Post on 18-Dec-2014
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For MRM Paris @
Executive Summary, 31/03/2011
« Retail’s Big Show »
What’s the RBS? - Annual convention and expo in NY, 09.-12.01.2011 - Held for the 100th time this year, since 1911 - 22.000 retail professionals from 82 countries - Largest delegations from Brazil, Canada, France, UK and
Mexico - Organized by the NRF – the National Retail Federation - The world’s largest retail organisation
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Key-Topics
1. Shopper Centric Retailing 2. Customer Experience 3. The Mobile Shopper 4. Multichannel 5. Sector Challenges
01. Chapitre
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Shopper Centric Retailing
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Why we talk about this
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Once upon a time the BRANDS were king in the shops and it was THEM driving the customers in the shops.
It was a manufactureres world.
Why we talk about this In the 80s/90s a power shift took place: retail consolidation for growth, discounting as new phenomenon, new power in negotiations with the producers, development of own promotions, then own brands and finally own relationships with the customers
Why we talk about this Today the manufactureres and the dealers are in a conflict against each other and fight for the relationship with the poor consumer
What is SCR? - Focus on the shopper – not on the conflict between
manufacturer and retailer - Joined forces, combined capabilities, collaboration! - share learnings, create single basis and team up for
activation
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What is SCR?
« Given how savy today’s shoppers are and their shifting priorities, it is essential for retailers and manufacturers to work together to intelligently deliver targeteg solutions! »
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What is SCR? Shopper Insights
Right products Loyalty cards or credit card info
= retailers input
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Activation
Promotion Merchandising Marketing Operations
= supplier collaboration
Relevance
Power Loyalty Sales Profit
+! =!
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Tesco plc (LSE: TSCO) is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom.[4] It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart).[5][6]
It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand.[7][8][9]
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Case: Tesco
Case: Tesco - The Tesco card: « What scares me is that you know more
about my customers after three months than I know after 30 years », says a manufacturer
- Who are my shoppers, where when at what do they buy? - Sharing the data, knowledge and technology with the
suppliers to develop relevant promotions together
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Target Corporation (simply known as Target) is an American retailing company that was founded in Minneapolis, Minnesota in 1902.
Target is the fourth largest discount retailer in the United States, behind Walmart.[6][7] The company is ranked at number 30 on the Fortune 500 as of 2010. On January 13, 2011, Target announced its expansion into Canada.
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Case: Target
Case: Target - Target is a discounter « expect more, pay less » - Call their customers « guests » (ex. Contagious
Magazin: « people – formally known as consumers ») - Wanna know their guests und understand their diversity - What influences their shopping behaviour (e.g. repeated
purchase) - And develop tangible and meaningsful actions for their
teams to execute - What counts is their wants and needs, building guest
categories to drive relevancy in offers, e.g. healthy living (implicarion on products, in what locations, etc.)
Macy's is a U.S. chain of mid-to-high range department stores in New York. In addition to its New York flagship store, the company has designated additional regional flagships in several other major urban centers and as of January 30, 2010 operates a total of 800 stores in the United States.[1] In addition, Macy's operates eSpot ZoomShops kiosks in over 300 store locations, selling consumer electronics.
The company produces the annual Macy's Thanksgiving Day Parade, a noted parade which has been held in New York City annually since 1924. The company also sponsors the city's annual Fourth of July fireworks display, beginning in 1976.
The chain competes with Belk, Nordstrom, Dillard's, Sears, J. C. Penney and Kohl's.
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Case: Macy’s
Case: Macy’s - Discussion about the marketing departments taking more
responsibilities for its own technologies - Integration of « Marketing Technologists » in the
marketing teams - Objective: gain a 360 degree view of the consumer - Owning the insights - Handling and profiling of own database - Replacing 10 different mailings with 30.000 versions of
one single direct mail piece, in order to be more relevant
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6 Keys to Success 1. Right objectives – it’s not about monetizing data but creating
more targeted approach 2. Single shopper view – retailer and manufacturere, same data,
same shopper, same target 3. Insights AND activation – build relevant promotions based on
the insights 4. Executive commitment – this is not bottom up 5. Organizational change 6. Effective collaboration
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Consumer Experience
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Start Consumer Centric - Shopper Centric Retail is the strong focus of this years RBS - Of course also the development of a consumer
experience in retail starts here - What do the consumers want?
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Need 1: Value
It is not the price only >>>
Make consumers believe that the product is worth more than they paid for.
