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Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,CATEGORY MANAGEMENT,SessionObjectives:,Define CategoryManagement(CM),DescribeCategory Managementas aBusiness Process,DiscussCriticalIssuesRelatedtoSuccessfully Developing aCategoryManagement System,CategoryManagementProcess,CategoryManagementIssues,Define CategoryManagement,Definition,Bringing,Better Value,to the Consumeris thePrimary FocusofCategoryManagement.,“,A Retailer-Supplierprocessof managingcategories as StrategicBusinessUnits,producing improved,sales,and,profit,resultsby focusingon,satisfying consumerneeds,anddelivering,consumervalue,.”,Source:ECRBest PracticesReport,CategoryManagementhasexpanding into durable goodsandservices.,Is CategoryManagement justforthegrocer?,DurableGoods,AutoIndustry-GM Pontiac&Ford,ServiceIndustry,Phone Service,Financial Services/Banks,Definition,TheECRSystem,Timely,accurate,paperlessinformationflow,Supplier,Distributor,Retail,Store,Consumer,Household,Smooth,continual product flow matched to consumption,Definition,Efficient Promotion,Efficient StoreAssortment,Definition,CategoryManagementis at the atthecore ofECR.CM providesa process&framework for collaboration.,EfficientNew Product Development,Efficient Replenishment,CATEGORY,MANAGEMENT,CategoryManagementas aBusiness Process iscomprised of interrelated components both within and outside oftheorganization.,WhatisCategoryManagement?,Definition,Information,Technology,Strategy,&,BusinessProcess,Scorecard,Collaborative,Relationships,Organization,Capabilities,Core,Enablers,Enablers,CATEGORYMANAGEMENT:HOW IS ITDIFFERENT?,Category/Brand/SKU Management underoneDecisionMaker,Consumer-FocusedStrategies,Data-based DecisionMaking,Proactive Business Planning,Collaborative Work Process,Manage CategoryAs BusinessUnit,Focusedon CategoryROI-,NOT,Sales orGross Margin,Definition,SKILLS NEEDED TOBUILD BUSINESSTHROUGHCATEGORYMANAGEMENT,Dataanalysis and technicalmastery,Shopperandconsumerunderstanding,Strategydevelopment,Financial and logisticsexpertise,Innovation,Total Systems Focus,Definition,Definition,WhyisitbeneficialforRetailers andManufacturers to InvestinCategoryManagement?,HelpsRetailers-,Definecustomerneeds,Determinestrategic issues,Enhance category andstoreprofits,Definition,WhyisitbeneficialforRetailers andManufacturers to InvestinCategoryManagement?,HelpsRetailers-,Definecustomerneeds,Determinestrategic issues,Enhance category andstoreprofits,HelpsManufacturers-,Positionthemselves as category captains forretailers,Becomeanindispensableresourceforthe retailer,Enhance brand profits,Road Map,CategoryManagement as aBusinessProcess,CategoryManagement Issues,DefineCategoryManagement,Process,CategoryManagement as aBusinessProcess.,CategoryDefinition,CategoryRole,CategoryAssessment,CategoryScorecard,CategoryStrategies,CategoryTactics,Plan Implementation,CategoryReview,Source:ThePartneringGroup,What is aCategory?,A distinct,manageable group of products/services that,CONSUMERS,perceivetobeinterrelatedand/or substitutableinsatisfyingtheirneed(s).,Process,CategoryDefinition,-critical in determining theproductsthat makeupthe category andinestablishingthe segmentationstrategy.,What is aCategory?,A distinct,manageable group of products/services that,CONSUMERS,perceivetobeinterrelatedand/or substitutableinsatisfyingtheirneed(s).,Process,CategoryDefinition,-critical in determining theproductsthat makeupthe category andinestablishingthe segmentationstrategy.,Howdoesdefininga category help?,Producesbetterretailer/manufacturer alignmentwith theconsumer,Creates bettermanufacturer-retaileralignment,Givesnewperspectives on howtoview aproductand/orcategory,Process,Juices&drinks,Shelfstable,Refrigerated,Frozen,Glass/Plastic,Aseptic,ReadytoServe,Concentrate,CategorySub-CategorySegmentSub-Segment,Defininga Category by Usage Segment,LemonJuiceSegmentation,:,Source:Borden,Inc.,Process,CategoryRole,(orpurpose)defineshowthe consumer views thecategory.,PossibleCategoryRoles:,Destination,Convenience,Routine,Seasonal/Occasional,Process,CategoryAssessment,CategoryAssessment involves conductingacompleteanalysisofthe category by investigatingit,ssub-categories,user-segments,brands,andSKUs.Suchananalysismustbebasedon,current,consumer,distributor,supplier andmarketinformation.,Process,Oneexamplemightbeidentifyingthegap betweenthe currentsalesand thepotentialsalesofacategory.,Source:Borden,Inc.,Process,KeyQuestionsinConductinga,CategoryAssessment,Whoismytargetcustomer?,Howimportantisthiscategoryto,that,customer?,Whatarethecategorytrends?,volume,share,profits?,Whatarethekeyproductsegments?,WhataretheleastandmostimportantSKUs?,Process,KeyQuestionsinConductinga,CategoryAssessment(continued),HowwellisshelfspacealignedtoSKUmovement?,Howdoconsumersviewbrands?,Brandnamesversusstorebrands,Whentheymakeapurchase,Howlargeisit?Whatelsedotheybuy?,How does the category,s pricing compareto therest ofthe store?,Process,Key Questionsin Conductinga,Category Assessment(cont
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