Brand Strategy Comes First!

Design, Branding & Commercial Success
... The Changing Marketplace
September 2013

Retail Design & Branding - Definitions
Staying Relevant - Market Trends
The Internet Effect
Russian Perspective
Retail Case Study
Shopping Centre Case Study
Employer Branding
Sustainability
The Changing Marketplace...
Page 2

“Commercial design without
a clear, sustainable strategy is
doomed to failure”
Design, branding & commercial
success in a changing marketplace
Ego or ROI?
Design effectiveness or irrelevant cosmetics?
Page 3

SCG London: Who We Are
International strategic branding
and design consultancy
We work in the retail, financial, real estate
and corporate sectors
We deliver a total
customer experience
Retail:
From new start-ups to existing
chains, niche speciality to large
format stores, our work
positively impacts on retail
performance and profitability.
We deliver a total
customer experience
Retail:
From new start-ups to existing
chains, niche speciality to large
format stores, our work
positively impacts on retail
performance and profitability.

Include
Our Include
Our Include
nclude Brand Consultancy
SCG London: Who we work for
SCG London Page 22
After
Before
Financial – Moskommertsbank

Achieving & maintaining market
share and profit
Creating a first choice brand offer
for target audiences & users which is:
Relevant... Resilient... Sustainable
Page 7
The Business Challenge for retailers and
shopping centres in an increasingly competitive
and changing marketplace...

Differentiation...
Are you a first brand choice?
What is your added value?
What differentiates you from the competition?
What are your rational and emotional attributes?
Page 8

Some Definitions
Design
- originate, create, devise, conceive, plan
Retail design must be based on a commercial strategy
Branding
- image and reputation development
- matching dreams and reality
- delivering the promise
Rebranding
- reconceiving, rethinking, signalling change
- real, not cosmetic ....
Real branding is not a cosmetic packaging exercise!

Define and agree a clear concept brief:

Create, communicate and design the desired brand experience that will
meet (and ideally exceed) audience expectations ‘touchpoint synergy’
Achieve positive differentiation from the competition:
memorable recognisable satisfying
The role of retail design...
Understand current and anticipate future target market audiences’
needs and aspirations
objectives
strategy
concept scope
implementation

Brand Strategy - Commercial Design Criteria
Brand/Business Vision - Market Opportunity
- Aims, Audiences
The Proposition - Places/Products/Services/People
The Delivery - Media...Formats...Multichannel
- Stores...Showrooms...Centres
Differentiation - Success Factors/Attributes
- Competitive Edge Criteria
- Added Value Perceptions
- Rational & Emotional
What is the concept brief?

Retail Design is a Creative Balancing Act...
Operational Trading
Page 12

Trading Issues
Image ... profile
Personality...style
Look and feel
‘emotional’ - intangibles
Operational Issues
Cost... time.. quality
Flexibility and durability
Management resources
‘rational’ - ‘measurements’
products... services.. environments... communications
future proofing... sustainability
“Spending money where it counts”
Commercial and Creative Strategy Components

word of mouth
sms
advertising
direct marketing
website
social media
promotional publicity
posters
street signs
customer journey
anticipation
moments of truth
layout
environment
products
staff
facilities
exit experience
collateral
bags
cards
leaflets
assurance
memories reminders
triggers
after service
Brand Touchpoints
Rethinking opportunities...Reinventing experiences
Rebranding:
Brand Synergy
Awareness... Promise Customer Visit... Journey Afterglow... Satisfaction

Post recession - Consumers are more savvy and demanding
Want real ‘value
Experience... Quality... Price
Convenience is King
Convenience... Micro retail growth
Technological innovation
Self service...Self scanning...Smartphones...
Staying Relevant - “The New Normal”
decline of hypermarket
less wastage
e-& m commerce
more private label
pressure on traditionals
income polarisationsmaller households
loyalty pushincreased effciency
more city centre locations
ageing society in western markets
lower incomes
pressure on impulse purcahses
fresh marketing

Staying Relevant - The Internet
Online retail has put the consumer in control...
Online sales are set to increases in all sectors... ‘e’ and ‘m’ growth
‘Click & Collect’
All retailers are multi-channel
Ultimate ‘convenience 24/7’

