Nrf13 brasil varejo vencendo em um mundo com menos paredes

14/01/2013

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TEARING DOWN THE WALLS:Winning in a “wall-less” retail world

Bryan Gildenberg

Chief Knowledge Officer, Kantar Retail

Miguel Almeida

Vice President eCommerce, Walgreens

Anne Zybowski

Vice President, Kantar Retail

PRESENTED BY:

AGENDA

• Tearing Down the Walls

• Winning in a “Wall‐less” Retail World

• In‐Depth: Walgreens Omni‐channel Strategy

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Macro, Shopper, & Information ForcesExecution: I ran out of room or I couldn’t do it

ROI: I want to carry more, but I’ve run out of cash

Information

ShopperMacro Forces

Source: Kantar Retail analysis3

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Brand Positioning Falls into 4 Families: 4EsMust become broader than SKUs & categories sold

These quadrantsreflect strategies more so than channels, though store size obviously correlates quite strongly with strategy here


Fast Forward 50 Years… New EfficiencyAmazon tears down walls of the store

ROI: Jeff Bezosunpacks the power of unlimited non‐physical assortment

Execution: Technology and transportation change the art of the possible

Source: Kantar Retail analysis

Information

ShopperMacro Forces

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With Digital Retail Driving Change…. Boundaries again get dramatically altered

Dynamic pricing, limited inventory,

alternative revenue streams


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None of the 4Es Positionings Can Fend OffNew economics & efficiencies of post‐modern landscape


Must remove

the walls!

RETAIL’S FUNDAMENTAL PROBLEM TO SOLVE IS NO LONGER ABOUT WHAT SKUS AND CATEGORIES I SELL

It’s about understanding the need states retail

was using SKUs and categories to

optimize… and finding new positioning

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Rebuilding Value Proposition Without Walls


Need to rebrand these ideas around concepts that stretch beyond the store (or retail)

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AGENDA




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Creating New Shopper Moments:


4 Capability Clusters

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Small is Not Necessarily Convenient


Confectionery supplier after visiting Tesco Express & Sainsbury’s Local,

March 2012

“These are big box experts trying to drive a small box solution through

efficiency. These stores are actually the polar opposite of convenience”

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Convenience: Improving the NOW


Balancing 4 factors

Quick In /Out One‐Stop Shop

Easy Access Familiar

Impulse Stock Up

Immediate Planned

All four factors are present at all times – different retailers balance them differently;the mix defines the store model

Ease and Speed

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NOW Format Innovation: Click & CollectFrance is leading the way

Source: Kantar Retail analysis, quote from Lineares 2009

“We have the ambition to make Chronodrive.com the largest e‐commerce business in France”

Ludovic Duprez, co‐founder

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NOW: Everyone is a Convenience StoreKey skills to look for


Differentiated and Focused Stores:

• smaller, more convenient, more local, more memorable

Multi‐channel:

• your best retailer will be engaging your shoppers digitally as well as physically

Manage Shoppers Time:

• either by making the store experience more efficient, or so absorbing that the shopper feels the time is well spent

• It better be faster, easier – or a LOT more fun

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Experience is Not Just About Pretty Stores

Source: Kantar Retail analysis and store photos15

Experience must have a purpose: closing the sale

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Experience – Part of the WOWKey skills to look for


Retailers That Deliver on Experience:

• will make the visit more compelling than a website is easy

Ability to Execute:

• reliably, efficiently, from shelf condition to checkout – in stock and visible on shelf

On Trend:

• literally, having the Right Stuff is still vital

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Right: Local Market Sensitivity & Loyalty

Source: Kantar Retail analysis; store visits

Know thy Shopper

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Tesco studies shopping patterns and preferences of individual neighbourhoods to have the ability to appeal to local consumers. Tesco offers product mixes and price ranges that are aligned with local neighbourhoods.

Block‐by‐Block Analysis Block‐by‐Block Analysis

Right: Engaging Shoppers Via Store ExperienceNot your typical store loyalty

Source: Kantar Retail analysis and store visits; BrandZ18

BrandZ: Diagnosis of BondingRanked by importance of attribute in category

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Loyalty: Getting it RIGHT for the Right ShopperKey skills to look for


Know and Engage Their shoppers:

• whether analytical or intuitive, this is key to all else

Collaborative:

• Getting the supplier community engaged and aligned is a skill that attracts investment, and leverages the best of both sides of the desk

Masters of Their Own Brand:

• the clarity of the brand determines the ability to make decisions

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Shoppers Actively Creating Own Value

Source: Kantar Retail ShopperScape®, February 2010 and October 2011

Deal‐Seeking and Limiting Will Continue

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Behavior Changes In RecessionPlan for 2012 Type of Behavior

Taking advantage of good sales/deals 41% 54% Deal‐Seeking

Buying only things I truly need 40% 52% Limiting

Using more coupons 34% 48% Deal‐Seeking

Buying fewer things 33% 42% Limiting

Doing more price comparisons before purchasing 33% 38% Deal‐Seeking

Shopping less often 31% 34% Limiting

Using/keeping items longer before replacing 20% 30% Limiting

Buying only items needed in the near term 23% 28% Limiting

Shopping more at discount/value retailers 22% 28% Trading‐Down

Postponing more purchases 28% 25% Limiting

Buying less expensive versions of products 27% 24% Trading‐Down

Buying fewer luxury items 35% 24% Limiting

Buying more store brands vs. national brands 26% 22% Trading‐Down

Trading down to less-expensive brands na 16% Trading‐Down

Shopping online for more things na 13% Moving Online

Shopping online more often na 12% Moving Online

Using smart phone to compare prices while in stores na 6% Deal‐Seeking

Switching some purchasing to "auto-replenishment" programs na 1% Moving Online

Participation in Shopping Behavior Changes(among primary household shoppers)

