How to build your Retail Marketing Team ........

1. PESHWA ACHARYA
 MARKETING CHIEF
 RELIANCE RETAIL
 We modelled the Reliance Retail Marketing Department on TESCO lines ..
 How to Set up a robust Retail Marketing Department

3. •Tesco UK core business (Extras,
Superstores, Metro, Express)
•Tesco International
•Non Food (clothing)
•Retailing Services (Dot.com,
Tesco Personal Finance,
Telecoms)
Tesco has a 4 point strategy:

4. Core Purpose
 To create value for customers
to earn their lifetime loyalty
Our Values
 No-one tries harder for customers
 Treat people how we like to be
treated

5. Every Little Helps is customer speak for our values and is a
broad summation of Tesco at it’s best
The expression of our Values
An Every Little Helps Shopping Trip
and
A Great Place To Work
Through
Which are
No one tries harder for customers
Treat people how we like to be treated
The way we work
and
The way we behave
Which means we deliver
is
Shopping Trip
•The aisles are clear
•I can get what I want
•The prices are good
•I don’t queue
•The staff are great
No one tries harder
for customers
The way we work
•We deliver consistently everyday
•We aim to get it right first time
•We make our jobs easier to do
•We know how vital our jobs are
•We always save time and money
Better for customers, Simpler
for staff and cheaper for Tesco
A Great Place To
Work
•To be treated with respect
•A manager who helps me
•An interesting job
•An Opportunity to get on
Treat people how we like to
be treated
The way we behave
Living Service Expressions
What part does the Marketing Department play?

6. Drive trade
through
Every Little Helps
The Tesco Marketing Philosophy
Understand customers better than anyone
Delivering the
Every Little
Helps
shopping trip
Drive trade
through
Every Little
Helps
Saying
‘Thank
you’
Marketing
Making
Tesco
available

7. Insight Unit - the role of Customer Understanding
Anticipating customer needs
Championing the customer
voice in the business
Guide and measure the
business

8. Insight Unit - Who we are what what we do
 Meet customer needs by matching store format to
locationSite Research
Market Research
Insight Analysis
Strategic Insight
Customer
Question Time
 Monitor and track the health of the business, identify
changing customer needs, understand current customer
issues, and ensure our initiatives are right for customers
 Guide business strategy through our insight on
customers, property and our people.
 Analyse how customers are behaving and how we
are performing as a business.
 Research customer lifestyles and the shopping
experiences in our stores to ensure the business
reflects customer needs.
Combined analytical experience = the full story = competitive advantage
The Power of Joined Up Thinking!

9. Insight Unit - Our Key Outputs
 A small selection of Insight reports that illustrate the power of
joined up thinking
 World class insight is at the heart of the business
UK Business
Expansion
Report
Customer
Spotlight
Blue Books
Brand Review
Customer
Question Times
People
Spotlight and
People
Review
Express and
Non Food Brand
Reviews
Switching
Analysis
Sales Forecasts
for new stores
New space
development
strategy
Trade Reports
Competitor
Analysis

10. Insight Unit
 Understanding customers better than anyone is the basis of the
Marketing Department.
 There are 3 broad reasons why we seek to understand
customers
 Anticipating customer needs
 Championing the customer voice in the business
 Guiding and measuring the business
 The Insight Unit is made up of five key teams - Site Research,
Market Research, Strategic Insight, Insight Analysis and
Customer Question Times (CQT)
 Joined up thinking across Insight enables us to understand the
full story and gain competitive advantage
 Our key outputs ensure world class insight is at the heart of the
business

11. Stores Marketing
Core Purpose
 To preview & review all stores on the development programme, to
ensure the best offer for the local customer is delivered in the
individual stores
 To flex the existing levers to tailor the store for the local customers &
continue to develop new levers with the relevant owners
 To work with local marketing to turn around under-performing stores
& assist in the understanding of reasons for poor performance
 To help the business to prioritise which elements of the functional
Every Little Helps shopping trip needs to be addressed for
customers
 To bring customer understanding & shape cross functional projects
which are focused on the agreed business priorities that will make
the shopping trip easier for customers (or impact on it)

