Your SlideShare is downloading. ×
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round

5,558

Published on

Marcus Evans Retail Marketing Excellence Conference …

Marcus Evans Retail Marketing Excellence Conference
Bangkok, March 2011

• Setting yourself apart from competitors by constructing different in-store
activities designed at harnessing a consistent traffic flow
• Discovering how minor promotions in-store can drive traffic into your outlets
• Performing ever changing store concepts that drive the attention of window
and random shopper
• Conducting minor store evaluations involving display features and merchandise
presentations to ensure that it is still attractive
• Setting yourself apart from competitors by constructing different in-store
activities designed at harnessing a consistent traffic flow
• Discovering how minor promotions in-store can drive traffic into your outlets
• Performing ever changing store concepts that drive the attention of window
and random shopper
• Conducting minor store evaluations involving display features and merchandise
presentations to ensure that it is still attractive

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
5,558
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
106
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. SPOTTING BUYING PATTERNS AND MAINTAINING A CONSISTENT TRAFFIC FLOW ALL YEAR ROUND Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhadwww.myCNI.com.my www.OOBEY.com
  • 2. Intro: CNI 1. 22 years old 2. Core Business: MLM 3. Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services 4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam 5. Staff force: ± 500 6. Distributors: 150,000 7. Products: Consumer Goods and Serviceswww.myCNI.com.my www.OOBEY.com
  • 3. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  • 4. The World Todaywww.myCNI.com.my www.OOBEY.com
  • 5. The World Today 13th April 2009 •Two Domino’s employees •YouTube •Apology from Domino’s after 48 hours •1 million hits •Twitter: questions on silence •LinkedIn: suggestions by users in forum BusinessWeek, May 4, 2009www.myCNI.com.my www.OOBEY.com
  • 6. Guess Who?
  • 7. Buying Pattern: What and Why? 1. Study of when, why, how, and where people do or do not buy 2. Multi-discipline: psychology, sociology, social anthropology and economics 3. Used for retail mix: nature of merchandise and service offered, pricing policy, advertising and promotion program, approach to store design and visual merchandising, typical locationwww.myCNI.com.my www.OOBEY.com
  • 8. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  • 9. 1. Wrong Business Model • How to fail without tryingwww.myCNI.com.my www.OOBEY.com
  • 10. The Roadmap to Failure Performance Fred Wiersema and Mike Treacy Today’s performance Doom Projections Clear Sailing Denial & Defense Timewww.myCNI.com.my www.OOBEY.com
  • 11. Denial and Defense • “It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia • “It’s good value but not in our preferred customer market.” - ABC vs Toyota • “Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO • “The rules we are playing by have always worked before” – AMEX vs VISAwww.myCNI.com.my www.OOBEY.com
  • 12. The Roadmap to Failure Fred Wiersema and Mike Treacy Downpresure of Unclear Strategy Performance Today’s performance Doom Projections Clear Sailing Denial & Defense Timewww.myCNI.com.my www.OOBEY.com
  • 13. Ad Hoc Tactics • Selectively hold discounts to hold business that has started to go elsewhere • Introduce new promotions, terms, conditions, and offers to confuse and cloud the market • Beef up customer service by adding people to fix mess- ups and quicken delayed shipments • Delay capital investments and adjust accounting methods to portray quarterly financial results more favorably • Introduce “new and improved” products that are new in form, but not in substantive ways that are of consequence to purchasers • Introduce Balanced Scorecards and Performance Management Systemswww.myCNI.com.my www.OOBEY.com
  • 14. The Roadmap to Failure Fred Wiersema and Mike Treacy The Moment of Downpresure of Truth Unclear Strategy X Performance Performance Freefall Today’s performance Doom Tomorrow’s Projections actual performance Clear Sailing Denial & Defense Overdue Failure Timewww.myCNI.com.my www.OOBEY.com
  • 15. “What is the moral of the story?”www.myCNI.com.my www.OOBEY.com
  • 16. Alignment: 4-Wheels Model Business P Model P Growth Strategy Customer P Pwww.myCNI.com.my www.OOBEY.com
  • 17. Business Model and Strategic Marketing The biggest impactwww.myCNI.com.my www.OOBEY.com
  • 18. www.myCNI.com.my www.OOBEY.com
  • 19. www.myCNI.com.my www.OOBEY.com
  • 20. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests *Adapted from: Businessweek , Februrary 5th 2007www.myCNI.com.my www.OOBEY.com
  • 21. What is the Business Model? •Google •Tata Nano USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  • 22. What is the Business Model? USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  • 23. Business Model: USP Unique Selling Proposition (USP) = Targeted Customer = Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD)www.myCNI.com.my www.OOBEY.com
  • 24. Business Model: USP Obstacles to JBTD: 1. Insufficient WEALTH 2. Insufficient ACCESS 3. Insufficient SKILL 4. Insufficient TIMEwww.myCNI.com.my www.OOBEY.com
  • 25. What is the Business Model? USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  • 26. Business Model: Profit Model Revenue Assets Cost Cash Margin Flowwww.myCNI.com.my www.OOBEY.com
  • 27. Market Discipline Product "They are the most innovative" •LV Leadership "Constantly renewing and creative" "Always on the leading edge" •Air Asia Operational •Ramly Customer Intimacy Excellence "Exactly what I need" "A great deal!" Customized products Excellent/attractive price Personalized communications Minimal acquisition cost and "Theyre very responsive" hassle Preferential service and Lowest overall cost of flexibility ownership Recommends what I need "A no-hassles firm" "Im very loyal to them" Convenience and speed Helps us to be a success Reliable product and servicewww.myCNI.com.my www.OOBEY.com
