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RETAIL BRANDING: THE PSYCHOLOGY OF VISUAL MERCHANDISING
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RETAIL BRANDING: THE PSYCHOLOGY OF VISUAL MERCHANDISING

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IISCM Retail Innovation Seminar, Jakarta, April 8, 2011

IISCM Retail Innovation Seminar, Jakarta, April 8, 2011

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  • 1.  
  • 2. The Psychology of Visual Merchandising Dian Hasan – Mindcode, San Diego, CA, USA
  • 3. Let’s break it down into smaller components… the definitions:
  • 4. Psychology: The science of the human mind and behavior. The word psychology literally means, ”study of the soul” ~ Wikipedia . Visual Merchandising: The activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a product or service. ~ New Oxford Dictionary .
  • 5. A window into your brand’s soul!
  • 6. What is your goal?
    • To ensure:
    • Your Brand becomes the chosen one
    • You increase your sales
    • Build brand loyalty
  • 7. Visual Merchandising is made of different components…
  • 8.  
  • 9. OK, that’s the definition, but what does it really mean? It’s about how well you tell your visual merchandising story… that is captured through a customer’s experience.
  • 10. It’s all about…
  • 11. At the heart of Retail Branding is THE EXPERIENCE! It’s “your BRAND in ACTION! ” It’s how your brand translates/transforms into a tangible feeling.
  • 12. If it isn’t… your market share could become your nightmare
  • 13. MindCode Methodology | From Theory to Practice 1 3-Brain Theory 3 BrandGenetic 4 Cultural Codes (the role of culture in brand building) 2 Optimization of Meanings 5 Compelling Story-Telling
  • 14. 3 we have brains Dr. Paul D. MacLean 1913-2007
  • 15. Generates FUNCTIONAL VALUE 3-Brain Theory Optimization of Meanings
    • Rational
    • Logical
    • Analytical
    3 Generates SYMBOLIC VALUE
    • Primal Instinct
    • Predatory
    • Survival
    1 Generates EMOTIONAL VALUE
    • Emotional
    • Self-Esteem
    • Nurturing
    2
  • 16. 3-Brain Theory Optimization of Meanings Generates FUNCTIONAL VALUE Generates EMOTIONAL VALUE Generates SYMBOLIC VALUE
    • Rational
    • Logical
    • Analytical
    3
    • Primal Instinct
    • Predatory
    • Survival
    1
    • Emotional
    • Self-Esteem
    • Nurturing
    2 BRAND VALUE I bought this Cola because I got the most features for the least expense. When I get behind the wheel of my Hummer, I rule the road! I always buy L’Oreal, because it makes me feel beautiful.
  • 17. People value more what things mean than what things are.
  • 18. $ $$ $$$ FUNCTIONAL VALUE EMOTIONAL VALUE SYMBOLIC VALUE REPTILIAN GENE Provides emotional equity + major brand equity LIMBIC GENE Provides emotional equity cal CORTEX GENE Provides trust & credibility Reptilian Codes Find the REPTILIAN BRAIN. This is where the highest level of Brand Competition occurs. And this is where premium brand experience and pricing rules. BrandGenetic
  • 19. Reptilian Codes Power Domination Challenge Individual Recognition Pleasure Satisfaction Control Order Belonging Social Acceptance Security Protection Freedom Autonomy Explanation Discovery Family Ensuring Your Heritage Tran- scendence Survival of Genes
  • 20. BrandGenetic is developed with other Sciences for in-depth understanding Biology BrandGenetic
  • 21. 3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment
  • 22. 3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment
  • 23. “ You never actually own a Patek Philippe. You merely take care of it for the next generation” 1997 Campaign Launch 3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment
  • 24. brandgenetic
    • Scientifically supported brand positioning model.
    • A powerful tool to understand the brand’s different meanings and to align the team vision.
    • A powerful tool to take On-Code brand decisions across different cultural codes.
    • Serves as a compelling Balance Score Card.
