Retail Marketing and Branding

Dr. Jesko Perrey Director, Düsseldorf Jesko Perrey is the global leader of the CLM (Customer Lifecycle Management) service line and a core member of the leadership team of the EMEA Consumer Goods & Retail Practice at McKinsey. His focus is on brand management, marketing ROI, segmentation, and CLM across different industries. Jesko is the author of many articles and essays in leading journals and compendiums, particularly on marketing-related subjects such as branding, marketing ROI, segmentation, and CLM, and coauthor of the book Power Brands. He holds an MBA and a PhD from the University of Münster.Dr. Dennis Spillecke Principal, Cologne Dennis Spillecke is a core member of the EMEA Consumer Goods & Retail Practice, as well as of the EMEA Marketing & Sales Practice at McKinsey. Dennis leads the global service line on marketing ROI and branding. In recent years, Dennis’ work has focused primarily on the areas of digital marketing, marketing ROI, and branding. Dennis holds a PhD from the Otto Beisheim School of Management (WHU) in Vallendar.

• Foreword xi Introduction to the Second Edition xiiiSecond Edition Acknowledgments xvIntroduction to the First Edition xviiFirst Edition Acknowledgments xxiCommonly Used Acronyms xxiiiPart I Building Superior Retail Brands 11 Principles of Successful Brand Management: Art, Science, Craft 3Art, science, craft 5Creativity and consistency 6Strengths and weaknesses 8Touch point orchestration 92 Segmentation 21Relevance in retail 22Top management attention 23Consumer needs 26Strategic segmentation 30Implementation 323 A Guide to Excellence in Retail Brand Management 37The brand diamond 37The brand purchase funnel 42BrandMatics 45The brand promise 50Brand delivery 524 Developing and Refining Retail Formats 63Basic types of format development 64The four-step process 66Implementation support 745 Store Brand Portfolio Management 77Multiple formats and brands 78BrandMatics Advanced 80The brand space map 81Impact estimation 846 Private Label Branding 89PL growth 90Four generations of PL 95PL strategy 100SKU selection 102Capabilities 103Part II Optimizing Marketing ROI 1057 How to Spend It: Fact-based Media Mix Optimization 107Media landscape transformation 108Equal footing 110Three approaches 1128 Budget Sizing: The Million-dollar Question 117Systematic approach 117Transparency 119Outside-in benchmarking 121Inside-out budgeting 123Efficiency modeling 125Budget level estimate 1269 Budget Prioritization 129Decision mode 129Investment units 131Full transparency 134Prioritization criteria 136Avoiding automation 14010 Reach–Cost–Quality 147Vehicle optimization 148Apples and apples 149Universal scores 15711 Marketing Mix Modeling 161How to spend it 161Impact comparison 163Applications 165Multi-lever transparency 166What to watch out for 16812 The Digital Retail (R)evolution 179End-to-end digitalization 181Channel convergence 183Localization 186Social media 188Content management 191Brick-and-mortar 19213 POS Marketing 197The most powerful vehicle 197Lack of leverage 199Systematic management 200Tangible and intangible elements 203The human factor 21114 Leaflets and Local Print Advertising: How to Achieve Local Media Excellence 217The true point of sale 217A complex challenge 219Fine-tuning 222Product selection 223Geo-marketing 22515 Fact-based Promotion Management 231Balance pricing and promotions 232KPIs for optimization 235Supplier negotiations 239Margin improvement 24116 Excellence in Classical Media 247A key element 248Creativity and content fit 252Testing and learning 255Message delivery 257Creative partners 26117 Digital Marketing Excellence 269Value proposition 270Digital strategy 272Search engine marketing 276Display advertising 280Social media integration 282Digital marketing organization 28718 Maximizing Customer Value with Data-driven CLM 297Full value 298Deep understanding 302Predictive modeling 305Keeping track 308Capability building 310Applications 31619 Smart Sourcing 325Sizeable savings 326Efficiency levers 329Efficiency optimization 332Best practice 337Deep dive 340Part III Ten Perspectives on Retail Marketing 34720 Ten Perspectives on Retail Marketing 349Contributors 351Index 365