V

Smart: Harder with a Well‐Informed Shopper

Source: Kantar Retail analysis & store visits21

Role of in‐store education & experts

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Smart: Everyone is a Value RetailerKey skills to look for


A Clear Value Perception:

• whether price based or based on something beyond price, a retailer must be worth something

Masters of Promotion:

• effective marketing that distinguishes the retailer, supports their brand, and is worth your investment

Financially Competent:

• It is hard to imagine a retailer who can deliver value without a keen management of their own finances – either through efficiency (ASDA), cost and margin control (Tesco), or a better business model (Costco)

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Must Master All 4 Capability ClustersOne is insufficient


AGENDA




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Omni-channel strategy

January 13th, 2013

Miguel AlmeidaVice-President, eCommerce

A company founded in 1901

32With $72B of revenue in 2012

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Featured in Jim Collins books

With a long history of innovation

Stand-alonestores withdrive-thru

pharmacies1992

MultiplelanguageRx labels

2002

1950Self-service

stores

1968First with

child-resistantcontainers

Pharmacieslinked bysatellite

1981

1999Prescription

history online

2005Online

digital photo

1960 1980 1990 20101950 1970 2000

1991Point-of-sale

scanning

OpenedFirst

Take Care2006

2010Refill by

scan

US Online and Web-Influenced Retail Sales($ Billions)

Source: Forrester Research (June 2012)

US online and web influenced as a % of

total retail sales 44% 45% 47% 49% 51% 52%

2011 2012 2013

Non-WebInfluenced

Retail Sales

Web Influenced Retail Sales

Online Retail Sales

1,672

202

2,977

1,723

226

3,155

1,741

252

3,313

2014 2016

1,780

3,6363,478

278

3,799

327304

2015

1,7711,812

In the next 3 years, over half of all retail sales will happen online or be influenced by online channel

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Customers are connecting with brands and retailers differently

Tablet ownership reached 19% of adult population

56% of social networkers have liked, followed or became fan of a brand, product or company

68% of online adults have a facebook account ; including over

50% of adults over age 68

More than 50% of mobile phones are now smartphones

We engage with millions of customers via our online properties and channels

Web Mobile

6,600,000 3,200,000 42,000,000visits per week visits per week reached per week

Social

Average annual spend,

2011

($) 3.5X 4X6X

Average Annual Spend per CustomerSource: EDW, eComm Analysis in $USD

Our multi-channel customers are more valuable

Store ONLY Store +

ONLINE

Store +

MOBILE

Store +

ONLINE+

MOBILE

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What omni-channel means for us

Our Strategy

Give our customer

…Whatever she wants …Wherever she wants …Whenever she wants

The Yesterday, Today, and Tomorrow ofWhat, When, and Where

yesterday “where we were”

24 hour pharmacy

WhatDaily Living

PhotoPharmacy

When5-7 day shipping

One hour photo

Product reviews

Where8,000 stores

Worksite pharmacies

Drive-Thru Take Care ClinicsWalgreens.com

Kiosk

today “where we are”


1-2 Day Shipping

1 hour web pickup

WhatDaily Living

PhotoPharmacy

WhenWhere24 hour pharmacy

One hour photo8,000 stores

Worksite pharmacies


Prestige Beauty80,000 new products

ImmunizationsContact Lenses

Creative Photo Products

MobileTablet

Drugstore.comBeauty.com

VisionDirect.comSkinstore.com

Kiosk

In store mapping

Pharmacy Chat

Product reviews

Auto-ReOrder

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tomorrow “where we’ll be”


1-2 Day Shipping

1 hour web pickup

WhatDaily Living

PhotoPharmacy

WhenWhere24 hour pharmacy

One hour photo8,000 stores

Worksite pharmacies


Prestige Beauty80,000 new products

ImmuniationsContact Lenses

Creative Photo Products

MobileTablet

Drugstore.comBeauty.com

VisionDirect.comSkinstore.com

Personalized Content

Consumer Health Tools

Boots Private LabelSame Day Home Delivery

International

Site to Store

Kiosk

Product reviews

In store mapping

Pharmacy Chat

Auto-ReOrder

Our Team

Success in Omni-Channel requires achieving best in class experiences both online and offline

Offline

Convenience of great locationsStrong and relevant product selection

Customer “Well” experience

Online

Extensive product assortmentPersonalized offers

Fast shippingUser experience

Omni-Channel

Seamless integration across all channelsSeveral fulfillment options to meet all customer needs

Omni-channel marketing messages

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We have been remodeling our stores

…building best in class ecommerce capabilities…

Social Local Mobile

>2MMFacebook Fans

in-store mapping

Exclusive Foursquare partnership

Top 10 mobile shopping app

Refill by scan

QuickPrintsNative Facebook Apps for Photos

>100KTwitter Followers

PassbookGeofencing

…and innovating in social, local and mobile

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While seamlessly connecting our physical and digital channels

Web PickupIn Store

Shopping

Same Day Home Delivery

Site to Store

eCommerce Commercial

The challenges

Channel conflict

Pricing models

Technology & Operations

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The key learnings

Innovate across the value chain

Be user centric

Test & learn

“If you always do what you always did, you will always get what you always got”.

- Albert Einstein -

Thank You.

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Bryan Gildenberg

Chief Knowledge Officer, Kantar Retail

[email protected]

PRESENTED BY:

Anne Zybowski

Vice President, Kantar Retail

[email protected]

Miguel Almeida

Vice President eCommerce, Walgreens

[email protected]

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Nrf13 brasil varejo vencendo em um mundo com menos paredes