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Retail Marketing
1. PESHWA ACHARYA
MARKETING CHIEF
RELIANCE RETAIL
We modelled the Reliance Retail Marketing Department on TESCO lines ..
How to Set up a robust Retail Marketing Department
2.
3. •Tesco UK core business (Extras,
Superstores, Metro, Express)
•Tesco International
•Non Food (clothing)
•Retailing Services (Dot.com,
Tesco Personal Finance,
Telecoms)
Tesco has a 4 point strategy:
4. Core Purpose
To create value for customers
to earn their lifetime loyalty
Our Values
No-one tries harder for customers
Treat people how we like to be
treated
5. Every Little Helps is customer speak for our values and is a
broad summation of Tesco at it’s best
The expression of our Values
An Every Little Helps Shopping Trip
and
A Great Place To Work
Through
Which are
No one tries harder for customers
Treat people how we like to be treated
The way we work
and
The way we behave
Which means we deliver
is
Shopping Trip
•The aisles are clear
•I can get what I want
•The prices are good
•I don’t queue
•The staff are great
No one tries harder
for customers
The way we work
•We deliver consistently everyday
•We aim to get it right first time
•We make our jobs easier to do
•We know how vital our jobs are
•We always save time and money
Better for customers, Simpler
for staff and cheaper for Tesco
A Great Place To
Work
•To be treated with respect
•A manager who helps me
•An interesting job
•An Opportunity to get on
Treat people how we like to
be treated
The way we behave
Living Service Expressions
What part does the Marketing Department play?
6. Drive trade
through
Every Little Helps
The Tesco Marketing Philosophy
Understand customers better than anyone
Delivering the
Every Little
Helps
shopping trip
Drive trade
through
Every Little
Helps
Saying
‘Thank
you’
Marketing
Making
Tesco
available
7. Insight Unit - the role of Customer Understanding
Anticipating customer needs
Championing the customer
voice in the business
Guide and measure the
business
8. Insight Unit - Who we are what what we do
Meet customer needs by matching store format to
locationSite Research
Market Research
Insight Analysis
Strategic Insight
Customer
Question Time
Monitor and track the health of the business, identify
changing customer needs, understand current customer
issues, and ensure our initiatives are right for customers
Guide business strategy through our insight on
customers, property and our people.
Analyse how customers are behaving and how we
are performing as a business.
Research customer lifestyles and the shopping
experiences in our stores to ensure the business
reflects customer needs.
Combined analytical experience = the full story = competitive advantage
The Power of Joined Up Thinking!
9. Insight Unit - Our Key Outputs
A small selection of Insight reports that illustrate the power of
joined up thinking
World class insight is at the heart of the business
UK Business
Expansion
Report
Customer
Spotlight
Blue Books
Brand Review
Customer
Question Times
People
Spotlight and
People
Review
Express and
Non Food Brand
Reviews
Switching
Analysis
Sales Forecasts
for new stores
New space
development
strategy
Trade Reports
Competitor
Analysis
10. Insight Unit
Understanding customers better than anyone is the basis of the
Marketing Department.
