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Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
Kl Brand Summit 2009 Presentation Ml Jacobsen
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Kl Brand Summit 2009 Presentation Ml Jacobsen

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This presentation is a guide to help Brands sustain their market-share during economical difficult times

This presentation is a guide to help Brands sustain their market-share during economical difficult times

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  • 1. Brand Strategies in Difficult Times by Marie-Louise Jacobsen Managing Director ©Copyright & Property of RMS-Retail Management Solutions ® Retail Management Solutions Pte Ltd
  • 2. Economic Retail Reality ©Copyright & Property of RMS-Retail Management Solutions ®
  • 3. Brand to Retail Connection • Retailers in most cases are your Brand, products and merchandise connectivity to the end-user; the consumers. • To understand sales performance of your products or Brands, it is helpful to understand the challenges retailers are facing in today’s economy. • From a retailers prospective, it is now more important than ever to improve relevancy of product ranges and product mixes in their stores to capture their consumers attention and spending. • The following recession-proof strategies should give you insights on how to match your Brand positioning and Brand relevancy with retailers ©Copyright & Property of RMS-Retail Management Solutions ®
  • 4. Recover by Improving your Business Model ©Copyright & Property of RMS-Retail Management Solutions ®
  • 5. 1.Deliver your Brand experience like nothing Before! Do everything in your power to Retain your customers by giving them Value-Add and a higher Emotional Connection. This in turn can give you “Good-Will” that your customers will happily spread…free of charge! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 6. 2. Re-enforce your value message Keep to your Brand promise and deliver more than your promise as in difficult times brand messages can easily sidelined. It is a good time to highlight core-brand-value and the promise that you can deliver it each time! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 7. 3. Change If your failing to engage with customers in a difficult economic environment, then re-look at your Brand position and understand why. Then take the necessary steps to change your Brand's position so that it again becomes relevant to your customers. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 8. 4. Invest in your Brand to win more customers As other businesses will be struggling and cutting back on Marketing, make it your business to communicate strongly and then… go out there and win over their customers. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 9. 5. Rally the Troops Keep your staff well motivated and super productive, through compelling internal marketing. Make everybody buy-in to the “Big-Picture” to increase revenue. Let them be part of the solution! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 10. 6. Be Confident Brand leadership needs a clear confident strategy to maintain success and to remain fixed on your customer’s radar. Believe that you can so your customers can believe in you. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 11. 7. Aim Higher Not all consumers have their wallets closed. Some will always be willing to spend if you give them a reason to. It may be time for you to re-think your Brand and possibly expand your target audience ©Copyright & Property of RMS-Retail Management Solutions ®
  • 12. 8. Show some Passion Emphasize on the emotional promise your brand delivers can help grow your customer base long term We all need nourishment for the soul and will continue to pay for the good stuff. People buy for emotional reasons and justify with logical ones. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 13. 9. Have some fun When things are looking miserable, everyone needs more fun in their lives. A positive attitude will get you a long way simply because it will make you more receptive to new ideas. Minds are like parachutes; they don’t work if their not open! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 14. 10. Focus or Diversify… While everything is being scrutinized, now may be the time to extend your brand into new, more fruitful product lines. Conversely, it could be better to narrow in on core product lines, activities and markets. But remember, if your market is changing – It won’t pay to stay the same! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 15. Invest now in making your brand stronger Long lasting Loyalty to a Brand cannot be bought - it can only be experienced each time & every time! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 16. Recession Proof Tips ©Copyright & Property of RMS-Retail Management Solutions ®
  • 17. Cut the right costs ©Copyright & Property of RMS-Retail Management Solutions ®
  • 18. Cut the right costs by getting to the root of the cause •Cutting costs across the board is generally not a good Cutting idea because money is better spent in some areas of the business over others, and sound investments make good sense, even in a recession. •Retailers willing to perform a more thoughtful operations review by weighing fixed versus variable cost drivers, in the context of the company's business model, servicing objectives, and organization, will inevitably yield much more value. •Keep your business records up to date so that you always know how you are faring. The more robust your records are the easier it will be to move faster in the case of a slump. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 19. Automate, Automate, Automate ©Copyright & Property of RMS-Retail Management Solutions ®
