Table Of ContentGREG THAIN BT
RH
has been Chairman / CEO of
AA
marketing, trade marketing, DI
N SECOND
L
internet, consultancy, PR E & EDITION
and research companies, in the UK and Y
emerging markets. Over the last 20 years he
has owned or managed businesses in Russia,
India, China, Turkey, Hungary, Romania,
Greece, Ukraine, Sweden and Kazakhstan,
Completely revised and updated, Store Wars brings right up to date the S STORE WARS • Completely updated and revised, with new
working for many of the leading international
struggle between manufacturers and retailers for control of MINDSPACE data, examples and case studies.
FMCG and retail businesses. Currently adjunct T
and SHELFSPACE in developed markets, emerging markets and the internet.
professor of marketing and e-commerce • International, e-grocer and private label
O
at the International Monaco University This is a must-read book if you work in retail, FMCG, marketing or sections added.
(IUM), and Chairman of the Storewars consumer goods.
THE WORLDWIDE BATTLE FOR MINDSPACE AND SHELFSPACE, ONLINE AND IN-STORE • Retailers grow in power and expand
marketing business. He lives between Monaco R
Consumer marketing and consumer purchases, drive our modern world. The worldwide.
and Moscow.
world market is quickly dividing between a few mega-manufacturers that
E
• Manufacturers merge and takeover each
market worldwide and international retailers who are striving to catch-up
AHOLD ALBERTSONS ALDI AMAZON ANHEUSER-BUSCH AUCHAN
other in a desperate attempt to compete.
and dominate.
BAT CARREFOUR COCA-COLA COLGATE COSTCO DANONE DIAGEO
W
• E-retailing is growing quickly to 30% of total
Marketing for FMCG manufacturers and retailers is coalescing. Every FMCG EBAY GENERAL MILLS HENKEL JOHNSON & JOHNSON KELLOGG’S
JOHN BRADLEY
sales.
manufacturer must now understand retailers, their business and marketing KODAK KRAFT FOODS KROGER L’OREAL LECLERC LIDL MAGNIT
held international marketing
A
positions in Cadbury for 24 strategies, their strengths and limitations. Marketing for retailers involves, for MARS METRO NESTLE NOKIA PEPSICO PHILIP MORRIS P&G RECKITT • Fully updated and revised by Greg Thain
years before becoming a consultant and their mushrooming and complex Private Label ranges, adopting the portfolio BENCKISER SEARS TESCO WAL-MART X5 RETAIL GROUP 7-ELEVEN * and John Bradley, based on the original
R
writer. His first book, Cadbury’s Purple Reign, management and branding techniques of their suppliers. Never has it been book by Judith Corstjens and Marcel
was published in 2008 and John is a regular more important for each to walk in the other’s shoes. S Corstjens published in 1995. The views
commentator on the FMCG world in his expressed in the current edition are solely
adopted home country of Canada and the those of Greg Thain and John Bradley.
USA. John is currently working on his next
book, again jointly with Greg, on the world’s
leading consumer marketing companies;
provisionally entitled, The Mega-Consumer SECOND
EDITION
Companies, scheduled to be published
April 2013. * All brand names and product names used on the cover of
or inside this book are trade names, trademarks or registered
trademarks of their respective owners.
GREG THAIN &
JOHN BRADLEY
* All brand names and product names used on the cover of or inside this
book are trade names, trademarks or registered trademarks of their respec-
tive owners.
STORE WARS
STORE WARS
THE WORLDWIDE BATTLE FOR MINDSPACE
AND SHELFSPACE, ONLINE AND IN-STORE
SECOND EDITION
GREG THAIN AND
JOHN BRADLEY
A John Wiley & Sons, Ltd., Publication
This edition first published 2012
© 2012 John Wiley & Sons
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John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19
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Library of Congress Cataloging-in-Publication Data
Thain, Greg, 1954–
Store wars : the Worldwide Battle for Mindspace and Shelfspace, Online and
In-store / Greg Thain and John Bradley.
p. cm.
Includes index.
ISBN 978-1-118-37406-1 (cloth)
1. Retail trade. 2. Marketing. 3. Consumer goods. I. Bradley, John, 1957–
II. Title.
HF5429.T37 2012
381.'1–dc23
2012018039
A catalogue record for this book is available from the British Library.
ISBN 978-1-118-37406-1 (hbk) ISBN 978-1-118-37424-5 (ebk)
ISBN 978-1-118-37480-1 (ebk) ISBN 978-1-118-37481-8 (ebk)
Set in 11/15.5 pt FF Scala by Toppan Best-set Premedia Limited
Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK
TABLE OF CONTENTS
Acknowledgements vii
Introduction ix
CHAPTER 1 Shifting of power in the value chain 1
CHAPTER 2 Differences between manufacturers and retailers 23
CHAPTER 3 The fragility of a marketing orientation 37
CHAPTER 4 Retailers and the marketing concept 53
CHAPTER 5 The battlefield for mindspace and shelfspace 69
CHAPTER 6 The battle for mindspace 83
CHAPTER 7 The battle for shelfspace 101
CHAPTER 8 Creating a sustainable retail differential
advantage 119
CHAPTER 9 Private label 139
CHAPTER 10 Trade marketing 165
vi TABLE OF CONTENTS
CHAPTER 11 Internationalisation and emerging markets 193
CHAPTER 12 E-retailing 215
CHAPTER 13 The new order and its challenges 239
Appendix 1: Top private label manufacturers 265
Appendix 2: BRIC market snapshots 269
Index 277
ACKNOWLEDGEMENTS
We would like to thank all the team that have assisted us over the last
three years in the creation of this book.
Especial thanks go to Alexandra Skey, our researcher, who dili-
gently uncovered much new information; Alex Utochkin, who made
our initial charts; Ludmila Belokonova, the manager of the StoreWars
Business Simulation; and the other members of our team, Ekaterina
Voitenkova, Lavrenyuk Anastasia and Dariusz Kepczynski.
On the expert and academic side, we would like to thank Professor
Niraj Dawar of the Richard Ivey School of Business for his valuable
input and suggestions; Chen Junsong, professor of marketing CEIBS,
China, who gave us extremely valuable help on the China and Asian
markets; Nuno Bouça, our partner at Excel Formação in Brazil, who
helped us with information from South America; Tim Munnion, our
partner in Portugal; Stephen Kreeger, Managing Director of Metro,
Almaty, Kazakhstan, who gave invaluable insights into Russia and CIS;
and Fernando Zerboni, PhD and Dirección Comercial at IAE Business
School, Universidad Austral; Mikołaj Budzyn´ski, our partner at
Inspiraction, Poland; Marika Taishoff, PhD and Director of the Monaco
MBA at IUM, and Ben Aris in Moscow.
Thanks also to Planet Retail and AC Nielsen for their assistance
with charts and data, and our editor Tim Bettsworth.
viii ACKNOWLEDGEMENTS
John would like to thank his wife Audrey and daughter Georgina
for their unstinting support in all his endeavours. I would like to thank
my wife Katya and children, Sarah, Nick, Poppy, James and Magnolia
for their understanding.
Greg Thain
April 2012
