Kl Brand Summit 2009 Presentation Ml Jacobsen

90
©Copyright & Property of RMS-Retail Management Solutions Brand Strategies in Difficult Times Brand Strategies in Difficult Times Brand Strategies in Difficult Times Brand Strategies in Difficult Times by Marie-Louise Jacobsen Managing Director Retail Management Solutions Pte Ltd Retail Management Solutions Pte Ltd Retail Management Solutions Pte Ltd Retail Management Solutions Pte Ltd

description

This presentation is a guide to help Brands sustain their market-share during economical difficult times

Transcript of Kl Brand Summit 2009 Presentation Ml Jacobsen

Page 1: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Brand Strategies in Difficult TimesBrand Strategies in Difficult TimesBrand Strategies in Difficult TimesBrand Strategies in Difficult Times

by

Marie-Louise Jacobsen

Managing Director

Retail Management Solutions Pte LtdRetail Management Solutions Pte LtdRetail Management Solutions Pte LtdRetail Management Solutions Pte Ltd

Page 2: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Economic Retail RealityEconomic Retail RealityEconomic Retail RealityEconomic Retail Reality

Page 3: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Brand to Retail ConnectionBrand to Retail ConnectionBrand to Retail ConnectionBrand to Retail Connection• Retailers in most cases are your Brand, products and

merchandise connectivity to the end-user; the consumers.

• To understand sales performance of your products or Brands, it is helpful to understand the challenges retailers are facing in today’s economy.

• From a retailers prospective, it is now more important than ever to improve relevancy of product ranges and product mixes in their stores to capture their consumers attention and spending.

• The following recession-proof strategies should give you insights on how to match your Brand positioning and Brand relevancy with retailers

Page 4: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Recover by Improving your Business ModelRecover by Improving your Business ModelRecover by Improving your Business ModelRecover by Improving your Business Model

Page 5: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing 1.Deliver your Brand experience like nothing Before!Before!Before!Before!Before!Before!Before!Before!

Do everything in your power to Retain your customers by giving them Value-Add and a higher Emotional Connection.

This in turn can give you “Good-Will” that your customers will happily spread…free of charge!

Page 6: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

2. Re2. Re2. Re2. Re2. Re2. Re2. Re2. Re--------enforce your value messageenforce your value messageenforce your value messageenforce your value messageenforce your value messageenforce your value messageenforce your value messageenforce your value message

Keep to your Brand promise and deliver more than your promise as in difficult times brand messages can easily sidelined.

It is a good time to highlight core-brand-value and the promise that you can deliver it each time!

Page 7: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

3. Change3. Change3. Change3. Change3. Change3. Change3. Change3. Change

If your failing to engage with customers in a difficult economic environment, then re-look at your Brand position and understand why.

Then take the necessary steps to change your Brand's position so that it again becomes relevant to your customers.

Page 8: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers4. Invest in your Brand to win more customers

As other businesses will be struggling and cutting back on Marketing, make it your business to communicate strongly and then… go out there and win over their customers.

Page 9: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

5. Rally the Troops5. Rally the Troops5. Rally the Troops5. Rally the Troops5. Rally the Troops5. Rally the Troops5. Rally the Troops5. Rally the Troops

Keep your staff well motivated and super productive, through compelling internal marketing. Make everybody buy-in to the “Big-Picture” to increase revenue.

Let them be part of the solution!

Page 10: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

6. Be Confident6. Be Confident6. Be Confident6. Be Confident6. Be Confident6. Be Confident6. Be Confident6. Be Confident

Brand leadership needs a clear confident strategy to maintain success and to remain fixed on your customer’s radar.

Believe that you can so your customers can believe in you.

Page 11: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

7. Aim Higher7. Aim Higher7. Aim Higher7. Aim Higher7. Aim Higher7. Aim Higher7. Aim Higher7. Aim Higher

Not all consumers have their wallets closed. Some will always be willing to spend if you give them a reason to. It may be time for you to re-think your Brand and possibly expand your target audience

Page 12: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

8. Show some Passion8. Show some Passion8. Show some Passion8. Show some Passion8. Show some Passion8. Show some Passion8. Show some Passion8. Show some Passion

Emphasize on the emotional promise your brand delivers can help grow your customer base long term

We all need nourishment for the soul and will continue to pay for the good stuff. People buy for emotional reasons and justify with logical ones.

