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Global perspectives on a
trends, and insights
The remaking of retail
CPG: stand out or
Creating and managing Getting more for less
www.interbrand.com brand value
p01 Introduction: weathering the storm
A letter from Jez Frampton.
p30 The remaking of retail by
Lee Carpenter and Greg Silverman
Resources are limited and tension is high.
The time is ripe for retail innovation.
Creating and managing brand value. Jez Frampton
p32 How we value retail brands
p04 Building retail brands by Criteria for consideration and methodology.
Lee Carpenter, Jean-Baptiste Danet
and Stuart Green p34 The Best Retail Brands 2009
A look at retail challenges and the future of Profiles of the most valuable retail brands in
retail brands in three regions. the U.S., Canada, Mexico, and Europe.
Making sense of the economic turmoil of and the all important human interaction. Their habits and behaviors will continue to
recent months will take time and a degree I would say, a recipe for great innovation adapt to the technologies available to them
p08 Creating value in-store by Kelly Crouch
of hindsight that most business leaders and opportunity! and to the truths about our lifestyles and
and Emily Grant Appendix
just don’t possess at the moment. Our habits exposed by the recent economic,
Why brands should focus on shoppers’ needs
attention must focus on the immediate As the rankings in this magazine show, social, and environment events. Getting a
in downturns. Commonly asked questions
needs of businesses and brands in real retailers are now actively managing their grip on this fast changing world and feeling
time. History alone will deal with the rest. brands and creating valuable business assets. confident that your brand can sail through
p10 Getting more for more by About Interbrand and our Best Retail
And the world of branding has changed too. these stormy seas requires a strategy that
Bruce Dybvad and Rune Gustafson Brands study
We’ve focused on retail in this edition Data is used to build the business case for is based on today’s truths rather than
Cutting price in downturns isn’t an answer—
of the Interbrand magazine because it brands, to highlight the initiatives within a yesterday’s assumptions. It requires a
focus on the shopper experience instead. Contact us
is a powerful barometer of economic strategy, and to build ROI models into brand strategy that is delivered in stores and lives
sentiment. The dramatic differences in programs, not to mention the monitoring in customers’ heads, not well intentioned
p14 Best practices by Lynn Gonsior and
the fortunes of the various High Street or and active management of brand value documents and plans.
Main Street players highlight the mood of creation. This means that brand management
Top retailers are growing more sophisticated
the day: Are you in a position to weather, can live happily within the highly accountable I hope you find the thinking in this magazine
in their approach to finding growth. Their
or wither in, the storm? world of retail using data and value as the useful to you, your business, and your brands
insights can help your brand.
bridge between the financial and commercial as we all continue to tackle the challenges
A retailer once told me that he didn’t have streams of activity. before us.
p16 The crisis paradox by Josh Feldmeth time to build his brand; he was too busy
Markets are contracting and results are meeting the needs of his customers and his Retail has certainly been deeply impacted by Regards,
under pressure. Intelligent branding is business. At Interbrand we would view this the economic realities of our times. But what
required to extract more value from invested as the very essence of building a brand, but better market is there to pick itself up and
brand assets. it’s easy to see why the marriage between fight back?
retailers and brand management hasn’t
p20 Break away from the pack always been easy. Branding was historically While cost-cutting has formulated the bulk
by Fred Richards and Bertrand Chovet viewed as the “lipstick on the pig,” a graphical of businesses’ reactions to the downturn,
Differentiation at shelf level is key to veneer which added questionable value in the we are now recognizing that demand creation
standing out in saturated categories. face of global logistics and sourcing. But as is the required antidote. Demand can be
markets have changed, so have attitudes. created without relying on discounting which
p24 Fast moving consumer goods in hinders a business, erodes margins, and
regional markets by Richard Veit Differentiation is the essence of good places a business under increasing pressure.
