1. The Top 20
Most Valuable
Global Retail
Brands 2011
Digital
reshapes
retail
The new customer journey
Brand valuations by
Brand performance measures
Brand analysis by
Forward insights & implications
Commentary by WPP Companies
Edition

2. Welcome and thank When we introduced the first BrandZ™
Most Valuable Global Retail Brands study
in 2009, retail brands were struggling to
This study draws on our expertise. Millward
Brown Optimor provided the valuations
based on BrandZ™, the world’s largest
you for your interest in navigate through the recession, unsure
when the consumer appetite for spending
would return and what shape it would take.
and most comprehensive brand equity
tool. Since its creation 13 years ago, over
2 million consumers and B2B customers
this third annual WPP Amazon ranked third with a valuation of
$21.3 billion, about half of Walmart’s,
which topped the chart.
across more than 30 countries have shared
their opinions about thousands of brands.
Kantar Retail interpreted key retail brand
BrandZ™ Most Valuable This year, with a brand value of $37.6
billion, Amazon overtook Walmart for
developments and provided insights into
competitive advantages and challenges.
Global Retail Brands study. first place. That achievement reflects the
extraordinary vision and performance of
Amazon, of course. But it also crystallizes
New this year, several other WPP
companies added commentary to further
illuminate the impact of digital on the
the transformative influence of digital on path to purchase and shopper marketing
shopper habits and portends much more practices, including: FITCH, TNS,
to come. eCommera, I-Behavior and G2.
The study contains insight that can
One thing is certain. All the assumptions strengthen your business.
of shopper marketing are in flux.
Understanding the possibilities requires the I invite you to contact me directly with
kind of extensive global knowledge across any questions or to learn more about how
the communications disciplines offered WPP can help you better understand and
by WPP. We have offices in more than compete successfully in the ever-changing
100 countries and a retail practice across world of retailing.
our operating companies that extends
from insight to activation. It includes
research, advertising, marketing, digital,
communications planning and media, PR,
shopper marketing and retail.
Sincerely,
David Roth
WPP
droth@wpp.com
Valuations Millward Brown Optimor
Analysis Kantar Retail
Design Lambie-Nairn
Writing Ken Schept
The BrandZ™ Most Valuable Global Retail Brands 2011 2

3. Contents
INTRODUCTION
Welcome 1
Contents 4
Preface 5
Overview 7
PROFILES/Commentary
UNDERSTANDING THE NEW
CUSTOMER JOURNEY 13
Amazon 17
Walmart 19
Tesco 21
Carrefour 23
SHOPPER MARKETING AND DIGITAL 25
Target 29
eBay 31
Home Depot 33
Aldi 35
Managing an E-Commerce
Business 37
Auchan 41
Ikea 43
Lowe’s 45
Marks & Spencer 47
FROM BROWSING TO PURCHASE 49
Best Buy 53
Costco 55
Lidl 57
Kohl’s 59
Zero-waste advertising 61
Asda 65
Sam’s Club 67
Sainsbury’s 69
Safeway 71
CONCLUSION
The Top 20 summary chart 73
Take Outs 75
Methodology 77
Resources 81
3 The BrandZ™ Most Valuable Global Retail Brands 2011 4

4. Preface This third annual WPP
BrandZ study of the Top 20
Most Valuable Global Retail
These thought pieces discuss how
retailers and brand marketers can most
effectively approach shopper marketing
in a world where the online and physical
Retail itself is becoming a bit Brands considers many
of the salient forces acting
realms are interconnected and shoppers,
empowered with a digital mobile devices,
can be reached anywhere anytime. The
like the path to purchase— on retailing today and
distills key themes that
commentaries topics include:
unpredictable, fast changing help explain events and
• Ways to understand the new
consumer journey
and difficult to summarize. anticipate the future.
The key themes include a shift to smaller
• Research revealing when browsers
become purchasers
store formats, especially in mature markets,
the intensifying search for growth in fast- • Purchase behavior viewed across
growing markets and the transformative retail channels
impact of digital as shopping becomes
a seamless multichannel activity. • Key prerequisites for making money
with e-commerce
The themes, of course, impact not just
the Top 20 retail brands, but retailers of all • The interconnection of shopper
sizes and in most parts of the world. And marketing, digital and e-commerce
because digital may be the most ubiquitous
of all the trends, this study includes a As in prior BrandZ retail studies, each
collection of useful commentaries on the of the Top 20 brands is summarized with
revolutionary impact of digital on the path a review of strategies, highlights of key retail
to purchase. developments during the past year and
forward-looking insights and implications.