Page 13: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

9. Have some fun9. Have some fun9. Have some fun9. Have some fun9. Have some fun9. Have some fun9. Have some fun9. Have some fun

When things are looking miserable, everyone needs more fun in their lives. A positive attitude will get you a long way simply because it will make you more receptive to new ideas.

Minds are like parachutes; they don’t work if their not open!

Page 14: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify10. Focus or Diversify……………………

While everything is being scrutinized, now may be the time to extend your brand into new, more fruitful product lines. Conversely, it could be better to narrow in on core product lines, activities and markets. But remember, if your market is changing –It won’t pay to stay the same!

Page 15: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger Invest now in making your brand stronger

Long lasting Loyalty to a Brand cannot be bought Long lasting Loyalty to a Brand cannot be bought Long lasting Loyalty to a Brand cannot be bought Long lasting Loyalty to a Brand cannot be bought ---- it can only it can only it can only it can only be experienced each time & every time!be experienced each time & every time!be experienced each time & every time!be experienced each time & every time!

Page 16: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Recession Proof TipsRecession Proof TipsRecession Proof TipsRecession Proof Tips

Page 17: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Cut the right costs

Page 18: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Cut the right costs by getting to the root of the causeCut the right costs by getting to the root of the causeCut the right costs by getting to the root of the causeCut the right costs by getting to the root of the cause

•Cutting costsCutting costsCutting costsCutting costs across the board is generally not a good idea because money is better spent in some areas of the business over others, and sound investments make good sense, even in a recession.

•Retailers willing to perform a more thoughtful operations review by weighing fixed versus variable cost drivers, in the context of the company's business model, servicing objectives, and organization, will inevitably yield much yield much yield much yield much more value.more value.more value.more value.

•Keep your business recordsbusiness recordsbusiness recordsbusiness records up to date so that you always know how you are faring. The more robust your records are the easier it will be to move faster in the case of a slump.

Page 19: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Automate, Automate, Automate

Page 20: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Automate, Automate, Automate

•Given the continued, rapid decrease in the cost of information technology, it is essential during a recession to search for new places to automatenew places to automatenew places to automatenew places to automate, communicate information and facilitate buying as well as retain customer loyalty. •It is becoming more & more common not only for people who are cash strapped to search goods and services online, as this gives them the ability to compare prices but enables you to stay "visible""visible""visible""visible" in consumer's consciousness each time they visit your website.

Page 21: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

2020--80 Rule80 Rule

Page 22: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

BackBackBackBack----up your Key Vendors up your Key Vendors up your Key Vendors up your Key Vendors

•CarefulCarefulCarefulCareful thought is required to determine which true core competencies to build on. •The choice of vendors is crucial to success and in the best of world’s the Pareto’s 20202020----80 rule80 rule80 rule80 rule should be applied, as it has been proven to be effective time and again across many types of retail formats.•Negotiate HarderNegotiate HarderNegotiate HarderNegotiate Harder Ask for quicker delivery times so that you don't need to have so much money tied up in stock.•As a supplier you want your product categoriesproduct categoriesproduct categoriesproduct categories to be part of the 20% vendor that contributes to 80% of the retailers revenue!

Page 23: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Identify Customers to Grow onIdentify Customers to Grow on

Page 24: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Identify Customers to Grow onIdentify Customers to Grow onIdentify Customers to Grow onIdentify Customers to Grow on

Rather than trying to cater to all customers with all products, customer relationships should be reassessed during a recession. This can be done by communicating on product specifics.

Targeting marketing expenditure to the most profitable customers--and changing the nature of relationships with these key customers--while making discrete cuts in other areas will go a long way toward emerging from the downturn ahead of the field.

