Best Retail
                                               Brands 2009
                                               Glob...
Contents
                                                                                                 Weathering
p01 I...
Overview
                               The Best Retail Brands has taught us that a brand
                               i...
Building                                                                                                                  ...
In 2007, Internet retailing                                                                                               ...
Creating value in-store:                                                                                 Shoppers are what...
Best Retail Brands 2009
Best Retail Brands 2009
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Best Retail Brands 2009
Best Retail Brands 2009
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Best Retail Brands 2009

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The study is an excellent reference for the 2009 top global retail brands. The study includes a profile of the top 50 global brands !

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Best Retail Brands 2009

  1. 1. Best Retail Brands 2009 Global perspectives on a changing marketplace Regional challenges, trends, and insights The remaking of retail CPG: stand out or get out Creating and managing Getting more for less www.interbrand.com brand value TM
  2. 2. Contents Weathering p01 Introduction: weathering the storm A letter from Jez Frampton. p03 Overview p30 The remaking of retail by Lee Carpenter and Greg Silverman Resources are limited and tension is high. The time is ripe for retail innovation. the storm Creating and managing brand value. Jez Frampton p32 How we value retail brands p04 Building retail brands by Criteria for consideration and methodology. Lee Carpenter, Jean-Baptiste Danet and Stuart Green p34 The Best Retail Brands 2009 A look at retail challenges and the future of Profiles of the most valuable retail brands in retail brands in three regions. the U.S., Canada, Mexico, and Europe. Making sense of the economic turmoil of and the all important human interaction. Their habits and behaviors will continue to recent months will take time and a degree I would say, a recipe for great innovation adapt to the technologies available to them p08 Creating value in-store by Kelly Crouch of hindsight that most business leaders and opportunity! and to the truths about our lifestyles and and Emily Grant Appendix just don’t possess at the moment. Our habits exposed by the recent economic, Why brands should focus on shoppers’ needs attention must focus on the immediate As the rankings in this magazine show, social, and environment events. Getting a in downturns. Commonly asked questions needs of businesses and brands in real retailers are now actively managing their grip on this fast changing world and feeling time. History alone will deal with the rest. brands and creating valuable business assets. confident that your brand can sail through p10 Getting more for more by About Interbrand and our Best Retail And the world of branding has changed too. these stormy seas requires a strategy that Bruce Dybvad and Rune Gustafson Brands study We’ve focused on retail in this edition Data is used to build the business case for is based on today’s truths rather than Cutting price in downturns isn’t an answer— of the Interbrand magazine because it brands, to highlight the initiatives within a yesterday’s assumptions. It requires a focus on the shopper experience instead. Contact us is a powerful barometer of economic strategy, and to build ROI models into brand strategy that is delivered in stores and lives sentiment. The dramatic differences in programs, not to mention the monitoring in customers’ heads, not well intentioned p14 Best practices by Lynn Gonsior and the fortunes of the various High Street or and active management of brand value documents and plans. Françoise Novel Main Street players highlight the mood of creation. This means that brand management Top retailers are growing more sophisticated the day: Are you in a position to weather, can live happily within the highly accountable I hope you find the thinking in this magazine in their approach to finding growth. Their or wither in, the storm? world of retail using data and value as the useful to you, your business, and your brands insights can help your brand. bridge between the financial and commercial as we all continue to tackle the challenges A retailer once told me that he didn’t have streams of activity. before us. p16 The crisis paradox by Josh Feldmeth time to build his brand; he was too busy Markets are contracting and results are meeting the needs of his customers and his Retail has certainly been deeply impacted by Regards, under pressure. Intelligent branding is business. At Interbrand we would view this the economic realities of our times. But what required to extract more value from invested as the very essence of building a brand, but better market is there to pick itself up and brand assets. it’s easy to see why the marriage between fight back? retailers and brand management hasn’t p20 Break away from the pack always been easy. Branding was historically While cost-cutting has formulated the bulk by Fred