Need 2: Discovery Discovery = creating wow experiences for consumers ready to buy expensive gadgets like the iPad or the Kindle >>>
There is fashion in everything. There is fashion in tyres. There is fashion in refridgerators.
Mood in Food
Supermarkets are amongst the first to having understood how a recreation of their POS will influence their positioning, allow them to fight discount and insist on higher prices
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There are designer melons
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And couture cucumbers
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Playing with colors and ressources
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Let’s them be true to their brand
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Return to craft and tell stories
And puts the product in the focus
Mood in Food
And there are untraditional retail models
Carrefour S.A. (Euronext: CA) (French pronunciation: [ka fu ]) is a French international hypermarket chain. Headquartered in Levallois-Perret, France,[2] Carrefour is the one of the largest hypermarket chains in the world (1395 hypermarkets at the end of 2009, this is nearly a half of the quantity of US-located Wal-Mart hypermarkets),[citation needed] the second largest retail group in the world in terms of revenue and third largest in profit after Wal-Mart and Tesco. Carrefour operates mainly in Europe, Argentina, Brazil, China, Colombia and in the Dominican Republic, but also has shops in North Africa and other parts of Asia, with most stores being of smaller size than hypermarket or even supermarket. Carrefour means "crossroads" in French.
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Case: Carrefour
Case: Carrefour - Hypermarkets are losing share to small shops and the
internet, better prices and better assortment - How to make the hypermarket visit an experience? - What differentiates the visit versus the internet is the
senses, look/feel/touch need to play a key role in the creation of an offline experience
- Introducing baby sitting, hair cut and technology (e.g. shopping consultants)
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Idea: Partnerships
Guideline: Do what you can do best and involve others to to things you don’t know doing.
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supermarkets invite chefs to cook for their clients
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Carrefour does entertainment corners with Virgin
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JCPenny gains ground on cosmetics with Sephora
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Wallmart on beauty with L’Oréal
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Metro Group developing shelf vision 2011 with Danone
Building a great customer experience across time and touchpoints
03. Chapitre
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The 8 C’s model of « McMillan/Doolittle – The Retail Experts »:
Clarity
8 C’s Ventes Connection
Convenience Choice
Control
Consistency
About what you stand for, the right positioning
Clarity
Whole Foods‘ customers are passionate ambassadors and the retailers’ well-defined positioning, helps them stay relevant in the marketplace. The brand stands for something that’s of high value to their targeted customer and this ensures lasting value.
the right location and channels, available anytime and anywhere according to their needs
Convenience
Walgreens get this right by being close to their customers anytime, anyplace. They’re available whenever, wherever, and however, through all channels, including their drive through drugstores.
the right selection, manage assortment according to needs
Choice
Crate&Barrel, with their great merchandise selection and their appealing presentation of that merchandise, check the choice box. At the same time their pricing and value is always appropriately communicated – making getting ‘choice’ right, look effortless. It’s fantasy of ownership delivered.
the right design and layout, leverage every touchpoint to stay engaged with your consumers
Communications
Covering all the bases and touching all the senses – Williams Sonoma gets full marks for easy store navigation, great signing at multiple levels and great store design. Furthermore, their clear product signing means customers are clearly communicated with.
The right people/team to deliver on the promise of the brand
Cast
The Container Store hires and develops brand zealots, who live the lifestyle and love the product. They invest heavily in training and hire, and coach their team to deliver to the highest of customer expectations.
It is the CONSUMERS who need to be able to be in control of relationship and process
Control
Giving customers the option to have their meal made to order, customized online and picked up in store is a key strength of Chipotle.
across time, place and channel
Consistency
Using exceptional precision across all functions and channels of customer experience and organization, J.Crew gets consistency right.
Maintaining the engagement after the transaction to build a lifetime experience and to start the right relationship
Connection
Sephora uses events, mobile apps, and social networks to stay front of mind with their customers.
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The Mobile Shopper
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Some Data
mCommerce in the US is at 2,2 Mrd USD in 2010
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Some Data
Driven by smartphone coverage, currently at ca. 50%
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Some Data
In contrary only 4,8% of retailers have mobile shopping sites
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Some Data
73% of mobile shoppers favour using their smartphone to handle simple tasks in stores
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Some Data
Versus only 15% who prefer the interaction with an employee
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Some Data
Reason for not mShopping: limited awareness of what my phone can do, 300k apps at Apple App Store plus mobile sites …
What do they do? - Looking up store address - Reading reviews - Sharing product photos - Tweeting prices - Using virtual shopping tools (AR, etc.) to visualize product - Whatch their bid on eBay - Download online coupons on mobile for instore use - Check instore availability - Use gift guides - Geolocalisation (like 4square) - Find support
Connecting Worlds Online
#1 source of information
Consumers become more informed than the sales person
B&M
Big influencer No consumer knowledge whatsoever
<! >!