Page 25: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Optimize the Marketing MixOptimize the Marketing MixOptimize the Marketing MixOptimize the Marketing Mix

Page 26: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Optimize the Marketing MixOptimize the Marketing MixOptimize the Marketing MixOptimize the Marketing Mix

Increase your MarketingIncrease your MarketingIncrease your MarketingIncrease your Marketing – that’s right - this is the worst time to reduce your marketing budget! The aim is to keep and hopefully increase your market share and the best time to do this is in a recession.Advertising and marketing spending typically get cut first in a down economy. Many of the leading companies today are looking across all their channels--Web, phone, direct mail, face-to-face--to match optimal channel to maximize interaction. They are taking advantage of new, more cost-effective methods of interaction, where possible. Ikea which is typically located outside city centres did just that during “The Great Singapore Sale 2009” They funfunfunfun----vertizedvertizedvertizedvertized their sale right on main shopping street Orchard Road!

Page 27: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Page 28: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Revamp your Business ModelRevamp your Business ModelRevamp your Business ModelRevamp your Business Model

Page 29: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Revamp your Business Model

Retail leaders cannot allow innovation to screech to a halt in the face of a downturn, and must forge ahead by reinventing the way they do business.

1. Leverage or extend products & services2. Innovate by creating new Products & Services3. Concentrate on NICHE Marketing 4. Provide FABULOUS customer service5. Keep in touch with your customers—Internet, emails,

phone calls6. Highlight the VALUE of your products & Make your

products and services more desirable, more consumer centric and market significant

Page 30: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Visual Merchandising & Retail SpaceVisual Merchandising & Retail SpaceVisual Merchandising & Retail SpaceVisual Merchandising & Retail Space

Page 31: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

• VM is the activity of promoting the sale of goods, especially by their presentation in retail outlets.

• VM is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that highlight the store’s image.

• VM is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale.

• Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, ’easy to shop’ and ‘find the product’layout.

Visual Merchandising (VM)

Page 32: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

The Importance of VMThe Importance of VMThe Importance of VMThe Importance of VM

• Educating the customers about the product/service in an effective and creative way.

• Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value.

• Setting the company apart in an exclusive position.

• Establishing linkage between fashion, product design and marketing by keeping the product in prime focus.

• Combining the creative, technical and operational aspects of a product and the business.

• Drawing the attention of the customerDrawing the attention of the customerDrawing the attention of the customerDrawing the attention of the customer to enable them to make purchase decision within shortest possible time, and thus augmenting the selling process.

Page 33: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Window DisplaysWindow DisplaysWindow DisplaysWindow Displays

• A window display is also a "visiting cardvisiting cardvisiting cardvisiting card" for the store. Windows are the most important factor within the store/shop front as they can communicate style, content, and price point.

• They can be seductive and exciting, based on emotional stimulus, or price-based (when they clearly emphasize value for money with easy and obvious ticketing).

• For the retailer, the window is among the most controllable elements in relation to image and to what is happening inside the store, and there are number of decisions to be made about a how these effects are achieved.

Page 34: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Product Focus Through VMProduct Focus Through VMProduct Focus Through VMProduct Focus Through VM

1. Sell by showing and promoting.

2. Create an emotional connect between the viewer and the display.

3. Encourage the shopper to enter the store.

4. Get the customer to pause and “shop” the selling floor.

5. Establish, promote, and enhance the store’s visual image.

6. Entertain customers and enhance their shopping experience.

7. Introduce and explain new products.

Page 35: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

VM is an ArtVM is an Art

Page 36: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Page 37: Kl Brand Summit 2009 Presentation Ml Jacobsen

For someFor someFor someFor some…………....