Richards and Bertrand Chovet viewed as the “lipstick on the pig,” a graphical of businesses’ reactions to the downturn, Differentiation at shelf level is key to veneer which added questionable value in the we are now recognizing that demand creation standing out in saturated categories. face of global logistics and sourcing. But as is the required antidote. Demand can be markets have changed, so have attitudes. created without relying on discounting which p24 Fast moving consumer goods in hinders a business, erodes margins, and regional markets by Richard Veit Differentiation is the essence of good places a business under increasing pressure. Regional brands in growth markets have business in any crowded market; the ability Demand creation requires us to step away the upper hand—but only if they work on to influence demand beyond the tangible, to from the crowd, to do things differently in our building innovative brand propositions. go beyond the table-stakes of convenience, quest to stand out, and own a clear position Jez Frampton quality, service, and the like, into the realms in a market. Global Chief Executive p28 Shifting winds by Burton Blume of the unique. Brands are the way we do Interbrand and Jonathan Chajet business; the factor that makes our service Perhaps retailers need to better understand Trends and insights for the future of Asia’s offer, our product line-up, our culture, and of how their brands drive value and what retail markets. course, our language and appearance more actions should be taken to ensure that desirable over the competition. their brands are readied for the market of tomorrow, as well as the market of today. Retailers are perfectly placed to build truly great brands. They have many rich data All around us the world is changing. points: physical experiences involving To only view these changes through the numerous opportunities to create eyes of the economy is dangerously one- uniqueness, including service, process, dimensional. Consumers’ attitudes have product mix, layout, ambience, culture, changed and will continue to change. Best Retail Brands 2009 01
  3. 3. Overview The Best Retail Brands has taught us that a brand is not just a logo, a name, or a snappy slogan—it’s the tangible and intangible assets that customers attribute to a retailer. Interbrand is delighted to unveil the Best Interbrand pioneered the technique of Retail Brands 2009. measuring brand as a business asset twenty years ago. In this time we have conducted For almost 10 years we have published our over 5,000 brand valuations across all Best Global Brands report in cooperation industry sectors around the world. We now with BusinessWeek. It ranks the top 100 focus all of this experience and expertise to global brands by their brand value and bring you the Best Retail Brands. has become the barometer for successful brand management. Indeed, it has actually The retail sector offers some unique been ranked as the third most sought-after challenges. First, we understand that the benchmark report by CEOs. culture of retail is immediate and extremely operationally focused. This creates a We are proud of the success that we’ve had in tough environment for brand thinking and provoking the debate among business people management to thrive, but our study shows about the value of brands to business. We the impressive performance of the leaders, look forward to this study becoming equally and we wanted to share the lessons of success. influential among retail leaders. Second, compared to other sectors, When a business gets it right, the brand retail brands tend to operate over the becomes a value creation engine. Brand most expansive brand experience for their valuation is a great tool for showing a customers. Retail branding extends from business how to optimize its brand. We the robust insights that formulate brand use it as a proactive tool. By showing an strategy into product assortment, sourcing organization the earnings attributable to and selection, format strategy, store design, intangibles, assessing the role that the brand engagement of people, and in many cases plays in purchase decisions, and revealing the the creation and supply of private label relative competitive strength of the brand products. Strong retail brands orchestrate within its markets, the organization can focus a complete shopper journey with the its attention on building the brand’s value. objective of achieving the long-term loyalty Indeed, our experience shows that simply by of their customers. recognizing the brand as an economic asset, like other business assets, it starts to be managed for growth. 02 Best Retail Brands 2009 Best Retail Brands 2009 03
