品类管理流程

,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,CATEGORY MANAGEMENT,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 Process,Category Management Issues,Define Category Management,Definition,Bringing,Better Value,to the Consumer is thePrimary 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,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/Banks,Definition,The ECR System,Timely, accurate, paperless information flow,Supplier,Distributor,Retail,Store,Consumer,Household,Smooth, continual product flow matched to consumption,Definition,Efficient Promotion,Efficient Store Assortment,Definition,Category Management is at the at the core of ECR. CM provides a process & framework for collaboration.,Efficient New Product Development,Efficient Replenishment,CATEGORY,MANAGEMENT,Category Management as a Business Process is comprised of interrelated components both within and outside of the organization.,What is Category Management?,Definition,Information,Technology,Strategy,&,Business Process,Scorecard,Collaborative,Relationships,Organization,Capabilities,Core,Enablers,Enablers,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 Margin,Definition,SKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENT,Data analysis and technical mastery,Shopper and consumer understanding,Strategy development,Financial and logistics expertise,Innovation,Total Systems Focus,Definition,Definition,Why 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,Definition,Why 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,Road Map,Category Management as a Business Process,Category Management Issues,Define Category Management,Process,Category Management as a Business Process.,Category Definition,Category Role,Category Assessment,Category Scorecard,Category Strategies,Category Tactics,Plan Implementation,Category Review,Source: The Partnering Group,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).,Process,Category Definition,- critical in determining the products that make up the category and in establishing the segmentation strategy.,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).,Process,Category 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,Process,Juices & drinks,Shelf stable,Refrigerated,Frozen,Glass/Plastic,Aseptic,Ready to Serve,Concentrate,Category Sub-Category Segment Sub-Segment,Defining a Category by Usage Segment,Lemon Juice Segmentation,:,Source: Borden, Inc.,Process,Category Role,(or purpose) defines how the consumer views the category.,Possible Category Roles:,Destination,Convenience,Routine,Seasonal/Occasional,Process,Category Assessment,Category Assessment involves conducting a complete analysis of the category by investigating its sub-categories, user-segments, brands, and SKUs. Such an analysis must be based on,current,consumer, distributor, supplier and market information.,Process,One example might be identifying the gap between the current sales and the potential sales of a category.,Source: Borden, Inc.,Process,Key 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?,Process,Key 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 categorys pricing compare to the rest of the store?,Process,Key Questions in Conducting a,Category Assessment (continued),How does the categorys pricing compare to the market?,What percentage of volume is soldon promotion?,What is the impact of featuring anddisplay?,What brands and sizes “define” and/or build the category?,Process,The,Category Scorecard,measures and monitors the progress and performance of the category business plan. Targets or hurdle rates must be clearly stated.,Revenue,Market Share,Consumption (Equiv. Volume),Out-of-stocks,Profit,Target Consumer Share,ROI,Process,Category 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,Process,Category Tactics,are the actions taken to,implement the category strategies.,Transaction efficiency/Traffic Builder,Low price/convenience,Category shop-ability,Source: Robert C. Blattberg, 1996,Process,Category 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,Source: Robert C. Blattberg, 1996,Process,Category 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,Process,Category 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,Process,Category 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,CATEGORY MANAGEMENT,Reviewing the Category,Targeting Consumers,Planning Merchandising,Implementing Strategy,Evaluating Results,Process,Road Map,Category Management Process,Category Management Issues,Category Management Definition,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,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.,Todays practices are tomorrows foundations for improvement.,Issues,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 andsharing information,Multifunctional team support capabilities,Buy-in from top management,Clearly defines the role of the manufacturer with regard to Category Management,Trust,Issues,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 1995,Issues,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,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 manufacturers 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,CATEGORY MANAGEMENTQuestions?,