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

1. grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

2. serenity
making your “peace” with
private label

3. •“Retail aint rocket
science...but it burns as much
fuel.”
Gordon Segal, Crate & Barrel
3

4. A funny thing happened on the path to value...
4

5. 5

6. In order to be irreplaceable one must
always be different.
Coco Chanel

7. 7

8. 8

9. 5 Trends Driving
Retail Innovation
9

10. •1. Authenticity
10

11. When it comes to
selective
comparability, who’s
really in control?
11

12. •2. Clear Value Proposition
12

13. 13

14. •3. Category Authority
14

15. Category Authority–
A Critical Element in Driving Shopper ROI
15

16. There is no such thing as Private Label Immunity
From: Understanding Shopper Satisfaction – Implications for Retailers and Manufacturers, 2008
16

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. In Fact, Most “Private Label” Derives Its Value By
Leveraging Supplier Brand Equity

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 compete
identification 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

21. • 4. Store as “Experience Centre”
21

22. “We want the
purchase to be
the souvenir of the
experience”
Peter Williams,
ex-CEO, Selfridges
22

23. 23

24. •5. DiSoMo
24

25. 25

26. Do you really want
to put the voice of
customer @ the
centre of your
business?
26

27. 27

28. 5 Trends Driving Retail Innovation
• Authenticity
• Clear Value Proposition
• Category Authority
• Store as “Experience Centre”
• DiSoMo
28

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. 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. courage

32. “we can’t go on like this”

33. the great imbalance
33

34. in grocery alone 80% of our
business is with 40% of the outlets
then there are
another 96,000
outlets on top
of that
34

35. truth is ........ we don't leverage the difference in the
80% we spend most of our time on
35

36. channel awareness & availability
differentiating channels based on profit & ROI
36

37. winning early = getting distribution right
37

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. the effort effect
39

40. the measurable talent
40

41. understanding the dessert before dinner concept
41

42. creating solutions
42

43. be honest - has the business remembered how to innovate
43

44. the “space age” & the paradox of choice
44

45. making brands mean
something & then
protecting them
45

46. protecting brands through purpose
• leverage occasion
to save future
innovations from
the grocery RIP
46

47. involving the trade
47

48. making “some” history
and remember how we got here!!
48

49. grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

50. So, Thank You!
Phil Bonanno
Head of Shopper
Ideaworks
Phil.bonanno@ideaworks.com.au
03.9287.1288
twitter: @phil_bonanno
Scott McLaughlin
Director
Next Reality Group
scott@nextreality.com.au
03.9602.5099
twitter: @scottanidea
50