  • 25. G ATOMS = Brand’s dominant meanings GENES = Perceived executions CORE PROMISE = One sentence idea It works like a chemical formula A A A A Core Promise Debe tener los tres valores, no es escenográfico. BrandGenetic
  • 26. American icon REPTILIAN GENE Provides emotional equity + major brand equity LIMBIC GENE Provides emotional equity CORTEX GENE Provides trust & credibility BRAND BOUNDARY White Bears Endless themes Lights me up Endless themes Value PRODUCT BOUNDARY Mindcode developed this BrandGenetic to show a Coke competitor why the brand has a stronger symbolic+emotional superiority and to understand how Coke is building value. Enjoy Life! Debe tener los tres valores, no es escenográfico.
  • 27.  
  • 28. People value more what things mean than what things are.
  • 29.  
  • 30.  
  • 31. Visual merchandising is defined as the physical display of goods in the most appealing and attractive manner possible.
  • 32. This includes store layout and décor, merchandise presentation, and displays. The main goal of visual merchandising is to please the senses of the consumer
  • 33. YOUR VISUAL LOOK Is sending out the right branding message to your audience? YOUR VISUAL LOOK Does reflect the company’s brand personality? YOUR VISUAL LOOK Is in sync with your customers’ brand experience?
  • 34. The experience of your brand is related to how well you tell your visual merchandising story. By creating stimulating and evocative displays, you help form the customer's understanding of your products and services.
  • 35.  
  • 36.  
  • 37.  
  • 38.  
  • 39.  
  • 40.  
  • 41.  
  • 42. Remember your visual merchandising should Entice, Impact and Inspire…
  • 43. What kind of experience will your customers get? Will it be memorable?
  • 44. What kind of experience will your customers get? Will it be pleasant?
  • 45. What kind of experience will your customers get? Will it be personal?
  • 46. What kind of experience will your customers get? Will it be courteous?
  • 47. What kind of experience will your customers get? Will it be consistent?
  • 48. What kind of experience will your customers get? Will it be different from your competition ?
  • 49. What kind of experience will your customers get? Will it win over your customers, and gain customer brand loyalty ?
  • 50. Remember your visual merchandising should Entice, Impact and Inspire…
  • 51. Good design can mean the difference between: “ BLAH” vs. “WOW”
  • 52. Good design can mean the difference between: “ One-Time Customer” vs. “Repeat Customer”
  • 53. Good design can mean the difference between: “ Selling a Commodity” vs. “Unforgettable Brand Experience”
  • 54. Southeast Asia: With a population of over half a billion people spread over eleven countries, Southeast Asia provides retailers with significant opportunities, but also operational challenges. Southeast Asia’s diverse retail environments, ranging from mixed use developments like Singapore’s Marina Bay, Manila’s huge SM Malls, and Jakarta’s and Bangkok’s high-end themed malls like Plaza Indonesia, Pacific Place, Siam Paragon, and Gaysorn Plaza. All the way to local “mom and pop” shops, means that brand strategies must be tailored for a huge array of consumer needs and habits. Additionally, changing consumer behavior, rising disposable incomes, increasingly status conscious shoppers, and online product availability all continue to impact the retail environment.
  • 55. USA Mexico Colombia Peru Argentina Indonesia Bolivia MindCode is a strategic brand positioning company that provides innovative Brand solutions. MindCode’s objective is to maximize Brand value for our clients by revealing an innate, profound understanding of their markets. MindCode has worked with clients across the world. MindCode has proven to be an essential tool to increase Brand value.