Page 38: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

For Most For Most For Most For Most For Most For Most For Most For Most ““““““““CanCanCanCanCanCanCanCan’’’’’’’’t Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Without”””””””” areareareareareareareare……………………

Page 39: Kl Brand Summit 2009 Presentation Ml Jacobsen

• Mobile Phone (all)

• Internet access (all)

• Cable TV (all)

• Hair cut/styling (all)

• Favorite local eateries (all)

• Shoes (woman)

• Cheap & Good Fast Fashion (woman)

• Skin care & Cosmetics (woman)

For Most For Most For Most For Most For Most For Most For Most For Most ““““““““CanCanCanCanCanCanCanCan’’’’’’’’t Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Withoutt Live Without”””””””” areareareareareareareare……………………

Page 40: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Can’t Live Without but Can’t Find!The Indonesian SagaThe Indonesian SagaThe Indonesian SagaThe Indonesian Saga

Page 41: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Ways to Magnify Retail ProfitsWays to Magnify Retail ProfitsWays to Magnify Retail ProfitsWays to Magnify Retail Profits

Page 42: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

A Brand/Store A Brand/Store A Brand/Store A Brand/Store withoutwithoutwithoutwithout any emotional value will not be any emotional value will not be any emotional value will not be any emotional value will not be sustainablesustainablesustainablesustainable

How should one build emotional bonds with customers?How should one build emotional bonds with customers?How should one build emotional bonds with customers?How should one build emotional bonds with customers?

1. You must first articulate a distinctive & relevant Brand Promise.

2. You must identify 2 or 3 key attributes of the Brand promise

3. You must use market research to isolate specific triggers; use quantitative approaches to assess which of these triggers will have the greatest impact.

4. Once the triggers have been identified consistent delivery of these triggers will have to be part of the normal stream of the organization’s activity.

Page 43: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Consumer Centricity and what it takesConsumer Centricity and what it takesConsumer Centricity and what it takesConsumer Centricity and what it takes

Carefully analyze past buying behavior of your customers and categorize by their buying habits.

Basically you will be slicing and dicing your database list. Discounts may motivate your customers better than premiums, vice versa for others. Study your list and break it down to create special offers for different customer groups.

Page 44: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Isolate Your Biggest Spenders & Build BIGIsolate Your Biggest Spenders & Build BIGIsolate Your Biggest Spenders & Build BIGIsolate Your Biggest Spenders & Build BIG----ticket Offers ticket Offers ticket Offers ticket Offers for Themfor Themfor Themfor Them

These are the customers that do not want to shop the sales and always purchase your most expensive items. Make it easy for them by packaging products together.

If at all possible, keep track of what they have been buying from you and offer complementary items.

Communicate your new arrivals. It’s a great chance to keep in touch with your customers.

Page 45: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Cross SellCross SellCross SellCross Sell

Page 46: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Cross SellCross SellCross SellCross Sell

Page 47: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Cross Sell the not so ObviousCross Sell the not so ObviousCross Sell the not so ObviousCross Sell the not so Obvious

Page 48: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

The Amazing Power of The Amazing Power of The Amazing Power of The Amazing Power of ““““FREEFREEFREEFREE””””!!!!

Using the word FREE in your newsletter, marketing materials, or on your Web site will increase your sales almost overnight.

First, take a look at what you offer customers now and see what you can give them for FREE.

Page 49: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Offer Premiums and GiftsOffer Premiums and GiftsOffer Premiums and GiftsOffer Premiums and Gifts

Premiums give you better leverage than discounts. Premiums that can be used as gifts give your

customers more leverage for their dollar.

For example, a $50 gift certificate with every $500 in purchases is better than a $50 discount. It costs you less, there will be a percentage never redeemed, and some will bring in new customers who will spend more than the certificate amount.

Store vouchers or store money has an extremely high consumer relevancy…

Page 50: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Customers view these as free money!

Page 51: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting How to understand customer trends and forecasting customer demands customer demands customer demands customer demands customer demands customer demands customer demands customer demands

Page 52: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

We haven’t the foggiest what it does, but it plugs into a computer and retails for three fifty

Page 53: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Consumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying PowerConsumer & Their Buying Power

Page 54: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Changing Shopping HabitsChanging Shopping HabitsChanging Shopping HabitsChanging Shopping Habits

Consumers are changing their shopping habits so you need more information on their current preferences if

you want to improve your sales.

