Marketing Forum 2010 Executive Summary

MARKETING
FORUM 2010
ExEcutivE Summary
2 – 4 November 2010 • Lisbon, Portugal

Winning
Tomorrow’s
Consumer.
What Manufacturers and Retailers Need to Know.

www.tcgfmarketingforum.com

WHAT IS THE CONSUMER GOODS FORUM?
The Consumer Goods Forum (CGF) is a global, parity-based industry network, driven by its members. It brings together the CEOs and senior
management of over 650 retailers, manufacturers, service providers and other stakeholders across 70 countries and reflects the diversity of
the industry in geography, size, product category and format. Forum member companies have combined sales of EUR 2.1 trillion.
The Forum was created in June 2009 by the merger of CIES - The Food Business Forum, the Global Commerce Initiative (GCI) and the Global CEO
Forum. The Consumer Goods Forum is governed by its Board of Directors, which includes 50 manufacturer and retailer CEOs and Chairmen.
The Forum provides a unique global platform for knowledge exchange and initiatives around five strategic priorities – Emerging Trends,
Sustainability, Safety & Health, Operational Excellence and Knowledge Sharing & People Development – which are central to the advancement
of today’s consumer goods industry.
The Forum’s vision is: “Better lives through better business”. To fulfil this, its members have given the Forum a mandate to develop common
positions on key strategic and operational issues affecting the consumer goods business, with a strong focus on non-competitive process
improvement. The Forum’s success is driven by the active participation of the key players in the sector, who together develop and lead the
implementation of best practices along the value chain.
With its headquarters in Paris and its regional offices in Washington, D.C., and Tokyo, the CGF serves its members throughout the world.
For more information, please visit www.theconsumergoodsforum.com

WHAT IS THE MARKETING FORUM?
Each year, senior executives in Marketing and Sales gather to discuss the top-of-mind issues in retail marketing. It is the leading-edge event in
marketing that Marketing and Sales Directors cannot miss.
The Marketing Forum offers delegates top-quality speakers, debates, networking and real case studies. The Forum aims to provide practical
take-aways and a large diversity of information and insights unique to this event. The Marketing Forum is the only global forum of its kind for
retail marketing and sales executives.

2 Marketing Forum 2010 - ExEcutivE Summary

The Marketing Committee
► MARKUS GISIGER, Head of Marketing Food, MIGROS, Switzerland
► ANTHONY HUCKER, Vice President of Strategy and
Business Development, WAL-MART STORES, USA
► MATEJA JESENEK, Member of the Board for
Marketing, Format Development and Buying/Chief
Marketing Officer, MERCATOR GROUP, Slovenia
► SHARON JESKE, Director, Operational
Excellence, THE CONSUMER GOODS FORUM
► ROBERT KITCHING, Vice President
Consumer Marketing Insights Western
Europe, UNILEVER, The Netherlands
► MEG LEVENE, Senior Director Global
Shopper - Consumer Health Care,
JOHNSON & JOHNSON, USA
► FIONA MA, Executive Director - Sales
& Marketing, China, SWIRE BEVERAGES,
People’s Republic of China
► KRISTEN NOSTRAND, Marketing
Director, PROCTER & GAMBLE, USA
► SIMON POTTS, Director - Business
Development Alliance Boots Health & Beauty
Division, United Kingdom
► NICK POWELL, Managing Director, ENERGIZER,
United Kingdom
► PATRICK ROUVILLOIS, Chief Marketing Officer,
CARREFOUR GROUP, France
► JEAN RUBENS, Executive Managing Director, CASINO
SUPERMARCHES, France
► VANESSA SILVA, Marketing Director, JERONIMO MARTINS,
Portugal
► ARNAUD DE BELLOY, Vice President Global Customer & Sales,
NESTLE GROUP, Switzerland (Committee Co-Chairman) ► SATORU TANAKA, President, Premium Skin Care, Global Beauty
Care Business, KAO, Japan
► STEPHEN SMITH, Executive Vice President, Brand Strategy,
Marketing and Merchandising, Food Lion, USA (Committee ► ANDRE TORDJMAN, Founder and Managing Director, LITTLE
Co-Chairman) EXTRA (AUCHAN GROUP), France
► JONATHAN ACKERMAN, Customer Director, PICK n PAY ► JEAN-JACQUES VANDENHEEDE, Director Retailer Insights, THE
RETAILERS, South Africa NIELSEN COMPANY, Belgium
► ADAM BALON, Founder & International Director, INNOCENT ► PATRICK WAUTERS, Vice President North and Eastern Europe,
DRINKS, United Kingdom CHIQUITA EUROPE, Belgium
► CAROLYN BRADLEY, UK Marketing Director, Tesco Stores Ltd, ► PAOLO ZAZZI, Europe and Export Customer Marketing
United Kingdom Responsible, BARILLA, Italy
► DIETER EBBERS, Director Market Research and Media West
Europe, HENKEL KGaA, Germany
► ANGELA FRANCOLINI, Vice President, International Marketing &
Innovation, MC CORMICK & CO, INC., USA

