Description
This is a presentation describes about book review of built for growth.
BOOK REVIEW - “BUILT FOR GROWTH”
INTRODUCTION
?
The PLOT
How to Create Winning Retail Brands ? Strategies for all facets of Retail
?
?
The AuthorARTHUR RUBINFELD ? President – AIRVISION ? Executive VP - Starbucks
WHAT ARE WE GOING TO DO….
AGENDA
?
Brief Summary of Book ? Four Sections ?Make No Little Plans (Video Clip) ?Go Long ?Own Main & Main ?Push the Envelope
? Fill
in the Blanks
SKY IS THE LIMIT!
?Core
Value – The most important thing
?The
imp thing is not what is the core value but the company has its core value
•Customer •Respect •Quality
Service – Sony – Advanced Technology
for individual – Disney – To make people happy
– Wal-Mart – Give ordinary folk chance to buy
What do you want?!
BRANDING
?
Branding - Recipe :
•
•
Good Product In-store experience
?
The Power of Branding:
• •
The logo becomes an icon Companies primarily selling through other retailers open up own retail brands
?
Even one poor store can have terrible impact
MISSION STATEMENT
?
Slogan/Tagline? Include everybody:
? ? ?
?
Customers Employees Shareholders
?
3 Word Mantra!
OPPORTUNITY
?
May be a small area of what you do but that you enjoy tremendously Consider all possible options
Make your concept:
Authentic ? On trend
?
?
?
RETAIL SURVIVAL PYRAMID
Exclusive Specialty Retailers
Baskin & Robins
Starbucks, Café Coffee Day
Targeted Life style Retailers Price Retailers
Wal-Mart, Big Bazar
THE FIRST STORE-PLATFORM FOR THE FUTURE OF THE COMPANY
?
Locationing
?
? ?
Always open the first store in the best location Traffic, Visibility and Aesthetics Conventional & Timeless
?
Look for the sense of place ? The store front to be the marketing beacon of the brand ? Place people like to gather One design fits all?
?
MAXIMIZING THE RETAIL EXPERIENCE THROUGH DESIGN
?
Designing for One or Many – The First Decision
Creating Brand Touchstones
?
MERCHANDISING: MAXIMIZING YOUR PROFITS
?
Find the Right 20 percent of goods
Perfecting the Art and Science of Merchandising
?
SEAMLESSLY CONNECT DESIGN TO BRAND
?
Knowing the Target Market
Considering Materials in Terms of Customers
?
Nike's Example
?
Nike?s concept store in downtown Seattle Nike arranged the product by sport
?
?
Small crowded aisles and constant hurry created a jumbled feel
Moved all the shoes together into a large open circle in the middle of the store RecipeforSuccess1.wmv
?
?
PART II: “GO LONG”
?
GO LONG – origin from American football – throw long passes in an effort to move the ball downfield, score quickly and demoralize the opposition. In retail business – “going long” – a strategy to rack up profits and put the game out of reach of would-be competitors. Going long : a business approach where one prepares for expansion from the very start -> one can strike quickly and grow rapidly when one decides to expand.
?
?
BLUEPRINT FOR EXECUTION
?
Strategic Planning Process 1) Strategic Plan 2) Operating Plan – Milestones, 1-3 year projections, specific metrics
3) Budget – P&L budget, Capital budget, Anticipated results and measurements
4) Performance Review – progress v/s budget, identify problem areas, actions to address problems
SEARCHING FOR HEART, NOT PEDIGREE
? ? ? ? ?
Need to bring aboard seasoned professionals to “go long”. It?s not about the best resume or an Ivy League degree Prefer “utility players” over specialists Use the personal interview well Take 3rd party assistance for good recruitment
Investing wisely in Investors
• Individual investors, DDM, angel investors • Venture Capitalists – come later when firm has proven its concept and needs to rapidly expand, board membership, ROI in 3 to 5 years • Investment community – closely knit • Look for a long term investor – your values and mission resonate with him, it’s not just the bottom line
KICKING THE ECONOMIC MODEL INTO GEAR
?
?
?
? ?
?
?
Understanding financials in broader terms to connect them with operations Robust economic model to generate excess cash to power expansion – Gross Margin, Revenue, COGS, Net Income Gross margins track differentiation – more specialized the product, the higher the gross margin Net store income – the thing that matters Compare your results with annual reports of competitiors in the same category Measure Avg. sales volume per store, Sales per square foot Put expenses to the test – Labor costs, Occupancy costs
WELLSPRINGS TO EXPANSION
? ? ? ?
?
“To thy own self be true” – 1st Step Concept of “hidden wellspring” Expanding the Good Old Retail Way – opening up new stores Preparing to Expand : Count the Ways 1) Franchising 2) Licensing 3) Company-owned Stores Other means of Expansion 1) Area-owned management 2) Acquisitions 3) Joint Ventures 4) Wholesale/Retail Expansion
OWN MAIN & MAIN
Urban Street Corner
High Traffi c
Great Visibility
Hi-quality Co-tenancy
Starbuck s Coffee
HUB & SPOKE EXPANSION MODEL
1) Prioritize potential markets
-
Demographics
Market penetration by MSA (Metropolitan Statistical Areas)
2) Geographic Location Optimization and „demonstrated intent? Need to establish Hub market.