Regional brands in growth markets have business in any crowded market; the ability Demand creation requires us to step away
the upper hand—but only if they work on to influence demand beyond the tangible, to from the crowd, to do things differently in our
building innovative brand propositions. go beyond the table-stakes of convenience, quest to stand out, and own a clear position Jez Frampton
quality, service, and the like, into the realms in a market. Global Chief Executive
p28 Shifting winds by Burton Blume of the unique. Brands are the way we do Interbrand
and Jonathan Chajet business; the factor that makes our service Perhaps retailers need to better understand
Trends and insights for the future of Asia’s offer, our product line-up, our culture, and of how their brands drive value and what
retail markets. course, our language and appearance more actions should be taken to ensure that
desirable over the competition. their brands are readied for the market of
tomorrow, as well as the market of today.
Retailers are perfectly placed to build truly
great brands. They have many rich data All around us the world is changing.
points: physical experiences involving To only view these changes through the
numerous opportunities to create eyes of the economy is dangerously one-
uniqueness, including service, process, dimensional. Consumers’ attitudes have
product mix, layout, ambience, culture, changed and will continue to change.
Best Retail Brands 2009 01
The Best Retail Brands has taught us that a brand
is not just a logo, a name, or a snappy slogan—it’s
the tangible and intangible assets that customers
attribute to a retailer.
Interbrand is delighted to unveil the Best Interbrand pioneered the technique of
Retail Brands 2009. measuring brand as a business asset twenty
years ago. In this time we have conducted
For almost 10 years we have published our over 5,000 brand valuations across all
Best Global Brands report in cooperation industry sectors around the world. We now
with BusinessWeek. It ranks the top 100 focus all of this experience and expertise to
global brands by their brand value and bring you the Best Retail Brands.
has become the barometer for successful
brand management. Indeed, it has actually The retail sector offers some unique
been ranked as the third most sought-after challenges. First, we understand that the
benchmark report by CEOs. culture of retail is immediate and extremely
operationally focused. This creates a
We are proud of the success that we’ve had in tough environment for brand thinking and
provoking the debate among business people management to thrive, but our study shows
about the value of brands to business. We the impressive performance of the leaders,
look forward to this study becoming equally and we wanted to share the lessons of success.
influential among retail leaders.
Second, compared to other sectors,
When a business gets it right, the brand retail brands tend to operate over the
becomes a value creation engine. Brand most expansive brand experience for their
valuation is a great tool for showing a customers. Retail branding extends from
business how to optimize its brand. We the robust insights that formulate brand
use it as a proactive tool. By showing an strategy into product assortment, sourcing
organization the earnings attributable to and selection, format strategy, store design,
intangibles, assessing the role that the brand engagement of people, and in many cases
plays in purchase decisions, and revealing the the creation and supply of private label
relative competitive strength of the brand products. Strong retail brands orchestrate
within its markets, the organization can focus a complete shopper journey with the
its attention on building the brand’s value. objective of achieving the long-term loyalty
Indeed, our experience shows that simply by of their customers.
recognizing the brand as an economic asset,
like other business assets, it starts to be
managed for growth.
02 Best Retail Brands 2009 Best Retail Brands 2009 03
Building 01 The relationship
Rising disposable incomes, growth in
purchasing power, continued expansion
of urban areas, increased mobility, and a
retail brands and retail wider choice of products and services have
all been key factors in changing consumers
attitudes towards shopping and how they
spend their money.
by Lee Carpenter, Lee Carpenter, CEO North America: The
store is a physical expression of the brand
and provides a powerful opportunity to make 03 Key trends and
Jean-Baptiste Danet, emotional connections and influence choice.
In creating an experience, the brand guides
every decision, from the orchestration of the
challenges in regions
and Stuart Green
customer journey, to the messaging at each
touchpoint, to the assortment of the store.
