senses, but the secret to creating an engaging and immersive experience is to
create a multi-sensory experience or what's known in the industry as "sensory branding." :

Sight: There are endless arrays of visual cues you can play around with to
communicate your message. From using colors for their psychological triggers, to
leveraging lighting, symmetry, balance, contrast, and focus to direct and control
where a customer looks and for how long, it's one of the most fascinating components
of merchandising.

Sound: The music you play in your store has such a profound yet subtle effect on how
your customers behave in store. Depending on who you're trying to target and bring

in, you can slow people down by playing more mellow music and causing them to
browse, or playing Top 40 to communicate that you want teenagers in your store and
so on.

Touch: This one's probably the easiest to get right in that you need to simply
remember to put your best foot forward and give customers the ability to touch, feel,
and try out whatever it is you're looking to sell.

Smell: Believe it or not, there's an entire science to what's referred to as "scent

marketing," with several studies and real-world case studies of global brands like
Samsung, Sony, and Verizon applying it to their advantage. The reason being that
smell is considered to be a fast track to the system in your brain that controls both
emotion and memory, two very prominent factors behind why we choose one brand
over another.

Taste: This can work magic if you happen to be in the business of selling
consumables, giving people the ability to taste and sample before they buy is the
equivalent of letting people try on clothes, a general and effective best practice.

Visual Merchandising Displays

Retailers want their stores to attract consumers by assisting them to find the merchandise they
desire and to motivate them to make planned, unplanned and impulse purchases, and to
ultimately provide them with enjoyable shopping experiences .If the visual merchandising
displays do not have this desired effect on consumers, the question whether it has any value for
retailers to spend time and money on these visual displays arises

A question that apparel retailers often ask is whether the visual merchandising displays used
in stores are beneficial for their customers. Successful visual merchandising displays have an
effect on consumer emotion; consumers sometimes purchase products unconsciously
depending on their current mood. Therefore, consumers might visit a retailer to enjoy a
mood-changing experience, something that will make them feel good. Apparel retailers can
therefore take advantage of this human emotion to increase their sales by merely enhancing
the store environment.
Visual merchandising display is the presentation of merchandise at its finest. Display is the
glamour, the spark, the stage, the oomph and sparkle that surrounds a store and makes the
consumers stop, look, and buy what has been placed together with care and presented with
skill. These displays are also known as feature areas.
Visual merchandising displays use creative techniques in order to save both the sales persons
and the shoppers time by making shopping effortless. The visual merchandising display
process is often referred to as the
silent sales person by providing the consumers with information through visual mediums,
as well as by suggestive selling - suggestions to add items to a consumers original purchase

This process is often referred to as the visual merchandising communication process. A great
deal of communication between the retailer and the consumer takes place through the use of
visual merchandising displays. The retailer communicates to the consumer by means of their
store, the stores interior design, layout, atmospherics and merchandising displays,

MESSAGE

SENDE
R

RECEIVE
R

The store, the interior design, layout, atmospherics,

Customer
Retailer
visual merchandising displays
Visual Merchandising Communication Process
Source: Adapted from Bell, J. & Ternus, K (2006). Silent selling. 3rd ed., New York: Fairchild
Publications, p. 21

Visual merchandising displays are frequently used to introduce new products or brand
extensions to consumers, as well as to decorate a store. This is a planned and systematic
approach to display the stock that is available in the store. Visual merchandising displays
perform different functions in an apparel retail outlet, such as supporting sales, to support the
retail strategies, to communicate with consumers and to assist in communicating the fashion
retailers brand image
Displaying merchandise in windows was the first sign of visual merchandising
displays, thus it was born to increase sales by first attracting shoppers through the power of
window displays and then through in-store visual mechanising displays. These displays
encouraged the consumers to remain in the store, purchase the product, and have a positive
retail experience in order for them to return to the same store.
Retailers realise that the way in which they use visual merchandising displays has the
power to create images of the products in the mind of consumers. Visual merchandising
displays are now a significant tool for retailers in order to attract and entice consumers.
In todays fashion retailing business, Visual Merchandising plays an important role to bring
shoppers inside the store and make them a purchase clothes. In this article author has
showcased an overview of visual merchandising and built a relation in between visual
merchandising and retailing.
In this Research Project following things are discussed
1.