There are 3 broad reasons why we seek to understand
customers
Anticipating customer needs
Championing the customer voice in the business
Guiding and measuring the business
The Insight Unit is made up of five key teams - Site Research,
Market Research, Strategic Insight, Insight Analysis and
Customer Question Times (CQT)
Joined up thinking across Insight enables us to understand the
full story and gain competitive advantage
Our key outputs ensure world class insight is at the heart of the
business
11. Stores Marketing
Core Purpose
To preview & review all stores on the development programme, to
ensure the best offer for the local customer is delivered in the
individual stores
To flex the existing levers to tailor the store for the local customers &
continue to develop new levers with the relevant owners
To work with local marketing to turn around under-performing stores
& assist in the understanding of reasons for poor performance
To help the business to prioritise which elements of the functional
Every Little Helps shopping trip needs to be addressed for
customers
To bring customer understanding & shape cross functional projects
which are focused on the agreed business priorities that will make
the shopping trip easier for customers (or impact on it)
12. Stores Marketing
Key Outputs
Stores Marketing Group review papers which ensure the customer is
considered in the property planning process. The papers cover:-
Agreement to Food / Non Food Square Footage
Solutions to key Customer issues highlighted from
quantitative (Oxford Research) & qualitative (CQT) research
Agreement to include food counters & cafe – Deli, Fish, Meat,
Salad, Pizza, Chicken, Olives, Takeaway
Agreement to include non food services – Photolab, Pharmacy,
Opticians, Jewellery Counter
Agreement to include other Services – Car Park Controls, Bus
Service
Agreement to include additional range requirements e.g. Ethnic
13. Local Marketing
Core Purpose
To launch new stores in all formats to achieve sales targets
To market our refitted and extended stores
To defend against competitor new stores / extensions / conversions
that are forecast to impact sales at any of our stores
To turn round sales in under-performing stores and assist in the
understanding of reasons for poor performance
To test trade driving tactics at a local level before they get
implemented by the national team e.g trial of various petrol promotions
To champion trade initiatives and brand building across specific
groups of stores: - e.g London advertising campaign in 2004
14. Local Marketing
Key Outputs
Highly targeted marketing campaigns that are made local by use of customer
insight, Clubcard data and local knowledge. Local will use the same tactics as
national but on a micro level - these include: -
• Mailings to Clubcard / non -Clubcard customers
• Coupons at till
• Advertising - press, radio, outdoor, other media (e.g. adbikes, blimps)
• Petrol promotions / Clubcard points promotions
• PR and events (e.g. launch events, celebrity chef events, community
sponsorship / donations)
• In store Clubcard sign up
• Store specific non-food offers
• POS to communicate store changes
• Leafleting campaigns
Local deliver over 350 bespoke marketing campaigns per year
15. Local Marketing - Key Takeouts
Local marketing plan and deliver campaigns for all store launches
from new stores & extensions to impacts and underperformers
All campaigns are are highly targeted and relevant to the local
population. They are built using a wide range of customer insight,
Clubcard data and local knowledge
Local use the full tool box of national marketing tactics at a local level
16. Price Team - Core Purpose
The role of the Price Team is as follows: -
Set strategy and direction for company on price
Monitor and report against price policy
Help to communicate our great price position to customers
Deliver price insight to the business
The Price Team has several key activities: -
Price Basket
Internal hierarchies
Comparatives
Ad-hoc checks
17. Price: Key processes
Price Basket
Weekly checks on over 20,000 lines against Asda, JS, Morrisons
Reporting to Commercial and wider business
Price Checker and Price Claims
Internal Hierarchies
Ensuring bigger packs give better value, and Tesco own label is
cheaper than branded equivalent
Comparatives
Shopping 100s of products to make in-store claims highlighting that
we (a) match Asda and (b) are cheaper than other competitors
Pricing have the accountability for maintaining our price position versus
competitors and ensuring the business gets cheaper for customers
18. Promotions Team - Core Purpose
The role of the Promotions Team is to
Set strategy and direction for company on promotions
Monitor and report on Tesco promotions against promotion
policy
Monitor and report on competitor promotional activity
Respond to short term competitor activity as required
The promotions policy is driven by the Helping You Spend Less
customer plan objectives
Even fewer, even better promotions
Neutralise Morrisons on feature space promotions
19. Promotions: Key processes
Internal tracking and reporting: Monitor Tesco promotional activity against
agreed KPIs and key measures
Feature space conformance tracking: Track Tesco store conformance with
communicated feature space plans
Competitor tracking and reporting: Monitor competitor promotional activity
through store audits
Lidl half price: Track Lidl half price activity and mobilise business to respond
Seasonal event tracking: Event specific promotions reporting on major events
eg Christmas and Easter
The promotions team are responsible for setting promotional strategy
and tracking Tesco promotions relative to this
Promotional strategy is driven by the customer plan objectives
Even fewer, even better promotions
Neutralise Morrisons on feature space promotions
20. Trade Planning - Core Purpose
Trade Planning’s core purpose is to set the trading priorities for the
business, which means,
Right for Customers
Simple for stores
Delivers ‘like for like’ growth
Supports the Every Little Helps Shopping trip
Trade planning does 3 interrelated things:
Manage the
52 wk Trade Plan
Review Trade Forecast Sales
21. Trade Planning: Key Processes
TPG (Trade Planning Group) - periodic
WL5 directors from Marketing, Supply Chain, Retail and Commercial,
facilitated by trade planning who meet every period to:
Review trade and learning's for the period just completed
Agree the trade plan going forward and resolve any issues
TPO (Trade Planning Operations) - weekly
Cross functional group (trade planning, retail, supply chain) and managers
of small events (less than £10m), e.g. Pancake Day, St Patrick’s Day,
Ramadan
Brand Comms - weekly
Plan the alignment of TV, Press, Tesco TV, Publishing, Price News and
Point of Sale
Non Food Trade Planning and Great Seasonal Events
Manage Seasonal space (power aisle 1 and grocery seasonal aisle)
Great Seasonal Event Managers manage the events > £10m, e.g. Mothers’