  • 20. Automate, Automate, Automate •Given the continued, rapid decrease in the cost of information technology, it is essential during a recession to search for new places to automate communicate automate, information and facilitate buying as well as retain customer loyalty. •It is becoming more & more common not only for people who are cash strapped to search goods and services online, as this gives them the ability to compare prices but enables you to stay "visible" in consumer's consciousness each time they visit your website. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 21. 20-80 Rule ©Copyright & Property of RMS-Retail Management Solutions ®
  • 22. Back- Back-up your Key Vendors •Careful thought is required to determine which true core Careful competencies to build on. •The choice of vendors is crucial to success and in the best of world’s the Pareto’s 20-80 rule should be applied, 20- as it has been proven to be effective time and again across many types of retail formats. •Negotiate Harder Ask for quicker delivery times so that Negotiate you don't need to have so much money tied up in stock. •As a supplier you want your product categories to be part of the 20% vendor that contributes to 80% of the retailers revenue! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 23. Identify Customers to Grow on ©Copyright & Property of RMS-Retail Management Solutions ®
  • 24. Identify Customers to Grow on Rather than trying to cater to all customers with all products, customer relationships should be reassessed during a recession. This can be done by communicating on product specifics. Targeting marketing expenditure to the most profitable customers--and changing the nature of relationships with these key customers--while making discrete cuts in other areas will go a long way toward emerging from the downturn ahead of the field. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 25. Optimize the Marketing Mix ©Copyright & Property of RMS-Retail Management Solutions ®
  • 26. Optimize the Marketing Mix Increase your Marketing – that’s right - this is the worst time to reduce your marketing budget! The aim is to keep and hopefully increase your market share and the best time to do this is in a recession. Advertising and marketing spending typically get cut first in a down economy. Many of the leading companies today are looking across all their channels--Web, phone, direct mail, face-to-face--to match optimal channel to maximize interaction. They are taking advantage of new, more cost-effective methods of interaction, where possible. Ikea which is typically located outside city centres did just that during “The Great Singapore Sale 2009” They fun-vertized their sale right on main shopping fun- street Orchard Road! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 27. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 28. Revamp your Business Model ©Copyright & Property of RMS-Retail Management Solutions ®
  • 29. Revamp your Business Model Retail leaders cannot allow innovation to screech to a halt in the face of a downturn, and must forge ahead by reinventing the way they do business. 1. Leverage or extend products & services 2. Innovate by creating new Products & Services 3. Concentrate on NICHE Marketing 4. Provide FABULOUS customer service 5. Keep in touch with your customers—Internet, emails, phone calls 6. Highlight the VALUE of your products & Make your products and services more desirable, more consumer centric and market significant ©Copyright & Property of RMS-Retail Management Solutions ®
  • 30. Visual Merchandising & Retail Space ©Copyright & Property of RMS-Retail Management Solutions ®
  • 31. Visual Merchandising (VM) • VM is the activity of promoting the sale of goods, especially by their presentation in retail outlets. • VM is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that highlight the store’s image. • VM is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale. • Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, ’easy to shop’ and ‘find the product’ layout. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 32. The Importance of VM • Educating the customers about the product/service in an effective and creative way. • Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value. • Setting the company apart in an exclusive position. • Establishing linkage between fashion, product design and marketing by keeping the product in prime focus. • Combining the creative, technical and operational aspects of a product and the business. • Drawing the attention of the customer to enable them to make purchase decision within shortest possible time, and thus ©Copyright & Property of RMS-Retail Management Solutions ® augmenting the selling process.
  • 33. Window Displays • A window display is also a "visiting card" for the visiting card store. Windows are the most important factor within the store/shop front as they can communicate style, content, and price point. • They can be seductive and exciting, based on emotional stimulus, or price-based (when they clearly emphasize value for money with easy and obvious ticketing). • For the retailer, the window is among the most controllable elements in relation to image and to what is happening inside the store, and there are number of decisions to be made about a how these effects are achieved. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 34. Product Focus Through VM 1. Sell by showing and promoting. 2. Create an emotional connect between the viewer and the display. 3. Encourage the shopper to enter the store. 4. Get the customer to pause and “shop” the selling floor. 5. Establish, promote, and enhance the store’s visual image. 6. Entertain customers and enhance their shopping experience. 7. Introduce and explain new products. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 35. VM is an Art ©Copyright & Property of RMS-Retail Management Solutions ®
  • 36. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 37. some… For some….
