Private Brand with Big ‚B’Agnieszka Krok, Head of Creative, Krzysztof Śpiewla, PR Manager

Private Label Made in Europe Fair and Conference

Copyright © Eura7 Sp. z o.o. Wszelkie prawa zastrzeżone. All rights reserved

Abanana

We’re building the wolrd of new media. Testing and using modern solutions in scope of web technology, strategy and creative solutions . We love to share our knowledge.

Creative solutionsMARKETING

Actual problems of retail chainsSTRATEGIC OUTLOOK

Concentration

MarginDifferentiati

on

01 EVERY YEAR IN

POLAND 5% OF STRES CLOSE.

02 PRICE PRESSION 03 NUMBER OF CHAINS

GROW

Fot. Nicholas Eckhart@Flickr, lic. CC BY 2.0

PROBLEM:

ConcentrationLid est laborum dolo rumes fugats untras. Etharums ser quidem rerum facilis dolores nemis omnis fugats vitaes nemo minima rerums unsers sadips amets.. Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium. 1

45%CONCEPT

20%

AWESOME TEAMCREATIVE

Lid est laborum dolo rumes fugats untras.

AWESOME TEAMCREATIVE

Lid est laborum dolo rumes fugats untras.

CONSEQUENCE:

STRONGER COMPETITION

2PRICE PRESSION

3SMALLER NEGOTIATION SPACE

TARGETCOSTUMER

TARGETCOSTUMER

35%

55%

Dynamics of retail chains in PolandSource: dr Urszula Kłosiewicz-Górecka, prof. IBRKK, Zmiany w handlu w okresie chwiejnego rozwoju gospodarczego Polski, March 2nd, 2015

Structure of retail spaces in Poland. Source: Rynek wewnętrzny w 2013 r. Informacje i opracowania statystyczne. GUS

ProfitabilityPROBLEM:

Retail chains are looping in chase after the best price, and they don’t know how to get out of this trap.Marek Dąbrowiecki, Storck, in an interview for Portal Spożywczy, 18th of June

Changes of added value in retail market, according to National

Census

Among 200, 43 examined businesses reported loss in 2013.Portal Spożywczy after Bisnode Polska, February, 27th

//01

Friendly, neighbor’s, close, fresh….

DifferentiationPROBLEM:

Private labelTHE SOLUTION CAN BE A

How?

Exit price wars: Prices distinctly higher than by competiotors.

Sales value growth, supporting the chain brand, increase of consumer loyalty: PL sales double in 2 years.

Be localWELL-THINKED STRATEGY

Company value maximalization, before it’s sale: Succesfull fusion with Walgreens.

4 category brands.

2 of them directly connected to New York

Others – supporting chain’s „new-yorkness” with additional attributes.

Private labels system:

Challenges and effects:

Specialist private brand

Taking the highger shelf in wide scope of categories, to maximize margin.

Podbudowanie wizerunku sieci. Reconstruction of chain’s image.

Reflets de FranceSECTOR BRAND:

Complement of chain’s offer, export.

High quality.

Making-of: well-known chef, producers, meetings, regional conotations.

Content richness in on-line communication.

Brand and communication:

Challenges and effects:

When private label pulls the chain

14,3 million views of the 14,3 million views of the basic videobasic video

11,7 million views of e-11,7 million views of e-postcardspostcards

Watch in Youtubehttps://www.youtube.com/watch?v=jxVcgDMBU94

What about small chains?ALL RIGHT, BUT…

Wisconsin Master’s MarkWhether on point-of-sale materials … or prominently displayed on cheese packaging, the Wisconsin Master’s Mark serves as a point of differentiation to add value to their cheese display.

Wegmans Food MarketsWegmans Food Markets, Rochester, N.Y., is another example, Wisner states, boasting plenty of chef-inspired, can-buy-it-only-here items and loads of merchandising and marketing support to back them up.

Garden Fresh MarketIn addition to offering hard-to-match

prices on quality produce, differentiates itself via hard-to-find ethnic foods.