The purpose of visual merchandising

2.

How visual merchandising helps retailers

3.

Visual merchandising placement process

4.

Components of Visual Merchandising

5.

Tips on visual merchandising

6.

Visual elements that compose the retail environment

Visual merchandising is also coined as the Art of Retailing. Related o the world of apparel
and fashion visual merchandising has great impact and utmost relation in retailing.
There is a saying -Give the customer a reason to buy.
Visual merchandising can be simply defined as the physical presentation of products. It is the
coordination of all physical elements of a business to project the right image. Visual
merchandising has increased tremendously in importance with the growth of self-service
retailing. The purpose of such visual merchandising is to attract, engage, and motivate the
customer towards making a purchase.
1. The purpose of visual merchandising

To make merchandising desirable

To make merchandise easy to locate in the store

To introduce and explain new products

To promote store image

To cajole customers into the store

To show merchandise assortment

2. Visual merchandising helps in

Educating the customers about the product/service in an effective and creative way

Establishing a creative medium to present merchandise in 3D environment, thereby

enabling long lasting impact and recall value.

Setting the company apart in an exclusive position

Establishing linkage between fashion, product design and marketing by keeping the
product in prime focus

Combining the creative, technical and operational aspects of a product and the
business

Drawing attention of the customer to enable him to take purchase decision within
shortest possible time, and thus augmenting the selling process.

3. Visual Merchandising Placement Process:

Where the products are located and how retailers arrange it around the store can be placed
based on shoppers buying behaviour. For their easy access and reach, the ultimate visual

merchandising is liable. A proper visual merchandising can affect on consumer decision to

make a buy from prompt to multiple.

Prime Locations

Eye level and hand level arrangement

Customer Entrance

Window Displays

Store Layout

Customer Space

Store Interior

Store Decorations

Props
4. Components of Visual Merchandising

Merchandise the focal point

Right choice of colors is vital

Display themes to appropriately support the product

Display should complement the retailers other strategies

Cleanliness

Change the display settings in frequent intervals

5. Tips to visual merchandising:

Basically visual merchandising is key element by that a company boosts up their profit
margin. So what is visual merchandising? It is a possible or best way to attract customer to
purchase a product that a retailer offer. Here are some tips to help you to success in visual
merchandising.

Whether: One of the most effective visual merchandising is by coming up with a

theme that incorporate with the seasons. So if it is currently winter or holiday, then try to
come up with some holiday and colourful theme for window display. If it is summer then it
should be such kind of beach or related with the summer.

Signs: You can make different signs around the stores that help to make customer
attention. This is certainly helps to boost-up your sell, especially when you called a discount
on the specific products.

Windows displays: It is very important for the retailing, regardless whatever products
you want to offer. This is the first place where a customer gives their concentration at a
glance. You should give utmost importance to it.

Lighting: Coming up with good lighting to the window display is very essential for
success of your visual merchandising. The lighting helps your products displayed colour &
season wise on your window. It is recommended that you give emphasis on those products
that have good profit margin.
6. Visual elements that compose the retail environment:
Elements play an important role to get overall effect to the retail environment. Four visual
elements that compose the retail environment are shown in the following diagram.

Source: Adapted from Kardes, F. R., Cline, T. W. & Cronley, M. L. (2011).

This study proceeds from a consumer response-centred approach to visual merchandising stimuli in an
attempt to holistically consider this area of the retail industry. The study could benefit apparel retailers
as the impact visual merchandising displays has on consumer behaviour was uncovered