  • 38. For Most “Can’t Live Without” are… ©Copyright & Property of RMS-Retail Management Solutions ®
  • 39. For Most “Can’t Live Without” are… • Mobile Phone (all) • Internet access (all) • Cable TV (all) • Hair cut/styling (all) • Favorite local eateries (all) • Shoes (woman) • Cheap & Good Fast Fashion (woman) • Skin care & Cosmetics (woman)
  • 40. Can’t Live Without but Can’t Find! The Indonesian Saga ©Copyright & Property of RMS-Retail Management Solutions ®
  • 41. Ways to Magnify Retail Profits ©Copyright & Property of RMS-Retail Management Solutions ®
  • 42. A Brand/Store without any emotional value will not be sustainable How should one build emotional bonds with customers? 1. You must first articulate a distinctive & relevant Brand Promise. 2. You must identify 2 or 3 key attributes of the Brand promise 3. You must use market research to isolate specific triggers; use quantitative approaches to assess which of these triggers will have the greatest impact. 4. Once the triggers have been identified consistent delivery of these triggers will have to be part of the normal stream of the organization’s activity. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 43. Consumer Centricity and what it takes Carefully analyze past buying behavior of your customers and categorize by their buying habits. Basically you will be slicing and dicing your database list. Discounts may motivate your customers better than premiums, vice versa for others. Study your list and break it down to create special offers for different customer groups. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 44. BIG- Isolate Your Biggest Spenders & Build BIG-ticket Offers for Them These are the customers that do not want to shop the sales and always purchase your most expensive items. Make it easy for them by packaging products together. If at all possible, keep track of what they have been buying from you and offer complementary items. Communicate your new arrivals. It’s a great chance to keep in touch with your customers. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 45. Cross Sell ©Copyright & Property of RMS-Retail Management Solutions ®
  • 46. Cross Sell ©Copyright & Property of RMS-Retail Management Solutions ®
  • 47. Cross Sell the not so Obvious ©Copyright & Property of RMS-Retail Management Solutions ®
  • 48. The Amazing Power of “FREE”! FREE” Using the word FREE in your newsletter, marketing materials, or on your Web site will increase your sales almost overnight. First, take a look at what you offer customers now and see what you can give them for FREE. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 49. Offer Premiums and Gifts Premiums give you better leverage than discounts. Premiums that can be used as gifts give your customers more leverage for their dollar. For example, a $50 gift certificate with every $500 in purchases is better than a $50 discount. It costs you less, there will be a percentage never redeemed, and some will bring in new customers who will spend more than the certificate amount. Store vouchers or store money has an extremely high consumer relevancy… ©Copyright & Property of RMS-Retail Management Solutions ®
  • 50. Customers view these as free money! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 51. How to understand customer trends and forecasting customer demands ©Copyright & Property of RMS-Retail Management Solutions ®
  • 52. We haven’t the foggiest what it does, but it plugs into a computer and retails for three fifty ©Copyright & Property of RMS-Retail Management Solutions ®
  • 53. Consumer & Their Buying Power ©Copyright & Property of RMS-Retail Management Solutions ®
  • 54. Changing Shopping Habits Consumers are changing their shopping habits so you need more information on their current preferences if you want to improve your sales. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 55. RELEVANCE VALUE & COVENIENCE REACH REWARDS ©Copyright & Property of RMS-Retail Management Solutions ®
  • 56. RELEVANCE • Shoppers value relevance; and their value of relevance gets your message through the clutter. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 57. CRM Data (Customer Relationship Management) • Real relevancy is achieved through thoughtful application of accurate customer purchasing data/information. • Understand that people place higher value on the products they enjoy. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 58. If your Products or Categories are Relevant You will Sell! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 59. REACH First give shoppers what they want. • The next thing to look at is to “Reach” them with relevant messages. • Ask them if they are interested in getting news or coupons from you once in a while and how. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 60. Let your customers keep you in mind! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 61. Consumer Reward Preference… – Discounts: 81% – Currently considering buying a specific product: 52% – Products & services are relevant to their needs: 47% – Familiar with the merchant: 35% – Convenience – good location for the customer: 30% – Expiry date of the vouchers: 22% – Flexibility of product size & choice: 18% – Product sample: 15% ©Copyright & Property of RMS-Retail Management Solutions ®