Trader Joe’sThink of … somebody like Trader Joe’s, who

essentially has converted the whole store into a store of destination items.

Trader Jose’s is for Mexican cuisine, condiments, and even beer; Trader Giotto’s

is an Italian line that includes pasta, pizza and bruschetta; and Trader Joe-san’s is for

Japanese cuisine. It also has Trader Darwin’s, which is a brand of vitamins and

health supplements.

Źródłahttp://www.fullsurge.com/perspectives/articles/brand/best-practices-private-label-branding

http://www.storebrands.info/store-brand-insights/special-features/why-bother

And if you don’t have an American budget…

…you have digital communication

Store reach space– 28,27×50=1 414 km2

Radio reach space – ok. 15 387 km2

What about the reach?OVERCOMING DIFFICULTIES

Ineffective radio reach: 1414÷15387=91,8%

Radio campaign expenses vs. chain map. Assumed: store reach radius = 3 km.

Campaign simulation

LET’S GET BACK TO THE EXAMPLE

//01

44%PAID REACH

EARNED REACH – E-CARDS.

EARNED REACH – SPOT

How much EDEKA paid for their campaign?

12%

44%

Internet is better

//01

37%

Cheaper

2

Senses engaged

+20..+60%

Viral reach

1

Using only 1 of many ways of

targeting

Take advantage of what you haveCHANNELS YOU ALREADY USE

//01

E-Mailing FlyersWWW, apps Social media Packaging Store

Not only product-price

Build your image.

Build consumer loyalty.

E-mailingYOUR CHANNEL

Shape sales.

Private Label:

„Justifies” chain brand.

Takes advantage of the channel.

Comprises the whole communication.

Website

Vastness of contentVastness of content

Reason to believe, reason to Reason to believe, reason to buybuy

Strictly bound with the Strictly bound with the productproduct

Connected with other Connected with other activities: social media, activities: social media, events etc.events etc.

RemarketingRemarketing

Integrate!Integrate!

Useful tool for both channel and the consumer

Build image.

Build loyalty.

ApplicationYOUR CHANNEL

Shape sales.

For private brands:

Suggesting products in shopping list, replacemnent lists

Using wide possibilities to show up

Easy use of social media

Closer communication builds-up relations

FB is the firstplace to contact or complain

Social mediaYOUR CHANNEL

We do take friends’ opinions in account.

Facebook is also a medium to make reach

Instagram

Blogs and vlogs

Leaflet or… magazineYOUR CHANNEL

Build your image.

Build consumer loyalty.

Shape sales.

Private Label:

„Justifies” chain brand.

Takes advantage of the channel.

Comprises the whole communication.

Augmented reality

QR codes

pACKAGINGYOUR CHANNEL

NFC

Beacons

2 times better app conversion (Walgreens). 6 times more app users (Carrefour)

28% more footfall (Walgreens)

In storeYOUR CHANNEL

Incredibble analytical opportunities

Private Labels:

Detailed analytics of connections between foofall, sales and marketing activities

Consumer engagement

Full in-store consumer guidance

Fot. materiały prasowe Estimote

//01

1

3

5

2

4

6

02 EXACT REACH:

In right place, in right time, directly to the right people

04 PERFORMANCE

Using tools which support buying decisions

06 FEEDBACK

To improve effects

BRAND STORY 01In very capacious media

MEASURING AND

RESEARCH05Connecting data about people,

search, communications

EMOTIONALLY ENGAGING 03Thanks to social and traditional

media

„Integration – thank to InternetTHE POINT IS NOT TO HAVE A LOT

//01

1

3

5

2

4

6

02 PERSONALITY

04 CULTURE

06 CONSUMER’S SELF-IMAGE

PHYSICAL FEATURES 01

REFLECTION 05

RELATIONS 03

Build complete brand easily

Create real private Brands – it profits:

//01

Helping to avoid price pression.

To strenghten market position.

To build loyalty.

Thank you

Agnieszka Krok, Krzysztof Śpiewla

+48122923333 www.abanana.plwww.eura7.com

info@eura7.com