Review of Literature
Visual merchandising is the activity sof promoting the sale of goods, especially by their
presentation in retail outlets. This includes combining products, environments, and spaces

into a stimulating and engaging display to encourage the sale of a product or service. Visual
merchandising starts with the store building itself. The management then decides on the store
design to reflect the products the store is going to sell and how to create a warm, friendly, and
approachable atmosphere for its potential customers.
Visual Merchandising, generally known as Silent selling is the presentation of the store and
merchandise at its Best.
Visual Merchandising is termed as 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. But it is little different from the
real art, the main principle of visual merchandising is that it is intended to increase sales,
which is not the case with a "real" art.
Many elements can be used by visual merchandisers in creating displays, including colour,
lighting, space, product information, sensory inputs such as smell, touch, and sound as well
as technologies such as digital displays and interactive installations. The main principle of
visual merchandising is that it is intended to increase sales. Visual merchandising is one of
the final stages in trying to set out a store in a way that customers will find attractive and
appealing and it should follow and reflect the principles that underpin the store's image.
Kotler (1973) indicated that one of the most significant features of the total product is the
place from where it is bought. In some cases, the place, more specifically the atmosphere of
the place, is more influential than the product itself in the purchase decision. In some cases,
the atmosphere is the primary product. The paper emphasizes that visual merchandising is not
practiced as consciously and skillfully as retailers now use price, advertising, personal
selling, public relations and other tools of marketing.
Mills, Paul and Moorman (1995) defined visual merchandising as the presentation of a
store/brand and its merchandise to the customer through the teamwork of the stores
advertising, display, special events, fashion coordination, and merchandising departments in
order to sell the goods and services offered by the store/company.

Sales Promotion
According to Shimp (2003), sales promotion refers to any incentive used by a manufacturer
to induce the trade (wholesalers, retailers, or other channel members) and/or consumers to
buy a brand and to encourage the sales force to aggressively sell it. Totten & Block (1994)
stated that the term sales promotion refers to many kinds of selling incentives and techniques
intended to produce immediate or short-term sales effects. According to Peattie and Peattie,
(1994); Lehman and Winer (2002) and Walsh (2000), sales promotions can be loosely defined
as special offers which essentially aim to stimulate demand during the period in which they
are set. Blattberg and Neslin (1990) summarize the various definitions offered by several
authors (Kotler, 1988; Webster, 1981; Davis, 1981), and develop the following definition of

sales promotion: sales promotion is an action-focused marketing event whose purpose is to

have a direct impact on the behaviour of the firms consumers.

Impact of Sales Promotion on Consumer buying behaviour

Balaghar , Majidazar, and Niromand (2012) described Sales promotion as most effective tool
after advertising. According to them, sales promotion increases sales volume. Blattberg,
Eppen and Lieberman (1981) described that Sales promotion increases purchase acceleration
in terms of quantity purchased. It also decreases timing between two purchases. Ailawadi and
Neslin (1998) argued that Sales promotion induces purchase of more quantity of product than
without sales promotion. Even, it also increases the quantity consumed by the customers.
Sales promotion also leads to brand switching among consumers. However, some of the
authors have reported that sales promotion does not have significant impact on consumer
buying behavior. Manalel, Jose and Zacharias (2007) found that Consumers do not perceive
sales promotion scheme favourably. According to Das and Kumar (2009), Retail sales
promotion plays limited role on consumer buying behaviour.

Discount offer and consumer behaviour

There is a large body of research which is aimed at identifying impact of price promotion like
discount on consumer buying behaviour. Fill (2002) stated that discount is the simplest
technique to offer a direct reduction in the purchase price with the offer clearly labelled on
the package or point of purchase display. Ndubisi (2005) reported that price discount play
significant roles in influencing consumer product trial behaviour. Price Discount plays
significant role in brand switching, purchase acceleration, stock piling, product trial and
spending more in the store (Farrag, 2010). Also, Shi, Cheung, and Prendergast (2004) reports
that Price discount induces purchase acceleration, spending more and stockpiling among
customers. Osman , Fah, Foon (2011) described that Price discounts play significant roles in
influencing consumers purchase trial behavior and increase short term sale. According to
Mittal and Sethi (2011), Price discounts are found to be more effective in inducing stock
piling, and purchase acceleration, moderate in brand switching, and new product trial in that
order, but are not effective enough to induce people to spend more.

Price off Offer and consumer behaviour

It is a reduction in a brands regular price. According to Blair and London (1981), the major
reason for marketers to use the price-off reductions is that this type of deal usually presents a
readily apparent value to shoppers, especially when they have a reference price point for the

brand, therefore they can recognize the value of the discount. According to Martinez-Ruiz et
al (2006), temporary retail price reductions increase sales of the brand. Percy et al (2001)
reported that consumers pay attention to price-off promotions.