Brand is the way you do business. It is what LC: There is one key challenge in North
makes you different: You can’t just say it—you America right now: value. And this is true of
have to do it. It takes place in the store, every segment. Most consumers are giving
online, on the pages of a catalog, and over the careful consideration to their purchases
telephone. Brand isn’t just the logo, it’s the and retailers need to offer a compelling
physical real-time delivery of the promise your proposition to earn the dollars that are being
brand makes—an experience the consumer spent. We’re seeing less frivolous buying and
will undergo—shopping. When you walk into more investment purchases, such as buying
a store, you are entering a brand. So, you consumables in bulk and purchasing high-
can see why the store is a primary means of quality, classic clothing that will last.
brand engagement. It provides a powerful
opportunity to make emotional connections Shoppers will be feeling unsettled for a while.
and influence choice. The connection lives They’re busy reassessing what’s important
beyond the transaction to create feelings and to them, just as retailers are reassessing
memories that last. the relative importance of reducing costs
versus increasing investments, going on
Jean-Baptiste Danet, CEO Europe: In the defense or offense, in order to optimize
1960’s, consumers discovered supermarkets store performance.
and hypermarkets and huge offers that
fostered the discount concept. In the 1990’s, JBD: In Europe, the general trend is that
we saw a new generation of specialized department stores are suffering and
retailers reinvent the retail business. hypermarkets are stagnating. Mega-stores
Biography: Lee Carpenter, Biography: As CEO of Interbrand Biography: Stuart Green takes an
Brands like Sephora, Zara, H&M, and Grand are visited but the act of purchasing has
CEO of Interbrand Design Forum Europe, Jean-Baptiste Danet leads intentionally pragmatic view to
Optical focused on the concept and used become more difficult; stores located in city
and Interbrand North America, the European practice with strong creating and managing brands,
every touchpoint (from space to service) to centers suffer from the consumption crisis.
is recognized as one of the most conviction to deliver a holistic believing that the ultimate yardstick
reinforce this concept. In other words, they At the same time, the well-positioned brands
influential retail experts in the U.S. approach to brands. His leadership has for brand effectiveness lies in the
acted like a brand. Since then, brand and retail like H&M and Zara gain share.
He and his team pioneered, and successfully built many of the world’s end-user experience. As President
have become inseparable.
continue to refine, an integrated most valuable brands. Understanding for the Asia-Pacific region, Stuart
SG: Asia-Pacific continues to develop at
business model that blends creative, the equal importance of all brand ensures that Interbrand’s diverse
a rapid pace. Across the region mixed use
analytic, and strategic retail touchpoints, Jean-Baptiste has grown and collective thinking leads to a
disciplines to build brand experiences his team’s practice and brought to life distinct customer experience for 02 The development of developments (e.g. residential, commercial,
leisure, and retail spaces) are increasing;
that go beyond selling to develop new disciplines and processes that every client. Stuart has 24 years
retail branding in Asia an example being Singapore’s Marina Bay
In Japan’s main urban
relationships with shoppers. He is a deliver the greatest quality work for in brand management and design
development, set to launch in 2010. The
champion of bringing the brand to Interbrand’s valued clients. working in Europe, the US, the
retail component is a critical factor, and is
life by understanding where and how Middle East, and the Asia-Pacific.
largely driven through the integration of
centers, retailing is now
brand can be leveraged in the store for
Stuart Green, President Asia-Pacific: commerce, office space, as well as leisure
20 to 30 years ago, retailing across Asia and residential, and the best price.
a sophisticated business
consisted for the most part, of small family
run shops and market traders (the exception In the same vein, themed malls, consisting
being Japan’s very successful department of shops, restaurants, local and international
with many homegrown
stores). In the main urban centers, retailing fast food outlets, cinemas, nightclubs,
is now a sophisticated business with and art galleries are now being developed
many homegrown brands as well as the in the Philippines, China, and Malaysia.
international players looking to tap into
the fastest growing region in the world.
While many parts of the world experience a
decline in the popularity of malls, many Asian
markets go from strength to strength.
brands as well as
04 Best Retail Brands 2009 Best Retail Brands 2009 05
In 2007, Internet retailing universities, and other experts, develops and
patents new ingredients to bring the most
Best Buy strives to differentiate its brand
experience through distinctive touchpoints,
In order to be globally relevant, a retail
brand needs to have a clear proposition that
was worth nearly US $49 billion
innovative products to market. This, coupled tailoring store environments and selling styles is nearly universally compelling, with the
with its affordable prices, has been a recipe to customer insights, with current emphasis ability to be flexible enough to operate within
for success. on the employee expertise and commitment. the varied constraints found in markets
across the 14 Asia-Pacific UNIQLO’s simple ideology of providing high
The company constantly tests new concepts,
such as robotic vending machines in airports
around the world.
countries, and is forecasted
quality yet affordable basics is striking a chord carrying cell phones, computer accessories, JBD: Cultural differences and geographic
with consumers ranging from the fashion- and cameras. Consumers give it top marks for boundaries are often insurmountable
forward to those just looking for something shopping experience and meeting expectations. challenges for retail. Truly global retailers
to double by 2010. comfortable to wear.
