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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,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,Session Objectives:Define Cate,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,DefinitionBringing Better Valu,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,Category Management has expand,The ECR System,Timely,accurate,paperless information flow,Supplier,Distributor,Retail,Store,Consumer,Household,Smooth,continual product flow matched to consumption,Definition,The ECR SystemTimely,accurate,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,Efficient PromotionEfficient S,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 as a Busin,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,CATEGORY MANAGEMENT:HOW IS,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,SKILLS NEEDED TO BUILD BUSINES,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,DefinitionWhy is it beneficial,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,DefinitionWhy is it beneficial,Road Map,Category Management as a Business Process,Category Management Issues,Define Category Management,Road MapCategory Management as,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,ProcessCategory Management as,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?ProcessCate,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,What is a Category?ProcessCate,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.,ProcessJuices&drinksShelf st,Process,Category Role,(or purpose)defines how the consumer views the category.,Possible Category Roles:,Destination,Convenience,Routine,Seasonal/Occasional,ProcessCategory Role(or purpo,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,consu
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