Buy-one-Get-One- Free and Consumer Behaviour

Promotion technique of buy-one-get-one-free is one of the types of bonus packs in which
the consumers are offered the additional product at the ordinary price but are in an enhanced
package. Consumer would be easily persuaded to buy products as there is no extra cost need
and more valuable perceived by consumers (Sinha & Smith, 2000). Lee (1963) mentioned
that factory bonus pack is used to increase consumer trial of the brand. Gardener and Trivedi
(1998) wrote that bonus packs are offers by the manufacturer that add value to the product by
offering additional product at the regular price. According to Percy et al (2001), bonus packs
do create an immediate incentive to buy. Seibert (1996) reported that manufacturers like
bonus pack because they increase brand trial, switching and stocking up. Ndubisi (2005)
mentioned that Bonus pack is instrumental in increasing consumer trial of a brand, thus, the
more of the product included at no extra cost, the greater the likelihood of consumers buying
the product for trial. However, in other research by the same author it was found that Bonus
pack is bit weaker in inducing product trial compared to other three types of sales promotion.
Farrag (2010) stated that Buy- one-Get-one free has profound effect on stock piling and
purchase acceleration but limited impact on brand switching, product trial and spending
more. Shi, Cheung and Prendergast (2004) reported that buy-one-get-one-free offers are
most effective in inducing stockpiling and purchase acceleration, less effective in inducing
additional spending, and least effective in promoting product trial and brand switching. Ong
et al. (1997) found that consumers appeared to be slightly sceptical of the bonus pack offer,
but somewhat more trusting of the price and quantity claimed. The report speculated that this
happens because consumers suspect that manufacturers do raise prices slightly in conjunction
with bonus pack offerings. According to Mittal and Sethi (2011), Buy one and get one free
offer was found to be particularly effective in inducing brand switching. Moderate effective
in purchase acceleration and new product trial but were ineffective as a medium for stock
piling and spending more.

Bhalla and Anurag (2009) defined Visual merchandising as the presentation of any
merchandise at its best (1) color coordinated (synchronized colors); (2) accessorized (related
products/ props); and (3) self-explanatory (descriptive/illustrative). It is one of the final stages
in the process of setting up of a retail store which customers would then find attractive and
appealing.
Several studies on apparel retail sector and usage of promotions are reported in the context of
developed markets. A brief overview is presented below:

Deeter-Schmelz, Dawn R.; Moore, Jesse N.; Goebel, Daniel J, (2000) examined Prestige
clothing shopping by consumers by a confirmatory assessment and refinement of the
PRECON scale. Aspects studied include background on the symbolic aspects of
consumption; prestige shopping behavior; reassessment and refinement of the PRECON scale
and impact of income and age on prestige shopping. The paper concludes with managerial
implications for the United States apparel retailers dealing in prestige clothing.
Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied Buyerseller
relationships for promotional support in the apparel sector which is critical for success. The
purpose of the study was to define promotional support categories offered to apparel retailers
by manufacturers, to identify the retailer's perceptions of the offering frequency and
importance of the promotional support, and to investigate the relationship between offering
frequency and perceptions of importance. Results indicated that monetary support was
regarded as the most important promotional support.. A positive and significant correlation
was found between items the buyers perceived as important and the frequency of offerings of
these items.
Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on Consumer
Purchase Behavior and Loyalty. Using longitudinal data from a convenience store franchise,
the study found out that consumers who were heavy buyers at the beginning of a loyalty
program were most likely to claim their qualified rewards, but the program did not prompt
them to change their purchase behavior. In contrast, consumers whose initial patronage levels
were low or moderate gradually purchased more and became more loyal to the firm. For light
buyers, the loyalty program broadened their relationship with the firm into other business
areas. Thus there is a need to consider patronage to decide rewards for loyalty programmes.
The boom in domestic apparel, nevertheless, tells only part of the story. India has huge
potential as a market for foreign clothing, given its large population and growing household
incomes. A few significant foreign players-such as Levi Strauss, Benetton and Lacoste-have
been selling their branded apparel in India for a number of years. But now, just like their
Indian counterparts, global apparel brands are setting up their own apparel outlets, instead of
just selling through departmental stores. Ralph Lauren, for example, has a limited range
exhibited in generic department stores located in metro cities. Yet it has now set up its own
stand-alone stores, which showcase all the company's brands.
Now, with the government's proposal to let in branded retail players- brands like Benetton
and Lacoste currently sell mostly through the franchise route-investments in India's apparel
sector are likely to go up substantially.