Page 55: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

VALUE&

COVENIENCE

REACH REWARDS

RELEVANCE

Page 56: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

RELEVANCERELEVANCERELEVANCERELEVANCE

• Shoppers valuevaluevaluevalue relevance; and their valuevaluevaluevalue of relevance gets your message through the clutter.

Page 57: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

CRM DataCRM DataCRM DataCRM Data(Customer Relationship Management)(Customer Relationship Management)(Customer Relationship Management)(Customer Relationship Management)

• Real relevancy is achieved through thoughtful application of accurate customer purchasing data/information.

• Understand that people place higher value on the products they enjoy.

Page 58: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

If your Products or Categories are Relevant You will Sell!

Page 59: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

REACHREACHREACHREACH

First give shoppers what they want.First give shoppers what they want.First give shoppers what they want.First give shoppers what they want.

• The next thing to look at is to “Reach” them with relevant messages.

• Ask them if they are interested in getting news or coupons from you once in a while and how.

Page 60: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Let your customers keep you in mind!

Page 61: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Consumer Reward Preference…

– Discounts: 81%

– Currently considering buying a specific product: 52%

– Products & services are relevant to their needs: 47%

– Familiar with the merchant: 35%

– Convenience – good location for the customer: 30%

– Expiry date of the vouchers: 22%

– Flexibility of product size & choice: 18%

– Product sample: 15%

Page 62: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

How to create customer demandsHow to create customer demandsHow to create customer demandsHow to create customer demands

Page 63: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

The 5 drivers needed for the total Brand The 5 drivers needed for the total Brand The 5 drivers needed for the total Brand The 5 drivers needed for the total Brand experience to workexperience to workexperience to workexperience to work

Page 64: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

5 Drivers5 Drivers5 Drivers5 Drivers

Creating Brand or Store Loyalty

Emotional Connection

Value

Accessibility

Awareness

Relevancy

5

Drivers

Page 65: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Emotional communicatorEmotional communicatorEmotional communicatorEmotional communicatorEmotional communicatorEmotional communicatorEmotional communicatorEmotional communicator

Emotional Communicator: Know your customers and what triggers them to buy

Page 66: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

ValueValueValueValueValueValueValueValueIdentify Identify Identify Identify your real your real your real your real strengthsstrengthsstrengthsstrengths

Value: Identify your real strengths what makes your Store; brand, products and

services special

Page 67: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

AccessibilityAccessibilityAccessibilityAccessibilityAccessibilityAccessibilityAccessibilityAccessibility

Accessibility: Is the Brand easy to find each time and every time?

Page 68: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

AwarenessAwarenessAwarenessAwarenessAwarenessAwarenessAwarenessAwareness

Awareness: You've got to stand out and be Different .

Page 69: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

DifferentiationDifferentiationDifferentiationDifferentiationDifferentiationDifferentiationDifferentiationDifferentiation

Relevant Differentiation: Brands are determined by their Unique Selling Proposition - (USP)

Page 70: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

• Emotional ConnectionEmotional ConnectionEmotional ConnectionEmotional Connection

Your Brand, Product or store must connect with the people on an emotional level

• ValueValueValueValue

Your Brand, Product or store must deliver good 'perceived' value for the price

• AccessibilityAccessibilityAccessibilityAccessibility

Location - Location – Location & the web!

• RelevancyRelevancyRelevancyRelevancy

Your Brand, Product or store should be unique or different and consumer-relevant in a consumer compelling way

• AwarenessAwarenessAwarenessAwareness

In your merchandise category are your products the first Brand that comes to the consumers mind? Do you own your consumer's mind-share?

Page 71: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Consumer MotivationConsumer MotivationConsumer MotivationConsumer Motivation

•Motivation is a much-used term in explaining why people

act as they do.

