The Psychology of Visual Merchandising

Dian Hasan – Mindcode, San Diego, CA, USA

Let’s break it down into smaller components… the definitions:

Psychology: The science of the human mind and behavior. The word psychology literally means, ”study of the

soul”~ Wikipedia.

Visual Merchandising: The activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a

product or service.~ New Oxford Dictionary.

A window into your brand’s soul!

What is your goal?

To ensure:1.Your Brand becomes the chosen one

2.You increase your sales3.Build brand loyalty

Visual Merchandising is made of different components…

OK, that’s the definition, but what does it really mean?

It’s about how well you tell your visual merchandising story… that is captured through a customer’s experience.

It’s all about…

At the heart of Retail Branding is THE

EXPERIENCE!

It’s “your BRAND in ACTION!”

It’s how your brand translates/transforms into a

tangible feeling.

If it isn’t… your market share could become your nightmare

MindCode Methodology | From Theory to Practice

13-Brain Theory

3BrandGenetic

4Cultural Codes

(the role of culture in brand building)

2Optimizationof Meanings

5Compelling

Story-Telling

3we have

brainsDr. Paul D. MacLean

1913-2007

GeneratesFUNCTIONAL

VALUE

3-Brain Theory

Optimizationof Meanings

• Rational• Logical• Analytical

3

GeneratesSYMBOLIC

VALUE

• Primal Instinct• Predatory• Survival

1

GeneratesEMOTIONAL

VALUE

• Emotional• Self-Esteem• Nurturing

2

GeneratesFUNCTIONAL

VALUE

GeneratesEMOTIONAL

VALUE

GeneratesSYMBOLIC

VALUE

• Rational• Logical• Analytical

3

• Primal Instinct• Predatory• Survival

1

• Emotional• Self-Esteem• Nurturing

2BRANDVALUEI bought this Cola

because I got the most features for the least expense.

I bought this Cola because I got the most features for the least expense.

When I get behind the wheel of my

Hummer, I rule the road!

When I get behind the wheel of my

Hummer, I rule the road!

I always buy L’Oreal, because it makes me feel

beautiful.

I always buy L’Oreal, because it makes me feel

beautiful.

3-Brain Theory

Optimizationof Meanings

People value more what things mean

than what things are.

Reptilian Codes

$

$$

$$$

FUNCTIONAL VALUE

EMOTIONAL VALUE

SYMBOLIC VALUE

Find theREPTILIAN BRAIN. This is where the highest level of Brand Competition

occurs. And this is where premium brand

experience and pricing rules.

REPTILIAN GENE Provides emotional

equity + major brand equity

LIMBIC GENE Provides emotional

equity cal

CORTEX GENE Provides trust &

credibility

BrandGenetic

Reptilian Codes

Power

Domination

ChallengeIndividual

RecognitionPleasure

Satisfaction

Control

Order

BelongingSocial

AcceptanceSecurity

Protection

Freedom

Autonomy

ExplanationDiscovery

Family

Ensuring Your Heritage

Tran-scendenceSurvival of

Genes

BrandGenetic is developed with other Sciences for in-depth understanding

Biology

BrandGenetic

3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment

3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment

“You never actually own a Patek

Philippe. You merely take care

of it for the next generation”

1997 Campaign Launch

3 BRAIN IN ACTION: examples of how it’s translated into brand activation, communication strategy, and the retail environment

brandgenetic

Scientifically supported brand positioning model.

A powerful tool to understand the brand’s different meanings and to align the team vision.

A powerful tool to take On-Code brand decisions across different cultural codes.

Serves as a compelling Balance Score Card.

G

ATOMS = Brand’s dominant meanings

ATOMS = Brand’s dominant meanings

GENES = Perceived executionsGENES = Perceived executions

CORE PROMISE = One sentence idea

CORE PROMISE = One sentence idea

It works like a chemical formula

AA

A

A

Core Promise

Debe tener los tres valores, no es escenográfico.

BrandGenetic

American icon

REPTILIAN GENE Provides emotional equity + major brand equity

LIMBIC GENE Provides emotional equity

CORTEX GENE Provides trust & credibility

BRAND BOUNDARYWhite Bears

Endless themes

Lights me up

Endless themes

Value

PRODUCT BOUNDARY

Mindcode developed this BrandGenetic to show a Coke competitor why the brand has a stronger symbolic+emotional superiority and to understand how Coke is building value.

Enjoy Life!

Debe tener los tres valores, no es escenográfico.

People value more what things mean

than what things are.

Visual merchandising is defined as the physical display of goods in the most appealing and attractive manner possible.

This includes store layout and décor, merchandise presentation, and displays. The main goal of visual merchandising is to please the senses of the consumer

YOURVISUAL

LOOK

Is

sending out the right branding

message to your

audience?

YOURVISUAL

LOOK

Does

reflect the company’s

brand personality?

YOURVISUAL

LOOK

Is

in sync with your

customers’ brand

experience?

The experience of your brand is related to how well you tell your visual merchandising story. By creating stimulating and evocative displays, you help form the customer's

understanding of your products and services.

