version 2 – 11.20.2013
Transcription
version 2 – 11.20.2013
VERSION 2 – 11.20.2013 by Christopher A Durham & Perry Seelert Copyright © 2013 by Folio28 LLC 6508 N 150th St, Omaha, Nebraska 68116 All rights reserved. No other part of this document may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems without permission in writing from the publisher, except by a reviewer, who may quote brief passages in a review. Published by My Private Brand, a subsidiary of Folio28 LLC. All brands, logos, packaging and collateral are the property of the respective copyright holder. Disclaimer: All of the information contained herein is observational or obtained from publicly available sources. No Walmart personnel were interviewed, contacted or involved in any way in producing this Sightline report. The report is based upon a crosssection of in-store visits throughout North America, and may not be reflective of what is happening uniquely at Walmart in other countries or even other regions. It does not include seasonal items such as Holiday. Sightline relies totally on the authors’ opinions and observations, and attempts to focus on what is consumer-facing, with no direct or indirect insight into the internal strategic make-up or planning of Walmart’s private brand team. www.folio28.com www.mypbrand.com www.mypbrand.com | 2 My Private Brand is the leading online resource for private brand analysis, best practices, news and information about this fastest growing segment in the market. With readership from retailers, private brand manufacturers, branding agencies and thought leaders from around the world, My Private Brand is designed to foster innovation, encourage debate and write the next chapter of brand management. My Private Brand is a wholly owned subsidiary of Folio28 LLC. www.mypbrand.com | 3 1. My Private Brand 3 2. Perspective & Methodology 7 3. The Retailer 11 4. Insights 17 a. Portfolio Insights b. Brand & Category Insights c. The Top 10 Walmart Opportunities 5. Private Brand Portfolio Table of Contents a. b. c. d. Portfolio Strategy Price First Test Licensing Great For You 6. The Brands a. Fashion b. Consumables Baby Fresh Grocery Health, Beauty & Cosmetics Pet c. Hardlines Electronics Home Décor Home Improvement & Automotive Office & Craft Toys & Sports Travel & Outdoor Grilling & Accessories 18 21 32 43 44 55 70 76 84 85 171 173 190 222 278 308 326 327 336 399 424 439 466 478 www.mypbrand.com | 4 Objectives: The creation of Sightline is borne out of our passion for Private Brands and the belief that a significant knowledge gap exists around most retailers’ private brand programs. Analysts, trade magazines and researchers have focused on the “one note” private label program as a copycat value play. Sightline is My Private Brand’s exclusive strategic in-depth analysis into the entirety of a Private Brand portfolio. There are three objectives for Sightline beyond an intense focus on one retailer’s private brand strategy: 1. Provide a comprehensive view of the program’s portfolio architecture and each brand’s intent. 2. Outline the key insights, success factors and “misses” within the retailer’s Private Brand program. 3. Create a highly visual perspective that distills multiple store visits and experiences. We recognize that this highly focused perspective will, and should, be interpreted differently if you are a retailer, manufacturer or consultant in the industry. Knowing what Walmart is doing is the first step, but how you specifically take the knowledge and develop your own actions will require further strategic consideration. We can help you with these action plans, and hope you reach out to us for further engagement. www.mypbrand.com | 5 Sightline 2.0: My Private Brand selected Walmart as the subject of the first Sightline analysis not simply because of their overwhelming size, but because over the last five years we have posted more than 2,500 articles on the site and readers clamor for more Walmart insight. The retailer has created an amazingly subtle way of veiling their Private Brand commitment. They report often on private label in grocery and packaged goods (Great Value), focusing financial analysts’ attention on foods, while Private Brand and their significant penetration/share in the remainder of the store flies under the radar. Walmart is just the beginning of an exciting future for Sightline, where our “2.0” initiatives will look at retailers within food, drug, mass, convenience, office and many others, complemented by “white papers” that will also focus on Private Brand trends and strategies. www.mypbrand.com | 6 PERSPECTIVE & METHODOLOGY www.mypbrand.com | 7 Key Tenets Retailers are Brands and must own a robust portfolio of Brand assets. Private Brand portfolios should be focused, strategic and impactful. Retailer-owned Brands create loyalty and profitable revenue growth. Retailers must WIN! www.mypbrand.com | 8 1. Invest in and create a robust portfolio. Developing a compelling, consumer- and marketing-led set of Private Brands is one of the most powerful, differentiating investments a retailer can make. Core Beliefs 2. Ensure your portfolio is specific to who you are. Every retailer’s innate DNA and strategy is different, and thus, their private brand architecture should be too. 3. Treat your program as a meaningful asset. The best Private Brand programs require a combination of assets – people, product development and brand – that must be consistently invested in, balanced accordingly and reevaluated. 4. Share your mission. A retailer’s entire organization should understand the mission of the private brand program, especially customer-facing associates. 5. Win by being proactive. The world of private brands is constantly evolving, and to win you cannot afford to be reactive. You have to chart your direction proactively. www.mypbrand.com | 9 The Methodology 38 store visits to 12 stores in 6 states: California, Connecticut, Nebraska, North Carolina, South Carolina and Illinois. Research from the database of more than 3,000 articles over the last 5 years in the My Private Brand archives. Research from publicly available sources. Seasonal brands that are not in store year round are not included in this analysis. www.mypbrand.com | 10 THE RETAILER www.mypbrand.com | 11 2012 Walmart Annual Report 10,000+ retail units 69 different banners in 27 countries 2+ million associates 200+ million customers Fiscal 2012 review and key strategies For the fiscal year ending January 2013: Walmart increased net sales by 5% to $466.1 billion. Net sales increased by 5.9% to $443.9 billion. Consolidated operating income grew by 4% to $26.6 billion. Diluted earnings per share from continuing operations attributable to Walmart were $4.54 per share, up from $4.18 the previous year. Added 52.2 million square feet through 1,160 additional units, including acquisitions in the U.K. and South Africa. www.mypbrand.com | 12 Walmart’s Five Key Strategies 2012 Walmart Annual Report 1. Developing our people 2. Driving the productivity loop 3. Winning in Global eCommerce 4. Reinvigorating our customer– focused culture 5. Leading on social and environmental issues Michael T. Duke President & Chief Executive Officer www.mypbrand.com | 13 Fortune 500 - 2013 1. Walmart Stores Rank: 1 (Previous rank: 2) CEO: Michael T. Duke Walmart reclaimed the top spot in the Fortune 500 in 2012 after slipping to No. 2 last year. The retailer’s refocus on low prices continued to attract frugal shoppers into the discounter's U.S. stores. For fiscal year 2012, sales rose 5.9%, to $443.9 billion. Despite relatively strong sales, Walmart must hold onto its U.S. shoppers, which make up 62% of the chain’s net sales. Beyond the U.S., Walmart continues to investigate allegations that executives in Mexico paid more than $24 million in bribes to speed the retailer’s expansion there. The probe has widened to Brazil, India and China. www.mypbrand.com | 14 Ranking the Walmart Brand Rankings where listed Year # Brand Finance Best Retail Brands: Brand Finance 2012 1 BrandZ Top 100 Brand Ranking: Millward Brown 2012 17 Fortune U.S. 500 (100): Fortune 2012 2 The Most Valuable U.S. Retail Brands: Interbrand 2012 1 World's Most Admired Companies: Fortune 2012 24 The Reputations of the Most Visible Companies: Harris Interactive 2012 41 www.mypbrand.com | 15 Competitive Set 2011 U.S. Retail Sales ($000) 2012 Total Retail Sales ($000) 2012 Total Stores $316,083,000 $446,950,000 4,523 Minneapolis, MN $68,466,000 $73,301,000 1,778 Seattle. WA $33,837,000 $61,090,000 - Hoffman Estates, IL $26,397,000 $39,854,000 2,548 Grand Rapids, MI $16,603,000 $14,780,000 200 Headquarters Bentonville, AR Information taken directly from retailer annual reports, Forbes.com and internetretailer.com www.mypbrand.com | 16 INSIGHTS www.mypbrand.com | 17 PORTFOLIO INSIGHTS www.mypbrand.com | 18 Walmart owns a multi-billion dollar portfolio of labels that could become Brand