  • 62. How to create customer demands ©Copyright & Property of RMS-Retail Management Solutions ®
  • 63. The 5 drivers needed for the total Brand experience to work ©Copyright & Property of RMS-Retail Management Solutions ®
  • 64. 5 Drivers Creating Brand or Store Loyalty Emotional Connection Awareness 5 Drivers Value Relevancy Accessibility ©Copyright & Property of RMS-Retail Management Solutions ®
  • 65. Emotional communicator Emotional Communicator: Know your customers and what triggers them to buy ©Copyright & Property of RMS-Retail Management Solutions ®
  • 66. Value Identify your real strengths Value: Identify your real strengths what makes your Store; brand, products and services special ©Copyright & Property of RMS-Retail Management Solutions ®
  • 67. Accessibility Accessibility: Is the Brand easy to find each time and every time? ©Copyright & Property of RMS-Retail Management Solutions ®
  • 68. Awareness Awareness: You've got to stand out and be Different . ©Copyright & Property of RMS-Retail Management Solutions ®
  • 69. Differentiation Relevant Differentiation: Brands are determined by their Unique Selling Proposition - (USP) ©Copyright & Property of RMS-Retail Management Solutions ®
  • 70. • Emotional Connection Your Brand, Product or store must connect with the people on an emotional level • Value Your Brand, Product or store must deliver good 'perceived' value for the price • Accessibility Location - Location – Location & the web! • Relevancy Your Brand, Product or store should be unique or different and consumer-relevant in a consumer compelling way • Awareness In your merchandise category are your products the first Brand that comes to the consumers mind? Do you own your consumer's mind-share? Solutions ® ©Copyright & Property of RMS-Retail Management
  • 71. Consumer Motivation •Motivation is a much-used term in explaining why people act as they do. •Motivation can be termed as those inner striving conditions described as: Wishes – Desires – Needs - Drives And Likes ©Copyright & Property of RMS-Retail Management Solutions ®
  • 72. How to Manage Product Life Cycles in View of Market Downturn ©Copyright & Property of RMS-Retail Management Solutions ®
  • 73. Product Life Cycle PEAK 88 pieces 44 pieces 180 pieces TAKE OFF DECLINE 19 pieces 208 pieces TESTING CLEARANCE 5 pieces It is within this grid that retailers are able to make full profits on their Merchandise Zero Source: Joseph B. Siegel ©Copyright & Property of RMS-Retail Management Solutions ®
  • 74. Product Life Cycle • Product Life Cycle Management is the succession of strategies used by management as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages. • Product Life Cycle (PLC) - The phases of the sales projections or history of a product or service category over time used to assist with marketing mix decisions and strategic options available. The four stages of the product life cycle include introduction, growth, maturity, and decline, and typically follow a predictable pattern based on sales volume over a period of time.©Copyright & Property of RMS-Retail Management Solutions ®
  • 75. Time points in the Selling Cycle Example • You can estimate sales rate based on historical data, or after the event analyze the sales efficiency of these particular items. • The cycle may show sales at full retail of an item selling at: $59.00 up to the decline stage that 189 pieces are sold= sales of $11,151.00 • At the decline stage, price change is applied. The remaining 19 pieces are reduced by 30%. The new value is $41.30. Stock holding of $784.70 • At clearance, there are still 5 pieces left & final reduction of oddment to clear are at less 50%. New price for the balance 5 pieces: $ 20.65,Markdowns in this case was 5 pieces at value of $103.25 which sold down to zero. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 76. Date Action Season February 1 A Sell Early Spring Life- Life-Cycle 2 B Clear-out introductions Clear- for 3 C Sell Fashion 4 D Clear-out introductions Clear- Promotion March 1 A Sell A Begin receiving 2 B Clear-out introductions Clear- new season 3 C Sell Spring B Fashion 4 D Clear-out introductions Clear- presentation 5 A Sell before this April 1 B Clear-out introductions Clear- point 2 C Sell C No re-order of 3 D Clear-out introductions Clear- Promotion this season’s merchandise 4 A Sell Early Summer past this point May 1 B Clear-out introductions Clear- D Begin season 2 C Sell markdowns at 3 D Clear-out introductions Clear- this point 4 A Sell& special buys Sales 5 B Mix of regular & Sales Source: Joseph B. Siegel June C Season-end SALES Season- ©Copyright & Property of RMS-Retail Management Solutions ® SALES