•Motivation can be termed as those inner striving

conditions described as:

Wishes – Desires – Needs - Drives And Likes

Page 72: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

How to Manage Product Life Cycles in View of How to Manage Product Life Cycles in View of How to Manage Product Life Cycles in View of How to Manage Product Life Cycles in View of Market DownturnMarket DownturnMarket DownturnMarket Downturn

Page 73: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Product Life CycleProduct Life CycleProduct Life CycleProduct Life Cycle

TESTING

TAKE OFF

PEAK

DECLINE

CLEARANCE

It is within this grid that retailers are able to make full profits on their Merchandise

Source: Joseph B. Siegel

180 pieces

208 pieces

88 pieces

44 pieces

19 pieces

5 pieces

Zero

Page 74: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Product Life CycleProduct Life CycleProduct Life CycleProduct Life Cycle

• Product Life Cycle Management is the succession of strategies used by management as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.

• Product Life Cycle (PLC)Product Life Cycle (PLC)Product Life Cycle (PLC)Product Life Cycle (PLC) - The phases of the sales projections or history of a product or service category over time used to assist with marketing mix decisions and strategic options available. The four stages of the product life cycle include introduction, growth, maturity, and decline, and typically follow a predictable pattern based on sales volume over a period of time.

Page 75: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Time points in the Selling CycleTime points in the Selling CycleTime points in the Selling CycleTime points in the Selling CycleExampleExampleExampleExample

• You can estimate sales rate based on historical data, or after the event analyze the sales efficiency of these particular items.

• The cycle may show sales at full retail of an item selling at: $59.00 up to the decline stage that 189 pieces are sold= sales of $11,151.00

• At the decline stage, price change is applied. The remaining 19 pieces are reduced by 30%. The new value is $41.30. Stock holding of $784.70

• At clearance, there are still 5 pieces left & final reduction of oddment to clear are at less 50%. New price for the balance 5 pieces: $ 20.65,Markdowns in this case was 5 pieces at value of $103.25 which sold down to zero.

Page 76: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

LifeLifeLifeLife----CycleCycleCycleCyclefor for for for

Fashion Fashion Fashion Fashion

DateDateDateDate ActionActionActionAction SeasonSeasonSeasonSeason

February 1 A SellSellSellSell Early SpringEarly SpringEarly SpringEarly Spring

2 B ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

3 C SellSellSellSell

4 D ClearClearClearClear----out introductionsout introductionsout introductionsout introductions PromotionPromotionPromotionPromotion

March 1 A SellSellSellSell

2 B ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

3 C SellSellSellSell SpringSpringSpringSpring

4 D ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

5 A SellSellSellSell

April 1 B ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

2 C SellSellSellSell

3 D ClearClearClearClear----out introductionsout introductionsout introductionsout introductions PromotionPromotionPromotionPromotion

4 A SellSellSellSell Early SummerEarly SummerEarly SummerEarly Summer

May 1 B ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

2 C SellSellSellSell

3 D ClearClearClearClear----out introductionsout introductionsout introductionsout introductions

4 A Sell& special buys Sell& special buys Sell& special buys Sell& special buys SalesSalesSalesSales

5 B Mix of regular & SalesMix of regular & SalesMix of regular & SalesMix of regular & Sales

June C SeasonSeasonSeasonSeason----end SALESend SALESend SALESend SALES SALESSALESSALESSALES

A Begin receiving new season

B Fashion presentation before this point

C No re-order of this season’s merchandise past this point

D Begin season markdowns at this point

Source: Joseph B. Siegel

Page 77: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

The product lifecycles during a downturn will necessarily be shortened. Depending of the nature of your retail format, you need to decide how long you are willing to hang on to the merchandise before you start discounting.

Rule of thumbs, if 80% of your stocks are still in-store after 1 month, you have a problem.

Second rule of thumbs, the first make-down is always the cheapest. This is because after a month the merchandise is still “deemed” fresh and new and you can get away with a lower discount.

In a downturn, you have to monitor the speed in which you’re selling because if the merchandise is slow, chances are that they will be even slower later on.

Not reacting to slow moving merchandise is not the best choice during a recession. If it’s not selling…get rid of it!

Page 78: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Identifying Problem StocksIdentifying Problem StocksIdentifying Problem StocksIdentifying Problem Stocks

Also known as ‘‘‘‘dogs !’’’’