  • 28. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995www.myCNI.com.my www.OOBEY.com
  • 29. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995www.myCNI.com.my www.OOBEY.com
  • 30. Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995www.myCNI.com.my www.OOBEY.com
  • 31. Market Discipline: Disciplines, Priorities, and KPIs Operational Product Leadership Customer Intimacy Excellence • New, state of the • Management by • Competitive price art products or Fact services • Error free, reliable • Easy to do • Risk takers business with • Fast (on demand) • Meet volatile • Have it your way • Simple customer needs (customization) • Responsive • Fast concept-to- • Market segments • Consistent counter of one information for all • Never satisfied - • Proactive, flexible • Transactional obsolete own and • Relationship and competitors • Once and Done consultative products selling • Learning • Cross selling organizationwww.myCNI.com.my www.OOBEY.com
  • 32. Alignment & Consistency Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995www.myCNI.com.my www.OOBEY.com
  • 33. Alignment & Consistency Apple powerful Product Leadership products, premium (best product) pricing, limited range Still Doing well in HP well-balanced Acer super lean 2009/2010 portfolio, mass cost structure, aggressive pricing customization Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995www.myCNI.com.my www.OOBEY.com
  • 34. Alignment & Consistency: Business Model USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  • 35. Alignment: 4-Wheels Model Business P Model P Growth Strategy Customer P Pwww.myCNI.com.my www.OOBEY.com
  • 36. Growth Strategy “Double-Digit Growth”, Michael Treacy 1.Base Retention 5.New Business 2.Share Gain GROWTH 4.Adjacent Market 3.Positioningwww.myCNI.com.my www.OOBEY.com
  • 37. Growth Strategy “Double-Digit Growth”, Michael Treacy •Increase switching cost •Customize products 1. Base Retention •Preempt Defections •Brand 5. New Business 2. Share Gain •Neutralize Competitor GROWTH advantages •Superior Value •Promising Market? •Buy market share •Make or Buy? 4. Adjacent Market 3. Positioning •Spot growth opportunities •Organized searchwww.myCNI.com.my www.OOBEY.com
  • 38. How Markets determine Growth Strategies (1) • Growth Rate Growth Strategy Why? Rate Fast 1. Market •Maintain market share in strategic Positioning segments 2. Share Gain •Prepare for market decline 3. Base •Competitors focus too much on Retention getting new customers Flat 1. Base •Lose customers slower than Retention competitors 2. Share Gain •Create scale economics, squeeze (Acquisitions) costswww.myCNI.com.my www.OOBEY.com
  • 39. How Markets determine Growth Strategies (2) • Churn Rate Churn Strategy Why? Rate Low 1. Share Gain •Buying customer base is (Acquisitions) cheaper than own efforts 2. Adjacent •New products, old customers Markets strategy High 1. Base •Lose customers slower than Retention competitors 2. Share Gain •Customers are always open to 3. Adjacent the best value and offer Market •Desperate to gain revenuewww.myCNI.com.my www.OOBEY.com
  • 40. How Markets determine Growth Strategies (3) •Example: XYZ Sector Fast Growth, 1.Market Positioning Low Churn 2.Share Gain 3.Base Retention 4.Adjacent Marketswww.myCNI.com.my www.OOBEY.com
  • 41. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  • 42. Business Strategy vs. Consumer
  • 43. Post Recession Trends and Implications Industry Convergence/ Extinction Social Networking What do these Increased Regulations mean to us? Green & CSR Non-Profit/NGO increasewww.myCNI.com.my www.OOBEY.com
  • 44. Global Trends Back-sourcing Power re-balancing Bottom-up Mergers, Acquisitions Innovation/Disruptions & Divestment Mobile Devices Lower Middle Class rule Nationalism and Extreme Emerging Protectionism Countries Currency Wars BRIC and PIIGSwww.myCNI.com.my www.OOBEY.com
  • 45. Retail Trends? Cutting back In-store Ads Let consumers help RFID technology themselves Smaller stores Niche private labels Ready-made Eco-friendly stores products Ethnic stores In-store restaurantswww.myCNI.com.my www.OOBEY.com
  • 46. Most Popular Question “When will we return to the last time?” Wrong Questionwww.myCNI.com.my www.OOBEY.com
  • 47. Marketing Todaywww.myCNI.com.my www.OOBEY.com
  • 48. Retail Adaptation: McDonald’s Menu Product Variation: – 80% Global, 20% Local – home-style meals (Boston Market)  – burritos (Chipotle)  – coffee (McCafé) – DVD rentals (Redbox)  – Premium menu items (snack wraps, sweet tea Frappes)www.myCNI.com.my www.OOBEY.com
  • 49. Retail Adaptation: McDonald’s Design $2.4 billion to: •redo at least 400 domestic outposts, •refurbish 1,600 restaurants abroad, and •build another 1,000www.myCNI.com.my www.OOBEY.com
  • 50. Retail Adaptation: McDonald’s Design 1. Corporate design leader for each operating regions; that person contracts with a regional designer who can figure out what other local design elements might make a space feel individual and authentic 2. Solicits ideas from leading design firms such as Ideo, Rockwell Strategic, and boutique firms around the globe.www.myCNI.com.my www.OOBEY.com
  • 51. Grocery Store of the Future “Supermarket Strategies: Whats New at the Grocer”, Bloomberg Businessweek, June 8, 2009www.myCNI.com.my www.OOBEY.com
  • 52. The Grocery Store of the FutureBy Damian JosephGoing SmallWhos Doing It: Wal-Mart, Safeway, Super Value, TescoWhats New: Companies known for vast supermarkets are openingup small-format stores. Wal-Marts Marketside (WMT), SafewaysThe Market (SWY), Super Values Urban Fresh (SVU), and TescosFresh & Easy all focus on selling fresh produce, ready-made meals,and organic or natural products. The idea is to penetrate denselypopulated neighborhoods and inspire daily shopping visits.