Remember your visual merchandising should Entice, Impact and Inspire…

What kind of experience will your customers get? Will it be memorable?

What kind of experience will your customers get? Will it be pleasant?

What kind of experience will your customers get? Will it be personal?

What kind of experience will your customers get? Will it be courteous?

What kind of experience will your customers get? Will it be consistent?

What kind of experience will your customers get?

Will it be different from your competition?

What kind of experience will your customers get?

Will it win over your customers, and gain customer brand loyalty?

Remember your visual merchandising should Entice, Impact and Inspire…

Good design can mean the difference between: “BLAH” vs. “WOW”

Good design can mean the difference between:

“One-Time Customer” vs. “Repeat Customer”

Good design can mean the difference between:

“Selling a Commodity” vs. “Unforgettable Brand Experience”

Southeast Asia:With a population of over half a billion people spread over eleven countries, Southeast Asia provides retailers with significant opportunities, but also operational challenges.

Southeast Asia’s diverse retail environments, ranging from mixed use developments like Singapore’s Marina Bay, Manila’s huge SM Malls, and Jakarta’s and Bangkok’s high-end themed malls like Plaza Indonesia, Pacific Place, Siam Paragon, and Gaysorn Plaza. All the way to local “mom and pop” shops, means that brand strategies must be tailored for a huge array of consumer needs and habits.

Additionally, changing consumer behavior, rising disposable incomes, increasingly status conscious shoppers, and online product availability all continue to impact the retail environment.

USA

Mexico

Colombia

Peru

Argentina

IndonesiaBolivia

MindCode is a strategic brand positioning company that provides innovative Brand solutions.

MindCode’s objective is to maximize Brand value for our clients by revealing an innate, profound understanding of their markets.

MindCode has worked with clients across the world.

MindCode has proven to be an essential tool to increase Brand value.

Partial clients list

SUCCESS STORY

Cuervo 13, Tequila + Taurina

Foto: Eduardo Caccia

POWERFUL + SEDUCTIVE NEW BRAND

BRANDGENETIC BOOK: provided guidelines for the brand experience, design language (architecture, interior/décor), and recommended environmental approach.

COMPETITIVE GRID ANALYSIS

OUTCOME FOR THE CLIENT

Have a powerful, clear and consistent brief for the designerBorn with a stron positionig platformBe accepted faster than traditional timeframe

DEVELOPING A NEW BRAND FROM A-Z

SUCCESS STORY

One Shot, flavored tequila shots, new brand, Houston Tx

Foto: Eduardo CacciaDEFINE YOUR MEANINGS

PRE-TEST

OUTCOME FOR THE CLIENT

Know real market possibilitiesAvoid unnecessary spending and risksKnow how your brand will be perceived by the target

USAGE, ATTITUDE AND RITUALS

TESTING AN ALREADY DESIGNED BRAND BEFORE LAUNCHING IT

Sauza Hacienda, Beam Global, Mexico

BEFORE: BORING

OUTCOME FOR THE CLIENT

World Wide Award for most innovative spirit brandSales went up inmediatelyDeveloped new brand identityDeveloped poweful advertising campaing

SUCCESS STORYREPOSITIONING AN EXISTING BRANDBRIFIEF DESIGNERS AND AD AGENCIES

AFTER: FUN!

GAVE BRIEF TO THE AD AGENCY

AWESOME NEW BRAND EXTENSIONS CREATED RELEVANT BRAND ACTIVATION

HELPED TO TAKE A DESIGN DECISION

ALIGN YOUR MESSAGE

Communication matrix for Caribe Cooler.

Foto: Eduardo Caccia

1 SAVVY AD EXPENDING LESS STRESS, MORE EFFICENCY HAVE A FORMULA THAT WORKS

INCREASE BRAND AWARENESS

Communication matrix for Caribe Cooler.

Foto: Eduardo CacciaSource: Nextel Mexico. Callouts by Mindcode

2 INCREASED LOYALTY BETTER POSITIONING

KNOW WHY THEY LOVE YOU!

Lawry’s success case, Beverly Hills, CA

Foto: Eduardo Caccia

Three generations. The name of the game is genetic survival. This

happens by keeping TRADITION alive. The brand fulfills this unconscious and

REPTILIAN need.

The “False Sophistication”Every element on a classic Prime Rib

plate is SIMPLE. It is a mix of sophistication (meat carving) and

non sophistication.

Mindcode explained to a world-wide famous prime rib restaurant why its brand has such a strong connection with its target, beyond being a great place to dine with excellent food and service. The brand discovered a new business dimension after competing the Code Discovery and the Brandgenetic.

3 LOWER THE RISK OF WRONG DECISIONS MASTER YOUR POSITIONING

INNOVATE ON-CODE

EXPAND THE BUSINESS

Dannon

Foto: Eduardo Caccia

4

Activia: new On-Code cultural findings prove

mixes that work!

Danup: new size and packaging taps On-Code when talking to teens

Danonino: Brand Character Book, a psychological support for better needs understanding and to help

moms & kids.

INCREASED EARNINGS MORE REASONS TO BUY THE BRAND

DEEPER UNDERSTANDING OF THE CONSUMER

BUILD IT ON-CODE!

