Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with...

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Transcript of Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with...

Page 1: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May
Page 2: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

Dealing with crisis.

Spotting the red thread of our near future.

PIM Marketing Trend Report 2010

May 25th , 2010

Price per report 95,- euro incl. VAT

Free copy for PIM Members

By Peter Gouw

Publisher: Platform Innovatie in Marketing

Editors:

Egbert Jan van Bel

Prof. dr. Rudy Moeneart

Prof. dr. Henry Robben

Hans Molenaar

Arend-Jan Nijhuis

Jan Havermans

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No detailed or hot lists

No interviews of visionaries

No good feeling story

What’s not…

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Fact based realism

3x Trends 1x Case

Setting the Scene

Market

Marketing

Burning / freezing

Joint translation of trends

into a Business Case

With help from many

Trend Watching friends!

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Who offers Value for money

to their customers?

5SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Give me a reason to

buy!

6

Apple Tablet

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Vague marketing goals

7

Old school marketing

Reforming marketing

Beautiful crisis

When is the crisis over?

Marketing vision 2010

Customers power

Crisis challenge

Outperform competition

Marketing 101

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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The same customer has utterly different

profiles for different needs.

NO WHAT

NO €OMPROMISE

Winning Marketing Strategy 2010

8SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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The future is always too late

Is progress always too late or too early?

TOO EARLY

Added value

Innovation

New applications

Sense for trends & timing

Old vs. new school marketing

Trail or research?

JUST DO IT (customer interaction)

Crisis is Greek for CHOICE (they have to make some bold ones!!).

We are now at our best!

Egbert Jan van Bel

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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‘By gones’ are ‘by gones’

Learn from the past

Tapping the right source

Extract trend knowledge

Fact based

Translate (CUSTOMER & YOU)

Real customer needs oriented

Big can be good

Strong is always good

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Huge crisis

£¥€$ 4x > World War II

‘Outperforming’ all other trends

Will stay dominate in 2010

Finding the Red Thread

Focus – Make Choices

Result of you!

Multiply

&

FUN

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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The current crisis is

our own Real Life Soap

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Big & small in trouble

Will you be next?

Why not?

Sense of urgency trends

There will always be crises

Huge coaching responsibility

Opportunities 2010

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0 10 20 30 40

> -10%

-10 - 0%

0%

0 - 10%

>10%

Moenaert, Robben & Gouw

Growth

level

% of

companies

2009/2010

vs. 2008

king features syndicate Mike Smith

Even banks

Cash is King

Private funding

Investment – ‘sit on it’

30% households feel the crisis

70% households not

>50% companies -10% or more

sales loss

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Emotional (over)reactions

Why so sensitive?

Hard facts

Willingness to buy

‘Of course’ better than 2009

Follow which

leader?

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

-80

-60

-40

-20

0

20

40

Jan 2000

Jul 2000

Jan 2001

Jul 2001

Jan 2002

Jul 2002

Jan 2003

Jul 2003

Jan 2004

Jul 2004

Jan 2005

Jul 2005

Jan 2006

Jul 2006

Jan 2007

Jul 2007

Jan 2008

Jul 2008

Jan 2009

Jul 2009

Jan 2010

Jul 2010

Consumer Key Indicators2000 - 2010

Consumer Confidence Economic Climate Willingness to Buy

Consumer Confidence forecast Economic Climate forecast Willingness to Buy forecast

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Manufacturer Confidence2000 - 2010

Manufacturer Confidence Manufacturer Confidence mutation i.c.w. 1 year earlier

Manufacturer Confidence forecast Manufacturer Confidence mutation i.c.w. 1 year earlier forecast

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0

20

40

60

80

100

120

140

160

2006-1 2006-27 2007-1 2007-27 2008-1 2008-27 2009-01 2009-27 2010-01 2010-27

Oil (North Sea Brent) dollar per barrel 2006 - 2010

Oil forecast Oil (North Sea Brent) dollar per barrel

15DNB – CBS

Oilnergy – GfK

Unemployment & Oil

Euro – Dollar – Pound

Greece + Spain + …

Total American Debt

= 57 Trillion

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2006-1 2006-27 2007-1 2007-27 2008-1 2008-27 2009-01 2009-27 2010-01 2010-27

