品类管理流程
- 1. CATEGORY MANAGEMENT
- 2. Session Objectives:Define Category Management (CM) Describe Category Management as a Business Process Discuss Critical Issues Related to Successfully Developing a Category Management System Category Management ProcessCategory Management IssuesDefine Category Management
- 3. DefinitionBringing Better Value to the Consumer is the Primary Focus of Category Management.“A Retailer-Supplier process of managing categories as Strategic Business Units, producing improved sales and profit results by focusing on satisfying consumer needs and delivering consumer value.”Source: ECR Best Practices Report
- 4. Category Management has expanding into durable goods and services.Is Category Management just for the grocer? Durable Goods Auto Industry - GM Pontiac & Ford Service Industry Phone Service Financial Services/BanksDefinition
- 5. The ECR SystemTimely, accurate, paperless information flowSupplierDistributorRetail StoreConsumer HouseholdSmooth, continual product flow matched to consumptionDefinition
- 6. Efficient PromotionEfficient Store AssortmentDefinitionCategory Management is at the at the core of ECR. CM provides a process & framework for collaboration.Efficient New Product DevelopmentEfficient ReplenishmentCATEGORY MANAGEMENT
- 7. Category Management as a Business Process is comprised of interrelated components both within and outside of the organization.What is Category Management?DefinitionInformation TechnologyStrategy & Business ProcessScorecardCollaborative RelationshipsOrganization CapabilitiesCoreEnablersEnablers
- 8. CATEGORY MANAGEMENT: HOW IS IT DIFFERENT?Category/Brand/SKU Management under one Decision Maker Consumer-Focused Strategies Data-based Decision Making Proactive Business Planning Collaborative Work Process Manage Category As Business Unit Focused on Category ROI - NOT Sales or Gross MarginDefinition
- 9. SKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENTData analysis and technical mastery Shopper and consumer understanding Strategy development Financial and logistics expertise Innovation Total Systems FocusDefinition
- 10. DefinitionWhy is it beneficial for Retailers and Manufacturers to Invest in Category Management?Helps Retailers - Define customer needs Determine strategic issues Enhance category and store profits
- 11. DefinitionWhy is it beneficial for Retailers and Manufacturers to Invest in Category Management?Helps Retailers - Define customer needs Determine strategic issues Enhance category and store profits Helps Manufacturers - Position themselves as category captains for retailers Become an indispensable resource for the retailer Enhance brand profits
- 12. Road MapCategory Management as a Business ProcessCategory Management IssuesDefine Category Management
- 13. ProcessCategory Management as a Business Process.Category DefinitionCategory RoleCategory AssessmentCategory ScorecardCategory StrategiesCategory TacticsPlan ImplementationCategory ReviewSource: The Partnering Group
- 14. What is a Category? A distinct, manageable group of products/services that CONSUMERS perceive to be interrelated and/or substitutable in satisfying their need(s). ProcessCategory Definition - critical in determining the products that make up the category and in establishing the segmentation strategy.
- 15. What is a Category? A distinct, manageable group of products/services that CONSUMERS perceive to be interrelated and/or substitutable in satisfying their need(s). ProcessCategory Definition - critical in determining the products that make up the category and in establishing the segmentation strategy.How does defining a category help? Produces better retailer/manufacturer alignment with the consumer Creates better manufacturer-retailer alignment Gives new perspectives on how to view a product and/or category
- 16. ProcessJuices & drinksShelf stableRefrigeratedFrozenGlass/PlasticAsepticReady to ServeConcentrateCategory Sub-Category Segment Sub-Segment Defining a Category by Usage SegmentLemon Juice Segmentation:Source: Borden, Inc.
- 17. ProcessCategory Role (or purpose) defines how the consumer views the category.Possible Category Roles: Destination Convenience Routine Seasonal/Occasional
- 18. ProcessCategory AssessmentCategory Assessment involves conducting a complete analysis of the category by investigating it’s sub-categories, user-segments, brands, and SKUs. Such an analysis must be based on current consumer, distributor, supplier and market information.
- 19. ProcessOne example might be identifying the gap between the current sales and the potential sales of a category.Source: Borden, Inc.
- 20. ProcessKey Questions in Conducting a Category Assessment Who is my target customer? How important is this category to that customer? What are the category trends? volume, share, profits? What are the key product segments? What are the least and most important SKUs?
