Longo's - A Fully Integrated Retail Experience

a fresh tradition™

Creating a Fully Integrated Retail ExperienceCase Study: Brand Re-image, Flagship Store, Private Label Redesign and Marketing SupportJanuary 2011

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“As our integrated retail agency, Watt brings together all of our brand touchpoints; from research, to store design, to private label, to marketing and advertising.

This cohesive approach enables us to have a stronger brand voice and drives home our unique position.”

Anthony LongoPresident and CEOLongo Brothers Supermarkets

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Longo Brothers Supermarkets Inc. (Longo’s) is a family-

operated grocery chain with 23 stores in the Metropolitan

Toronto area. Longo’s has been a valued client of Watt

International for more than twelve years.

Recently, Longo’s undertook an aggressive retail store

expansion and remodeling program, and we are proud

to be the Agency of Record for all of their research,

consulting, marketing and design needs.

Over forty percent of Toronto residents have shopped

at a Longo’s recently, and over ninety percent of those

shoppers report that Longo’s always meets or exceeds

their expectations – a number unmatched by any of their

competitors. Longo’s is also rated “best” by Toronto area

shoppers in all critical “fresh” grocery categories and

shopping experience-related attributes.

Grocery shoppers relate to and trust the Longo’s brand

and it has been our privilege to be their partner in the

safeguarding and building of this reputable brand.

Longo’s: Branding the Experience – Experiencing the Brand

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In 2005, Longo’s undertook a branding exercise with

their previous ad agency that resulted in a repositioning

of the brand, encapsulated in the new positioning line:

“Adventures in Food.” This effort was launched in 2006

as part of Longo’s 50th Anniversary celebration.

Watt International led the retail design of Longo’s first

“Adventures in Food” concept store in 2007. The store has

since won numerous design awards, and is currently used as

a model for new store introductions and remodels in

suburban areas.

As part of a research study we conducted in early 2009, we

discovered that, despite the prominance of the tagline in and

outside the store, only a small number of Longo’s shoppers

(8%) correctly recalled the “Adventures in Food” tagline.

More importantly, when we explored the meaning of this

tagline with shoppers, almost none of them associated

“Adventures in Food” with “Fresh” – a key store selection

influencer and one of Longo’s most critical competitive

points of differentiation.

In 2010, Longo’s assigned Watt as their comprehensive

agency of record. As the first assignment, Longo’s

challenged Watt with the task of determining how to

properly reposition the Longo’s brand to appeal to its

current shopper base, to attract new customers (especially

in the new markets where Longo’s was expanding), to more

accurately reflect the Longo Brothers “story,” and to inspire

employees to deliver a truly branded experience that would

be valued by its customers.

Challenge


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The primary objective of our re-branding assignment was

to determine and articulate a Longo’s brand position that

reflects their corporate vision, values, and strength in the

marketplace.

Once the positioning was established, our objective was

to translate it into:

A relevant, inspiring, and memorable tagline;•

An evolved corporate identity (logo development) and •

interior/exterior store communications;

A shopper experience and store design that reflected the•

new Longo’s brand positioning; and,

A promotional/merchandising and integrated marketing•

plan that would maximize profitable growth by

attracting new customers and retaining existing ones.

All of this had to be achieved in a timely fashion as Longo’s

was aggressively launching new stores. We also had to be

extremely cost conscious with a sharp eye towards

bottom-line impact.

Objectives

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Longo’s Brand Re-Positioning

The addition of the leaves within the brand identity reinforces the core proposition and provides a graphic element that can be leveraged in other communications vehicles.

The new tagline captures the two core strengths of the brand; freshness and heritage.

Longo’s Brand Re-Positioning

The addition of the leaves within the brand identity reinforces the core proposition and provides a graphic element that can be leveraged in other communications vehicles.

The new tagline captures the two core strengths of the brand; freshness and heritage.