  • 77. The product lifecycles during a downturn will necessarily be shortened. Depending of the nature of your retail format, you need to decide how long you are willing to hang on to the merchandise before you start discounting. Rule of thumbs, if 80% of your stocks are still in-store after 1 month, you have a problem. Second rule of thumbs, the first make-down is always the cheapest. This is because after a month the merchandise is still “deemed” fresh and new and you can get away with a lower discount. In a downturn, you have to monitor the speed in which you’re selling because if the merchandise is slow, chances are that they will be even slower later on. Not reacting to slow moving merchandise is not the best choice during a recession. If it’s not selling…get rid of it! ©Copyright & Property of RMS-Retail Management Solutions ®
  • 78. Identifying Problem Stocks Also known as ‘dogs !’ ©Copyright & Property of RMS-Retail Management Solutions ®
  • 79. If a Cat can push a watermelon out of a lake… lake…anything is possible Case Study 1997- 1997-1998 Asian Crisis The 30% Club Source: nohomers.net/showthread.php?t=80865
  • 80. The 30% Club • The Recession Strategy was dubbed The 30% Club. • It implied that with a well thought through Strategy, and with the full cooperation of key vendors, we could develop merchandise concepts, new merchandise categories and private labels all of which should generate at least a 30% increase in sales from all participants.
  • 81. Lesson Learnt • Lessons learnt from my past experience with recessions, pointed to; that customers got tiered of the loom & gloom and were feeling "Recession Fatigue", • and after a while, went back shopping looking for something to Reward themselves. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 82. Create a Strategy • As in the past, Investing in fashion merchandise was every vendor’s fear • But if all stores were to carry only basic merchandise, the customers who did want to spend would not have the incentive to do so. • The Strategy: Value Added ©Copyright & Property of RMS-Retail Management Solutions ®
  • 83. Merchandise Criteria 1. Concentrate on best sold categories 2. Decide what we wanted to do • Expand the ranges • Improve Quality • Develop newness • Create novel packaging • Gift with purchases that has synergy with the products ©Copyright & Property of RMS-Retail Management Solutions ®
  • 84. Brand Criteria • The Brands chosen had to be popular • They had to be customer relevant, market relevant and price relevant • Private Labels were developed in most division ©Copyright & Property of RMS-Retail Management Solutions ®
  • 85. Price Criteria • Merchandise developed had to be superior in all aspects • The prices were set to be deemed “great Value” • Added innovative packaging and gifts with purchases • Bundle offers where relevant • Margins were planned high to support launches and A & P expenses Gift with Purchase ©Copyright & Property of RMS-Retail Management Solutions ®
  • 86. Vendor Criteria • Each department or division would nominate their best vendors who had a “potential” annual sales growth of at least 30% if we backed them up. • They had to be of reasonable size, have control over their own production and have ranges that had potential for expansion. • All merchandise co-created had to be exclusive to our Store ©Copyright & Property of RMS-Retail Management Solutions ®
  • 87. Selling Criteria • The 30% Club Members were offered premium floor space and special VM Displays. • Additional floor space were given to support range expansions • VM & Special signages were developed to support the Brands and Merchandise Concepts • Additional promoters to support & sell • Product Knowledge Sessions for all staff on the features and benefits ©Copyright & Property of RMS-Retail Management Solutions ®
  • 88. Results • The cooperation gave us the ability to develop existing brands and new products strategies, new product lines that had synergy with the core brand. • Our first year result from 14 vendors invited to be part of the “30% Club Members” showed increases in sales ranging from 52% to 137%. • The following year, five more vendors were added to the Club and both sales and profits showed high double-digit growth for all members. ©Copyright & Property of RMS-Retail Management Solutions ®
  • 89. Think of Positioning… as the “space” a Brand, Product Positioning… space” consumer’ or a store occupies in the consumer’s mind ©Copyright & Property of RMS-Retail Management Solutions ®
  • 90. The Art of Retailing Bundled in a Book Thank You! ©Copyright & Property of RMS-Retail Management Solutions ®

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