- 21. ProcessKey Questions in Conducting a Category Assessment (continued) How well is shelf space aligned to SKU movement? How do consumers view brands? Brand names versus store brands When they make a purchase, How large is it? What else do they buy? How does the category’s pricing compare to the rest of the store?
- 22. ProcessKey Questions in Conducting a Category Assessment (continued) How does the category’s pricing compare to the market? What percentage of volume is sold on promotion? What is the impact of featuring and display? What brands and sizes “define” and/or build the category?
- 23. ProcessThe Category Scorecard measures and monitors the progress and performance of the category business plan. Targets or hurdle rates must be clearly stated.RevenueMarket ShareConsumption (Equiv. Volume)Out-of-stocksProfit Target Consumer ShareROI
- 24. ProcessCategory Strategies define the marketing, product supply, and in store service required to meet targets or hurdle rates. Transaction Efficiency/Traffic Builder Shopping/Information Entertainment Types of strategies:Source: Robert C. Blattberg, 1996
- 25. ProcessCategory Tactics are the actions taken to implement the category strategies.Transaction efficiency/Traffic Builder > Low price/convenience > Category shop-abilitySource: Robert C. Blattberg, 1996
- 26. ProcessCategory Tactics are the actions taken to implement the category strategies.Transaction efficiency/Traffic Builder > Low price/convenience > Category shop-ability Shopping/information > Unique offerings/high service > Easy access to product informationSource: Robert C. Blattberg, 1996
- 27. ProcessCategory Tactics are the actions taken to implement the category strategies.Transaction efficiency/Traffic Builder > Low price/convenience > Category shop-ability Shopping/information > Unique offerings/high service > Easy access to product information Entertainment > Stimulation/excitement > Creative marketing/broad assortment > Changing variety of products Source: Robert C. Blattberg, 1996
- 28. ProcessCategory management plans are of little value unless they receive high quality implementation.Key Components of Plan Implementation: Common Language Buy-in at ALL levels Clear Approval Process Clear Assignment of Responsibilities Implementation Schedule Predetermined Indicators of Success
- 29. ProcessCategory Review is the ongoing measurement of the progress of the plan and modification where necessary.Stages of Category Review: Opportunity and discovery process Input, analysis & implementation Measurement, adjustment & learning
- 30. CATEGORY MANAGEMENTReviewing the CategoryTargeting ConsumersPlanning MerchandisingImplementing StrategyEvaluating ResultsProcess
- 31. Road MapCategory Management ProcessCategory Management IssuesCategory Management Definition
- 32. Category Management is a source of competitive advantage. If it is so easy to do and everyone is doing it, where is the advantage? Category Management is about strategic choices. The quality of the implementation and execution will determine the degree of competitive advantage gained.Issues
- 33. Category Management is a dynamic, evolving practice.Is there one approach?… no. Fundamental principles and processes. Implementation depends upon the capabilities and current practices of the organizations. Today’s practices are tomorrow’s foundations for improvement.Issues
- 34. Successful Category Management helps to define a partnership.Ability and commitment to develop the category A vision of the potential of the category Adequate information technology capability and sharing information Multifunctional team support capabilities Buy-in from top management Clearly defines the role of the manufacturer with regard to Category Management TrustIssues
- 35. How to develop a successful Category Management relationship.Develop a common language for Category Management Translate the goals of the partnership into a usable and measurable plan the utilizes fact-based CM decisions and practices. Educate everyone involved, buyers and suppliers, on the approach being taken for growing the category. Develop fact-based presentations representing the entire category. Develop a system of regular reports and monitoring for catching category trends and opportunities. IRI 1995Issues
- 36. Common Obstacles to Successful Category Management.Mistaken belief that the organization is already doing Category Management. Lack of management commitment. Lack of timely and easy to use information for category assessment. Inadequate knowledge or misinformation about the consumer characteristics/demand for the category. Managerial lack of training or abilities. Non-standard product or pricing for the category.Issues
- 37. The Manufacturer should keep their Category Management analysis honest.Manufacturer often does the initial analysis. Financial resources Potential benefit Initial indicators may bode poorly for the manufacturer’s product - but must accept losses. Solution: Get Marketing and others involved. Talk with your distributor and buy some time. Fix the product. If the analysis is right, something needs to change to address the shortcomings perceived by the consumers.Issues
- 38. CATEGORY MANAGEMENT Questions?
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