assets. Summary of Portfolio Insights Private Brand strategy is focused on creating labels that generate sourcing and margin opportunities and not on creating differentiation or building brands. Private Brand Portfolio strategy is defined, not by brand or consumer need, but by merchandising structure and sourcing opportunities. Brands within the portfolio are typically restricted to broad merchandising areas, and rarely crossover. Exclusive/licensed brands are used extensively to give the portfolio credibility and present “known” brand options for Walmart customers. Unbranded/Generic products are prevalent through the entire store. SEE PRICE FIRST ADDENDUM IN GROCERY www.mypbrand.com | 19 Create brands that uniquely reinforce Walmart The Private Brand portfolio and strategy should enhance and build upon Walmart alone, filling the distinct needs of their customers, not mimicking other brands or retailers. The ideal portfolio strategy for Walmart is ownable, relevant and deliverable only by Walmart. Three Key Portfolio Opportunities Move from labels to brands Create brands consumers truly care about that resonate more than just “labels.” Brands brought to life through story and personality beyond the shelf give the Walmart shopper a reason to come back and drive corporate value by becoming assets. Build a diverse and strategic portfolio Create a multi-faceted portfolio not simply focused on delivering the “Save Money” aspect of Walmart’s mantra, but also bringing the “Live Better” aspect to life and emotionally engaging customers. This will enable Walmart to reach new shoppers, categories and lifestyles. Maintain a robust portfolio of brands meeting different business roles and brand positionings, all working in tandem to differentiate Walmart. www.mypbrand.com | 20 BRAND & CATEGORY INSIGHTS www.mypbrand.com | 21 Insight #1 Significant Penetration Variance 17% 90%+ Estimated Private Brand Penetration GROCERY HOME DECOR Walmart quietly targets many categories in the Non-Food and Home Decor areas for total Private Brand ownership. Typically, these are categories without a recognizable or dominant national brand leader. This dominant share is executed using a robust portfolio of Private Brands, and is easily seen in home decor where Mainstays, Better Homes, Your Zone, Canopy and Hometrends each play a role. This gives the customer a perception of brand choice while allowing Walmart to maintain control of the category and the corresponding margin benefits. www.mypbrand.com | 22 Insight #2 The Devolution of Great Value 1993 2009 2010 2010 - 2013 2013 The original Great Value, designed by Don Watt. The relaunch of Great Value with a stark white institutional brand approach, heavy-handed in its communication of “economy.” An injection of some color into the existing Great Value brand architecture, to reduce its austerity. The introduction of the Great Value design “wave” in multiple categories, along with a variety of other random design solutions. An inconsistent design system that focuses on heavy color saturation and often closely mimics national brands. The Great Value logo is dramatically reduced in size and visibility. www.mypbrand.com | 23 Insight #3 Perishables Strength Once a perceived weakness, three Private Brands are increasing the credibility of their fresh foods offerings: • Marketside: (throughout produce) in dressings, marinades, fresh takeaway, appetizers and more. • The Bakery: a stratified brand that at its premium utilizes Paula Deen as the brand endorser. • Prima Della: Walmart’s behind-the-glass Private Brand premium deli meat offering. www.mypbrand.com | 24 Insight #4 Dedicated Merchandising Walmart has a consistent and dedicated commitment to merchandising Private Brand. Off-shelf pallet and endcaps are evident throughout the store in high volume/high profile products, from Electronics to Auto to Grocery to HBC. www.mypbrand.com | 25 Insight #5 The Heritage Of Sam? No reference to Sam in new packaging Old Logo references Sam Walton clearly The authentic connection to founder Sam Walton has virtually disappeared in Private Brand. In the Ol’ Roy brand in Pet, the recent redesign removes reference to Sam. In Sam’s Choice, there is a new design and branding initiative that has dramatically reintroduced Sam’s Choice and Sam to the Walmart customer. www.mypbrand.com | 26 Insight #6 Design Sophistication (in Pockets) While most of Walmart’s portfolio does not appear to be focused on either the customer or brand, design sophistication is emerging in spots. Examples include: • The clean, modern, character-driven design of Lucky Duck wine. • Marketside and its credible, approachable brand personality. • Pure Balance and its contemporary design that evokes science and nutrition. • The bold typographically-driven design for Backyard Grill. www.mypbrand.com | 27 Insight #7 Fashion & Modernity Once known for its dowdy and stale approach to fashion, Walmart has quietly updated their set. Though they could never be called fashion forward, they are on trend with key styles, cuts, color and patterns. Despite this improvement, the consumer impression is slow to catch up with the changing product, as the overarching Walmart value halo still conveys an unfashionable perception. www.mypbrand.com | 28 Insight #8 Unbranded – The Non Strategy Walmart is unafraid to market numerous unbranded products throughout the entire store. The products often carry an obvious Walmart distribution clause and are on true value/basic products. However, they are not restricted to just the “cheap stuff,” and in Packaged Goods and Home Decor the products may be premium. The use of unbranded products masks the true Private Brand penetration and creates an artificial sense of selection. SEE PRICE FIRST IN THE PORTFOLIO SECTION www.mypbrand.com | 29 Insight #9 Borrowed Equity: Licensing A key part of Walmart’s overall Private Brand portfolio strategy is the use of licensed/exclusive brands wholly controlled by the retailer. The brands create a set of relevant, recognizable and known brands for the Walmart customer while maintaining sourcing flexibility and margin. Many of the brands provide authenticity in categories where Walmart has credibility issues (i.e., Ocean Pacific, Better Homes & Gardens). www.mypbrand.com | 30 Insight #10 Packer/Manufacturer Labels Packer/manufacturer labels with no brand awareness, marketing, or innovation are given shelf space throughout the store. Although this may create the illusion of brand choice, it does not bring customers in or provide the value comparison that Walmart covets. SEE PRICE FIRST IN THE PORTFOLIO SECTION www.mypbrand.com | 31 THE TOP 10 WALMART OPPORTUNITIES www.mypbrand.com | 32 1 Unified Brand Portfolio Strategy 50+ Opportunistic Labels Unified Portfolio Strategy BRAND ASSETS Build a unified portfolio strategy that is not simply focused on delivering Walmart’s value proposition, but also on reaching different customers and category needs. A robust portfolio of brands that have different business roles and brand positionings, focused on fulfilling their specific role and ultimately differentiating Walmart. Consider how lifestyle brands could potentially create customer loyalty and solve merchandising needs. For example: • The extension of Onn into batteries. • The extension of Ocean Pacific into beauty and tanning. • The consolidation of Your Zone into No Boundaries. • The reevaluation of Great Value beyond consumables. www.mypbrand.com | 33 2 Optimize & Expand the Portfolio of Grocery Brands Build a robust Private Brand Portfolio strategy in grocery that repositions existing brands/creates new brands and focuses on capturing the hearts, minds and wallets of Walmart customers. Is Great Value the best solution for NBE products. So customers believe? Solve for premium products – Sam’s Choice, World Table or ? – Consolidate, reposition or create. How far can Marketside stretch (meat, dairy, etc)? Basic Product Create a brand solution for true basic products – which are often unbranded – Is Great Value the solution? SEE PRICE FIRST IN THE PORTFOLIO SECTION Customer Focused Brands Explore new specialty brands that create ownable differentiation with Walmart Customers – Hispanic, Regional, Asian, HMR? www.mypbrand.com | 34 3 Steal Share With Private Brand OFFICE ELECTRONICS CRAFT The Walmart Private Brand portfolio should significantly steal share from three vulnerable channels: • Office is poised for further expansion at Walmart, where basics like paper, pens and filing are perfect Private Brand opportunities. • Given Best Buy’s fragile state, the expansion of Onn and Onn Platinum is a significant opportunity. • There is plenty of cross-over with the Walmart and Michael’s shopper; owning more territory within Craft/Party should be an objective. www.mypbrand.com | 35 4 Create “Hero” Private Brand Products Dave Nichols was Right! Create hero products for each brand that solve