SPOTTING BUYING PATTERNS   AND MAINTAINING A   CONSISTENT TRAFFIC FLOW   ALL YEAR ROUND   Case Study, Concepts, and Debata...
Intro: CNI    1. 22 years old    2. Core Business: MLM    3. Others: Contract Manufacturing, F&B Retail,       Export/Trad...
Types of Buying Pattern            Strategy    • Macro                    •Strategic    • Micro                    •Tactic...
The World Todaywww.myCNI.com.my                     www.OOBEY.com
The World Today                                13th April 2009                                •Two Domino’s employees     ...
Guess Who?
Buying Pattern: What and            Why?    1. Study of when, why, how, and where       people do or do not buy    2. Mult...
Types of Buying Pattern            Strategy    • Macro                    •Strategic    • Micro                    •Tactic...
1. Wrong Business Model    • How to fail without tryingwww.myCNI.com.my                      www.OOBEY.com
The Roadmap to Failure     Performance      Fred Wiersema and Mike Treacy                      Today’s                    ...
Denial and Defense    • “It’s not really good value our competitor is      offering, because it doesn’t include a lot of o...
The Roadmap to Failure                      Fred Wiersema and Mike Treacy                                      Downpresure...
Ad Hoc Tactics   • Selectively hold discounts to hold business that has     started to go elsewhere   • Introduce new prom...
The Roadmap to Failure                      Fred Wiersema and Mike Treacy                                                 ...
“What is the moral of            the story?”www.myCNI.com.my          www.OOBEY.com
Alignment: 4-Wheels Model                                                  Business                              P        ...
Business Model and Strategic                  Marketing                   The biggest impactwww.myCNI.com.my              ...
www.myCNI.com.my   www.OOBEY.com
www.myCNI.com.my   www.OOBEY.com
The McPlaybook*    Make it easy to eat              Make it easy to prepare    • 50% drive-thru                 • High Tur...
What is the Business            Model?     •Google     •Tata Nano         USP                                    Market   ...
What is the Business            Model?                        USP                                    Market         Profit...
Business Model: USP             Unique Selling Proposition (USP)                             =                    Targeted...
Business Model: USP   Obstacles to JBTD:   1. Insufficient WEALTH   2. Insufficient ACCESS   3. Insufficient SKILL   4. In...
What is the Business            Model?                        USP                                    Market         Profit...
Business Model: Profit            Model                      Revenue          Assets                     Cost             ...
Market Discipline           Product        "They are the most innovative"    •LV        Leadership        "Constantly rene...
Market Disciplines                                                                      Product Leadership                ...
Market Disciplines                                                                      Product Leadership                ...
Market Disciplines                                                                      Product Leadership                ...
Market Discipline: Disciplines,               Priorities, and KPIs    Operational                Product Leadership      C...
Alignment & Consistency                                                                      Product Leadership           ...
Alignment & Consistency                                 Apple powerful Product Leadership                             prod...
Alignment & Consistency:            Business Model                        USP                                    Market   ...
Alignment: 4-Wheels Model                                                  Business                              P        ...
Growth Strategy       “Double-Digit Growth”, Michael Treacy                             1.Base Retention       5.New Busin...
Growth Strategy       “Double-Digit Growth”, Michael Treacy       •Increase switching cost                                ...
How Markets determine            Growth Strategies (1)   • Growth Rate Growth Strategy             Why? Rate Fast    1. Ma...
How Markets determine            Growth Strategies (2)   • Churn Rate   Churn     Strategy            Why?   Rate   Low   ...
How Markets determine            Growth Strategies (3)    •Example: XYZ Sector    Fast Growth, 1.Market Positioning    Low...
Types of Buying Pattern            Strategy    • Macro                    •Strategic    • Micro                    •Tactic...
Business Strategy vs. Consumer
Post Recession Trends and            Implications    Industry Convergence/    Extinction    Social Networking             ...
Global Trends    Back-sourcing            Power re-balancing    Bottom-up                Mergers, Acquisitions    Innovati...
Retail Trends?    Cutting back             In-store Ads    Let consumers help       RFID technology    themselves     Smal...