1) Competition First-in See-Ya Race is on
HUB & SPOKE EXPANSION MODEL
4) Number of stores Positioning Availability of strategic partners
5) Local customer acceptance 6) Company resources Financial Human resources
GOLDEN RULES !!
? ?
?
?
? ?
Always look for real estate when u don?t need it Never locate near tenants who target a less affluent customer than u do Never ever take a space down any stairs. Only one time in a 100 should u take a space that requires shoppers to go up stairs Don?t be penny-wise, pound-foolish and attempt to negotiate down your broker?s fee Most of the time a corner site is best Everything is negotiable !!
PUSH THE ENVELOPE
It is to take the concept or business practice to its outer limits ? The background ? Risk is necessary to succeed ? But Risk should come as apart of an overall plan
?
INNOVATION AS A PATH TO GROWTH
? ?
? ? ?
?
99 cent burger war Expansion & innovation ? License ? Timing ? Demographics Customer convenience Social factor Survival of local retail ? Specialty retailer ? Lifestyle retailer Maintain premium position
Quality leader Value leader Price leader
CASE:-MCDONALDS….AGAIN
•
• •
• • • •
Started the price war in spite of being market leader stress on being the cheapest & omnipresent limited success in Diversification & expansion Ended up follower not the leader Mc café-failed good idea Ambiance- hard vs. soft Improvements
DEFINING MISSION IN THE NEW AGE
? ?
?
?
?
Learning from History to future Functions of retail:? To provide product or service ? To provide jobs ? To build community Survival of local retails against the national brands Redefining Customer experience ? Slow down the shopping experience & Expedite the processing & payment experience ? Use of technology Social awareness
CASE:- WAL-MART
? ? ?
?
? ?
Biggest retail chain Highly criticized all over Need to change with time Being cheaper & huge is not enough Need to be a Place for community gathering Should have Creative & pleasing outlet designs
PLEASE FILL IN THE BLANKS…..
? Background
: Arthur Rubinfeld
?
?
Diverse Experience (Self-admittedly) Brick-and-Mortar Guy
Retail
Real Estate Architect
COMPLETE FRAMEWORK FOR RETAIL SUCCESS ??
-- Using Technology to connect with
shoppers?? -- Out-of-Store Promotion Activities ? -- Provide „unique experiences? ?
THANK YOU !!!
doc_178969734.ppt
This is a presentation describes about book review of built for growth.
BOOK REVIEW - “BUILT FOR GROWTH”
INTRODUCTION
?
The PLOT
How to Create Winning Retail Brands ? Strategies for all facets of Retail
?
?
The AuthorARTHUR RUBINFELD ? President – AIRVISION ? Executive VP - Starbucks
WHAT ARE WE GOING TO DO….
AGENDA
?
Brief Summary of Book ? Four Sections ?Make No Little Plans (Video Clip) ?Go Long ?Own Main & Main ?Push the Envelope
? Fill
in the Blanks
SKY IS THE LIMIT!
?Core
Value – The most important thing
?The
imp thing is not what is the core value but the company has its core value
•Customer •Respect •Quality
Service – Sony – Advanced Technology
for individual – Disney – To make people happy
– Wal-Mart – Give ordinary folk chance to buy
What do you want?!
BRANDING
?
Branding - Recipe :
•
•
Good Product In-store experience
?
The Power of Branding:
• •
The logo becomes an icon Companies primarily selling through other retailers open up own retail brands
?
Even one poor store can have terrible impact
MISSION STATEMENT
?
Slogan/Tagline? Include everybody:
? ? ?
?
Customers Employees Shareholders
?
3 Word Mantra!
OPPORTUNITY
?
May be a small area of what you do but that you enjoy tremendously Consider all possible options
Make your concept:
Authentic ? On trend
?
?
?
RETAIL SURVIVAL PYRAMID
Exclusive Specialty Retailers
Baskin & Robins
Starbucks, Café Coffee Day
Targeted Life style Retailers Price Retailers
Wal-Mart, Big Bazar
THE FIRST STORE-PLATFORM FOR THE FUTURE OF THE COMPANY
?
Locationing
?
? ?
Always open the first store in the best location Traffic, Visibility and Aesthetics Conventional & Timeless
?
Look for the sense of place ? The store front to be the marketing beacon of the brand ? Place people like to gather One design fits all?
?
MAXIMIZING THE RETAIL EXPERIENCE THROUGH DESIGN
?
Designing for One or Many – The First Decision
Creating Brand Touchstones
?
MERCHANDISING: MAXIMIZING YOUR PROFITS
?
Find the Right 20 percent of goods
Perfecting the Art and Science of Merchandising
?
SEAMLESSLY CONNECT DESIGN TO BRAND
?
Knowing the Target Market
Considering Materials in Terms of Customers
?
Nike's Example
?
Nike?s concept store in downtown Seattle Nike arranged the product by sport
?
