What challenge(s) do our clients face?
Consumers, retailers, omnichannel, brand positioning, assortment, merchandising – there’s a lot to consider when designing the path towards your brand experience in the marketplace.
In today’s landscape, with consumers being more demanding than ever, a strong and differentiated brand experience is not only desirable, but critical to protect and grow market share. It is not uncommon for organizations to set aside multi-millions of dollars to improve their Point-Of-Sale (POS) experience, however beyond investment, there are a multitude of challenges we have seen our clients face across industries and geographies:
- Ensuring Connection Between Activation Levers: Designing complementary actions aligned with the organization’s strategy, priorities, and timeline, to drive a clear brand identity and experience at the point of execution
- Considering the Reality in Each Channel: Understanding how consumer needs differ across channels, and employing a segmented approach with each activation lever, rather than “one size fits all”
- Guaranteeing the Strategy is Implementable: Keeping the execution approach simple and pragmatic, to ensure the intended actions translate clearly to the Sales Teams’ execution for maximum impact
- Aligning the Organizational Structure and Governance: Reflecting the chosen strategy in the organization of the trade structure, and putting in place a robust governance to monitor execution, feedback results, and maintain connection between levers
- Staying Close to the Reality of the Retailer: Taking into account, while designing the strategy, that in any industry retailers can have very different realities, and even within a retailer, stores can have very different characteristics
How do we help?
We work with teams across your organization to design a tailor-made strategy, connecting all activation levers, differentiating approach by segment, and guaranteeing the feasibility of implementation
Using your team’s knowledge, our experience, and research in the field, we support clients to:
- Segment sales channels and stores based on consumer personas
- Define strategic objectives per segment, connected to the commercial strategy
- Define optimal portfolio per segment, based on analysis of portfolio performance
- Organize the pricing model and price positioning per segment
- Define investment per store and store coverage, based on analysis of each action’s impact on each consumer persona
- Simulate sales and cost impacts of any adjustments to strategy or execution
- Identify internal enablers for implementation and continued capture of shopper insights and sales intelligence
What are the benefits?
The Perfect Store generates benefits for your organization, retailers and consumers:
- Strategy aligned with reality: ensuring the organization’s strategy makes sense with each retail segment in the current industry environment, and captures potential growth opportunities
- Effective translation to execution: build buy-in from different functional areas across the organization, and monitor execution and results through a clear, robust governance
- Increase sales and service for retailers: strengthen relationships with retail partners, through delivery of a best-in-class consumer experience that meets their specific needs and drives volume growth
- Increase revenue: capture higher sales through a targeted SKU priority list per retail segment and category, with better customer conversion
- Optimize trade investments: target investments to increase ROI and eliminate ineffective actions
- Effective supporting structure: organize the internal structure to enable implementation, better monitoring and capability to adjust based on field feedback
- Develop future capability: document guidelines of the most effective activation levers and trade investments in each retail segment to support continuous improvement
How does it work?
Everything starts with consumer understanding, and ends with a full organizational alignment
Developing the perfect store is not just about the defining the right assortment, trade marketing approach, or pricing strategy. To truly deliver on brand experience, your vision must be reflected throughout the whole organization – from designing a strategy which is connected to the goals of the business, the reality of your retail partners, and needs of your customers; to effectively coordinating actions across multiple levers; and guaranteeing execution standards are met in the field. Team buy-in and cooperation is just as critical to success as setting the right price, and organizations targeting a perfect store implementation must be ready to take a holistic view when considering market challenges.
Every project and client brings a specific context, which must be understood and addressed when defining value-capture opportunities. Integration does not believe in a “copy and paste” approach – we work closely with all areas of your business to get to the root causes of pain points, leverage your knowledge of the field and bring relevant best practices to build a bespoke solution, preparing your teams to implement and manage in the long term.
Our approach is broken down into four phases:
Intrinsic to our way of working is building collaboratively. We will never know your business as well as you do, nor do we pretend to – from our experience, the best solution relies on a combination of your knowledge and our technical expertise, supported by buy-in across the organization. Throughout the project we use internal interviews, stage-gate decision making workshops, multi-functional design workshops and day-to-day engagement with your team to make sure every area of the business has their needs recognised and answered by the project, and each professional is ready to implement from day 1.
Our client, an international home appliance business, was struggling to differentiate their value proposition and activation levers for each of their two major brands. Previously they had employed a “one-size-fits-all” approach across customers, and seen different results across brands and categories which did not meet set objectives.
The client reached out to Integration to support the development of a tailor-made perfect store strategy, with the aim of delivering best-in-class in-store execution and driving sales and brand value growth.
Working alongside the client, Integration carried out a comprehensive analysis of the retail environment, evaluating the brands´ fit for each retail segment, and defining clear objectives per brand connected to the relevant strategy.
For each segment, we determined the optimal portfolio mix based on sales performance and value proposition, and prioritized activation levers to meet customer needs.
To ensure the strategy and activation plan was successfully rolled out, we prepared an implementation plan with key activities, dates and roles and responsibilities for the internal team, and launched a project governance to provide leadership with the necessary visibility of project progress.
The new strategy revitalized each brand´s positioning, strengthening their market presence and qualifying their team to choose the best SKU mix and trade marketing levers per retail segment. Through the implementation, the client achieved +14% revenue sales and +20% gross margin.
A leading footwear business had perfected their distribution model to meet targets in food retail, but was struggling to perform in specialized footwear retail. The client requested Integration’s support to redesign their complete go-to-market strategy to achieve comparable results (numeric distribution and market share) across both retail types, and to define and implement the perfect store to simultaneously drive sales.
We redefined the market segmentation used by the business, and designed a clear value proposition and objectives per segment to drive growth in weaker areas without damaging the food retail position. It was clear from the analysis of segment characteristics that there were specific needs in footwear retail that had gone unaddressed – so per channel, we revised the portfolio mix and activation levers, supporting the trade marketing team to allocate trade budget effectively according to segment goals.
The redesigned strategy provided clear guidelines for serving each market segment, and an action plan to transition from the current operation. The project allowed the company to specialize their operation, capturing an additional 9p.p. of market share in specialized footwear retail, while maintaining their strength in food retail.
OUR INDUSTRY EXPERIENCE
Integration has had the pleasure of working with many national and international organizations across sectors, with a particular emphasis on consumer goods. We have delivered projects at different scales for different challenges, from redesigning the entire approach to value proposition activation, to targeted reversals of specific issues. Our international experience equips us with a wealth of benchmarks and insights from around the world, enabling us to be creative in the solutions we bring.