5 The BrandZ™ Most Valuable Global Retail Brands 2011 6

5. Overview Amazon grew 37 percent
in brand value in 2010,
surpassing Walmart as
Unable to rely on new stores to drive
sales growth, retailers must maximize
sales productivity from existing customers
to grow “share of wallet.” Similarly, the
Consumer shopping habits and
disruptive power of digital, especially
the world’s most valuable mobile, requires that retailers astutely
retail brand. engage shoppers anywhere and anytime
digital access change retailing The Amazon performance occurred in a
to grow “share of decision.” These
imperatives are reflected in several retail
year when retail brand value appreciated by trends including:
only 2 percent overall and few other brands
increased sharply in value. Examples of • Growth of smaller stores: Especially in
significant brand value growth, such as mature markets, retailers are opening
IKEA’s 28 percent rise, mostly reflected smaller formats to reach customers in
recovery from recession lows. urban or rural areas.
Since its inception in 1994, Amazon has • Focus on discount and private label:
grown to be worth $37.6 billion in brand To respond to shopper price sensitivity,
value, reflecting the commercial success retailers are emphasizing discount
Amazon has enjoyed and its revolutionary formats and private label ranges.
impact on retailing worldwide. Because of
Amazon’s influence, the path to purchase • Multichannel presence: With retail
no longer moves linearly to a physical store space no longer defined by four walls,
but exists in time and space wherever merchants are trying to seamlessly link
shoppers view products, promotions and their physical and virtual operations.
purchasing suggestions.
These trends are present globally. They’re
The disappearance of the superstore unfolding as retail growth shifts dramatically
bookseller Borders during the summer of to fast-growing markets. Markets other
2011 symbolized the vulnerability of chains than the US, Western Europe and Japan
trading in this altered retail universe while are expected to drive more than 67 percent
weighted with real estate acquired when of retail sales growth over the next five
consumers favored large footprint stores years, according to Kantar Retail. China
with myriad SKUs. It also reflected the alone will account for over 21 percent of
hyper competition for the patronage of growth during that period, Kantar predicts.
frugal, recession-chastened consumers. Meanwhile, Walmart’s purchase of the
Massmart chain in South Africa suggests a
new chapter has opened in global retailing.
7 The BrandZ™ Most Valuable Global Retail Brands 2011 8

6. OVERVIEW
In the US, Costco continued to have great
Smaller stores The shift to smaller stores extends beyond
food. Two US home improvement warehouse success with its Kirkland Signature brand,
The shift to smaller stores is most evident retailers, Home Depot and Lowe’s, are a private label recognized by consumers as
among major chains in North America and opening smaller units. Best Buy, the a national brand. Target strengthened the
Western and Eastern Europe, but it reflects electronics retailer, is opening small stores Up & Up line, which it introduced several
lessons learned from experience gained based on knowledge gained in a venture years ago. The brand operates mostly as
in emerging markets. While the trend cuts with the UK’s Carphone Warehouse. a “reflective” private label, meaning that it
across all product categories, it is especially Most notably, IKEA, known for its giant, helps drive margin while depending on the
prevalent in food, a trend that Kantar Retail labyrinthine outlets, is planning smaller, multi- adjacent national brand for authority.
identifies as proximity food retailing. level stores to penetrate urban locations.
In general, retailers calibrated the balance
With growth from its supercenters flattening Discount and private label between private label and national brands
to build margin while benefiting from the
in the US, Walmart continues to experiment
with smaller formats. Its most recent entry is Carrefour unified its many convenience traffic-drawing power of national brand
Walmart Express, an outlet of about 14,000 store brands under the Carrefour City and promotions. As both private label and
sq. ft. compared with an average size of Carrefour Contact banners. While the change national brand promotions reduce prices,
almost 200,000 sq. ft. for the roughly 3,000 should help Carrefour expand into smaller it becomes especially important to for
superstores that Walmart operates in the US. markets, opportunities to better leverage its retailers to persuade each customer to
private label, marketing and merchandising buy more merchandise, ensuring sufficient
Walmart gained experience operating small programs drove this development. “share of wallet.”
stores with its Bodega Aurrera banner in
Mexico. Through its UK holding, Asda, It acknowledges the ubiquitous
Walmart acquired Netto, a small-store chain presence of deep discounters Lidl
that will be rebranded Asda Supermarket.
These outlets, which average 8,000 sq. ft.,
and Aldi across Europe and the
will help Asda reach locations inaccessible diminishing appeal of hypermarkets,
with its supercenters, which average 85,000 which lack discount’s focused
sq. ft., or even its superstores of about price message and convenience.
