品类管理流程（英语版）(1)

1、CATEGORY MANAGEMENTSession Objectives:lDefine Category Management (CM)lDescribe Category Management as a Business ProcesslDiscuss Critical Issues Related to Successfully Developing a Category Management System Category Management ProcessCategory Management IssuesDefine Category ManagementDefinitionB

2、ringing 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 Practi

3、ces ReportCategory Management has expanding into durable goods and services.Is Category Management just for the grocer?lDurable GoodslAuto Industry - GM Pontiac & FordlService IndustrylPhone ServicelFinancial Services/BanksDefinitionThe ECR SystemTimely, accurate, paperless information flowSuppl

4、ierDistributorRetailStoreConsumerHouseholdSmooth, continual product flow matched to consumptionDefinitionEfficient PromotionEfficient Store AssortmentDefinitionCategory Management is at the at the core of ECR. CM provides a process & framework for collaboration.Efficient New Product DevelopmentE

5、fficient ReplenishmentCATEGORYMANAGEMENTCategory Management as a Business Process is comprised of interrelated components both within and outside of the organization.What is Category Management?DefinitionInformationTechnologyStrategy&Business ProcessScorecardCollaborativeRelationshipsOrganizatio

6、nCapabilitiesCoreEnablersEnablersCATEGORY MANAGEMENT: HOW IS IT DIFFERENT?lCategory/Brand/SKU Management under one Decision MakerlConsumer-Focused StrategieslData-based Decision MakinglProactive Business PlanninglCollaborative Work ProcesslManage Category As Business UnitlFocused on Category ROI - N

7、OT Sales or Gross MarginDefinitionSKILLS NEEDED TO BUILD BUSINESS THROUGH CATEGORY MANAGEMENTlData analysis and technical masterylShopper and consumer understandinglStrategy developmentlFinancial and logistics expertiselInnovationlTotal Systems FocusDefinitionDefinitionWhy is it beneficial for Retai

8、lers and Manufacturers to Invest in Category Management?Helps Retailers -l Define customer needsl Determine strategic issuesl Enhance category and store profitsDefinitionWhy is it beneficial for Retailers and Manufacturers to Invest in Category Management?Helps Retailers -l Define customer needsl De

9、termine strategic issuesl Enhance category and store profitsHelps Manufacturers -l Position themselves as category captains for retailersl Become an indispensable resource for the retailerl Enhance brand profitsRoad MapCategory Management as a Business ProcessCategory Management IssuesDefine Categor

10、y ManagementProcessCategory Management as a Business Process.Category DefinitionCategory RoleCategory AssessmentCategory ScorecardCategory StrategiesCategory TacticsPlan ImplementationCategory ReviewSource: The Partnering GroupWhat is a Category?A distinct, manageable group of products/services that

11、 CONSUMERS perceive to be interrelated and/or substitutable in satisfying their need(s).ProcessCategory 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

12、CONSUMERS perceive to be interrelated and/or substitutable in satisfying their need(s).ProcessCategory 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 al

13、ignment with the consumerlCreates better manufacturer-retailer alignmentlGives new perspectives on how to view a product and/or categoryProcessJuices & drinksShelf stableRefrigeratedFrozenGlass/PlasticAsepticReady to ServeConcentrateCategory Sub-Category Segment Sub-Segment Defining a Category b

14、y Usage SegmentLemon Juice Segmentation:Source: Borden, Inc.ProcessCategory Role (or purpose) defines how the consumer views the category.Possible Category Roles:l Destinationl Conveniencel Routinel Seasonal/OccasionalProcessCategory AssessmentCategory Assessment involves conducting a complete analy

15、sis 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.ProcessOne example might be identifying the gap between the current sales and the potential sales of a category.C

16、ategory: CandyMarket: ColumbusStore: KrogerTotal Dollar Sales - Columbus Market$1,000,000Total Dollar Sales - Kroger Columbus$150,000Kroger Market Share - Total Groceries20%Kroger Market Share - Candy15%Gap (%)5%Gap ($)$50,000 Source: Borden, Inc.ProcessKey Questions in Conducting a Category Assessm

17、entl 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 sh

18、elf space aligned to SKU movement?l How do consumers view brands?Brand names versus store brandsl 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 H

19、ow does the categorys pricing compare to the market?l What percentage of volume is soldon promotion?l What is the impact of featuring anddisplay?l What brands and sizes “define” and/or build the category?ProcessThe Category Scorecard measures and monitors the progress and performance of the category

20、 business plan. Targets or hurdle rates must be clearly stated.THE CA TEGORY SCORECA RDSalesSystem s C ostProfitReturnTargetTargetM arketC onsum ption/M arketC onsum erC onsum erReturnRevenueShare ($)Equiv. M easureShare (U)Share ($)Share (U)Service LevelProfiton Assetssku 1asku 1bsku 1cBrand 1sku 1

21、asku 1bsku 1cBrand 2sku 1asku 1bsku 1cBrand 3sku 1asku 1bsku 1cBrand 4Private LabelPrem ium TierPrice TierLiquidPow derC ategory TotalRevenueMarket ShareConsumption (Equiv. Volume)Out-of-stocksProfit Target Consumer ShareROIProcessCategory Strategies define the marketing, product supply, and in stor

22、e service required to meet targets or hurdle rates.l Transaction Efficiency/Traffic Builderl Shopping/Informationl EntertainmentTypes of strategies:Source: Robert C. Blattberg, 1996ProcessCategory Tactics are the actions taken to implement the category strategies.Transaction efficiency/Traffic Build

23、er Low price/convenience Category shop-abilitySource: Robert C. Blattberg, 1996ProcessCategory 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

24、 access to product informationSource: Robert C. Blattberg, 1996ProcessCategory 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 produ

25、ct information Entertainment Stimulation/excitement Creative marketing/broad assortment Changing variety of products Source: Robert C. Blattberg, 1996ProcessCategory management plans are of little value unless they receive high quality implementation.Key Components of Plan Implementation:l Common La

26、nguagel Buy-in at ALL levelsl Clear Approval Processl Clear Assignment of Responsibilitiesl Implementation Schedulel Predetermined Indicators of SuccessProcessCategory Review is the ongoing measurement of the progress of the plan and modification where necessary.Stages of Category Review:l Opportuni

27、ty and discovery processl Input, analysis & implementationl Measurement, adjustment & learningCATEGORY MANAGEMENTReviewing the CategoryTargeting ConsumersPlanning MerchandisingImplementing StrategyEvaluating ResultsProcessRoad MapCategory Management ProcessCategory Management IssuesCategory

28、Management DefinitionCategory 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 ga

29、ined.IssuesCategory 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.IssuesSuccessful Categor

30、y Management helps to define a partnership.lAbility and commitment to develop the categorylA vision of the potential of the categorylAdequate information technology capability andsharing informationlMultifunctional team support capabilitieslBuy-in from top managementlClearly defines the role of the

31、manufacturer with regard to Category ManagementlTrustIssuesHow to develop a successful Category Management relationship.Develop a common language for Category ManagementlTranslate 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 en