Marketing Forum 2010 - ExEcutivE Summary 3

Tuesday 2 November nd
Store Tour Programme
kindly sponsored by


Participants were warmly welcomed by


Welcome Cocktail
kindly sponsored by


Wednesday 3 November rd
Welcome by Marketing Committee
Co-Chairman
Stephen Smith, Executive vice President, Brand Strategy,
marketing and merchandising , Food Lion, uSa

i
n welcoming 170 participants from 30 countries to Lisbon,
Stephen Smith said the marketing conference was “a
unique gathering, in which to share ideas, connect and gain
inspiration.” However, he stressed that the content was based on
real examples and case studies: “We try to stay away from the
theoretical.”

What’s New about Your Association?
Jean-Marc Saubade, managing Director, the consumer Goods Forum

T he Consumer
Forum is not “one more
Goods

association” but rather, the
get things done”. Driven by its vision of “Better Lives Through Better
Business,” the Forum has a mandate to make collaborative work
accessible to all companies, for the good of the industry. “We work
vehicle through which the on things that can only happen when we unite,” Saubade underlined.
industry can finally speak in These include, among others, food safety, sustainable packaging
one voice. Launched in June and carbon measurement, stripping cost from the supply chain and
2009, in New York, with the information sharing and are arranged under five strategic pillars:
fusion of CIES with The Global
1. Emerging Trends
Commerce Initiative and the
Global CEO Forum, the body aims 2. Sustainability
to drive unified collaborative action 3. Safety & Health
on non-competitive issues. “The CEOs of
your companies were sitting on too many boards and going to too 4. Operational Excellence (New Ways of Working Together)
many meetings, in which they were talking about the same things,” 5. Knowledge Sharing & People Development
Saubade explained. “At the same time, the industry is not talking in
The Forum is not a lobby but nonetheless aligns itself strategically with
one voice. We are not in the driving seat.”
lobbying groups in the regions, such as GMA, FMI, ERRT, EuroCommerce
The Consumer Goods Forum members have combined sales of and so on. “We still need to influence legislation in various countries,”
EUR 2.1 trillion: an organisation with enormous collective influence. Saubade asserted. The connection in the regions is made via local
The board of directors brings together the CEOs and chairmen of Efficient Consumer Response (ECR) groups. The Forum also aligns
25 retailers and 25 manufacturers. The board positions cannot be with GS1: global projects need global standards. The idea is to avoid
delegated, so the decisions are made by the people who can “really duplication and pursue a single industry agenda.


Setting the Scene for the Forum
conference moderator Frances Edmonds, author & Presenter, united Kingdom

“ A good name is more
to be valued than great
riches,” Frances Edmonds
be able to rebuild that brand? There is, in all this, a vital need for true
transparency. Consumers are demanding it; “If you’re not naturally
honest, be honest through self-interest.” Meanwhile, there’s a new
contends. A brand is that business model:
ineffable amalgam of the
tangible and the intangible, which
creates influence and value. But that
hard work can be ruined in the twinkling of
an eye and “it can all come crumbling down”. BP was one of the most
admired companies in the world. Now it is one of the most reviled. What
is the cost to its long-term reputation? Toyota had built a reputation
for safety. That reputation is now severely damaged. Will the company

How Have Consumers Changed and What Does it
Mean to Me?
Rising from the Storm
Jean-Jacques Vandenheede, Director retailer insights Europe, the Nielsen company,
Belgium