45,000 sq. ft. Tesco also is relying on smaller
hypermarkets and convenience
Also in the UK, the grocer Sainsbury’s
operates convenience stores called
banners as it fills in its presence in
Sainsbury’s Local, and Marks & Spencer Central and Eastern Europe.
intends to accelerate the rollout of its
M&S Simply Food convenience stores. Meanwhile, Lidl added more branded
Convenience stores are among Tesco’s product to its overwhelmingly private-label
many formats, too. Having entered the US product mix to position itself as a discount
in 2007, with 10,000-sq. ft. Fresh & Easy supermarket and increase its share of full
stores in California, the company now is shopping trips. And Marks & Spencer,
testing an even smaller space called Fresh known as a purveyor of premium private
& Easy Express. label products, added branded items to
its offering to compete with other
supermarket leaders.
9 The BrandZ™ Most Valuable Global Retail Brands 2011 10

7. OVERVIEW
The Top 20 Most Valuable Global Retail Brands 2011
Position
# change Brand Parent Company Brand Brand Brand Brand
from Value Value Contribution Momentum
2010 $US Change
Expansion of Billion YOY
multichannel retailing 1. +1 US Amazon.com, Inc. $37, 628 37% 3 10
Even the food retailers are aggressively 2. -1 US Wal-Mart Stores, Inc. $37,277 -5% 2 5
refining their multichannel presence,
looking for ways to better serve shoppers
3. = UK Tesco plc $21,834 -15% 4 7
and distinguish themselves from the
competition.
4. = France Carrefour SA $13,754 -8% 3 7
Several retailers are experimenting with
variations of online purchasing with the 5. = US Target Corp. $12,471 3% 3 3
order delivered directly to the customer’s
home or to the customer’s store where 6. = US eBay, Inc. $10,731 15% 2 8
it’s available for easy pick-up. Auchan
introduced the store pick-up idea several 7. = US Home Depot, Inc. $9,877 10% 2 3
years ago with its successful Chronodrive
program. Walmart is experimenting with 8. = Germany Aldi Einkauf GmbH $9,251 6% 2 4
a home delivery program called Walmart
To Go and a store delivery option called 9. = France Auchan SA $7,796 -1% 3 7
the Pick Up Today program.
10. +2 Sweden Ikea International $7,293 28% 2 6
Sainsbury’s combines its home delivery
and in-store pick-up options into one 11. -1 US Lowe’s Cos., Inc. $6,522 -7% 2 3
program called Sainsbury’s Direct, which
is intended to drive non-food sales. Home 12. +1 UK Marks Spencer plc $5,252 -8% 3 4
Depot introduced several mobile apps and
explored the possibility of payment on its 13. -2 US Best Buy Co., Inc. $5,104 -12% 3 3
Facebook page as social media moves
toward social commerce.
14. +3 US Costco Wholesale Corp. $4,544 17% 1 4
15. +1 Germany Lidl Schwarz $4,240 3% 1 4
16. -1 US Kohl’s Corp. $4,003 -8% 3 4
17. -3 UK Wal-Mart Stores, Inc. $3,975 -19% 2 4
18. = US Wal-Mart Stores, Inc. $2,935 -10% 2 2
19. +1 UK J Sainsbury Plc $2.685 -2% 3 5
20. -1 US Safeway, Inc. $2.012 -37% 2 3
Sources: Kantar Retail, Millward Brown Optimor. Brand contribution measures the degree to which brand plays a role in generating
earnings. It is displayed as an index from 1 to 5, 5 being the greatest brand contribution. Brand Momentum measures the growth potential
of brand-driven earnings. It is displayed as an index from 1 to 10, 10 being the greatest potential. See Methodology and the end of the
report for full details. See the At-a-Glance charts for footnotes.
11 The BrandZ™ Most Valuable Global Retail Brands 2011 12

8. Commentary In this new technology-enabled world,
how can brand marketers and retailers
Understanding
capture the imagination and retain the
loyalty of their customers?
the New
Seamless retail experiences require
a new approach.
By Tim Greenhalgh
Chief Creative Officer, FITCH Life gets complicated
Customer In the beginning, there were
shops. We’d pop to the
Life was simple until 1991, when Tim
Berners-Lee is credited with inventing the
Journey
World Wide Web. He handed us the keys
shops, pick up our stuff, go to online connectivity. Then, we could shop
home. Things were simple. from within our own homes. ‘Popping to
the shops’ was a mere click away.
Then, with the Internet, we
From simple to splintered to seamless shopped from home. Now,
The world became a little less simple,
but a whole lot more fun.
mobile brings the shops
Now more game changing still, mobile
to us, wherever we are. brings the shops to the shopper, wherever
The options are endless. they are – even while sitting on a bus.
The emergence of the ‘always on’
The customer journey has consumer means the way shoppers think
become splintered. about, validate and act on their purchasing
decisions has become splintered.