  • 56. Partial clients list
  • 57. SUCCESS STORY Cuervo 13, Tequila + Taurina Foto: Eduardo Caccia POWERFUL + SEDUCTIVE NEW BRAND BRANDGENETIC BOOK: provided guidelines for the brand experience, design language (architecture, interior/décor), and recommended environmental approach. COMPETITIVE GRID ANALYSIS
    • OUTCOME FOR THE CLIENT
    • Have a powerful, clear and consistent brief for the designer
    • Born with a stron positionig platform
    • Be accepted faster than traditional timeframe
    DEVELOPING A NEW BRAND FROM A-Z
  • 58. SUCCESS STORY One Shot, flavored tequila shots, new brand, Houston Tx Foto: Eduardo Caccia DEFINE YOUR MEANINGS PRE-TEST
    • OUTCOME FOR THE CLIENT
    • Know real market possibilities
    • Avoid unnecessary spending and risks
    • Know how your brand will be perceived by the target
    USAGE, ATTITUDE AND RITUALS TESTING AN ALREADY DESIGNED BRAND BEFORE LAUNCHING IT
  • 59. Sauza Hacienda, Beam Global, Mexico BEFORE: BORING
    • OUTCOME FOR THE CLIENT
    • World Wide Award for most innovative spirit brand
    • Sales went up inmediately
    • Developed new brand identity
    • Developed poweful advertising campaing
    SUCCESS STORY REPOSITIONING AN EXISTING BRAND BRIFIEF DESIGNERS AND AD AGENCIES AFTER: FUN! GAVE BRIEF TO THE AD AGENCY AWESOME NEW BRAND EXTENSIONS CREATED RELEVANT BRAND ACTIVATION HELPED TO TAKE A DESIGN DECISION
  • 60. ALIGN YOUR MESSAGE Communication matrix for Caribe Cooler. Foto: Eduardo Caccia 1
    • SAVVY AD EXPENDING
    • LESS STRESS, MORE EFFICENCY
    • HAVE A FORMULA THAT WORKS
  • 61. INCREASE BRAND AWARENESS Communication matrix for Caribe Cooler. Foto: Eduardo Caccia Source: Nextel Mexico. Callouts by Mindcode 2
    • INCREASED LOYALTY
    • BETTER POSITIONING
  • 62. KNOW WHY THEY LOVE YOU! Lawry’s success case, Beverly Hills, CA Foto: Eduardo Caccia Three generations . The name of the game is genetic survival. This happens by keeping TRADITION alive . The brand fulfills this unconscious and REPTILIAN need. The “False Sophistication” Every element on a classic Prime Rib plate is SIMPLE. It is a mix of sophistication (meat carving) and non sophistication. Mindcode explained to a world-wide famous prime rib restaurant why its brand has such a strong connection with its target, beyond being a great place to dine with excellent food and service. The brand discovered a new business dimension after competing the Code Discovery and the Brandgenetic. 3
    • LOWER THE RISK OF WRONG DECISIONS
    • MASTER YOUR POSITIONING
    • INNOVATE ON-CODE
  • 63. EXPAND THE BUSINESS Dannon Foto: Eduardo Caccia 4 Activia: new On-Code cultural findings prove mixes that work! Danup: new size and packaging taps On-Code when talking to teens Danonino: Brand Character Book, a psychological support for better needs understanding and to help moms & kids.
    • INCREASED EARNINGS
    • MORE REASONS TO BUY THE BRAND
    • DEEPER UNDERSTANDING OF THE CONSUMER
  • 64. BUILD IT ON-CODE! Andares shopping center, Guadalajara, Mexico Foto: Eduardo Caccia 5 Brandgenetic Book: an strong innovation & brand experience guide European street vibrancy DNA adopted and put into action
    • BETTER SHOPPING CENTER IN MEXICO
    • AWARDED AN INTERNATIONAL INNOVATION RECOGNITION
    • INCREDIBLE ON-SITE BRAND EXPERIENCE
    DOUBLE CHECK
  • 65. DIFFERENTIATE & CREATE VALUE Chemuyil integrated luxury resort development, Riviera Maya, Mexico Foto: Eduardo Caccia 6 NEW MARKET SEGMENTATION POWERFUL COMPETITVE GRID & DIFFERENTATION STATEMENT
    • FIND A COMPETITIVE NICHE
    • BUILD A PROJECT WITH A STRONG BRAND PROMISE
    • KNOW WHERE TO PUT YOUR HARD-EARNED DOLLARS
    Brandgenetic Book: provided guidelines for the brand experience, design language (architecture, interior/décor), and recommended environmental approach.