12. Stores Marketing
Key Outputs
 Stores Marketing Group review papers which ensure the customer is
considered in the property planning process. The papers cover:-
 Agreement to Food / Non Food Square Footage
 Solutions to key Customer issues highlighted from
quantitative (Oxford Research) & qualitative (CQT) research
 Agreement to include food counters & cafe – Deli, Fish, Meat,
Salad, Pizza, Chicken, Olives, Takeaway
 Agreement to include non food services – Photolab, Pharmacy,
Opticians, Jewellery Counter
 Agreement to include other Services – Car Park Controls, Bus
Service
 Agreement to include additional range requirements e.g. Ethnic

13. Local Marketing
Core Purpose
To launch new stores in all formats to achieve sales targets
To market our refitted and extended stores
To defend against competitor new stores / extensions / conversions
that are forecast to impact sales at any of our stores
To turn round sales in under-performing stores and assist in the
understanding of reasons for poor performance
To test trade driving tactics at a local level before they get
implemented by the national team e.g trial of various petrol promotions
To champion trade initiatives and brand building across specific
groups of stores: - e.g London advertising campaign in 2004

14. Local Marketing
Key Outputs
Highly targeted marketing campaigns that are made local by use of customer
insight, Clubcard data and local knowledge. Local will use the same tactics as
national but on a micro level - these include: -
• Mailings to Clubcard / non -Clubcard customers
• Coupons at till
• Advertising - press, radio, outdoor, other media (e.g. adbikes, blimps)
• Petrol promotions / Clubcard points promotions
• PR and events (e.g. launch events, celebrity chef events, community
sponsorship / donations)
• In store Clubcard sign up
• Store specific non-food offers
• POS to communicate store changes
• Leafleting campaigns
Local deliver over 350 bespoke marketing campaigns per year

15. Local Marketing - Key Takeouts
 Local marketing plan and deliver campaigns for all store launches
from new stores & extensions to impacts and underperformers
 All campaigns are are highly targeted and relevant to the local
population. They are built using a wide range of customer insight,
Clubcard data and local knowledge
 Local use the full tool box of national marketing tactics at a local level

16. Price Team - Core Purpose
 The role of the Price Team is as follows: -
 Set strategy and direction for company on price
 Monitor and report against price policy
 Help to communicate our great price position to customers
 Deliver price insight to the business
 The Price Team has several key activities: -
 Price Basket
 Internal hierarchies
 Comparatives
 Ad-hoc checks

17. Price: Key processes
 Price Basket
 Weekly checks on over 20,000 lines against Asda, JS, Morrisons
 Reporting to Commercial and wider business
 Price Checker and Price Claims
 Internal Hierarchies
 Ensuring bigger packs give better value, and Tesco own label is
cheaper than branded equivalent
 Comparatives
 Shopping 100s of products to make in-store claims highlighting that
we (a) match Asda and (b) are cheaper than other competitors
 Pricing have the accountability for maintaining our price position versus
competitors and ensuring the business gets cheaper for customers

18. Promotions Team - Core Purpose
 The role of the Promotions Team is to
 Set strategy and direction for company on promotions
 Monitor and report on Tesco promotions against promotion
policy
 Monitor and report on competitor promotional activity
 Respond to short term competitor activity as required
 The promotions policy is driven by the Helping You Spend Less
customer plan objectives
 Even fewer, even better promotions
 Neutralise Morrisons on feature space promotions

19. Promotions: Key processes
 Internal tracking and reporting: Monitor Tesco promotional activity against
agreed KPIs and key measures
 Feature space conformance tracking: Track Tesco store conformance with
communicated feature space plans
 Competitor tracking and reporting: Monitor competitor promotional activity
through store audits
 Lidl half price: Track Lidl half price activity and mobilise business to respond
 Seasonal event tracking: Event specific promotions reporting on major events
eg Christmas and Easter
 The promotions team are responsible for setting promotional strategy
and tracking Tesco promotions relative to this
 Promotional strategy is driven by the customer plan objectives
 Even fewer, even better promotions
 Neutralise Morrisons on feature space promotions

20. Trade Planning - Core Purpose
 Trade Planning’s core purpose is to set the trading priorities for the
business, which means,
 Right for Customers
 Simple for stores
 Delivers ‘like for like’ growth
 Supports the Every Little Helps Shopping trip
 Trade planning does 3 interrelated things:
Manage the
52 wk Trade Plan
Review Trade Forecast Sales