  • 53. Going EthnicWhos Doing It: Wal-Mart, PublixWhats New: In an effort to serve the growing Hispanicpopulation, companies are opening up stores dedicated tothem. Wal-Marts Supermercado and Publixs Sabor sellLatino-style bakery products and ingredients, prepared foods,fresh tortillas, and the stores have bilingual staffs.
  • 54. Meal AssemblyWhos Doing It: Super Suppers, Dream DinnersWhats New: Somewhere between takeout and a grocery store,meal assemblers sell entire dinners that have yet to be cooked.The meals follow restaurant-style recipes and come with freshingredients that are pre-cut or proportioned. The customer takesthe food home, puts it together, and cooks for an immediate mealor to freeze for later. Dinners that serve six people are popular forentertaining.
  • 55. Smart PackagingWhos Doing It: Sira Technologies, University of Rhode Island,Manchester UniversityWhats New: Researchers are developing packaging that senseswhen food spoils. Working with the University of Rhode Island, SiraTechnologies created bar codes that turn red, and therefore cannotbe scanned, when a special ink detects temperature increases,which can breed contaminates like E coli or salmonella. Scientists atManchester University are working on refrigerators that will text ore-mail an alert when packaging senses fresh meats have gone bad.
  • 56. Shopping Cart WashWhos Doing It: PureCart SystemsWhats New: Anything that people put their hands on becomes asurface that can spread germs. To keep that from happening,PureCart is selling a car wash for carts. Employees run shoppingbaskets through a machine that looks like a metal detector andsprays them with a mixture of water, peroxide, and vinegar to killbacteria. Though the device costs $10,000, each wash takes only afew seconds and is cheaper over time than sanitizing carts withdisinfectant wipes
  • 57. GrocerantsWhos Doing It: Whole Foods, Wegmans, Roche Bros.Whats New: What started as a deli counter or hot food sectionhas become an entire restaurant. To keep up with competitionfrom local eateries and ramp up store traffic, grocerants—a playon grocer and restaurant—are doing the cooking. Whole Foods(WFMI) and Wegmans are among chains adding sit-down areaswith tables and chairs.
  • 58. Niche LabelsWhos Doing It: Safeway, Trader Joes, Target, SuperValuWhats New: Private labels are finding their own niches. Safewaynow has Bright Green natural cleaning and laundry productsmade from biodegradable ingredients and Organics foods, likecereals, sauces, and cookies. These products successfullycompete with name brands and typically bring bigger returns togrocers. Other examples include Wild Harvest at SuperValusJewel, Archer Farms at Target (TGT), and Trader Joes eponymousproducts.
  • 59. Smart Shopping CartsWhos Doing It: Stop & Shop, IBM, Springboard NetworksWhats New: Wireless-enabled shopping carts with mini-computers on board—like IBMs Shopping Buddy (IBM) andSpringboard Networks Concierge—allow customers to keep arunning tab by scanning products as they shop, see whats onsale in the aisle theyre in, search for products, pay, and leavewithout waiting in line. Grocers can save on labor costs andadvertisers can connect with highly specific target audiences.
  • 60. Mobile CouponsWhos Doing It: Kroger, Cellfire, ZaversWhats New: Companies are offering coupons on cell phones andonline. Customers can save the coupons to their stores "loyaltycards" or simply show their phones to the cashier. For customers,the service makes saving money easier. It cuts costs for grocers,too, since they dont have to hassle with paper coupons. Inaddition, e-coupons provide real-time market data and boostcustomer use of loyalty cards.
  • 61. Mobile ScannersWhos Doing It: Metro Group, Big in Japan, OccipitalWhats New: Customers can now use cell phones to scan productbar codes to comparison shop or read reviews about a particularitem. Big in Japans ShopSavvy and Occipitals RedLaser relayproduct info to consumers after they scan items via the built-incameras on their phones. Metro Groups Real hypermarkets inGermany are testing a system in which customers would registertheir cell phones to use as a payment/checkout device.
  • 62. Advanced In-Store TV NetworksWhos Doing It: Wal-Mart, Premier Retail Networks, Studio 2, DS-IQ, Kroger, In-Store Broadcasting NetworkWhats New: Individually programmable video monitors displayadvertising and product information. The in-store networks letadvertisers target ads by day, time, and aisle, and provide themwith proof of performance and sales reports. Two years and $10million in the making, Wal-Marts Smart Network is powered byinternet protocol television.