?
Small crowded aisles and constant hurry created a jumbled feel
Moved all the shoes together into a large open circle in the middle of the store RecipeforSuccess1.wmv
?
?
PART II: “GO LONG”
?
GO LONG – origin from American football – throw long passes in an effort to move the ball downfield, score quickly and demoralize the opposition. In retail business – “going long” – a strategy to rack up profits and put the game out of reach of would-be competitors. Going long : a business approach where one prepares for expansion from the very start -> one can strike quickly and grow rapidly when one decides to expand.
?
?
BLUEPRINT FOR EXECUTION
?
Strategic Planning Process 1) Strategic Plan 2) Operating Plan – Milestones, 1-3 year projections, specific metrics
3) Budget – P&L budget, Capital budget, Anticipated results and measurements
4) Performance Review – progress v/s budget, identify problem areas, actions to address problems
SEARCHING FOR HEART, NOT PEDIGREE
? ? ? ? ?
Need to bring aboard seasoned professionals to “go long”. It?s not about the best resume or an Ivy League degree Prefer “utility players” over specialists Use the personal interview well Take 3rd party assistance for good recruitment
Investing wisely in Investors
• Individual investors, DDM, angel investors • Venture Capitalists – come later when firm has proven its concept and needs to rapidly expand, board membership, ROI in 3 to 5 years • Investment community – closely knit • Look for a long term investor – your values and mission resonate with him, it’s not just the bottom line
KICKING THE ECONOMIC MODEL INTO GEAR
?
?
?
? ?
?
?
Understanding financials in broader terms to connect them with operations Robust economic model to generate excess cash to power expansion – Gross Margin, Revenue, COGS, Net Income Gross margins track differentiation – more specialized the product, the higher the gross margin Net store income – the thing that matters Compare your results with annual reports of competitiors in the same category Measure Avg. sales volume per store, Sales per square foot Put expenses to the test – Labor costs, Occupancy costs
WELLSPRINGS TO EXPANSION
? ? ? ?
?
“To thy own self be true” – 1st Step Concept of “hidden wellspring” Expanding the Good Old Retail Way – opening up new stores Preparing to Expand : Count the Ways 1) Franchising 2) Licensing 3) Company-owned Stores Other means of Expansion 1) Area-owned management 2) Acquisitions 3) Joint Ventures 4) Wholesale/Retail Expansion
OWN MAIN & MAIN
Urban Street Corner
High Traffi c
Great Visibility
Hi-quality Co-tenancy
Starbuck s Coffee
HUB & SPOKE EXPANSION MODEL
1) Prioritize potential markets
-
Demographics
Market penetration by MSA (Metropolitan Statistical Areas)
2) Geographic Location Optimization and „demonstrated intent? Need to establish Hub market.
1) Competition First-in See-Ya Race is on
HUB & SPOKE EXPANSION MODEL
4) Number of stores Positioning Availability of strategic partners
5) Local customer acceptance 6) Company resources Financial Human resources
GOLDEN RULES !!
? ?
?
?
? ?
Always look for real estate when u don?t need it Never locate near tenants who target a less affluent customer than u do Never ever take a space down any stairs. Only one time in a 100 should u take a space that requires shoppers to go up stairs Don?t be penny-wise, pound-foolish and attempt to negotiate down your broker?s fee Most of the time a corner site is best Everything is negotiable !!
PUSH THE ENVELOPE
It is to take the concept or business practice to its outer limits ? The background ? Risk is necessary to succeed ? But Risk should come as apart of an overall plan
?
INNOVATION AS A PATH TO GROWTH
? ?
? ? ?
?
99 cent burger war Expansion & innovation ? License ? Timing ? Demographics Customer convenience Social factor Survival of local retail ? Specialty retailer ? Lifestyle retailer Maintain premium position
Quality leader Value leader Price leader
CASE:-MCDONALDS….AGAIN
•
• •
• • • •
Started the price war in spite of being market leader stress on being the cheapest & omnipresent limited success in Diversification & expansion Ended up follower not the leader Mc café-failed good idea Ambiance- hard vs. soft Improvements
DEFINING MISSION IN THE NEW AGE
? ?
?
?
?
Learning from History to future Functions of retail:? To provide product or service ? To provide jobs ? To build community Survival of local retails against the national brands Redefining Customer experience ? Slow down the shopping experience & Expedite the processing & payment experience ? Use of technology Social awareness
CASE:- WAL-MART
? ? ?
?
? ?
Biggest retail chain Highly criticized all over Need to change with time Being cheaper & huge is not enough Need to be a Place for community gathering Should have Creative & pleasing outlet designs
PLEASE FILL IN THE BLANKS…..
? Background
: Arthur Rubinfeld
?
?
Diverse Experience (Self-admittedly) Brick-and-Mortar Guy
Retail
Real Estate Architect
COMPLETE FRAMEWORK FOR RETAIL SUCCESS ??
-- Using Technology to connect with
shoppers?? -- Out-of-Store Promotion Activities ? -- Provide „unique experiences? ?
THANK YOU !!!
doc_178969734.ppt