  4. 4. Building 01 The relationship between brand Rising disposable incomes, growth in purchasing power, continued expansion of urban areas, increased mobility, and a retail brands and retail wider choice of products and services have all been key factors in changing consumers attitudes towards shopping and how they spend their money. by Lee Carpenter, Lee Carpenter, CEO North America: The store is a physical expression of the brand and provides a powerful opportunity to make 03 Key trends and Jean-Baptiste Danet, emotional connections and influence choice. In creating an experience, the brand guides every decision, from the orchestration of the challenges in regions and Stuart Green customer journey, to the messaging at each touchpoint, to the assortment of the store. Brand is the way you do business. It is what LC: There is one key challenge in North makes you different: You can’t just say it—you America right now: value. And this is true of have to do it. It takes place in the store, every segment. Most consumers are giving online, on the pages of a catalog, and over the careful consideration to their purchases telephone. Brand isn’t just the logo, it’s the and retailers need to offer a compelling physical real-time delivery of the promise your proposition to earn the dollars that are being brand makes—an experience the consumer spent. We’re seeing less frivolous buying and will undergo—shopping. When you walk into more investment purchases, such as buying a store, you are entering a brand. So, you consumables in bulk and purchasing high- can see why the store is a primary means of quality, classic clothing that will last. brand engagement. It provides a powerful opportunity to make emotional connections Shoppers will be feeling unsettled for a while. and influence choice. The connection lives They’re busy reassessing what’s important beyond the transaction to create feelings and to them, just as retailers are reassessing memories that last. the relative importance of reducing costs versus increasing investments, going on Jean-Baptiste Danet, CEO Europe: In the defense or offense, in order to optimize 1960’s, consumers discovered supermarkets store performance. and hypermarkets and huge offers that fostered the discount concept. In the 1990’s, JBD: In Europe, the general trend is that we saw a new generation of specialized department stores are suffering and retailers reinvent the retail business. hypermarkets are stagnating. Mega-stores Biography: Lee Carpenter, Biography: As CEO of Interbrand Biography: Stuart Green takes an Brands like Sephora, Zara, H&M, and Grand are visited but the act of purchasing has CEO of Interbrand Design Forum Europe, Jean-Baptiste Danet leads intentionally pragmatic view to Optical focused on the concept and used become more difficult; stores located in city and Interbrand North America, the European practice with strong creating and managing brands, every touchpoint (from space to service) to centers suffer from the consumption crisis. is recognized as one of the most conviction to deliver a holistic believing that the ultimate yardstick reinforce this concept. In other words, they At the same time, the well-positioned brands influential retail experts in the U.S. approach to brands. His leadership has for brand effectiveness lies in the acted like a brand. Since then, brand and retail like H&M and Zara gain share. He and his team pioneered, and successfully built many of the world’s end-user experience. As President have become inseparable. continue to refine, an integrated most valuable brands. Understanding for the Asia-Pacific region, Stuart SG: Asia-Pacific continues to develop at business model that blends creative, the equal importance of all brand ensures that Interbrand’s diverse a rapid pace. Across the region mixed use analytic, and strategic retail touchpoints, Jean-Baptiste has grown and collective thinking leads to a disciplines to build brand experiences his team’s practice and brought to life distinct customer experience for 02 The development of developments (e.g. residential, commercial, leisure, and retail spaces) are increasing; that go beyond selling to develop new disciplines and processes that every client. Stuart has 24 years retail branding in Asia an example being Singapore’s Marina Bay In Japan’s main urban relationships with shoppers. He is a deliver the greatest quality work for in brand management and design development, set to launch in 2010. The champion of bringing the brand to Interbrand’s valued clients. working in Europe, the US, the retail component is a critical factor, and is life by understanding where and how Middle East, and the Asia-Pacific. largely driven through the integration of centers, retailing is now brand can be leveraged in the store for Stuart Green, President Asia-Pacific: commerce, office space, as well as leisure greater value. 20 to 30 years ago, retailing across Asia and residential, and the best price. a sophisticated business consisted for the most part, of small family run shops and market traders (the exception In the same vein, themed malls, consisting being Japan’s very successful department of shops, restaurants, local and international with many homegrown stores). In the main urban centers, retailing fast food outlets, cinemas, nightclubs, is now a sophisticated business with and art galleries are now being developed many homegrown brands as well as the in the Philippines, China, and Malaysia. international players looking to tap into the fastest growing region in the world. While many parts of the world experience a decline in the popularity of malls, many Asian markets go from strength to strength. brands as well as international players. 04 Best Retail Brands 2009 Best Retail Brands 2009 05