“Apps are the new high street”
Staying Relevant - The Internet

Staying Relevant - Multi Channel
“the seamless customer experience”
Instore / Catalogue / Phone / Online
Research... Compare... Buy... Receive... After Service

The growth of private label
sharper competition with brands
Tiered quality ‘choice’ geared to consumer
‘Value’ to ‘Finest’
Unique products
Great ‘exclusivity’ advantage for retailers, whether
fashion department store or food, homing/DIY etc
‘Value’ with values
Reinforces retailer credentials
Staying Relevant - ‘Own Brands’

Staying Relevant - Exclusive brands

Social Media Challenge
“A brand is the sum of all
conversations happening around
the brand”

Staying Relevant - Convenience retail
• Smaller stores - top up shopping
• Quicker service
• Specialisation by multiples
• Online shopping
• People on the move
• Car/petrol station
• Railway
• Airports
• Local
• Community store
24 Hours

Staying Revelant - On the go
Stations
Petrol Stations
Ticket offices
Kiosks
Fresh food on the go

Staying Relevant - Convenience as you want it
Community cafe/ food
High quality top up food
Seating and social
Value
Local independents
Symbol brands

Staying Relevant - Internet convenience
Local but in your pocket
Service based offers
Order/Pickup - food tickets,
mailservices, fulfillment, meals
Free newspapers
Online retail and media

Staying Relevant - “Food to go”
Own label control
Specialists
Established brands
Brand authority
Symbol groups - value
and independents
Communication quality -
value and care

New roles
Multi channel hub

‘Experience’ .. ‘convenience’ ... ‘destination’
Size ... Format .. Location ... Number...
Trend - achieving the right size ‘estate’
Less space expansion to drive growth
Differentiated store experiences... worlds
Implications for Store Design - Developed Markets

Dixons latest store concept - UK
making shopping fun...
Dixons
Turn Experiences into sales

Turn Experiences into sales
New Jumbo concept store - Netherlands
shoppers choice - to buy the prepared dish or take the ingredients to
prepare at home or eat in house
A passion for food ... specialist food areas

A Russian Perspective
Fast Changing Market

The ‘Russian’ Market

Moscow
Moscow - 12m+ population
20 years building programme

Consumer Boom
Pre crisis 30 years in 3 years ...
Retail market revolution from open markets to modern retail
2009
A dose of reality: tough times consumers and retailers in survival mode
2010 - 2013
Russia becomes the biggest retail market in Europe...
International retailers vs fast developing locals
Emergence of affluent middle class

Challenges - society & culture
Reality - Wealth extremes... security... social tension
- Accelerated consumer needs and aspirations
- Growth of nationalism and pride

Russian Retail Market Development
Phase One - Getting up to speed - adapting western standards and practices
Phase Two - Creating ‘Adding Values’ - differentiation... personality / profile
Phase Three - Post Crisis
- More demanding & aware consumer - price quality service
- Social media challenge - multi channel / online retail
- Growing recognition of ‘Employer Branding’ - attract and retain best staff
creating positive internal brand culture as ultimate market differentiator
- New Values - corporate goverance... sustainability

Case Study - Select 25
Mass Market Shoe Brand
Page 40

Select 25 - The Brief
Brand Overview
The objective is to create a new private label shoe brand for the mass market.
The brand will appeal to a wide audience (men and women 16 – 38 ) and will be
targeting those who want to look stylish and contemporary but at the same time
are price sensitive
The stores will be 200 – 250 sq m and will be located in Russia (mainly Moscow).
The ratio of female/male shoes in stores is 80% / 20%. 10% of the product mix
will be dedicated to accessories.

