RDGInsights & Retail Doctor Group Corporate Profile

Our Business is Your Retail Fitness™

Transforming consumer led strategy into action

RDG Australian Retail Consumer Study 2012RDG Australian Retail Consumer Study 2012 RDG Insights & Retail Doctor GroupPage. 2

Retail Doctor Group is one of Australia's leading retail consulting companies with expertise in insights, strategy and implementation.

Founded in 2005, we have since worked with over 400 clients to plan and build fit business structures that achieve operational excellence and sustainable profitability.

RDG Insights is RDG’s consumer insights division, specialising in neuromarketing insights, consumer profiling and strategic brand management

We specialise in providing retailers and brands with the missing link between understanding the real drivers of consumer behaviour, brand strategy and operational implications at the point of sale.

Who we are – Retail Doctor Group & RDG Insights

We are members of a range of industry leading institutes, where we share our skills and knowledge


“Built by retailers, for retailers”

Our team of retail and brand experts are passionate about building the performance

of your business.

Biographies for each of our team members are available on our website www.retaildoctor.com.au

Transforming strategy into action

From start ups to national & global omni-channel retailers, we work across every retail sector and with manufacturers, retailers, retail services, shopping centres and non-profit organisations.

Our mission was and is to substantially increase the ‘business fitness’ of every business we touch and to be the best at what we do as judged by our clients.

“Thank you for your ongoing participation and support of our Innovation programs. The value you continue to add from your global connections has assisted us well in evaluating and discovering world-wide

innovation.” Bernie Brookes, CEO

Myer Department stores

http://www.retaildoctor.com.au/


What we do: Neuromarketing meets brand & retail

› Strategic brand positioning› Retail Strategy advisory › Implementation Planning› Consumer experience

development

› Customer experience design across all branded touch points

› Multi channel Implementation› Training & mentoring › Operating programs & manuals › Merchandise planning › Retail KPI consulting › Brand monitoring

Insights Strategy Implementation

› Limbic Insights® › Biocode® Emotions assessment› Neuropsychological consumer

profiling › Consumer motive research› Market sizing› Global research & benchmarking› Strategic cue management


Bringing global insights to Australian retailers

At Ebeltoft Group, we have more than 20 years of experience as retailers and consultants in all retail channels, segments and regions.

We use this expertise to provide innovative and pragmatic solutions, ranging from strategy, concept development and international expansion, to hands-on implementation.

Today, members of the Ebeltoft network advise 80 of the 100 largest retail companies in the world.


Our Proprietary Tools


The tools: Limbic® Types Scan

8%

There are 7 Limbic® Types, each representing a typical characteristic of the three emotion systems

Harmoniser, Open-Minded, Hedonist, Adventurer, Performer, Disciplined, Traditionalist

There are 7 Limbic® Types, each representing a typical characteristic of the three emotion systems

Harmoniser, Open-Minded, Hedonist, Adventurer, Performer, Disciplined, Traditionalist

Human personality is primarily based on three major emotion systems. Balance, Stimulant and Dominance.

All forces exist in everyone but with a varying degree of prominence

Human personality is primarily based on three major emotion systems. Balance, Stimulant and Dominance.

All forces exist in everyone but with a varying degree of prominence

• The Limbic® Types Scan provides a standardized and valid instrument to identify Neuro-psychological customer segments.

• Limbic® Types Scan is a reliable self-evaluative questionnaire that includes:• Measurement of correlated value-cluster.• Rating of traits and attributes which indicate a specific Limbic® Type.


Example: Emotional Load Book Retailing CategoryExample: Emotional Load Book Retailing Category

• Every visible and tangible unit – a brand, a service, a design, communication etc. – contains an emotional load.• Limbic ® Load is a multi-level scientific and metrological valid model to quantitatively evaluate the individual emotional load

of brands, packaging, communication-activities etc. on an explicit and implicit level• Limbic ® Load identifies the respective emotional stimuli, their relationship to each other and the meaning for the purchase

decision• The stronger the Limbic ® Load the stronger the value is associated with the brand• The lower the Limbic ® Load the weaker the value is associated with the brand

