My much applauded Pana presentation

1. Retailing Magic Revealed ! 8 Secrets of Beautifying the Brand Image : The STORY Jade Manalaysay-Tulio Vice-President Shopper’s Division, HBC

2. The Crazy World of Retail

3. OVERVIEW: PHILIPPINE RETAILING MARKET B usiness T hreats

4. OVERVIEW: PHILIPPINE RETAILING MARKET Business Threats Increasing Labor Costs

5. OVERVIEW: PHILIPPINE RETAILING MARKET Business Threats Increasing Overhead Costs  Utilities  Rent  Supplies

6. OVERVIEW: PHILIPPINE RETAILING MARKET Business Threats Smuggled Cheap China Products

7. OVERVIEW: PHILIPPINE RETAILING MARKET S P ources of rofits

8. OVERVIEW: PHILIPPINE RETAILING MARKET Profit Sources Display Allowance/ Display Rentals Supplier’s Pass On Discount Product Introduction Support Promo Support / Others

9. The Retail Language Think like a Retailer

10. Magic in Retail Marketing : It’s all a SHOW ! The Stage : The Performing Arena The Performer The Bag of Tricks The Skeptic Audience     4 Elements of Retailing Magic

11. First Element The Performing Arena : The Store

12. The Performing Area : The Stage The Performer The Audience

13. Rising Power of Retailers Rising Power of Shoppers RETAILIZATION

14. Scary Brand Fact # 1 70% of purchase decisions are made in-store POPAI – POP attitude and imagery study 2005

15. Scary Brand Fact # 2 : The First Moment of Truth Shoppers waste no more than 6 seconds before selecting a brand Economist 2005

16. International Retailization Study 2005 Scary Brand Fact # 3 An average of 74% of shoppers in various categories will NOT change store even if their retailer stopped stocking their favorite brand X

17. International Retailization Study 2005

18. Scary Brand Fact # 4 International Retailization Study 2005 Are private label products a good alternative to other brands? YES ! Global shoppers - 68% Asia - 51% Philippines - 30-40% but growing!

19. Retailers own the point of contact between shoppers and brands

20. OPTIMIZING SALE S CONNECTING BRANDS to SHOPPERS RETAILIZATION POWER of RETAIL THINKING

21. OPTIMIZE the BRAND at all points of contact with the retail world SHELF WINDOW CASHIER AISLES/ ACTIVITY AREA Tester area On-site activation off-site activation On-line

22. The meeting place between your products and the shoppers BUY TRY “ THE SHELF”

23. The Theater of Retail : Improving Volume through In-store Marketing and Promo Second Element : The Skeptic Audience

24. The Age of the Shopper

25. INFORMED DEMANDING “ For the first time, the customer truly is the BOSS, which is fascinatingly frightening because everything we used to do and used to know will NO LONGER WORK “ Kevin Roberts, Saatchi & Saatchi

26. Be in the SHOPPER FIRST Business Shopping fulfills a social function Create WANTS ! Not Needs ! WANT = WHAT DRIVES US Reimagine the boring chore of buying things Fun and exciting

27. NOT INDIVIDUALS S I T U I D A L S

28. PE O PLE Z A P !!

29. RETAILIZATION LOVES the SITUATION and LOVES the SHOPPER

30. The Theater of Retail : Improving Volume through In-store Marketing and Promo Third Element : YOUR Brand as the Performer Zeroing the Spotlight

31. RETAIL IMPACTING CREATE SHOPPING SITUATIONS IMPACTFUL and HAPPENING PURCHASE EXPERIENCE INTERACT WITH THE PRODUCTS Pike Place NOT JUST 2 D BUT 3D, MAKE IT A WHOLISTIC AND SENSORY BRAND EXPERIENCE !!

32. SCENE 4 : RETAIL IMPACTING SERVICE = EXPERIENCE DRIVEN AND A PARTICULAR WAY OF DELIVERING LOVE SPOIL YOUR SHOPPERS ROTTEN!! SHOW THEM YOU CARE ABOUT THEIR SHOPPING : LOVE ME DO !

33. SCENE 4 : RETAIL IMPACTING HOW-TOs 1.) KEEP IT F RESH 2.) E XTEND THE IDEA 3.) M ERGE THE FIRST & SECOND MOMENT OF TRUTH 4.) CREATE C LARITY & I NVOLVEMENT F E M C I

34. STEP 1 KEEP IT F RESH – The Latest & The Hottest

35. Courtesy of Proximity Worldwide, A CRM subsidiary of BBDO

36. STEP 2 E XTEND THE IDEA -Use your point of difference to create an impact in-store Make the shelf come alive by putting on a SHOW