JBD: H&M and Zara, have reinvented the
have invented something new, and kept their
advantage over time. In retail, as the goal is
Charles & Keith, a Singapore based retail retail/apparel industry, understanding the to capture as many consumers as possible,
brands focusing on shoes and accessories perfect mix between finance, space, and the brand idea needs to be accepted and
saw that shoes from foreign wholesalers were brand. Carrefour and Tesco have, in their understood everywhere.
consumer report, South Koreans are the sensory environment with service that is expensive and unsuitable for smaller Asian own way, invented the European way of
most avid online shoppers in the world with relevant to consumer needs, will attract and feet. It quickly capitalized on this opportunity selling goods to the biggest number of Finding the best locations and being able
some 99 percent of Internet users having maintain loyalty. Although value for money with its own line of shoes. It now has an R&D consumers. Aldi and Asda have created to invest in new offers, while maintaining
shopped online. is a common denominator across markets, team of 70 people, which has churned out the low-cost supermarkets. Sephora is the quality of the concept requires strong
discerning consumers are increasingly willing over 750 women’s footwear designs. still the only worldwide chain structured management and visionary skills. This is a
Luxury brands are also increasingly driving to pay a significant premium for quality like a supermarket to seduce women key challenge. The consumer will buy less, so
consumer behavior in both developed and stature. Ultimately, brands that sell LC: Wal-Mart, Tiffany & Co., and Best Buy are with perfumes and cosmetics. FNAC has the goal is to capture the bigger part of the
(Singapore, Japan, South Korea, Hong Kong), quality products and demonstrate a good brands that know who they are, understand succeeded in fulfilling its brand promise purchase power. That’s where a strong brand
as well as emerging markets such as India, understanding of local consumer attitudes their customers, deliver consistently on their as a place where you feel more clever and can create difference.
China, and Indonesia. and preferences stand out. These are the respective brand promises, and continue intelligent when you buy a book or a PC. And
great retail brands. to innovate and explore new directions. yet, others that had done well are beginning
Wal-Mart is determined to change and to show signs of losing. M&S and C&A create
07 Key factors that will
04 Characteristics of a adapt to meet emerging customer needs. less difference than before. The role they used
determine the success
great retail brand 05 The retail brands The company is working to make brand to play on the retail market is not as powerful.
that are getting it right
touchpoints clear and relevant, especially
those that have the most impact on
The consumer can substitute them and is
even actively looking to do so.
of retail brands in
moms. These touchpoints include store the future
environment, website, in-store messaging,
LC: A great retail brand that has a ringing
clarity about its reason for being and that SG: Retailers that address the local needs and
product mix, and sustainability.
06 Going global
truly understands and delights its target motivations of their customers will continue Tiffany & Co. stands for quality and longevity LC: Retail brands need to understand their
The Iconic Prada store in Ginza, Tokyo.
segment will have great appeal. It’s easier to build a loyal base. Homegrown Asian and claims a large share of mind. The cachet customers, use that information to deliver
for specialty brands serving a narrow niche brands continue to emerge. Some of the ones of the Tiffany blue box adds a high-value value, and provide a compelling and relevant
LC: Retail involves complex logistics, and
Some mall owners are also promoting with very distinctive needs, like “pet parents” getting it right include the Hong Kong brand intangible to any purchase. The company has experience that connects with the shopper.