• Every visible and tangible unit – a brand, a service, a design, communication etc. – contains an emotional load.• Limbic ® Load is a multi-level scientific and metrological valid model to quantitatively evaluate the individual emotional load

of brands, packaging, communication-activities etc. on an explicit and implicit level• Limbic ® Load identifies the respective emotional stimuli, their relationship to each other and the meaning for the purchase

decision• The stronger the Limbic ® Load the stronger the value is associated with the brand• The lower the Limbic ® Load the weaker the value is associated with the brand

Insights about correlated, relevant values

Target group relevance,e.g. These value structures correlate with the need structure of the disciplines

Field of tension

Two stage measurement and validation process

The tools: Limbic® Load


The tools: Biocode®

• Biocode® is a neuroscientific tool created by our partner Dr. Rafal Ohme. It measures consumers’ impulsive, intuitive, i.e. implicit, emotional reactions towards brands and true motives based on reaction times.

• Reaction times reveal which brand or value proposition traits consumers are fully convinced of (true yes) and which they are less certain of (shaky, insincere yes).

• These tools create an emotional profile of a branded proposition and uncover deeply held, differentiatingemotional attitudes. They deliver clear recommendations as to which aspects of a brand image are ready to be communicated (credible and desirable), which are relevant and which should be reviewed.

• Biocode® is based on academic research indicating that response latencies reveal commitment to an answer or association (more at: implicit.harvard.edu/implicit )


We assess your retail business across all areas including:• Distribution planning – format, market• Financial analysis• Working capital planning• Human resource structures• Capability and culture• Omnichannel implementation• Merchandise category management and planning

We assess your retail business across all areas including:• Distribution planning – format, market• Financial analysis• Working capital planning• Human resource structures• Capability and culture• Omnichannel implementation• Merchandise category management and planning

The tools: Business Insights

Understanding, planning and

implementing retail business fitness

plans requires an intimate knowledge of

the moving parts in a retail business.

Understanding, planning and

implementing retail business fitness

plans requires an intimate knowledge of

the moving parts in a retail business.

“I regularly recommend Brian and his business to contacts and rate Brian as one of the most professional, engaging and insightful consultants in Australia. He is truly an expert in his field and pushes himself to be at the forefront of future trends and technology applications to help clients stay two steps ahead on strategy and one step ahead on execution.”

Douglas Smith, Trina Solar


• We utilise our global and domestic industry expert alliances, networks and industry information coupled with many years leading and managing national retail, franchise and shopping centre channels.

• We marry the practical to the theoretical to provide you with leading industry insights.

• We utilise our global and domestic industry expert alliances, networks and industry information coupled with many years leading and managing national retail, franchise and shopping centre channels.

• We marry the practical to the theoretical to provide you with leading industry insights.

The tools: Global & Local Market Insights

Utilising our global network of retail

experts along with the latest industry

reports, we provide insights into the

current and forecast state of your

business category.

Utilising our global network of retail

experts along with the latest industry

reports, we provide insights into the

current and forecast state of your

business category.

“On behalf of the Board I would like to thank you for your advice, experience and thought provoking insights. The path forward to us has been made clearer and now requires disciplined action from all of us. Our work will be more fine tuned and I believe significantly more effective now thanks to your work”.

Juston Jirwander, Chairman of the Go Vita Board


The tools: Strategy Workshop

• presentation of consumer & market insights and discussion of findings and implications,• review of the current brand proposition and differentiation, • competitive marketplace considerations including composition, trends and opportunity

analysis,• review of category trends,• SWOT – understanding both context and learning’s to date, • cross channel preparedness and capability in key ‘fitness’ dimensions,• preparing the organization for growth and change• retail operations alignment to insights and strategy,• effective people, culture, capability and alignment to strategy,• operational benchmarks and performance measurement.

Using the same business fitness™ tools that have helped over 400 retailers to

date, we facilitate and guide the strategic planning process including:


The tools: Implementation Planning

8%

Bringing Strategy to life.

Our point of difference is that we don’t

just leave you with the ‘what to do’,

rather, we continue to work with you to

implement solutions that make a real

difference to your business.

Bringing Strategy to life.

Our point of difference is that we don’t

just leave you with the ‘what to do’,

rather, we continue to work with you to

implement solutions that make a real

difference to your business.

• Once we’ve advised you on your ideal strategic positioning, we develop your implementation roadmap - “the fitness plan”. This plan includes the solutions and action points required to build the business fitness of the retail channel as well as priorities and an implementation timeline.