21. Trade Planning: Key Processes
 TPG (Trade Planning Group) - periodic
 WL5 directors from Marketing, Supply Chain, Retail and Commercial,
facilitated by trade planning who meet every period to:
 Review trade and learning's for the period just completed
 Agree the trade plan going forward and resolve any issues
 TPO (Trade Planning Operations) - weekly
 Cross functional group (trade planning, retail, supply chain) and managers
of small events (less than £10m), e.g. Pancake Day, St Patrick’s Day,
Ramadan
 Brand Comms - weekly
 Plan the alignment of TV, Press, Tesco TV, Publishing, Price News and
Point of Sale
 Non Food Trade Planning and Great Seasonal Events
 Manage Seasonal space (power aisle 1 and grocery seasonal aisle)
 Great Seasonal Event Managers manage the events > £10m, e.g. Mothers’
Day, Halloween

22. Feature Space Management - what is it?
 Feature Space and Seasonal Space is the most prominent space in the
store, with the highest customer footfall.
 Feature Space = Promotional ends and OFDs (Off Fixture
Displays). Usually promotions.
 Seasonal Space = Power aisle 1 and grocery seasonal aisle.
Usually seasonal ranges.

23. Feature Space: Core Purpose
 Core purpose is to make best use of feature space, which
means:
 Right for Customers
 Seasonally relevant
 Supports Trade Plan activity
 A good mix of product types for customers
 Fit promotion policy (e.g. minimum discount 20%)
 Simple for stores
 Simple to put on sale and exit
 Products fit space efficiently
 Delivers ‘like for like’ growth
 Each end has a hurdle rate, depending on its location
and distribution
 Supports Every Little Helps Shopping trip
 Especially “Aisles are clear” and “I can get what I want”

24. Advertising - Core Purpose
Primary Objectives
 To project our brand values through an emotional connection with
our customers.
 To build brand trust and loyalty.
Secondary Objectives
 To communicate our strongest trade drivers and promotions to
encourage customers to come into our stores.

25. Advertising - Key Outputs
 TV & Press Every Little Helps Brand Campaign
 The Every Little Helps campaign is used to make people like their Tesco
more
 The campaign revels in the small things that Tesco does e.g. bag
packing, 24 hour opening, low prices as evidence of our philosophy
 The advertising is a direct, down to earth conversation between Tesco
and the customer (instead of an advertising mechanic that sits apart
from the brand)
 Cherokee TV Campaign
 Bi annual TV campaign that supports the Cherokee range of clothing at
Tesco
 Gives Tesco clothing credibility versus the likes of Next and Gap
 ‘Design by Cherokee. Price by Tesco’ caption (strap line) emphasises
the strengths of the two brands

26. Advertising - Key Outputs continued
 Trade Driving TV & Press
 Supports the key trade drivers highlighted by the trade plan
 The ads are simple straightforward visual of featured product and lets
the offer speak for itself, whilst being clearly branded as Tesco.
 Press is used to support offers when a quick turnaround is needed –
can be done in days versus weeks for TV
 Supplier Funded Advertising
 Paid for by the supplier but we ensure that they are simple, honest,
transparent and are clearly branded Tesco & the media selected targets
our relevant customers
 Strict criteria ensure only the strongest prices and promotions are
advertised

27. Every Little Helps TV Campaign

28. Cherokee Advertising (Autumn/ Winter 05)

29. Publishing - Core Purpose
 The role of Publishing is to support and build a positive image of
the company with customers.
 We do this in Two principle ways;
 Development of an emotional connection with our customers,
showing them that we understand them and are on their side.
 Communicating our product ranges and great prices
to-
 Drive our price image with price sensitive customers,
 Increase and drive footfall into non-food
 Generate awareness in upmarket customers that we have great
quality and range at market leading prices

30. Publishing - Key Outputs
 Magazine
 Written to compete with new-stand publications
 4m readers 3rd largest circulation magazine in the UK- bigger than
all the leading women’s glossies added together
 Average retention time 14 days, average reading time 42 minutes -
both highest in the industry compared to the average of 28
minutes for other publications. Although the magazine is not used
as a hard marketing tool, research tells us that 50% of readers will
buy a food item, 29% a non-food item and 27% a clothing item - if
it is featured.
 Price News - leafleting
 Protects existing customer base and encourages defection from
competitors
 Standard version influences price image covers mainly food and
household aimed at competitor conflict areas - 4m circulation
 Non-food version aims to drive footfall and price image - aimed at
extra store catchment areas - 4m circulation

