1 / 27

Category Management

The Next Wave of Best Practices Category Management Focusing on the Shopper, on Execution and on Team Capabilities The Partnering Group, Inc Jeff Clow. Category Management. Concept introduced in the late 1980’s Category Management has had global acceptance since it’s introduction

toril
Download Presentation

Category Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Next Wave of Best Practices Category ManagementFocusing on the Shopper, on Execution and on Team CapabilitiesThe Partnering Group, IncJeff Clow

  2. Category Management Concept introduced in the late 1980’s Category Management has had global acceptance since it’s introduction The 1995 US ECR Report documented the Best Practices definition and business process

  3. Category Definition Category Role Category Assessment Category Review Category Scorecard Category Strategies Category Tactics Plan Implementation Category Management Process

  4. Adoption of Best Practices Spread Quickly Adoption 1993 Today The Best Practice Model provided a Platform for Global Adoption.

  5. 15 years later it still is a Top Priority 98% of retailers and 89% of manufacturers consider Category Management critically important.

  6. Key Reasons why CM Has Worked Provided foundation for strategic retail marketing Categories as Strategic Business Units Aligning Company to Company strategies Balanced portfolio of Category Roles Linking Category Strategies and Tactics Brought consumer focus to Retail Marketing and Merchandising New Category Definitions and Structures Consumer-driven Strategies and Tactics

  7. Key Reasons why CM Has Worked Provided a new and more effective model for collaboration through better information sharing Expanded organizational capabilities Attracted and developed new skills and talent Roles and accountability Scorecard-based performance Delivered superior results Retailers and Manufacturers Sales, Profits, and ROI

  8. Why CM Hasn’t Achieved It’s Full Potential Inconsistent top management support Too often used as a tactical tool rather than for achieving differentiation and strategic advantage Scorecards have not changed enough to motivate and reward new behavior Too project oriented – not a “continuous” process Work cycles too long and time intensive Process too data focused and template driven – not enough emphasis on insights

  9. Why CM Hasn’t Achieved It’s Full Potential Too much reliance on manufacturers – lack of retail ownership Too headquarters focused – not enough store / shopper focus Inconsistent implementation at store level People competencies not systematically developed and maintained to sustain advantage Lack of software supporting tools, especially in promotion and pricing tactics New trends and competitive challenges have emerged

  10. Trends Shaping The Next Generation of Category Management Competition Shopper Store As A Marketing Medium Technology & Information Loyalty Programs

  11. Shopper Marketing - The Next Wave Shopper Marketing Next Generation Store Designs ECR Category Management Best Practices Category Management Today Space Management 2000 1995 Scanning 1989 1985 1975

  12. Introducing… Shopper & Category Development The Next Wave of Best Practices Category Management Publication: 2009

  13. Shopper & Category Development • Key Elements • Streamlined, robust for all categories • Consumer & shopper insight driven • Shopper-centric strategies • Loyalty Marketing integration • Breakthrough, differentiated initiatives • Global & local application • More emphasis on implementation

  14. The Philosophy & Objective Remain The Same “A Retailer - Supplier Process of managing categories as Strategic Business Units, producing Enhanced Business Results by focusing on delivering Consumer/Shopper Value.” Supplier Retailer Consumer/Shopper

  15. Category Definition Category Role Category Assessment Category Review Category Scorecard Category Strategies Category Tactics Plan Implementation But the Process Has Evolved Category Definition Category Role Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch

  16. CATEGORY SUB-CATEGORIES SEGMENTS SUB-SEGMENTS Best Practices Enhancements Definition & Role remain as important “umbrella” elements of the process. Category Definition Category Role • Greater focus on strategic alignment and Destination categories. • Performed as needed

  17. Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Best Practices Enhancements • Focus is on finding key opportunities versus “boiling the ocean” • Heavy emphasis on shopper understanding & behavior • Business question driven versus filling in templates

  18. Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Best Practices Enhancements • Strategies/Tactics are more integrated for optimal linkages • Greater focus on the consumer and shopper • Strategies are differentiation focused • Tactical Blueprints are key output • Provide tactical guidance of initiatives • Provide direction for Core and Local category planning

  19. Tactical Blueprints • Blueprints identify “The How” • Link each category strategy to the key tactics • Establish the core tactical elements (that can then be customized locally)

  20. Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Best Practices Enhancements • Focus on differentiating, more sustainable category initiatives • Rigorous cost/benefit analysis & prioritization • Formal Identification of Plan Requirements • Secures internal / supplier commitment and resources • Importance of Initiatives • Deliver differentiation and innovation to Category Plan • Create focus on implementation and success measurement

  21. Simplified Shopping Initiative Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Ready To Go Gift Bags to Drive Transaction Size Full-face On Top Captions to Simplify Shopping and Improve Conversion Lower Density and Vertical Blocking to Improve Shopping Driving Quick Conversion and Encouraging Multiple Purchases Consumer Driven Arrangement Organized by Occasion and Recipient Improved leverage & recognition of brand existence in the store

  22. Shopping Initiative - Example Greeting Cards Category

  23. Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Best Practices Enhancements • Detailed implementation planning tied to each initiative • Formal approval & executive commitment process • Improved scorecard target setting & measurement

  24. Moving Beyond Traditional Category Plans Category Definition Category Role Insight Generation Strategic & Tactical Planning Plan Review Initiative Development Plan Launch Traditional Category Plans Shopper Segment Plans Portfolio Plans

  25. Enabling S&CD: Competency-based Curriculum w/ Blended Delivery Across Levels Competency Based Curriculum Blended Delivery Example

  26. Mastery Demonstrates extraordinary level of capability. Has the potential to be the top performer and resident expert. Demonstrates mastery of best practices. Applies deep knowledge to the most challenging situations with breakthrough results. Has the potential to be seen as a thought leader in the industry. Is able to bring strategic insights to opportunities. Practicum Test Advanced Demonstrates an advanced level of capability. Has the potential to perform at an above average level. Can execute all primary tasks and functions. Decision-making reflects application of knowledge. Application of learning produces desired results. Test Foundation Demonstrates base level of capability. Has the potential to perform adequately. Applies basic knowledge to daily work. • New personnel (all key functions) • Category Managers • Buyers • Account Executives • Analysts • Select Support Staff • Category Managers • Sr. Buyers • Sr. Analysts • Account Executives • Customer Marketing Personnel • Category Managers / Director-VP’s • Sr. Buyers / VP Merch • Sr. Analysts, Director Insights • Sr. Account Execs/ Regional VPs • Sr. Marketing personnel TPG’s Consumer Products Leadership Program

  27. Is your team ready for the next wave?Thank you!Jeff Clow(940) 497-9622jclow@tpg-mail.com

More Related