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Demonstrations of new products and services.

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Demonstrations of new products and services.

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In store demonstrations of products are used in stores for short periods of time to promote sales of specific goods. Businesses may use them when advertising a new product to grab the attention from customers.

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John Lewis has created a luxury style through introducing lighting under products. This makes them to stand out. Tk Maxx has limited the amount of lights being used in their stores and only has normal shop lights. John Lewis have clearly shown that they are highlighting luxury products. Tk Maxx could consider having more lighting in store to be as successful as John Lewis. I believe that Tk Maxx has been successful because their store doesn't come off as high end. This is an  effective way to increase sales.

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The colours that John Lewis in store is the same as the logo colours, this has helped customers to recognise the brand. Whereas Tk Maxx has used white and wooden flooring with accessioning the store in red and orange, for example they have used orange balloons. These are something that the customers will recognise. This is an  effective way to increase sales.

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Digital Media can be used by audio, video or images.

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This is a form of electronic note pads and tablets that are available for customers to us. This can be for the customer to obtain more information about a product or in some cases to call the shop assistants over.

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Electronic displays are set up to display key messages and information using TV screens. The content which is used can change throughout the day and to make sure that the key messages are displayed at set times. This reduces the use of paper and the out-of-date material that is used.

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A QR code is something that holds a huge amount of information about a certain type of product. Anyone can use the QR code by their smartphones.

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Some retailers have distinct colour schemes that are instantly recognisable. John Lewis was Green and White and is now Black and White. Tk Maxx is Orange and Red.

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This can vary from store to store and can even vary between parts of the store. For Example, recessed lighting on shelves that hold shoes.

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P3:Explain how psychological techniques are used by two contrasting retail outlets.

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P3:Explain how psychological techniques are used by two contrasting retail outlets.

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This report is also on turnitin

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Electronic displays work well in areas where the customers is waiting or requiring specific information. For Example shopping centers often use TV screens to display up-to-date information such as special events that are scheduled or any special offers that retailers may have on that day. Both retailers John Lewis and Tk Maxx use electronic displays in their stores, in order to promote their new products or latest promotions. They have also reduced the costs of paper and staff  to advertise the stores promotions and therefore seen the increase of the profits.

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Electronic displays to broadcast in store advertising messages and information on services.

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Electronic displays to broadcast in store advertising messages and information on services.

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Electronic displays are set up to display key messages and information using TV screens. The content which is used can change throughout the day and to make sure that the key messages are displayed at set times. This reduces the use of paper and the out-of-date material that is used.

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D1: Evaluate the extent to which different visual merchandising and display techniques contribute to the success of two contrasting businesses.

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D1: Evaluate the extent to which different visual merchandising and display techniques contribute to the success of two contrasting businesses.

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Lighting, colour, hotspots are all important physical attributes towards a brand. Storytelling is creating a world which customers can participate in. The storytelling needs a mission statement and businesses should make their company stand out to the rest. At the moment Tk Maxx currently do not use these methods and could be something that they can consider to implement like John Lewis. This is an  effective way to increase sales. I believe that Tk Maxx will increase their sales with the using storytelling, this of course must relate to the store and the style of the store.  I believe that John Lewis has done this with creating a warm and friendly environment through their displays and have made sure that they that it fits the style of the store. Of course the mission statement has to relate to the store and it needs to be the focal point.

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Hotspot can increase sales by 229% so it helps sales to increase. Its important that the design of the store is designed to draw the eye of the customers to a specific point. When businesses are creating the displays they need to make sure that the focal point is clear to the customers.  When looking at John Lewis and Tk Maxx.  You can tell that both businesses use different types of techniques. John Lewis has currently use this method throughout their stores. This is an  effective way to increase sales.

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Exposure is where the customer is exposed to as much merchandise as possible. Exposure has three elements which are crucial in Visual Merchandising. They may include wayfinding signage, primary & ambient lighting and eye-level displays. All are key parts of exposure. At the moment Tk Maxx mainly focus on the signage in store. They have also used eye level displays to displays there products. John Lewis have also used some of the elements that impact visual merchandising. They have focused on ambient lighting and eye exposure in store. Overall both stores seem to focus on some of the elements of exposure, but have used them effectively. This has been a effective way to increase sales.