  • 63. Marinade on DemandWhos Doing It: Sealed AirWhats New: Eliminating the mess, excess packaging, and hassleof marinating raw meat, Sealed Airs (SEE) Marinade on Demandsystem puts meat and marinade in separate compartments in thesame package. When consumers get home, they squeeze themarinade pocket to break the seal between the two and leave themeat to marinate as long as they like.
  • 64. Whole Canned ChickenWhos Doing It: Sweet SueWhats New: Sales of canned meats such as Hormels Spam haveincreased in the recession. Now Sweet Sue, a unit of San Diego-based Castleberrys offers a precooked, whole chicken that canbe eaten right out of the can. The listed ingredients on the 50-oz.tin are only chicken, water, and salt.
  • 65. Instant Coffee WarsWhos Doing It: Starbucks, NestléWhats New: It was only a few years back that Nestlé (NESN)introduced "stick packs," one-serving instant coffee packages of itsTasters Choice brand. Starbucks (SBUX) jumped in this year its ownversion, Via, which garnered a lot of attention due to thecompanys barista roots. Nestlé has since fired back with a lowerprice per stick and an array of flavors.
  • 66. Social Grocery ShoppingWhos Doing It: Zeer.com, Most Grocery StoresWhats New: Grocery stores are building networks of followerson Twitter, Facebook, blogs, and other social media sites.Shoppers can join Zeer.com, an online social shopping site thatlets users scan reviews on more than 110,000 products, joincommunities of customers with similar tastes, and createshopping lists with favorite items automatically added. Zeer hasan application for iPhones, too.
  • 67. Natural Pet ProductsWhos Doing It: Purina, Rachael Ray, Eukanuba, Natures RecipeWhats New: For years, pets munched on indistinguishableprocessed food, with only a few brands offering high-qualityproducts for dogs and cats. Today, natural and organic pet food isall the rage, with lines from Natures Recipe (DLM), Procter &Gambles Eukanuba, and Nestlés Purina. Rachael Ray has asignature line of natural dog food. Canadas Medi-cal sells a veganversion, and for dessert, TBD Brand of Exeter, N.H., offers Yöghundorganic frozen yogurt.
  • 68. New RecyclablesWhos Doing It: Frito-Lay, Primo Water, Biota BrandsWhats New: With the push for green products, companies areupgrading packaging. Frito-Lays (PEP) Sun Chips soon will comein compostable bags made from a plant-based plastic called PLA.Similar eco-plastics made from corn or sugar cane are being usedfor beverages, such as Primo and Biota bottled waters. Anothercompany, Boxed Water is Better, sells water in cartons made from85% recycled waste that are re-recyclable.
  • 69. Conveyor Belt AdsWhos Doing It: Kroger, EnVision MarketingWhats New: Those revolving black belts that groceries ride to thecashiers waiting hands are now valuable marketing space. LittleRock (Ark.)-based EnVision Marketing patented a process to printads directly onto the belts, which are nearly impossible forcustomers to miss. Kroger (KR) is trying out the system in some ofits stores.
  • 70. Home Delivery 2.0Whos Doing It: AmazonWhats New: The worlds biggest online retailer is testing theviability of grocery delivery to homes in parts of Seattle. Theconcept isnt brand new—PeaPod and Webvan arose almost adecade ago—but Amazons (AMZN) shipping operations aresecond-to-none. If Amazon finds big profits where others couldnt,it probably wont be long before the service expands to othermarkets.
  • 71. Made in Transit ProduceWhos Doing It: Wageningen University, Agata JaworskaWhats New: Instead of growing produce in a field or hothouseand then shipping it, scientists from Wageningen University areexperimenting with mushrooms that grow as theyre shipped. Theschool is working with Agata Jaworska, who invented the methodas a graduate student at the Design Academy Eindhoven in theNetherlands. They think the process could be adapted for micro-vegetables or baked goods, too.
  • 72. Three-Tiered Private LabelsWhos Doing It: Kroger, Food Lion, Winn DixieWhats New: Introducing a "good," "better," and "best" approachto food sales, grocers are using tiered labels to reach differentstrata of consumers. At Kroger, Kroger Value products are thecheapest; Kroger is the mid-level, and Private Selection is the mostexpensive. Similar approaches have boosted sales at Food Lion andWinn Dixie (WINN), while providing the chance for higher markups.
  • 73. Green GrocersWhos Doing It: Price Chopper, SuperValu, Kroger, PCC NaturalMarkets, Giant Eagle, TargetWhats New: Grocery stores used to burn electricity like Hummersburned gasoline, but times have changed. Call it green-washing ora way to cut costs, grocery stores have begun racking up eco-certifications from the U.S. Green Building Council. From efficientlighting to bamboo flooring, grocers are becoming lean, green,energy-saving machines.
  • 74. Super Discount ShopsWhos Doing It: Aldi, Local Surplus StoresWhats New: With a sinking economy, shoppers are straying fromexpensive name brands and seeking the best deals available.Though super-discounters like Aldi dont carry wide selections orbrand names, the prices are dirt cheap. Surplus stores are alsospringing up that sell slightly older products at lower costs.
