1. New:From Retail to WE-Tail: thefuture of retail communication.

2. The retail experts that contributed tothis study.Andreas Conze | Head of MarketingMichael Schellenberger | Managing DirectorDr. Adrian Kiehn | Member of the Management boardMarcus Haus | Marketing DirectorDominic Burch | Head of PR & Social MediaBryan Roberts | Retail Insights DirectorSteve Mader | Senior Retail Analyst DigitalRuth Leach | PR responsible for Social Media 3. ForewordThe retail landscape has changed dramatically over the last 10 years. New technologies have forcedretailers to rethink their business models and the way they will engage with consumers and shoppers in thefuture. I think that a lot of retailers are facing up to the fact that the world is omni-channel or multichannel.The point is that retailers have to realize that they need to engage with shoppers whenever and whereverthose shoppers are thinking about purchasing. says Bryan Roberts from Kantar Retail in the latest Brand Zreport about the most valuable Retailer Brands in 2012.During that period of time weve seen a pure-play e-commerce retailer, Amazon, become the most valuableretailer brand in the world. The role of the physical store has changed moving away from merchandisingproducts to offering unique brand experiences. To put it in the words of Vittorio Radice, CEO of leadingItalian department store La Rinascente, We want to be the place where we know that the people shoppingthere are not actually shopping for products, theyre shopping for an experience.This transformation is happening everywhere. Discounters have recognized the need to reinvent themselvesand provide better quality and service instead of just cheap prices as evidenced by the move of Aldi Sd inGermany who is planning to grow the share of branded products in its assortment to as much as 25%.Shoppers should no longer be called shoppers if one thinks about the traditional definition: One who visitsstores in search of merchandise or bargains. The times when people were searching for just merchandiseor bargains are gone. The explosion of social media and the many possible brand interactions have createda new breed of shoppers. These people want to have a say in what is sold, they join forces to gain betterprices and are more than happy to share their experiences if they feel listened to.So how do retail brands strive in such an environment? How will they engage with the new breed ofshoppers? What does the future of retail communication look like? These are just some of the questions wewill raise in this study and we hope that youll find the answers interesting. Alessandro Panella Managing Director at Grey Worldwide 4. Communication has turned upside down. 5. From thinking in communication channels ... AWARENESS CONSIDERATION SELECTION PURCHASE LOYALITYPAGE 6 6. to a world of opportunities to engage. UPLOAD PICSDISCUSSOF VIDEOPRODUCTSONLINEVIEW VIDEOSEE TV AND OOH ADSRESEARCHPRODUCTVISIT A PURCHASESTORE PRODUCTREADFACEBOOKFEEDS INTERACTREAD WITH RICHREVIEWS MEDIA ADCUSTOMIZE A PRODUCT CREATE/ UPLOADVIDEO SEND MOBILE PICPAGE 7 7. From one way communication PAGE 8 8. ... to dialogue. TALK SHARE LISTENPURCHASEPAGE 9 9. Everybody talks with everyone about everything.And all expect answers.PAGE 10 10. GREYThe Shitstorm* *Germanys Anglicism of the year 2011 ShitstormPAGE 11 11. The truth will always win** but will not always appreciated. You can ask Mr. Assange.PAGE 12 12. Everyone gets checked upon: politicians...*Guttenberg and other false prophets.PAGE 13 13. ... just like brands and companies. 14. The Consumer 15. The Consumer is the Boss**(A.G. Lafley, P&G 2000). 16. You can always sell cheap* *but the consumer will always find someone cheaper. 17. The Price.The end of an era. 18. Retailers are using new technologiesto make price less relevant. 19. The best way to predict the future isto create it.**Peter F. Drucker 20. Three steps towards a bright future. RETAIL? ?PAGE 21 21. Step 1:Brand differentiation. 22. The most successful retailersare brands. Brand Value $M Brand Contribution Brand Momentum Brand ValueChange 1 Walmart 34,436 25 -8% 2 Amazon34,077 310-9% 3 Tesco 18,007 49-18% 4 The Home Depot12,968 25 31% 5 eBay12,662 38 18% 6 Target10,506 34-16% 7 ALDI9,310261% 8 IKEA9,20639 26% 9 Carrefour 7,83635-43% 10Auchan6,79939-13%Source: BrandZ Most Valuable Global Retail Brands 2012 23. Total brand promise**REWE - One brand promise across all touch points: Everyday a little better. 24. A way of living.Instead of just furniture*.*Ikea sell more than just furniture it turns a house into the home of your life . 25. Delivering happiness.Not only shoes*. *Zappos mission is to WOW consumers by delivering happiness! 26. Globetrotter:kein Laden, sondern eine Erlebniswelt.GREYDiscovery.Not just a store*. Soll hier noch was stehen?*Globetrotter is not your regular store, its a world to discover.PAGE 29 27. Reading in the past. 28. Reading today. 