  5. 5. In 2007, Internet retailing universities, and other experts, develops and patents new ingredients to bring the most Best Buy strives to differentiate its brand experience through distinctive touchpoints, In order to be globally relevant, a retail brand needs to have a clear proposition that was worth nearly US $49 billion innovative products to market. This, coupled tailoring store environments and selling styles is nearly universally compelling, with the with its affordable prices, has been a recipe to customer insights, with current emphasis ability to be flexible enough to operate within for success. on the employee expertise and commitment. the varied constraints found in markets across the 14 Asia-Pacific UNIQLO’s simple ideology of providing high The company constantly tests new concepts, such as robotic vending machines in airports around the world. countries, and is forecasted quality yet affordable basics is striking a chord carrying cell phones, computer accessories, JBD: Cultural differences and geographic with consumers ranging from the fashion- and cameras. Consumers give it top marks for boundaries are often insurmountable forward to those just looking for something shopping experience and meeting expectations. challenges for retail. Truly global retailers to double by 2010. comfortable to wear. JBD: H&M and Zara, have reinvented the have invented something new, and kept their advantage over time. In retail, as the goal is Charles & Keith, a Singapore based retail retail/apparel industry, understanding the to capture as many consumers as possible, brands focusing on shoes and accessories perfect mix between finance, space, and the brand idea needs to be accepted and saw that shoes from foreign wholesalers were brand. Carrefour and Tesco have, in their understood everywhere. consumer report, South Koreans are the sensory environment with service that is expensive and unsuitable for smaller Asian own way, invented the European way of most avid online shoppers in the world with relevant to consumer needs, will attract and feet. It quickly capitalized on this opportunity selling goods to the biggest number of Finding the best locations and being able some 99 percent of Internet users having maintain loyalty. Although value for money with its own line of shoes. It now has an R&D consumers. Aldi and Asda have created to invest in new offers, while maintaining shopped online. is a common denominator across markets, team of 70 people, which has churned out the low-cost supermarkets. Sephora is the quality of the concept requires strong discerning consumers are increasingly willing over 750 women’s footwear designs. still the only worldwide chain structured management and visionary skills. This is a Luxury brands are also increasingly driving to pay a significant premium for quality like a supermarket to seduce women key challenge. The consumer will buy less, so consumer behavior in both developed and stature. Ultimately, brands that sell LC: Wal-Mart, Tiffany & Co., and Best Buy are with perfumes and cosmetics. FNAC has the goal is to capture the bigger part of the (Singapore, Japan, South Korea, Hong Kong), quality products and demonstrate a good brands that know who they are, understand succeeded in fulfilling its brand promise purchase power. That’s where a strong brand as well as emerging markets such as India, understanding of local consumer attitudes their customers, deliver consistently on their as a place where you feel more clever and can create difference. China, and Indonesia. and preferences stand out. These are the respective brand promises, and continue intelligent when you buy a book or a PC. And great retail brands. to innovate and explore new directions. yet, others that had done well are beginning Wal-Mart is determined to change and to show signs of losing. M&S and C&A create 07 Key factors that will 04 Characteristics of a adapt to meet emerging customer needs. less difference than before. The role they used determine the success great retail brand 05 The retail brands The company is working to make brand to play on the retail market is not as powerful. that are getting it right touchpoints clear and relevant, especially those that have the most impact on The consumer can substitute them and is even actively looking to do so. of retail brands in moms. These touchpoints include store the future environment, website, in-store messaging, LC: A great retail brand that has a ringing clarity about its reason for being and that SG: Retailers that address the local needs and product mix, and sustainability. 06 Going global truly understands and delights its target motivations of their customers will continue Tiffany & Co. stands for quality and longevity LC: Retail brands need to understand their The Iconic Prada store in Ginza, Tokyo. segment will have great appeal. It’s easier to build a loyal base. Homegrown Asian and claims a large share of mind. The cachet customers, use that information to deliver for specialty brands serving a narrow niche brands continue to emerge. Some of the ones of the Tiffany blue box adds a high-value value, and provide a compelling and relevant LC: Retail involves complex logistics, and Some mall owners are also promoting with very distinctive needs, like “pet parents” getting it right include the Hong Kong brand intangible to any purchase. The company has experience that connects with the shopper. these inherent challenges are further environmental sustainability through their or “gamers.” You can appeal to emotions Shanghai Tang, which offers a full range of fully recovered from a “brand-slip” a