Brand Strategy & Best Practices Lilian Garzon Richard’s Liquors and Fine Wine District Manager

A brand for the company is like a reputation for a person. You earn reputation by trying to do hard things well.” Jeff Bezos – Amazon.com “Your premium brand had better be delivering something special, or it’s not going to get the business.” Warren Buffett “Brand is the ‘f’ word of marketing. People swear by it, no one quite understands its significance and everybody would like to think they do it more often than they do” Mark di Soma Marketing Guru

EquityValue = $$$ The Well Positioned Brand Equity + Value = $$$ Equity and Value = Revenue & Market Share Brand personality defined by: – Customers – Employees – Suppliers/Distributors/Vendors – Competitors – The Market When a business fails to clearly define, manage and communicate it’s desired Brand, (Personality and Message) - customers, employees, suppliers, competitors and the market WILL! And the business may not like the definition!

The Richard’s Brand Legacy Brand (Equity) – 50 + years in the Houston market – Brand Personality High Quality Products Excellent Customer Service Knowledgeable Wine & Sprits Experts Brand Promise (Value) – When purchasing, shopping or visiting Richard’s, our customers experience an extensive selection of high quality products, a staff of attentive and knowledgeable experts who are treated like a valued friend or guest.

Current Challenges Brand Confusion – Employees Richard’s SPEC’S – Suppliers Distributors Former wineries and brands Brokers – Market Some general awareness of merger Clearly not SPEC’S May become SPEC’S? – Wrong Assumption Still Richard’s but there are some changes that are new – Customers Loyal customers don’t appear to have issues – UNTIL they intersect with an unfamiliar SPEC’S process New customers experience the current brand in typically a positive way. SPEC’S customers may expect the same discount pricing and inventory once they are aware Richards is owned by SPEC’S Corporate/Internal Communications – – What is the relationship between Richards and Specs – What is the strategy - Internal – How are the two Brands Different? – Internal and external – Processes, Procedures, Operations, Marketing

What Do We Know? Richard’s IS a legacy brand and continues to provide value! Richard’s has a very loyal, well educated customer base Richard’s focuses on “High Quality & Customer Care” Purchased 36+ months ago by SPEC'S Early Signs of “36 Month Brand Confusion” The answer depends on WHO YOU ASK! ARE YOU RICHARD’S or SPEC’S?

Today’s Meeting Herman Keys Memo – 5/24/13 sent to all SPEC’S employees: “Richard’s is a separate brand and we should not be sending customers to those locations without first contacting Lili or myself. If they have a product you, need contact Lili.” Objective – Bring Key Stakeholders together to provide input, feedback and ideas that can assist in the development of a strategic plan for brand positioning, operational changes, marketing and process deployment to continue to extract and expand the value of the Richard’s brand Discussion and Brain Storming Identify low hanging fruit – Opportunities Establish lines of communication Roles and Responsibilities Next Steps and Action Items

The Message? We are Richard’s Liquors and Fine Wines! We are NOT SPEC’S!

The Two Brands – One Company Model The two brands are different; not better or bigger, just different. The customers of each brand have different buying habits and needs. Both sets of customers deserve the same attention and care. Both sets of customers may do business with both brands. Suppliers can better serve both brands when they understand the different business needs and are encouraged to adapt. Understanding and “believing” the value of a two brand-two tier strategy is the key to the success of the business. Everyone from the executive suite to the warehouse must understand, respect, value and believe in both brands. A well communicated and deployed Brand Strategy maximizes value extraction, contains and avoids costs, increases productivity and positively effects bottom line results.

Example Central Market is owned and operated by the privately-held HEB Grocery Co. who operates over 300 conventional grocery stores in Texas and Mexico under the H.E.B. brand. Currently, their Central Market concept has eight locations. The Central Market concept differs in that it appeals to the educated and well-paid customer who is attracted to indulgent shopping adventures. Their merchandise assortment runs from upscale gourmet to downscale ordinary. Meaning, you can expect to find familiar products/brands as well as an array of hard-to-find gourmet goodies at Central Market.

Proven Strategy Two Tiered Branding Value Pricing Indulgent Experience

Strategy vs Tactics Strategy Drives Tactics Tactical programs MUST be measureable “What gets measured – gets done!” Brand Promise/Personality drives strategy which then drives the tactics – IMC – “ Integrated Marketing Communication ” Marketing & Communications – Traditional – Non-traditional – New Media – Social Media – Resources & Investment

OPEN DISCUSSION