the unique needs of the Walmart customer – Own them, manage them and market them. Must have products in Home Decor, Consumables and Hard Lines will give Walmart customers another reason to believe. www.mypbrand.com | 36 5 The Future Customer Develop and nurture future customers by refining the Private Brand portfolio to better relate to their lifestyle. Consider all categories in the store, as younger consumers engage through tweets and texts and are not confined by traditional brick and mortar limitations. Optimize, consolidate, reposition and create to enhance the portfolio: No Boundaries Ocean Pacific Faded Glory Mainstays Your Zone Onn Great Value Equate www.mypbrand.com | 37 6 Brand Ambassadors With more than two million employees, Walmart has the opportunity to convert them from employees to passionate brand advocates. It is critical those on the front lines know, love and feel ownership for the Walmart Private Brands. www.mypbrand.com | 38 7 Branded Environments Leverage the store to tell brand stories and engage Walmart customers in the experience of branded shopping. Despite the modern evolution of the store to cleaner, more shoppable spaces, the traditional Walmart big box remains starkly lit and merchandised for operational efficiencies and not for selling or customer engagement. Walmart will always be the value player, however, it can create customer experiences that are appropriate to their value positioning. www.mypbrand.com | 39 8 Encourage Trial The 1 million daily Walmart shoppers worldwide create a huge opportunity to encourage trial, drive ticket and ultimately create brand loyalty. The Bright Ideas sampling centers should aggressively sample Private Brand products, ideally with a complementary national brand product (i.e., Kraft Cheese and World Table Cracker). www.mypbrand.com | 40 9 Fresh Meat Branding The pull-back from brands like “Genuine Steakhouse,” formerly their Private Brand of beef, to unbranded Premium USDA Choice, is counterintuitive to where the industry is heading, with grocers like Hy-Vee, Food Lion, A&P and Safeway each marketing a beef brand. Meat & Seafood is the weakest part of Walmart’s fresh area, and the lack of branding creates a general lack of credibility. Additionally, the presence of true generic product in meat downgrades the quality perception of the entire department. www.mypbrand.com | 41 10 Private Brand Leadership Online With more and more shopping experiences moving to digital, Walmart.com is essential to the company’s future, and important in fighting Amazon. The home page to the left shows Walmart.com featuring the new Better Homes patio collections for spring. It is this type of proactive marketing that is key to continuing their Private Brand success in Home Decor, Non-Foods and even in Grocery. Walmart.com can be more persuasive than Amazon regarding Private Brands, which is a significant advantage. www.mypbrand.com | 42 PRIVATE BRAND PORTFOLIO www.mypbrand.com | 43 The Walmart Private Brand Portfolio strategy is defined, not by brand positioning or consumer preference, but by merchandising structure and needs. It is focused on creating labels that generate sourcing and margin opportunities and not on creating differentiation or building brands. OVERVIEW The Portfolio Strategy The majority of the labels in the Walmart portfolio deliver on the “Save Money” portion of the Walmart brand mantra by delivering National Brand Equivalent products which are “as good as or better than” the product they are targeted against. Unbranded/generic products are used throughout the store to give the customer the illusion of brand choice and to mask the total penetration of Private Brand products. Manufacturer labels often created by traditional private brand manufacturers are used extensively to give the further illusion of brand choice. These labels typically have little to no consumer awareness, marketing budget or brand management. Versions 2: As of November 2013 it appears that there is a significant strategic shift unfolding on the grocery side of the Walmart Private Brand portfolio. The redesign and re-emergence of Sam’s Choice and the testing of the neo-generic basic private label Price First are clear signs of a evolving portfolio. www.mypbrand.com | 44 In Their Own Words Walmart has traditionally claimed to be focused on national brands in grocery. In March 2013, Chief Financial Officer Charles Holley presented at the Bank of America Merrill Lynch 2013 Consumer & Retail Conference, held in New York. “We don’t view private label maybe like some other retailers. We are a brand retailer. We like to sell brands. We use private label to fill in gaps where we see there is a value gap for our customers. So, it’s really very dependent on a category or subcategory. Now, having said that, we are improving our private label, you will – at the quality even the packaging is changing. You will see more, I think, private label in certain categories later in this year. But it’s not a strategy to replace or pump up profit; it’s really a strategy to have an offering of value that’s just not there right now for the customer. In September 2010, Bill Simon, U.S. president and CEO, presented these thoughts on the retailer’s private label program: “There has also been a lot of discussion over the last couple years about our private label program, our private brand program. And I will say it again here. We've said this regularly. We are a house of brands. We prefer to sell national brands. They show our product better – excuse me – they show our value better. When the price of Oreos in my store is less than the price of Oreos in a competitor's store, there is no doubt who the price leader is and where the basket win is. And we would prefer to show that as value. Private brands are still important to us. They play an important role in our business, different by category. They will fill holes or gaps in our offering. On the food side, they will serve to make sure our suppliers remain committed to everyday low cost where we need to. And in certain categories of our business, home and apparel particularly, they will be lead where we don't have the national brand penetration that we wish we did." www.mypbrand.com | 45 Portfolio Timeline The Early Years Middle Years The Shift from Label to Brand PROJECT IMPACT IMPLODES Retreat from Brand Today 1983 Ol’ Roy dog food is introduced 1991 Walmart introduces first Grocery Private Brand, Sam’s American Choice 1990s Perrigo assigns Equate trademark to Walmart 1992 Walmart acquires and registers Faded Glory trademark 1993 Great Value is introduced 1996 Mainstays Home Decor brand is introduced 1996 Home Trends Home Decor brand trademarked 1997 Parent’s Choice infant formula is introduced 1999 Walmart acquires ASDA and the Fashion brand GEORGE 2008 Launch of Genuine Steakhouse brand beef 2008 Canopy Home Decor brand launched 2008 Better Homes & Gardens launched 2009 Great Value redesigned and relaunched with “white” design 2009 Your Zone teen focused brand is introduced 2009 Ocean Pacific relaunched as Walmart exclusive brand 2009 Danskin Now launched as Walmart exclusive brand 2009 Mainstays is redesigned 2009 The Marketside brand is introduced on products 2009 World Table is introduced 2010 Great Value design evolves to include larger photos and panels of color 2010 Equate redesigned 2010 Home Trends redesigned and relaunched 2012 Pure Balance premium dog food brand is launched 2013 Great Value redesigned with a colorful category focus 2013 Sam’s Choice is redesigned and remerges 2013 Walmart tests Neo-Generic Basic Brand Price First www.mypbrand.com | 46 Private Brand Portfolio Evolutionary Scale This scale evaluates the complete Private Brand portfolio and determines its evolutionary state. There may be brands in the portfolio which are higher or lower on the scale than others. GENERIC Margin Focused LABEL Growth Focused BRAND Customer Focused Unbranded product is common “Customers do not need a brand” Packaging and products redesigned with an emphasis on better design and quality Brand is an important tool to build relationships and engage customers Brand management, package design and product development are considered unnecessary expenses Brand management and enhanced package design are beginning to gain respect Brand management, package design and product development are considered strategic investments and integral parts of the business Cheap basic product National Brand Equivalent (NBE) National Brand Equivalent (NBE) Multiple price points Add value through slightly better specs, pack size, etc National Brand Equivalent (NBE) Multiple quality tiers Add value through slightly better specs, pack size, etc Products that deliver on brand role and positioning Unique and differentiated products www.mypbrand.com | 47 Private Brand Portfolio Evolutionary Scale This scale evaluates the complete Private Brand portfolio and