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CATEGORYMANAGEMENT SessionObjectives DefineCategoryManagement CM DescribeCategoryManagementasaBusinessProcessDiscussCriticalIssuesRelatedtoSuccessfullyDevelopingaCategoryManagementSystem CategoryManagementProcess CategoryManagementIssues DefineCategoryManagement Definition BringingBetterValuetotheConsumeristhePrimaryFocusofCategoryManagement ARetailer SupplierprocessofmanagingcategoriesasStrategicBusinessUnits producingimprovedsalesandprofitresultsbyfocusingonsatisfyingconsumerneedsanddeliveringconsumervalue Source ECRBestPracticesReport CategoryManagementhasexpandingintodurablegoodsandservices IsCategoryManagementjustforthegrocer DurableGoodsAutoIndustry GMPontiac FordServiceIndustryPhoneServiceFinancialServices Banks Definition TheECRSystem Timely accurate paperlessinformationflow Supplier Distributor RetailStore ConsumerHousehold Smooth continualproductflowmatchedtoconsumption Definition EfficientPromotion EfficientStoreAssortment Definition CategoryManagementisattheatthecoreofECR CMprovidesaprocess frameworkforcollaboration EfficientNewProductDevelopment EfficientReplenishment CATEGORYMANAGEMENT CategoryManagementasaBusinessProcessiscomprisedofinterrelatedcomponentsbothwithinandoutsideoftheorganization WhatisCategoryManagement Definition InformationTechnology Strategy BusinessProcess Scorecard CollaborativeRelationships OrganizationCapabilities Core Enablers Enablers CATEGORYMANAGEMENT HOWISITDIFFERENT Category Brand SKUManagementunderoneDecisionMakerConsumer FocusedStrategiesData basedDecisionMakingProactiveBusinessPlanningCollaborativeWorkProcessManageCategoryAsBusinessUnitFocusedonCategoryROI NOTSalesorGrossMargin Definition SKILLSNEEDEDTOBUILDBUSINESSTHROUGHCATEGORYMANAGEMENT DataanalysisandtechnicalmasteryShopperandconsumerunderstandingStrategydevelopmentFinancialandlogisticsexpertiseInnovationTotalSystemsFocus Definition Definition WhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement HelpsRetailers DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofits Definition WhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement HelpsRetailers DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofitsHelpsManufacturers PositionthemselvesascategorycaptainsforretailersBecomeanindispensableresourcefortheretailerEnhancebrandprofits RoadMap CategoryManagementasaBusinessProcess CategoryManagementIssues DefineCategoryManagement Process CategoryManagementasaBusinessProcess CategoryDefinition CategoryRole CategoryAssessment CategoryScorecard CategoryStrategies CategoryTactics PlanImplementation CategoryReview Source ThePartneringGroup WhatisaCategory Adistinct manageablegroupofproducts servicesthatCONSUMERSperceivetobeinterrelatedand orsubstitutableinsatisfyingtheirneed s Process CategoryDefinition criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy WhatisaCategory Adistinct manageablegroupofproducts servicesthatCONSUMERSperceivetobeinterrelatedand orsubstitutableinsatisfyingtheirneed s Process CategoryDefinition criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy Howdoesdefiningacategoryhelp Producesbetterretailer manufactureralignmentwiththeconsumerCreatesbettermanufacturer retaileralignmentGivesnewperspectivesonhowtoviewaproductand orcategory Process Juices drinks Shelfstable Refrigerated Frozen Glass Plastic Aseptic ReadytoServe Concentrate CategorySub CategorySegmentSub Segment DefiningaCategorybyUsageSegment LemonJuiceSegmentation Source Borden Inc Process CategoryRole orpurpose defineshowtheconsumerviewsthecategory PossibleCategoryRoles DestinationConvenienceRoutineSeasonal Occasional Process CategoryAssessment CategoryAssessmentinvolvesconductingacompleteanalysisofthecategorybyinvestigatingit ssub categories user segments brands andSKUs Suchananalysismustbebasedoncurrentconsumer distributor supplierandmarketinformation Process Oneexamplemightbeidentifyingthegapbetweenthecurrentsalesandthepotentialsalesofacategory