• This implementation roadmap aligns your insights driven strategy to actionable solutions.

• If required, our implementation division can provide ‘hands-on’ services such as training, mystery shopping, visual merchandising etc.


Client Case Studies


Client Endorsement:“It has been a very enjoyable and rewarding experience working with Brian and the team from Retail Doctor Group. We are seeing enormous success across our retail channel, with sales at double digit growth. They intimately understands your business before making any recommendations. I strongly recommend utilising Retail Doctor Group and RDG Insights if you want to be Fit for Business in your retail model.”Andrew O’Keefe, CEO of Go Vita

“On behalf of the Board I would like to thank you for your advice, experience and thought provoking insights. The path forward to us has been made clearer and now requires disciplined action from all of us. Our work will be more fine tuned and I believe significantly more effective now thanks to your work”.Juston Jirwander, Chairman of the Go Vita Board

View a video endorsement from Go Vita here

Go Vita – A national member based retailer

Deliverables:

Following an insights, strategy, implementation program with Retail Doctor Group and RDG Insights, the following was delivered.

Insights – Limbic® types database profiling and customer research were applied to understand who currently moves towards the brand and channel, what drives their purchase decisions and how to best cater to their informational and emotional needs, both pre-purchase as well as in-store.

Strategy – developed a clear point of difference positioning and implementation strategy predicated upon our insights influencing all channels from website, advertising, branding, to in-store category management and staff expertise.

Implementation – Through a customer connection program (including training and mystery shopping) we worked with Go Vita to deliver the strategy at store level.

Key data on Go Vita

Format: Health retailer and manufacturer

Store Locations: Australia wide

Number of Stores: 150+ stores

Merchandise Mix: Health supplementsBrief: Go Vita needed to understand how to stay relevant in an increasingly competitive market and how to engage with the right consumers, in the right channels at the right point in time through a national member differentiated strategy

https://www.youtube.com/watch?v=Az0Pb8YXfs8


FIFA / Global Brands Group – Growing an international business

Strategy – This global retail strategy required a license approach with all country and region nuances to be considered, across languages, cultures and economic differences. Built on consumer research, market analysis and market opportunity with strong focus on the customer experience.

Implementation – This strategy required a replicable framework in all retail operating frameworks from agreements, through training, operational material, store design and branding guidelines to licensee documentation.

“Retail Doctor Group provides us with the discipline. In pure deliverables Retail Doctor can be as prolific as we need – from strategy development to creating licence documentation including compliance standards, KPIs, operations manuals, visual merchandising guidelines, marketing and promotions manuals, product knowledge manuals, evaluation formats, retail selling and management training kits and reporting systems.

We where consistently performing above all global benchmarks in the economics of this project and early stores are achieving impressive results.

Their approach is not an off-the-shelf-one-size-fits-all delivery; rather the outputs are really an outcome of truly understanding the objectives of our retail business approach, getting a feel for what the market is already doing / where it is going - and ‘prescribing’ solutions to effect increased performance.”

Peter Larum, Global Marketing Manager Global Brands Group

Key data on FIFA

Format: International governing body of football

Store Locations: Global

Merchandise Mix: FIFA products retailed through key licensees and retailers

Brief: GBG acquired the FIFA brand with a mandate to develop a global retail channel of “football shops”. RDG was commissioned to work with GBG to develop the operating strategy through to implementation resulting in pilot stores successfully opened in Singapore, London and Paris.


Lifeline Shop – A national not-for-profit retailer“Brian is an amazing professional with the highest of integrity, exceptional motivator is solutions focused and his expertise and knowledge of the Retail Sector and business improvement is of the highest standard. I highly recommend Brian and the Retail Doctor Group services if you want sound professional outcomes that drive quick and longer term value adding results”

Danielle McKenzieGeneral Manager, Service and Centre development Lifeline, Australia.

Key data on Lifeline

Format: Retail opportunity shops

Store Locations: National distribution

Merchandise Mix: 2nd hand product in all categories – NFP to support service cause. Retail funds 80% of service infrastructure.

Brief: RDG was commissioned to assist in retail strategic development and implementation of strategic recommendations.