determines its evolutionary state. There may be brands in the portfolio which are higher or lower on the scale than others. GENERIC Margin Focused LABEL Growth Focused BRAND Customer Focused www.mypbrand.com | 48 The Portfolio & Brands Walmart owns or controls more than 50 distinct labels that exist primarily as names and logos on package that create merchandising and sourcing opportunities. The sheer number of labels create complexity and ensures each brand receives minimal brand management, marketing or advertising. These labels facilitate a highly effective merchandising strategy that easily delivers on the “Save Money” portion of their brand mantra but fails to deliver Brand assets that help Walmart customers “Live Better.” There are three essential types of brands within the Walmart portfolio. Private Label/Private Brands created and exclusively marketed by the retailer. They vary in scope (by department, category, category segment and even product) and architecture (i.e., Onn in Electronics and Onn Platinum). In many categories architecture is defined by pricing, quality, customer segmentation, life stage or design style. Licensed/Exclusive brands are brands that are licensed by the retailer from the brand owner and have existing equity. The brands and products within them are typically controlled by the retailer. This provides the retailer an opportunity to leverage brand equity in categories where their credibility is less than desirable (Better Homes & Garden in Home Decor). This type of brand may be used to either build long-term credibility (Ocean Pacific) or create short-term excitement and drive traffic (Missoni at Target). Generic/Unbranded: Products that carry no name or logo and make no effort to create a relationship with the customer beyond price. There is typically a consciously developed design system that fits into the category architecture, but is simply “unbranded.” These products are often used to give the customer the illusion of brand choice. Versions 2: As of November 2013 it appears that there is a significant strategic shift unfolding on the grocery side of the Walmart Private Brand portfolio. The redesign and re-emergence of Sam’s Choice and the testing of the neo-generic basic private label Price First are clear signs of a evolving portfolio. www.mypbrand.com | 49 Private Brand Portfolio – V2 Unbranded www.mypbrand.com | 50 Brand Roles Lifestyle Brand Brands may be clustered into the following brand roles based on their position, pricing, quality, merchandising and marketing. None of these brand roles are focused on Winning or Differentiation. Mainstream Plus Brand: Designed to rise up within the category at a more premium price point, and in many cases offer unique features versus mainstream national brands. Mainstream Brand: A label that is positioned to fill merchandising needs for price and quality – mainstream – Good/Better NBE product. It has the potential to become a brand if consumer positioning is considered. Mainstream Plus Mainstream Brand Category Brand Category Brand: A brand that is narrowly positioned to fill a specific category need. Lifestyle Brand: A brand that is broadly positioned to address a lifestyle or customer need. Department Brand: A brand that is the umbrella for multiple categories within and/or across a merchandising department. Department Brand IF SUCCESSFUL THE PRICE FIRST NEO\GENERIC BASIC BRAND WILL CREATE AN ADDITIONAL ROLE www.mypbrand.com | 51 Brand Roles HARDLINES FASHION CONSUMABLES Mainstream Plus World Table Sam’s Choice Pure Balance George Better Home & Gardens Mainstream Great Value Department Lifestyle Category White Cloud GeoGirl Flower Clear American Ol’ Roy Special Kitty ReliOn Lucky Duck Oakleaf Prima Della The Bakery Walmart Deli Marketside Equate Parent’s Choice Faded Glory Ocean Pacific Danskin Now Garanimals Starter No Boundaries geogirl Brahma Earth Spirit White Stag Mainstays Canopy Home Trends My Life as Wish I Was Golds Gym Your Zone Everstart Backyard Grill Backyard Classics Easy Home Kid Connection Protégé SuperTech Paw Print Way To Celebrate Onn Ozark Trail @ the office IF SUCCESSFUL THE PRICE FIRST NEO\GENERIC BASIC BRAND WILL CREATE AN ADDITIONAL ROLE www.mypbrand.com | 52 $Billion+ Brands Brands that have an estimated $1b in annual sales. www.mypbrand.com | 53 Tiering Grocery Example (Coffee) Fashion Example (Jeans) PREMIUM Illy Seven For All Mankind BEST Starbucks Lucky BETTER Folgers Levi’s $ GOOD Eight O’Clock Lee ¢ BASIC Generic (PRICE FIRST) Wrangler $$$$ $$$ $$ A portfolio architecture grid has been created for each section. The grid illustrates the placement of each brand in the portfolio in the given area based on price tiering and broad category. Tiers are representative of in-store pricing progression and do not necessarily indicate a shift in quality. Ideally a brand delivers a uniform level of quality and creates a consistent customer experience. This analysis is based solely on products and pricing with Walmart and may not be indicative of how the brand or product competes with other private brands or retailers. www.mypbrand.com | 54 THE PRICE FIRST TEST www.mypbrand.com | 55 Price First In early November 2013 Walmart introduced the neogeneric, extreme basic brand as a test in approximately 400 stores, the moves consolidated many of the generic and packer labels into one basic private label offering – it remains to be seen if the brand will expand outside of grocery to include the 100’s of unbranded sku’s across the store. While we applaud Walmart finally acknowledging the numerous unbranded and control label SKUs in grocery as private label products and creating a brand to tie them together – the 1970’s flashback design is at best disappointing, but at its worst it could set the industry back twenty years. With Lucky Duck, Prima Della, Marketside, Pure Balance, You Zone, Onn and Backyard Grill, Walmart has demonstrated their ability to create engaging wellpositioned and well-designed brands. This simply does not live up to those standards. www.mypbrand.com | 56 Price First Questions? How will customers react to a new private label that makes no apologies for low quality products? Will customers embrace the neo-generic package design or find it embarrassing? Will customers understand the difference between the two descriptively named brands Great Value and Price First? How will the introduction of Price First impact the penetration of private label in grocery? Is Walmart creating labels or building and managing BRANDS? Will the brand expand beyond grocery? www.mypbrand.com | 57 Price First Trademark Registration Walmart applied for the trademark in early 2012 and has now extended the application to more than twenty classes. Categories listed include: Laundry products, namely, bleaching preparations, anti-static dryer sheets, fabric softeners for domestic use, and stain removers; dishwashing detergent, laundry detergent Bleaching preparations and other substances for laundry use; cleaning, polishing, scouring and abrasive preparations; soaps; perfumery, essential oils, cosmetics, hair lotions; dentifrices. Apparatus for lighting, heating, steam generating, cooking, refrigerating, drying, ventilating, water supply, and sanitary purposes. Paper, cardboard and goods made from these materials, not included in other classes; printed matter; bookbinding material; photographs; stationery; adhesives for stationery or household purposes; artists’ materials; paint brushes; typewriters and office requisites (except furniture); instructional and teaching material (except apparatus); plastic materials for packaging (not included in other classes); printers’ type; printing blocks. Meat, fish, poultry and game; meat extracts; preserved, frozen, dried and cooked fruits and vegetables; jellies, jams, compotes; eggs, milk and milk products; edible oils and fats Coffee, tea, cocoa, sugar, rice, tapioca, sago, artificial coffee; flour and preparations made from cereals, bread, pastry and confectionery, frozen ices; honey, treacle; yeast, baking powder; salt, mustard; vinegar, sauces (condiments); spices; ice. Beers; mineral and aerated waters and other nonalcoholic drinks; fruit drinks and fruit juices; syrups and other preparations for making beverages. www.mypbrand.com | 58 Price First - Flyer www.mypbrand.com | 59 Price First - Flyer www.mypbrand.com | 60 Price First - Facebook www.mypbrand.com | 61 Price First - Product Existing Packer SKU Re-labeled SKU www.mypbrand.com | 62 Price First - Product Existing Packer SKU Re-labeled SKU www.mypbrand.com | 63 Price First - Product Existing Packer SKU Re-labeled SKU www.mypbrand.com | 64 Price First - Product Existing SKU with Walmart distribution clause Re-labeled SKU www.mypbrand.com | 65 Price First – Tiering - non test stores GOOD Existing SKU with Walmart Distribution clause Existing SKU with Walmart Distribution clause BETTER BEST Private Brand BASIC