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The Disney Store Japan
“Disney Magic in Town
…getting much, much closer to You”
OgilvyOne worldwide
Japan
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Agenda
Where are we and why? - Current Situation
Where do we want to be? - Objective
How do we get there? - Program
Where do we start? - Test
How far can we go? - Benchmark
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Where are we and why?
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Key Discoveries
Market (category)
Consumer (category)
Communications (category)
Disney Brand and TDSJ
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Market
New entrants such as Snoopy Town and WBSS creating noise with strong entertainment factor
Sanrio moving tactically to capture various target segments
Disney goods available in various types of places
Is TDSJ entertaining the guests, giving more than a place-to-shop?
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Consumer
Male and female, of mainly 20s, have interest in character and character goods (34% male and 42% female in all: 47% male and 61% female in 20s)
73% of those who have interest don’t mind spending a little more to enjoy their life (50% of those who have no interest)
Avg. spend 24,000 yen per year: 12,000 for oneself and 17,000 yen for gift and family
Consumer has wider choice in terms of character, item and place to enjoy and shop
Avg. spend 7,500 yen of TDSJ is lower than the category avg.
Opportunity for TDSJ to increase share of customer
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Communications
Most competitors do not have active mass communications except for occasional PR, and they rely on the store and the characters
TDSJ also rely on characters and synergy partners
WB has CC with minimal membership privilege
Sanrio has newsletter sold in-store and will start membership club in May-June
No active or one-to-one communications with customers now, but the competitive environment is changing
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TDSJ & Brand
Disney: “Experience the Disney Magic”
Store’s motto: Entertainment Shopping
Very high awareness
80 stores in Japan; 82 stores by Sep. ‘99
About 75% of items are only available in TDSJ
Friendly cast
Have more guests than TDL (24 vs 15mil)
A place near your home where you can enjoy and have the feel of TDL, things related to new movies and exclusive Disney items
Does it satisfy guests with the magical experience and entertainment?
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TDSJ Survey Results
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“All consumers are
NOT
created equal
and should
NOT BE
treated equally”
Differential Marketing
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Profit Segments
High
Medium
Low
No-
Profit
Sales & Profit
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58
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In virtually every category, a small group of high-profit consumers accounts for the vast majority of the available sales and profit in the category.
Ogilvy & Mather has recently completed a survey of a broad range of categories, from packaged goods to fast food to long distance calling to credit cards. It confirms what has long been know by marketers as the “Pareto Principle,” or the “20/80 rule.”
In category after category, the top third of category buyers account from anywhere from 65 percent to 85 percent of category sales. Or to put it another way, the most valuable third have a “profit differential” that can be eight times greater than the middle third, and as much as twenty times greater than the bottom third.
What’s more, when the size of the no-profit segment is factored in, the top third of category buyers can be a remarkably small percentage of total households.
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The DFM Communications Model
High
Medium
Low
No-Profit
Thus the core strategy of Differential Marketing is place more marketing activity and resources against the most valuable consumers.
High-profit consumers receive a greater level of loyalty-building communications than consumers in other profit segments - significantly more than if only conventional marketing practices were employed.
Perhaps surprisingly, much of that additional loyalty-building communications is directed at the brand’s current customers.
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33%
75%
Sales
Buyers
An Universal Phenomenon
48
63
63
Although, the source of data from the preceding charts was the ., research sources around the world confirm that this is a universal pattern.
The phenomenon of the few accounting for the most is consistent from category to category, from country to country, and from brand to brand. The high profit segment always exerts extraordinary leverage on the overall health of the brand franchise.
So what is the implication on targeting?
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Targeting the Right Customers
How do we define high-profit customers?
By their buying behavior!
Not only by their demographics.
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Key Marketing Issues of TDSJ
TDSJ must enhance its core value to stand out in the market place
TDSJ must retain those guests who already value TDSJ and foster them -- give them more value
We know that there is a group of mania/collectors and a group of fans (mainly aged 20-34 female), but don’t know who they are and don’t communicate directly/one-to-one with them and value them (except for the communications each store has with minimal no. of guests)
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Where do we want to be?
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Objective
Establish stronger Loyalty in guests to
generate stable growth in sales and profit
Specifically:
Increase the high yield guests
from 12% to 20%
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Occasional
Semi Fans
Collectors
Great Fans
Assumption of 3 Clusters
Never
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Loyalty
Frequency of Purchase
Sales & Profit
Competitive Brand
Store Presence & Visit
Increase
Maintain
Maintain
Maintain
Prevent
Decrease
Maintain
Increase Share of Guest
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How do we get there?
