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Branding the Experiences: Semiotic Exploration of Retail Outlets

Submitted to

ICRB organized by IMT, Ghaziabad on November 19-22, 2008 at IMT, Ghaziabad.

Authors: Dr. Mini Mathur, Assistant Professor, Retail Dr. Manaswini Acharya, Assistant Professor, Marketing Communications.

Mudra Institute of Communications, Ahmedabad (MICA) Shela, Ahmedabad - 380058 Gujarat . INDIA Tel: 91 2717 237946 551

Abstract Indian retail market is experiencing a hyper-competitive stage. It therefore becomes important becomes the way the store exteriors and interiors are designed do that the customer is emotionally bonded to the retail outlet. The visual codes in the store design suggest many dimensions in the retail store designing. The designs give a meaning, like that of a product and with this design; the stores have created what semioticians call an emergent discourse in its way. It represents retail store designing in a more traditional way. So while semiotic borrowing is apparent in the field, it is not used widely or in extreme ways.

Each one of us is comfortable in our kind of store because there is a fit in the stores environment and culture and that of our own. We get a sense of belonging to a store. With new brands entering into the market everyday, product quality is inferred by the brand image of the store/ retailer than the manufacturer. Shoppers attribute symbolic meaning to the environment within the store, which in turn make up the brand personality. Everything that shoppers experience within the store adds to the retail brand. Semiotics analysis of it helps create the importance of context to the retailers.

Key words: Semiotics, Visual communication, Culture, Consumers, Atmospherics, Retail Brands.

Introduction The context of the study lies in retailing growth, the hyper competition and need to differentiate, the need to attract customers foot-fall, and convert foot-fall in to patronage. The visual codes in the store design suggest many dimensions in the retail store designing. The designs give a meaning, like that of a product and with this design; the stores have created what semioticians call an emergent discourse in its way. Hence retailing brand experience is important. In the study, we used semiotic methods to examine social and psychological cues in-store that shaped the consumers experience in the retail setting and affected product purchase for a number of outlets, ranging from supermarkets, convenience stores, specialty stores and department stores. The findings incorporated recommendations for redesigning a more consumer friendly retail space consistent with overall brand communication.

A brand is a system of meanings that consumers integrate into their personal space to satisfy unmet needs. As a branch of anthropology devoted to symbolic communication, SEMIOTICS provides methods of articulating and codifying brand communication and applying findings to marketing problems. Semiotics is a branch of anthropology focusing on symbolic communication. Experts at Marketing Semiotics are trained to identify, interpret, and leverage brand meanings for purposes of market segmentation, brand positioning, and communication strategy for advertising, retailing, and packaging.

We are moving from an economy which was products driven towards services driven. This has led to the development of the concept of branding the experiences within the retail stores. Brand recall of the store is associated with aesthetics and interiors of the store. According to Joseph Weisher, ambience, comfort and clarity go hand in hand. Hart and Murphy (1998) insist that a brand is a synthesis of all the elements, physical, aesthetic, rational and emotional, and that product attributes must be coherent, appropriate, distinctive and appealing to consumers.

Objectives: In this paper we examine the static and dynamic elements of design within a retail environment using a semiotic approach. We also examined that the role of semiotics in much importance is given to elements of atmospherics in building a retail brand and how does these elements influence shoppers in making a final buying decision and creating an experiential image in their minds.

Methodology The data source was an observation by researchers trained in semiotic analysis. Individual in-depth interviews were conducted in the city of Ahmedabad with a convenience sample of 25 people, divided approximately with same number of male and females. Age of respondents varied from 20-40 years, including PG students, housewives and working professionals. They were asked to recall their recent experience in a retail outlet, asked about the various elements of atmosphere that they felt good and bad about, what was it that they were most comfortable with. After probing on these lines, they were asked to sum up their experiences in one word/ adjective and how it differed from a similar store and the subjects preference of store. We visited the different retail outlets to develop research protocols on lifestyles in Ahmedabad. Field observation notes were of prime importance in this study as we recorded the layouts and various elements within the stores. A number of photographs of these stores taken from various parameters support our findings of the study. We then designed a consumer study that provided insights into ways the retailers could reposition their brand in the store to include user-friendly qualities such as warmth, creativity, color, and ambience while drawing upon their own brand equities. We then analyzed the interpretations of the store environment and its impact on building a brand image for the retailer. Research methodology focused on qualitative tools, including observation of 25 organized retail outlets in the city of Ahmedabad and in-

depth interview of 25 regular shoppers to these stores. Approach involved literature review in the field of semiotics and retail branding. Issues discussed were how semiotic cues are important in deciding on a store and influencing the purchase decision within the store. Value of visual cues in a retail environment to its brand image was analyzed.