www.mypbrand.com | 66 Price First – Tiering – V2 GOOD Existing SKU with Walmart Distribution clause Existing SKU with Walmart Distribution clause BETTER BEST Private Brand BASIC www.mypbrand.com | 67 PORTFOLIO – PACKAGED CONSUMABLES Is the Strategy Evolving – V1? The recent introduction of redesigned brand packaging for Sam’s Choice on frozen rising crust pizza provides hope for the reemergence of Sam’s Choice. These SKU’s were converted from Great Value, which leads to questions about portfolio strategy. Manufacturer Brand Private Brand BASIC GOOD BETTER BEST PREMIUM OPPORTUNITY OPPORTUNITY NOT IN STORE www.mypbrand.com | 68 Is the Strategy Evolving – V2? GOOD OPPORTUNITY OPPORTUNITY BETTER BEST PREMIUM Manufacturer Brand Private Brand BASIC DISAPPEARING NOT IN STORE www.mypbrand.com | 69 LICENSING www.mypbrand.com | 70 Licensed/Exclusive Brands www.mypbrand.com | 71 Iconix Brand Group Three of Walmart's licensed brands (OP, Starter, & Danskin Now) are owned by the Iconix Brand Group. With a portfolio of more than 30 fashion and home brands touching every segment of retail distribution from luxury to mass market, Iconix licenses its brands to leading retailers and manufacturers worldwide. With innovative and creative advertising and promotions, Iconix is a leader in promoting and elevating brands through traditional and new media platforms. The Iconix business model is unique to the fashion industry: Allows retailer to leverage known brands while maintaining control of product development and global sourcing. Retailer outsources brand marketing to Iconix. Predictable revenue stream due to contractually guaranteed minimum royalty payments. No inventory, operating or product risk. Significantly higher EBITDA and net margins than traditional operating apparel companies. Strong free cash flow with low overhead and minimal capital expenditure requirements. Opportunity for accelerated growth through brand acquisition strategy. www.mypbrand.com | 72 The Licensing Giant I JEANS www.mypbrand.com | 73 Project Impact - 2008 In 2008, Walmart began Project Impact, the ambitious store and strategy remodeling effort. The goals of the project were: Cleaner, less cluttered stores designed to improve the shopping experience. Friendlier customer service. Focus on categories where the competition can be killed - Win, Place, Show. Project Impact was intended to reduce clutter, make the jammed aisles easier to navigate, and improve the look of the stores. Bill Simon, the COO of Wal-Mart US, told Daily Finance, "The net effect is you open up the customer space, you improve the shopping experience, you provide access and visibility to departments in the store that were previously difficult to shop, like apparel." Unfortunately, when the retailer implemented Project Impact at 600 U.S. stores, it had an unintended impact – sales suddenly declined. Part of the reason for the decline was the decision to de-clutter an area of the store called "Action Alley," which placed fast selling impulse items in the aisles of the store. And most important to this analysis was the SKU rationalization that focused on simplifying the shopping experience and improving profitability for remaining SKUs, consequently enabling the growth of Private Brand penetration and the reinvention of Great Value. On August 17, 2010, Walmart announced it was officially rethinking its innovative Project Impact strategy, as well as reviewing its aggressive product rationalization scheme, which according to Planet Retail data, led to it cutting the number of SKUs it offered in its Supercenters by approximately 15% last year. www.mypbrand.com | 74 Guarantee A guarantee containing the Walmart spark appears on the vast majority of packaged Private Brand goods as well as a unique toll free number and brand focused landing page on Walmart.com. In the World Table example above, the web address directs to the Walmart home page. www.mypbrand.com | 75 GREAT FOR YOU www.mypbrand.com | 76 PORTFOLIO – PACKAGED CONSUMABLES Great For You (Press Release) WASHINGTON, D.C., Feb. 7, 2012 – A year after pledging to develop a front-of-pack label that would give its customers an easier way to identify healthier food, Walmart, the nation’s largest food retailer, unveiled the Great For You icon at an event today in Washington, D.C. The icon, part of the company’s healthier food initiative, is an effort to implement a transparent, summary icon for its private label brand products backed by rigorous nutrition criteria. “Great For You” will initially appear on select Walmart Great Value and Marketside items, as well as on fresh and packaged fruits and vegetables at Walmart U.S. stores nationwide this spring. www.mypbrand.com | 77 PORTFOLIO – PACKAGED CONSUMABLES Great For You (From Walmart.com) www.mypbrand.com | 78 PORTFOLIO – PACKAGED CONSUMABLES Great For You Icon appears on their Great Value and Marketside brands in Dry Grocery, Frozen and across key Produce items like bananas. www.mypbrand.com | 79 PORTFOLIO – PACKAGED CONSUMABLES Great For You www.mypbrand.com | 80 PORTFOLIO – PACKAGED CONSUMABLES Great For You The icon appears across 32 Great Value subcategories and 16 Marketside items listed here. www.mypbrand.com | 81 PORTFOLIO – PACKAGED CONSUMABLES Great For You www.mypbrand.com | 82 PORTFOLIO – PACKAGED CONSUMABLES Great For You The Great For You initiative is designed to compete against numerous other retailers like NuVal, Ahold (Healthy Ideas) and Delhaize (Guiding Stars) who have developed their own ways of communicating nutritious alternatives in their stores. www.mypbrand.com | 83 THE BRANDS www.mypbrand.com | 84 FASHION www.mypbrand.com | 85 The Fashion departments at Walmart reinforce the overarching Walmart mantra, “Save Money, Live Better.” However, unlike other areas of the store, national brands have a secondary purpose and the Private Brand portfolio dominates the set. FASHION Portfolio Strategy Multiple brands are leveraged to engage different customer targets, demographics and lifestyles (White Stag = older missy customer, Ocean Pacific = sun and surf lifestyle). George and Faded Glory are confident megabrands that dominate the sets. Licensed brands wholly controlled by Walmart create relevant recognizable “national brands” for the Walmart customer while maintaining sourcing flexibility and margins: Ocean Pacific, Danskin Now, etc. Where National Brands exist, they are often sub-brands created for either Walmart or the channel: e.g., Levi’s Strauss Signature, Carter’s Child of Mine. www.mypbrand.com | 86 FASHION Portfolio Observations The Walmart retail brand dominates the consumer perception of the fashion set, consequently it is not as “cool” to shop at Walmart or wear Walmart brands. This is a clear advantage for Target, H&M and Uniqlo. However, the brands and products in the Walmart Private Brand portfolio are much better than the perception and are often on par with their competitors. Opportunities: Tell brand stories, create an emotional connection with the Walmart customer. Reinforce his/her decision to buy George, Faded Glory, Ocean Pacific, etc. by giving a reason to believe. George in America should live up to its European Standard. Build a global brand that customers know and love. Take a page from Joe Fresh and do it better. Own the plus size customer and give her clothes she is proud to wear at a great price. Know the Hispanic and African American customer and give her the styles, colors and patterns she wants – this could be a new brand opportunity. OP and NOBO have significant overlap in customer target and brand design. Make a Brand Promise that ensures correct sizing and consistent quality (no one feels good about buying product two sizes larger than they normally wear and that falls apart after the first wash). www.mypbrand.com | 87 FASHION Background 2009: In an effort to build fashion credentials and better compete with Target and the rising tide of fast fashion (H&M, Uniqlo), Walmart moved its fashion offices to NYC and increased staff to more than 275 associates. 