Dollar versus Euro2006 - 2010

Koers Dollar-Euro Koers Dollar-Euro (high) Koers Dollar-Euro (low)

0

1

2

3

4

5

6

7

8

Jan 2000

Jul 2000

Jan 2001

Jul 2001

Jan 2002

Jul 2002

Jan 2003

Jul 2003

Jan 2004

Jul 2004

Jan 2005

Jul 2005

Jan 2006

Jul 2006

Jan 2007

Jul 2007

Jan 2008

Jul 2008

Jan 2009

Jul 2009

Jan 2010

Jul 2010

Unemployment Rate2000 - 2010

Unemployment rate Unemployment rate forecast

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Square root development

2007 2008 2009 2010

After shock effects

Investing in the economy?

Lack of money!

Just survive good enough?

Mediocrity

Break the pattern, dare

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

W 1 2006 W 27 2006 W 1 2007 W 27 2007 W 1 2008 W 27 2008 W 1 2009 W 27 2009 W 1 2010 W 27 2010

Supermarket SalesAldi / Lidl (2006 - 2010)

Aldi / Lidl Aldi / Lidl forecast

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

W 1 2006 W 27 2006 W 1 2007 W 27 2007 W 1 2008 W 27 2008 W 1 2009 W 27 2009 W 1 2010 W 27 2010

Supermarket SalesTotal Market (2006 - 2010)

Total supermarkets Total supermarkets forecast

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

W 1 2006 W 27 2006 W 1 2007 W 27 2007 W 1 2008 W 27 2008 W 1 2009 W 27 2009 W 1 2010 W 27 2010

Supermarket SalesPrivate Label (2006 - 2010)

Private Label Private Label forecast

17GfK

Learn from other markets

FMCG +3% 2010: +1-1,5%

Discounters +2,5%

Private Label +3%

A-Brands -1%

Is cheaper BETTER?

NOT HAPPY: TAKE ACTION

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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INDUSTRY OVERVIEW

Will grow in 2010 Feel pressure in 2010

1. Chemicals 1. Agriculture

2. FMCG 2. Automotive, transport & storage

3. Health care 3. Banks & Insurance

4. Military 4. Culture, art and entertainment

5. Minerals, natural resources 5. Housing and building construction

6. Native tourism 6. Out-of-Home sector (incl. conventions)

7. Online shopping 7. Print media

8. Pharmacy 8. Ministry of Finance

9. Road construction 9. Service and consultancy

10. Software (gaming, e-Learning) 10. Travelling (business), foreign tourism

ZZP pain

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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255

19

215

97

120

5

116

35

116

64

108

33

76

10

Financial crisis:

value in billion 2007 vs. 2009

Bloomberg

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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We all make mistakes

Construction companies

Sales

Workforce

Dumping competitors

Commissioners risk

Road construction

Think ahead (2012)

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Regulations

Model citizen – companies

(Joop Goos - VVN)

Cradle to cradle

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Moenaert, Robben & Gouw

0% 10% 20% 30% 40% 50%

1st half of 2010

2nd half of 2010

1st half of 2011

2nd half of 2011

2012

2013

2014

After 2015

More than 50% of the managers think that

by the end of 2010 the crisis will be over.

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Which processes require the most change?

CRM change focus grows from 41% in 2007 to 53% in 2009 due to the crisis.

0% 20% 40% 60%

Finance/resource allocationControl

Procurement/vendor selectionChannel design

Order fulfillmentLogistics

Channel relationship managementPricing

Selecting target marketsOperations/Manufacturing

Technology developmentICT-implementation

Managing brand equityHuman resource management

Service deliveryStrategic planning

Selling and communicationsCustomer relationship …

Market sensing and intelligenceStrategic partnering and alliances

New product/service …

Moenaert, Robben & Gouw

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Moenaert, Robben & Gouw

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Customer intimacy 2009

Real Customer Focus

CARE

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Find new fields to play on!

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

60% investment

Cost before innovation

Small is more successful

70% incremental

30% strategic

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World top brands

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Company

Value

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CEO of the year 1999

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Customer driven

Bigger: human limits

9 minutes!

Downsizing

Being powerful

Page 28: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

28SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Co-operations (real deal – no fake)

We customers love it

Red ocean – rat (flies) race

Be first in your market

Sustainable

Page 29: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

29SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

50% live in cities

Must be smarter

IT driven solutions

Energy

e-Learning

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Kotler

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Customer at the centre (KOTLER!)