these inherent challenges are further
environmental sustainability through their or “gamers.” You can appeal to emotions Shanghai Tang, which offers a full range of fully recovered from a “brand-slip” a couple
complicated when responding to varied
developments. SM Group, the biggest and passions, or help people manage their clothing for men, women and children, plus of years ago when the wrong merchandise JBD: We can assume that all the major
customs and regulations. In some instances
mall developer from the Philippines, put problems. It’s tougher for mass brands home furnishings, accessories and gifts. Now caused it to fall to novelty level. Today, Tiffany retailers have made plans for the crisis we
meeting the needs of varied locations would
in place an energy management system since they were created to appeal to very part of Swiss luxury goods giant Compagnie continues to reaffirm its unique appeal with a are facing today; for example Carrefour
require an entirely different proposition.
as early as eight years ago. There are also broad segments, but even they are finding Financière Richemont, Shanghai Tang small number of stores to keep from diluting had decided to move all its formats to the
For example, many popular U.S. stores
sewage treatment plants in the malls. These success, being perceived as having genuine operates stores in China, Japan, Malaysia, the brand and it’s expanding into eyewear and Carrefour brand prior to the recession.
are founded on the notion of having huge
environmentally conscious practices reduce character, definitive core values, and concern Singapore, Taiwan, and Thailand, as well as watches to drive revenue and relevance.
assortments and long hours, sometimes
operating costs as well as earn significant for community. All that, of course, has to be Dubai, UAE, London, and Paris. The brand Planning a clear way out will determine
open around the clock. In Europe and Asia
goodwill from shoppers. delivered consistently across all channels— continues to learn and evolve, with new long-term success. Retailers will benefit
people shop much more frequently in much
not an easy task. stores staying true to its 1930’s Shanghai Art from the purchase recovery before the
smaller stores, often with reduced hours and
Destination shopping is also a theme. Asian Deco accents and bold colors and tongue- rest of the economy, and they will give the
there might be little to no parking—a very
consumers love to travel and shopping SG: Over the years, many international in-cheek-humor, but expressed as a modern signal. The ones that invest in their network,
different experience from stocking up on
excursions across the region are growing in retailers in Asia have failed, simply because international lifestyle brand—with a maintain their concept, and understand
popularity. This has increased in recent years they didn’t adapt to a different environment broader appeal. The great retail brands two-months worth of paper towels and
their customers in difficult times will recover
with the growth of low-cost carriers, as well and different consumer needs (the exception know who they are, before the others. But, many of them will not
as the expansion of flight routes. Locations being the luxury sector in more recent years). THE FACESHOP is one of Korea’s largest make it to that day. And the strongest are
such as Singapore, Bangkok, Hong Kong, So first, it’s important to understand that Asia retailers of body, bath, skin care, and make- understand their already looking for ways to accelerate
and Ho Chi Mihn City are becoming regular
weekend travel destinations for shopping.
is complex with a large variety of cultures,
races, languages, and religions, all at different
up products aimed at both women and
men. The company has quickly expanded
customers, deliver the death of the weakest.
stages of economic and social development. to over 740 retail stores in 19 countries. consistently on their
Online shopping is another area of interest.
Internet retailing was worth nearly US$ 49
Second, brands that sell quality products
and demonstrate a good understanding of
THE FACESHOP’s philosophy lies in
understanding the importance of health
billion across the 14 Asia-Pacific countries in local consumer attitudes and preferences and beauty. Continuous development is promises, and continue
2007, and is forecasted to double by 2012 to
approximately US$ 71 billion (Euromonitor
have a better chance of success. Third,
location continues to be a critical driver
an integral part of THE FACESHOP way of
life. The company’s research institute, a
to innovate and explore
International). According to a global Nielsen of success, but brands that can develop a center of collaboration with dermatologists, new directions.