Gaynor Lea-Greenwood, (1998) in his paper "Visual merchandising: a neglected area in UK

fashion marketing?" outlines recent research which demonstrates that the re-naming of
display as visual merchandising has led to centralization and professionalism of the function.
Centralization of visual merchandising has given the function a strategic profile which has to
date been neglected within the literature. The move towards centralization and therefore

increased professionalization and sophistication of the creative process is discussed and

includes the following benefits outlined by the respondents:

communicating a cohesive brand image;

differentiating the offer from the competition;
integrating promotional effort across the brand;
Increasing availability of technology to facilitate the process. The paper concludes
with future research avenues and recommendations.

Jerry Gelsomino in his article on Basic Tips for Better Visual Merchandising states that Great
store presentation and product merchandising is like a good book. It's got an alluring cover to
entice, an interesting first chapter to tell the reader they've made the right choice, and a
satisfying conclusion to get the audience to want more. The tools used to achieve these
attributes are based on creating the most satisfying experience for the shopper, turning
browsers into buyers. Storefront Identity and First Impressions - the entrance reflects the
personality of the store and gives a glimpse of the merchandise available inside. Design a
distinctive store logo that communicates your mission. The way merchandise is displayed in
show windows also has a lot to do with enticing the guests into the store. Whether you have a
store in the mall or on the street, the customer has only a few seconds to view and be attracted
by your displays.
Visual merchandising is the activity of promoting the sale of goods, especially by their
presentation in retail outlets. This includes combining products, environments, and spaces
into a stimulating and engaging display to encourage the sale of a product or service. It has
become such an important element in retailing that a team effort involving the senior
management, architects, merchandising managers, buyers, the visual merchandising director,
designers and staff are needed. This information on VM also contains:

History
Plano-gram
Window Display
Merchandising etc.

Bill Gerba (19 October, 2006) In his article on Five visual merchandising tips for your instore network the author explains Merchandising, as commonly used in marketing, means the
promotion of merchandise sales, as by coordinating production and marketing and developing
advertising, display, and sales strategies to increase retail sales. This includes disciplines in
pricing and discounting, physical presentation of products and displays, and the decisions
about which products should be presented to which customers at what time.
Five tips:
Don't bother force-feeding your network name to consumers:
Do promote your host retailer's brand and core values:

 Do work closely with the retailer's store marketing department

Do use your displays to complement the retailer's other marketing strategies
Do make your content valuable to shoppers
VISUAL MERCHANDISING - PRINCIPLES OF VISUAL MERCHANDISING
There are 5 principles of VM:
1. Clarity:
The companys image
The structure of store
The offering
Merchandise
2. Authority: To display with authority is to show and tell the customer that the
company believes in the merchandise that is being sold, this is attained by ensuring
that the shop floor looks neat, clean, adequately stocked, well- coordinated.
3. Discipline: Ensuring presentation norms are being followed for. e.g. Merchandise
should not touch the floor; there is a minimum of 4ft of circulation space for each
fixture.
4. Diversity: The ability of merchandising various products in the same area, for e.g.
coordinating top wear/ bottom wear/ accessories in focal point/ high point or on a
wall and yet the display is harmonious.
5. Flexibility: Mixing merchandise and having different display configurations. It is
worth mentioning here about how some authors have specified about the problem of
Visual clutter author such as Linda cahan in her article Five dedly display sins and
Sharon Loeff in her article Clear the clutter talks about how the visual
merchandisers needs to be careful while creating a display to avoid visual clutter.
This article on Retailing (2006) talks about the attitudinal shift of the Indian consumer in
terms of "Choice Preference", "Value for Money" and the emergence of organised retail
formats have transformed the face of Retailing in India. With a growth over 20 percent per
annum over the last 5 years, organised retailing is projected to reach US$ 23 Billion by
2010.The Indian retail industry though predominantly fragmented through the owner -run "
Mom and Pop outlets" has been witnessing the emergence of a few medium sized Indian
Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group)
and Lifestyle International.