Day, Halloween
22. Feature Space Management - what is it?
Feature Space and Seasonal Space is the most prominent space in the
store, with the highest customer footfall.
Feature Space = Promotional ends and OFDs (Off Fixture
Displays). Usually promotions.
Seasonal Space = Power aisle 1 and grocery seasonal aisle.
Usually seasonal ranges.
23. Feature Space: Core Purpose
Core purpose is to make best use of feature space, which
means:
Right for Customers
Seasonally relevant
Supports Trade Plan activity
A good mix of product types for customers
Fit promotion policy (e.g. minimum discount 20%)
Simple for stores
Simple to put on sale and exit
Products fit space efficiently
Delivers ‘like for like’ growth
Each end has a hurdle rate, depending on its location
and distribution
Supports Every Little Helps Shopping trip
Especially “Aisles are clear” and “I can get what I want”
24. Advertising - Core Purpose
Primary Objectives
To project our brand values through an emotional connection with
our customers.
To build brand trust and loyalty.
Secondary Objectives
To communicate our strongest trade drivers and promotions to
encourage customers to come into our stores.
25. Advertising - Key Outputs
TV & Press Every Little Helps Brand Campaign
The Every Little Helps campaign is used to make people like their Tesco
more
The campaign revels in the small things that Tesco does e.g. bag
packing, 24 hour opening, low prices as evidence of our philosophy
The advertising is a direct, down to earth conversation between Tesco
and the customer (instead of an advertising mechanic that sits apart
from the brand)
Cherokee TV Campaign
Bi annual TV campaign that supports the Cherokee range of clothing at
Tesco
Gives Tesco clothing credibility versus the likes of Next and Gap
‘Design by Cherokee. Price by Tesco’ caption (strap line) emphasises
the strengths of the two brands
26. Advertising - Key Outputs continued
Trade Driving TV & Press
Supports the key trade drivers highlighted by the trade plan
The ads are simple straightforward visual of featured product and lets
the offer speak for itself, whilst being clearly branded as Tesco.
Press is used to support offers when a quick turnaround is needed –
can be done in days versus weeks for TV
Supplier Funded Advertising
Paid for by the supplier but we ensure that they are simple, honest,
transparent and are clearly branded Tesco & the media selected targets
our relevant customers
Strict criteria ensure only the strongest prices and promotions are
advertised
29. Publishing - Core Purpose
The role of Publishing is to support and build a positive image of
the company with customers.
We do this in Two principle ways;
Development of an emotional connection with our customers,
showing them that we understand them and are on their side.
Communicating our product ranges and great prices
to-
Drive our price image with price sensitive customers,
Increase and drive footfall into non-food
Generate awareness in upmarket customers that we have great
quality and range at market leading prices
30. Publishing - Key Outputs
Magazine
Written to compete with new-stand publications
4m readers 3rd largest circulation magazine in the UK- bigger than
all the leading women’s glossies added together
Average retention time 14 days, average reading time 42 minutes -
both highest in the industry compared to the average of 28
minutes for other publications. Although the magazine is not used
as a hard marketing tool, research tells us that 50% of readers will
buy a food item, 29% a non-food item and 27% a clothing item - if
it is featured.
Price News - leafleting
Protects existing customer base and encourages defection from
competitors
Standard version influences price image covers mainly food and
household aimed at competitor conflict areas - 4m circulation
Non-food version aims to drive footfall and price image - aimed at
extra store catchment areas - 4m circulation
31. Publishing - Key Outputs
Tesco TV
Provides “Talking Tesco” content to the revenue generation inspired
In-store TV service. Every Little Helps information, recipes, hints,
tips and product information.