C onsumer confidence
drives demand. While it
has been generally reported
The growth in the hard discount formats has gone hand in hand with
increased density. Similarly, the growth in private label is a “structural
phenomenon” that has followed the density of organised retail and has
to be low, it has in fact not been driven by consumers. But the major consumers of private
“followed [economic] recovery, label are not who we might think. By Nielsen’s measurements, the
slowly creeping up again” and “super heavy” private brands buyers are more affluent, have a larger
consumption volumes are returning. household, shop more often and spend more per trip. The inverse is
This said, there is still doubt in the consumer mindset. “The consumer true of “super low” buyers. “Leading brands,” however, “do not lose
is hesitating.” In terms of turnover, large and small supermarkets share to private label. “Retail brands essentially gain at the expense
have been “flat lining”, also, although hypermarkets have suffered in of secondary and small brands,” Vandenheede said.
recent times, losing 7% on average over the last few years. “There
The other myth that Vandenheede was keen to explode is that the
is a need to reinvigorate the hypermarket,” Vandenheede said. Both
majority of consumers want to shop online. Not for groceries: only 19%
market share for all three format types and the number of shopping
bought groceries online over the last three months, his data show.
trips were also flat between 2007 and 2010.
“The consumer is an animal of Darwin,” Vandenheede asserted, in that
it slowly adapts, rather than opting for rapid or radical change. “Auto-
pilot shopping” is the reality of our business. Faced with uncertain taKEaWayS
economic times, most shoppers, according to Nielsen survey data,
shopped at the same stores they always did. This may be in part,
Vandenheede posited, because all the grocers had essentially the same 1. Battle for value not for price.
offer. Only a minority (not more than 16%) swap stores to benefit from 2. all markets fluctuate, but the long-term trends are
specific promotions. But over-promotion leads to the commoditizing stable.
of the low-price offer. The result of this is that the shopper may feel
punished when an item is no longer on promotion, rather than feeling 3. Weathering market turbulence is a better bet than
rewarded by the promotion itself. trying to avoid it.
4. consumers change very slowly.


The New Normal
Peter Hinssen, managing Partner, across technology, Belgium

“ As a technologist, I’m
basically a nerd,” Peter
Hinssen told the conference.
When it comes to information, “people will ingest zero length and infinite
depth”. But despite these advances, Hinssen has a number of bones
to pick with business and industry, which is not advancing in step. “The
“I’ve been a nerd since birth world has gone network. So why are businesses built in silos?” Why
and I come from a long line of does Google have a banking license in 27 countries? Because “people
nerds.” But nerds are inheriting don’t need banks, they need banking”. Lastly, why aren’t businesses
the Earth as technology, once a listening to their nerds? Steve Sasson, a Kodak employee, invented the
novelty special interest activity for the digital camera in 1975. Kodak was not pleased with this category killer
nerd alone, has now become the norm. Technology used to be work- and kept Sasson in the basement while it sold silver-based film. “You
related but is shifting to leisure: “Work is the brief period in my day have a lot of Steve Sassons. Your job is to release them.”
where have to use old technology,” Hinssen quipped, noting that the
original driver of internet traffic was professional file sharing (work).
This shifted to the web (information) at the close of the 90s. Now it is
video (entertainment). Hinssen cited a survey in which respondents NEW ruLES
were asked to list their top necessities in life: 4% listed their iPod while
food did not make the list. However, we are only half-way along the
evolutionary line. “If the last 20 years were about becoming digital, 1. there is zero tolerance for digital failure: Gmail going
the next 20 years will be about being clever with digital.” Luckily, the down now makes cNN news.
first so-called digital natives are now entering the workforce. 2. technology doesn’t have to be perfect, that is to say
Some things to consider, then: content is no longer king. Contact is of optimal performance, just “good enough”. mP3s and
king. Leverage the power of crowds and take a bottom-up approach. Notebooks are examples of the success of “good enough”
technology.
Consumers designing your logo, for example, is not losing control but
crucial contact. That said, the mass market is dead. Custom and niche 3. Now you know: total accountability needed.
is one key aspect of the new normal. Leverage the long tail: make a
4. abandon absolute control.
little on many sales, rather than a lot on few. Don’t weigh people down
with too much information, but make your communications really count.

