P1 and P2 visual merchandising

Nicola Kaminska

Unit 33

Nikki Echezona

Visual Merchandising

By Nicola Kaminska 1|Page

Nicola Kaminska

Unit 33

Nikki Echezona

P1: Describe the visual merchandising and display techniques used by three different types of retail outlets.

In this assignment I am going to define the visual merchandising and describe different techniques which the company use to produce them. I am also going to talk about different types of retail outlets and I am going to analyse the visual merchandising of a three companies.

What is visual merchandising?

Visual merchandising is an essential part of every business. Visual merchandising could be defined as an art of products which involves displaying them at the retail outlets. All of the companies put a lot of effort in producing and planning them. Visual merchandise involves decorating the outside and inside the storages to attract the customers. This is important part of the business as the look of the storage influence the customers’ view about the whole company. Visual merchandise is also responsible for creation of company’s image. Visual merchandising could be very powerful as it encourages the customers to buy the particular products thus increase the amount sales.

What is the purpose of visual merchandising?

There are many reason why the companies use visual merchandising. The first and the most important reason is that this catching the customers’ attention and often increase the sales.

However, visual merchandising is also used to create a unique image of the business and helps the customers to find what they looking for. It also shows what the current trends in fashion are.

What are the different types of retail outlets?

A retail outlet is a store which sells products directly to the public. The businesses which operates as a retail outlets will rather buy the products from the manufactures for the lower price instead of producing them by themselves. However, there are exceptions of it, where the companies producing the goods in their own manufactures. For the businesses which are retail outlets is very important to invests in visual merchandising as they have to attract the customers and influence their buying behaviour. There are different types of retail outlets.

 Department stores 2|Page

Nicola Kaminska

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Department store is a business which offers a range of different products. It means that the target market for this is difficult to defined as the products offered by this companies comes from many different categories. In department storages the customers are able to get most of the products which they are looking for. The examples of department stores are shops like Fenwick or John Lewis.  Discount stores Discounts storages as department storages offers a range of different products, however, the discount storages’ products are much cheaper and have lower quality. The example of discount storages could be the shop called Pound land.  Supermarket Supermarkets are storages which sell the grocery and household products. This kind of businesses usually uses the self-service basis and are much bigger than local groceries shops. The examples of this kind of retail storages are ASDA, Tesco or Waitrose.  Malls Malls also called shopping malls are large retail complex which contain a variety of small storages, restaurants and other businesses. All of the retail outlets which are allocated in the mall sells their own products and are independent businesses which usually has to pay for the place. The examples of the malls a big shopping centres like Brent Cross in London.

 Speciality stores The speciality storages are those one which sells only the particular type of products and has a small target market. For example, JD or Superdrug.  Warehouse stores This kind of storages are usually allocated in big buildings and sells products from the raw material or the good which has been manufactured. The prices of products in warehouse storages are lower and often any of the visual merchandising techniques are not used here.  Hypermarkets

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Nicola Kaminska

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Hypermarkets as supermarkets offers a variety number of products. Usually, they are allocated next to the big cities and have a big car park. Hypermarkets may also offer products like clothes, groceries and or appliances.  Franchises Franchises are businesses where the one party grands another party the right to use trademark, name and the particular business process of producing and selling the products. The franchises in most of the cases has to pay for the right to use such things. The visual merchandising for the franchises is going to be the same (same techniques, colours, posters) for every storage with the same company name. The examples of franchises could be McDonald’s, Subway and much more.  Factory outlets This kind of retail outlets sells products for the lower price. The items in factory outlets could be a little bit damaged, outdated or has been produced in to high quantity. A factory outlets specialise in selling the products from the particular business, however, some of them may sell products from different companies. For example, TK Maxx.  Cash and carry Cash and carry is a form of trade in which the products are selling from the wholesale warehouse.

This kind of retail outlets usually using the self-basis service or basis of sample by using catalogues or technology. The example of retail outlet like carry is Argos.

Different techniques of visual merchandising.  Visual and Horizontal merchandising: those two are the basis of the visual merchandising techniques. The visual merchandising is when the products are put from the top to the bottom, where horizontal merchandising is when the products are across the shelve. Both of this techniques make the shopping much easier and have the visual impacts on the products.  The pyramid technique: this technique allows the company to display more products. The focal point is always in the middle, where the rest of products are around it and are put in the shape of pyramid. Pyramiding encourage the customers to focus on the products or on the intention of the display. This technique could be used by most of the retail outlets, however, mostly it applies to small products like accessories or books.  Stacking: this technique involves getting more products from the stock to the shop floor by putting them close to each other or putting one products inside another.  Symmetry and balance: the next visual merchandising technique is symmetry and balance where all of the products, graphics, colours work together to create a symmetry. This technique makes the customers feel comfortable in company’s storage.  Consistency and repetition: this is about creating a one consistency and then repeating it. This 4|Page

Nicola Kaminska

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technique allows the customers to read everything in the small amount of time. It could also make the shopping more exciting.