We further used secondary sources as well as observational research among heavy users of the modern organized formats in different categories in several age segments in order to gauge future trends in the retail outlet category. By comparing findings in the Ahmedabad market with findings from secondary research, we tried to identify business decisions that needed to be tailored by culturally determined values and attitudes towards the target customers on the one hand and the retail outlets on the other. And the cultural differences have been determining variables. This would lead to perceptions, attitudes and beliefs get in to peoples head and thereby affecting their culture and surrounding. Using Ethnography: Tracking Brand Awareness in Ahmedabad Retail Outlets Aaker (1996) proposes that personality is concerned with consumers self-identity and as such provides a metaphor to suggest the kind of relationship the consumer might enjoy with the brand. Nevertheless Schmitt (1999a) argues that Aaker treats branding primarily as identity, and misses out on the brand as a rich source of sensory, affective and cognitive associations that result in memorable and rewarding experiences. The concept of semiotics has been extended to include any instance in which communication takes place including marketing activities as advertising, product design, new product adoption and applied to retail in-store communications. Semiotics involves the exchange of any messages whatever and of the systems of signs which underlie them including the communication of a stores image. Signs which stand for other things, or anything that can be made to stand for something else represents the key concept in semiotics. Consistent with the semiotic structure presented by Saussure the sign (or cue) is thought to comprise of the signifier, pertains to the concrete form of the component in question and the signified which involves two levels of meaning which consumers can derive from the signifier - the denotative

meaning, which involves the components capability to satisfy the consumers physical needs, and a connotative meaning, which involves non-material and imaginistic meanings applied by the consumers which correspond to the consumers psychological needs. Saussure suggests that the relationship between the signifier and the signified is arbitrary, meaning that there is often no natural connection between them. Instead, the relationship between the signifier and the signified is often determined or learned. Within this context, therefore, communicators must be familiar with the relationships between signifiers and the signified in the minds of their audience. But when considering store image, consumers within a retail store may represent such an audience. Consumers are faced with a myriad cues in a retail store as suggested by Markin et al- cues which act as communicators of the stores image. Since store layout and merchandise selection and assortment are almost always included in lists of salient attributes for the determination of a stores image it is logical to assume that these components of a retailers offerings are among the cues to which consumers are exposed. One such cue within a warehouse grocery setting may be the power aisle (Smith & Burns, 1996). According to them, consumers process of encoding price information relies in part on the environmental cues which may present themselves in association with the product or products in question.

Experiencing the store


Researchers have studied the impact of displays and store design on the sale of products in a supermarket (Wilkinson, Mason & Paksoy (1982); Gagon & Osterhaus (1985). Not much has been studied on the semiotic analysis of store design. Store design is interdisciplinary in nature. It is both an art as well as science. It derives its learnings from psychology, marketing, geography, cultural and social context. Hirschman and Holbrook (1982) state, "Hedonic consumption designates those facets of consumer behavior that relate to the multi-sensory, fantasy and emotive aspects of one's experience with products."

Store design works at subconscious levels. There are two aspects in store design marketing orientation and design orientation. While marketing orientation takes into consideration functional aspects of elements, design orientation adds to aesthetic appeal to the store. For eg. a high fixture might add to the aesthetic appeal of the store, it might not be comfortable for an average height customer to get products from its top most shelf. Store atmosphere has been found to influence different senses, predominantly visual, but also sound, smell, touch and taste in that sequence. In-depth interactions with customers revealed that they would be comfortable in a store which is as natural as possible and gives a friendly look, rather than elegant or high end. Store design is thus moving from its two dimensional approach of graphics, danglers, colors, name and logo to three dimensional experiences at the point of purchase.

The table given below summarizes the experience of the customers in various outlets.