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What can guest benefit from TDSJ?
75% of item is only available in TDSJ
Items are limited/exclusive, imported, etc.
New item is sold faster than any other place
Experience: Entertaining, just as a show, as if in a world full with Disney magic
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2 Differentiators
Exclusivity of products
Guests come to TDSJ for Disney goods only available in the store
Experience
Guests come to TDSJ near their home or office for the entertainment, to feel/see/hear the Disney magic
Core value of TDSJ
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Our Mission
Whatever we do…...
We must focus on core brand value to differentiate us from the competition
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360 degrees Brand Stewardship
Advertising
mass communication
brand image
One-to-One
individual communication
more benefit driven
track response & test
brand image
BUILD BRAND
Internet
individual communication
more benefit driven
track response QUICKLY
brand image
PR
mass communication
builds brand credibility
brand image
Store
in-store communication
brand experience
cast
brand image
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With one step in the store,
you’ll find a world of Magic
Wow!! You’re left standing with your mouth open.
Everyone believes in Magic somewhere in the heart. The Disney Store brings out such belief.
It is an exciting space that is close to you, where you can feel, touch and bring back home Disney Magic that has transformed into an object.
The Disney Store
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Flagship Store
You can experience the real Disney Magic in town (your neighborhood)
To emphasize the experience factor
Create a flagship store in each key region to provide guests with outstanding experience of entertainment and Disney magic
Outside city-centre, . Daikanyama, Jiyugaoka in Tokyo
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More Entertainment (in the limited space)
In-store show every other hour during the weekend and holiday
Simply turn the lights off every other hour for a light and sound show
Big screen or more monitors into the floor
Human size characters welcoming guests
Make the guests experience the Disney magic with a step in the TDSJ
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Building Guest Loyalty
“Customer Loyalty is not about how customers demonstrate their loyalty to us, it is about how we demonstrate our loyalty to them”
Sir Ian MacLaurin
Chairman, Tesco Plc
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Demonstrating Guest our Loyalty
By recognizing them
By rewarding them
By going beyond the usual
By providing valuable information
By involving them
Guest Loyalty Program
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Invite GUESTS to become much, much CLOSER to the store
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Strategy
Capture existing high yield guests and retain them
Increase share of guest, high yield and potentially high yield
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Membership Club
More than a store
Store
Guest
Closer Intimacy
. Deeper Relationship
by understanding each guest.
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You can have even deeper relationship with Disney Magic through Disney “Club WOW!,” and the world of Disney Magic becomes even closer to you. Imagine how fun and delightful your life will become.
Disney “Club WOW!”
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Lead &
Acquisition
Retention
In-store
Leaflet
Poster
On-receipt
Cast
Out-store
Leaflet
Internet
In-store
Welcome pack
Card
Existing Data
Welcome pack
and card
Member
Purchase X yen
Data
Capture
Points
Rewards
In-store
Cast
Point-check
Give-away
DM
B-day card
Seasons’ grtg
w/Invitation
Internet
Member’s page
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Ｒｅｗａｒｄ Ｓｙｓｔｅｍ
Guests
DM Communications
HQ
Database
Internet Communications
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58
58
In virtually every category, a small group of high-profit consumers accounts for the vast majority of the available sales and profit in the category.
Ogilvy & Mather has recently completed a survey of a broad range of categories, from packaged goods to fast food to long distance calling to credit cards. It confirms what has long been know by marketers as the “Pareto Principle,” or the “20/80 rule.”
In category after category, the top third of category buyers account from anywhere from 65 percent to 85 percent of category sales. Or to put it another way, the most valuable third have a “profit differential” that can be eight times greater than the middle third, and as much as twenty times greater than the bottom third.
What’s more, when the size of the no-profit segment is factored in, the top third of category buyers can be a remarkably small percentage of total households.
Thus the core strategy of Differential Marketing is place more marketing activity and resources against the most valuable consumers.
High-profit consumers receive a greater level of loyalty-building communications than consumers in other profit segments - significantly more than if only conventional marketing practices were employed.
Perhaps surprisingly, much of that additional loyalty-building communications is directed at the brand’s current customers.
48
63
63
Although, the source of data from the preceding charts was the ., research sources around the world confirm that this is a universal pattern.
The phenomenon of the few accounting for the most is consistent from category to category, from country to country, and from brand to brand. The high profit segment always exerts extraordinary leverage on the overall health of the brand franchise.
So what is the implication on targeting?
