Retailization.Brand survival in the age of retailer power.
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Brand Survival in the Age of Retailer Power
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Transcript of Retailization.Brand survival in the age of retailer power.
Brand Survival in the Age of Retailer Power
importance size
retailers are huge!
EUROPE
USA
Brazil
0 60 70 80 90
% of purchasing decisions made in store
they’re important!
Heineken Keg Can
4 3 2 1
One in 4 dollars of the US consumer’s grocery bill is spent at Wal-Mart
One in 3 pounds of the UK consumer’s grocery bill is spent at Tesco
One in 2 kroner of the Swedish consumer’s grocery bill is spent at ICA
The biggest brands has less than 1% of an average consumer’s disposable income!
they own your shoppers!
they’re Only Getting
Bigger and more
Global
they Define Consumption
they can do anything they
want
Brands 0,75%
Private Labels
4%
pl is exploding
Whoever owns the shelf owns the customers
are you being squeezed?
it challenges privilege
private label? brand?
communication
I see
I seek
I seek and avoid
In 1960, a typical US household had fewer than six channels and 37.3% of viewers watched the top show, Gunsmoke. In 2003, a typical US household had more than 100 channels and only 11,5% watched the top show, E.R. The average US consumer’s ability to recall advertised products has dropped from 35% in 1965 to 10% in 2000. AAAA can report than in 1995 it took 3 TV ads to reach 80% of women in the US. In 2000 it took 97.
‘mass channel has overtaken mass marketing’
Wal-Mart TV has 180 million monthly viewers Fifth largest US network
3 times the recall 30% more sale(s)
is awareness achievable? is awareness sustainable?
is awareness relevant?
itunes movies
itunes shows
are you being squeezed?
Individuals or situiduals?
the consumers are not helping
It is not that we need to have a jumper because it’s cold. The last thing we need is another
jumper. We’ve got wardrobes full of things. We’ve got houses full of products. But we want to have a particular one because by having it
we define ourselves
(Vittorio Radice - Welcome to the Brand Bazaar Market Leader Issue 17, Summer 2002)
they don’t need, they want
”we’re not in the coffee business serving people, we’re in the people
business serving coffee”
Howard Schultz, CEO, Starbucks
they’re shoppers, not consumers
me♥shopping
they’re only loyal to superior customer experiences
are you being squeezed?
Branding was about
establishing an emotional value
community between brand and consumer
The future is about shopping
communities
shelf
’It’s been estimated that there are 1 million SKUs (standard stocking unit) out here in America. An average supermarket has
40,000 SKUs. Now for the stunner. An average family gets 80-85% of it’s needs from 150 SKUs. That means there’s a good chance that
we’ll ignore 39,850 items in that store!’
Jack Trout Differentiate or Die; Survival in Our Era of Killer Competition, 2000
…when the consumer comes in like a shopper, there is a moment of consideration no matter what portfolio she is
looking at. And it’s a very quick pseudo-intellectual interaction made in 3 to 6 seconds
Chris Roberts, Global Retail Director, Coke
“6 seconds” The Economist April 2005
Differentiate or Die!
brands live here
‘There’s no such thing as a Power Brand
only products that sell a lot’
creating sale(s)
There are only two moments of truth, when people buy your
product and when people try your product
A.G. Lafley, CEO, P&G
Why on earth should I buy LEGO?
Why on earth should I try LEGO?
THE LEGO SQUEEZE
branding from the shelf and out
We don’t believe in above ...
... or below
image
traffic
we believe in through the line
shopping your brand
is just as important
as your brand
A
I
D
A
awareness
interest
desire
action
VS
A
D
I
A
action
desire
interest
awareness
the
retailization process
Arena
Competitive Context
The Shopper
Product Concepting
Retail Impacting
Creating Communication
Organizational Enhancing
Step 1 - Arena!
!The place you play!
defines your strategy!
where?
Proprietary distribution!
Reinventing the arena!
Coopetition!
Step 2 - Competitive Context!!
Always steal choice away from the competition!
who?
how ?
build your business on everybody else’s failures!
constantly out-innovate!
create a choice where choice has been forgotten!
Step 3 - Shopperen!!
Redefine your consumers as shoppers!
whom?
You’re always in the people first business !
Create Wants, not Needs
you’re dealing with situiduals not individuals!
Step 4 - Product concepting!!
Behind every great brand, there’s an even greater
product!
what?
Make It ClearMake an USP
Make it Stand OutreMake it Constantly
Make it MoreMake Sense
Make it TheirsMake them Beg for it
Step 5 - retail impacting!!
Shopping for your product is as important as your
product!
how?
how?
how?
how?
keep it fresh!
extend the idea !
merge the First and Second Moment of Truth!
create Clarity and Involvement!
Step 6 - creating communication!!
Make the two moments of truth the stars in your
communication show !
communicate?
communicate?
tryvertising!
burzz !
subculturization!
communitization!
Step 7 - organisation!!
To create sale(s), you must retailize your company!
how?
how?
Get Retailizing Get Curios
Get Creative Get Producting
Get Everybody Involved Get Moving
Arena
Competitive Context
The Shopper
Product Concepting
Retail Impacting
Creating Communication
Organizational Enhancing
Ready to retailize?!!
Ready to retailize?!!