Select 25 - What the brand is about

Select 25 - Target audience
General characteristics
Age: 16 - 38
Gender: Male and Female
Income: up to 1000 USD per month
Benefits sought: To look fashionable and beautiful without spending too much money
Motivation to purchase:
Purely impulse purchase (due to affordable prices) – “I saw a pair of shoes in the window and I
just loved them, they were not too expensive so I bought them straight away”.
Pre-planned, for the occasion (work, party, everyday comfortable shoes, seasonal boots etc) –
“I need a matching pair of shoes for my birthday party outfit”, “I need a new pair of shoes for
my work”
Bargain hunters – “I couldn’t resist the price”
Fashion victims – “I want to stay trendy and fashionable and I always buy the latest season
models, what is fashionable”.
Target group segmentation by age and gender:
Segment 1: Girls 16 – 25, 50%
Segment 2: Girls 25 – 38, 30%
Segment 3: Men 18 – 35, 20%

Select 25 - Core target audience
Young girls 16-25
• They still study or just finished studies, this is why they have relatively low disposable income.
• Their expenditure is concentrated on personal appearance particularly clothes and shoes.
• Key motivation for purchase - to be fashionable, popular and personally attractive, style is more important than quality.
• They are influenced by other and make purchase decisions based on what everybody else is wearing. Following trends
and looking good helps them to become more confident.
• They like going to cinemas, to coffee shops with friends, reading glossy magazines, watching TV, they are obsessed
with celebrities

Young women 25 -38
• They are working in the office, have a husband a probably a child
• They are busy with their family life, like cooking, occasionally go to restaurants.
• They are practical, price/quality is more important than style for them when buying a pair of shoes.
• Buys for herself and sometimes for her husband.
• They are less influenced by the opinion of the other people but they are looking after the trends on TV and im
magazines. They are sociable so they like to discuss their most recent purchases with their girlfriends.
• Try to look fashionable and are lelegant but choose more conservative style.

Young men 20 – 38
• Accompanying boyfriends and husbands on joint shopping trips with their girlfriends and wives who often influence product purchase.
• Men (mainly single) who are willing to look stylish and trendy in everyday life but have limited budgets.

Select 25 - Store design key principles
• Simple and eyecatching shopfront to attract and entice the customer.
• Accessible store design.
• Contemporary, fashionable, enjoyable shopping environment
with dramatic features, confident use of colour.
• Strong visual merchandising as the key tool to motivate impulse purchases.
• To be contemporary, fashionable and bright with a self service format.
“We want this shop to be a destination for shoe lovers
who want the latest styles and trends for less.”
Page 47

Select 25 - Name Requirements
• International but easy to read in Russian
• Short
• Brings associations with fashion, style
• Not too sophisticated / premium
• Not too feminine
Page 48

Select 25 - Name strategy... Fashion
La moda
Belle
Bon Ton
Via Design
Stylo / Stilo (style)
Mia Modaa
Stilissimo

Select 25 - Name strategy - Colour / Dynamism
Vibe
Zest
Mosaic
Azure
Amber
Aquarelle
Deep Blue
Accento
Pulse
Dazzle
Mojo
Viva
Fusion
Buzz
Indigo
Cerise

Select 25 - Name strategy - Imaginative words
Adora
Blizz
Bravi
Buji
Carmel
Carrara
ChiChi
Iggy
Vizz
Rubis
Savvi
Mimi
Sollio
Briozo

Select 25 - Benchmarking store front
Simple frontage with bold graphic
Playful shapes
Simple colour use
Clear in-store vision
Eye catching and playful use of type
Quirky communication

Select 25 - Benchmarking perimeter / mid floor
Mirrored unit ends Product densityColoured shoeboxes create personality
Use of large scale graphicsHigh density product wall with cross merchandising Bold use of shoeboxes creates individuality
Product density with varied
unit heights

Creating height, elevating a product
Highlighting product
Select 25 - Benchmarking shoe & boot merchandising

Recognizable texture Brand wallpaper Use of mirror
Fashion orientated photographyUse of communication to ‘story tell’
Select 25 - Benchmarking cash desk / seating

Lightweight giant louvres as ceiling feature
Ceiling raft with recessed track &
spots
Open cell
Painted ceiling Barrisol Suspended ceiling blocks Linear fixtures
Feature lighting
Select 25 - Benchmarking lighting & ceiling