Understanding

Segmenting

Value proposition

Delivering value

Promise

Growth AGENDA

CLAIM marketing position

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31SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Gartner, Forrester, McKinsey, IBM,

my boss or my friend told me I need it

FACT BASED

Attitude change

Serious marketing

Non-value adding costs

Stable metrics

Simple

Get taken serious

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Kotler

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Unprofitable customers

Screaming for sales

New customers – demanding customers

Dare to cut costs

Unprofitable segments

Unprofitable locations

Unprofitable products / services

Return on Marketing (ROM)

Page 33: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

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SUSTAINABILITY

Business Roadmapping

Translating customer needs!

Moenaert, Robben & Gouw

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Big issues world wide

Time for sustainability

Balanced world

Costs & Benefits new level

Don’t grow for the sake of growth

Cancer

Consumption with borders

Business roadmap

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34SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

It’s there

Younger generation

Recruit them

Power networks

Get pushed

Or push yourself

Page 35: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

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Born: Age

Baby Boomers ’46 – ’60 50+

Generation X ’65 – ’76 34+

The Net Generation ’77 – ’97 13+

Generation Next ’98 – present 0+

The Generation C ’90 – Present 0-19

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Traditional vs. new school marketing

Generations

New brains

Generation C = digital natives

Future of shopping

Page 36: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

36SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Eight Net

Generation

Norms

Free-

dom

Scrutinize

Entertain

-ment &

fun

Speed

Customi-

zation

IntegrityCollabo-

ration

Innova-

tion

It does

change

things…

Choice:

more is

better

Check

before

you buy!

Edutain-

ment

iPhone

can read

bar

codes

Godzilla,

tuner

cars

Be

honest

Lego

designs

Give me

the

latest

LOOK POSITIVE TO THIS GENERATION – TRY TO UNDERSTAND THEM

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Financial 1 Bankruptcy

2 Cash flow rules

3 Consolidation (bargains in the market for sale)

4 Instantaneous gratification

5 Lack of investment willingness

6 Lay-offs (hidden unemployment)

7 Losses

8 Profitability

9 Reduce operating costs (enabling new strategies)

10 Stock picking instead of index stock investments

Commercial 1 Accessible exclusive design (Jimmy Choo – H&M)

2 Customer focus (retention – churn – loyalty – new)

3 Desperate for sales

4 Heavy discounts (less than half price)

5 Joint promotions

6 Price sensitivity (consumer conditioning)

7 Response time

8 Saving on media expenditures

9 Store loyalty

10 Survival, very short term focus

Others 1 Government investments

2 Downsizing

3 Education

4 Hybrid

5 Intelligent stick for blind people

6 Knick ice skate

7 Low employee switching

8 Physical appearance

9 Property rent based on fixed and sales part

10 World cup 2010 South Africa

All red items are relevant to the Albert Heijn case

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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Strategy 1 Analytical culture (competing on analytics) Social 1 Age less, time less and peer less

2 Board whisperer Environment 2 Crime due to bad economy

3 Core competence 3 Culture & religious issues / distrust

4 Everything with ‘integrating’ (data, intelligence) 4 Fair trade

5 Everything with ‘multi’ (channel, tasking) 5 Government regulations (cradle to cradle)

6 Mergers & acquisitions 6 Pensions - retirement age

7 No €ompromise (new business models) 7 Population: green vs. working vs. gray balance

8 Partnering 8 Restless young people

9 Sensible growth 9 Security

10 Sustainable business executing 10 Sustainability (environment, logistics, production)

Marketing 1 Brand activation Market 1 24/7 openings (e-tailers)