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Longo’s flagship store is located in the lower level of a new, upscale development adjacent to the Air Canada Centre, Toronto’s major sports arena

New Flagship Store

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a fresh tradition™a fresh tradition™

Active digital readerpresents daily specialsand features to customersat the main entry point

New Flagship Store

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Elevator graphics reinforcecore brand impressions

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Seagrass accentuates the authentic nature of the space, while maintaining focus on product


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Innovative programs thatconnect communicationsand service

A Living Wall adds character and promotes a positive corporate image

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Chalkboards speak to authenticity and promote product information and value messages

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Building columns were transformed into aesthetic features with evocative language

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Authentic merchandising supports the brand essence

Whimsical use of the logo adds to character of the space

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Strong visual sub-brand for the beer and wine bar attracts attention

Urban residentialfinishes promote a comfortable atmosphere

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Core proposition in prepared foods is accentuated through colorful signage

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Print Advertising

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Bus Shelter

a fresh tradition TM

GARDINER EXPY.

UNION STATION

AIR CANADA

CENTER

MAPLE LEAF

SQUARE

BAY ST.YORK ST.

FRONT ST.

LAKE SHORE BLVD

BREMNER BLVD.

YONGE ST.

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Billboard

Site Conditions

fresh is herenext left, at Bremner Blvd.

a fresh tradition TM

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Value tier private brand redesign

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Premium tier private brand redesign

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Images of other store locations: Small format urban

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Our methodology is a disciplined, tested approach to brand and marketing planning. It is flexible by design and

highly collaborative to ensure we leverage our client’s corporate knowledge. We also build in various points of validation

throughout each stage of the process.

Methodology


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The objective of this phase is to develop a detailed understanding

of the current state of our client’s business, store and competitive

environment, and identify opportunities, challenges and

key strategic objectives.

For the Longo’s project, the activities during this phase included:

I. Stakeholder Interviews:

We conducted stakeholder interviews with the project team

members, key executives, and other Longo’s employees, to gain

a deeper knowledge and insight to support the development

of strategic opportunities for the Longo’s brand.

II. Existing Material/ Research Review:

We reviewed relevant existing materials provided by Longo’s. This

included data from qualitative research groups conducted in 2003

and 2005 that led to the development of the “Adventures in Food”

positioning, as well as more recent Usage & Attitude and Trade

Market Analysis studies.

III. Financial Data Analysis:

Watt utilized available transactional, financial, and consumer demo-

graphic data to build shopping and behavioral profiles for each key

department. We analyzed variants in traffic flow patterns; variants in

retail volume mix purchased; product purchase profiles and product

clustering; and, consumer profiling and segmentation. This analysis

enabled us to derive an overall performance metric (a composite

measure comprising consumer research, audits, and data analysis).

IV. Trend Analysis and Best Practices:

Our market intelligence group generated trending analysis and best

practices reports, using relevant industry data available through our

proprietary research database.

Methodology

discover

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In this phase we developed and executed primary research to assist

in determining current Longo’s brand perceptions among Longo’s

customers and non-customers as well as perceptions of the Longo’s

brand in a competitive context.

This research project included:

I. Store Intercept Research:

This is a two-step quantitative study executed through shopper inter-

cepts at several Longo’s retail locations. Wave 1 established baseline

measures against key metrics that were identified in collaboration

with the Client Project Team and through insights obtained during

the Discovery Phase. Wave 2 will track performance after the new

brand repositioning initiatives have been implemented.

More specifically, this research was designed to:

Measure awareness and comprehension of the current Longo’s •

brand proposition and sources of that awareness;

Assess relevance and differentiation of the Longo’s retail offering•

and experience, versus competitive alternatives; and,

Establish key metrics relative to in-store communications and •

branding that supports the Longo’s brand proposition.

II. Competitive Online Research:

This quantitative study was executed using existing online panels in

Longo’s trading areas and was designed to gain insights into:

How shoppers see their main grocery store as •

being different from others;

How shoppers perceive other grocery stores as •

being different;

How shoppers rank Longo’s competitive set on •

different “Fresh” dimensions; and,

Value perceptions to benchmark in a competitive context.•

III. Usage & Attitude Survey:

In 2009, Watt designed, executed, and analyzed the most recent

telephone–based survey for Longo’s. This allowed us to establish a

benchmark to measure future progress on delivering the new

Longo’s brand positioning in a competitive context.

