ASMI - Fight back Private Label

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Presentation given to the Australian Sales & Marketing Institute March 22, 2011

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ASMI - Fight back Private Label

  1. 1. grant me the serenityto accept the things I cannot change;courage to change the things I can;and wisdom to know the difference.
  2. 2. serenitymaking your “peace” withprivate label
  3. 3. •“Retail aint rocketscience...but it burns as muchfuel.” Gordon Segal, Crate & Barrel 3
  4. 4. A funny thing happened on the path to value... 4
  5. 5. 5
  6. 6. In order to be irreplaceable one must always be different. Coco Chanel
  7. 7. 7
  8. 8. 8
  9. 9. 5 Trends DrivingRetail Innovation 9
  10. 10. •1. Authenticity 10
  11. 11. When it comes toselectivecomparability, who’sreally in control? 11
  12. 12. •2. Clear Value Proposition 12
  13. 13. 13
  14. 14. •3. Category Authority 14
  15. 15. Category Authority–A Critical Element in Driving Shopper ROI 15
  16. 16. There is no such thing as Private Label ImmunityFrom: Understanding Shopper Satisfaction – Implications for Retailers and Manufacturers, 2008 16
  17. 17. The Historical Myth About Private Label• Why Retailers have private label: –Higher margins• Impact on Suppliers: –Increased competition –Reduced shelf space –Attitude: “Private label will negatively impact the equity of my brand.”
  18. 18. In Fact, Most “Private Label” Derives Its Value By Leveraging Supplier Brand Equity
  19. 19. But… Next Generation Private Label, Competes on Innovation – NOT Price ↓F ↑F ε ε Strip Replicate Adapt Innovate “No “Borrowed “Independent “Innovation Equity” Equity” Equity” Equity”Strip all branding & Competition based on price; Retailers take ownership of Retailers don’t want to competeidentification until value & brand equity comes product; product/ brand stands on price, instead compete on just left with from comparison to national on own, not dependent on uniqueness & differentiation; generic product brand copycat strategy communication of the brand ethos more important than velocity Source: MVI analysis
  20. 20. 20
  21. 21. • 4. Store as “Experience Centre” 21
  22. 22. “We want thepurchase to bethe souvenir of theexperience”Peter Williams,ex-CEO, Selfridges 22
  23. 23. 23
  24. 24. •5. DiSoMo 24
  25. 25. 25
  26. 26. Do you really wantto put the voice of customer @ the centre of your business? 26
  27. 27. 27
  28. 28. 5 Trends Driving Retail Innovation• Authenticity• Clear Value Proposition• Category Authority• Store as “Experience Centre”• DiSoMo 28
  29. 29. Serenity Now• Who’s responsible your brand experience?• Private label can replace any product at any price point. You need to bring different (measurable) value to retail to endure Support retailer differentiation that drives growth• Expect dissonance in retailer value equations, good ones will have functional and emotional drivers• Don’t get hung up on the “last 3 meters” – the path to purchase is growing longer…and that’s a good thing for you 29
  30. 30. You do not merely want to be considered the best of the best. You want to be considered the only one that does what you do. Jerry Garcia 30
  31. 31. courage
  32. 32. “we can’t go on like this”
  33. 33. the great imbalance 33
  34. 34. in grocery alone 80% of ourbusiness is with 40% of the outlets then there are another 96,000 outlets on top of that 34
  35. 35. truth is ........ we dont leverage the difference in the80% we spend most of our time on 35
  36. 36. channel awareness & availabilitydifferentiating channels based on profit & ROI 36
  37. 37. winning early = getting distribution right 37
  38. 38. insisting on insight• distribution intelligence based on demand not supply• NBMs getting well versed at leading the insight• Making sure we are asking the right questions 38
  39. 39. the effort effect 39
  40. 40. the measurable talent 40
  41. 41. understanding the dessert before dinner concept 41
  42. 42. creating solutions 42
  43. 43. be honest - has the business remembered how to innovate 43
  44. 44. the “space age” & the paradox of choice 44
  45. 45. making brands mean something & then protecting them 45
  46. 46. protecting brands through purpose • leverage occasion to save future innovations from the grocery RIP 46
  47. 47. involving the trade 47
  48. 48. making “some” historyand remember how we got here!! 48
  49. 49. grant me the serenityto accept the things I cannot change;courage to change the things I can;and wisdom to know the difference.
  50. 50. So, Thank You!Phil BonannoHead of ShopperIdeaworksPhil.bonanno@ideaworks.com.au03.9287.1288twitter: @phil_bonannoScott McLaughlinDirectorNext Reality Groupscott@nextreality.com.au03.9602.5099twitter: @scottanidea 50

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