MAIN RETAIL SPACE 201,842 sqm2
OVERALL: 235,783 sqm2
FUTURE DEVELOPMENT
INCREASE OF MEN CATEGORY
WOMEN
80%
MEN
20%
SEASONAL
STORAGE
33,941 sqm2
80% WOMEN
20% MEN
CASH DESK
SEASONAL
CUSTOMER JOURNEY-
WOMEN
CUSTOMER JOURNEY-
MEN
STORAGE SPACE
33,941 sqm2 TBC
WOMEN
70%
MEN
30%
NOTE: 10% of the product mix
will be dedicated to accessories
through cross merchandising
Select 25 - Zoning

MOST RECENT
‘WHAT’S HOT’
BALLET FLATS
BOOTS-ANKLE/KNEE HIGH
FLIP FLOPS
WORKWEAR PARTY WEAR/SMART
FLATS/CASUALS SANDALS
SNEAKER/SPORTY
ACCESSORIES
SALE
HAPPY HOUR/END OF LINE
Select 25 - Key product categories (woman)

SALE
HAPPY HOUR/END OF
LINE
MOST RECENT
‘WHAT’S HOT’
BOOTS-ANKLE
FLIP FLOPS WORKWEARCASUALS
SNEAKER/SPORTY ACCESSORIES
Select 25 - Key Product Categories (men)

NOTE:
Shoebox sizes depends on shoebox
type
Approximate sizes are as follows:
Ladies’ Shoe Box
29.5cm x 9.5cm x 18cm
Mid Calf Boot Box
36.2cm x 28.7cm x 11.7cm
Knee Length Boot Box
53.2cm x 29.2cm x 12.4cm
Men’s Shoe Box
34cm x 13cm x 21cm
Select 25 - Shoebox types

Option C
Option A
Option D
Option B
Select 25 - Bold, approachable with personality

Select 25 - Strong symbol - Iconic & Graphic

Shopping Centre Design
Creating destination brands
Staying relevant
Page 72

New roles, new thinking
“A place where people want to be”
...again and again
In Turkey you are lucky...at the moment but wait!
Real estate developers in the UK face an
empowered consumer and many are in trouble!
Shopping Centre Design - Staying Relevant

Destinations where people meet, eat, relax, indulge,
work, rest and play... and shop - a community venue
promoting wellbeing and lifestyle activities...
The market used to be developer led, now it is consumer led...
retailers demanding the right space in the right location to meet
their customers’ needs
Developers, managements, architects, designers and marketers
need to understand they are creating destination brands and
environments that create unique experiences to capture hearts
and minds
Staying relevant - changing market dynamics

As a destination brand a shopping centre must:
Create added value experiences for visitors
and shoppers
Optimise tenant sales performance
Achieve highest rental yields and maximum
commericial income
Enhance capital value and ‘sellability potential
Page 75

Centre Brand Challenge
Image and reputation
Known for attributes...?
Creating a first choice perception for target users
and audiences
Ongoing challenge – sustainability!
Maintaining a WOW factor - visit after visit...

Creating a WOW factor for centre target audiences
Shoppers/Visitors
Tenants/ Investors/
Owners
The Community Stakeholders/
Politicians
Interest Groups/
The Media
Staff, Partners/
Suppliers

WOW Factor Experience: Brand Ingredients
Location
Tenants
The Brand
Target catchments…
Accessibility...Visibility...
Relevant Profile…Formats…
Services...Facilities...
Name…Identity…Vision…
Message…Visual and oral
signatures and applications

Marketing and
Communication
Venue Design
Digital…Print...Events…
Activities…Social media…
Website…Advertising...
People…Services…Suppliers…
Shared vision and values
Management
Culture
Site...Architecture…Environments…
Circulation...Zoning...Decor…
Lighting…Signage…Graphics...
WOW Factor Experience: Brand Ingredients
Page 79

Case Study - Kaleidoscope
Moscow Shopping Centre
Page 80

“Exceptional place brand experience”

Before we started...
A vision to turn a sterile site into a first choice place to be...

The vision realised...

A name and brand identity to inspire
Creating a logo concept.