Story telling: this is when the company takes different products together create a whole story. This technique encourages the customers to buy more than one product and make their shopping more interesting, exciting and easy to shop.

Colorization: colorization is about using different colours which are going to encourage to feel the customers in the certain way. Different colours have their own different meanings and may influence the customers in different way. The colours might also tell a story and are trendy.

Details-propping: this technique includes using of different details which are going to make the display more interesting and which are going to grasp attention. For example, the shop which operates in fashion industry may use furniture in its display.

Power of one: this technique involves the creation of one focal point. Here, just one product will be displayed, where the rest of details are only background. This technique work when the company want to advertise new products or want to increase the sale of unpopular products. An example of company who uses this technique often is Apple.

Power of three: power of three is technique where there is not one but three focal points.

This technique helps the customers’ eyes to read the display faster.

Graphics: graphics are also important technique in visual merchandising. Graphics are used to interest, educate and inform the customers. This kind of technique could be applying to any material and any display. They could be the wallpapers, shapes of furniture and much more.

Technology: by using flat screens and television, the company may display more products in a short period of time. This technique also makes shopping more interesting.

Fragrance of the storage: this technique is also important. The company has to take care of fragrance of the storages. If the storages wouldn’t small nice, the customers might do not come inside. The fragrance could be also unique what will help the company in building the image of it. An example of companies which has its specific fragrance are: Hollister, The White Company or Stradivarius.

Micro-merchandising: micromerchandising system plays an important role in many business retail process. This helps to draw attention to the particular products. To achieve that the company will use different type of shelving, fixture or different colour shaming.

End –cap/cross-merchandising- this technique is often used by supermarket or specific stores to sell two instead of one product. The products sometimes could be packaged together. For example, tooth brushes.

End-caps: This is when the company putting items on the end cap. For example, next to the tills.

Placing of dummies: placing of dummies is an important part of visual merchandising. The mannequins have to be allocated in the visible places or outside the storages to encourage 5|Page

Nicola Kaminska

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the customers to come inside the storages. Very important here is to display the best products which the company has.  Lighting: lighting is another example of visual merchandising technique. Lighting may create a specific atmosphere and helping in highlighting the focal points. By using different colours of light the company makes its display more interesting and grasp attention. The company called Hollister uses lighting to create specific atmosphere which is associated with the company’s products.  Type of furniture: types of furniture is also important in creating the displays. The furniture will be similar to the company and its products. So, company called the White Company will use the luxury furniture where the colour of it will be white.  Proper Space and theme displays: this technique is about creating displays in the proper space by using different types of themes. The place where the company will allocate the display has to be visible and associate to the products which the particular company is selling.

Speciality Storage – Apple Apple is an American company which sells technology. It was founded in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak and become one of the largest company in the world. Apple is also known as company who pay a lot of attention to the visual merchandising and from beginning uses the same techniques to highlight company’s values.  Colour One of the main technique which Apple use in its visual merchandising is colour. When you think about Apple the first thing which comes to your mind is the white colour. Colours can influence the buyers’ feelings and their views on the whole company. The use of certain colours by companies is never random or accidental. The companies enforce the customers to see the company in the way they want to be seen by using the particular colours. The colour which used by apple is white. This colour is associated with: goodness, innocence, purity, perfection and virginity. By using the white colour Apple makes the customers to feel that everything what company is doing is on the highest standard. The key words here are perfection and purity. Apple acknowledge its customers that all of the products are innovation, are flawless and that Apple is the pioneer in the technology industry.  Power of one The other techniques used by Apple is the power of one. On all of the Apple’s displays focus just on one product. This technique allows the company to enforce the customers to pay attention for the particular products which the company wants to sell. Apple always uses only new products for its visual merchandising. This method helps the company to introduce and increase the amount of sales of a new product. Usually, the company uses the techniques of colours and power 6|Page

Nicola Kaminska

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of one together what catches customers’ attention.