= Knowledge transfer
POS consultant
The path to purchase is dead. Now there are many.
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One Result:
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Users carry around information
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and coupons
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They « shop on the spot »
And can have eAccess when and where they want it
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Multichannel
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More than Online - For most retailers « multichannel » means the
opening of their online shop - In fact it should be understood as the ability to
follow the consumers - Examples could be:
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remote supermarket trucks in Thailand
Drive through supermarkets
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Drive through supermarkets
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Tescos in Pubs
Amazon fresh
Metro AG (FWB: MEO) is a diversified retail and wholesale/cash and carry group based in Düsseldorf, Germany. It has the largest market share in its home market, and is one of the most globalised retail and wholesale corporations. It is the 3rd largest retailer in the world according to Deloitte [2] and Reuters[3]. In English it often refers to itself as Metro Group. It was established in 1964 by Otto Beisheim.
The company operates the following sales divisions: Metro and Makro Cash and Carry Real: A hypermarket operator. 265 stores in Germany and 34 elsewhere as of early 2005. Media Markt and Saturn: consumer electronics company, Galeria Kaufhof: A department store chain. As of 2007 it has added the former Wal-Mart Germany stores to the Real chain.
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Case: Metro
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« standard » multi-channel: mobile, online, TV, stores
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FUTURE STORE: « experience the future of retail today »
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REAL DRIVE: order online and pick it up, warehouse, McDrive like
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Challenges
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Retailers today are … - Multi-Store - Multi-Channel - Multi-Geography - Multi Challenged >>>
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Circumstances - Shifting demographics, aging consumers - Globalization and Saturated markets - Sustainability - Corporate responsibility - Private Label - And the fast pace of changing technology >>>
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The virtual sneaker wall by adidas and Intel
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LuminAR bulb: light bulb equipped with camera, projector and wifi. You show it the product you’re interested in and it will supply information, reviews, specs, prices, manuals or offer to live chat with expert
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Social Shopping Lists and Instore Guidance
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Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Cloud computing can be compared to the supply of electricity and gas, or the provision of telephone, television and postal services. All of these services are presented to the users in a simple way that is easy to understand without the users needing to know how the services are provided.
Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Predictive modelling is used extensively in analytical customer relationship management and data mining to produce customer-level models that describe the likelihood that a customer will take a particular action. The actions are usually sales, marketing and customer retention related.
Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Citi Tap and Pay helps you make payments for purchases by simply tapping your Tap and Pay Nokia mobile phone at the payment counter.
Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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A radius around a store or point location. When the location-aware device of a location-based service (LBS) user enters or exits a geo-fence, the device receives a generated notification. This notification might contain information about the location of the device. The geofence notice might be sent to a mobile telephone or an email account.
Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Search engine optimization (SEO) is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.
Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Technology - Cloud computing - Predictive modeling - Tap to pay - Geo fencing - SEO - Mobile - Social networking >>>
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Social Networking - technology driven social projects, based on listening =
new responsibility for brands today, aggregation and moderation
- This is where marketing-technologists play a role in consumer-driven messaging
- It is the brands job to empower the consumer to do what they believe in
- Managing this is a full day job – « you have to be out there and be visible! »
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Dell
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Starbucks
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Pepsi
Taking SM to change your instore experience
- How can I make the poeple stay in the store longer? - How can I potentially get them to shop? - How can I create a better experience, less stressful? - Through geo-localisation - Tagging products - Closed WIFI for additional info access - Sharing, forum, discussions - Instore kiosques, push applications via media server
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Coca Cola Village: FB in an offline Event
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Auchan: Facebook Corners in Supermarkets
Leaders for 2020 are … - The ones who transform challenges into opportunities - Good to their people and consumers by taking care of
them - Engendering their poeple’sand customers’ loyalty - Create an environment that leads to the kind of human
interaction that consumers will respond to and retailers will benefit from
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Merci. Kai Platschke Chief Strategy Officer, MRM Paris Chief Digital Officer, McCann Worlgroup France Twitter: @derkaip