  • 75. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  • 76. Dangers of Best Practice, Benchmarking & Market Research “Abraham Wald’s Work on Aircraft Survivability”, M. Where would Mangel and F.J. Samaniego you focus reinforcement?www.myCNI.com.my www.OOBEY.com
  • 77. Dangers of Best Practice, Benchmarking & Market Research high zero Perfor Company mance Performance Trend line low low ‘Best Practice’ high theories “Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005www.myCNI.com.my www.OOBEY.com
  • 78. Dangers of Best Practice, Benchmarking & Market Research Trend high line zero Perfor Company mance Performance low low ‘Best Practice’ high theories “Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005www.myCNI.com.my www.OOBEY.com
  • 79. Dangers of Best Practice, Benchmarking & Market Research Selection Bias: 1. Success Traits = Failure Traits 2. Successful Cases + Failure Cases 3. Worst effects in ‘Old’ industries 4. Overvalue ‘best practice’ theories 5. Current accomplishments unfairly magnified by past achievements 6. Reverse Causalwww.myCNI.com.my www.OOBEY.com
  • 80. Dangers of Best Practice, Benchmarking & Market Research Also known as ‘Beware of Consultants’: 1. Selection Bias (availability, brand, recency) 2. Big vs. Small company 3. Selective success stories 4. Correlation vs. Causal 5. Survey problems 6. Practical vs. Glamour-to-havewww.myCNI.com.my www.OOBEY.com
  • 81. Correlation vs. Causal 1. 8 out of 10 rich people drive Mercedes in Malaysia 2. 4 out of the top 5 supermarket chains have a loyalty program 3. 4 out of the top 5 supermarket chains increased sales after having a loyalty program 4. 4 out of the top 5 supermarket chains increased sales after having a loyalty program and adapting promotionswww.myCNI.com.my www.OOBEY.com
  • 82. Geo-Marketing: Where? 1. Where do my customers live, and where do they buy? 2. Where are my competitors? 3. Where are my marketing efforts invested? 4. Where are my opportunities? i.e. Where should I put my next Point of Sale? 5. Where are my sales representatives? 6. To what advertising medium do my customers respond? Billboards? Mobile coupons? Where were they when exposed to my campaign? 7. Are products sold better in particular zones? Where and why?www.myCNI.com.my www.OOBEY.com
  • 83. Geo-Marketing & Consumer Behavior Some characteristics of consumer behavior are closely related to the: • place where they live, • climate, • location and culturewww.myCNI.com.my www.OOBEY.com
  • 84. The New World Order •history •race •ethnicity •religion •culture Newsweek, September 26, 2010www.myCNI.com.my www.OOBEY.com
  • 85. The New World Order • Generous Welfare systems • 6 of the top 8 on Legatum Prosperity Index • some of the world’s highest savings rates (25 % or more), The New Hansa • impressive levels of Denmark, Finland, employment, education, Germany, Netherlands, and technological Norway, Sweden innovation. Newsweek, September 26, 2010www.myCNI.com.my www.OOBEY.com
  • 86. The New World Order • Poverty rates are almost twice as high, labor participation is 10 to 20 percent lower (vs. Hansa) • Huge government debt • Lowest birthrates • Some of the world’s oldest The Olive Republics population Bulgaria, Croatia, Greece, Italy, Kosovo, Macedonia, Montenegro, Portugal, Slovenia, Spain Newsweek, September 26, 2010www.myCNI.com.my www.OOBEY.com
  • 87. The New World Order • Rich in minerals, fresh water, rubber, and a variety of foodstuffs • Suffer varying degrees of political instability. • Trying to industrialize and diversify economies. The Rubber Belt • Household incomes Cambodia, Indonesia, Laos, remain relatively low, Malaysia, Philippines, • Potential high-growth Thailand, Vietnam region. Newsweek, September 26, 2010www.myCNI.com.my www.OOBEY.com
  • 88. The New World Order • Newsweek, September 26, 2010 The Border Areas • Stand-Alones: • City-States: • Brazil, France, – London, Paris, Greater India, Japan, Singapore, Tel Aviv South Korea, • North American Switzerland Alliance • Russian Empire • Liberalistas • The Wild East • Bolivarian Republics • Greater Arabia • Iranistan • South African Empire • The New Ottomans • Sub-Saharan Africa • Maghrebian Belt • Lucky Countries • Middle Kingdomwww.myCNI.com.my www.OOBEY.com
  • 89. www.myCNI.com.my www.OOBEY.com
  • 90. Recession Generationwww.myCNI.com.my www.OOBEY.com
  • 91. Men vs. Women: Getting Dressed
  • 92. Men vs. Women
  • 93. Basket Analysiswww.myCNI.com.my www.OOBEY.com
  • 94. Basket Analysis None of these 1,800 SKUs are top sellers!www.myCNI.com.my www.OOBEY.com
  • 95. Basket Analysis • Low-frequency/high-correlation SKUs • These items – sell rarely, – sit on the shelf for along time, – will only sell if the paired item is available • Problem SKUs • Capital hogs and always show up in inventory issues.www.myCNI.com.my www.OOBEY.com
  • 96. Concrete vs Abstract Mindset Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010 Abstract Broad and general Over- arching Purpose Shared Concrete Product Attributeswww.myCNI.com.my www.OOBEY.com
  • 97. Concrete vs Abstract Mindset Shared Abstract Product Attributes Execution or Usage purpose Lower level details Concrete Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010www.myCNI.com.my www.OOBEY.com