 Consistency and repetition Consistency and repetition is the other technique used by Apple. This particular method involves the repetition of the particular products or patterns. The main aim of this technique is to create an interesting pattern which is going to catch the customers’ attention and which are going to make the public to stop and think twice about the products. Apple often uses in its adverts or in its storages.  Symmetry and balance Apple uses symmetry and balance as a key visual merchandising technique. It is obvious in company’s adverts, posters and in the furniture in the Apple’s storages. Everything is symmetric and balanced. Apple uses loads of minimalism.

The pattern is easy, there is a lot of repetition. This kind of symmetry makes the shopping easy and makes the customers to feel good. It also highlighting the purity and genius of Apple company. The customers feel that Apple is much more than a company, it makes them feel that Apple is a future.

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Nicola Kaminska

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Nikki Echezona

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Nicola Kaminska

Unit 33

Nikki Echezona

Department Storage – Fenwick Fenwick is one of the independent chain of department storages which operates in UK since 1882. There are many different brands in Fenwick which often use different methods of visual merchandising. However, the company producing its own displays which promoting all of the brands or only the certain ones.

 Rule of three The first visual merchandising techniques which is often used by Fenwick is the rule of three. This method focusses on the three main elements which together creating the whole aspect of what the company wants the customers to see. This technique is one of the best as it grasps the customer’s attention very quickly. The odd number will always look better than an even one. It comfortable for the eyes and makes people look longer.

The other reason why Fenwick is using the rule of three, is the fact that this allows the company to fully show the best or most interesting products.  Story telling Story telling is also very important techniques used by company in their visual merchandising. The display which tell the story, which showing something more than the products in the shelves, is always much more interesting. It makes the customers to stop and think about it, to think what the company is trying to say. In the same time company presents its goods and offers. On the picture above we can see that Fenwick produced a display not only to represent the products, but also to send a message, to tell the story. By using the green colour and flowers, Fenwick shows its freshness and freedom.  Horizontal Merchandising Horizontal merchandising is another technique used by Fenwick. This is when the products are put across on the shelves. This technique is very useful as there is impact on the key items. The products are also put in the certain patter, so the shopping becomes much easier. This also enable the customers to see all of the products.  Colour Colour is also one of the technique which Fenwick uses in its visual merchandising. The colour which is used most frequently by this company is green. Green is associated to balance, harmony and 9|Page

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growth. Green is an emotionally positive colour and gives us the ability to love. Fenwick uses green to attract the customers and make them to come in to the storage. Because of green they feel comfortable and feel happy to come. This particular colour may also describe the main values of Fenwick which are harmony and balance. The other way in which Fenwick is using the colours are displays in the shelves. Mix of different colours are put together. This makes the customers to feel happy and relaxed what encourages them to buy more products and spend more money.

Supermarket – Marks & Spencer Marks and Spencer (M&S) is one of the major UK retailer. It was founded in 1884 and throughout the years it become one of the most powerful company in UK. However, in the beginning the company used operates only in fashion industry. In 2000/2001 the company decided to expand the business and created the Marks & Spencer simply food which is a supermarket offers the high quality groceries products.

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Horizontal Merchandising

Horizontal merchandising is when company put the products across the shelves. This kind of techniques enables the customers to buy quickly and effectively. Because of this method the potential customers can find whatever they need much quicker as in situation where the company would use another method. Horizontal merchandising also helps M&S to represent all of its products and make customers to buy them.  Prince Points Prince points is the technique in which the products are put with the larger signs next to it. M&S uses it to sell the particular products, introduce them or inform the customers about offers. This method is very good for the customers who are value-orientated and might looking for different occasions and offers. This method could also increase the number of sales for less popular products.  The Pyramid Principle The pyramid principle is the way of setting the products on the shelves. This technique is upstanding as the company is able to show more than few products in the same time. This method could be very effective, however, the display has to be nice and interesting. It should be mixed with colours and telling some kind of story. In the picture above we can see how M&S uses the pyramid principle. The 10 | P a g e

Nicola Kaminska

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products displayed on the shelves a connected to each other. When the customers will see the things which going with wine is more likely that they going to buy this product.

Conclusion In conclusion, visual merchandising is display of products by using different techniques. Visual merchandising is essential for every business as it helps company in advertisement of products thus increase the sales. It also helps in creation of a unique image of company. The examples of different visual merchandising methods are: lighting, visual and horizontal merchandising, the power of three and much more. To create an interesting and successful display the companies hat to use the combination of all techniques.