The Consumer is Changing. So what?
Belinda Youngs, chief marketing Officer, Sobeys inc., canada

T echnology is changing.
The internet is no longer
about web pages: it’s a
get the most out of this, build a community, create an open, transparent
dialogue and promote collaboration and sharing.
What does this mean for Sobeys? The supermarket is a chore, where
platform for collaboration.
the traditional market is an experience. To recapture that, stores need
The first generation to have
to inject “the magic of theatre” and deliver experiential stores. The
grown up in a digital world has a
retailer is attempting to “trend away from traditional marketing” and
different value set and is now joining
towards “instructional selling”, with more story-telling and education,
the workforce and the consumer market. Society
such as recipe tips, or information about how the food is produced.
is changing. Brands are no longer believable to consumers. But “Judy in
It also means moving to customer-led planning, by gathering shopper
Detroit” (as a proxy for peer and network review and recommendation)
insight.
is believable. “Social media got Barack Obama elected,” Youngs
claims. McCain raised USD 27 million in campaign funds using the “Canada is a long way from recovery,” Youngs admits. “We’ve trained
traditional routes. Obama raised USD 55m online. More profoundly, customers to buy on deal and we’re finding it hard to come back
society is moving from the hierarchy to the network. Hierarchies work to EDLP.” Despite a very cautious consumer, some forces remain
on command and control. Networks function via collaboration. Youngs strong: two thirds of the population is obese and ethnic migration is
says we have moved on from the ages of agriculture, industry, and even the principal source of population increase. “Specialist ethnic formats
the information age. The 21st century is about experience. So what are changing the market complexion,” Youngs said. Sobeys has yet to
do consumers want in the age of experience? Youngs says they want define its post-recession value equation, is “still figuring out” how to
speed, authenticity, transparency, community, customization, grass- create experiential food shopping and the optimal offer for the “ethnic
roots innovation, networked workplaces and social responsibility. To consumer”. But it’s working on it.


25 Years Innovating Customer Relationships
Luis Moutinho, chief Executive Officer, Sonae mc, Portugal

Since 1985 Sonae’s
success has been based
on its obsession to keep in
be offered relevant, targeted propositions.” Sonae has addressed this
with its formats Continente, Modelo and Modelo Bonjour, along with its
specialized non-food retail formats, like Worten (electronics), Modalfa
step with changes in the habits (apparel) , Sport Zone (sporting goods) , Zippy (kids wear), Book It
and routines of Portuguese (book store) and Área Saúde (pharmacy or health & beauty). Some
people, to democratize 87% of Portuguese families also have the company’s loyalty card.
consumption, understand its
However, none of this would be possible without the company’s strong
customers and deliver more value.
sense of belonging to the communities where its stores are present.
Delivering both convenience for those who need to be quick and
Sonae has launched 20 projects concerning environmental and social
leisure spaces to encourage people to linger have been key. Once
sustainability, has created 32 parks totaling 16,000 square metres of
price and variety are assured, the consumer turns to aesthetics. It’s
green space across the country. Sonae’s Producer’s Club partners with
about providing a better store experience, which leads to greater
250 local suppliers and offers technical help. Finally, entertainment
engagement. More than anything, consumers want choice and control
events such as the Mega Picnic Modelo, in which 110,000 customers
in the way they shop: “Customers want to be treated as unique and to
came to listen to popular singer Tony Carreira.

The Consumer is Changing. So What Does it Mean to the Retailer?
Mark Price, managing Director, Waitrose, united Kingdom & member of the Board of
Directors, the consumer Goods Forum