37. THE SHOW IN-STORE OFF-SITE BRAND ACTIVATION AT ALL TOUCH POINTS

38. STEP 3 M ERGE the FIRST & SECOND MOMENT OF TRUTH TRY BUY

40. STEP 4 CREATE C LARITY & I NVOLVEMENT Need clear & relevant reasons to choose your brand

41. Involve the customer in THE SHOW But make sure it is simple! 5 minute recipe!

42. The Theater of Retail : Improving Volume through In-store Marketing and Promo Fourth Element : The Bag of Tricks

43. VALUE INNOVATION : MULTIBRANDED PRIVATE LABELS The Story

44. The Story

45. The Story DIFFICULT BEGINNING Negative business operations Traditional Sources of Retail Profits (Discounts, Rentals, Promo support) cannot offset the Losses Store Brand Identity Crisis – Convenience? Salon? Personal Care?

46. The Story The Only way to beat competition is to STOP beating competition Blue Ocean Strategy Breaking the Convention Using Strategic Groups Stand out in the industry !!

47. The Story CHANGE IN THE VISION

48. The Story Blue Ocean Strategy

49. The Story Blue Ocean Strategy

50. The Story Blue Ocean Strategy

51. The Story Blue Ocean Strategy

52. The Story Blue Ocean Strategy

53. The Story From Canned Goods to Personal Care  A collective term to describe our private labels  Brands that cannot be found in other stores  Nicknamed “BEX”, visualized via a shopping bag  Started with 4 brands,100 skus and 3% share of business in 2002

54. The Story NOW, with 16 brands 1008 skus 63% share of business From Canned Goods to Beauty Exclusives

56. The Story Multi-Branded Private Labels THE PRODUCTS  Speed and quality in product development (average of 60 new skus in a month)  Partnership with accredited toll manufacturers  Spearheaded by NPCOM (New Products Committee) with active involvement of management

57. The Story Natural skin care for women

58. The Story Cosmetics for Adult women

59. The Story Dermatological skin care for women

60. The Story Personal care for Teens/Tweens

61. The Story Babies/Toddlers/Kids

62. The Story Men

63. The Story General Hygiene for women

64. The Story Natural Oral Care Line

65. The Story Home Care

66. The Story Health Care

67. The Story Healthy Beverage

68. The Filipino Salon The Freelance Beautician 10,000 8,000 Business To Business Market

69. The Story HairCare

70. The Story Sharpening service

71. THE REST OF THE MARKETING TRANSFORMATION The Story

72. The Story LOCATION Strategy Community Locations : Defensive Strategy Mall Locations : Offensive Strategy NOW, 180 stores NATIONWIDE

73. The Story STORE IMAGE BEFORE  Darkly Lit, No aircon  No uniform look, grocery store design  Tending shelves, closed glass cabinets  80% of space grocery items  Floor size – 2 floors  Assortment – 50% grocery NOW

74. The Story STORE IMAGE

76. The Story PRICE VALUE FOR MONEY  High Quality at par with competition  Priced 10-30% lower than popular brands

77. The Story PEOPLE IMPROVED  Looks  Product Knowledge  Customer Service

78. The Story PROMO One of a Kind Marketing Campaigns

79. STORE BRAND FIRST PRODUCT BRANDS SECOND The Story

80. The Story Communication Strategies

81. How do we connect to the consumer ?

82. ADVERTISING CAMPAIGNS The Story One of a Kind Marketing Campaigns

83. STORE BRAND

85. OUTDOOR & PR / NON-TRADITIONAL The Story One of a Kind Marketing Campaigns

89. DIRECT MARKETING/ PARTNERSHIPS & IN-STORE PROMOS The Story One of a Kind Marketing Campaigns

93. ACT 4 : Where would an actor be without his lines? THE MAGIC OF GIVEAWAYS INSTANT GRATIFICATION THROUGH REWARDS TRUST THAT YOUR CUSTOMER WILL COME BACK REWARD NOW, EARN A LOT LATER

95. The Story THE BEAUTIFUL RESULTS

96. The Story WALK-IN

97. The Story TRANSACTION COUNT

98. The Story Total Store REVENUE In Millions

99. The Story PROFIT In Millions

100. The Story SECRETS REVEALED! 8

101. The Story TIP # 1 Be Unique Differentiate

102. The Story TIP # 2 Get the whole organization to buy in and embrace the vision

103. The Story TIP # 3 Invest in Product Development & Innovation

104. The Story TIP # 4 Go to the Frontline – listen to your customers

105. The Story TIP # 5 Empower the branches through local store marketing aligned with brand DNA

106. The Story TIP # 6 Speed to market gives you the edge

107. The Story TIP # 7 Be on the lookout for the Hottest Trends

108. The Story TIP # 8 Everyone in the organization should be Marketing Oriented

109. The Story RECOGNITION

110. The Story EXPANSION

111. The Story Giving Everyone the right to be beautiful