P2: Describe how visual merchandising techniques are applied to a range of goods in three different retail outlets In this assignment I am going to describe how visual merchandising techniques applied to a range of good for the three different retail outlets: Apple, Fenwick and Marks and Spence. I am going to describe different goods and then I will look at the way how the three companies visual merchandising them and what techniques they using All of the retail outlets specialising in different types of products. Some of them may offers all of the types of good, where other could offers just few or one specific type of good. Now I will describe all of the types of goods. 

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Impulse goods: This kind of goods are bought by customers without intention. They will buy this kind of products by impulse without forethought. They are usually placed next to the tills. convenience goods: These products are essential for most of the customers and are easily obtained. The prices of convenience products are low and are accessible for all of the customers. search and compare lines: This is when the customers find interests in products by searching them on websites of the retail directly or search them using shopping search engine like Amazon. speciality goods: those products are unique and specify in the particular area. Quite often they are expensive and luxury. However, they are good enough to encourage people to buy them. complementary merchandise placement: this are good which had to be consumed with other good. seasonal goods: this kind of goods are available only in certain time of a year or are available throughout the year but which changes in quantity and prices which are linked to the seasons.

Apple

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Nicola Kaminska

Unit 33

Nikki Echezona

Apple is a specific store which sell technology like iPhones or iPads. This kind of goods are named speciality good. The prices of Apple’s products are high and not everyone may be able to buy them. However, Apple is one of the pioneer in technology industry and earn millions every year. One of the key to success is an appropriate visual merchandising to advertising those products. The most popular techniques which are used for speciality goods are: the power of one, the power of three, storytelling, technology and colorization. Apple use the power of three and the power of one to grasp the customers’ attention. The company presents its products in certain way to highlight its luxury and high standards of products. The displays usually, describing the story of how the products have been created and what made them so outstanding. Very important part of visual merchandising in Apple store is the fact that company uses high technology like television which has been created by the company. The perfect view on the screen show the customers high good are Apple’s product thus encourages them to buy it.

The products which Apple is selling could be also called search and compare lines.

Half of the products of Apple are purchased online usually via Apple website. The visual merchandising of online products is also very important. The technique which Apple uses most frequently here is symmetry and repetition, graphics, power of three, power of one, colorization, cross-merchandising and history telling. The new and most expensive products are displayed at the top bit of website by using the power of one, the power of three and symmetry and repetition techniques. From the really start the customers are persuade to buy the products. The other important technique which is used for good called search and compare lines is cross-merchandising. By using this technique Apple links, the products which comes together. So, if someone is looking at the iPhone 6 the thing which is going to be show next to it are going to be accessories to this specific phone.

Fenwick Fenwick is a department store which offers a certain number of products. There are many different types of good which Fenwick is selling. The first types of products which I would like to describe are impulse products. This kind of products are important as very often people buy something what they didn’t 12 | P a g e

Nicola Kaminska

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mean to. The impulse goods are usually allocated next to the till. The main techniques which are used for this products are visual and horizontal merchandising and colorization. Those kind of products have to be easy and quick to shop. So, the techniques above are great for impulse products.

The other type of goods which Fenwick is selling are seasonal goods. Fenwick has a huge number of products, where loads of them the company is selling only for one season or in the whole year but in different prices. The main visual merchandising techniques used here are placement of dummies and cross-merchandising. The products which are seasonal will be always placed in the most visible places as Fenwick will want to sell them as quickly and as much as is possible. The reason why is that the seasonal products which are not going to be sold on time will have to stay in the stock for a long time. The cross-merchandising is used here, because the season things often comes together. For example, in winter time the scarfs and gloves are going to be put next to each other.

Marks & Spencer simply food.

Marks & Spencer (M&S) simply food is a supermarket and offers a range number of product which are used in household. Convenience goods are ex example of M&S products. The convenience goods are those which are easy to obtain. The examples are groceries and cosmetics. There are many techniques which M&S may use in visual merchandising. However, the most common are: horizontal and visual merchandising, cross-merchandising, colorization, end-caps and pyramid technique. This kind of products should be easy to buy.

This is why M&S uses the pyramid principle and visual and horizontal merchandising. Because these products are very popular the customers will want to find them quickly. The colorization and end-cups technique will help in it.

The other goods which are in M&S offer are goods called complement merchandise placement. Those are kind of good has to be always consumed with another product. For example, bread or pasta. One of the most important visual merchandising technique here is cross merchandising. The products which go together are put together, so the customers are more likely to buy more. For example, the bread may be next to the jam or butter.

In conclusion, there are different types of goods which needs different techniques of visual merchandising. To be successful the company has to recognize which techniques are going to be the best for their products and use them in the best way possible.

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