《品类管理流程英文》PPT课件.ppt

CATEGORY MANAGEMENT 天马行空官方博客：/tmxk_docin ；QQ:1318241189；QQ群：175569632 Session Objectives: lDefine Category Management (CM) lDescribe Category Management as a Business Process lDiscuss 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 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 Category Management has expanding into durable goods and services. Is Category Management just for the grocer? lDurable Goods lAuto Industry - GM Pontiac & Ford lService Industry lPhone Service lFinancial Services/Banks Definition The ECR System Timely, accurate, paperless information flow SupplierDistributor 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 EnablersEnablers CATEGORY MANAGEMENT: HOW IS IT DIFFERENT? lCategory/Brand/SKU Management under one Decision Maker lConsumer-Focused Strategies lData-based Decision Making lProactive Business Planning lCollaborative Work Process lManage Category As Business Unit lFocused on Category ROI - NOT Sales or Gross Margin Definition SKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENT lData analysis and technical mastery lShopper and consumer understanding lStrategy development lFinancial and logistics expertise lInnovation lTotal Systems Focus Definition Definition Why is it beneficial for Retailers and Manufacturers to Invest in Category Management? Helps Retailers - l Define customer needs l Determine strategic issues l Enhance category and store profits Definition Why is it beneficial for Retailers and Manufacturers to Invest in Category Management? Helps Retailers - l Define customer needs l Determine strategic issues l Enhance category and store profits Helps Manufacturers - l Position themselves as category captains for retailers l Become an indispensable resource for the retailer l 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? lProduces better retailer/manufacturer alignment with the consumer lCreates better manufacturer-retailer alignment lGives new perspectives on how to view a product and/or category Process Juices & drinksShelf 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. ProcessCategory Role (or purpose) defines how the consumer views the category. Possible Category Roles: l Destination l Convenience l Routine l 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. ProcessKey Questions in Conducting a Category Assessment l Who is my target customer? l How important is this category to that customer? l What are the category trends? volume, share, profits? l What are the key product segments? l What are the least and most important SKUs? ProcessKey Questions in Conducting a Category Assessment (continued) l How well is shelf space aligned to SKU movement? l How do consumers view brands? Brand names versus store brands l When they make a purchase, How large is it? What else do they buy? l How does the categorys pricing compare to the rest of the store? ProcessKey Questions in Conducting a Category Assessment (continued) l How does the categorys pricing compare to the market? l What percentage of volume is sold on promotion? l What is the impact of featuring and display? l 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. l Transaction Efficiency/Traffic Builder l Shopping/Information l 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: l Common Language l Buy-in at ALL levels l Clear Approval Process l Clear Assignment of Responsibilities l Implementation Schedule l 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: l Opportunity and discovery process l Input, analysis & implementation l 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. lFundamental principles and processes. lImplementation depends upon the capabilities and current practices of the organizations. lTodays practices are tomorrows foundations for improvement. Issues Successful Category Management helps to define a partnership. lAbility and commitment to develop the category lA vision of the potential of the category lAdequate information technology capability and sharing information lMultifunctional team support capabilities lBuy-in from top management lClearly defines the role of the manufacturer with regard to Category Management lTrust Issues How to develop a successful Category Management relationship. Develop a common language for Category Management lTranslate the goals of the partnership into a usable and measurable plan the utilizes fact-based CM decisions and practices. lEducate everyone involved, buyers and suppliers, on the approach being taken for growing the category. lDevelop fact-based presentations representing the entire category. lDevelop a system of regular reports