couple complicated when responding to varied developments. SM Group, the biggest and passions, or help people manage their clothing for men, women and children, plus of years ago when the wrong merchandise JBD: We can assume that all the major customs and regulations. In some instances mall developer from the Philippines, put problems. It’s tougher for mass brands home furnishings, accessories and gifts. Now caused it to fall to novelty level. Today, Tiffany retailers have made plans for the crisis we meeting the needs of varied locations would in place an energy management system since they were created to appeal to very part of Swiss luxury goods giant Compagnie continues to reaffirm its unique appeal with a are facing today; for example Carrefour require an entirely different proposition. as early as eight years ago. There are also broad segments, but even they are finding Financière Richemont, Shanghai Tang small number of stores to keep from diluting had decided to move all its formats to the For example, many popular U.S. stores sewage treatment plants in the malls. These success, being perceived as having genuine operates stores in China, Japan, Malaysia, the brand and it’s expanding into eyewear and Carrefour brand prior to the recession. are founded on the notion of having huge environmentally conscious practices reduce character, definitive core values, and concern Singapore, Taiwan, and Thailand, as well as watches to drive revenue and relevance. assortments and long hours, sometimes operating costs as well as earn significant for community. All that, of course, has to be Dubai, UAE, London, and Paris. The brand Planning a clear way out will determine open around the clock. In Europe and Asia goodwill from shoppers. delivered consistently across all channels— continues to learn and evolve, with new long-term success. Retailers will benefit people shop much more frequently in much not an easy task. stores staying true to its 1930’s Shanghai Art from the purchase recovery before the smaller stores, often with reduced hours and Destination shopping is also a theme. Asian Deco accents and bold colors and tongue- rest of the economy, and they will give the there might be little to no parking—a very consumers love to travel and shopping SG: Over the years, many international in-cheek-humor, but expressed as a modern signal. The ones that invest in their network, different experience from stocking up on excursions across the region are growing in retailers in Asia have failed, simply because international lifestyle brand—with a maintain their concept, and understand popularity. This has increased in recent years they didn’t adapt to a different environment broader appeal. The great retail brands two-months worth of paper towels and their customers in difficult times will recover frozen pizzas. with the growth of low-cost carriers, as well and different consumer needs (the exception know who they are, before the others. But, many of them will not as the expansion of flight routes. Locations being the luxury sector in more recent years). THE FACESHOP is one of Korea’s largest make it to that day. And the strongest are such as Singapore, Bangkok, Hong Kong, So first, it’s important to understand that Asia retailers of body, bath, skin care, and make- understand their already looking for ways to accelerate and Ho Chi Mihn City are becoming regular weekend travel destinations for shopping. is complex with a large variety of cultures, races, languages, and religions, all at different up products aimed at both women and men. The company has quickly expanded customers, deliver the death of the weakest. stages of economic and social development. to over 740 retail stores in 19 countries. consistently on their Online shopping is another area of interest. Internet retailing was worth nearly US$ 49 Second, brands that sell quality products and demonstrate a good understanding of THE FACESHOP’s philosophy lies in understanding the importance of health respective brand billion across the 14 Asia-Pacific countries in local consumer attitudes and preferences and beauty. Continuous development is promises, and continue 2007, and is forecasted to double by 2012 to approximately US$ 71 billion (Euromonitor have a better chance of success. Third, location continues to be a critical driver an integral part of THE FACESHOP way of life. The company’s research institute, a to innovate and explore International). According to a global Nielsen of success, but brands that can develop a center of collaboration with dermatologists, new directions. 06 Best Retail Brands 2009 Best Retail Brands 2009 07