The final logo and message “Always Different, Always Yours”

Kaleidoscope, December 2008 5
Вход в метро
Центральный тотем
Рекламный тотем
Пространство для проведения
мероприятий
Обзор местности
Site Overview
Creating a community destination hub

bus stops
stage
seating
raised viewing
levels
tenant totem
tenant totem
retail units
metro
SCG LONDON
8 Plato Place
72-74 St Dionis Road
London SW6 4TU
t +44 (0) 20 7371 7522
www.scglondon.com
SITE LAYOUT PLAN
Client: Status: INFORMATION
Drawn by: Authorised by: Project No:
Drawing:
Contract:
For information only
Dimensions to be verified on site
All measurements are in millimeters
Notes:-
Specification:-This drawing is the copyright of SCG London.
Figured dimensions to be taken in preference to those scaled. All
dimensions to be checked on site before any work proceeds. The
contractor is to provide full size setting out drawings based on the
information contained in this drawing for the designers approval
prior to commencing manufacture. The drawing is issued on the
condition that it is not reproduced, retained or disclosed to any
unauthourised person either wholly or in part without the consent in
writing of
Drawing No:Date: Revision Comment Date Auth.Revision Comment Date Auth.Issue:Scale: Print size: A3
NOTE: DRAWING PROVIDED
FOR INFORMATION ONLY
A3=1:500
AND
KALEIDESCOPE
RRHRRH
17-02-09 548 A0-01
548
A5-03
01
A5-05
01
A5-02
01
A5-02
01
A5-01
01
INFO
EntranceTo the shops
EntrancePay Station
Please Pay Here.
Car ParkTarif:
upto 2 hours Free.-
2-3 hours 75.-
3-4 hours 150.-
4-6 hours 500.-
6+ hours 750.-
Please pay for parking
at Pay Stations before
exiting the Centre
VATED SECTION A-A
Plan Legend - Car Park Level 2 A
A
B B
Thank You.
rinciples
ZONE
M
ZONE
M
ZONE
M
ZONE
M
ZONE
M
ZONE
M
ZONE
M
ZONE
C
ZONE
C
ZONE
C
Длинная Секция
Long Section
ELEVATED SECTION A-A
A
B B
A
B B
Car Park Section, Plan and Entrance Principles
Creating effective zoning

Distinctive architecture - local landmark

Туалеты
Банкомат
Информация
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LEVEL 1
TENANT NAME TENANT NAME
TENANT NAME TENANT
TENANT NAME TENANT
TENANT
TENANT NAME TENANT
TENANT NAME TENANT
TENANT N
TENANT NAME TENANT
TENANT NAME TENANT
TENANT NAME TENANT
TENANT
TENANT NAME TENANT
TENANT NAME TENANT
TENANT NAME TENANT
TENANT
TENANT NAME TENANT
TENANT NAME TENANT
TENANT N
TENANT NAME TENANT
TENANT N
TOILETS
ESCALATOR
ELEVATOR
Digital totem - a local landmark... icon

Marketing channels synergy

project overview 42
ite
page
Kaleidoscope project overview
Website
Content pages
Company Information | Terms and Conditions | Privacy Policy | Site Map | Customer Enquiry | Disclaimer © 2009 Kaleidoscope All Rights Reserved.
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Wednesday 9.30am – 8.00pm
Thursday 9.30am – 8.00pm
Friday 9.30am – 8.00pm
Saturday 9.00am – 8.00pm
Sunday 11.00am – 5.00pm
Bank Holidays 10.00am – 6.00pm
Three Musketeers
Rated: 12A
Release Date: 12/10/11
View Trailer
Rated: U
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The Lion King 3D
Find out more here
What’s on Coming Soon
Catch up on our exclusive winter
catwalk show and behind the
scenes action from Karen Millen.
Catwalk
Show
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Anonymous
Rated: 12A
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Rated: TBC
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At vero eos et
accusamus et iusto
odio dignissimos
ducimus qui blanditiis
praesentium volupta-
tum occaecati
cupiditate
provident.Similique
sunt in culpa qui.
READ MORE
At vero eos et
accusamus et iusto
odio dignissimos
tum occaecati
cupiditate
provident.Similique
sunt in culpa qui.
READ MORE
At vero eos et
accusamus et iusto
odio dignissimos
tum occaecati
cupiditate
provident.Similique
sunt in culpa qui.
READ MORE
Menu Events
Cinema
Kaleidoscope Mall
Tenants
Gallery Brands
Services
Leisure and Entertainment
Photo Gallery
Videos
Write a letter
Getting Here
Contact
Leisure
Ice Skating
Bowling
Kids Club
Marketing channels synergy