31. Publishing - Key Outputs
 Tesco TV
 Provides “Talking Tesco” content to the revenue generation inspired
In-store TV service. Every Little Helps information, recipes, hints,
tips and product information.
 Store Finder
 Map booklet showing all of the stores in the UK with accurate
directions how to find them - 1m circulation
 Internet
 Price check - compares our prices with our leading competitors
 Today at Tesco what’s key in store this week
 Store locator services- Search for the right store for you, get
directions to your local store and see what ranges, services and
opening hours it has.
 Internet magazine proposition being developed

32. “Tesco send me a
Thank you”
“I spend my
Vouchers”
5 Club
Mailings
Statement CaT
“Tesco give me coupons for
things I already buy or they think
I’d like to buy”
“I collect Clubcard points as
I spend in Tesco”
Extended Brand - TPF,
Telecoms, Non Food
Shopping in store or
on dot.com
Points
Partners
e.g.
Powergen
CLUBCARD
The Virtuous Circle
Clubcard
Statement
Deals x4In Store
Extended
Brand Deals
Online for
shopping and
deals

33. Trade Driving
Club Mailings
CLUBCARD
Who we are what what we do
Direct Mail
Operations
Customer
Management
Targeted mailing - touching over 12m
customers, with over 8m variations
Introducing customers to Clubcard
and helping them get the most from it
Permission based mailings -
including specialist advice and
relevant coupons
Timely, targeted offers to Clubcard
customers
Making Clubcard more rewarding
through the extended brand
Measuring and supporting Clubcard
use in the business
Clubcard Statement
Managing Penetration
Retail Services
Coupon at Till
Welcome Pack
A new system which will offer better data and business
processes to help the business to grow customer loyalty
Freetime Deals Service where customers can get x4
value from their Clubcard Vouchers
Slippage and Gone Aways
Strategic Mailings to boost trade
Timely mailing to retain customers
with declining loyalty
Thank you/brand builders
Raising the profile of CC

34. CLUBCARD - Key Take Outs
 Clubcard continues to have fantastic success in the UK
 Over 12 million customers currently receive a Clubcard Statement
 With approximately 8 million unique variations - each time
 Clubcard penetration is currently 73%
 Saying ‘Thank you’ drives trade
 Most customers see points as more valuable than money
 Club mailings grow the breadth and depth of customer loyalty
 Coupons are tightly targeted
 You buy a lot of sausages? You get a sausage coupon
 Coupons at till target a new set of customers every two weeks
 It acts as an incentive - but secondary to reward
 Clubcard rewards customers across the entire Tesco brand
 From your groceries to broadband connection!

35. Customer Plan - Core Purpose
 The Customer Plan is a group of year-long projects which must
 Drive our ‘like for like’ sales
 Deliver a step change in the Every Little Helps shopping trip
 Need more than one function + dedicated resource to deliver them
 They are the Number 1 priority for the business each year and
feed into the Customer quadrant of the Corporate Steering
Wheel
 Each project has board-level support
 The Customer Plan embodies our philosophy that customers will
tell us our direction for the year ahead
 It supports our core purpose of creating value for customers to
earn their lifetime loyalty
 This keeps us ahead of the competition

36. Customer Plan - Key processes
Phase One
Identify and agree key
customer
opportunities
Phase Two
Develop solutions to
key opportunities
Phase Three
Implement Monitor
Review
BRAND REVIEW
Research/Report
February - September
Planning
October - February
Launch Customer Plan
March
Project brief Writing
October - December
Project Solutions
December - February
Examples of projects:
•Fresh & Full Meat & Poultry
•Strengthening our appeal to ethnic customers
•Helping you live more healthily

37. Who we are
Vacancy
Insight & Site Research
Acting Director of Marketing - UK
Ian Crook (also Trade Planning, Advertising & Customer Plan)
clubcard & Services
Stores & Non Food
Price, Promotions &
Publishing/POS
Clubcard Scheme, Mailings, Clubcard Deals
Service Initiatives
New Stores, Local Marketing, Store Marketing Express Marketing, Non
Food Marketing
Price News (Tabs), Price Basket, Price/Promotions Planning
Process Management,
Site Research, Customer & People Insight, Market Research, CQTs,
Customer Plan Development
Marketing Finance
Personnel Manager,
Marketing
Personnel
Finance

38. Peshwa Acharya
peshwa@thinkasconsumer.com
+91 9867641038