1. New Consumer Mindsets ‘more for less’ some issues for brands Clive Woodger

2. Confidence More for less - ‘How it is’ Value New Values Customer Loyalty Image and Reputation - Social Media Retailer Role Private Label New Consumer Mindsets - ‘More for Less’

3. SCG London - Strategic Consulting Group International Strategic Branding and Design Consultancy. We work in the retail, financial and real estate sectors creating …

4. Some of our International clients … SCG London - Strategic Consulting Group

5. SCG London - Strategic Consulting Group Some of our Ukraine and Russia clients …

6. Return of Consumer confidence? U.K.

7. Consumers have become better more resourceful shoppers and more disciplined - ‘more planned … less impulse?’ but ‘I will always find a way to afford items that make me feel good’ SYNOVATE FEB 2009 “Russian consumers behaved better than corporations and are more careful what they buy” …”they buy ‘on sale’ whatever the transaction”. ROUSTAM TARIKO TALKING TO BLOOMBERG AT DAVOS 2010 Return of Consumer confidence? Russia

8. ‘More for Less’ ‘How it is’ Consumer Needs and Aspirations ‘Basic Instincts’ Live the Life quality/choice/experience what I want... when I want... how I want it - channel choice Want it cheaper - bargain/deal Want to feel good about themselves - ethics … responsibility

9. Brand Strategy – First Choice Profile Criteria ‘Russians more value conscious than global counterparts but reluctant to sacrifice on quality’ DATAMONITOR ‘35% of Russian grocery shoppers are considering changing where they shop for food and drink to save money’ DATAMONITOR Russians more brand selective - re-evaluation of old shopping habits and brand loyalties Value conscious attitude will be longer lasting … More focus on premium product qualities than brand label - more like US/Europe … less like India/China ‘Value’ Price / Cost / Quality / Experience

10. Brand Strategy – First Choice Profile Criteria People … Planet … Profit Consumers want to feel ‘good’ about what they buy - how was it procured, grown, reared, caught, manufactured, transported, by who, how? Did it harm the environment, people, communities? Was it ‘Fair Trade’ CSR industry - differentiated by values ‘Look behind the label’ …. M&S Added Values New Values

11. Universal Values? DAVOS 2010 Opinion poll: global values for cooperation 40% chose honesty … integrity … transparency 24% chose others’ rights, dignity and views 20% chose the impact of actions on the wellbeing of others 17% chose the preservation of the environment

12. Value with Values? At a conference on sustainable consumption at the Royal Society in London …. Leading supermarkets react to government concerns regarding increasing food waste problems, cost to consumer, community and environment. Tesco announced new policy on two items for the price of one. Customers to take one item and voucher for second item to take home when they are ready for it. Sainsburys are reducing ‘buy-one-get-one free’ offers as research has shown customer preference for discounts on single item Asda to give a discount on second item to make people review if they really need it.

13. New Values Health & Wellbeing Increasing Awareness - Ethics / Sustainability /Health Demand for Freshness  Minimal processing, chilled, minimal packaging  Food safety  Organic products  Food rules  Diet books  Increased frequency of shopping trips  Highlighting ‘sell by’ dates Organic and Ethical label range opportunities

14. There is no such thing as loyalty … you are as good as your last transaction / customer experience Challenge - loyalty cards Transparent mutual deal - we really reward you - we learn about you - we can serve you better. It has to be relevant, clearly worthwhile, proactive. Role Model - Tesco... Increased investment... Key factor in success Customer Loyalty Wishful thinking? Retailer or Partner card?

15. Image and Reputation Who is targeting who? - Social media challenge What are people saying about you? Traditional marketing - Brands talking about themselves New media - texting … Facebook … Twitter CtoC, CtoB

16. Social Media Transparency … Exposure? You can control the web site... not the internet Challenge Do what you say you do … Responding to criticism How to say sorry ‘Riding the tiger?’

17. Social Media ‘Talking about you’ We live in a world of increasing social networking Everyone has something to say … Fans or critics … Instant content sharing … ‘Strange bedfellow’ - ignore or embrace?

18. Facebook examples ‘clumsy corporate / guerilla consumer’

19. Corporate Watchers … communities of interest Audiences … Influencers …

20. Black P.R. ‘instant cut and paste’

21. Retailer Role ‘solutions for living’ Lifestyle coach / trainer - live life better … more interesting/fun... healthier ‘Mum’ - how to cook … ideas … safe … reassuring … Partner - ‘life support’ - products / facilities / services Enabler - Value … ‘eating out at home’ … convenience

22. Private Label - ‘More for Less’ - Something Different Obvious growth potential with Russian mindset changes Less status conscious - more acceptable... for anyone … democratic Less brand loyalty - consumers more likely to switch Demand for a bargain - need value for money with economy pressures Trading Up - psychological requirement to treat yourself - premium own brands e.g. Tesco Finest Variety and Choice - new products / ingredients / flavours - something different Organic and Ethical - retailer label ranges & opportunities A key retailer differentiation strategy …

23. 23 Creating Added Value Destinations Strategy … Branding … Design … Customer Centric Asset Management 8 Plato Place 72-74 St Dionis Road London SW6 4TU www.scglondon.com clive@scglondon.com +44 (0) 20 7371 7522