Store Finder
Map booklet showing all of the stores in the UK with accurate
directions how to find them - 1m circulation
Internet
Price check - compares our prices with our leading competitors
Today at Tesco what’s key in store this week
Store locator services- Search for the right store for you, get
directions to your local store and see what ranges, services and
opening hours it has.
Internet magazine proposition being developed
32. “Tesco send me a
Thank you”
“I spend my
Vouchers”
5 Club
Mailings
Statement CaT
“Tesco give me coupons for
things I already buy or they think
I’d like to buy”
“I collect Clubcard points as
I spend in Tesco”
Extended Brand - TPF,
Telecoms, Non Food
Shopping in store or
on dot.com
Points
Partners
e.g.
Powergen
CLUBCARD
The Virtuous Circle
Clubcard
Statement
Deals x4In Store
Extended
Brand Deals
Online for
shopping and
deals
33. Trade Driving
Club Mailings
CLUBCARD
Who we are what what we do
Direct Mail
Operations
Customer
Management
Targeted mailing - touching over 12m
customers, with over 8m variations
Introducing customers to Clubcard
and helping them get the most from it
Permission based mailings -
including specialist advice and
relevant coupons
Timely, targeted offers to Clubcard
customers
Making Clubcard more rewarding
through the extended brand
Measuring and supporting Clubcard
use in the business
Clubcard Statement
Managing Penetration
Retail Services
Coupon at Till
Welcome Pack
A new system which will offer better data and business
processes to help the business to grow customer loyalty
Freetime Deals Service where customers can get x4
value from their Clubcard Vouchers
Slippage and Gone Aways
Strategic Mailings to boost trade
Timely mailing to retain customers
with declining loyalty
Thank you/brand builders
Raising the profile of CC
34. CLUBCARD - Key Take Outs
Clubcard continues to have fantastic success in the UK
Over 12 million customers currently receive a Clubcard Statement
With approximately 8 million unique variations - each time
Clubcard penetration is currently 73%
Saying ‘Thank you’ drives trade
Most customers see points as more valuable than money
Club mailings grow the breadth and depth of customer loyalty
Coupons are tightly targeted
You buy a lot of sausages? You get a sausage coupon
Coupons at till target a new set of customers every two weeks
It acts as an incentive - but secondary to reward
Clubcard rewards customers across the entire Tesco brand
From your groceries to broadband connection!
35. Customer Plan - Core Purpose
The Customer Plan is a group of year-long projects which must
Drive our ‘like for like’ sales
Deliver a step change in the Every Little Helps shopping trip
Need more than one function + dedicated resource to deliver them
They are the Number 1 priority for the business each year and
feed into the Customer quadrant of the Corporate Steering
Wheel
Each project has board-level support
The Customer Plan embodies our philosophy that customers will
tell us our direction for the year ahead
It supports our core purpose of creating value for customers to
earn their lifetime loyalty
This keeps us ahead of the competition
36. Customer Plan - Key processes
Phase One
Identify and agree key
customer
opportunities
Phase Two
Develop solutions to
key opportunities
Phase Three
Implement Monitor
Review
BRAND REVIEW
Research/Report
February - September
Planning
October - February
Launch Customer Plan
March
Project brief Writing
October - December
Project Solutions
December - February
Examples of projects:
•Fresh & Full Meat & Poultry
•Strengthening our appeal to ethnic customers
•Helping you live more healthily
37. Who we are
Vacancy
Insight & Site Research
Acting Director of Marketing - UK
Ian Crook (also Trade Planning, Advertising & Customer Plan)
clubcard & Services
Stores & Non Food
Price, Promotions &
Publishing/POS
Clubcard Scheme, Mailings, Clubcard Deals
Service Initiatives
New Stores, Local Marketing, Store Marketing Express Marketing, Non
Food Marketing
Price News (Tabs), Price Basket, Price/Promotions Planning
Process Management,
Site Research, Customer & People Insight, Market Research, CQTs,
Customer Plan Development
Marketing Finance
Personnel Manager,
Marketing
Personnel
Finance