  • 98. Color Psychology Cultural Variations; white remind us of something = marriage (western) = familiar death (China). Purple = e.g. blue = calm death (Brazil) Yellow = Children = Bright sacred (Chinese) = Primary Colors e.g. sadness (Greece) = toys, clothes and jealousy (France) childrens books Red , Orange = Young = bold colors; to eat quickly and older = subtle palettes. leave Carpeting to influence patterns of travelwww.myCNI.com.my www.OOBEY.com
  • 99. Target: Decision Chain Again: different type, Influencer different strategy Buyer Userwww.myCNI.com.my www.OOBEY.com
  • 100. Target: Customer Types 1. Don’t know you 2. Know you, Buy from you 3. Know you, don’t buy from you 4. Know you, Hate youwww.myCNI.com.my www.OOBEY.com
  • 101. Target: Customer Types Buy From you Value Swing Former Oppositionwww.myCNI.com.my www.OOBEY.com
  • 102. Downturn: Customer Types vs. Branding Customer Types Your Products/Services Hand brake Expandables Postponables Essentials Surviving Treats Well Off Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 103. Downturn: Customer Types vs. Branding Your Products/Services Essentials Treats Post- Expan- ponables dables •Necessary •Indulgences •Needed or •Unnecessary •Survival •Justifiable desired •Unjustifiable •Well-being •Can be put offwww.myCNI.com.my www.OOBEY.com
  • 104. How should I Service Them? Self Reliant Need Help Seek Searchers Collaborators Change Seek Streamliners Delegators Stabilitywww.myCNI.com.my www.OOBEY.com
  • 105. www.myCNI.com.my www.OOBEY.com
  • 106. www.myCNI.com.my www.OOBEY.com
  • 107. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  • 108. The real goal of Marketing and Branding Understanding our role in the whole scheme of thingswww.myCNI.com.my www.OOBEY.com
  • 109. What is the purpose of Marketing & Branding? Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.” “Retention and Loyalty are useless if No Conversion is happening.” Sergio Zymanwww.myCNI.com.my www.OOBEY.com
  • 110. What is the purpose of Marketing & Branding? “Retention and Loyalty are useless if No Conversion is happening.” “Communication is useless if No Conversion is happening.”www.myCNI.com.my www.OOBEY.com
  • 111. Which Company? American Customer Satisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax) • 2nd last among 30 companies surveyed • Lowest 5% among 223 companies surveyed • Bottom 5% of all measured private sector companies • 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Reportwww.myCNI.com.my www.OOBEY.com
  • 112. Which Company? American Customer Satisfaction Index (ACSI) • 64 out of100-point scale: lower than IRS (Tax) • 2nd last among 30 companies surveyed • Lowest 5% among 223 companies surveyed • Bottom 5% of all measured private sector companies • 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Reportwww.myCNI.com.my www.OOBEY.com
  • 113. Popularly Unpopular Popularity ≠ Affectionwww.myCNI.com.my www.OOBEY.com
  • 114. Philosophy Loyalty is Useless • Virtual Consumption vs. Real Consumptionwww.myCNI.com.my www.OOBEY.com
  • 115. Philosophy Loyalty is misleading • Heavy Consumption ≠ Loyalty • Loyalty ≠ Heavy Consumptionwww.myCNI.com.my www.OOBEY.com
  • 116. What is the Objective? 1.Marketing = Relationship (something like Dating) 2.Marketing ≠ Media glitz 3.Marketing ≠ ATL/BTL/BwTL/ArTL/FTL 4.Marketing ≠ CSR 5.Marketing = Get more people, to buy more, more frequently, at higher priceswww.myCNI.com.my www.OOBEY.com
  • 117. Loyalty 1: Experience Operational Excellence: Quality and selection in key categories with unbeatable prices Product/Service Attributes Relationship Image Price Time √ Smart Selection √ Shopper Quality * Treacy & Wiersema, The Discipline of Market Leaders, 1995www.myCNI.com.my www.OOBEY.com
  • 118. Loyalty 1: Experience Product Leadership: Unique products and services that push the standards Product/Service Attributes Relationship Image √ Time √ Best Function √ Product Brand * Treacy & Wiersema, The Discipline of Market Leaders, 1995www.myCNI.com.my www.OOBEY.com
  • 119. Loyalty 1: Experience Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships Product/Service Attributes Relationship Image √ √ Service Trusted √ Brand √ Relations * Treacy & Wiersema, The Discipline of Market Leaders, 1995www.myCNI.com.my www.OOBEY.com
  • 120. Strategy: Disciplines, Priorities, and KPIs Operational Product Leadership Customer Intimacy Excellence • Management by • New, state of the art • Competitive price products or services Fact • Error free, reliable • Easy to do • Fast (on demand) • Risk takers business with • Simple • Meet volatile • Have it your way • Responsive customer needs (customization) • Consistent • Market segments information for all • Fast concept-to- of one counter • Transactional • Proactive, flexible • Once and Done • Never satisfied - • Relationship and obsolete own and consultative competitors selling products • Cross selling • Learning organizationwww.myCNI.com.my www.OOBEY.com
  • 121. Each Value Discipline Requires A Different Emphasis Operational Product Leadership Customer Excellence • R&D, Legal Intimacy Functional (Licenses), emphasis • Production, • Marketing Sales, Engineering Logistics, Service Process Finance • Product Emphasis development, • Market • Order fulfillment, Concept-to- mgmt, Customer Resource Customer satisfaction Information stewardship • Linkages, insight, emphasis comm, groupware • Customers, Key • Ideas-thru- funnel, analysis, linkages • Transactions, metrics patents, etc. costs, time • Satisfaction, cust. success, Key • Costs, quality, • Tomorrow, Product concerns share, anecdotes speed Portfolio, Ideas and Risks • Today, Relation- • Trends (past), ships, Employee Transactions empowerment Employee tools/taskswww.myCNI.com.my www.OOBEY.com