2011: Walmart closes the NYC office, moves all operations to Bentonville and announces a shift in strategy, moving from a fashion focus to a back to basics approach focusing on their core customer. "We're very focused, very focused on winning and basics; on socks, underwear, jeans and basic tops. It's who we are; that's what we stand for," Chief Merchandising Officer Duncan MacNaughton said at an analyst conference in October 2011. www.mypbrand.com | 88 PORTFOLIO ARCHITECTURE Fashion - Her Juniors Misses Plus BEST Athletic American Casual Jeans Rock Girl Beach American Casual BETTER Beach www.mypbrand.com | 89 PORTFOLIO: HER MODERN Style Matrix TRADITIONAL PLAY WORK www.mypbrand.com | 90 PORTFOLIO ARCHITECTURE Fashion - Him Athletic Teen BEST Men’s American Casual BETTER Beach www.mypbrand.com | 91 PORTFOLIO: HIM MODERN Style Matrix TRADITIONAL PLAY WORK www.mypbrand.com | 92 PORTFOLIO ARCHITECTURE Fashion - Children BEST Boys/Girls Girls Athletic Boys Athletic Surf & Skate George Classic Kids Beach American Casual BETTER American Casual www.mypbrand.com | 93 PORTFOLIO: CHILDREN MODERN Style Matrix TRADITIONAL PLAY SCHOOL www.mypbrand.com | 94 PORTFOLIO ARCHITECTURE Fashion - Shoes BEST Her Him Children George Athletic Beach Eco Casual Athletic Beach Work Casual Athletic Beach BETTER Casual www.mypbrand.com | 95 PORTFOLIO: SHOES MODERN Style Matrix TRADITIONAL PLAY WORK www.mypbrand.com | 96 PORTFOLIO – FASHION George Brand Type Private Brand Brand Role Mainstream Plus Naming Named after the British designer George Davies who created the brand for Walmart subsidiary Asda. Brand Architecture One consistent tier/level of quality, focused on “better” modern clothing at a great price. Brand Design Black packaging and consistent use of the wordmark create a modern fashion brand. Marketing & Merchandising Vehicles George is aggressively marketed in the U.K. and Canada with traditional advertising, social media, in-store, out of home and web. In the U.S. it is visible in-store and makes an occasional appearance in flyers. There is no website or social media presence. Product Categories All Fashion Categories www.mypbrand.com | 97 PORTFOLIO – FASHION George: Background George was launched by the U.K. retailer Asda in 1990. The brand was created by designer George Davies for Asda. Davies was the founder of the iconic British retailer NEXT and creator of the Private Brand Per Una for Marks & Spencer. Davies is no longer associated with the brand, although it has aimed to remain true to the high quality, low price business model he established. Asda was acquired by Walmart on July 26, 1999 for £6.7 B ($10.8 B). George is sold in Walmart subsidiaries around the world including: Argentina, Canada, China, India, Japan, Mexico, and the U.S. In early 2012, Asda partnered with Azadea Group to launch the George fashion label in the Middle East, while a partnership with SandpiperCI will see the brand hit stores in Jersey and Guernsey. Estimated global sales of $3-4 B. www.mypbrand.com | 98 PORTFOLIO – FASHION George: History, 1990 www.mypbrand.com | 99 PORTFOLIO – FASHION George: Canada www.mypbrand.com | 100 PORTFOLIO – FASHION George: England Store www.mypbrand.com | 101 PORTFOLIO – FASHION George: Her www.mypbrand.com | 102 PORTFOLIO – FASHION George: Him www.mypbrand.com | 103 PORTFOLIO – FASHION George: Children www.mypbrand.com | 104 PORTFOLIO – FASHION Faded Glory Brand Type Private Brand Brand Role Mainstream Naming The name evokes a casual American heritage and is appropriate to the category and product. Brand Architecture One consistent tier/level of quality, focused on mimicking national brand leaders and “American casual” clothing at a great price. Brand Design Consistent brand design across all categories. Brand borrows heavily from the Americana its name evokes including a red, white and blue logo with stars. Brand, packaging and product are heavily influenced by American Eagle, Aeropastale and Levi’s. Marketing & Merchandising Vehicles Product Categories All Fashion Categories Occasional item-focused flyer presence Department and rack signage No web presence No social media www.mypbrand.com | 105 Background In 1972, Billy Kolber partnered with brothers Michael and Jimmy Shane to launch Faded Glory. The brand helped popularize the bleached denim look and appeared in stores like the classic 1980’s specialty store Merry-Go-Round. Kolber later became president of Bonjour jeans. The team was able to combine smart marketing and attention to retailers into a remarkable, although short-lived, success. The company, Faded Glory Jeans by Appendagez Inc., rocketed to sales of $55 million within three years of introducing one of the clothing industry's first lines of pre-faded denim. But the Faded Glory saga ended sadly. The company's sales peaked at $55 million in 1976, plateaued for the next few years, then plummeted. Michael Shane sold his interest in 1979. Faded Glory folded operations a few years later and the brand was later purchased by the Dayann brothers. Walmart acquired the brand in the early 1990’s and resurrected it as a Private Brand. www.mypbrand.com | 106 PORTFOLIO – FASHION Faded Glory: Her www.mypbrand.com | 107 PORTFOLIO – FASHION Faded Glory: Him www.mypbrand.com | 108 PORTFOLIO – FASHION Faded Glory: Children www.mypbrand.com | 109 PORTFOLIO – FASHION Faded Glory: Shoes www.mypbrand.com | 110 PORTFOLIO – FASHION White Stag Brand Type Private Brand Brand Role Category Naming Name is derived from a heritage fashion company. Brand Architecture One consistent tier/level of quality, focused on brand leaders. Brand Design Consistent across entire product line with no deviation. Feels dated and old, and could use an update to reflect its heritage and better engage its authenticity. Marketing & Merchandising Vehicles Product Categories Women’s Missy Clothing and Accessories Occasional item-focused flyer presence Department and rack signage No web presence No social media presence www.mypbrand.com | 111 PORTFOLIO – FASHION White Stag: Background White Stag was founded as a skiwear manufacturer in Portland, Oregon, and purchased by the Warnaco Group in 1966, which in turn sold the brand to Walmart in 2003. 1929: Harold S. Hirsch, Max's 21-year old son, returned to Portland after graduating from Dartmouth College, where he had been a member of the school's ski team. He began making downhill skiing apparel, starting with a ski suit, which Hirsch-Weis began marketing in 1931 as White Stag, from the literal English translation of the parent company's names weis and hirsch. 1956: Due to the popularity of the sportswear line, Hirsch-Weis changed its name to White Stag. 1966 White Stag was acquired by the Warner Brothers Company, which later became the Warnaco Group. 1986: Former Warnaco executive Linda J. Wachner engineered a $550 million hostile takeover of Warnaco. White Stag was reorganized with other activewear lines, including Speedo, into a new company, Authentic Fitness Corporation. 1992 Authentic Fitness Corporation went public. 2000: Saddled with debt from acquisitions and mergers, Warnaco filed for Chapter 11 protection. 2003 Warnaco emerged from bankruptcy and sold the White Stag trademark to Walmart. www.mypbrand.com | 112 PORTFOLIO – FASHION White Stag: Merchandising www.mypbrand.com | 113 PORTFOLIO – FASHION White Stag: Design www.mypbrand.com | 114 PORTFOLIO – FASHION Nobo – No Boundaries Brand Type Private Brand Brand Role Lifestyle Naming The name is aspirational and emotional – appropriate to the target teen customer. Unlike OP, this is a brand with a bit of an edge that speaks to that inner rock girl. Brand Architecture One consistent tier/level of quality, focused on juniors clothing at a great price. Brand Design Consistent across entire product line with no deviation. Fun and appropriate – although it overlaps OP. Marketing & Merchandising Vehicles Product Categories All Fashion Categories in Juniors Occasional item-focused flyer presence Department and rack signage No web presence No social media presence www.mypbrand.com | 115 PORTFOLIO – FASHION No Boundaries: Merchandising www.mypbrand.com | 116 PORTFOLIO – FASHION No Boundaries: Merchandising www.mypbrand.com | 117 PORTFOLIO – FASHION No Boundaries: Packaging www.mypbrand.com | 118 PORTFOLIO – FASHION Earth Spirit Brand Type Private Brand Brand Role Category Naming Evocative and imitative – it appeals to the Birkentsock/Uggs/Clarks customer. Brand Architecture One consistent tier/level of quality, focused on brand leaders. Brand Design Consistent across entire product line with no deviation. Dated and unattractive – could use a redesign. Marketing & Merchandising Vehicles Product Categories Shoes Occasional item-focused flyer presence Department and rack signage http://www.earthspiritshoes.com/ No social media presence www.mypbrand.com | 119 PORTFOLIO – FASHION Earth Spirit: Packaging www.mypbrand.com | 120 PORTFOLIO – FASHION Earth Spirit: Product www.mypbrand.com | 121 PORTFOLIO – FASHION Earth Spirit: Marketing www.mypbrand.com | 122 PORTFOLIO – FASHION Brahma Brand Type Private Brand Brand Role Category Naming Name that clearly speaks to strength and masculinity, cueing to the type of bull. Brand Architecture One consistent tier/level of quality, focused on brand leaders. Brand Design Consistent across entire product line with no deviation. Package design is basic and effective. Marketing & Merchandising Vehicles Product Categories Men’s Shoes and Boots Occasional item-focused flyer presence Department and rack signage No web presence No social media presence www.mypbrand.com | 123 PORTFOLIO – FASHION Brahma: Packaging www.mypbrand.com | 124 PORTFOLIO – FASHION Brahma: Product www.mypbrand.com | 125 PORTFOLIO – FASHION Ozark Trail For more information see the Toys & Sports chapter. Brand