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?!!

thank you for your attention!!

[email protected]