06 Best Retail Brands 2009 Best Retail Brands 2009 07
Creating value in-store: Shoppers are what consumers become when
they enter the store environment. Shoppers
even Product Q, which is a little bit different
but appears to do almost the same thing.
or workplace, and cannot be gathered by
looking at market research studies that
• Promoting trial
• Facilitating greater purchase frequency
understanding and profiting
segment differently–chiefly by their shopping outline what people buy. Those insights
behavior, habits, and practices. They are also What do they do? Remember the statistic are meaningful, but leave out specific • Encouraging trade up
more dynamic; willing to change in-store about 70 percent of purchase decisions being environmental dynamics and are often
from the differences between
• Adding or increasing margin variants
behavior based on local events (e.g. a great made in the store? If the brand does not cut backward looking. Understanding and
seasonal display could turn a programmatic through the clutter, communicate why it is observing how people behave and what • Motivating multi-product routines
shoppers and consumers
shopper into an impulse shopper), caprice different, or otherwise make this situation influences them in the store provides an
(e.g. “I’ve had a rough day—I’m going treat simpler for the shopper, the shopper may well opportunity to effect change, plan for the Putting it all together
myself to something from the skin care go with another option or even abandon the future, and deliver meaningful innovation The marriage of shopper insights with in-
by Kelly Crouch and aisle”) or macro trends (e.g. penny pinching).
Outside the store, when the same segments
are consumers, nothing may have changed
How can a brand effectively address the
for the shopper.
To understand what motivates and influences
store strategy can lead to the construction
of in-store solutions that increase shopper
satisfaction while orchestrating profitable
Emily Grant in how they see brands. However, inside the
store, as shoppers, their behavior is anything
needs of the shopper?
There are a number of ways to better meet
the shopper, brands must understand the
basics of the shopper:
purchase behaviors. In our experience at
Interbrand, brands that have done this in
but static. The goal, then, for brands is shopper needs—key operational factors, like retail have seen significant gains.
• What drives the shopper to go to a store,
shopper connection. And to achieve this, in-stock position, must be solved, but on top
Biography: As Brand Analytics Director, Kelly guides the integration and on what kinds of trips to the store is
they need to leverage shopper insights and of the basics, other levers can be activated to One of our clients, Procter and Gamble,
of analytics programs and ensures insights are represented within the brand likely to be purchased?
use creativity to orchestrate in-store behavior better meet shopper needs. These tools are consistently utilizes shopper insights to
strategic and creative outputs. Kelly’s analytics expertise includes the
and drive choice toward the brand. things like: • Is the category usually a destination, create store solutions that successfully grow
design and interpretation of research for branding purposes, delivery
planned, unplanned, or impulse the objectives of their brands. Its efforts have
of retail insights, creation of business cases and decision frameworks, • Merchandising logic in the form of
Shopper insights, or an understanding of purchase and what drives that role? paid off in a number of categories, in terms
and ensuring clear links between brand and business strategy. The category principles (e.g. vertical versus
how shoppers behave in-store, is a key first of increased share and volume, and have also
American-born Kelly now lives and works in Amsterdam. horizontal shelf arrangements by brand, • What are the current purchase drivers
step to optimizing the value of brands in the helped to establish P&G as thought leader and
scent, size, etc) and barriers in-store?
retail environment. But in order to leverage a key partner to retailers.
Biography: As Senior Consultant in the Analytics group at Interbrand,
shopper insights, one must first understand • Planned adjacencies and store layout • What are the underlying associations
Emily Grant conducts research and provides strategic guidance on
the differences between consumers both within and across the categories with the category? In another example, a big-box, North
projects across a variety of sectors. She has worked on engagements
and shoppers. American retailer instantly saw category
for a number of high profile clients. • Category and brand sign-posting • What information do shoppers seek in
increases in the range of five percent in
and wayfinding the store, specifically?
Why should we make understanding the revenue, as well as units within a common
shopper a priority? • Total store planning and flow • How do shoppers select and de-select household product category in test markets,
In-store, shoppers have unique options and what are the decision after a relatively simple shelf and category
communication and information needs. hierarchies? reorganization built on shopper insights.
The retail shelf: the forward position in Yet, the store plays a major role in the They have unique habits and practices that • Multi-level communication
• How do shoppers want to interact with
the battle for consumer spending success or failure of brands. In many occur when they are shopping. Cues that In fact, because the in-store environment is
• Emotive and interactive communication, products? What interaction do they need?