Kaleidoscope project overview 36
Environmental promotion
Advertising kiosk
Promotional - seasonal campaigns
Autumn
осенние открытия
в Калейдоскопе
Promotional - seasonal campaigns
Winter
Distinctive advertising image

eidoscope project overview 69
he family
S
Боулинг клуб
Bowling club
Мишкин клуб катания на коньках
ЛедоваяАрена
СТАРТ
представляет:
Игра
Добро пожаловать в боулинг
Bowling club
Мишкин клуб катания на коньках
Добро пожаловать на каток
Привет! Хочешь со мной покататься?
Memorable characters

A stunning launch - December 2012

Dynamic easy circulation

Contemporary decor, different moods and zones

Simple effective navigation

A place where people want to be...

Employer Branding
Do your people make the difference?
Page 101

“Creating a positive brand experience for all
customers involves everyone but nobody
is responsible”
Successful differentiation between companies is increasingly based on their
people
Looks can be copied...developing a successful internal brand culture takes
time and effort
Design represents positive change... a motivational people development
initiative or wasted opportunity for engaging
and inspiring
A company’s external customer face and experience needs to be a reflection
of the organisation’s internal culture, personality and values

‘Our people make the difference’ … do they?
People - an increasingly important differentiation factor
Consumers increasingly aware of the wider context - how companies treat their
people
People - an increasingly important differentiation factor
Consumers increasingly aware of the wider context
- how companies treat their people and suppliers
‘Our people make the difference’ ...do yours?

Design and brand development
ideally involves key cross
departmental activities from
marketing to real estate, IT,
HR, operations...
Employer Branding
Page 104

Achieving ‘added value’ - reputation and ROI
communications
buyers
procurement
logistsics
sales
IT
real estate
marketing
operations
human resources
Creating the brand experience - for customers and employees
Effective management organisation
Departmental activities / functions
Marketing StoreService Internet Workplaces
Department collaboration?
Teamwork = Synergy

Team synergy = efficiency = optimum performance
Organisation challenge - achieving culture change
Removing internal barriers
people
power
procedures
politics
‘silo mentality’
Information is power
Effective communication strategy and design!

How consistent are the messages we are communicating internally and
externally about our organisation as a place to work?
What are the most effective channels of employee communication,
both top-down and bottom-up?
Which employee positions are most critical to our success and what are
we currently doing/need to do to attract, engage, and retain them?
Design Strategy Success = A Positive Brand Culture?

Designing A Success Culture...
What kind of culture do we have?
How consistent is it across geographical and
divisional boundaries?
What behaviours are most characteristic of our organisation?
the most rewarded?
the moments of truth when the organisation is at its best
(and worst?)

True ‘sustainability’ means providing physical and virtual venues
and experiences that meet the functional and emotion needs of
their users and customers
‘Green’ certifications are irrelevant if the buildings which
people do not want to live/work in, visit and enjoy
Design that appeals to the head and the heart!
A Word About Sustainability

Design, Branding & Commercial Success in a
Changing Marketplace
“Commercial design without a clear, sustainable
strategy is doomed to failure”
Ultimate success is based on engaging
the hearts & minds of your customers
and your staff... through effective
design and real brand synergy!
Page 110

SCG London
8 Plato Place
72-74 St Dionis Road
London
SW6 4TU
+44 (0) 20 7371 7522
Turkey Representative
ISIL KUSOGLU
isil.kusoglu@scglondon.com
T: +44 (0)20 7371 7522
M: +44 (0)780 0793 456
Skype: scglondonturkey
Chairman
CLIVE WOODGER
clive@scglondon.com
T: +44 (0)20 7371 7522
Skype: clive@scglondon.com
Yolunuz açık olsun!

Brand Strategy Comes First!

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