Brand
Bandhej Flying Machine Vimal Fab India

Colors used
Earthy and warm Black, White and Red Red , White and Black White, Beige and Brown

Atmosphere/ Experience
Traditional/ Engaging/ Ethnicity Sexy / Elegant/ Powerful Elegant / Sophisticated Earthy / organic/ lots of wooden interiors

Zapp Lifestyle

Green / Pink and Orange Pink and

Colorful, lively, Friendly

Blue, Serene, cool and high end white

Predominantly interiors Adidas More Reliance Fresh Croma Mirch Masala Black and white Orange and green Green and red Grey and white

Elegant , Morbid Warmth, Sun Appealing, comfortable, Fresh Elegant, goes with the products

Red and Green/ colorful Bollywood theme/ enjoyment interiors

Lootmart Vishal Megamart Westside Next Enamor Honest Big Bazaar Subhiksha Crossword Catmoss Levis

Brown and off white Fuschia, Pink Blue and green Orange and white Shades of pink and red Red, yellow Blue Red and green Yellow and Grey Predominantly red Red

Discounted look Loud, uncomfortable Comfortable, affordable Dull, mismatch with products Beautiful and sensual Warm colors, inculcates hunger Crowded, cluttered Clumsy Serious Fun-loving, Friendly Lively

Tanishq Spencers Pantaloon

Maroon Orange Light Green

Elegant, Up-market Dull and boring Freshness and soberness

Interpretation of Data:
Studies show that retailers appeal to multiple senses of sight, sound, scent, tactile and in case of food, taste. (Langrehr, 1991). So a theatre is the metaphor used to represent a retail store. The observational study indicated that there is a brand experience represented by the colors, design, logo, punch line that were used on the faade and interiors of the retail store. The colors, marquee, windows represented on the exterior reflected in the ambience or environment within the store, while there was a mismatch in the other. Enamor, being a superspecialty store in lingerie, displays feminism to its core displaying beauty and sensuality in every visual element present in the store. The red colored couch inside the store added to the fantasy element of the merchandise. Analyzing semantically the products gain credence and meaning in relation to the other signs in form of an element inside the store. The signs communicate a feeling of sensuality. An example that would elucidate the point further is in Croma and Next the stores dealing in consumer durables, Cromas exterior and interiors gel well with the merchandise it carried as compared to Next where a mismatch was observed in its exterior and offerings inside the store. More is a supermarket for basic necessities of its target customer. The layered presentation of merchandise using available shelves indicates abundance. Orange color has been extensively used in the store on the fixtures and even packaging of its private labels.

White and focused light in the fresh produce area add to the aesthetic sensitivities and gives a visual incentive to the customer to buy more. Bulk merchandising was used off the shelf and the wall mounted posters and danglers added to the vertical presentation in the store. Overall ambience created feeling of warmth inside the store. Similarly in supermarkets, though More and Spencers use orange color as their brand identity , More was perceived to be more lively and friendly than Spencers due to the brightness in the orange color which in the relation to the elements and store design semiotically meant to bring liveliness inside the store. Similarly FabIndia and Bandhej being a concept / lifestyle store represent absolutely different images because of the environment within the store. Bandhej gives a contemporary traditional cum modern, right at the reception with the display of a picture which is relation to the meaning of the cultural context in India. The signs that post modern Indian women along with the traditionally aattire add to the meaning. The look due to the lights, music and props used inside the store, also added symbolically to the meaning of the store. While FabIndia gave a perception of organic and environment friendly store, with the natural elements, like using Khadi and cotton as the basis of their clothes. The lights give a direction to the eye movement within the store. Hidden lights behind the displays enable the customer focus more on the merchandise itself. All the props used indicate ethnicity and are available for sale. Dark mannequins add to the contemporariness and creates a visual block with aesthetics of color blocking applied to the merchandise display, adding to the high-end appeal. They offer presentation variation at an in-store display every week by showcasing the work from different regions in India. The visual balance of space is creatively designed to departmentalize different categories within the store. Raised floor in some categories differentiate it from others. Fig: 1 Entrance of Bandhej

Fig 2: The Reception: Contemporary blended with tradition

Fig 3: Ethinicity

Semiotics in shaping brand equity of a retail outlet: A semiotic dimension of brands is instrumental in building awareness, associations, and long-term customer loyalty, and contributes to trademark ownership and operational advantages such as channel and media clout. Thus researchers have seen in the recent past that, managing brand equity means managing brand semiotics. So a brand can be defined as a system of signs and symbols that engages the consumer in an imaginary/symbolic process that contributes tangible value to a product offering. This process may include a vicarious experience, a relationship, or need fulfillment and may operate at the levels of product, price, promotion, or placement. Semiotics is thus a cornerstone of experiencing a brand , since symbolic communication ties consumption to the form of brand communication in advertising, packaging, and brand logo. The above study shows the importance of the in store lay out in the decision factor of the consumer as to which store would he/she prefer according to the feelings, at a retail outlet.