What was simple – “I’m just popping to
the shops…” – has become splintered –
“…shopping is anywhere and everywhere,
as are my friends, all 1500 of them!”
So, I can now buy in a shop, on a website,
via an app on a laptop, tablet, smart phone
or through my games console. Alongside
traditional and still powerful catalogues and
direct mail I browse deals and promotions
via QR codes, or view an augmented world
through my phone’s camera, which places
exciting products in my path or simply
points to where I can find a pint in a new
neighborhood.
13 The BrandZ™ Most Valuable Global Retail Brands 2011 14

9. Commentary
Poked and prodded by friends as I peruse This is good news for retailers, because
their personal views on social networking
Shopping in the mind… given moment, often switching from one to
another in an instant, depending on their there’s the potential to get more value out of
sites, I can buy products with new Internet- dreaming, exploring, particular shopping mission. their customers. By redefining the customer
based currencies, like Facebook Credits, locating journey in this way, confident decisions can
which let me buy virtual goods in games The trick is to both understand how best be made about how to engage shoppers
on the Facebook platform. Now I can earn We believe that the process of simply to serve these mind states, as well as the in different mind states, and help them
even more credits when shopping in the finding something you need, today or triggers which daisy chain between them. upgrade from relatively low value “locating”
real world through the multi-retailer reward fantasizing about a purchase over several to higher value “exploring” and “dreaming.”
program Shopkick. I am happy to take months, is governed by three universal Traditional shopping journeys used to be
a recommendation to buy something from 21st century mind states: predominantly location based – from leaving We are gradually seeing a movement
someone I’ve never met and who lives home, to crossing a threshold, to leaving from the departmental silos of marketing,
5,000 miles away. RedLaser lets me price- 1. Locating: In this mind state, consumers a store with a bag in hand. Whereas the merchandising, digital, buying and real
check on the go, and I can get location- are looking for a specific brand, product new seamless journey is multichannel and estate to an integrated approach aligned
based deals from Foursquare by becoming or service. They have a short attention often marked by a period of time between around the customer point of view.
a Mayor, or join a collective buying group to span, are usually replenishing their own triggers – a glance at Facebook, an
get discounts on just about anything from stock, or already know the specific item interactive window display, a QR code in Seamless retail means that stores are no
Groupon. Shops now pop up and pop off, they’re looking for – “I want Nike Airs, a magazine. longer solely places of transaction. Looking
convenience stores are more convenient size 7.” after the “locators” remains important, but
as they become an event or viral installation, The three mind states have major focus can also be given to creating more
and if all this wasn’t enough, I can actually 2. Exploring: Here, the consumer is open- implications for a store’s design, layout and engaging and rewarding experiences for
stream my products for a day as 21C minded but has category-specific communication. And just as importantly for customers. These shoppers will then show
consumption may not be about ownership purchase intent – “I want running shoes.” how we think about the entire customer loyalty – online, in-store and inline.
anymore (Netflix, Spotify) – phew! They have a longer attention span, may journey and that Holy Grail - the purchase.
have a few options in mind, but are open
To some, this splintering of the shopping to suggestions and want to be inspired Popping to the shops in the
journey is exciting and liberating because and informed in equal measure. With its
the options available to a Regular Joe open ability to easily compare and contrast a
21st century… seamless
up variety, choice and value. Whereas, wide range of products, online retail can customer journeys ITCH is a global retail design
F
to others, these splinters can be a sharp quickly grow loyalty in this area. However, consultancy that specializes in
reminder that the retail world has moved a key component of the “exploring” As online shopping grows, it’s the translating brand into consumer
on and as such this variety of options mindset is trial, and being able to touch, replenishment purchases made in “locating” experience. With a presence in
needs to be understood – and embraced – feel and test drive products is crucial – an mode that will continue to move off the 12 countries, clients include Dell,
in today’s new shopping environment. advantage the store has over the virtual. high street and away from the malls. To HSBC, Morrisons, Microsoft, Nokia,
accommodate this, there will be strong and Target and Vodafone.
We need to understand the effect it 3. Dreaming: In this mind state, consumers seamless links between the shops and their
www.fitch.com
has had on today’s customers, as their actively look for new ideas and inspiration. online experience. Uniqlo’s CEO recently
shopping experience has moved from They have undefined needs and wants, announced that the company’s next major
simple to splintered. In doing so we can and are skipping between categories flagship opening would be its website.
further understand how to respond and and brands to find inspiration and the The future of bricks and mortar lies in
create a seamless customer journey. fulfillment of as yet undefined desires – shifting the attention towards people in the
“I want to get fit”. “exploring” and “dreaming” mind states. By
setting stores up to encourage “exploring”
The new seamless customer journey and “dreaming,” the retailer can build loyalty
acknowledges that any individual can all the way through the journey to purchase
exhibit these different mind states at any by truly responding to their customers’
desires and aspirations.
