Page 39 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | Thought Leadership

A SEAMLESS

When we talk about the “future of retail” most are in ‘top-up’. The result of this balance is a two-fold
basic agreement: the retail environment of the future advantage for physical stores – they can continue to

will be more humanistic, sensorial and connected. focus on delivering an amazing fresh goods offer as
But if we’re all in agreement, why have we seen so well as a host of in-store services, but the online
little progress towards this vision within large format platforms can remove much of the pressure to stock
TRANSITION Consumer Packaged Goods (CPG) retail?
every CPG product range and variant in-store.
Suddenly, by having a seamless approach to online

The answer lies with the issue of disruption and and ofline sales the key obstacle to having better
seamlessness. We think of marketing seamlessness in-store shopper experiences within CPG categories
as a result of the technological, social and economic is removed. The center-store on-shelf stock pressure
disruption that has rocked most industries, but eases and opportunities abound to reimagine how
perhaps seamlessness, or indeed lack thereof, is the these categories work, prompting a new focus on
reason we’re not seeing enough of the changes we curated merchandizing, inspiration and education –
TOWARDS
thought disruption would bring.
the long awaited retail theater model.

What do we mean by the lack of seamlessness? A side effect of this online ‘stock-up’/ofline ‘top-up’
While marketers and agencies talk of an omni- model is that channels will have an even greater
channel approach to retail, we at Barrows think that difference in shopper mission. Supermarkets will

the key to creating the kinds of in-store retail become destination centers where experience and
RETAIL experiences that so many have envisioned is to enjoyment is key and dwell time increased, whereas
create seamlessness across brands and retailers’ convenience as a channel will face greater pressure
approach to sales.
to maximize space and stock, thereby requiring
smarter merchandizing systems.

Right now within large CPG brands, the sales teams,
not the marketing departments, handle in-store In summary, while many see seamlessness as
marketing. As a result, sales take precedence over a result, we see it as a necessity that opens the
THEATER
brand building. Alone this wouldn’t be a negative loodgates to the kinds of shopper-marketing
but combined with another factor of retail reality it experiences large format CPG retail needs to deliver
highlights why retail experiences aren’t becoming if they are to transform themselves from being

more experiential. That factor is that large format places shoppers have to visit into ones they want to.
CPG retail stores are under pressure to house a
multitude of product ranges. This on-shelf stock
pressure makes brands and retailers reluctant to
relinquish space for a more curated or experiential Here are some key obstacles brands

shopper marketing solution – the risk is too high, and retailers need to overcome in order
Ian Gourley
the reward too low.
for more experiential in-store marketing
solutions to be implemented:
So how does seamlessness
Chief Creative Oficer
Retailers still mandate and reward in-store $
Barrows overcome this?
ian.gourley@barrowsonline.com
stock volume over brand experience.
Brands and retailers need to combine sales
Firstly, we need to look at how retailers are deining platforms such as online so that they can
stores of the future. The vast majority of capital maximize the advantages of each.
investment in the store goes into services areas – £
areas on the perimeter rather than among the aisles. Within large CPG client brands, the

Services bring shoppers in and differentiate one brand building and sales teams are often
retailer from another. Less investment is being misaligned in terms of KPIs. A more coherent
funneled into the high-stock volume center store – set of in-store brand-building KPIs would
exactly where the big name CPG brands play. Those allow in-store marketing to be as prioritized
same brands are the only ones attempting to make as stock volume.

the shopper experience better within the aisles
but they too face the pressure of showcasing
The wealth of ranges and variants has
a huge number of Stock Keeping Units (SKUs) – become counter-productive in that on-shelf
not conducive to creating more enjoyable they become dificult to navigate and
shopper experiences.
take up too much precious shelf space.

Barrows has been operating in global retail for over 20 years in SKU rationalization would greatly enhance
both developing and developed markets. In this time we have Now here’s the thing. Sales from online and sales the ability to focus on shopper-based
from ofline are controlled by different departments brand experiences.
understood what it takes to win in this ever-evolving and dynamic with different Key Performance Indicators (KPIs).
retail media space.
Adding to the confusion is that brands are dipping Many engaging shopper marketing tactics

Our range of services encompasses everything from insights, retail into direct-to-consumer delivery models – so online require a higher investment of merchandizing
media planning, design, production, procurement, through to retail is seen as ‘competitor’ to in-store sales. But time and labor. This needs to be accepted and
in-store execution. These are lexed and applied according to our there is a way in which business seamlessness could factored into the system rather than avoided.
enrich both parts of the system. Online retail
clients’ retail objectives.
struggles with the delivery of ‘fresh’ goods. While An increased merchandizer presence
they will certainly continue to offer this service and requires a new level of training creating the
Working across teams within our clients’ organizations, we align
the marketing objectives with customer and key account teams to push delivery logistics to a place of almost instant twofold beneit of a more curated experience
develop the best possible in-store experience for shoppers.
delivery, fresh goods are typically the kind that and an informed sales associate who can
shoppers want to physically engage with. Online is help build brand interactions with shoppers –
great for regular replenishing while in-store is great a key advantage of physical stores.
www.barrowsonline.com
for occasion-based shopping – ‘stock-up’ vs.

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