Most Popular Question    “When will we return to the     last time?”                   Wrong Questionwww.myCNI.com.my     ...
Marketing Todaywww.myCNI.com.my              www.OOBEY.com
Retail Adaptation:            McDonald’s Menu    Product Variation:       – 80% Global, 20% Local       – home-style meals...
Retail Adaptation:             McDonald’s Design      $2.4 billion to:      •redo at least 400 domestic outposts,      •re...
Retail Adaptation:            McDonald’s Design    1. Corporate design leader for each       operating regions; that perso...
Grocery Store of the                Future            “Supermarket Strategies: Whats New at the Grocer”,                 B...
The Grocery Store of the FutureBy Damian JosephGoing SmallWhos Doing It: Wal-Mart, Safeway, Super Value, TescoWhats New: C...
Going EthnicWhos Doing It: Wal-Mart, PublixWhats New: In an effort to serve the growing Hispanicpopulation, companies are ...
Meal AssemblyWhos Doing It: Super Suppers, Dream DinnersWhats New: Somewhere between takeout and a grocery store,meal asse...
Smart PackagingWhos Doing It: Sira Technologies, University of Rhode Island,Manchester UniversityWhats New: Researchers ar...
Shopping Cart WashWhos Doing It: PureCart SystemsWhats New: Anything that people put their hands on becomes asurface that ...
GrocerantsWhos Doing It: Whole Foods, Wegmans, Roche Bros.Whats New: What started as a deli counter or hot food sectionhas...
Niche LabelsWhos Doing It: Safeway, Trader Joes, Target, SuperValuWhats New: Private labels are finding their own niches. ...
Smart Shopping CartsWhos Doing It: Stop & Shop, IBM, Springboard NetworksWhats New: Wireless-enabled shopping carts with m...
Mobile CouponsWhos Doing It: Kroger, Cellfire, ZaversWhats New: Companies are offering coupons on cell phones andonline. C...
Mobile ScannersWhos Doing It: Metro Group, Big in Japan, OccipitalWhats New: Customers can now use cell phones to scan pro...
Advanced In-Store TV NetworksWhos Doing It: Wal-Mart, Premier Retail Networks, Studio 2, DS-IQ, Kroger, In-Store Broadcast...
Marinade on DemandWhos Doing It: Sealed AirWhats New: Eliminating the mess, excess packaging, and hassleof marinating raw ...
Whole Canned ChickenWhos Doing It: Sweet SueWhats New: Sales of canned meats such as Hormels Spam haveincreased in the rec...
Instant Coffee WarsWhos Doing It: Starbucks, NestléWhats New: It was only a few years back that Nestlé (NESN)introduced "s...
Social Grocery ShoppingWhos Doing It: Zeer.com, Most Grocery StoresWhats New: Grocery stores are building networks of foll...
Natural Pet ProductsWhos Doing It: Purina, Rachael Ray, Eukanuba, Natures RecipeWhats New: For years, pets munched on indi...
New RecyclablesWhos Doing It: Frito-Lay, Primo Water, Biota BrandsWhats New: With the push for green products, companies a...
Conveyor Belt AdsWhos Doing It: Kroger, EnVision MarketingWhats New: Those revolving black belts that groceries ride to th...
Home Delivery 2.0Whos Doing It: AmazonWhats New: The worlds biggest online retailer is testing theviability of grocery del...
Made in Transit ProduceWhos Doing It: Wageningen University, Agata JaworskaWhats New: Instead of growing produce in a fiel...
Three-Tiered Private LabelsWhos Doing It: Kroger, Food Lion, Winn DixieWhats New: Introducing a "good," "better," and "bes...
Green GrocersWhos Doing It: Price Chopper, SuperValu, Kroger, PCC NaturalMarkets, Giant Eagle, TargetWhats New: Grocery st...
Super Discount ShopsWhos Doing It: Aldi, Local Surplus StoresWhats New: With a sinking economy, shoppers are straying from...
Types of Buying Pattern            Strategy    • Macro                    •Strategic    • Micro                    •Tactic...
Dangers of Best Practice,            Benchmarking & Market Research                                        “Abraham Wald’s...
Dangers of Best Practice,            Benchmarking & Market Research     high                                              ...