15 The BrandZ™ Most Valuable Global Retail Brands 2011 16

10. The Top 20
1. Amazon In a development that evoked Amazon’s Ultimately, the success of Amazon results
Most valuable
roots in book retailing, the company’s from empowering retailer intuition with the
sales of electronic books surpassed its complicated algorithms that recognized
sales of paper books for the first time, shopper purchasing patterns and
retail brand
driven in part by the success of Amazon’s recommend related products. Leveraging
Kindle and a strategic price reduction that its technological resources and credibility,
made the electronic reading device more Amazon also sells cloud computing
widely accessible. With the introduction capacity on its servers.
of the Kindle, in 2007, Amazon evolved
With an increase of 37 percent, Amazon’s from exclusively a purveyor of branded
merchandise created by others to
brand value surpassed Walmart’s. a product developer as well.
Above: Subscribe Save Below: Amazon reduced Kindle
drove shopper visits by prices last year, which increased
focusing on frequently sales of the devise and drove
At a glance replenished products. electronic book sales.
Brand Value
$37.6 billion
Brand Value Change
37%
Total Corporate Sales
$34.2 billion
Total Corporate Store
s 0
AMAZON Brand Sales
$33.2 billion
In the relatively short period since AMAZON Brand Store
s 0
its founding as an online book Countries of Operatio
n 7
Amazon brand sales incl
merchant, Amazon—with no amazon.de, amazon.c
ude amazon.com, am
o.jp, amazon.fr, amazo
azon.co.uk,
amazon.ca. Sources: n.cn and
stores—has grown to be the most Kantar Retail, Millward
Brown Optimo r
valuable retail brand in the world
and a disruptive force transforming
retailing into a multichannel Amazon also expanded Subscribe Save,
phenomenon. Amazon sales rose a program that offers regular replenishment Insights
32.1 percent to $34.2 billion in 2010
on the strength of its unequaled
with free shipping in categories such as
grocery, office products and supplies and Implications
health and beauty. The brand continued to
product range and constant benefit from Amazon Prime, the program in
•
Amazon continues to expand into new
geographies and new categories. Backed up with
innovations that widen its customer which shoppers pay an annual fee, similar its strong reputation in fulfillment and customer
base and grow sales. to a warehouse club membership, and service, the retailer is only just scratching the
receive free shipping on all items. surface of its eventual scale and reach.
The company launched Amazon Mom late •
One category that has been limited to third-party
in 2010, for example. The program offers 30 Flexing its power on behalf of consumers, vendors and a modest trial in Seattle is fresh
percent off on diaper orders as well as other Amazon influenced its suppliers to redesign grocery. Can Amazon crack this market and
become a genuine online supermarket? Or does
discounts and two-day free shipping. It’s its packaging to be easier for customers it need to acquire this expertise?
part of an ongoing strategy to drive shopper to open and more environmentally friendly.
•
While Amazon is only capturing a small part
loyalty and frequency with subscription Originally aimed at electronics and toys, of certain markets, its influence as a disrupter
programs providing discounts and free Amazon has expanded the initiative to of shopping trips to traditional retailers is
shipping on consumables. other categories. potentially seismic.
17 The BrandZ™ Most Valuable Global Retail Brands 2011 18

11. The Top 20
2. Walmart Walmart quickly recalibrated. It started to
Reversing course
restore 8,500 SKUs in grocery alone, after
the product range was cut by 9 percent
storewide and as high as 26 percent in
some categories. As the chain rebuilds
the assortment, it intends to reclaim its
Walmart returned to its proven low price well-earned reputation for market basket
and broad assortment proposition. price leadership.
But even as Walmart’s supercenter format
rebounds, it may not be the engine of future
growth, at least not in store-saturated
markets like the US. Drawing on experience
At a gla gained Mexico, and from Asda in the UK,
nce Walmart is rolling out smaller stores, called
Brand V
alue
Brand V Walmart Express, for expansion into rural or
alue Ch $37.3 b
Total C ange illion urban locations.
orporate -5%
Total C Sales
orporate $419 b
WALMA
RT Bran
Stores illion With other innovations, Walmart
d Sales 8,535
Although the discounter’s attempt WALMA
RT Bran responded to the challenge of Amazon,
d Store $294.9
Countrie s billion the e-commerce pioneer that superseded
to become more aspirational Walmart
s of Op
brand
eration
4,450
it as the world’s most valuable retail
15
made sense as a strategy to add Walmart sales in
A clude W
Sources sda, Superme alm
brand. Walmart leveraged its multichannel Above: Flip flop sandals are Below: Price and assortment
: Kanta rcado d art, Walmart S
r Retail, e up displayed with fashion flair in
customers and strengthen margins, Millward Walmart and W ercenters,
Brown O
ptimor
almart.c
om capabilities by rolling out a Pick Up Today North Bergen, New Jersey.
dominate the landscape in the
Secaucus, New Jersey, store.
the execution was ill timed and program for in-store fulfillment of online
unevenly executed. It left some shopping. It also experimented with
a fresh grocery home delivery initiative
core customers feeling abandoned.