2 Growing diversity of consumer groups 2 A-Brands loosing territory (only nr 1 and 2 is OK)

3 Marketing Metrics (accountability) 3 Fresh & chilled products (image and volume)

4 Passion, passion to serve 4 Going out to eat ‘at home’

5 Permission based direct marketing 5 Private Label and Discounters gaining territory

6 Personal touch (CRM people) 6 Professional interim management

7 Real customer focus (virtual guardian angel) 7 Real food, lesser big portions and more vegetables

8 Sharp Customer Value Propositions 8 Resource issues

9 Social media 9 Simplicity

10 There is No Such Thing as a Commodity 10 Trade down of channels, assortment and brands

Consumers 1 Co-creation (for you, by you ) Internet 1 Cloud Computing

Employees 2 Consume less 2 Crowd sourcing

3 Convenience 3 e-book and e-readers grow

4 Customer experience 4 e-Software (e-Learning & e-Gaming)

5 Customer pull 5 Internet TV

6 Involving customers in decision process 6 SEA Search Engine Advertising

7 Social networking 7 Sensitive technology

8 The essence 8 Virtual shopping, wherever, whenever and whatever

9 Where do I belong? 9 Web n+1

10 Working at your 'home office’ 10 Windows 7

All red items are relevant to the Albert Heijn case

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Page 39: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

39All red items are relevant to the Albert Heijn case

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Totally 1 Bonus

Not 2 Business cards

3 Car roadmaps

4 Consultancy

5 Criminals visiting home

6 Fast growth (unless you are China)

7 Fax machine

8 Flip flops

9 Growth for the sake of growth

10 Happy few

11 Home phone / ADSL

12 Lover boys

13 Manager holding back on change

14 Mass production

15 Old school advertising

16 One size fits all

17 Paper based voting (but…)

18 See and be seen

19 Shop ‘til you drop

20 Single use batteries

21 Space shuttle ($30 mil.)

22 SUV's

23 Telephone boxes

24 Twitter

25 Window dressing

Page 40: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

40All red items are relevant to the Albert Heijn case

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Keep 1 Strong growth of bio products

on 2 Bankers and 'normal' bonuses

Dreaming 3 Bio products become as cheap as regular products

4 Fair trade

5 No more across the board cost cuts

6 No more illegal (music) downloads

7 One trade mark logo for health products

8 The end to obesities

9 Transparency, real trust in bankers

10 World cup goes to the Dutch

And also not:

Men understanding women

All around women friendly companies

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1 Akio Morita Sony

2 Anita Roddick Body Shop

3 Bill Gates Microsoft

4 Charles Lazarus Toys R Us

5 Charles Schwab Charles Schwab

6 Colonel Saunder Kentucky Fried Chicken

7 Frank Purdue Purdue Chicken

8 Fred Smith Federal Express

9 Gilbert Trigano Club Mediterranee

10 Honda Honda

11 Howard Schultz Starbucks

12 Ingvard Kampard IKEA

13 Karl-Johan Persson Hennes & Mauritz

14 Les Wexner The Limited

15 Luciano Bennetton Benetton

16 Michael Dell Dell Computer

17 Moynihan Domino’s Pizza

18 Ray Kroc McDonald’s

19 Richard Branson Virgin

20 Sam Walton Wal*Mart

21 Simon Marks Marks & Spencer

22 Steve Jobs Apple

23 Ted Turner CNN

24 Thomke/Sprecher Swatch Watch Company

25 Robert A. Iger Disneyworld

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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If you hang in the back of the group,

than you don’t see what is happening

up-front. You don’t see the new trends

on time and you can get surprised on

every turn and fall…

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Something of being

average is not good enough

anymore to make profit

(have a future)

But as customer I could be

happy with a VFM!

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low

high

rela

tive

le

ve

lSouthwest

Average Airlines

Car Transport

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Winning concept

Be different, be the best

Double strong

Page 44: Dealing with crisis. - Trade Marketing Association Marketing Trend Report... · Dealing with crisis. Spotting the red thread of our near future. PIM Marketing Trend Report 2010 May

44SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

NO €OMPROMISE strategy

20072008

2009

2010

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The match of the day: Albert Heijn vs. Jumbo

What would be the most sensible (marketing) reaction of Albert Heijn

(AH) to the latest developments of Jumbo, based on the trends of 2010,

market opportunities and AH’s competences? Take into account that AH

earns 60% of all supermarket profits in The Netherlands (Rabo

Securities), YES 60%!

Setting the scene

Jumbo has taken over Super de Boer (SdB) and changed their purchase

partner, goodbye Super-Unie, well hello C1000! You can imagine they

will have a stronger internal orientation than usual this year.