Methodology

define

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IV. Brand Platform Development:

A critical deliverable of this project was a credible, differentiated,

and relevant brand positioning platform for Longo’s that will

support the Longo’s vision, provide a framework clarifying the

value proposition to customers and employees, and serve as the

filter for all decision-making going forward.

We developed key elements for the brand positioning platform

using our proprietary BrandPyramid™ methodology, accompanied

by detailed explanations, which provided context to elements

contained in the brand platform.

The final Longo’s brand platform was determined by collaboratively

applying a strategic filter to arrive at the most compelling solution.

Methodology

define (cont.)

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V. Experience Mapping:

Watt developed an analytical framework with the Longo’s customer

at the center to ensure that the right product is supported by the

right message delivered at the right time, at the right place,

in the right way.

We defined Longo’s strategic points of customer interaction,

audited the store, and determined the precise retail strategy to

be implemented. This approach provides a measurable benefit

to the bottom line.

Methodology

define (cont.)

Ask us for an electronic copy of the Experience Map: it’s one of our most innovative and effective tools!

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Key design deliverables for this project are the brand identity

elements, corporate brand activation, private brand, integrated

marketing activities plan, and retail design to reflect the new

branded experience.

I. Corporate Brand Activation:

Brand activation is a process for delivering innovative ways to bring

the brand to life, internally within the organization. This process is

designed to gain insight from the people who lead the Longo’s

organization across their respective areas to develop focused,

actionable initiatives that keep the brand “alive” and “on message.”

This is realized through a series of Brand Activation

Workshops with Longo’s senior leadership team. The Workshops

identify where Longo’s is currently delivering internally on the Brand

Platform, areas for improvement, and opportunities to better deliver

on the new Brand Platform in the future. Following this, we facilitated

Brainstorm Sessions with each departmental team. The scope is

similar to the senior leadership team session, but on more of

a departmental level.

II. Integrated Marketing Activity Planning:

For Longo’s, we are building the marketing activity plan from the

“store out.” That is, a compelling shopper proposition that is stra-

tegically aligned with the brand pillars of the new Brand Platform.

This proposition starts with an in-store experience and uses multiple

media to deliver the desired attitudinal and behavioral stimuli.

There are four (4) primary integrated programs. These primary

programming windows will be aligned with, and launched through,

Longo’s “Experience” magazine and supported by:

A. In-store programming (promotion, sampling, display);

B. Traditional media (radio, print, direct);

C. Existing Longo’s digital assets (Twitter, blogs and

website); and,

D. Longo’s highly successful “Thank You” loyalty program.

Methodology

design

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design (cont.)

III. Retail Design:

Watt designed Longo’s new 48,000 square ft. store at Maple Leaf

Square in downtown Toronto. Not only is this a very exciting and

high profile location, but it is the complete manifestation of Longo’s

new brand platform and corporate identity.

Aside from the unique condominium residences located in the two

towers perched on top of the 10-storey podium, Maple Leaf Square

will also boast a major destination retail centre, a boutique hotel, a

daycare centre, and over 200,000 square ft. of office space.

It’s at this exciting location where Watt has proudly designed Longo’s

flagship store. We’re also proud that this is a LEED certified,

environmentally friendly project.

Our design team has taken the new Longo’s brand platform and

created a shopper experience that is inspiring, engaging, and differ-

entiated from Longo’s competition.

This is a landmark destination retail space that resonates with urban

shoppers and condo-dwellers, and conveys Longo’s commitment to

affordable, accessible food, and fresher, better quality products. It is

both urban and energetic, and fits into the downtown landscape.

IV. Private Label:

We worked with Longo’s to reposition and redesign their private

label program, including the development of an architecture that

outlined the unique profile of each brand, and differentiated their

value and signature tiers.

We then created an in-store communications program – including

shelf talkers, end-aisle caps and signage – to educate customers and

convey the quality and personality of the private brands. To ensure

the consistency in the application of Longo’s new brands, we devel-

oped Brand Standards Manuals to outline graphic and packaging

application guidelines.

Longo’s new private label program delivers a better overall look

and feel of the product, effectively communicates tier quality, and

improves brand recognition, all of which will ultimately lead to

greater brand loyalty.