A s a premium retailer with
a brand based around
“all-round quality food” and a
promotional activity, including offering free delivery online. The third
step, which “surprised a lot of people,” was to introduce a new entry-
level own label range: Essentials. “Not cheap, or economy – it’s about
price perception in line with being letting the consumer understand where they trade into Waitrose.”
the Queen’s official supermarket Next, Waitrose reinforced its top tier, the Prince of Wales’ gourmet
of choice, Waitrose was experiencing organic brand Duchy Originals. Waitrose thus offered consumers both
slow organic growth. With a low operating margin, it was hard for the chance to trade in from other supermarkets with Essentials and
the retailer to expand beyond two stores a year: “We were basically trade down from restaurants with Duchy. Waitrose also introduced a
outbid by everyone else,” Mark Price said, adding that Waitrose only Tesco price match campaign on 1000 branded products. Consumers
managed to enter a new market when the town itself encouraged the perceived Waitrose as being 29-33% more expensive than Tesco, when
entry because it wanted the Waitrose brand. Nonetheless, in the ten in fact, it is only 2-3% higher-priced. The final piece was to increase
years from 2000, Waitrose has moved from a GPB 1.9 billion business its communication by advertising its points of difference. “We want to
to a GBP 4.5 billion business, while operating profit and margin have own the weekend … and teach the nation how to cook.” Two celebrity
increased from GBP64 million and 3% respectively in 2000 to GBP267 chefs were the faces of this campaign: Delia Smith emphasized the
million and 6%. “Tesco has 7%, Asda and Sainsbury’s have 3%,” everyday, while Heston Blumenthal reinforced the aspirational. Their
Price asserted. recipe-based weekly adverts drove volume and brought in half a million
extra customers (with the lion’s share switching from Sainsbury). The
As the financial crisis unfolded, the key to improving the numbers
operation brought a volume uplift of 7%, ahead of target. Costs were
was moving from a margin business to a volume business: driving
offset by GBP 50-60 million in operational efficiencies.
increased sales by offering lower prices. The principal risk here was
brand damage. Waitrose customers buy into the premium positioning, Price sees the various measures as giving more people access to
confident that they are buying high quality and the health and lifestyle the brand. “We were prepared to take a margin hit to get volume.
aspirations that come with that. So it was critical to make the move The team has been courageous; they dared to take a risk because
without alienating existing customers. To hit its profitability target, they felt they could.” Responding to a question about culture change
Waitrose needed 5% volume uplift. It attacked its price perception by from Jean-Marc Saubade, Price conceded that he had needed to make
reducing some outlying prices: “We reckoned that our customers didn’t “some changes to the board, as not everyone was prepared to change
know the price of bin liners, so we had charged 60% more for ours. so quickly”. But he added: “If we hadn’t done it, we would have been
We brought these kind of prices down.” Next, the retailer increased in deep trouble.”


Adapt or Die
Miles Hanson, chief Executive Officer and Founder, the collaboration company,
united Kingdom

W e are at the end of the
zero sum game. It is
no longer appropriate for
are two types of people, Hanson claims: innovators and idea builders.
Innovators are vital, but those who can take new ideas and develop
them further are also indispensable in the collaborative process.
business to be dominated by Hanson, whose company consults on collaboration within companies,
“I win, you lose” mentality. In the has set out a number of principles for achieving this:
age of networks, what is needed
1. Set expectations.
is a more collaborative approach.
This is not simply about parallel working or 2. Be clear on your goal.
shared information; it is about achieving more than you could alone. 3. See the benefits of a diverse perspective.
True collaboration brings better ideas, faster solutions and a genuine
commitment to make things happen. “This is the biggest deal in the 4. Don’t become defensive.
way we work since the internet.” However, changing mindsets can 5. Look with a beginner’s mind, not an expert’s mind.
take time. You have to beware of defensiveness and “watch out for
6. Explore as many options as possible.
the experienced idea killers” who temper innovation with comments
such as “It won’t work because …” Rather, you need to look with a 7. Build on ideas.
beginner’s mind, because the beginner still has endless possibilities.
8. Listen.
“Too many adults have limiting beliefs about creativity,” Hanson says.
“Adults fear the judgment of others.” This can lead groups to quickly 9. Don’t get attached to an outcome.
concurring on the first idea that comes to mind and pursue it at all 10. Make the first move.
cost. But it is imperative to explore as many options as possible. There

Two Different Marketing Approaches to Win
Tomorrow’s Consumer: High-Tech vs Simplicity
Global Marketing e-tailing Challenges and Solutions for Marketers
Niall McKinney, managing Director of utalkmarketing, former chief marketing Officer,
Europe, Lastminute.com, united Kingdom

O nline shopping: access
used to be slow, there was
limited choice and we were all
1. Data is the new Intel Inside: without it you can’t start a relevant
conversation with your customer.
2. One-to-one communication is vital: up sell, tempt them back. Ryanair,
a bit nervous about putting our the “king of cross-sell” derives only a third of its purchase value from ticket
credit card details into a website. price.
But now that these original barriers
3. Long tail: this is not about best-sellers. Hold no physical inventory and
to adoption on the consumer side have
expand the range of what you sell: “you will profit from the 80% of stuff that
been removed, e-commerce is coming of age.
doesn’t sell so much”.
Or, at least, it is outside of FMCG, McKinney says. Half the world’s population
now has mobile internet. The benefits are visible: Ocado derived 5% of all 4. Interface counts
sales from mobile devices within three months of adoption. Pizza Hut’s home 5. Participation: there are 40 million consumer reviews on Tripadvisor.
delivery app made USD 1 million in its first month. Is grocery missing out? “When consumers are making a purchasing decision, they want to hear from
Here are some tips on growing e-commerce in the 21st century: other consumers.”
6. Optimise relentlessly: Amazon does this. “Recognise the power of
numbers and people who can work with numbers.”