While international sales rose, sales
called Walmart To Go.
Insights
in the US were flat at $260 billion
and same-store results declined
Meanwhile, Walmart’s international
division spent 2010 preparing to purchase
Implications
1.6 percent. Walmart’s brand value Massmart, the South African retail and • Walmart has yet to regain momentum in the US
dropped 5 percent. wholesale conglomerate. Completed in after a record number of quarters of negative
June 2011, the acquisition eventually could same-store growth. Its store remodeling efforts
were long overdue, but other components of
The removal of merchandise bins from Reduced assortment and display area also establish Walmart in Sub-Saharan Africa. Project Impact – such as the range rationalization
high-traffic aisles, for example, softened limited promotion opportunities for local programme – backfired, leaving Walmart with a lot
Walmart’s low price message at a time specials and for certain categories, such of work to do to regain disenchanted shoppers.
when recession-shocked shoppers sought as soft drinks or toilet tissues, which • All eyes are on small store development and
bargains. In trimming slower-moving SKUs depend on bulk displays for incremental e-commerce for Walmart’s great leap forward in
the US, particularly with respect to whether or not
from its assortment, Walmart unintentionally impulse purchases. Competitors, these initiatives will help Walmart penetrate key
eliminated some important traffic drivers, particularly the dollar stores, eagerly took urban markets.
losing not only item sales, but also entire advantage of Walmart’s miscalculations by
• ealistically, the big growth opportunity for Walmart
R
shopping trips. adding SKUs to attract value shoppers. is through its International division. Already the
world’s third largest retailer in its own right, Walmart
International is well positioned for growth in Latin
America, Asia, Africa and – possibly – Europe.
19 The BrandZ™ Most Valuable Global Retail Brands 2011 20

12. The Top 20
3. Tesco The company strengthened its focus
Cultivating loyal
on growth outside of the UK, with the
appointment of Philip Clarke, a former head
of Tesco International, who succeeded Terry
shoppers
Leahy as Tesco CEO in March 2011. Tesco
is active in 12 countries outside of the UK,
with the greatest proportion of sales driven
by operations in Asia, including, China,
Japan, South Korea, Thailand and Malaysia.
Tesco continued to strengthen its business in Central and Eastern Europe make the next
greatest contribution to sales followed by
the UK, while expanding abroad. Sales grew the US.
6.4 percent to $94 billion in 2010, from 5,380 Tesco is present in China with its
stores. Same-stores results rose 2.6 percent. hypermarket and express formats. The
chain entered the US in 2007, with an
upscale convenience format called Fresh
Easy. It is about to launch a smaller
“Express” variation. In China, Tesco
At a glance
already has changed its expansion model,
n
$21.8 billio developing rent-producing shopping malls
e
Brand Valu -15% and making Tesco its anchor tenant. Four
Change
B rand Value $94 billion such developments already exist. Tesco
The UK drives 70 percent of Total Corporate
Sales
5,380
s is searching for a local partner in India,
Tesco’s business. With twice Total Corp
orate Store
$79.2 billio
n
where opportunity could be great but more
Sales
the selling space of the second- TESCO Bra
nd
s
3,969 long-term, and it has not entered Russia or
Above: Tesco dominates Below: Price remained an
TESCO Brand Store grocery sales in the UK, essential part of the brand
largest UK competitor, Tesco gains peration
13
es), Tesco Brazil, which currently is not on the radar. with several formats. message during 2010.
Co untries of O o (superstor
about one-third of all the country’s Tesco bran
e Tesco, Te
d sales incl
ud
sc
z, Tesco Ex
ro, Tesco
et
tra, Tesco M ct and
es/Express , Tesco Dire
press/Expr ter, Tesco.ie
grocery sales primarily from three Ex
(compact),
Tesco Supe
rcen
ces: Kantar
Retail, Millw
ard Brown
Optimor
Sour
tesco.com.
different formats—hypermarkets,
supermarkets and convenience
stores, but also from smaller
concepts, such as garden centers,
and from e-commerce.