Consumer Attitude in shaping the behavior in a store: Semiotic theories and methods can be used to identify trends in popular culture, to understand how consumer attitudes and behavior are formed in relation to popular culture, including brands, and how marketing and advertising programs can best meet the needs of consumers by improving communication with the end user. Communicating a

brand plays a significant role in building a relationship with the consumer, a relationship that should be developed and sustained across other points of contact with the brand. And thus affecting that the communicative intentional action of the addresser is left for the consumer to brand the experience across in the surroundings and the way the brand is placed in the store. The link between the semiotic variables and shopper behavior is the result of his/her demonstrative reaction to elements in the retail environment. Though analysis of brands in print and television advertising is the most obvious application of semiotics, this methodology makes a science out of integrating brand communication across other marketing occasions, such as packaging, retail display, media choices, and even sponsored events.

Great experience brands generate customer excitement by offering their customer more than a mundane experience. (Ko Floor, 2007). According to Berry, customer excitement means experiencing genuine pleasure in interacting with the retailer as a result of freshness and creativity of the store, merchandise and/or employees. Its a coordinated effort of different elements within the store that contribute to the overall brand experiences. These brand experiences are recalled by the customer and s/he patronizes the store. Thus helps in retaining customers. Pine and Gulmore (1999) point out two elements in a retail environment Static and dynamic. Static refers to the stationery element in the store affecting the senses of the shoppers, dynamic refers to the customers involvement/ interaction with different

elements. Having a clean and pleasant looking trial room in a department store is static element while the comfort and convenience elements added in the trial room for customers usage in terms of his/her interaction would be dynamic.

Semiotics and Retailing:

Information overload abounds, as designing retail outlets. People, who are the receivers of the information forced upon them from all quarters, are the reason for the existence of the in store layout design of a retail mall that persuade them to take certain actions. In other words, the attention-grabbing interiors must have or do something that differentiates it from other discourses; it must arrest the eye of the receiver.

This objective can be achieved in various ways, either by shocking the receiver or being unconventional or unpredictable. But it can be said that people are more prone to react and respond to situations and ideas that fall within their frames of reference, in other words their cultural orientation. Culture has the most impact on their receivers, irrespective of whether these markers have positive or negative meanings or value.

As seen in the study and shown in detail the sign, object, and interpretant (or interpretation) must be manipulated in such a way that the receiver immediately recognizes the logo of an outlet either through a uniformity in colour as in case of the Aditya Birla groups outlet more or brand to generate a specific meaning and thus a message. This is especially applicable to outlets aimed at a young market; the savvy generation as in case of the local retail outlets Bandhej are streetwise about what

colour, design is about and what it does; therefore this market has to be coaxed and challenged in another way to buy the product through the retail design.

The assumption is that culture is all of one piece. There is a cultural system -- a common set of assumptions, beliefs and symbols called codes -- which marks all the products of the culture: fashion, food, music, advertising, movies, and television shows. The codes are taken for granted and embedded in mans behavior that s/he does not realise. Semioticians drag the unconscious messages being transmitted into consciousness by isolating and identifying the signs to constitute the message. The translator has a double role: as semiotician and as transference agent or translator. The translator must create a similar effect on the receivers in the target language.

Semiotics gives the translator of a retail outlet a better understanding of the intrinsic appeal of designing the retail outlet, in other words how the different elements and parts work together as a discourse to perform a certain function, and thus a message and effect. Furthermore, the translator gets additional insight into the receivers who might respond to the advertisements, go to the outlet and buy the product, and make an estimate of the bond the consumer will form with the outlet that he would associate with most of the times.

While the above variables were quite feasible in most of the cases in Ahmedabad. A shortcoming of this approach was that advertisements, as a discourse, are dynamic. It might not always be obvious that a specific discourse is an advertisement. Thus the translator might not treat that particular discourse as such. Another problem is that the translator might not be fully adapted to deal with cultural nuances in the target language, and may consequently use signs that have an adverse effect on the target receivers by not generating an equivalent message (of the source message).

Although only a few examples of retail outlets were analysed, it can be said that Semiotic Interpretaion can (and should be) translated in terms of semiotic guidelines, if cultural codes are at work and as such evident. Some outlets strive towards a state of non-cultural categorisation: in other words the interiors, light, colour, music focuses on emotions rather than objects or ideas.

