The role of marketing in a successful retail business. The role of marketing in a successful retail. Kieron Weedon Kerry Wilson

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1 The role of marketing in a successful retail business Kieron Weedon Kerry Wilson

2 2016 BWP Group. All rights reserved

3 The art of effective or persuasive speaking or writing, especially the exploitation of figures of speech and other compositional techniques BWP Group. All rights reserved

4 What s your (honest) view of marketing? a) It s an essential part of our business and driving business growth b) There s a lot of grey, it s all a bit hit and miss and I can t see the value in it c) A lot of pretty pictures, jargon and thick rimmed glasses that I can t see the point of 2016 BWP Group. All rights reserved

5 How much exposure do you have to marketing? a) None b) A little, but I d prefer none c) A little, but I d prefer plenty d) Plenty 2016 BWP Group. All rights reserved

6 How we want you to think differently No Jedi mind tricks we promise But, we want change some perceptions: a) Marketing is not just a department, it s an attitude b) Marketing is how retailers put their customers at the heart of what they do c) There is ALWAYS a right answer 2016 BWP Group. All rights reserved

7 Context for today 2016 BWP Group. All rights reserved

8 Where does marketing fit in this week? Booms & Bitner, 1981 Money Merchandise Retail space People

9 We are all marketers today Customers do not separate marketing and product it is the product They don t separate marketing from in-store or online experience it is the experience In the era of engagement... marketing is at the heart of a business

10 Because marketing is about conversations

11 And about influencing those conversations What do we want people to say about our brand?

12 The Golden Circle Apple What... the hell do you do? How... do you do what you do? Why... do you do what you do? What s the purpose? We make great computers, they are simple to use, beautifully designed and user friendly wanna buy one? Everything we do, we believe in challenging the status quo, we believe in thinking differently. The way we challenge the status quo is by making great computers, they are simple to use, beautifully designed and user friendly wanna buy one?

13 The Golden Circle What... the hell do you do? How... do you do what you do? The NEOCORTEX part of the brain controls rational thought Why... do you do what you do? What s the purpose? The LIMBIC part of the brain controls decision making and emotion

14 And about influencing those conversations At the end of the day, we fly exactly the same planes as everybody else. If we get our customers off the plane happy, and they go on to talk about that and get others to come and then come back again themselves that s a huge marketing tool. Steve Ridgeway, CEO, Virgin Atlantic

15 Where do we start?

16 The SOSTAC* planning tool

17 Situation Situation analysis Control Objectives Where are we now? Customer research (who, why, how?) Actions Tactics Strategy Brand perceptions Market trends Competitor analysis

18 Situation Objectives Where do we want to be? Brand perception Control Actions Tactics Objectives Strategy Customer retention and acquisition targets Customer satisfaction targets Footfall and sales targets

19 Strategy How do we get there? Target segments and markets Insight Positioning and key messages Situation Control Objectives Actions Strategy Tactics

20 Tactics How exactly do we get there? 7 Ps Communications mix and channels Content plan Situation Contact plan Control Objectives Actions Strategy Tactics

21 Actions The details of the tactics Roles and responsibilities Situation Processes and systems External agencies Control Actions Objectives Strategy Tactics

22 Situation Control How do we monitor performance Control Actions Objectives Strategy What are the metrics available to me? Tactics What does good look like? What KPIs should I set?

23 SOSTACin action

24 IKEA It starts with the food

25 Situation analysis (part 1) Customer expectations are increasing customers want a personal and seamless experience, in a channel of their choice, convenience wins and ease of shopping (multichannel and local) IKEA are no.1 in total home furnishings market, but not in kitchens and home furnishings accessories The Wonderful Everyday is a recognised and memorable brand positioning Control Actions Situation Tactics Objectives Strategy

26 Situation analysis (part 2) IKEA are unique in such that they are only brand that offers the complete kitchen, dining and eating experience There is a strong brand personality: We are curiosity driven problem solvers. We think beyond the benefits of individual products/solutions, we go that step further in bringing to the forefront, the life enhancing benefits for the consumer.

27 Situation analysis Perceptual competitor map High awareness Less expensive More expensive Low awareness

28 Objectives Increase penetration & become category leader Use Wonderful Everyday to connect with consumer Express complete IKEA kitchen/cooking offer through experience Make activity accessible Strengthen emotional connection to IKEA brand through lens of kitchen-dining Increase top of mind awareness Increase penetration amongst new consumers Increase visitation Control Actions Situation Tactics Objectives Strategy

29 Strategy INSPIRE: Target moments of anxiety and present a better way of thinking about time spent in the kitchen ENABLE: Target those engaged in active planning around kitchen activities and give them more specific solutions as to how to improve their experience Control Actions Situation Objectives Strategy Tactics

30 Strategy We want people to cook and eat together Consumer Truth Everyday cooking from scratch is an aspiration for many basic functions of the kitchen like having space to store things and keep everything tidy remain key challenges. Our relationship with our kitchens is holding us back When you re happy in the kitchen, everyday cooking is a joy. Cultural Truth Food has never been more culturally prevalent, from TV to print and social media; today it s ever more front of mind. Supported by a wave of innovation at supermarkets, casual and fine dining, people s relationship with food is ever more exploratory Brand Truth We want to people to the reappraise everyday cooking we must inspire the many people to see it as something other than a chore and that can be fun and to approach it with gusto, not worrying about convention. If you don t feel good in the kitchen you won t feel good about your food either