Methodologya fresh tradition™

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We are committed to delivering results that move our Clients’

businesses and support their brands long term through specific

success measures we create together with them.

Activities typically undertaken during this Phase include:

implementation support, measurement, concept revision, standard

development, and brand guardianship.

Watt has created a Brand Style Guide for Longo’s new brand identity

with guidelines to drive a common voice and design context to en-

sure consistency across all touch points. Once the brand platform has

been fully executed and in the marketplace for an appropriate period

of time, we will utilize the benchmarks established in Phase 1 and 2

(financial data analytics and the various research efforts) to assess

ongoing brand performance and identify areas for improvement.

Methodologya fresh tradition™

deliver

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Who is Watt International…and why you should care

Does your brand break through the noise? Getting into the hearts and minds of

consumers, and eventually their wallets, is challenging at the best of times. And if all the

pieces of your brand – your research, insights, strategy and creative – aren’t cut from the

same cloth, you’re fighting an even tougher uphill battle.

The key is quite simple – get everyone to sing from the same song sheet. But if you’re

dealing with multiple consultants and agencies something eventually gets lost in translation.

We are a truly integrated retail agency, with over forty years experience working in

over forty countries around the world. Working collaboratively with our clients and other

supporting agencies where existing relationships exist, we help uncover the most meaning-

ful insights, set the right strategies, and deliver results-oriented creative solutions across

every brand touchpoint. Through this integrated approach, our clients get single-source

management, efficiencies in account management, and a brand experience that’s

connected from the first insight to the last creative expression.

So if you’re finding that the pieces of your brand puzzle just don’t seem to fit, we’d

love to talk. Our single-source, best-in-class, integrated retail model works, and

we’d love to show you how.

we are retail.Want to know more? [email protected]

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“[Watt’s] creativity and

international experience make our

locations a success.”

“Watt has consistently delivered

high quality designs and has been a

pleasure to work with.”

“You guys are the best…. You

bring us new ideas, and challenge

us. Your work is really great.”

“[Watt’s] experience and

understanding of the retail

environment... puts them at the

forefront of shopper marketing.”

“Their breadth of experience in retail,

commitment to a collaborative process

and creative inspiration are the foun-

dations of our successful relationship.”

“I haven’t come across another firm that

delivers world-class research and strategy

AND creative execution better than

Watt.”

“From the very first phone call to

the final product, our experience

with Watt was fantastic.”

“I would just like to thank [Watt]

for producing such an outstanding

store....”

“We could not be recognized for our

efforts without Watt International’s

creativity and dedication.”

“Watt enabled us to meet the

needs of our customers and

maintain a leadership role in the

footwear industry.”

“This achievement is a great

example of Watt’s expertise in

designing retail solutions that

appeal to customers….”

“The dedication, response times

and quality of the work have

been fantastic.”

“They really listen and were very

willing to work with us to help

achieve our vision.”

“Watt is characterized by its

collaborative culture and great

passion for their work.”

“We are thrilled with the new

format that Watt developed for our

Vintages Store…. Sales performance

is exceeding all expectations.”

“I believe that you have helped us

create one of the best retail brand

programs in the industry, and the

results are proving this.”

“Watt’s superb combination of

attentive account service, smart

strategic perspective and innova-

tive creative has earned them our

loyalty and respect.”

“Your innovative thinking has

directly impacted our business

and our brand.”

“The customer traffic has increased

and we have experienced a 70%

increase in sales.”

“We completely revamped the

store.… 99% of these changes are

directly based on your info and

insights! The response and sales

have been phenomenal!”

“Sales performance and customer

feedback are very positive and store

operators say [stores] are easier and more

profitable to operate than

previous models.”

“[Watt] continues to deliver world-

class solutions that have given us an

edge in the marketplace.”

“The final product is an incredible

shopping experience....”

“We are very pleased with Watt’s

work on creating our new concept

fresh format…. This is a unique AND

practical design with innovative

ways to use very limited space.”


Testimonials


Please contact:

Patrick Rodmell, President + CEO

Watt International

416.364.9384 x 324

[email protected]

Questions?