In the case of retail advertisements (which could border on informative advertisements rather than persuasive) cultural signs or markers are not always that apparent: the language used can be plain and without idiomatic expressions or figures of speech. (This applies to all media forms in which the advertisements appear, including in-store advertisements.) In that case a semiotic analysis would yield fewer results and the translator could rely more readily on other translation methods. In cases where cultural elements play an important role in persuasive advertisements, semiotics acts as a tool or measure to gauge the cultural elements, their signification and meaning. This information provides the translator with added insights that might not always be apparent at first sight or intuitively.

The Retail Players in the Ahmedabad Market: Big Baazar quote Isse sasta Isse acha aur kahan, Vishal Megamart quotes sabse sasta, sabse achcha advertising flyers are distinctive. They emphasize low prices, not sales. Unlike competitive flyers, which use professional models, they present "plain folks," apparently ordinary people "associates," spouses, children, parents, suppliers and customers. They also devote an inordinate amount of space to community-oriented and patriotic topics, according to the need of the season depending on the traditional and cultural festivities. The best example is Big Bazaars Sabse saste teen din during republic day. This draws our attention to the importance of retail image and retail symbolism. It is a familiar tool in advertising, services marketing and consumer research.

Semiotics and In-Store Communication:

The effect of semiotics on in-store communication can be clearly illustrated by the example of a warehouse grocery store. A warehouse grocery store, whose primary competitive advantage over conventional supermarkets is lower prices, will logically seek to convey that image to its customers. Since a stores image is based only in part on the functional cues of the store, the mere establishment of a lower pricing structure will

typically be insufficient to convey effectively this image to consumers. Instead, a retailer may need to structure the overall store environment to convey that image. Although price is unquestionably an important cue, it has been observed that environmental cues will affect consumers price perceptions. The existence of cues which act as value signals, or attributes apart from the merchandise or the pricing alone which can affect consumers perception of value - attributes which can logically include the layout and display encountered in a retail store.

The existence of value signals is of special interest in the grocery industry since the majority of supermarket shoppers lack knowledge of actual product prices. Instead, these consumers appear to encode price information in ways which provide meaning for them.

This encoding process may be based on information in addition to the actual product price itself - information which may logically be expected to include a number of environmental cues which may be encountered in the retail shopping experience. It appears, therefore, that environment cues other than actual product price may have the potential to affect the price perceived by consumers significantly. A power aisle in a warehouse grocery store may be one such attribute or cue which may affect ones price perceptions.

The power aisle may act as an environmental cue by presenting a massed out look. The power aisle provides for the display of large quantities of a relatively small number of SKUs with the goal of creating an impression that the products are available at very low prices. Indeed, the power aisle has since become synonymous with several areas of discount retailing. This identification in turn may provide consumers with a visual cue which may aid them in assigning an image to a store by providing them with a method of store categorization..

Conclusions and Implications:

Results suggest that non-verbal cues used in the in-store communications influence the decision to purchase from a particular store. This also supports the fact that about 70-75% of the purchase decisions are taken inside the store. Our analysis is based on the theories of semiotics and visual rhetoric. We examined the interaction of customers with the elements, which make up an experience, systematically and holistically.

Although semiotic analysis

of a retail outlet is not initially based on work with

consumers, findings can be tested and refined in research (using specially designed stimulus material).In this respect semiotics can be highly reassuringsetting a framework, a discipline, a structured environment for discussion, negotiation and decision making. This environment, moreover, is very much in touch with the way the world is heading towards ever greater sophistication and discrimination in relation to communications and culture.

Store design is contextual in nature, what might be successful in a space and time context might not work in another. Total experience of a retail brand is formed by a number of elements, including location, size, merchandise, services and the staff in the store. Once retailers have devised the value proposition and personality of a brand, they must give it visibility (Hendirson & Mihas, 2000) Customers are looking for a good experience in each of their visits and thus it requires flexibility and innovation in design. The mood of the customers change with the time of the day and the season, as a lot of factors interplay with each other. Gardner (1985) posits that shoppers probably select stores that induce positive moods and avoid those that create negative ones. Sherman and Smith (1986) found in a survey of shoppers that a more positive mood resulted in purchasing more items and spending more money in a store. It is important to recognize the importance of elements of store design in the cultural and social context in which they operate and customize their offerings accordingly. Though elements might change, a consistency in the shopping environment would create an universal experience across different stores from the same retailer. An integrated study of marketing, ethnography, and semiotics together would help in retail strategic decisions. As retailers offer products in a social and cultural context, importance of semiotics in the

field of retail marketing is well established. Understanding their stores semiotically would give them an edge over their competitors. Decoding the competitive propositions would be a semiotic alternative to traditional designing in the retail outlets.

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