Page 79: Kl Brand Summit 2009 Presentation Ml Jacobsen

If a Cat can push a watermelon out of a If a Cat can push a watermelon out of a If a Cat can push a watermelon out of a If a Cat can push a watermelon out of a lakelakelakelake…………anything is possibleanything is possibleanything is possibleanything is possible

Case StudyCase StudyCase StudyCase Study

1997199719971997----1998 1998 1998 1998 Asian CrisisAsian CrisisAsian CrisisAsian Crisis

The 30% ClubThe 30% ClubThe 30% ClubThe 30% Club

Source: nohomers.net/showthread.php?t=80865

Page 80: Kl Brand Summit 2009 Presentation Ml Jacobsen

The 30% ClubThe 30% ClubThe 30% ClubThe 30% Club

• The Recession Strategy was dubbed The 30% Club.

• It implied that with a well thought through Strategy, and with the full cooperation of key vendors, we could develop merchandise concepts, new merchandise categories and private labels all of which should generate at least a 30% increase in sales from all participants.

Page 81: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Lesson LearntLesson LearntLesson LearntLesson Learnt

• Lessons learnt from my past experience with recessions, pointed to; that customers got tiered of the loom & gloom and were feeling "Recession Fatigue",

• and after a while, went back shopping looking for something to Reward themselves.

Page 82: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Create a StrategyCreate a StrategyCreate a StrategyCreate a Strategy

• As in the past, Investing in fashion merchandise was every vendor’s fear

• But if all stores were to carry only basic merchandise, the customers who did want to spend would not have the incentive to do so.

• The Strategy: Value Added

Page 83: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Merchandise CriteriaMerchandise CriteriaMerchandise CriteriaMerchandise Criteria

1. Concentrate on best sold categories

2. Decide what we wanted to do• Expand the ranges

• Improve Quality

• Develop newness

• Create novel packaging

• Gift with purchases that has synergy with the products

Page 84: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Brand CriteriaBrand CriteriaBrand CriteriaBrand Criteria

• The Brands chosen had to be popular

• They had to be customer relevant, market relevant and price relevant

• Private Labels were developed in most division

Page 85: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Price CriteriaPrice CriteriaPrice CriteriaPrice Criteria

• Merchandise developed had to be superior in all aspects

• The prices were set to be deemed “great Value”

• Added innovative packaging and gifts with purchases

• Bundle offers where relevant

• Margins were planned high to support launches and A & P expenses

Gift with Purchase

Page 86: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Vendor CriteriaVendor CriteriaVendor CriteriaVendor Criteria

• Each department or division would nominate their best vendors who had a “potential” annual sales growth of at least 30% if we backed them up.

• They had to be of reasonable size, have control over their own production and have ranges that had potential for expansion.

• All merchandise co-created had to be exclusive to our Store

Page 87: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Selling CriteriaSelling CriteriaSelling CriteriaSelling Criteria

• The 30% Club Members were offered premium floor space and special VM Displays.

• Additional floor space were given to support range expansions

• VM & Special signages were developed to support the Brands and Merchandise Concepts

• Additional promoters to support & sell

• Product Knowledge Sessions for all staff on the features and benefits

Page 88: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

ResultsResultsResultsResults

• The cooperation gave us the ability to develop existing brands and new products strategies, new product lines that had synergy with the core brand.

• Our first year result from 14 vendors invited to be part of the “30% Club Members” showed increases in sales ranging from 52% to 137%.

• The following year, five more vendors were added to the Club and both sales and profits showed high double-digit growth for all members.

Page 89: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

Think of PositioningThink of PositioningThink of PositioningThink of Positioning………… as the as the as the as the ““““spacespacespacespace”””” a Brand, Product a Brand, Product a Brand, Product a Brand, Product or a store occupies in the consumeror a store occupies in the consumeror a store occupies in the consumeror a store occupies in the consumer’’’’s minds minds minds mind

Page 90: Kl Brand Summit 2009 Presentation Ml Jacobsen

©Copyright & Property of RMS-Retail Management Solutions

The Art of Retailing Bundled in a Book

Thank You!