  • 122. Target: Customer Types Buy From you Value Swing Former Oppositionwww.myCNI.com.my www.OOBEY.com
  • 123. Loyalty 2: Swing Loyalty = Best alternative at the current moment until I find another alternative Solution Strategy: Base Retentionwww.myCNI.com.my www.OOBEY.com
  • 124. Loyalty 2: Swing Swing Customers are “loyal” because: • Individual Relationships • Convenience (at that point in time) • Tied-up • Product Uniqueness • Promotions • No better alternative • Downlines • No known alternative • Psychologically lazywww.myCNI.com.my www.OOBEY.com
  • 125. Sample Strategies for ‘Swing’ • Increase switching • Newsletters costs • Personalized alerts • Mega packages • Survey • Community • Suggestion Box • Reward programs • Switching Techniques (Points) (e.g. Balance • Membership Transfer of credit Subscription cards) • Email communicationwww.myCNI.com.my www.OOBEY.com
  • 126. Downturn: Customer Types vs. Branding Customer Types Your Products/Services Hand brake Expandables Postponables Essentials Surviving Treats Well Off Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 127. Downturn: Customer Types vs. Branding Your Products/Services Essentials Treats Post- Expan- ponables dables •Necessary •Indulgences •Needed or •Unnecessary •Survival •Justifiable desired •Unjustifiable •Well-being •Can be put offwww.myCNI.com.my www.OOBEY.com
  • 128. Downturn: Customer Types vs. Branding Customer Types Essentials •Price Hand brake •Smaller Pack •Private Labels Surviving •Low-cost ‘Value’ products •Fighter Brands Well Off •Less Variety/Customization •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 129. Downturn: Customer Types vs. Branding Customer Types Treats Hand brake •Shrink sizes •Hold down prices Surviving •“You Deserve It” Well Off •Less Variety/Customization •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 130. Downturn: Customer Types vs. Branding Customer Types Postponables Hand brake •Low-cost Financing Surviving •Exceptional Deals •“Danger of Postponing” Well Off •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 131. Downturn: Customer Types vs. Branding Customer Types Expandables Hand brake Surviving •Offer D.I.Y. versions •Awareness Well Off •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 132. Downturn: Customer Types vs. Branding Customer Types Essentials Hand brake •Lower Price options Surviving •Bonus Packs (Stockpile) •“Dependability” Well Off •“Good enough” •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 133. Downturn: Customer Types vs. Branding Customer Types Treats Hand brake •Reward Loyalty Surviving •“Improve Morale” Well Off •Affordable vs. Luxury •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 134. Downturn: Customer Types vs. Branding Customer Types Postponables Hand brake •Simpler Models, Lower Surviving Prices •Lower TCO models Well Off •Repair services •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 135. Downturn: Customer Types vs. Branding Customer Types Expandables Hand brake Surviving •Awareness •R&D of Core Products Well Off •Immediate cash back Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 136. Downturn: Customer Types vs. Branding Customer Types Essentials Hand brake Surviving •Awareness Well Off Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 137. Downturn: Customer Types vs. Branding Customer Types Treats Hand brake Surviving •“Outstanding Quality” Well Off •“You deserve it” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 138. Downturn: Customer Types vs. Branding Customer Types Postponables Hand brake Surviving •“Save from Buying Now” Well Off •“You are missing out” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 139. Downturn: Customer Types vs. Branding Customer Types Expandables Hand brake Surviving •Discreet purchase (avoid flaunting) Well Off •“Impress Your friends” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 140. Downturn: Customer Types vs. Branding Customer Types Essentials Hand brake Surviving •Awareness Well Off •“You can’t live without it” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 141. Downturn: Customer Types vs. Branding Customer Types Treats Hand brake Surviving •A.R.O. •“Seize the moment” Well Off Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 142. Downturn: Customer Types vs. Branding Customer Types Postponables Hand brake Surviving •Monthly Payment Plans Well Off •“Quality of Life” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 143. Downturn: Customer Types vs. Branding Customer Types Expandables Hand brake Surviving •New products •“Must Have” Well Off •“For exclusive people ” Don’t Carewww.myCNI.com.my www.OOBEY.com
  • 144. How should I Service Them? Self Reliant Need Help Seek Searchers Collaborators Change •touch and feel •‘first’ to know Seek •Talk to technicians/experts Streamliners Delegators •pros and cons, trends, lots Stability of info •Offer choices •Online resource •innovations, new stuffwww.myCNI.com.my www.OOBEY.com
  • 145. How should I Service Them? Self Reliant Need Help •Minimize risk •Standardization and Seek consistency (routines) Searchers Collaborators •Wants systems to follow Change their habit Seek Streamliners Delegators Stabilitywww.myCNI.com.my www.OOBEY.com