Preeta H Vyas in his IIMA journal (2 November, 2007) on Sales Promotion Practices in
Apparel Retail Sector and Challenges Ahead, clearly explains that Indian organised retail
industry is poised for growth. Apparel sector in particular has a great opportunity with
alignment of Indian economy to globalised markets. With the widespread use of sales
promotions- short term activities which provide material inducements to consumers and trade
it becomes imperative for managers to understand such practices and understand challenges.

This study investigates sales promotion activities of six apparel stores in Ahmedabad market
and compares them on various dimensions. It presents major findings and provides insights
on consumer behaviour. Ulla Harrison, Sebastien Retaillieux,, Laurence Hugon &Ellen
Verburg in their article on Visual Merchandising: Seeing is Buying (2008), talks about the
various modes of visual display in apparel sector, it also gives a basic idea regarding:

Window Display
Entrance of a store
Props and its use
Types of displaying the merchandise:
By family
By colour
By Product group etc.

Zilka, Carlain their article on Dressing Down The Business Model; The apparel industry has
been hard hit during the recession, and the industry's cost-cutting measures may be out of
fashion(17 April, 2009), they state in detail the condition of the apparel sector and the
exhausted strategies of cost cutting measures used by them and suggests new measures as
well. This article answers the question as to how can companies truly understand their
organization's "health," especially when visible symptoms may or may not be obvious.
Global Luxury Apparel Retailers Eyeing Indian Markets, (Edit Article | 13 Jan, 2010) mostly
talks about the situation of the apparel sector and regarding the International Majors that are
in talks With Indian players to target aspirational but Value-Conscious Consumers. Especially
regarding Shoppers stop and how they are planning to bring in more foreign brands.
Gupta and Swati, (23 July, 2010) in their wonderful article on Deviant Displays - New Trend
in Window Fashion speak about the new trend that has started, where the deviant window
displays are created to look creepy to grab attention. the article gives detailed information on
what, how, when and Do's and Don'ts of deviant display.

Hemanth Y. In his paper on Reshaping the Apparel Business, focuses briefly on the recent
trends which are followed in Apparel retailing. Retail business in India has transformed from
traditional mom and pop stores to big retail chains. We can witness the fact in this article
what factors are going to bring about a change in the retail sector with special reference to
Apparels. The paper gives a thought towards new trends followed in Apparel Retailing.

Tappal Babu in his paper on Visual Merchandising states that Visual merchandising is a
comparatively new career field in which has sprung up with the growing popularity of
window and floor displays. Visual merchandisers main area of work is to create impossible
window displays. They can find employment with fashion boutiques, shopping malls,

euphoria etc. They are also engaged as shop floor mangers. They can also do freelancing on
contract basis for windows displays in exhibitions, fares, and other places. Other career
options under this head are production coordinator, quality control supervisor, fashion
retailer, export manger etc.

Based on the literature review, following hypothesis is developed:

H1: Discount is very effective in inducing customer response like (a) visit to store, (b)
purchase of the product, (c) purchase earlier than planned, (d) stockpiling, (e) spending more
per visit, (f) product trial and (g) brand switching.
H2: Price off is very effective in inducing customer response like (a) visit to store, (b)
purchase of the product, (c) stockpiling, (d) purchase earlier than planned, (e) spending more
per visit, (f) product trial and (g) brand switching.
H3: Buy-One-Get-One-Free is very effective in inducing customer response like (a) visit to
store, (b) purchase of the product, (c) stockpiling, (d) purchase earlier than planned, (e)
spending more per visit, (f) product trial and (g) brand switching.
H4: There is no difference among all the three sales promotion schemes to induce buying
behaviour among the consumers.

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