29. Many brands have taken the first step.RETAIL?? Product & pricedriven Brand differentiation Brand superiorityPAGE 32 30. Being one of many retailer brands wont be enough to differentiatein the future.PAGE 33 31. Step 2:Insight-driven and customized brand experience.RETAILYOU-TAIL? Product & pricedriven Brand differentiation Brand superiorityPAGE 34 32. Insights need to have a human truth at their core.PRE-BUY SHOPPERCATEGORYINSIGHTSINSIGHTSINSIGHTS CONSUMER/ RETAIL BRAND INSIGHTSINSIGHTSPAGE 35 33. Youre not you when youre hungry.* *Snickers 34. HeadlineInnovative technologies & big data help uncover new insights.PAGE 38 35. Tesco transforms customer information into unique shopper insightsShopper Insight:Customer card:+ Reseacrh results aboutWhen it comes to babyproducts, mothers shop atpharmacies, because they trustInformation about products that products that are hardlythem more than Tesco.are bought regularily.bought, for example youngmothers buy rarely products forbabies at Tesco. Source: McKinsey Quarterly capitalizing on customer insightsPAGE 39 36. and use these insights for innovating inproducts/services.*Result: +40% business volume within 3 years. Source: McKinsey Quarterly capitalizing on customer insights 37. Asda Customer feedbackinfluences the choice of suppliers. 38. Retailers are putting social media at the heart of the business to driveshopper-centricity. Human-resources Investor- Insight relationsSocial We realized that everything (including payment) will eventually be condensed into mobile phones, soMarketing Direct embarking on a social media strategy made total sense. CustomerBuyingservice Source: Kantar RetailPAGE 42 39. NIKEiD: shoes have to fit the outfit. 40. Dominos Pizza: create your personalPizza with your own hands. 41. Turning the subway into atouchscreen supermarket **Home plus (Tescos name in Korea) lets people shop in a virtual market while waiting for the tube . 42. The supermarket navigator* *SK Telecom navigates shoppers through supermarkets.. 43. YOU-Tail brands createrelationships... 44. that turn shoppers into fans. 45. You-Tail brands turn shoppers into fans.RETAILYOU-TAIL ? Product & price Insight-drivendriven Individual Brand differentiation Engagement Entertainment Brand superiority ExperienceSHOPPER FANSPAGE 49 46. WE-Tail brands create a whole newrelationship to shoppers 47. The future of retail communication.RETAILYOU-TAIL WE-TAIL Product & price Insight-drivendriven Individual Brand differentiation Engagement Entertainment Brand superiority ExperienceSHOPPER FANSPAGE 52 48. Converse turns fans into shoedesigners. 49. Conrad turns fans into productdevelopers. 50. Best Buy turns fans into in store designers.PAGE 55 51. Loblaw: Fans design and improveown label brands. 52. Asda: Fans help make the productstaste better. 53. Amazon turns fans into traders. 54. McDonalds: The first crowdedburger. 55. Tesco and Ferrero invite shoppers tobecome the new face of Kinder chocolatein the UK. 56. Carrefour lets shoppers decide aboutthe next promotion. 57. The Peoples Supermarket turnsclients into part-time employees. 58. The future of retail communication.RETAILYOU-TAIL WE-TAIL Product & price Insight-driven We-Insight-drivendriven Individual Co-Creation Brand differentiation Engagement Entertainment Brand superiority ExperienceSHOPPER FANS PARTNERPAGE 63 59. Where is your brand on the journey from RETAIL to WE-TAIL?Lets discuss.RETAIL YOU-TAILWE-TAIL?? ?PAGE 64 60. Alessandro PanellaManaging Director & Head of Strategic PlanningGrey WorldwidePlatz der Ideen 140476 DsseldorfE-mail: alessandro.panella@grey.deF: +492113807444M: +491726634941 61. CopyrightGREYAll the ideas presented and/or parts thereof and their implementation shall be the intellectual property of GREY Worldwide GmbH, for which we claim the copyright. They areinitially only presented confidentially in the context of the relationship of trust created with the customer by the envisaged contract.Any direct and/or indirect exploitation and/or emulation of any of the ideas and/or parts thereof, implementation thereof and/or the use of any documentation provided shall onlybe permissible after our consent has been provided in writing. The same shall apply for any modifications that may be made. Layout pictures and/or other picture material shallbe used only by way of example to illustrate the visual design, but shall not be binding for the final implementation.Their use in the context of the final implementation and/or production shall be permitted with the proviso that they are actually available and insofar as this does not contravenethe rights of third parties. A contractual penalty of 50,000 euro shall be regarded as agreed on for any violation of the aforementioned points.PAGE 66 62. GREY PLATZ DER IDEEN 1, 40476 DSSELDORF, GERMANYPHONE +49 211 3807-0, FAX +49 211 3807-367DUESSELDORF@GREY.DE, WWW.GREY.DEGREY WORLDWIDE GMBH