Dangers of Best Practice,            Benchmarking & Market Research                                                       ...
Dangers of Best Practice,            Benchmarking & Market Research    Selection Bias:    1. Success Traits = Failure Trai...
Dangers of Best Practice,            Benchmarking & Market Research   Also known as ‘Beware of Consultants’:   1. Selectio...
Correlation vs. Causal    1. 8 out of 10 rich people drive Mercedes in       Malaysia    2. 4 out of the top 5 supermarket...
Geo-Marketing: Where?    1. Where do my customers live, and where do they buy?    2. Where are my competitors?    3. Where...
Geo-Marketing & Consumer            Behavior    Some characteristics of consumer      behavior are closely related to the:...
The New World Order                   •history                   •race                   •ethnicity                   •rel...
The New World Order • Generous Welfare   systems • 6 of the top 8 on Legatum   Prosperity Index • some of the world’s   hi...
The New World Order • Poverty rates are almost   twice as high, labor   participation is 10 to 20   percent lower (vs. Han...
The New World Order • Rich in minerals, fresh   water, rubber, and a   variety of foodstuffs • Suffer varying degrees of  ...
The New World Order   • Newsweek, September 26, 2010      The Border Areas              • Stand-Alones:   • City-States:  ...
www.myCNI.com.my   www.OOBEY.com
Recession Generationwww.myCNI.com.my                   www.OOBEY.com
Men vs. Women: Getting       Dressed
Men vs. Women
Basket Analysiswww.myCNI.com.my              www.OOBEY.com
Basket Analysis                              None of these                              1,800 SKUs are                    ...
Basket Analysis    • Low-frequency/high-correlation SKUs    • These items       – sell rarely,       – sit on the shelf fo...
Concrete vs Abstract            Mindset                                     Kelly Goldsmith, Jing Xu, Ravi Dhar,          ...
Concrete vs Abstract            Mindset                                                    Shared       Abstract          ...
Color Psychology Cultural Variations; white      remind us of something = marriage (western) =          familiar death (Ch...
Target: Decision Chain                            Again: different type,       Influencer            different strategy   ...
Target: Customer Types   1.   Don’t know you   2.   Know you, Buy from you   3.   Know you, don’t buy from you   4.   Know...
Target: Customer Types                   Buy From you        Value          Swing          Former                         ...
Downturn: Customer Types            vs. Branding   Customer    Types                       Your Products/Services  Hand br...
Downturn: Customer Types            vs. Branding                   Your Products/Services    Essentials         Treats    ...
How should I Service Them?                   Self Reliant    Need Help        Seek                    Searchers     Collab...
www.myCNI.com.my   www.OOBEY.com
www.myCNI.com.my   www.OOBEY.com
Types of Buying Pattern            Strategy    • Macro                    •Strategic    • Micro                    •Tactic...
The real goal of Marketing and                   Branding             Understanding our role in the whole                 ...
What is the purpose of            Marketing & Branding?      Ultimate Objective of Marketing:      “Get more people, to bu...
What is the purpose of            Marketing & Branding?     “Retention and Loyalty are useless if     No Conversion is hap...
Which Company?    American Customer Satisfaction Index (ACSI)    • 64 out of100-point scale: lower than IRS (Tax)    • 2nd...
Which Company?    American Customer Satisfaction Index (ACSI)    • 64 out of100-point scale: lower than IRS (Tax)    • 2nd...
Popularly Unpopular                   Popularity                       ≠                   Affectionwww.myCNI.com.my      ...
Philosophy    Loyalty is Useless    • Virtual Consumption vs.      Real Consumptionwww.myCNI.com.my                www.OOB...
Philosophy    Loyalty is misleading    • Heavy Consumption ≠ Loyalty    • Loyalty ≠ Heavy Consumptionwww.myCNI.com.my     ...
What is the Objective?    1.Marketing = Relationship (something      like Dating)    2.Marketing ≠ Media glitz    3.Market...
Loyalty 1: Experience        Operational Excellence: Quality and selection in        key categories with unbeatable prices...
Loyalty 1: Experience          Product Leadership: Unique products and services          that push the standards          ...
