building a brand from the inside out - retail merchantsmar 05, 2010  · brands that engage...

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Building a Brand from the Inside Out

Things are changing

After the recession is over:• 84% will consolidate errands to save gas• 77% will pay with debit/cash and not use credit/borrow• 73% will shop more at discount stores• 69% will buy in bulk• 59% will cut down on use of everyday items• 57% will stay at home more

Over 93% of adults have done something to save money in the past month.• 70% bought something because it was on sale (+3 points from 2008)• 67% bought a cheaper brand (+5 points from 2008)• 86% of adults say that when unemployment rates decline and there are fewer layoffs, this will mean the economy is getting better.• 36% of adults say they’re shopping at discount stores even more than a year ago (even higher for Gen Y – 45%)• Upscale department stores and clothing chains remain out of favor, with 46% and 41% saying they’re shopping at them less.

The reality…

Source: “How America is Shopping”;GFK Roper webinar, Sept. 200 9

The new world

• As a result of the recession, consumers are shopping more locally, more frequently, and shopping more at discounters or on-line, with luxury retailers and department stores being the largest casualties.

• “Recession chic” has become cool. The downturn has given rise to a new consumer group, dubbed “frugalistas” - women attempting to find ways to live frugal lifestyles while remaining fashionable.

• Buying designer labels at knock-down prices is giving consumers a sense that they have gotten more value for their money (think TJ Maxx and Marshalls), and top fashion designers like Jimmy Choo and Vera Wang are producing high quality lines at budget prices (can you say H&M and Targét???). Source: “The New Era of Thrift: Changing Spending Habits in the Face of Recession”, Euromonitor International, August 2009.

The new world……

• Consumers will not just buy discount brands, they will scrutinize products more, and buy those that they perceive as being good ‘value. Therefore in 2010, those brands that engage consumers effectively stand to be successful despite current barriers such as price.

• The more confident shopper will shift dollars to brands that offer more than the basic value = price equation. Retailers must lure shoppers by differentiating the brand with stellar customer service, unique product, and engaging shopping experiences.

The new world……

Source: 2010 Consumer Trend Predictions, Mintel, 2009

Source: Retail 2010, Iconoculture, 2/22/10

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Why We’re Here

Components of a strong brand

Clear definition of who they are.

Have a signature look.

Well-known for one thing.

Leave a personal mark.

1 Define who you are (and who you’re not).1

In order to define who you are, you have to know who you are.

• Why are you in business?• What are your strengths?• What are your weaknesses?• What do you want people to say about you?

Every brand is different. The point of branding is to distinguish youfrom the competition.

Define who you are (and who you’re not).

A whirlwind of pleasures and vices.

We are cool enough and serious enough for competitive athletes (so you should buy our shoes, too).

Define who you are (and who you’re not).

2 2 Become well-known for one thing.

What’s the message?From the logo to the collateral, are you communicating an instantly comprehensiblemessage?

Does the customer care about what you’re saying?It may be a great message, but the whole point is to motivate sales. Does it do this?

Establish a clear and meaningful message. Then repeat.Don’t change the message; and communicate it consistentlythrough everything.

Become well-known for one thing.

Become well-known for one thing.

Kids, kids, kids

Become well-known for one thing.

Local, local, local

3 3 Create a signature look.

Design with consistency in mind.From the logo to the collateral, does your marketing and advertising instantly displayyour signature look?

Test your message.Share several of your marketing pieces (ads, collateral, website) to a total stranger.Do they describe your company traits the same way you would?

Consistency, clarity and repetition = Recognition

Create a signature look.

Create a signature look.

Create a signature look.

4 Leave a personal mark behind.4

Validate customer expectations.Your personal mark should reflect your brand message.

Deliver on your promise.If you base your brand on excellent service, you must deliver on that promise.

If the customer’s experience doesn’t match his or her expectations, yourimage will become negative. You will lose the customer’s trust.

Leave a personal mark behind.

Personal service with groceries loaded into your car.

“My pleasure.”

Leave a personal mark behind.

Components of a strong brand.

Become well-known for one thing.

1

2

Define who you are.

4

3 Create a signature look.

Leave a personal mark behind.

The End