The Magic of the Dabbawala Unfolded
Manish Tripathi, chairman, Dabbawala Foundation, india

T he key to the stunning
efficiency and negligent
error rate (one in six million)
without language, the delivery address and rail station, along with
the return address. The tins are then collected punctually by a local
dabbawala. The system has no time or sympathy for late preparation:
of Mumbai’s unique dabbawala “get rid of bad customers,” Tripathi advises. If the women are late,
service, according to Tripathi, is the dabbawala won’t wait for them. If they are consistently late, they
the deeply-instilled belief of the will be ejected from the service. The collecting dabbawala takes his
largely illiterate force of deliverymen haul of dabbas to a local sorting office, where they are grouped
that, by carrying home-cooked lunches to according to delivery area and packed onto trains. At each station,
Mumbai’s affluent businessmen, they are serving God. Tripathi believes the relevant batch is handed over to a local dabbawala, who will make
that being accountable to a divine authority is both more important the delivery, often on foot or by bicycle. Every dabbawala is paid
and ultimately more effective than an MBA, for which qualification he the same salary, regardless of his function, which Tripathi believes
holds little respect. fosters cohesive teamwork. The whole service – which sees 5,000
dabbawalas transport 200,000 lunchboxes every day, is carried out,
The service is driven by demand from Mumbai’s office workers, who
rain or shine, using virtually no modern technology. Finally, Tripathi
prefer a home-cooked meal as both cheaper and safer than eating out
says the service does not advertise and does not need to, as it serves
at lunchtime. Its delivery chain is ruthlessly efficient. Meals are cooked
a genuine consumer need.
at home during the morning “by wives or sisters” and packed into a tin
(or dabba). Each dabba is marked with a colour code, which indicates,

Question & Answers


Networking Dinner
Hacienda Quinta do Torneiro
kindly sponsored by

14 Marketing Forum 2010 -- ExEcutivE Summary
Marketing Forum 2010 ExEcutivE Summary

Thursday 4 November th

Portuguese Success –
at Home and Beyond Borders
Jerónimo Martins’ Runaway Success
Eduardo Cid Correia, chief Operating Officer, Jeronimo martins, Portugal

C an retailers export a
global model as a pathway
to growth? The non-food
Meanwhile, in Portugal, the company faced competition from
discounters. It had dismissed the threat as a different segment, but
now realized it had to take action, as like-for-likes declined. It worked
retailers can, Eduardo Correia on dropping prices, rationalizing assortment, developing private label,
says. Zara, Ikea, Swatch, for investing in fresh as a USP. “We became more efficient and innovative.”
example, operate the same way It moved into prepared foods, something the discounters could not
everywhere. In food, however, this is not offer. Between 2008 and 2009 Jeronimo Martins increased sales 7%
possible. Respect for regional differences is critical. “We have to think by value, compared to 5% from Sonae and Auchan. Meanwhile, Lidl,
local,” he sums up. What Jeronimo Martins can export is its passion Carrefour and Metro moved into negative growth.
for food. When it acquired Biedronka in Poland, the retailer, which
operates the Pingo Doce banner in Portugal, found an entirely different
set of cultural parameters: small houses with little storage, significant
budgetary restrictions, a lack of confidence in organized retail, a taKEaWayS
more pragmatic and price-sensitive consumer. To learn, Jeronimo
Martins surrounded itself with local people and carried out intensive
benchmarking of the market, analyzing consumer tastes, ambitions 1. We sell real food for real people.
and convictions. A key step was developing “true partnerships” with 2. We develop markets with customised business
Polish suppliers: 95% of Biedronka’s assortment comes from Polish models.
suppliers. To eliminate the inflexibility typical of multinationals, “we
had to create a new model that was not in our DNA,” Correia says. 3. consumers tell us what to do: we do that and
Today “the leadership of Biedronka is unquestionable”. more.