RDG ran a pilot group, as an element of the program, of Lifeline retail stores to support learnings and achieve greater than network average sales growth which was achieved.

Deliverables:Phase 1: Building of all operational training and compliance content necessary including brand guidelines, retail training material, visual merchandising and operational material.Phase 2: Leadership of an operating region.This phase is take a group of stores for a 16 week period and to assimilate the control associated with a centralised retail leadership and distribution model with the goal of delivering a 20% increase in retail sales in this period. Phase 3: Strategy.Building strategic options modelling for Lifeline distribution growth (organic and transactional) for Board approval including systems, logistics, retail shops and marketing.


Client Endorsement

“Brian and his Retail Doctor Group team have been instrumental in assisting us bringing the Tyre right brand to market while at the same time working with our management team to continually review and refocus our strategy and implementation. For anyone seeking excellence in Brian’s field of expertise, we would thoroughly recommend him and his team to assist in order to maximise your potential outcomes.”

Les DeCelis, CEO

“The ROI on this methodology has been immediate and profound.This is a fantastic methodology for drilling into what really matters to your customer and understanding not only how, but most importantly why they interact with your brand.We have a much clearer and more customer centric view into differentiating our Tyreright offer as a result of Katharina’s work with our organisation”.

Perry Scarfe, National Manager Business Development

View a video endorsement from Tyreright here

Tyreright – Building a national omnichannel retailer

Deliverables:

Tyres4U & Retail Doctor Group developed a strategy built around multi channel based retail supported by a network of independent tyre dealers brought together under the branding banner of Tyreright leading to 75+ profitable new sites in the market within 18 months

Insights – Consumer insights were achieved through RDG inisghts methodology in tandem with market trends and competitor research to understand the market opportunity and refine the point of difference strategyStrategy – The consumer insights coupled with strategy workshops with Tyreright senior executive developed an implementable strategy based on “omnichannel” retailingImplementation – This strategy was then implemented to go to market stage, including our resources in store design, category management, merchanidse planning and operating systems and frameworks.

Key data on Tyreright

Format: Wholesale / retailer of tyres and tyre related fitting servicesStore Locations: Australia wide

Merchandise Mix: Tyre sales and fitting

Brief: Tyreright was a new entrant into the tyre retail market build a retail brand, broaden their distribution channel and create a replicable business framework to gain market share.

https://www.youtube.com/watch?v=V21RI53-3mY




Client Endorsement:

Our board, executive and myself have been delighted with the work of Retail Doctor Group and RDG Insights. Their consumer insights, brand and distribution strategy though to implementation program has achieved significant strategic and financial benefits for our organisation both physical and our online business showing 25 percent + growth since implementing RDG’s recommendations

Mark Rubbo, Owner – Readings Pty Ltd

Readings – An industry undergoing structural changeKey data on Readings

Format: Retailer

Store Locations: Melbourne & online

Merchandise Mix: Books, music and film

Brief: This is an industry undergoing structural change. Owner Mark Rubbo commissioned RDG to understand consumer insights within this space and to assist in building a positioning strategy and resultant implementation plan ensuring future growth.

DeliverablesInsights - Understanding the business, consumers and customers at an intimate level both in the reasons and intrinsic motivations as to why they interact with the Readings brand.Strategy – These consumer insights coupled with executive interviews, market sizing and a strategy workshop all contributed to a clearer definition of the way forward for Readings resulting in a clearer definition of the brand positioning and retail strategy for the business.Implementation – Executing the strategy across all channels for sustainable change. This is delivered through a fitness plan than articulates the “how to” deliver in all the practical aspects of retailing – from Brand treatment, visual impact, training, inventory, margin enhancement, the structures and people through to the business information systems enhancement.


University of Wollongong – UniShop towards a digital future

Key data on The University of Wollongong Uni Shop

Format: University bookshop / convenience store

Store Location: University of Wollongong

Merchandise Mix: textbooks, office supplies, stationery,

Brief: Unishop engaged RDG to assist in providing customer insights, developing a digital retail strategy, and subsequent implementation planning correlating the retail strategy to the actual customer experience. This was supported by implementation work including retail training, effective people programs and working capital management.

Client Endorsement:

“The report, findings and presentation of the program to our team has been fantastic and we are confident it will lead to significant business improvement.” Already we are seeing team focus and double digit sales growth.