1. Decide which locations to keep, which will go to C1000.

2. They must transfer their family tradition and vision of no nonsense, quick common

sense decision-making to the hearts and minds of all their personnel (those in the

headquarters as well as those in the retail outlets) and of the retail outlets.

3. Head office employees of SdB have to deal with their new boss despite that they

already have been pushed around a lot lately. Will there be a brain drain of their

best people?

4. In the SdB outlets, the local culture and attitudes must be shaped. Go for the 7

‘challenges’ of Jumbo (the No-€ompromise strategy).

5. Harmonising purchase sounds easy but is a hell of a job if you have to do it.

6. Logistic changes (warehousing) have to be made, and much more!

7. Make profit to enabling financing new plans and to pay off depts.

The consumer will notice these changes. And not all will go smoothly. Is

this a time for AH to sit and enjoy life or to strike hard and hurt Jumbo?In many markets there are similar cases to

build. We have chosen for an all round case in

an all round market. Hope you can forgive us.

Next year B2B case.

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46

There is more to the challenge than meets the eye. Jumbo must also

deal with the fact that the whole market is always on the move.

Clearly, they are now top of the bill. However, a year of internal focus

can vaporize this position. It will be a hell of a ride.

What do you think AH is doing now?

1. Lately, they have prepared themselves to enable a No-

€ompromise strategy too, by means of cost cutting and

operational excellence.

2. They are fully aware that innovation at the front is essential -

where they meet the consumers’ eyes.

Of course, being the market leader, they focus on communicating their

market power. Clearly, they don’t want to be run over by Jumbo (nor

C1000) in the near future. AH’s tactics are thoughtfully aimed at the

new consumer. Influencing price perception in combination with

experience marketing - shops, taste and quality - they intend to offer a

winning customer value proposition. They are ready, the formula is in

good shape, and AH has the power, passion, guts and focus to give

some ‘whoopee’ to the new competition on the radar screen. But the

big question is, is this the cleverest way?

Should they attack, what do you think?

What do stock holders want?

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47

The successful CEO of AH, Dick Boer, wished his competitors

‘good luck’ on December 23rd (source: NOS). We know what that

means. Another price fight is bound to emerge. The consumers will

benefit from this - at least in the short run s/he can expect to spend

less. Window dressing time is over! The consumer is well-informed

and fully aware of where the best deals are. And of course, other

marketing-mix elements (service , quality) will be hot in 2010 too,

but in a No-€ompromise combination. Has AH done enough in the

previous three years - lowering prices, cost cutting, improving

service, increasing assortment, strengthening promotions,

focusing on fresh and chilled food, collaborating with

manufacturers, introducing Private Labels, constantly innovating -

emerge from this battle as the winner? AH thinks so. Please take

into account that the expected FMCG retailer’s sales growth in

2010 will be 1,5% and all the big guns are looking for (a lot) more!

A war is not far away.

Your action can / will lead to a reaction by your competitor, it’s

better known as the crying game. The other is always to blame,

never me!

The

crying

gameThe industry is always in the grip of

its dumbest competitor.Robert Crandall

former CEO of

American Airlines

1992

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48

Where to push AH’s Competitive Advantage in 2010?

1. Product / Service (what do you offer?)

2. Customer Process (How, where do you offer?)

3. Price (What are the costs to the customer?)

4. Image (What do you represent?)

Performance of AH on Core Processes in the Value Chain?

Where is AH better than the competition?

1. Managing brand equity

2. Customer relationship management

3. Service delivery

4. Selecting target markets

5. Selling and communications

6. Strategic planning

7. Logistics

8. Channel relationship management

9. Market sensing & intelligence

10. Control

11. Strategic partnering & alliances

12. Human resource management

13. Pricing

14. New product / service development

15. Procurement / Vendor selection

Push hard, outperform

Push as hard as main competitor

Push market average

Push below market average

AH is far better than competition

AH is better than competition

AH is equal to competition

AH is less than competition

How would you

take on the market in 2010?

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49

Where to push AH’s Competitive Advantage in 2010?

1. Product / Service (what do you offer?)

2. Customer Process (How, where do you offer?)

3. Price (What are the costs to the customer?)

4. Image (What do you represent?)

Performance of AH on Core Processes in the Value Chain?

Where is AH better than the competition?