Innovation, Creativity and Marketing Ingenuity
Paulo Pereira da Silva, cEO, renova, Portugal

“ Did you ever have any
pleasure in toilet paper?”
Asks Paulo Pereira da Silva.
dead spaces, which can be turned into “brand spaces”. Despite
the success, achieved entirely by a radically different approach to
marketing, da Silva doubts the idea would have seen the light of day
He thought not. That’s why he if someone other than the CEO had been the source of it. “Beware of
decided to go to market with self-censorship,” he cautions.
a daydream he had in Las Vegas
“It’s difficult to have a new idea,” he continues. New ideas come from
and start producing premium priced jet
a child-like, open state of mind: from daydreams, as his had done. We
black toilet paper. This worked surprisingly well and other primary
don’t, however, tend to work in places that encourage this or are at
colours followed. Da Silva believes Renova is the first company to turn
all conducive to it. That’s why at Renova, the innovation team is at the
this unglamorous, functional product into a fashion statement. Now
core of the company. “I wanted to make happen a love brand with sexy
it sells in up market retail areas and design stores, with a striking
products even if it’s only about toilet paper,” da Silva summed up. He
and colourful approach to merchandising and display. Da Silva has
suggests we all do likewise.
targeted “now places” such as airports, malls and Ikea, as well as


Winning Tomorrow’s Consumer
Multi-channel Retailing and the Pursuit of the Ever
Changing Consumer
Ian Crook, marketing Director, tesco.com, united Kingdom

I n 1994, Tesco already had a multi-channel offer. It was just
that, since the extra channels were telephone and notepad
or fax, these channels offered limited help to consumers and
the role of stores. They can
also act as showrooms for
products only available online.
were inefficient to run. “The internet came to our rescue,” But for it all to work, not only
Ian Crook said. The following year, Tesco went online: a rather do the operations need to be
functional interface “with a spreadsheet behind it”. In 2010, seamless, but the marketing
Tesco believes it is the only profitable online grocery retailer in must be too. The word “multi-
the world. Having mastered online, Tesco finds its customers channel” is already defunct, Crook says:
are demanding ever more options, such as mobile apps and “Consumers don’t shop by channel. They shop like a pinball
drive-in services. Tesco Click & Collect addresses this need. With machine. There may be ten touchpoints, but the consumer sees
a seamless multi-channel approach, you can afford to rethink them all as part of one Tesco experience.

Paloma Perez, marketing Director Hypermarket, carrefour Spain

P aloma Perez said multi-channel retailing was the only
sensible response to a consumer who is equipped to “find
out what I want, buy it how I want and get it where and when
next 15 days. The key is to
provide an extended store
experience, to manage and
I want”. Only 5% of visitor’s to the retailer’s website make an deliver on the before, the
e-purchase. But the rest are still making purchasing decisions during and the after.
by using the site and 90% of web visitors visit a store in the

Anthony Hucker, vice President of Strategy and Business Development,
Wal-mart Stores inc., uSa

I f Anthony Hucker admits that Walmart in the US is “somewhat
behind the UK when it comes to home delivery,” he doesn’t
discount its importance. The new Site-to-Store concept
influencers to gain insight into
consumers. Walmart has
been experimenting with new
functions exactly like Tesco’s Click & Collect. The brand can formats: “We were really
also be leveraged outside the controlled brand environment: good at big stores in little
Walmart has mobilized 19 influential bloggers – dubbed towns,” Hucker said. “But not
the Walmart Moms – to speak to and for other consumers, so much at small stores in big
through the “millions of other moms that compose their towns.”
combined readership”. Walmart can use their position as

I n the following panel discussion, Ian Crook said if companies
do it the right way, they can boost loyalty with multi-channel.
However, if they mess up one channel, they can damage loyalty
danger of rewarding customers for being disloyal, by offering
advantages for them to come back. Hucker said that retailers
were not the only ones who needed to look at multi-channel.
at the rest. It has to be seamless. Hucker agreed that it was Procter & Gamble was testing a pop-up store in Manhattan,
about execution: “If you do one badly, 99 will suffer.” Paloma he said. Indeed, collaboration is needed between retailer and
Perez said customers would be ever less loyal in the future, manufacturers to make multi-channel effective. Asked whether
but Carrefour was winning new customers through multi- there was the danger of friction here, Hucker replied: “yes, but
channel. Crook agreed, saying Tesco’s Click and Collect service friction creates warmth”.
was bringing in new customers. Crook added that there was a