As the market’s most diverse multi-format
To leverage this dominance and reinforce retailer, Tesco also cultivated shopper
loyalty during a period when economic
stress threatened shopper defection, Tesco
loyalty with a broad offer intended to fill
most needs. Along with grocery, Tesco’s
Insights Implications
doubled the points earned for use of its menu of retail services includes insurance, • Tesco’s strategy of gaining shopper lifetime loyalty continues to drive the
Clubcard. Reflecting its willingness to invest banking, travel and real estate. The chain is business, but now needs to be applied across all divisions, from grocery stores
significantly to retain customers, Tesco opening bank branches within hypermarkets to non-food and to banking and insurance services.
also purchased the outstanding stake in and rolling out Tesco Mobile. Still, sales • As UK sales growth slows, international business becomes more important,
Dunnhumby, the customer insight company growth pressure in the UK and currency particularly China.
that manages the card. Tesco had been fluctuations affected Tesco’s brand value, • To lower costs, Tesco continues to centralize its operations, with the latest
majority owner. which declined. focus on Central and Eastern Europe.
21 The BrandZ™ Most Valuable Global Retail Brands 2011 22

13. The Top 20
4. Carrefour Above: Carrefour City serves
Unifying the brand
London, Paris and other urban
locations.
Below: Barcelona location
displays fresh fish.
Carrefour attempted to strengthen its core
business and also sell under-performing parts
of the company to raise cash.
In France and Spain Carrefour also unified
At a glance
its convenience store operations under
Brand Value $13.8 billion the Carrefour City and Carrefour Contact
Brand Value Change -8% banners. Using the Carrefour brand in these
Total Corporate Sales $116.4 billion
5,000-to-8,000 sq. ft. stores, as well as
Total Corporate Stores 14,038
in the hypermarkets and supermarkets,
CARREFOUR Brand Sales $99.7 billion
enables Carrefour to coordinate its private
CARREFOUR Brand Stores 5,244
The combination of investment 40
label, marketing and merchandising
Countries of Operation
and divestment activities reflected Carrefour brand sales include Carrefour, Carrefour Bairro,
strategies. Leveraging the Carrefour brand
the simultaneous objectives of the Carrefour City, Carrefour City Café, Carrefour (Compact), works globally, but is especially relevant in
Carrefour Contact, Carrefour Drive Carrefour.es, Carrefour
mature markets, where hypermarket growth
chain’s primary shareholders, private Express, Carrefour Market, Carrefour Marinopoulos,
Carrefour Montagne, Carrefour Mini, and Carrefour Planet.
has slowed. The company is looking to
equity partners interested both Sources: Kantar Retail, Millward Brown Optimor
the BRICs for growth with the exception of
in short-term results and top-line Russia, which it exited in 2009.
performance. Sales declined 2.8
percent to percent to $116.4 billion Meanwhile, Carrefour management
continued to divest assets to gain cash.
in 2010. The decline resulted from
weakness in France, Carrefour’s In November 2010, the company sold its Insights
home market, and the rest of
business in Thailand to the Casino Group.
Similarly, in March 2011, the company Implications
Europe. Brand value declined announced the spinoff of its Dia discount
•
Carrefour is rolling out its latest hypermarket
8 percent. To fortify its position in Western Europe, store division, which operates in eight concept “Planet” across Europe, hoping to drive
Carrefour launched a new hypermarket country markets and accounts for about more people into its stores and abate the traffic-
To introduce greater management format called Planet with six test stores 10 percent of total Carrefour sales. Merger decline has been one of the main challenges of
efficiency as it pursued its objectives, in Belgium, France and Spain. Aimed at discussions in Brazil ended unsuccessfully. the hypermarket format in recent years.
Carrefour recruited two executives from the reviving hypermarket sales, Carrefour • the same time, Carrefour is not neglecting its
At
competition, Walmart and Tesco. These designed the large stores of about Carrefour operates six formats, including small-store concepts, with supermarkets and
100,000 sq. ft. to be shopper driven, hypermarkets, supermarkets and discount, convenience channels receiving significant
well-laid plans suffered an unexpected
investment as Carrefour implements more
setback, however, when one of the new with merchandise organized thematically, under six banners in 40 countries. coherent strategies.
leaders departed after less than 12 months integrating food and non-food. Carrefour Worldwide, hypermarkets accounted for
• Short-term objectives continue to drive some
leading Carrefour in Europe outside of intends to rollout these stores in Italy and about 60 percent of the chain’s sales in of the corporate decisions (divestment of Dia),
France. Subsequently, the head of France, Greece, ending 2011 with a total of almost 2010, and an even higher percentage and Carrefour probably will divest more of its
another high-profile recruit, also departed. 100 units. outside of Europe. operations in the coming months and years.