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Colour can play a huge part in VM, this can help with emotional responses in a consumers thought process when deciding to buy a products. Research has been found that the impact of colour has an impact on the human brain. As colour can stimulate the brain to excite, calm and to soothe. John Lewis has used different types of colours to creates an emotional response and could be something that Tk Maxx can do to create a better emotional response for the customers. This is an  effective way to increase sales.

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Many retailers take advantage of the Seasonal events throughout the year. These seasonal events allow shops to become creative in their window displays. For example the Chelsea in Bloom make an extreme effort for seasonal events. Also Selfridges creates a good window display and they have large budget compared to companies like Argos and QD. Many expensive companies like Selfridges have a simple display which can focus on the eye-catching branding. This is an  effective way to increase sales. Both John Lewis and Tk Maxx need to create a window display that relates to their business store.

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The approach to visual merchandising is to attract, engage and motivate customers to make a purchase in store. It's the physical storytelling which creates a strong brand identity in store. The five different steps to VM are:
* Window
* Colour
* Exposure
* Hotspot
* Storytelling
All of these elements have been used by both companies. Which has shown how successful VM is.

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D2:  Evaluate how psychological and technological techniques are used to increase business success.

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D2:  Evaluate how psychological and technological techniques are used to increase business success.

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Digital media is used by a variety of methods in audio, video and images. John Lewis have used forms of digital media to promote their products. Currently they do not use audio to communicate their promotions but can be something that they can consider. Tk Maxx has used audio to communicate promotions across the store for the customers. This has been an effective way to promote their products and a effective way to increase sales.

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Digital Media can be used by audio, video or images.

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QR code can be found on packages, brochures, leaflets or posters. The QR code us used by companies promoting their products, services or business to enable the customer to obtain more information.  John Lewis have introduced QR codes and have introduced a virtual QR store where customers can scan the QR code from the window display. This has been proven to be an effective way for customers to scan the items that they sell. Tk Maxx have used QR codes on the back of certain products, e.g. homeware products. This gives the customers more information about the product and is easier to use the QR code than searching on the information. This gives customers information on the spot and would be more tempted to buy the products. This is an  effective way to increase sales.

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A QR code is something that holds a huge amount of information about a certain type of product. Anyone can use the QR code by their smartphones.

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Touchscreen can be used as way for customers to be independent when purchasing goods or finding goods in a store.

John Lewis have used touchscreens in stores for customers to find products and have a touchscreen map in store to find each department. Currently Tk Maxx don’t use any interactive point of sale. This could be something that the company could use as a way for the customers to be dependent. At the moment Tk Maxx use electronic display boards and has proven to be successful and this could be a potential idea for them to expand into.  This is an  effective way to increase sales.

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This is a form of electronic note pads and tablets that are available for customers to us. This can be for the customer to obtain more information about a product or in some cases to call the shop assistants over.  This is an  effective way to increase sales.

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M2: Analyse how psychological and technological techniques are used to increase business success.

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M2: Analyse how psychological and technological techniques are used to increase business success.

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M1: Analyse the different approaches to visual merchandising used by contrasting businesses, supported by independent research.

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M1: Analyse the different approaches to visual merchandising used by contrasting businesses, supported by independent research.

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Light: the amount of lighting can change the impact of the product making it look cheaper or making it look expensive. For example, clothing/fashion stores will be promoting the latest color schemes and so the lighting may distract the product and therefore use limited lighting, but should enhance the product.

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They have only used music to create a friendly environment in store. The music which is used creates a calming atmosphere in store. They have limited the use of mirrors and lighting to create a luxury or friendly environment.

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Tk Maxx have used very limited lighting, colour, texture and shapes in store. This shows that the store is affordable .

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John Lewis have limited lighting in-store and have focused lights around the products, i.e product display tables. The use of the limited lights have an effect because it highlights how important the products are.

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John Lewis have used some of the features to create a luxury atmosphere in store. They have used mirrors and lighting as a main feature of the store  feeling. For example the use of the mirrors in store creates a luxury environment and also makes the store feel bigger and offers more luxury items. The use of lighting in store has also helped John Lewis to create a luxury atmosphere. They have spotlight on product display units, to show a luxury feel.

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lights, colour, texture and shapes are influenced in the way the customers view products.

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Music, mirrors and lighting enhance the atmosphere of the store.

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Intangible is what creates the atmosphere for the customers. It focuses on the customer's feeling, perceptions and subconscious mind. Retailers can create innovative and creative display that are effective and increase the customers buying desire.