Working Together to Serve the Consumer
The Make-up Factor – Learnings from a Market that Grows
during Economic Crisis
Guy Farmer, country manager, L’Oréal, Portugal

M ake-up is a reliable source
of profitable growth in
times of economic difficulty,
However, with the fragmentation of TV audiences, the store is now
the key driver of awareness. Manufacturers must work closely with
retailers to get the most out of this trend. L’Oréal worked with dm
Guy Farmer argued. The Drogerie Markt in Germany in a bid to make the chain “the destination
global colour cosmetics for make-up purchases and total cosmetics”. The companies saw that
market turned over EUR dm customers were not brand loyal, so the number of brands was
31 billion in 2009; it has reduced, on the assumption that consumers could be persuaded to
been a “dynamic motor” switch. The physical space saved was used to increase merchandising
with continuous growth up of of top sellers and showcase innovations. The stands were redeveloped
to 5% a year since 2005. In to be more seductive and sticky, providing more education and
short, when everything else was communication around use and benefits. Dm’s cosmetics business
shrinking, make-up continued to grow. has grown by 40% and make-up by 50% in the three years since the
The reasons are manifold: first of which is the phenomenon beauty programme began.
professionals call “the lipstick factor”. Women who buy make-up do
so to cheer themselves up, to feel more confident and boost their
self-image. In times of uncertainty these needs are not diminished;
if anything, they increase. Secondly, constant visible innovation and
fashion drive existing customers back for the latest thing, while growth
comes from the addition of new users, as the category pushes into
new points of sale.

18 Marketing Forum 2010 -- ExEcutivE Summary
Marketing Forum 2010 ExEcutivE Summary

New Ways of Working Together
Jim Flannery, managing Director, customer Development, Procter & Gamble, uSa
Ignacio Gonzalez Hernandez, commercial and merchandise Director Group, carrefour, France
Alberto Moriana, vice President, Global customer Business Development, Procter & Gamble, France

T he industry has been talking about collaboration for years, and yet
today’s supply chain is still full of waste. Stores carry too many SKUs and
too many of the wrong ones: inventories are too high and yet out of stocks
1. Focus on the consumer
2. Connect our business
persist. Trading partners continue to focus on business minutiae instead 3. Prepare our people
of shoppers. New Ways of Working Together (NWWT) is a Consumer Goods 4. Share our supply chain
Forum initiative lead by the CEOs and chairmen and seven manufacturers
and seven retailers. It is not a set of rules or best practices. Rather, it is a An example of the NWWT approach to joint corporate priorities would be the
process and a framework for getting things done via collaborative work. The vaccination campaign by Pampers, Unicef and Carrefour. Implemented in 15
goal is to eliminate supply chain disruptions and enable growth, arranged countries, the campaign offered one vaccine for each product bought, with
under four headings: coordinated media and in-store exploitation. The sharing of CRM data allows
collaborations on specific categories.
One such project between Gilette and Carrefour saw 390 000 razor samples
were offered across France, Spain, Italy and Belgium via the Carrefour loyalty
card program.
Key to success is the definition of common objectives, where two teams
share the same KPIs. Preparing people includes changing the culture from
transaction-driven models to the creation of joint value by better serving the
shopper. “It’s critical to learn how to work in a multifunctional way. We cannot
continue to work in silos.”

Jim Flannery,
managing Director,
customer Development,
Procter & Gamble, uSa

Ignacio Gonzalez
Hernandez,
commercial and merchandise
Director Group, carrefour, France

Alberto Moriana,
vice President, Global
customer Business
Development, Procter &
Gamble, France


Thank you to our sponsors for their valued contribution to the Marketing Forum 2010:

Do not miss the Marketing Forum 2011
11th - 13th October 2011 BARCELONA

For more information on the Marketing Forum: www.tcgfmarketingforum.com

Marketing Forum 2010 Executive Summary

Recommended

Recommended

More Related Content

Similar to Marketing Forum 2010 Executive Summary

Similar to Marketing Forum 2010 Executive Summary (20)

Recently uploaded

Recently uploaded (20)

Marketing Forum 2010 Executive Summary