23 The BrandZ™ Most Valuable Global Retail Brands 2011 24

14. Commentary This change is well illustrated by the critical
intersection of shopper marketing, digital
Shopper
and e-commerce present in a case study
for G2’s long-standing client PG and its
CoverGirl brand in the US.
Marketing and By Jonathan Dodd
The assumption about the cosmetics
category might be that it’s a fairly simple
equation; that agencies produce beautiful
Digital
Global Strategy Director, G2
thematic communications predominately in
above-the-line media, and those activities
Until just a few years drive consumers to the store and shoppers
ago, shopper marketing make their purchases.
and digital were treated
A critical intersection for brand success as separate disciplines. In reality, that is not the case. In the
cosmetics category, and in CoverGirl as
Today, considering shopper a range, the consumer is faced with an
marketing and digital ocean of choice. Often the consumer
requires a combination of products to
together is essential for achieve an overall end look. Digital begins
brand success. to play a significant role in easing the
shopping process and facilitating a better
experience for the consumer.
Because CoverGirl is sold in mass channels
in the US, it is not available at a counter
where the shopper can find assistance.
The original role of digital was to act as a
surrogate beauty consultant. Consumers
were driven to a website where they could
find information about the major products,
inspiration for the look they sought and
direction about which product was right
for them to purchase.
A number of utilities were developed, such
as a virtual make-up mirror. The consumer
could upload a photo of her face and find
the shades and tones that suited her best.
Although a commerce connection was
created, initially the relationship was based
on bricks and mortar. There was a store
locator to find out where to purchase. As
the site evolved, we enabled the shopper
to click through and purchase online.
25 The BrandZ™ Most Valuable Global Retail Brands 2011 26

15. Commentary
As social media increased in popularity, A full range of touch points are employed, In the US, there are now 1.4 million active
Facebook and YouTube elements were from traditional mass media to in-store CoverGirl subscribers with 75 percent of
added to the integrated program enabling retail—with digital media playing a those customers using the color-matching
a new path to purchase. With the recent significant role across the entire purchase utility, demonstrating that cosmetics is a
development of a new discipline—social decision journey. Multiple digital strategies, high involvement category. There are now
e-commerce—functionality was created that activations, channels and platforms are over 1 million Facebook fans. And there
enables a Facebook user to stay within the employed. In the search phase the Cover are thousands of live chat conversations,
Facebook platform and access the utilities. Girl shopper is connected to the brand and product reviews and an increasing number
Originally provided to the shopper on to the right products. Relevant and targeted of product sales going through online.
Covergirl.com, a customer now can access information is served to the consumer.
these same utilities on mobile and interact CRMs help personalize recommendations. The integration of shopper marketing and
with the category and the brand within E-commerce enables easy access to digital has proved extremely effective for the
those media. content to inspire and assist. With social CoverGirl brand.
engagement opportunities are created for
The purchase consumers to swap their stories.
decision journey
The purchase phase
The role of digital was determined using the
same approach G2 takes to the integration In the purchase phase, it is now easier for 2 Worldwide is a global brand
G
of all communications. We look at the shoppers to go to traditional bricks and activation agency network
purchase decision journey first. Within mortar from e-commerce with the basket of that helps marketers maximize
this particular case study there are many goods they’ve identified as right for them. Brand Commitment SM. G2 offers
steps, from learning how to apply make- direct marketing, data analytics,
up correctly to sharing that experience. Mobile is now the connective tissue along shopper marketing, branding and
Not long ago each step would have been the purchase decision journey. Mobile design, promotional marketing
discrete, taking place at various locations, integrates digital in-store and out of the communications planning and
across differing media or channels. store, online and offline. For example, if digital/interactive marketing.
Sometimes that remains the case. But it’s a shopper is in the store and sees a new
jdodd@g2.com
also true that at other times all those steps and unfamiliar product, the virtual make-
www.g2.com/emea
can take place at the same time in a single up mirror utility gives the shopper the
digital channel—just on mobile, for example, opportunity to find the right color and shade
or on a laptop or tablet or just within a while actually in the aisles.
particular environment such as Facebook.
A YouTube channel has been created where
The communications architecture that the shopper can find tips on ensuring the
drives this result is about easing the make-up is being applied correctly. There
shopping experience. The goal is to inspire are user reviews to connect the shopper
shoppers and help them learn about the with friends. Recently, those reviews were
latest trends and the right look for them. published in-store, so the peer experience
Shoppers are then helped to navigate the is immediately available and more
decision-making process and provided information is accessible on mobile.
with helpful tips on using the products for
maximum advantage. Then the consumer
is guided to focus on reflection, and asked
to consider, rate and share her experiences
with Cover Girl.
27 The BrandZ™ Most Valuable Global Retail Brands 2011 28