31 Situation Tactics Control Objectives TV, Press, PR, OOH ACTIVE EVALUATION Actions Tactics Strategy INITIAL BRAND CONSIDERATION MOMENT OF PURCHASE TRIGGER POST-PURCHASE EXPERIENCE (ONGOING ENGAGEMENT)

32 Situation Tactics Social, Control Objectives Website, TV, Press, PR, OOH Experiential ACTIVE EVALUATION Actions Tactics Strategy INITIAL BRAND CONSIDERATION MOMENT OF PURCHASE TRIGGER POST-PURCHASE EXPERIENCE (ONGOING ENGAGEMENT)

33 Situation Tactics Social, Control Objectives Website, TV, Press, PR, OOH Experiential ACTIVE EVALUATION Actions Tactics Strategy INITIAL BRAND CONSIDERATION MOMENT OF PURCHASE TRIGGER POST-PURCHASE EXPERIENCE (ONGOING ENGAGEMENT) Experiential, In-store

34 Creative development If you re happy in the kitchen, everyday cooking is a joy Rediscover the Joy of the kitchen #Joyofcooking

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37 Edits of the TVC to run across TV and VoD, with a CTA to visit ITV.com Competition microsite, with a chance for entrants to win a money-can t-buy kitchen fitting Weekly engagement led content to help delivery upon solutions to the three core barrier themes

38 ITV/UTV STV

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45 Actions Executed by external agencies: BWP Group Mother LIDA Isobar Hope & Glory Control Situation Objectives Actions Strategy Tactics

46 Control Situation IKEA has seen an immediate increase of 11% in sales of Swedish Food items, which include the famous meatballs and recently introduced veggie balls Control Actions Objectives Strategy An increase of 24% in cooking products Tactics An increase of 7% in eating (dinnerware) products in comparison with the previous financial year

47 Our focus today

48 Situation analysis Perceptual competitor map Quality Price

49 Situation analysis Perceptual competitor maps

50 Situation analysis Perceptual competitor maps

51 Strategy tools Unique positioning driven by insight Human Truth What are people really saying about you or the sector? Unique positioning statement Cultural Truth What is the underlying culturual trends that are influencing how people are behaving Brand Truth What do we offer that s different and really adds value for our customers

52 Strategy tools Getting to the Truths The 5 Why s Start with a key fact about the business and or the market and interrogate it Our brand is underperforming in the market WHY / WHY / WHY / WHY / WHY? Brand x is brand leader WHY / WHY / WHY / WHY / WHY? Sales are up/down WHY / WHY / WHY / WHY / WHY?

53 Strategy tools Market Fact: spirits consumption is low in Sweden relative to other European countries 1) Why? Because spirits prices in Sweden are extremely high 2) Why? Because State taxes imposed on spirits are high 3) Why? Because the State was keen to reduce spirits consumption in Sweden 4) Why? Because there is a historical legacy of alcohol abuse 5) Why? People tended to either drink very hard or abstain or both INSIGHT: Cultural Truth: deep down in the national psyche there is a feeling that spirits consumption is sinful and that consumers need social permission to drink spirits

54 Tactical tools McKinsey Loop AWARENESS PR, DIGITAL, PRESS, TV. RADIO, OHH BRAND CONSIDERATION

55 Tactical tools McKinsey Loop EDUCATE, INFORM, RESEARCH ACTIVE EVALUATION INITIAL BRAND CONSIDERATION EXPERIENTIAL, SOCIAL CONTENT GENERATION ONLINE, SEARCH, PPC, EVENTS,

56 Tactical tools McKinsey Loop ACTIVE EVALUATION TRIGGER INITIAL BRAND CONSIDERATION SHOPPER, MARKETING, POS, PROMOTIONS MOMENT OF PURCHASE CONVERT

57 Tactical tools McKinsey Loop EDUCATE, INFORM, RESEARCH ACTIVE EVALUATION AWARENESS INITIAL BRAND CONSIDERATION MOMENT OF PURCHASE TRIGGER CONVERT POST-PURCHASE EXPERIENCE (ONGOING ENGAGEMENT) ENGAGE & INTERACT

58 Summary

59 What have we covered Role of marketing within a modern retail business Marketing planning and strategy Role of media tactics in the customer journey

60 Tools and Models 7P s of marketing The Golden Circle SOSTAC Strategy Venn The 5 Why s McKinsey s Marketing Loop

61 Today s brief s

62 Exercise 1: Using SOSTAC for retail brands You will be supplied with: A perceptual competitor map of brands in a specific retail sector Deliverables: Identify a brand from the perceptual competitor map for further analysis and rationale for selection A completed SOSTAC worksheet for the selected brand The single biggest marketing opportunity for the selected brand to improve upon

63 Exercise 2: Creating a marketing plan You will be supplied with: Situation: A brand, some audience research, some challenges your business faces Objectives: A set of metrics to achieve Deliverables: Strategy: A positioning statement and rationale Tactics: An overview of media channels you d use Action: Show us a creative execution for one of your tactics: could be a storyboard for a TV ad, an idea for a press ad or a visual for in-store POS

64 Our Control What you will be measured on? The relevance of the customer insight Rationale and creativity of your positioning statement Relevance and appropriateness of media tactics Creative execution and message The metrics for measuring success

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