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Interbrand Design Forum - Most Valuable U.S. Retail Brands 2009

Interbrand Design Forum - Most Valuable U.S. Retail Brands 2009

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Published by: ibdf on Jan 14, 2009
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The MostValuable U.S.Retail Brands2009
The Age o theRetail BrandProles o The MostValuable U.S. RetailBrands 2009Lessons romthe BrandsWhat the Leadersdo RightNarrowcasting orFatter MarginsScale Alone Does NotMake a Grocery BrandThe Upside o aDown EconomyThe Curious Caseo Walmart
 
Contents
p01 The Age o the ‘Retail Brand’
No longer just the ocus o the marketing team, brand is beingadopted as an idea that drives business strategy.
p02 Interbrand Design Forum’s Most ValuableU.S. Retail Brands 2009p04 Proles o the Most Valuable U.S. Retail Brands 2009
A snapshot o the top 50 brands and insight into what’sdriving growth.
p13 Canada’s Most Valuable Retail Brands
With a look at how the top 5 brands are growing.
p14 Mexico’s Most Valuable Retail Brands
Insights into the success o the top 5 brands.
p15 Lessons rom the Most Valuable Brands
O the 1.6 million retail companies that populate the U.S.shopping landscape, 50 remarkable brands rise to the top. 
p16 What the Leaders do Right
The moment consumers decide to make a purchase, they areconronted by myriad choices and interchangeable products.What do the Most Valuable U.S. Retail Brands do to consistentlyall into their consideration set?
p17 Where are the Department Stores?
Although their brands have high name recognition, departmentstores as a group are perceived as lacking innovation, uniqueexperiences and exclusive merchandise.
p18 The Misnomer o Specialty Apparel
Fashion retail presents great opportunity and great risk—the abil-ity to generate high margins with the uncertainty o the durationo trends. However, the lack o dierentiation among the topbrands suggests that the eld is suering rom risk avoidance.
p19 Narrowcasting or Fatter Margins
The brands that score highest on unique shopping experience,exclusive private labels and dierentiation all into the hardlinespecialty sector. The brand idea that serves a narrower consumerbase with more specic needs will deliver more value.
p20 Scale Alone Does Not Make a Grocery Brand
Traditional grocery earned the weakest customer loyalty scores.Over-reliance on discounts, rewards and promotions underminesany move towards a meaningul proposition and results in lowbrand strength. 
p21 Every Brand Tells a Story
Retailers have an advantage in being able to use a physical spaceto tell the brand story to orge closer customer connections. To doit well requires an understanding o your audience.
p22 Location-ree Shopping
Just as our denition o “phone” has come to mean a mobilemultimedia device, so has the notion o “store” evolved to encom-pass non-traditional commerce. The best orchestrate the brandexperience rom start to nish.
p23 The Upside o a Down Economy
Created to address complex problems quickly, intelligentbranding can help retailers seize opportunities in a downturn.
p24 The Curious Case o Walmart
It began as an old-school discount store with goods piled highand sold cheap. It grew to a wonder o operational excellence.Now it acts like a brand.
 
Thoughtully,
 Lee Carpenter
 Chairman & CEO Interbrand Design Forumand Interbrand North America
Most Valuable U.S. Retail Brands 2009 01
The Age o the‘Retail Brand’
No longer just the ocus o the marketingteam, brand is being adopted as an ideathat drives business strategy.
Ater thirty years o creating retail brandexperiences, I can tell you this: companiesstill don’t have a clear idea o what brand isand what it can do. And there’s an urgentneed to clear up the misunderstanding.Not just because we’re in a major recession.But because within the downturn there areopportunities that brand can capture.So let’s cut to the chase. What is aretail brand?A brand is not just a logo, a name or asnappy slogan. It’s the particular set o tangible and intangible assets (or liabilities)that customers attribute to a retailer. Abrand is a shopper’s perception, the sumo all his or her experiences doing businesswith that store.Shopping denes modern lie. Because itaccounts or 70% o the U.S. gross domes-tic product, the growth or contraction o retail as a total market impacts us all. Whileshopper attitudes are changing rapidly dueto economic conditions, the subsequentdiscounting and promotions are only parto the story.Consumers thrive on change. They judgestores by how well they keep up with theast pace o lie. Retailers have stepped uptheir speed-to-market imperatives to eedshopper appetite or newness. Yet mostretailers still cling to a 20th century view o themselves as an operations-driven enter-prise, not as brands. Numerous distributionpoints, hundreds o SKUs, and thousandso daily transactions between custom-ers and vendors have until recently maderetail seem too complex an enterprise to beencompassed by one idea.A study o the top retail brands showsotherwise. Case in point: Walmart topsthe list, not simply because o its oer-ing and scale, but because o its place inshoppers’ hearts and minds. It is, in act,the most valuable retail brand—proo thatbrand is not the sole province o amousmakers such as Coca-Cola or Rolex. All thesame principles are at work in retail. A clearproposition creates demand because o thevalue it bestows on the product or service.Brand thinking provides a way to orches-trate everything about the business thatattracts and touches the consumer—romthe real estate, to human resources, thesupply chain, store design, e-commerce,private labels, messaging and packaging.In act, retail is branding at its best andmost complex.Understanding brand dynamics through itsconcerted analytic tools gives a company—especially retail—the ability to measure theeconomic power o its brand and iden-tiy which business elements create thatpower. The role brand plays in any businessdecision versus the other components o that choice can be gauged and connectedto strategy. Legacy biases can be overcomeso that managers can make smart deci-sions that take brand, space and nanceinto account simultaneously. Light can beshed on previously unrecognized marketopportunities and new investments justi-ed. Brand helps a retailer create demand,not cater to demand.Interbrand has been studying the world’smost valuable brands since 1984. Todaybrand decisions can be measured and thusheld accountable or the investments thatmake a brand stronger. A strong brandensures relationships that create utureearnings by growing customer preerenceand loyalty.Which brings us to the list—our rst ‘AnnualReport Card’ o the most valuable retailbrands in the United States, plus the top 5in Canada and Mexico. It’s an assessmento the companies that are most successulat managing their brand, as well as a lookat those that didn’t make the cut. We’re de-lighted to share the lessons rom the lead-ers, and give some insight into how theytackle the challenges o today’s market.We also hope it provides a push to thosewho still cling to the outmoded operations-driven way o viewing their business.The Most Valuable U.S. Retail Brands reportsends a clear message: The rules o successhave changed. Brand has arrived at retail.

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