  • 146. How should I Service Them? Self Reliant Need Help •Treats Store Personnel as Seek consultants Searchers •Pilot projects, process Collaborators Change improvements •Co-discover new Seek applications for existing Streamliners business/products Delegators Stability •Ongoing coaching and value-added serviceswww.myCNI.com.my www.OOBEY.com
  • 147. How should I Service Them? Self Reliant Need Help Seek Searchers Collaborators Change choices •narrow •Pre-package, pre-select Seek (default) Streamliners •Make it easier to renew Delegators Stability to cancel than •Focus on a specialty (niche) •Honesty, reliability, Trustwww.myCNI.com.my www.OOBEY.com
  • 148. Tactical STORE DESIGN & LAYOUTwww.myCNI.com.my www.OOBEY.com
  • 149. Apple Store • Apple tracks retail store revenues at four-minute intervals, and Visitor traffic is tracked at 15- minute intervals • 5,800 visitors a week per store • 100,000 persons come to Genius Bars per week • each Apple retail stores averages $3,000 in annual sales per square foot. (national average for malls was $341)www.myCNI.com.my www.OOBEY.com
  • 150. Apple Store • 5,800 visitors a week per store • customer experience = design around the customers life + ownership experience • Most expensive, highest-traffic locations: high- end malls, hip streets and "lifestyle" and "destination" centers. • Store layout: simple, intuitive and logical; for new and established customers • Perceived as a public place: like a great librarywww.myCNI.com.my www.OOBEY.com
  • 151. Apple Store • product zones, vs. solution zones: products are paired with software and peripherals for specific purposes. • Genius Bar: face-to-face support in neighborhood for high-technology for Free • interactive front display windows • Glass Staircase: designed to encourage people to climb the stairs • store employees not work on commission,www.myCNI.com.my www.OOBEY.com
  • 152. Tactical PROMOTIONS & INCENTIVESwww.myCNI.com.my www.OOBEY.com
  • 153. Concrete vs Abstract Mindset Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010 Abstract Broad and general Over- arching Purpose Shared Concrete Product Attributeswww.myCNI.com.my www.OOBEY.com
  • 154. Concrete vs Abstract Mindset Shared Abstract Product Attributes Execution or Usage purpose Lower level details Concrete Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010www.myCNI.com.my www.OOBEY.com
  • 155. Mindset vs Basket Size • Variety of Related but Different Product Categories, Distant Future Abstractwww.myCNI.com.my www.OOBEY.com
  • 156. Mindset vs Basket Size • Products Similar enough to Substitute one another, Immediate Use Concretewww.myCNI.com.my www.OOBEY.com
  • 157. Manipulating Mindset to Basket Size • Promotions “Overarching Purpose” : Oral Care Abstract • “Simple Purpose”: Clean Teethwww.myCNI.com.my www.OOBEY.com
  • 158. Manipulating Mindset to Basket Size • Promotions: Individual and Unique benefits Concrete • “Overall Purpose”: Quench Thirstwww.myCNI.com.my www.OOBEY.com
  • 159. Promotional Strategy Trendswww.myCNI.com.my www.OOBEY.com
  • 160. What do Shoppers LIKE about Promotions?www.myCNI.com.my www.OOBEY.com
  • 161. What do Shoppers DISLIKE about Promotions?www.myCNI.com.my www.OOBEY.com
  • 162. Changing Promotional Strategies (2007 vs 2009)www.myCNI.com.my Source: TNS Worldpanel 52 w/e July 15 2007 vs 52 w/e July 12 2009 www.OOBEY.com
  • 163. In the eyes of the shopperwww.myCNI.com.my Source: IGD Consumer Unit, 2009 www.OOBEY.com
  • 164. www.myCNI.com.my www.OOBEY.com
  • 165. www.myCNI.com.my www.OOBEY.com
  • 166. Dangers of Direct Incentives 1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. easier for competitors to poach, 5. less and less impact for same value, 6. mockery of base pricing 7. rebellion from non-incentivised products/groups, 8. end up incentivizing everyone for everything?,www.myCNI.com.my www.OOBEY.com
  • 167. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  • 168. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  • 169. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  • 170. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  • 171. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  • 172. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  • 173. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  • 174. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  • 175. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 176. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 177. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 178. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 179. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 180. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  • 181. CNI Retail: Productswww.myCNI.com.my www.OOBEY.com
  • 182. CNI Retail: Productswww.myCNI.com.my www.OOBEY.com
  • 183. End Noteswww.myCNI.com.my www.OOBEY.com
  • 184. Asian Retail Trends 1. 100 Yen Stores (Dollar Stores) 2. 24-hour Retail 1. Tourists/Business Travellers 2. Shift Workers 3. Sleepless 4. Last minute shoppers 3. Retailer Bankerwww.myCNI.com.my www.OOBEY.com
  • 185. Alignment & Consistency: Business Model USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  • 186. “ in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent" CEO, Anonymouswww.myCNI.com.my www.OOBEY.com
  • 187. What is the purpose of Sales & Marketing? Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.” Sergio Zymanwww.myCNI.com.my www.OOBEY.com
  • 188. Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/

×