Loyalty 1: Experience          Customer Intimacy: Personal service tailored to          produce results for customer and b...
Strategy: Disciplines,               Priorities, and KPIs    Operational              Product Leadership          Customer...
Each Value Discipline Requires               A Different Emphasis                 Operational            Product Leadershi...
Target: Customer Types                   Buy From you        Value          Swing          Former                         ...
Loyalty 2: Swing    Loyalty = Best alternative at the current     moment until I find another alternative          Solutio...
Loyalty 2: Swing    Swing Customers are “loyal” because:    • Individual Relationships    • Convenience (at that point in ...
Sample Strategies for            ‘Swing’    • Increase switching    •   Newsletters      costs                 •   Persona...
Downturn: Customer Types            vs. Branding   Customer    Types                       Your Products/Services  Hand br...
Downturn: Customer Types            vs. Branding                   Your Products/Services    Essentials         Treats    ...
Downturn: Customer Types            vs. Branding   Customer    Types          Essentials •Price  Hand brake               ...
Downturn: Customer Types            vs. Branding   Customer    Types                    Treats  Hand brake               •...
Downturn: Customer Types            vs. Branding   Customer    Types                   Postponables  Hand brake           ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Expandables  Hand brake   Surviving...
Downturn: Customer Types            vs. Branding   Customer    Types                   Essentials  Hand brake             ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Treats  Hand brake                 ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Postponables  Hand brake           ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Expandables  Hand brake   Surviving...
Downturn: Customer Types            vs. Branding   Customer    Types                   Essentials  Hand brake   Surviving ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Treats  Hand brake   Surviving     ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Postponables  Hand brake   Survivin...
Downturn: Customer Types            vs. Branding   Customer    Types                   Expandables  Hand brake   Surviving...
Downturn: Customer Types            vs. Branding   Customer    Types                   Essentials  Hand brake   Surviving ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Treats  Hand brake   Surviving     ...
Downturn: Customer Types            vs. Branding   Customer    Types                   Postponables  Hand brake   Survivin...
Downturn: Customer Types            vs. Branding   Customer    Types                   Expandables  Hand brake   Surviving...
How should I Service Them?                   Self Reliant       Need Help        Seek                    Searchers       C...
How should I Service Them?                   Self Reliant        Need Help                                       •Minimize...
How should I Service Them?                   Self Reliant    Need Help     •Treats Store Personnel as         Seek consult...
How should I Service Them?                   Self Reliant      Need Help        Seek                Searchers           Co...
Tactical     STORE DESIGN & LAYOUTwww.myCNI.com.my         www.OOBEY.com
Apple Store    • Apple tracks retail store revenues at four-minute      intervals, and Visitor traffic is tracked at 15-  ...
Apple Store    • 5,800 visitors a week per store    • customer experience = design around the      customers life + owners...
Apple Store    • product zones, vs. solution zones: products are      paired with software and peripherals for specific   ...
Tactical     PROMOTIONS & INCENTIVESwww.myCNI.com.my         www.OOBEY.com
Concrete vs Abstract            Mindset                                     Kelly Goldsmith, Jing Xu, Ravi Dhar,          ...
Concrete vs Abstract            Mindset                                                    Shared       Abstract          ...
Mindset vs Basket Size    •     Variety of Related but Different        Product Categories, Distant Future                ...
Mindset vs Basket Size   •     Products Similar enough to       Substitute one another, Immediate Use                     ...
Manipulating Mindset to            Basket Size                   • Promotions                     “Overarching Purpose”   ...
Manipulating Mindset to            Basket Size                   • Promotions: Individual                     and Unique b...
Promotional Strategy Trendswww.myCNI.com.my                          www.OOBEY.com
What do Shoppers LIKE            about Promotions?www.myCNI.com.my                    www.OOBEY.com
What do Shoppers DISLIKE            about Promotions?www.myCNI.com.my                       www.OOBEY.com
Changing Promotional            Strategies (2007 vs 2009)www.myCNI.com.my       Source: TNS Worldpanel 52 w/e July 15 2007...