The battle is on. The current environment categories, 70 percent or more of purchase attract a consumer to a brand may not be so frequently overlooked or under-examined,
such as imagery, technology, or out-of-
has not only changed the economic realities decisions are made in-store. Recessionary the same cues that cause a shopper to • How do shoppers orient themselves in the opportunity for gains, even based on
for consumers around the world, it has belt tightening only increases the number of choose a brand in the moment of purchase. the category? In the store? relatively simple solutions, can be significant.
radically shifted the mind-set of shoppers decisions that are made in-store as shoppers Extracting more value with little to no
But first, to make the right decisions with
in-store. In normal times, companies spend scrutinize every line on their list, double- With this in mind, brands must help to Note that these things should be considered incremental investment is always a good idea.
tools like these, marketers must also
a tremendous amount of time and resources checking that they’re spending wisely. With deliver a seamless shopping experience at both a category and brand level. Brands And considering the current environment,
understand shoppers. Good branding
in the development and management of this in mind, it is crucial that the in-store that meets shopper needs while delivering must carefully balance their own interests for some FMCG players and retailers, it might
professionals know how to get people into
their brands by developing identities, experience, and how brands are presented in benefits to the brand and retailer. To do this, with those of the retailers that sell their mean survival.
stores. However, in order to get a consumer
measurement tools, and communication, the environment, should be managed with at brand manufacturers must understand the products. Understanding the total category,
to make a purchase, marketers must also
including significant media spending budgets. least as much rigor as the other components dynamics of the shopping environment—how and how the brand can best perform within So, brands must get to know shoppers,
understand what happens in-store, and
Yet, these are anything but normal times. of a branding program. options are considered and choices are it, will ensure that brand marketers can not just consumers. In-store should be
structure the brand offering in a way that
made. Even if a brand has successfully caught forward their own objectives while retaining treated as an input to brand strategy. The
connects to shoppers in the environment.
When consumers feel pain in the pocket Shoppers versus consumers the interest of a consumer, the shopper’s perspective on the needs of the retailers. If store environment is a brand opportunity,
book, they react differently inside the store. What is the difference between consumers needs must still be met in order to convert brands can deliver performance in-store for not just a point of tactical operations.
How can brands understand what
Unfortunately, it is this in-store decision and shoppers? Essentially, they are the attachment into purchase. Imagine a both their brand and the retailer’s category, As the competition for share and loyalty
shoppers really need?
moment that is chronically misunderstood same people, but they operate in two consumer who has decided they want to partnerships with retailers and the ability for continues to get more intense, brands that
To understand the best use of the tools
and under-resourced. Many brand owners different environments, subject to different purchase a product, Brand X. They have seen brands to influence the store environment manage the shopper aspect of their brand
mentioned above, the first objective must
have mistakenly treated the in-store environmental influences, and possessing an ad and decided this is something they will become stronger. put themselves in a position to differentiate
be to understand the shopper. We must
experience as yet another operational different needs. want to buy. This consumer travels to their and create meaningful value as a brand and
investigate consumers in the role as shoppers
function. Major decisions are made with favorite store, goes inside, and becomes Incorporating strategic objectives of retailer partner.
in order for brands to unlock the mystery
little connection to brand and marketing Consumers are the overall targets for a shopper. the brand
of the store and orchestrate valuable
management, with conversations rarely brands. Aspects like location, demographics, In addition to understanding shoppers,
moving beyond the fundamentals of in-stock and the habits and practices of their life This consumer/shopper wants Brand X, but brands must also be clear about what they
position and promotions. Even if they wanted often segment them. The goal of brands is not sure where to find it in the store. This want to achieve with shoppers. Knowing the
Shoppers and shopper behavior must
to extract more value from the shelf, many is to form bonds with target segments of alone may turn them away. If they do locate priority strategy for the brand and category is
be studied. Marketers must follow them,
brand owners lack the insights and tools to consumers—to touch them where they the section, they are presented with more the second leg to unlocking value in the store
observe them, and ask questions. This
do anything about it. live, work, and play. options than they’d imagined. They can environment. Strategies for the brand might
investigation can’t just happen in the home
choose Brand X, or Brand Y, or Brand Z, or be things like:
08 Best Retail Brands 2009 Best Retail Brands 2009 09