Type Private Brand Brand Role Department Naming The origin of the name comes literally from the Ozark mountain range in Arkansas, and by saying “Trail,” there is a connection into the world of camping and the outdoors. Brand Architecture One consistent tier/level of quality, focused on the brand leader, Coleman. Brand Design Consistent design system with uniformity across portfolio. Color cues do not play off Coleman’s equity, but are reminiscent of Kelty, a recognizable brand they do not carry. Many products presented in bi-lingual format (Spanish), though not all. Marketing & Merchandising Vehicles N/A Note: Walmart digitally markets the camping section and “top rated gear” overall, but it is not specific to Ozark Trail. Product Categories PORTFOLIO/CATEGORIES: 128 items. Camping Tents, Sleeping Bags, Pads/Air Mattresses, Camping Furniture, Canopies/Screen Houses, Coolers/Totes/Canteens, Tent Lights/Flashlights/Lanterns/Headlamps, Tent Accessories, Camp Stoves, Camp Cookware/Flatware, Grills, Knives/Multi-tools, Water Bottles, Hiking Boots (Shoe Department) www.mypbrand.com | 126 PORTFOLIO – FASHION Shoes – Ozark Trail www.mypbrand.com | 127 PORTFOLIO – FASHION Ocean Pacific Brand Type Licensed/Exclusive – Licensed from Iconix Brand Role Lifestyle Naming The historic Surf Brand – the name is part of the American psyche. Brand Architecture One consistent tier/level of quality. Brand Design Classic 1970s-80s surf with a modern flair. Marketing & Merchandising Vehicles Walmart works closely with the Iconix Brand Group to promote and grow the brand. Iconix has run full fledged campaigns including celebrity spokespeople. Web: http://www.op.com Facebook: https://www.facebook.com/Op Twitter: https://twitter.com/OpOceanPacific Product Categories Casual Clothing, Bathing Suits, Swim Accessories, Sunglasses, Shoes, Toys, Bedding www.mypbrand.com | 128 OP: Background Founded in 1972, Ocean Pacific was the first company to successfully translate the surfing lifestyle into a comprehensive fashion idea by focusing on the west coast youth scenefusing sports, music, art, and fashion with beach culture. Each year since Ocean Pacific relaunched in 2009, the ad campaign has featured a starstudded group of the most current young celebrity talent in T.V., music, movies and more! Some of the Ocean Pacific celebrities have included: Cory Monteith, Jessica Szohr, Dianna Agron, Trevor Donovan, Alex Meraz, Cassie, Rob Kardashian, Kat Graham, Mark Salling, Chord Overstreet and Aly Michalka. Acquired by the Iconix Brand Group in 2006. Brand Positioning: Young Men to Juniors, ages 12-24 Kids, ages 7-13 Authentic, year-round California lifestyle Exclusive retail license with Walmart Product categories include apparel, swimwear, hardgoods, accessories and fragrance Source: http://www.iconixbrand.com/op_history.html www.mypbrand.com | 129 PORTFOLIO – FASHION OP: Merchandising – Her www.mypbrand.com | 130 PORTFOLIO – FASHION OP: Merchandising – Him www.mypbrand.com | 131 PORTFOLIO – FASHION OP: Merchandising – Kids www.mypbrand.com | 132 PORTFOLIO – FASHION OP: Merchandising - Shoes www.mypbrand.com | 133 PORTFOLIO – FASHION OP: Merchandising - Toys www.mypbrand.com | 134 PORTFOLIO – FASHION OP: Merchandising - Bedding www.mypbrand.com | 135 PORTFOLIO – FASHION OP: Celebrity Spokespeople www.mypbrand.com | 136 PORTFOLIO – FASHION OP: Merchandising www.mypbrand.com | 137 PORTFOLIO – FASHION OP: Merchandising www.mypbrand.com | 138 PORTFOLIO – FASHION OP: Merchandising www.mypbrand.com | 139 PORTFOLIO – FASHION Danskin Now Brand Type Licensed/Exclusive – Licensed from Iconix Brand Role Lifestyle Naming Established and credible workout brand – the name refers to its dance origins. Brand Architecture One consistent tier/level of quality, focused on brand leaders. Brand Design Consistent across entire product line with no deviation. Credible, modern brand design reinforces the Walmart customers’ buying decision. Marketing & Merchandising Vehicles Walmart works closely with the Iconix Brand Group to promote and grow the brand. Iconix has run full fledged campaigns including celebrity spokespeople. Web: http://danskinnow.com/ Facebook: http://www.facebook.com/DanskinNOW Twitter: https://twitter.com/Danskinow Product Categories Woman, Juniors and Girl Workout, Athletic Wear, Dance Wear and Accessories www.mypbrand.com | 140 PORTFOLIO – FASHION Danskin: Background Danskin is owned by Iconix Brand Group and was founded in 1882 in New York City by brothers Joel and Benson Goodman to manufacture goods specifically for dancers' needs, and has since been one of the world’s leading manufacturers of dance and active wear for girls and women. They introduced the first knit tights and leotards, and pioneered the production of such dance standards as fishnet stockings. Throughout the late 19th century and the first half of the 20th century, Danskin dominated the market for dancewear in the United States, and expanded their influence by introducing Danskin for gymnasts and figure skaters. In the 1950's, they created the first nylon bodywear for the general population. In 1976, the company began to market swimwear. By the end of the decade, Danskin boasted an 80% share of the bodywear market overall. In 2007, 125 years after it began, Danskin was ranked #23 of the WWD top 100 brands, and #5 in activewear (above Puma and Converse), demonstrating its stronghold in the women's athletic apparel realm. Danskin is now one of the most trusted brands for women's fitness apparel from running to yoga and dance. In addition, the Iconix has a direct-to-retail license with Walmart for for the sub-brand Danskin Now for apparel and fitness equipment. The Danskin Now brand was repositioned and relaunched in January 2009 with an expanded assortment of products and new spokesperson Gabrielle Reece. Brand Positioning: Women and Girls, ages 15-54 Activewear for any female from 3-93 Source: http://www.iconixbrand.com/danskin_history.html www.mypbrand.com | 141 PORTFOLIO – FASHION Danskin Now In 2009 Walmart and the Iconix Group relaunched Danskin Now with a campaign that included professional volleyball player, sports announcer, fashion model and actress, Gabrielle Reese. www.mypbrand.com | 142 PORTFOLIO – FASHION Danskin Now: Flyer www.mypbrand.com | 143 PORTFOLIO – FASHION Danskin Now: Merchandising www.mypbrand.com | 144 PORTFOLIO – FASHION Danskin Now: Merchandising www.mypbrand.com | 145 PORTFOLIO – FASHION Danskin Now: Shoes www.mypbrand.com | 146 PORTFOLIO – TOYS & SPORTS Garanimals Brand Type Licensed/Exclusive Brand Role Lifestyle Naming Playful and relevant, the name has built credibility with moms over the last 40 years. Brand Architecture One consistent tier/level of quality. Brand Design Consistent and slightly nostalgic, the current brand design evokes Mom’s memories of the brand. Marketing & Merchandising Vehicles Product Categories Clothing, Decor, Toys, Shoes Facebook: http://www.facebook.com/garanimals Web: http://www.garanimals.com/ Blog: http://blog.garanimals.com/ Twitter: https://twitter.com/Garanimals Pinterest: http://pinterest.com/garanimals/ YouTube: http://www.youtube.com/Garanimals www.mypbrand.com | 147 PORTFOLIO – TOYS & SPORTS Garanimals: Background Garan, Inc., is engaged in the design, manufacture, and sale of men's, women's, and children's apparel under the Garanimals, Garan, Bobbie Brooks, and private label names. Most of Garan's output is sold to mass merchandisers, major national chain stores, department stores, and specialty stores. Walmart accounts for over 85% of company sales. Garanimals was born in 1972 out of the idea that there is a positive connection between how children dress and how they feel about themselves. The kid-friendly Garanimals mix-and-match separates provide a simple, coordinated system that makes clothes easy to pair and fun to wear. The Garanimals pairing system brings creativity and independence to young children as they select their own clothes and dress themselves. Through these small, successful decisions, children develop early feelings of self-confidence. Key Dates: 1957: Garan is incorporated as a merger of seven companies. 1961: The company goes public. 1972: Branded children's apparel is introduced under the Garanimals label. 1975: A licensing division is established to distribute clothing bearing the designs of professional sports teams. 1991: Garan becomes one of the few apparel companies allowed to use characters from Disney movies on its products. 