  6. 6. Creating value in-store: Shoppers are what consumers become when they enter the store environment. Shoppers even Product Q, which is a little bit different but appears to do almost the same thing. or workplace, and cannot be gathered by looking at market research studies that • Promoting trial • Facilitating greater purchase frequency understanding and profiting segment differently–chiefly by their shopping outline what people buy. Those insights behavior, habits, and practices. They are also What do they do? Remember the statistic are meaningful, but leave out specific • Encouraging trade up more dynamic; willing to change in-store about 70 percent of purchase decisions being environmental dynamics and are often from the differences between • Adding or increasing margin variants behavior based on local events (e.g. a great made in the store? If the brand does not cut backward looking. Understanding and seasonal display could turn a programmatic through the clutter, communicate why it is observing how people behave and what • Motivating multi-product routines shoppers and consumers shopper into an impulse shopper), caprice different, or otherwise make this situation influences them in the store provides an (e.g. “I’ve had a rough day—I’m going treat simpler for the shopper, the shopper may well opportunity to effect change, plan for the Putting it all together myself to something from the skin care go with another option or even abandon the future, and deliver meaningful innovation The marriage of shopper insights with in- by Kelly Crouch and aisle”) or macro trends (e.g. penny pinching). Outside the store, when the same segments are consumers, nothing may have changed purchase entirely. How can a brand effectively address the for the shopper. To understand what motivates and influences store strategy can lead to the construction of in-store solutions that increase shopper satisfaction while orchestrating profitable Emily Grant in how they see brands. However, inside the store, as shoppers, their behavior is anything needs of the shopper? There are a number of ways to better meet the shopper, brands must understand the basics of the shopper: purchase behaviors. In our experience at Interbrand, brands that have done this in but static. The goal, then, for brands is shopper needs—key operational factors, like retail have seen significant gains. • What drives the shopper to go to a store, shopper connection. And to achieve this, in-stock position, must be solved, but on top Biography: As Brand Analytics Director, Kelly guides the integration and on what kinds of trips to the store is they need to leverage shopper insights and of the basics, other levers can be activated to One of our clients, Procter and Gamble, of analytics programs and ensures insights are represented within the brand likely to be purchased? use creativity to orchestrate in-store behavior better meet shopper needs. These tools are consistently utilizes shopper insights to strategic and creative outputs. Kelly’s analytics expertise includes the and drive choice toward the brand. things like: • Is the category usually a destination, create store solutions that successfully grow design and interpretation of research for branding purposes, delivery planned, unplanned, or impulse the objectives of their brands. Its efforts have of retail insights, creation of business cases and decision frameworks, • Merchandising logic in the form of Shopper insights, or an understanding of purchase and what drives that role? paid off in a number of categories, in terms and ensuring clear links between brand and business strategy. The category principles (e.g. vertical versus how shoppers behave in-store, is a key first of increased share and volume, and have also American-born Kelly now lives and works in Amsterdam. horizontal shelf arrangements by brand, • What are the current purchase drivers step to optimizing the value of brands in the helped to establish P&G as thought leader and scent, size, etc) and barriers in-store? retail environment. But in order to leverage a key partner to retailers. Biography: As Senior Consultant in the Analytics group at Interbrand, shopper insights, one must first understand • Planned adjacencies and store layout • What are the underlying associations Emily Grant conducts research and provides strategic guidance on the differences between consumers both within and across the categories with the category? In another example, a big-box, North projects across a variety of sectors. She has worked on engagements and shoppers. American retailer instantly saw category for a number of high profile clients. • Category and brand sign-posting • What information do shoppers seek in increases in the range of five percent in and wayfinding the store, specifically? Why should we make understanding the revenue, as well as units within a common shopper a priority? • Total store planning and flow • How do shoppers select and de-select household product category in test markets, In-store, shoppers have unique options and what are the decision after a relatively simple shelf and category • Packaging communication and information needs. hierarchies? reorganization built on shopper insights. The retail shelf: the forward position in Yet, the store plays a major role in the They have unique habits and practices that • Multi-level communication • How do shoppers want to interact with the battle for consumer spending success or failure of brands. In many occur when they are shopping. Cues that In fact, because the in-store environment is • Emotive and interactive communication, products? What interaction do they need? The battle is on. The current environment categories, 70 percent or more of purchase attract a consumer to a brand may not be so frequently overlooked or under-examined, such as imagery, technology, or out-of- has not only changed the economic realities decisions are made in-store. Recessionary the same cues that cause a shopper to • How do shoppers orient themselves in the opportunity for gains, even based on box displays for