1. Managing brand equity

2. Customer relationship management

3. Service delivery

4. Selecting target markets

5. Selling and communications

6. Strategic planning

7. Logistics

8. Channel relationship management

9. Market sensing & intelligence

10. Control

11. Strategic partnering & alliances

12. Human resource management

13. Pricing

14. New product / service development

15. Procurement / Vendor selection

MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • COMPETING • ABOUT PIM

Your Opinion

Push hard, outperform

Push as hard as main competitor

Push market average

Push below market average

AH is far better than competition

AH is better than competition

AH is equal to competition

AH is less than competition

How would you

take on the market

in 2010?

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50

That is the real winning strategy in a

turbulent 2010:

Sharp-edged and No-€ompromise.

We want it all!

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

Life is not simple

Hard to make right decision

Competitive intelligence (whole field)

Only one can be lowest

Profit sensitivity

Price war ? Shakeout ?

Realistic

Master the game of trends

Win & future profits

Profit enables investing

Beating the competition long term

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51

What are your Take Aways?

LET US KNOW YOUR VISION!

We will do good deeds with it.

Electronic update.

It can only become better in 2010.

Use these new insights, trends in your advantage

to make your business better and go for the

DO IT part.

Are you PIM trend watcher material?

Share your trend knowledge.

You get direct access to our trend research

database.

More trend reports.

Made to Stick Take Aways

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

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52

Co-creators, we can’t thank them enough for

their input, articles, presentations, theory,

suggestions, remarks, discussions, and last

but not least, inspiration.

Sources we gratefully used to do fact

finding, verification and explanation.

And many more!

Ad Gorisse Larry Lucardie Academic network Nyenrode ING

Ad Honders Lucien van der Hoeven Academic network TiasNimbas Itcommercie

Adrienne Koreman Maarten van Lit Adformatie Kentens

Anton Nieuwenhuis Malcolm McDonald AIECE LMBS

Anton Peeters Marit Oosenbrug Apple Management Team

Bert Keizer Mark Bieckmann Bloomberg Marketing Results

Birgitte de Leeuw Mark McKoen BNR Radio Marketing Tribune

Christophe Renders Michael Hodges Capgemini MKB Nederland

Clive van Heerden Michael Porter CBL MSN powered by PIM

Collette Cloosterman-van Eerd Mike Smith CBS NOS

Durk Bosma Neno Peschl Clou NRC

Edward Groenland Peter Oosterling CNN Oilnergy

François van Heurn Philip den Ouden Cool Brands Ordina

Frank van der Wal Philip Kotler CPB Philips

Frits van Eerd Phillipe Smit DBMI PIM members

Gerda Verburg Pim van Geest Distrifood Rabo Securities

Hans Eysink Smeets Remko Vogelenzang DNB Rabobank

Heleen Kamerman René Repko EFMI Reed Business

Jack Mama René van Leeuwen EIM RTL

Jack van Beek Richard Herbert Europanel SCP

Jamie Taylor Sam Sonke Financieel dagblad Second Sight

Jan Peter Balkenende Sidney Beesemer FNLI Six Fingers

Jan Willem Cornelisse Steven den Hartog Foodmagazine SuperMarkt Actueel

John Caslione Tom de Vogel FoodService Instituut Nederland TNS Nipo

Joop Holla Twafik Jelassi GfK Trend Hunter

Joost Mutsaers Willem Middelkoop GfK Alumni VMT

Kiliaan Toornaar Wouter Bos GfK Marketing Professionals Y&R

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53

We would like to express our gratitude to our sponsors.

Their support, enthusiasm, knowledge contribution and

long term commitment PIM has developed into a great

platform for more than 1.000 marketing lover. Enjoying on

a regularly base each others company, challenging visions

and opinions.

Hans Molenaar

Chairman PIM

In behave of the whole PIM board.

It is not the strongest of species that

survive, nor the most intelligent, but

the one most responsive to change.

Charles Darwin

Insanity is doing the same thing

and expecting the same result.

Albert Einstein

Design & visual

support:

Christiaan Spelmink

www.mediaexposure.eu

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54

And sometimes beyond our imagination!

SETTING THE SCENE • MARKET TRENDS • MARKETING TRENDS • WHAT’S HOT/COLD • CASE • NEXT

18th

Century 1900 1950 1970 1980 1990 2006

And sometimes beyond our imagination!

?

2010