Table Of ContentRetail Power Plays:
From Trading to Brand Leadership
.......................................................
Retail Power Plays:
From Trading to
Brand Leadership
Strategies for Building Retail Brand Value
Andrew Wileman and Michael Jary
OC & C Strategy Consultants
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Business
© Andrew Wileman and Michael Jary 1997
Softcover reprint of the hardcover 1st edition 1997 978-0-333-68527-3
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as the authors of this work in accordance with the
Copyright, Designs and Patents Act 1988.
First published 1997 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
ISBN 978-1-349-14380-1 ISBN 978-1-349-14378-8 (eBook)
DOI 10.1007/978-1-349-14378-8
A catalogue record for this book is available
from the British Library.
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made from fully managed and sustained forest sources.
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Copy-edited and typeset by Povey-Edmondson
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Contents
List of Exhibits vii
List of Case Studies
X
List of Plates xi
Preface xiii
Introduction: From Trading to Brand Leadership 1
Part I The Context
1. The Growth of Retail Power and the
Brand-building Challenge 11
2. Are Retail Brands Different from Producer
Brands? 32
Summary of Part I: The Context 53
Part II Brand-building Strategies in Four Sectors
3. Repertoire Retailing: Fashion and Home
Lifestyle 57
4. Proximity Retailing 71
5. Category Killers 78
6. Grocery Retailing 90
Summary of Part II: Brand-building Strategies in
Four Sectors 108
Part III Managing Retail Brands
7. Managing Multiplicity: The Detail in Retail 113
8. Organising for Retail Brand Management 123
9. Investing in Store Brands 134
v
Vi
CONTENTS
10. Investing in the Brand-Customer
Relationship 153
11. Investing in Brand Integrity 168
Summary of Part III: Managing Retail Brands 176
Part IV Different Perspectives
12. The Financial Services Supermarket 183
13. The Producer Perspective: Partnerships and
Paranoia 196
Summary of Part IV: Different Perspectives 211
Part V Looking Forward
14. Retailing Without Frontiers 217
15. Multi-business Retailing: Sum and Parts 228
16. Home Shopping: From Mail Order to the
Virtual Mall 240
Summary of Part V: Looking Forward 251
Summary and Conclusion 255
Index 270
List of Exhibits
Exhibits
1.1 From trading to brand leadership 2
1.2 Retail brands and shareholder value creation 5
1.1 The retailing challenge: from value-chain power to
brand power 15
1.2 Relative volume and price, strong vs weak brands 17
1.3 Sustainability of producer brand leadership in
consumer goods 19
1.4 Retail sector classification and main product
categories 21
1.5 The world's most valuable publicly quoted retailers
(a) Equity market value 26
(b) Market value and financial performance 26
1.6 International comparison of top retailers' financial
performance 27
1.7 Carving up the UK food industry profit pie,
1982-95 28
2.1 Dimensions of retail market segmentation 34
2.2 Bases of retail brand differentiation 37
2.3 Main components of retail margin structure 43
2.4 Components of trading return on assets 44
2.5 Components of return on equity 45
2.6 Components of shareholder value 46
2.7 Long-term evolution of retail margin structure,
1950s-1990s 47
2.8 Wal-Mart: financial performance, 1985-96 48
2.9 Relative volume and price, strong vs weak brands
(recap) 49
3.1 The 'fulcrum' positioning of fashion brands 58
3.2 Burton Group: segmentation in the 1980s 60
3.3 Potential channels for fashion brands 64
4.1 Retail store density across countries 73
..
VII
viii
........L.IS.T. O..F .E.X.H.IB.IT.S. ...................................
5.1 Category killer market leaders in the USA, France
and the UK 79
5.2 Category killer growth: Home Depot in the USA,
1985-2000 80
5.3 Category mapping in electrical goods 83
5.4 Category mapping in childrens' goods 84
5.5 Category killer growth: Decathlon in France 88
6.1 Private label penetration across countries 91
6.2 Private label trend in UK packaged grocery,
1977-95 92
6.3 Cola market shares in UK supermarkets, 1994-95 94
6.4 Top 10 advertised UK grocery brands 95
6.5 Grocery margins, 1989-96: USA, UK and
Continental Europe 96
6.6 Private label penetration in US supermarkets,
1980-2004 98
6.7 Regional supermarket concentration in the USA 99
7.1 Managing the detail in retail 115
7.2 Brand sales performance KPI 120
7.3 Disaggregating brand sales performance 121
8.1 Conventional retail organisation structure 124
8.2 Unbundling the B&M function 131
9.1 Stages of store brand development 135
9.2 Indications of store brand opportunity: shelf price
vs rate-of-sale 139
9.3 UK grocers re-merchandising the wine category,
1984-94 141
9.4 M&S and Dewhirst: 10-year financial performance 148
9.5 Common evolution of brand structure in packaged
grocery categories, today and 2005-2010 149
9.6 Shift in US consumers' brand purchasing attitudes,
1970-95 150
9.7 Store brands in the French grocery market 152
10.1 Cumulative impact of brand marketing investment 155
10.2 Benetton' s advertising images 157
10.3 Customer base segmentation and targeting 161
10.4 Drivers of lifetime customer value in retailing 166
11.1 Price perception vs reality: French supermarkets 171
11.2 Profit-related pay schemes in leading retailers 172
12.1 The universe of consumer financial services 184
iX
LIST OF EXHIBITS
12.2 The retail financial services value chain 186
12.3 Growth of Direct Line Insurance, 1987-95 191
12.4 M&S in financial services 195
13.1 Performance of US consumer goods stocks,
pre/post-Marlboro Friday 200
13.2 Store brand penetration in grocery categories: UK 202
13.3 Category leader strategies: Nestle vs UB 203
13.4 UB financial performance, 1988-95 203
13.5 Cott sales and profits, 1991-7 209
13.6 Cott: peak to trough, 1994 vs 1996 210
14.1 European grocers in the USA 221
14.2 International growth of Toys 'R' Us, 1987-96 224
14.3 International expansion of Carrefour hypermarkets,
1960-2000 225
15.1 Japan's Daiei Group 229
15.2 Breaking up multi-business retailers: Melville in the
USA 238
16.1 Threat to physical retailing from the 'virtual mall' 247
List of Case
Studies
1.1 Marks and Spencer: Retail Brand Power in Action 29
2.1 Wal-Mart 47
3.1 The Burton Group in the 1980s -1 59
3.2 The Burton Group in the 1980s - 2 63
4.1 Boots and the chemist I drug store sector 75
5.1 Decathlon: store brand differentiation in the French
sports market 88
6.1 Sainsbury's Cola 92
6.2 Aldi and the European hard discounters 104
9.1 Re-merchandising categories 140
9.2 Early Learning Centre 146
10.1 Benetton 156
13.1 Nestle in coffee vs UB in biscuits 202
13.2 PepsiCo 205
13.3 Cott 207
14.1 IKEA and Habitat 222
X