Andares shopping center, Guadalajara, Mexico

Foto: Eduardo Caccia

5

Brandgenetic Book: an strong innovation & brand experience guide

European street vibrancy DNA adopted and put into action

BETTER SHOPPING CENTER IN MEXICO AWARDED AN INTERNATIONAL INNOVATION RECOGNITION

INCREDIBLE ON-SITE BRAND EXPERIENCE

DOUBLE CHECK

DIFFERENTIATE & CREATE VALUE

Chemuyil integrated luxury resort development, Riviera Maya, Mexico

Foto: Eduardo Caccia

6

NEW MARKET SEGMENTATION

POWERFUL COMPETITVE GRID & DIFFERENTATION STATEMENT

FIND A COMPETITIVE NICHE BUILD A PROJECT WITH A STRONG BRAND PROMISE

KNOW WHERE TO PUT YOUR HARD-EARNED DOLLARS

Brandgenetic Book: provided guidelines for the brand experience, design language (architecture, interior/décor),

and recommended environmental approach.

BOOST YOUR TEAM POTENTIAL

Mindcode Innovation Workshops

Foto: Eduardo Caccia

7 CREATE A FUN LEARNING ENVIRONMENT DEVELOP THEIR INNOVATION CAPABILITIES EMPOWER THEM TO BECOME PROUD BRAND AMBASSADORS

CREATE COMPELING MESSAGES

Frito Lay discovering its brandgenetic

Foto: Eduardo Caccia

8

Mindcode’s findings served as a platform for the master brand national campaign

FOCUS ON YOUR UNIQUENESS ALIGN CORPORATE VISION EXECUTE MEMORABLE ADS

1D BRAND CULTURE• Company Mission + Vision• Brand Ambassador development• HR policies

2D PRODUCTS & OPERATION• On Code innovations• Brand Extensions

3D BRAND IDENTITY• Names• Visual identity• Retail/Packaging• Corporate offices

4D COMMUNICATION• Advertising/PR• Promotions and collaterals• Newsletters

5D BRAND EXPERIENCE• Rituals/Staff dialogues• POP• Sensorial

6D GOODWILL• Community efforts

Without EXECUTION, you don’t have anything

NOTICE

MINDCODE DOES NOT PRODUCE THE ABOVE ACTIVITIES BUT ACTS AS COACHING WORKING SIDE BY SIDE WITH THE CLIENT OR WITH THIRD PARTIES INVOLVED.

HOW FAR CAN WE GO?

DIAN HASAN

Empowering Brands through Culture

Dian Hasan has always seen himself as a curious creature, stemming from his own unique cultural background, the result of the union of a Czech mother and an Indonesian father. Growing up across four continents and vast cultural differences, has molded him into a a global citizen aware of his immediate surroundings. Prague, Jakarta, Sydney, Rotterdam, New York, Singapore, through to San Diego today, have all left an indelible imprint of culturally-specific places.

He brings his cultural sensitivity to his work in Innovation & Brand Positioning. Always considering the sheer importance of being “On-Code” and in harmony with the local culture.

The Speaker Dian Hasan is a San Diego-based Brand Storyteller and Business Innovator at Mindcode (www.mindcode), a US-based Innovation, Brand Positioning and Consumer Behavior Research Company. He has worked with clients in the US, Mexico, Argentina, Indonesia, from various industries

Dian is spearheading Mindcode’s foray into Asia, via Indonesia.

Before joining Mindcode, he was with EMI Music Asia in Jakarta, where as a Managing Director, he operated during the challenging Asian Crisis (1998) when the local currency depreciated 80% against the US$. Prior to that Dian was with Amanresorts (pioneers of boutique hotels in Asia), The Four Seasons New York, American Express, The United Nations Headquarters in New York, and Coopers & Lybrand Rotterdam, The Netherlands.

Dian is a regular contributor and avid blogger on Innovation & Branding, Marketing, Ecotourism & Culture, through his blog “Ideas Inspiring Innovation"www.ideasinspiringinnovation.wordpress.com.

Dian holds an MSc. In Hospitality & Real Estate Studies from NYU, and a BA in Finance and Accounting from University of Indonesia.

Identifying Innovation & Building Brands through an innate Cultural Understanding

In our globalized world of today, cultures mesh and evolve, but the true cultural identity remains intact. And successful brands are those that acknowledge and work within this fascinating realm.

Fast FactsMindcode International is a U.S. based company specialized in non-traditional Innovation, Brand Positioning, and Consumer Research.

Founded 1999.More than 600 projects completed.Has developed brand strategies for various international companies, such as Nextel, Kodak, Cuervo, Avon, Deloitte, Dannon, Pfizer, Maseca,Whirpool, Nestlé, Bacardi, Sabritas (Frito Lay), Tecate among others. Our research methodology has a scientific foundation based on the Triune Brain theory.Use of social anthropology, psychology, sociology and semiotics for multi-skilled analysis.Business oriented and marketing savvy.Developed Brandgenetic tool for a deeper understanding of your target and to unify the brand vision across all members of the company. Extensive experience in Hispanic research in Latin America.> 80 associate consultants in 7 countries.