In the eyes of the shopperwww.myCNI.com.my                   Source: IGD Consumer Unit, 2009   www.OOBEY.com
www.myCNI.com.my   www.OOBEY.com
www.myCNI.com.my   www.OOBEY.com
Dangers of Direct Incentives    1. lessen internal motivation,    2. switch to mercenary mode,    3. do something and do n...
CNI Traditional Retailwww.myCNI.com.my                     www.OOBEY.com
CNI Traditional Retailwww.myCNI.com.my                     www.OOBEY.com
CNI Traditional Retailwww.myCNI.com.my                     www.OOBEY.com
CNI – changes in Retailwww.myCNI.com.my                      www.OOBEY.com
CNI – changes in Retailwww.myCNI.com.my                      www.OOBEY.com
CNI – changes in Retailwww.myCNI.com.my                      www.OOBEY.com
CNI – changes in Retailwww.myCNI.com.my                      www.OOBEY.com
CNI – changes in Retailwww.myCNI.com.my                      www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI – “Retail Experience            Marketing”www.myCNI.com.my                       www.OOBEY.com
CNI Retail: Productswww.myCNI.com.my                   www.OOBEY.com
CNI Retail: Productswww.myCNI.com.my                   www.OOBEY.com
End Noteswww.myCNI.com.my               www.OOBEY.com
Asian Retail Trends    1. 100 Yen Stores (Dollar Stores)    2. 24-hour Retail       1.   Tourists/Business Travellers     ...
Alignment & Consistency:            Business Model                        USP                                    Market   ...
“ in the past 18 months, we have heard     that profit is more important than revenue,          quality is more important ...
What is the purpose of Sales            & Marketing?       Ultimate Objective of Marketing:       “Get more people, to buy...
Thank You.              soft copy of slides:http://totallyunrelatedrandomanddebatable.                blogspot.com/
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round
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Retail Marketing - Spotting buying patterns and maintaining a consistent trafficflow all year round

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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

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

  1. 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. 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. 3. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  4. 4. The World Todaywww.myCNI.com.my www.OOBEY.com
  5. 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. 6. Guess Who?
  7. 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. 8. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  9. 9. 1. Wrong Business Model • How to fail without tryingwww.myCNI.com.my www.OOBEY.com
  10. 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. 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. 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. 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. 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. 15. “What is the moral of the story?”www.myCNI.com.my www.OOBEY.com
  16. 16. Alignment: 4-Wheels Model Business P Model P Growth Strategy Customer P Pwww.myCNI.com.my www.OOBEY.com
  17. 17. Business Model and Strategic Marketing The biggest impactwww.myCNI.com.my www.OOBEY.com
  18. 18. www.myCNI.com.my www.OOBEY.com
  19. 19. www.myCNI.com.my www.OOBEY.com
  20. 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. 21. What is the Business Model? •Google •Tata Nano USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  22. 22. What is the Business Model? USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  23. 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. 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. 25. What is the Business Model? USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  26. 26. Business Model: Profit Model Revenue Assets Cost Cash Margin Flowwww.myCNI.com.my www.OOBEY.com
  27. 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. 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. 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. 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. 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. 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. 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. 34. Alignment & Consistency: Business Model USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  35. 35. Alignment: 4-Wheels Model Business P Model P Growth Strategy Customer P Pwww.myCNI.com.my www.OOBEY.com
  36. 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. 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. 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. 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. 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. 41. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  42. 42. Business Strategy vs. Consumer
  43. 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. 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. 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. 46. Most Popular Question “When will we return to the last time?” Wrong Questionwww.myCNI.com.my www.OOBEY.com
  47. 47. Marketing Todaywww.myCNI.com.my www.OOBEY.com
  48. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 75. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  76. 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. 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. 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. 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. 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. 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. 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. 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. 84. The New World Order •history •race •ethnicity •religion •culture Newsweek, September 26, 2010www.myCNI.com.my www.OOBEY.com