consumers around the world, it has belt tightening only increases the number of choose a brand in the moment of purchase. the category? In the store? relatively simple solutions, can be significant. radically shifted the mind-set of shoppers decisions that are made in-store as shoppers Extracting more value with little to no But first, to make the right decisions with in-store. In normal times, companies spend scrutinize every line on their list, double- With this in mind, brands must help to Note that these things should be considered incremental investment is always a good idea. tools like these, marketers must also a tremendous amount of time and resources checking that they’re spending wisely. With deliver a seamless shopping experience at both a category and brand level. Brands And considering the current environment, understand shoppers. Good branding in the development and management of this in mind, it is crucial that the in-store that meets shopper needs while delivering must carefully balance their own interests for some FMCG players and retailers, it might professionals know how to get people into their brands by developing identities, experience, and how brands are presented in benefits to the brand and retailer. To do this, with those of the retailers that sell their mean survival. stores. However, in order to get a consumer measurement tools, and communication, the environment, should be managed with at brand manufacturers must understand the products. Understanding the total category, to make a purchase, marketers must also including significant media spending budgets. least as much rigor as the other components dynamics of the shopping environment—how and how the brand can best perform within So, brands must get to know shoppers, understand what happens in-store, and Yet, these are anything but normal times. of a branding program. options are considered and choices are it, will ensure that brand marketers can not just consumers. In-store should be structure the brand offering in a way that made. Even if a brand has successfully caught forward their own objectives while retaining treated as an input to brand strategy. The connects to shoppers in the environment. When consumers feel pain in the pocket Shoppers versus consumers the interest of a consumer, the shopper’s perspective on the needs of the retailers. If store environment is a brand opportunity, book, they react differently inside the store. What is the difference between consumers needs must still be met in order to convert brands can deliver performance in-store for not just a point of tactical operations. How can brands understand what Unfortunately, it is this in-store decision and shoppers? Essentially, they are the attachment into purchase. Imagine a both their brand and the retailer’s category, As the competition for share and loyalty shoppers really need? moment that is chronically misunderstood same people, but they operate in two consumer who has decided they want to partnerships with retailers and the ability for continues to get more intense, brands that To understand the best use of the tools and under-resourced. Many brand owners different environments, subject to different purchase a product, Brand X. They have seen brands to influence the store environment manage the shopper aspect of their brand mentioned above, the first objective must have mistakenly treated the in-store environmental influences, and possessing an ad and decided this is something they will become stronger. put themselves in a position to differentiate be to understand the shopper. We must experience as yet another operational different needs. want to buy. This consumer travels to their and create meaningful value as a brand and investigate consumers in the role as shoppers function. Major decisions are made with favorite store, goes inside, and becomes Incorporating strategic objectives of retailer partner. in order for brands to unlock the mystery little connection to brand and marketing Consumers are the overall targets for a shopper. the brand of the store and orchestrate valuable management, with conversations rarely brands. Aspects like location, demographics, In addition to understanding shoppers, shopping behavior. moving beyond the fundamentals of in-stock and the habits and practices of their life This consumer/shopper wants Brand X, but brands must also be clear about what they position and promotions. Even if they wanted often segment them. The goal of brands is not sure where to find it in the store. This want to achieve with shoppers. Knowing the Shoppers and shopper behavior must to extract more value from the shelf, many is to form bonds with target segments of alone may turn them away. If they do locate priority strategy for the brand and category is be studied. Marketers must follow them, brand owners lack the insights and tools to consumers—to touch them where they the section, they are presented with more the second leg to unlocking value in the store observe them, and ask questions. This do anything about it. live, work, and play. options than they’d imagined. They can environment. Strategies for the brand might investigation can’t just happen in the home choose Brand X, or Brand Y, or Brand Z, or be things like: 08 Best Retail Brands 2009 Best Retail Brands 2009 09
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