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In-store announcements are ways to give the latest news to the customers.
* Reduced items
* offers and promotions
* new products

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Tk Maxx use voice to communicate promotions across the store for the customers. This is a effective way to promote their products.

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John Lewis on the other hand use signage to promote there promotions. Currently they do not use voice to communicate their promotions but could be something that they could use as way of promoting their promotions.

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Promotional message is a way to grab their customers in the clearest and quickest way in order for the promotions to be effective. Retailer cans do this by displaying products themselves or through the use of signage and other point of sale materials.

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Tk Maxx locate their shops in town centers and in retail parks similar to John Lewis. Tk Maxx locate their stores based on the demand in the area. They have more shops located in England due to the demand of affordable luxury items.

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John Lewis have shops all around the country. They place their stores in town centers and retail parks. They place their stores in retail parks because the demand and competition is their.

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Location can mean the success or the failure of a business. If the business is in the middle of town center or in the right location the business is more likely to be a success. Having a poor location can have a knock on effect on the business.

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Tangible can vary in many forms and it will depend on the products or services being displayed as to which would be to most appropriate and effective.

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Psychological techniques is used by retailers, which can be seen through different types of display and products placement. These techniques can either be tangible or intangible.

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P3:Explain how psychological techniques are used by two contrasting retail outlets.

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P3:Explain how psychological techniques are used by two contrasting retail outlets.

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This word document features the use of psychology of visual merchandising in How customers are influenced by the use of visual merchandising and the Effective use of an environment’s design. I have also related this to my two companies, John Lewis and Tk Maxx.

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The photo shows a point of sale which shows a display unit. John Lewis have listed an A5 size of paper which has all the details of the products for sale on the sheet.

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As you can see that the photo shows a John Lewis store display unit.

The display unit which is shown seem to be un-sturdy with the circles been held by the poles.  This could be a hazard for the customers.

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Placing products can determine with a retail environment and arranging displays. Health and Safety is important when considering displays.

John Lewis & Tk Maxx - When John Lewis are displaying product, they must ensure that they have followed the correct producers when displaying products. For example, products which are placed must be placed at safe height and any display units that need two hands can not place items above waist height on shelf and wall.

Additionally both companies must ensure that all display units are made stable by distributing the weight of the display. They will also need to take in account the space needed for the display unit, making sure it's large enough space around the display.

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Price Marking Orders (2004) - There is an obligation to include the selling price of all products in pounds sterling and it must be easy for the customer to clearly see. Other information that is displayed on the ticket includes the quantity ( items such as size, composition and origin)

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The label on a product gives the customers information about the product. Which may have a direct approach on whether or not they will buy it. The main types of product labelling.

Quality: This could be the number of items in a packet or the weight or the volume.

Size: This could be the size of dress size, shoe size, dimensions of a piece of furniture. E.G. measurements are crucial part in knowing the size of the products, enabling the customers to decide whether it will meet their requirements.

Composition: The material of the what the product is made from is important to the customers. They may meant to know what material is because of culture beliefs, E.G. vegans don't touch leather for the beliefs that they follow.

Origin: The place of where the item is from is important to the customer. E.G. food labels sate where the products come from.

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P2: Explain how visual merchandising is affected by legal and safety regulations.

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P2: Explain how visual merchandising is affected by legal and safety regulations.

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For John Lewis & Tk Maxx

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Example of Product Placement of Burberry

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Example of Product Placement of Burberry

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Burberry is a luxury store and looking at the store image and it does not display any visual merchandising throughout the window display. They have a bright blue Burberry pattern on the window.  This makes it more exclusive and private. Looking through the doors you can see the different lighting which has been used and the amount space in the store. This shows that the store does not have use visual merchandising in the windows as they can place the displays around the store.

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1. window display

2. outside toilets

3. middle of store

4. near staircases

5. tills

6. ceilings

7. walls and floor space

8. outside

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P1 : Investigate the visual merchandising and display techniques that can be used in retail outlets.

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P1 : Investigate the visual merchandising and display techniques that can be used in retail outlets.

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Advantages & Disadvantages

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1. Product

2. Environment

3. Space

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1. Catching the public eye

2. about the sale

3. attention grabbing

4. promotion

5. Displays

6. The way the public buy

7. Store windows

8. Maximize sales

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Visual merchandising is displaying products and service in a way designed to attract customers attention.