  • 66. BOOST YOUR TEAM POTENTIAL Mindcode Innovation Workshops Foto: Eduardo Caccia 7
    • CREATE A FUN LEARNING ENVIRONMENT
    • DEVELOP THEIR INNOVATION CAPABILITIES
    • EMPOWER THEM TO BECOME PROUD BRAND AMBASSADORS
  • 67. CREATE COMPELING MESSAGES Frito Lay discovering its brandgenetic Foto: Eduardo Caccia 8 Mindcode’s findings served as a platform for the master brand national campaign
    • FOCUS ON YOUR UNIQUENESS
    • ALIGN CORPORATE VISION
    • EXECUTE MEMORABLE ADS
  • 68.
      • 1D BRAND CULTURE
      • Company Mission + Vision
      • Brand Ambassador development
      • HR policies
      • 2D PRODUCTS & OPERATION
      • On Code innovations
      • Brand Extensions
      • 3D BRAND IDENTITY
      • Names
      • Visual identity
      • Retail/Packaging
      • Corporate offices
      • 4D COMMUNICATION
      • Advertising/PR
      • Promotions and collaterals
      • Newsletters
      • 5D BRAND EXPERIENCE
      • Rituals/Staff dialogues
      • POP
      • Sensorial
      • 6D GOODWILL
      • Community efforts
    Without EXECUTION, you don’t have anything NOTICE MINDCODE DOES NOT PRODUCE THE ABOVE ACTIVITIES BUT ACTS AS COACHING WORKING SIDE BY SIDE WITH THE CLIENT OR WITH THIRD PARTIES INVOLVED. HOW FAR CAN WE GO?
  • 69. DIAN HASAN Empowering Brands through Culture Dian Hasan has always seen himself as a curious creature, stemming from his own unique cultural background, the result of the union of a Czech mother and an Indonesian father. Growing up across four continents and vast cultural differences, has molded him into a a global citizen aware of his immediate surroundings. Prague, Jakarta, Sydney, Rotterdam, New York, Singapore, through to San Diego today, have all left an indelible imprint of culturally-specific places. He brings his cultural sensitivity to his work in Innovation & Brand Positioning. Always considering the sheer importance of being “On-Code” and in harmony with the local culture. The Speaker Dian Hasan is a San Diego-based Brand Storyteller and Business Innovator at Mindcode ( www.mindcode ), a US-based Innovation, Brand Positioning and Consumer Behavior Research Company. He has worked with clients in the US, Mexico, Argentina, Indonesia, from various industries Dian is spearheading Mindcode’s foray into Asia, via Indonesia. Before joining Mindcode, he was with EMI Music Asia in Jakarta, where as a Managing Director, he operated during the challenging Asian Crisis (1998) when the local currency depreciated 80% against the US$. Prior to that Dian was with Amanresorts (pioneers of boutique hotels in Asia), The Four Seasons New York, American Express, The United Nations Headquarters in New York, and Coopers & Lybrand Rotterdam, The Netherlands. Dian is a regular contributor and avid blogger on Innovation & Branding, Marketing, Ecotourism & Culture, through his blog “Ideas Inspiring Innovation" www.ideasinspiringinnovation.wordpress.com . Dian holds an MSc. In Hospitality & Real Estate Studies from NYU, and a BA in Finance and Accounting from University of Indonesia. Identifying Innovation & Building Brands through an innate Cultural Understanding In our globalized world of today, cultures mesh and evolve, but the true cultural identity remains intact. And successful brands are those that acknowledge and work within this fascinating realm.
  • 70.
    • Fast Facts
    • Mindcode International is a U.S. based company specialized in non-traditional Innovation , Brand Positioning , and Consumer Research .
    • Founded 1999.
    • More than 600 projects completed.
    • Has developed brand strategies for various international companies, such as Nextel, Kodak, Cuervo, Avon, Deloitte, Dannon, Pfizer, Maseca,Whirpool, Nestlé, Bacardi, Sabritas (Frito Lay), Tecate among others.
    • Our research methodology has a scientific foundation based on the Triune Brain theory.
    • Use of social anthropology, psychology, sociology and semiotics for multi-skilled analysis.
    • Business oriented and marketing savvy.
    • Developed Brandgenetic tool for a deeper understanding of your target and to unify the brand vision across all members of the company.
    • Extensive experience in Hispanic research in Latin America.
    • > 80 associate consultants in 7 countries.
  • 71.