RETAIL & CONSUMER GOODS
The traditional separation between brand manufacturers and retail is a thing of the past. Key issues like verticalization, multichannel, and digitization call for a complete realignment of business concepts.
In consequence, major shifts in the market are currently leading to rapid growth among companies that are proactively rising to the new challenges, and to substantial losses of market share and earnings in companies that opt to "carry on as before". Success stories like ZARA, H&M, IKEA, Hugo Boss, OTTO, REWE, Apple, Media-Saturn, and many more are all over the headlines – but so are heavy losses or the capitulation of traditional top dogs like KARSTADT, Wehmeyer, and Schlecker. Major international players such as Walmart, Gap, and Marks & Spencer have also pulled back after their attempts proved futile.
Crucial for companies in this phase of market upheaval is a precise understanding and coverage of a significant customer benefit. And this needs to be achieved across all relevant channels and in efficient and fast value-creation processes. The speed and precision with which companies learn and tangibly move forward in their development are now critical success factors. The challenge is to make a unique selling proposition come alive at every touchpoint on a daily basis, to woo customers anew, every single day. And this entails actively tapping the full potential available in the company, particularly the human potential.
KEYLENS has spent many years working in successful partnership with companies in the retail and consumer goods industry on realigning their business concepts to suit the market. Always with a functional outlook and a precise understanding of the specific market situation, be it FMCG, consumer durables, clothing/lifestyle, services, or any other.
Some of the aspects our consultancy focuses on:
- Image building and growth strategies
- Brand architectures and positioning
- Loyalty concepts, customer management
- Efficiency improvement programs in marketing and sales
- Performance improvement in product ranges/assortments
- Pricing concepts
- Location and format concepts, branch network optimization
SELECTED KEYLENS PROJECT EXAMPLES
Brand manufacturer
BRAND MANUFACTURER
Issue:
Increasing marketing efficiency
Objective:
Installing a professional system of marketing performance measurement for the revenue-based development of communication activities (particularly in the networking of wholesale and retail)
Results:
- We determined an individual ROMI approach (return on marketing investment)
- Analyzed the performance of marketing activities
- Determined and quantified the individual adjustments, incl. stipulating a future review of ROMI
- Formulated an implementation plan with responsibilities assigned
KEYLENS success levers:
Innovative consideration of an industry-spanning benchmarking approach ("inter-practitioner exchange")
Department store company I
DEPARTMENT STORE COMPANY I
Issue:
Exploiting potential in the product range
Objective:
Improving performance in the individual product lines (clothing, accessories, consumer electronics, etc.) in terms of brand profile, profitability, and growth/innovation potential
Results:
- We developed an individual screening method
- Reviewed all product lines on the basis of national/international best practices
- Determined the potential in each product line and consolidated it across all lines
- Formulated a master plan for implementation, with responsibilities and timings
KEYLENS success levers:
Personal and intensive involvement of those responsible for the operational business right from the start ("turning victims of change into owners of change")
Department store company II
DEPARTMENT STORE COMPANY II
Issue:
Forming lifestyle target groups
Objective:
Identifying new target groups in the market to expand sales and optimize the product range by better meeting target group needs – thereby increasing sales and profits
Results:
- We linked sociodemographic data, consumer behavior, and lifestyles (attitudes and values) to form new, internally homogeneous target groups
- Described these target groups in precise detail
- Translated the target group knowledge into specific requirements for marketing, purchasing, and sales
- Set up continual training for sales assistants in recognizing and addressing the new target groups
- Developed a practical tool that can be used to answer specific questions on customers, products, and advertising programs in relation to specific target groups prior to an investment
KEYLENS success levers:
In-depth methodological knowledge in the practical implementation of lifestyle segmentation
Chain of clothing stores
CHAIN OF CLOTHING STORES
Issue:
Repositioning the company
Objective:
Strengthening retail brand profiling as a basis for expanding the customer base in the regional markets
Results:
- We created a knowledge base by means of analyses/market research
- Determined a new positioning with precise definition of customer benefit
- Identified adjustments to be made in all corporate functions, incl. drawing up a business case
- Closely supported the concept implementation with monthly team meetings
KEYLENS success levers:
Extremely pragmatic transfer of know-how from big business to meet the needs of a medium-sized enterprise