Source Borden Inc Process KeyQuestionsinConductingaCategoryAssessment Whoismytargetcustomer Howimportantisthiscategorytothatcustomer Whatarethecategorytrends volume share profits Whatarethekeyproductsegments WhataretheleastandmostimportantSKUs Process KeyQuestionsinConductingaCategoryAssessment continued HowwellisshelfspacealignedtoSKUmovement Howdoconsumersviewbrands BrandnamesversusstorebrandsWhentheymakeapurchase Howlargeisit Whatelsedotheybuy Howdoesthecategory spricingcomparetotherestofthestore Process KeyQuestionsinConductingaCategoryAssessment continued Howdoesthecategory spricingcomparetothemarket Whatpercentageofvolumeissoldonpromotion Whatistheimpactoffeaturinganddisplay Whatbrandsandsizes define and orbuildthecategory Process TheCategoryScorecardmeasuresandmonitorstheprogressandperformanceofthecategorybusinessplan Targetsorhurdleratesmustbeclearlystated Revenue MarketShare Consumption Equiv Volume Out of stocks Profit TargetConsumerShare ROI Process CategoryStrategiesdefinethemarketing productsupply andinstoreservicerequiredtomeettargetsorhurdlerates TransactionEfficiency TrafficBuilderShopping InformationEntertainment Typesofstrategies Source RobertC Blattberg 1996 Process CategoryTacticsaretheactionstakentoimplementthecategorystrategies Transactionefficiency TrafficBuilder Lowprice convenience Categoryshop ability Source RobertC Blattberg 1996 Process CategoryTacticsaretheactionstakentoimplementthecategorystrategies Transactionefficiency TrafficBuilder Lowprice convenience Categoryshop abilityShopping information Uniqueofferings highservice Easyaccesstoproductinformation Source RobertC Blattberg 1996 Process CategoryTacticsaretheactionstakentoimplementthecategorystrategies Transactionefficiency TrafficBuilder Lowprice convenience Categoryshop abilityShopping information Uniqueofferings highservice EasyaccesstoproductinformationEntertainment Stimulation excitement Creativemarketing broadassortment Changingvarietyofproducts Source RobertC Blattberg 1996 Process Categorymanagementplansareoflittlevalueunlesstheyreceivehighqualityimplementation KeyComponentsofPlanImplementation CommonLanguageBuy inatALLlevelsClearApprovalProcessClearAssignmentofResponsibilitiesImplementationSchedulePredeterminedIndicatorsofSuccess Process CategoryReviewistheongoingmeasurementoftheprogressoftheplanandmodificationwherenecessary StagesofCategoryReview OpportunityanddiscoveryprocessInput analysis implementationMeasurement adjustment learning CATEGORYMANAGEMENT ReviewingtheCategory TargetingConsumers PlanningMerchandising ImplementingStrategy EvaluatingResults Process RoadMap CategoryManagementProcess CategoryManagementIssues CategoryManagementDefinition CategoryManagementisasourceofcompetitiveadvantage Ifitissoeasytodoandeveryoneisdoingit whereistheadvantage CategoryManagementisaboutstrategicchoices Thequalityoftheimplementationandexecutionwilldeterminethedegreeofcompetitiveadvantagegained Issues CategoryManagementisadynamic evolvingpractice Isthereoneapproach no Fundamentalprinciplesandprocesses Implementationdependsuponthecapabilitiesandcurrentpracticesoftheorganizations Today spracticesaretomorrow sfoundationsforimprovement Issues SuccessfulCategoryManagementhelpstodefineapartnership AbilityandcommitmenttodevelopthecategoryAvisionofthepotentialofthecategoryAdequateinformationtechnologycapabilityandsharinginformationMultifunctionalteamsupportcapabilitiesBuy infromtopmanagementClearlydefinestheroleofthemanufacturerwithregardtoCategoryManagementTrust Issues HowtodevelopasuccessfulCategoryManagementrelationship DevelopacommonlanguageforCategoryManagementTranslatethegoalsofthepartnershipintoausableandmeasurableplantheutilizesfact basedCMdecisionsandpractices Educateeveryoneinvolved buyersandsuppliers ontheapproachbeingtakenforgrowingthecategory Developfact basedpresentationsrepresentingtheentirecategory Developasystemofregul
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