private brands with big 'b
TRANSCRIPT
Private Brand with Big ‚B’Agnieszka Krok, Head of Creative, Krzysztof Śpiewla, PR Manager
Private Label Made in Europe Fair and Conference
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Creative solutionsMARKETING
Actual problems of retail chainsSTRATEGIC OUTLOOK
Concentration
MarginDifferentiati
on
01 EVERY YEAR IN
POLAND 5% OF STRES CLOSE.
02 PRICE PRESSION 03 NUMBER OF CHAINS
GROW
Fot. Nicholas Eckhart@Flickr, lic. CC BY 2.0
PROBLEM:
ConcentrationLid est laborum dolo rumes fugats untras. Etharums ser quidem rerum facilis dolores nemis omnis fugats vitaes nemo minima rerums unsers sadips amets.. Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium. 1
45%CONCEPT
20%
AWESOME TEAMCREATIVE
Lid est laborum dolo rumes fugats untras.
AWESOME TEAMCREATIVE
Lid est laborum dolo rumes fugats untras.
CONSEQUENCE:
STRONGER COMPETITION
2PRICE PRESSION
3SMALLER NEGOTIATION SPACE
TARGETCOSTUMER
TARGETCOSTUMER
35%
55%
Dynamics of retail chains in PolandSource: dr Urszula Kłosiewicz-Górecka, prof. IBRKK, Zmiany w handlu w okresie chwiejnego rozwoju gospodarczego Polski, March 2nd, 2015
Structure of retail spaces in Poland. Source: Rynek wewnętrzny w 2013 r. Informacje i opracowania statystyczne. GUS
ProfitabilityPROBLEM:
Retail chains are looping in chase after the best price, and they don’t know how to get out of this trap.Marek Dąbrowiecki, Storck, in an interview for Portal Spożywczy, 18th of June
Changes of added value in retail market, according to National
Census
Among 200, 43 examined businesses reported loss in 2013.Portal Spożywczy after Bisnode Polska, February, 27th
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Friendly, neighbor’s, close, fresh….
DifferentiationPROBLEM:
Private labelTHE SOLUTION CAN BE A
How?
Exit price wars: Prices distinctly higher than by competiotors.
Sales value growth, supporting the chain brand, increase of consumer loyalty: PL sales double in 2 years.
Be localWELL-THINKED STRATEGY
Company value maximalization, before it’s sale: Succesfull fusion with Walgreens.
4 category brands.
2 of them directly connected to New York
Others – supporting chain’s „new-yorkness” with additional attributes.
Private labels system:
Challenges and effects:
Specialist private brand
Taking the highger shelf in wide scope of categories, to maximize margin.
Podbudowanie wizerunku sieci. Reconstruction of chain’s image.
Reflets de FranceSECTOR BRAND:
Complement of chain’s offer, export.
High quality.
Making-of: well-known chef, producers, meetings, regional conotations.
Content richness in on-line communication.
Brand and communication:
Challenges and effects:
When private label pulls the chain
14,3 million views of the 14,3 million views of the basic videobasic video
11,7 million views of e-11,7 million views of e-postcardspostcards
Watch in Youtubehttps://www.youtube.com/watch?v=jxVcgDMBU94
What about small chains?ALL RIGHT, BUT…
Wisconsin Master’s MarkWhether on point-of-sale materials … or prominently displayed on cheese packaging, the Wisconsin Master’s Mark serves as a point of differentiation to add value to their cheese display.
Wegmans Food MarketsWegmans Food Markets, Rochester, N.Y., is another example, Wisner states, boasting plenty of chef-inspired, can-buy-it-only-here items and loads of merchandising and marketing support to back them up.
Garden Fresh MarketIn addition to offering hard-to-match
prices on quality produce, differentiates itself via hard-to-find ethnic foods.
Trader Joe’sThink of … somebody like Trader Joe’s, who
essentially has converted the whole store into a store of destination items.
Trader Jose’s is for Mexican cuisine, condiments, and even beer; Trader Giotto’s
is an Italian line that includes pasta, pizza and bruschetta; and Trader Joe-san’s is for
Japanese cuisine. It also has Trader Darwin’s, which is a brand of vitamins and
health supplements.
Źródłahttp://www.fullsurge.com/perspectives/articles/brand/best-practices-private-label-branding
http://www.storebrands.info/store-brand-insights/special-features/why-bother
And if you don’t have an American budget…
…you have digital communication
Store reach space– 28,27×50=1 414 km2
Radio reach space – ok. 15 387 km2
What about the reach?OVERCOMING DIFFICULTIES
Ineffective radio reach: 1414÷15387=91,8%
Radio campaign expenses vs. chain map. Assumed: store reach radius = 3 km.
Campaign simulation
LET’S GET BACK TO THE EXAMPLE
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44%PAID REACH
EARNED REACH – E-CARDS.
EARNED REACH – SPOT
How much EDEKA paid for their campaign?
12%
44%
Internet is better
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37%
Cheaper
2
Senses engaged
+20..+60%
Viral reach
1
Using only 1 of many ways of
targeting
Take advantage of what you haveCHANNELS YOU ALREADY USE
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E-Mailing FlyersWWW, apps Social media Packaging Store
Not only product-price
Build your image.
Build consumer loyalty.
E-mailingYOUR CHANNEL
Shape sales.
Private Label:
„Justifies” chain brand.
Takes advantage of the channel.
Comprises the whole communication.
Website
Vastness of contentVastness of content
Reason to believe, reason to Reason to believe, reason to buybuy
Strictly bound with the Strictly bound with the productproduct
Connected with other Connected with other activities: social media, activities: social media, events etc.events etc.
RemarketingRemarketing
Integrate!Integrate!
Useful tool for both channel and the consumer
Build image.
Build loyalty.
ApplicationYOUR CHANNEL
Shape sales.
For private brands:
Suggesting products in shopping list, replacemnent lists
Using wide possibilities to show up
Easy use of social media
Closer communication builds-up relations
FB is the firstplace to contact or complain
Social mediaYOUR CHANNEL
We do take friends’ opinions in account.
Facebook is also a medium to make reach
Blogs and vlogs
Leaflet or… magazineYOUR CHANNEL
Build your image.
Build consumer loyalty.
Shape sales.
Private Label:
„Justifies” chain brand.
Takes advantage of the channel.
Comprises the whole communication.
Augmented reality
QR codes
pACKAGINGYOUR CHANNEL
NFC
Beacons
2 times better app conversion (Walgreens). 6 times more app users (Carrefour)
28% more footfall (Walgreens)
In storeYOUR CHANNEL
Incredibble analytical opportunities
Private Labels:
Detailed analytics of connections between foofall, sales and marketing activities
Consumer engagement
Full in-store consumer guidance
Fot. materiały prasowe Estimote
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02 EXACT REACH:
In right place, in right time, directly to the right people
04 PERFORMANCE
Using tools which support buying decisions
06 FEEDBACK
To improve effects
BRAND STORY 01In very capacious media
MEASURING AND
RESEARCH05Connecting data about people,
search, communications
EMOTIONALLY ENGAGING 03Thanks to social and traditional
media
„Integration – thank to InternetTHE POINT IS NOT TO HAVE A LOT
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5
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02 PERSONALITY
04 CULTURE
06 CONSUMER’S SELF-IMAGE
PHYSICAL FEATURES 01
REFLECTION 05
RELATIONS 03
Build complete brand easily
Create real private Brands – it profits:
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Helping to avoid price pression.
To strenghten market position.
To build loyalty.
Thank you
Agnieszka Krok, Krzysztof Śpiewla
+48122923333 www.abanana.plwww.eura7.com