  85. 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. 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. 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. 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. 89. www.myCNI.com.my www.OOBEY.com
  90. 90. Recession Generationwww.myCNI.com.my www.OOBEY.com
  91. 91. Men vs. Women: Getting Dressed
  92. 92. Men vs. Women
  93. 93. Basket Analysiswww.myCNI.com.my www.OOBEY.com
  94. 94. Basket Analysis None of these 1,800 SKUs are top sellers!www.myCNI.com.my www.OOBEY.com
  95. 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. 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. 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. 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. 99. Target: Decision Chain Again: different type, Influencer different strategy Buyer Userwww.myCNI.com.my www.OOBEY.com
  100. 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. 101. Target: Customer Types Buy From you Value Swing Former Oppositionwww.myCNI.com.my www.OOBEY.com
  102. 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. 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. 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. 105. www.myCNI.com.my www.OOBEY.com
  106. 106. www.myCNI.com.my www.OOBEY.com
  107. 107. Types of Buying Pattern Strategy • Macro •Strategic • Micro •Tacticalwww.myCNI.com.my www.OOBEY.com
  108. 108. The real goal of Marketing and Branding Understanding our role in the whole scheme of thingswww.myCNI.com.my www.OOBEY.com
  109. 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. 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. 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. 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. 113. Popularly Unpopular Popularity ≠ Affectionwww.myCNI.com.my www.OOBEY.com
  114. 114. Philosophy Loyalty is Useless • Virtual Consumption vs. Real Consumptionwww.myCNI.com.my www.OOBEY.com
  115. 115. Philosophy Loyalty is misleading • Heavy Consumption ≠ Loyalty • Loyalty ≠ Heavy Consumptionwww.myCNI.com.my www.OOBEY.com
  116. 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. 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. 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. 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. 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. 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. 122. Target: Customer Types Buy From you Value Swing Former Oppositionwww.myCNI.com.my www.OOBEY.com
  123. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 148. Tactical STORE DESIGN & LAYOUTwww.myCNI.com.my www.OOBEY.com
  149. 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. 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. 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. 152. Tactical PROMOTIONS & INCENTIVESwww.myCNI.com.my www.OOBEY.com
  153. 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. 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. 155. Mindset vs Basket Size • Variety of Related but Different Product Categories, Distant Future Abstractwww.myCNI.com.my www.OOBEY.com
  156. 156. Mindset vs Basket Size • Products Similar enough to Substitute one another, Immediate Use Concretewww.myCNI.com.my www.OOBEY.com
  157. 157. Manipulating Mindset to Basket Size • Promotions “Overarching Purpose” : Oral Care Abstract • “Simple Purpose”: Clean Teethwww.myCNI.com.my www.OOBEY.com
  158. 158. Manipulating Mindset to Basket Size • Promotions: Individual and Unique benefits Concrete • “Overall Purpose”: Quench Thirstwww.myCNI.com.my www.OOBEY.com
  159. 159. Promotional Strategy Trendswww.myCNI.com.my www.OOBEY.com
  160. 160. What do Shoppers LIKE about Promotions?www.myCNI.com.my www.OOBEY.com
  161. 161. What do Shoppers DISLIKE about Promotions?www.myCNI.com.my www.OOBEY.com
  162. 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. 163. In the eyes of the shopperwww.myCNI.com.my Source: IGD Consumer Unit, 2009 www.OOBEY.com
  164. 164. www.myCNI.com.my www.OOBEY.com
  165. 165. www.myCNI.com.my www.OOBEY.com
  166. 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. 167. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  168. 168. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  169. 169. CNI Traditional Retailwww.myCNI.com.my www.OOBEY.com
  170. 170. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  171. 171. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  172. 172. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  173. 173. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  174. 174. CNI – changes in Retailwww.myCNI.com.my www.OOBEY.com
  175. 175. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  176. 176. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  177. 177. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  178. 178. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  179. 179. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  180. 180. CNI – “Retail Experience Marketing”www.myCNI.com.my www.OOBEY.com
  181. 181. CNI Retail: Productswww.myCNI.com.my www.OOBEY.com
  182. 182. CNI Retail: Productswww.myCNI.com.my www.OOBEY.com
  183. 183. End Noteswww.myCNI.com.my www.OOBEY.com
  184. 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. 185. Alignment & Consistency: Business Model USP Market Profit Model Disciplinewww.myCNI.com.my www.OOBEY.com
  186. 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. 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. 188. Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/

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