Wayne Clarke, General Manager, Wollongong UniCentre

DeliverablesThrough a program of insights, strategy and implementation, we provided a deep and robust understanding of their consumers. This underpinned a differentiated strategy focused on improvement of retail delivery and customer service standards whilst preparing for consumer adaptation to digital technology.

Following this strategy we produced a fully tailored implementation roadmap ensuring that the strategy is supported and implemented by key stakeholders. including retail training, working capital management

RDG remains as an adviser and facilitator of the implementation project.


Deliverables:

The National Australia Bank has recently placed a large focus on its retail banking capability as a major strategic and service differentiator. To this end the NAB engaged the services of Retail Doctor Group to work with their internal teams to evolve and refine the retail offer to customers and to lead the journey towards the achievement of ‘the greatest shopping experience in retail banking’. • A thorough critique and review of current retail delivery. • Provision of a series of retail solutions that significantly enhance

retail capability. • Greater cultural and retail capability alignment. • Enhanced retail branch design and format. • Integration of retail expertise to existing capability. • Development of a segmented retail format strategy.

National Australia Bank (NAB) – Maximising touch pointsKey data on NAB

Format: Australian Financial Institution

Store Locations: Australia wide

Number of Stores: 1,808 branches & service centres and 4656 ATMs globally.

Merchandise Mix: Retail bank

Brief: With almost 3 million customers nationally and employing 8,500 staff, National Australia Bank’s objective is to become the ‘Greatest Shopping Experience in Retail Banking’.

Client Endorsement:

“We are delighted with the contributions Retail Doctor Group has brought to our project. Already we can see considerable added value, including a 25% reduction in working capital investment, through the evolution of the shop design and formats, a greater understanding of retail matrix, and the integration of both that is required to build an even more sustainable and leading retail banking channel. We continue to work with Retail Doctor Group in its capacity as a project board advisor to the strategy implementation team.”

Daniel Milentijevic, Manager - Capital Works National Australia Bank


Clients2NDS World

Amcal

AMP Capital Investors

Apple Next Byte

Australian Geographic

Balance

Bennett’s Book Shops

Ben Sherman

Berkelouw Books

Bluespirit

Bob Jane T-Mart

Camping World

Centro Chadstone – The Fashion Capital

Chantelle

Chatswood Chase

Collins Street Precinct

Colonial Shopping

Centres

Denim Enterprises

Dunklin

Edments

Farage Fashion

Fieldforce

FIFA

General Pants Group

Glassons

Global Brands Group

Gloria Jeans

Gloster Fashion

Go Vita

GPT

Hallensteins

Hairhouse Warehouse

Herringbone

Hillam

Hills in Hollywood

Hutchinson 3G

Hutchinson Vodafone

ISRA

Jan Logan Jeweller

Jetty Surf

Jewelbox

La Biosthetique

Lacoste

Leading Edge Golf

Leading Edge Music

Leading Edge Video

Lee Wrangler

L’Occitane

Mao and More

Marketplace Leichhardt

Mega Fruit

Melbourne Central

Microsoft

Mitre 10

National Australia Bank

Nautica

Next Byte

Nextra

Nutra Life

The North Face

ODMA

Optus World

Oxfam Shops

Passionata

Performance Golf

Pink Zebra

Price Attack

Reebok

Rockport

Running Bare Fashion

Salt Water Wine Surf

Speedo Surf Dive Ski

Socrates

St George Dragons

St George Bank

Star Surf + Skate

Stockland

True Alliance

Tyreright

Ugg Australia

University of Wollongong

Vitaco

Waterco

Westfield

Whitcoulls

Tectura

Telstra Shop

Terry White Pharmacy

Top 3 by Design

Total Tools


RDG In the News

Brian Walker, Founder & CEO of Retail Doctor Group is Australia’s most sought after speaker, writer and

commentator on a range of retail topics.

Join our growing list of clients who receive our complimentary monthly Retail Barometer™

Simply visit www.retaildoctor.com.au and follow the links to subscribe

http://www.retaildoctor.com.au/


We look forward to hearing from you

Suite 1B, 2A Glen Street, Milsons Point NSW 2061 Phone | +61 2 9460 2882E-mail | [email protected] Web | www.retaildoctor.com.au