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DIY & Household Retail

„Digest of store concepts - 2011“

Knauber – How to become a shopping experience

Dr. Nektarios Bakakis

Knauber Freizeit GmbH & Co. KG, Bonn, Germany

26.05.2011 Moscow - Russia

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Facts and Figures

Founded: 1880 in D-Bonn

Headquarter: D-Bonn

Employees: 1.000 (FT, PT and temporary staff)

Turnover 2009: 500 Mio. Euro

Shareholder: 100% family owned by Knauber

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Estella KochLust GmbH

Ehrenstraße 15-17 · 50672 Köln

www.estella-kochlust.de

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130 years Knauber Bonn – over 40 years Knauber Freizeit

• 1880 Opening of a grocery shop

• 1923 Opening of the first

fuel station in the area

• 1951 Entry in the LPG business

• 1954 Entry in the oil business

• 1968 First DIY-store in Germany

• 2010 42 years Knauber Freizeit

– 7 stores

– 66.000 sqm gross sales area

– 750 employees

• From 2011 ...

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- Philosophy

STORE/SHOPFITTING

CUSTOMER

PRODUCT RANGE EMPLOYEE

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The customer is always at the centre

1. The customer has to be in your store

2. The customer has to be your fan

3. The customer has to be in your community

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Customer needs change so that the opportunities for new concepts grow

Traditional success factors

• Price

• Range

• Location

• Quality

• Service

• Uniqueness (Differentiation)

• Speed

• Openness

• Emotions

• Made to measure

New success factors

Services and a customized product range are central elements of experience and self-realization

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Product range is self-developed and not bought

Product range-policy and -strategy

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Product range is self-developed and not bought

Product range-policy und -strategy

• 180.000 active articles and 330.000 available articles

• 11 product range manager

• 1 purchasing Manager

• Theme and trend areas

• Season area (garden, Christmas, Carnival, ...)

• Knauber „world concept“ for living and garden

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Theme oriented product range provides variety and interest to the customer

Lighthouse-areas and -assortments are eye-catching presentations and draw

customers more often into the store

Image and attention is the target of these areas and not turn over and/or

profit maximization

Early planning and communication with our trend scouts is required to find

always new themes

Parallel a qualification of the involved employees, concerning stylish

selection and combination of the product range, takes place

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Theme example „Christmas time“

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Theme example „Red“

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Theme example „Metropolitan “

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Theme example „Dots “

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Theme example „Summer Party“

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Integrated Knauber „Living-World-Concept“

Product range: Combination of home textiles, wallpaper, lighting and

home accessories

Price: Middle range

Presentation: Development of an independent visual merchandising,

together with interior designers

Consulting: Qualification of the involved employees concerning

stylish selection

Service: Supplement it with appropriate services

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Product range is structured by styles

Design Nature

Traditional Trend

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Living-World „Design“

• Uncoloured• Black-

white

• Simple clear form

• Glass• Porcelain• Metal, leather• Fine wood

• Timeless• Exclusive• Functional• High

aesthetics

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Living-World „Nature“

• Natural colours

• Beige-brown• Green

• Natural, organic shapes

• Natural materials

• Rattan, bamboo• Wood, cork

• Authentic• Manual• Sensual• Bionic

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Living-World „Traditional“

• Brown tones

• Baroque colours

• Antique, baroque shapes

• Gorgeous material

• Mirror, wood• Ancient

porcelain

• Decorated• Rustic• Representative• Nostalgic

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Living-World „Trend“

• Coloured• Colourful• Contrast

• Synthetic shapes

• Synthetic and natural materials

• Spacy• Imaginative• Not committed

to any stile

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Integrated Knauber „Garden-World-Concept“

Product range: Combination of barbecue, garden furniture, fire/lighting

and garden accessories

Price: Middle to high range

Presentation: Development of an independent visual merchandising,

together with interior designers

Consulting: Qualification of the involved employees concerning

stylish selection

Service: Supplement it with appropriate services of garden

design

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Garden World „Design“

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Garden World „Traditional“

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Garden World „Trend“

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Garden World „Autumn and Winter “

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Communication reflects style and emotion

Targets: Profile of the brand in existing and new target

customers increase customer frequency

Strategy: Communication about ideas and stories, about emotion

and communication value instead of price; balance

between product and image advertising

Implementation: Development of new communication styles

realization of a concept that combines aggressive

pricing and differentiated approaches

Development of new sales promotion pulses

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Example Catalogue: Living-World Design

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Example catalogue: Articles

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Example Catalogue: Living-World Nature

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Example Catalogue: Living-World Traditional

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Style and emotion as an essential cornerstone of the differentiation strategy

Differentiation strategy is for Knauber essential

Long-standing expertise in the 'soft‘-DIY product range as the basis

Increased addressing of atypical DIY-target groups

Addressing women and family as key decision makers

Major positioning measures

Emotional visual merchandising

Alternating theme areas

Style oriented Living- and Garden-Worlds

Emotional marketing performance

Helpdesk- and service competence

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