2002: Garan is acquired by Berkshire Hathaway, Inc. www.mypbrand.com | 148 PORTFOLIO – TOYS & SPORTS Garanimals: Merchandising www.mypbrand.com | 149 PORTFOLIO – TOYS & SPORTS Garanimals: Merchandising www.mypbrand.com | 150 PORTFOLIO – TOYS & SPORTS Garanimals: Clothing www.mypbrand.com | 151 PORTFOLIO – TOYS & SPORTS Garanimals: Shoes www.mypbrand.com | 152 TOYS & SPORTS Garanimals: Bedding www.mypbrand.com | 153 TOYS & SPORTS Garanimals: Toys www.mypbrand.com | 154 TOYS & SPORTS Garanimals: Marketing Fall 2012 Television Advertisement http://www.youtube.com/watch?v=tFS0Q-d-HSA www.mypbrand.com | 155 TOYS & SPORTS Garanimals: Marketing Website: http://www.garanimals.com/ Facebook: http://www.facebook.com/garanimals Blog: http://blog.garanimals.com/ www.mypbrand.com | 156 PORTFOLIO – TOYS & SPORTS Starter Brand Type Licensed/Exclusive – Licensed from Iconix Brand Role Lifestyle Naming Evokes a sports heritage. Brand Architecture One consistent tier/level of quality, focused on mimicking the brand leader at a significantly lower price. Brand Design Consistent across entire product line with no deviation. Marketing & Merchandising Vehicles Walmart works closely with the Iconix Brand Group to promote and grow the brand. Iconix has run full fledged campaigns including celebrity spokespeople. Web: http://starter.com/athletic/ Blog: http://starter.com/athletic/blog/ Facebook: https://www.facebook.com/Starter Twitter: https://twitter.com/Starterbrand Instagram: http://instagram.com/starterofficial Pinterest: http://pinterest.com/officialstarter/ although there is no activity YouTube: http://www.youtube.com/officialStarter Product Categories Men’s and Boys Athletic Apparel and Accessories, Men’s and Boys Shoes, Girls Shoes www.mypbrand.com | 157 PORTFOLIO – TOYS & SPORTS Starter: Background Starter stands for heritage, authenticity and sports performance; it defines fun, team, value and community through its commitment to producing sports clothing and footwear to the highest standards of style, performance and value possible. A premium athletic brand established in 1971, Starter pioneered the fusion of sports clothing with popular culture by forging partnerships with the major pro basketball, football, baseball, hockey and college leagues. A trusted athletic brand with over 35 years of heritage, Starter's brand equity has been built over the past three decades through its association with professional, collegiate and Olympic sports as well as athlete endorsers. In 2008, Starter relaunched the brand with its new spokesperson, Tony Romo, the starting Quarterback for the Dallas Cowboys. Tony is an all-American athlete that worked hard to be where he is today, making him a great face for the brand. The brand promise: Performance at a value. Brand Positioning: Men and Boys, ages 15-45 Authentic, yet accessible, fan-based active-wear Exclusive retail license with Walmart Distributed in over 3,500 retail stores High consumer awareness Vintage Starter Jackets will relaunch in fall 2013 Source: http://starter.com/ www.mypbrand.com | 158 PORTFOLIO – TOYS & SPORTS Starter: Tony Romo Tony Romo Signs Largest Endorsement Deal in NFL History Dallas Cowboy quarterback Tony Romo has signed a five-year, $10 million endorsement deal with STARTER, which is believed to be the biggest footwear and apparel deal in NFL history. The closest deal prior was Reggie Bush’s five-year, $5 million deal with adidas. What makes the deal interesting is that Reebok has an exclusive agreement with the NFL. With that deal in place, Romo will be prohibited from wearing STARTER footwear on the field during NFL games. www.mypbrand.com | 159 PORTFOLIO – TOYS & SPORTS Starter: Merchandising www.mypbrand.com | 160 PORTFOLIO – TOYS & SPORTS Starter: Flyer www.mypbrand.com | 161 PORTFOLIO – TOYS & SPORTS Starter: Packaging www.mypbrand.com | 162 PORTFOLIO – TOYS & SPORTS Starter: Sports Equipment Starter is seen here applied within the soccer segment, but has the potential to be utilized more broadly across traditional sports – football, basketball, hockey, baseball, etc. www.mypbrand.com | 163 PORTFOLIO – TOYS & SPORTS Starter: Shoes www.mypbrand.com | 164 TOYS & SPORTS Starter: Product www.mypbrand.com | 165 TOYS & SPORTS Starter: Product www.mypbrand.com | 166 PORTFOLIO – FASHION Miss Tina Launched 2010 Plus Size The House of Deréon and Deréon designer – and mother of superstar Beyoncé – just introduced her newest fashion line, Miss Tina by Tina Knowles, exclusively at Walmart. The 30-piece collection – which includes everything from dresses to track suits with most items under $20 – is available in sizes 2 to 20, something Knowles is passionate about. www.mypbrand.com | 167 PORTFOLIO – FASHION Bella Bird Launched 2011 Affordable, modest and fashionable apparel for women. The brand has modest-cut skirts, dresses and tops in soft jersey knits and fun cotton prints for $22 or less. www.mypbrand.com | 168 PORTFOLIO – FASHION LEI l.e.i. (an acronym that stands for Life Energy Intelligence) is an American clothing company mainly targeted at teenage girls and young women. Launched in 1989, l.e.i. is owned by Jones Apparel Group and is headquartered in Los Angeles, California. www.mypbrand.com | 169 PORTFOLIO – FASHION Free Tech The brand is owned by Free Country who manufactures a variety of outerwear that mimics premium and national brands under a number of different names for discounters across the country. www.mypbrand.com | 170 Christopher Durham Christopher Durham is the president and founding partner of the retail and Private Brand consultancy Folio28. He is a consultant, strategist and retailer with close to 20 years of real-world retail and corporate experience creating, launching and building numerous billion dollar Private Brands. His influential website, My Private Brand (www.mypbrand.com), seeks to drive the changing Private Brand landscape, focusing on the emerging art and science of Private Brand management. With readers from more than 67 countries and more than 2,500 stories, the site has helped push the industry from the dark ages of private label into the new era of retailer owned BRANDS. In early 2012, he launched the groundbreaking site Prêt a Marque (www.pretamarque.com), dedicated to the growth and development of fashion and beauty exclusive, licensed and Private Brands. While working at Lowe’s Home Improvement, he developed and implemented the Private Brand portfolio strategy for their $10B portfolio of Private Brands as well as creating and managing several of their billion dollar brands. Prior to Lowe's, he served as Brand Manager at Delhaize America where he developed and delivered retail brand marketing as well as Private Brand strategy and development for Food Lion, Bloom, Bottom Dollar and Harvey’s. Christopher’s first book, Fifty2: The My Private Brand Project, will be published in early 2014. He is a columnist for Global Retail Brands magazine and a member of the editorial board and regular contributor to Private Label Buyer magazine. Dynamic in his presentation, while down to earth and frank in his opinions, he is a sought after keynote speaker who has presented at numerous conferences including: Packaging that Sells, Private Brand Movement, Shopper Insights in Action, FMI Private Brand Summit, Private Label Buyer Conference and the Own Label Conference in London, England. He lives in Omaha, Nebraska with his wife and two daughters. www.mypbrand.com | 487 Perry Seelert Perry Seelert is a retail branding and marketing expert with a passion for challenging conventional strategy and truths. Recognized as one of the leading authorities on retailers’ proprietary brands, he has shaped retail clients’ programs directly across four continents. He was one of the first to lead the shopper marketing revolution as VP/Management Director of Saatchi & Saatchi’s Collaborative Marketing division, now Saatchi X. There he was responsible for leading this worldwide agency’s initiative to drive Procter & Gamble’s co-marketing at key retail customers in the U.S. Perry is the former Strategic Partner of united*, an award-winning branding and design firm he co-founded in 2006. united* has been embraced by many of the world’s most influential companies including Pepsi, Lowe’s Home Improvement, CVS, A&P Supermarkets, Hearst Corporation and Starwood Hotels. He built united’s CPG and retail business across eight distinct classes of trade. Perry is a dynamic presenter who captivates audiences with his unique insight into branding, innovation and how CPGs can marry their strategies into the environment they live in. His highly rated presentations have been featured at the Institute of International Research’s “Future Trends” and “Private Label Impact” conferences, CIES, the global food business Future Leaders’ Forum, IRI’s Consumerama, Western Michigan University’s annual food marketing conference and Daymon Worldwide’s Biennial forums. Prior to united*, Perry led C&M Marketing, a 50+ person design firm and subsidiary of Daymon Worldwide, Inc, and was Chief Marketing Officer of the parent organization partnering closely with retailers like Safeway, Meijer, HEB, Aeon (Japan) and Progressive (New Zealand). He is a graduate from Northwestern’s Kellogg School and Hamilton College. Perry and his wife, Karen, live in Wilton, Connecticut with their three children. www.mypbrand.com | 488