品类管理流程

品类管理流程第1页/共38页DefinitionBringingBetterValuetotheConsumeristhe

PrimaryFocusofCategoryManagement.“ARetailer-SupplierprocessofmanagingcategoriesasStrategicBusinessUnits,producingimprovedsalesandprofitresultsbyfocusingonsatisfyingconsumerneeds

anddeliveringconsumervalue.”Source:ECRBestPracticesReport第2页/共38页CategoryManagementhasexpandingintodurablegoodsandservices.IsCategoryManagementjustforthegrocer? DurableGoodsAutoIndustry-GMPontiac&Ford ServiceIndustryPhoneServiceFinancialServices/BanksDefinition第3页/共38页TheECRSystemTimely,accurate,paperlessinformationflowSupplierDistributorRetailStoreConsumerHouseholdSmooth,continualproductflowmatchedtoconsumptionDefinition第4页/共38页EfficientPromotionEfficientStoreAssortmentDefinitionCategoryManagementisattheatthecoreofECR.CMprovidesaprocess&frameworkforcollaboration.EfficientNewProductDevelopmentEfficientReplenishmentCATEGORYMANAGEMENT第5页/共38页CategoryManagementasaBusinessProcessiscomprisedofinterrelatedcomponentsbothwithinandoutsideoftheorganization.WhatisCategoryManagement?DefinitionInformationTechnologyStrategy&BusinessProcessScorecardCollaborativeRelationshipsOrganizationCapabilitiesCoreEnablersEnablers第6页/共38页CATEGORYMANAGEMENT:

HOWISITDIFFERENT?Category/Brand/SKUManagementunderoneDecisionMakerConsumer-FocusedStrategiesData-basedDecisionMakingProactiveBusinessPlanningCollaborativeWorkProcessManageCategoryAsBusinessUnitFocusedonCategoryROI -NOTSalesorGrossMarginDefinition第7页/共38页SKILLSNEEDEDTOBUILDBUSINESSTHROUGHCATEGORYMANAGEMENTDataanalysisandtechnicalmasteryShopperandconsumerunderstandingStrategydevelopmentFinancialandlogisticsexpertiseInnovationTotalSystemsFocusDefinition第8页/共38页DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofits第9页/共38页DefinitionWhyisitbeneficialforRetailersandManufacturerstoInvestinCategoryManagement?HelpsRetailers-DefinecustomerneedsDeterminestrategicissuesEnhancecategoryandstoreprofitsHelpsManufacturers-PositionthemselvesascategorycaptainsforretailersBecomeanindispensableresourcefortheretailerEnhancebrandprofits第10页/共38页RoadMapCategoryManagementasaBusinessProcessCategoryManagementIssuesDefineCategoryManagement第11页/共38页ProcessCategoryManagementasaBusinessProcess.CategoryDefinitionCategoryRoleCategoryAssessmentCategoryScorecardCategoryStrategiesCategoryTacticsPlanImplementationCategoryReviewSource:ThePartneringGroup第12页/共38页WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy.第13页/共38页WhatisaCategory?Adistinct,manageablegroupofproducts/servicesthatCONSUMERSperceivetobeinterrelatedand/orsubstitutableinsatisfyingtheirneed(s).ProcessCategoryDefinition-criticalindeterminingtheproductsthatmakeupthecategoryandinestablishingthesegmentationstrategy.Howdoesdefiningacategoryhelp?Producesbetterretailer/manufactureralignmentwiththeconsumerCreatesbettermanufacturer-retaileralignmentGivesnewperspectivesonhowtoviewaproductand/orcategory第14页/共38页ProcessJuices&drinksShelfstableRefrigeratedFrozenGlass/PlasticAsepticReadytoServeConcentrateCategorySub-CategorySegment Sub-SegmentDefiningaCategorybyUsageSegmentLemonJuiceSegmentation:Source:Borden,Inc.第15页/共38页ProcessCategoryRole(orpurpose)defineshowtheconsumerviewsthecategory.PossibleCategoryRoles:

DestinationConvenienceRoutine

Seasonal/Occasional第16页/共38页ProcessCategoryAssessmentCategoryAssessmentinvolvesconductingacompleteanalysisofthecategorybyinvestigatingit’ssub-categories,user-segments,brands,andSKUs.Suchananalysismustbebasedoncurrentconsumer,distributor,supplierandmarketinformation.第17页/共38页ProcessOneexamplemightbeidentifyingthegapbetweenthecurrentsalesandthepotentialsalesofacategory.Source:Borden,Inc.第18页/共38页ProcessKeyQuestionsinConductingaCategoryAssessment

Whoismytargetcustomer?Howimportantisthis categorytothatcustomer?Whatarethecategorytrends?

volume,share,profits?Whatarethekeyproductsegments?Whataretheleastandmost importantSKUs?第19页/共38页ProcessKeyQuestionsinConductingaCategoryAssessment(continued)

Howwellisshelfspacealignedto SKUmovement?Howdoconsumersviewbrands? BrandnamesversusstorebrandsWhentheymakeapurchase, Howlargeisit? Whatelsedotheybuy?Howdoesthecategory’spricing comparetotherestofthestore?第20页/共38页ProcessKeyQuestionsinConductingaCategoryAssessment(continued)

Howdoesthecategory’spricing comparetothemarket?Whatpercentageofvolumeissold onpromotion?Whatistheimpactoffeaturingand display?Whatbrandsandsizes“define” and/orbuildthecategory?第21页/共38页ProcessTheCategoryScorecardmeasuresandmonitorstheprogressandperformanceofthecategorybusinessplan.Targetsorhurdleratesmustbeclearlystated.RevenueMarketShareConsumption(Equiv.Volume)Out-of-stocksProfit

TargetConsumerShareROI第22页/共38页ProcessCategoryStrategiesdefinethemarketing,productsupply,andinstoreservicerequiredtomeettargetsorhurdlerates.

TransactionEfficiency/TrafficBuilderShopping/InformationEntertainment Typesofstrategies:Source:RobertC.Blattberg,1996第23页/共38页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-abilitySource:RobertC.Blattberg,1996第24页/共38页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-ability

Shopping/information

>Uniqueofferings/highservice >EasyaccesstoproductinformationSource:RobertC.Blattberg,1996第25页/共38页ProcessCategoryTacticsaretheactionstakentoimplementthecategorystrategies.Transactionefficiency/TrafficBuilder

>Lowprice/convenience >Categoryshop-ability

Shopping/information

>Uniqueofferings/highservice >Easyaccesstoproductinformation

Entertainment

>Stimulation/excitement >Creativemarketing/broadassortment>Changingvarietyofproducts

Source:RobertC.Blattberg,1996第26页/共38页ProcessCategorymanagementplansareoflittlevalueunlesstheyreceivehighqualityimplementation.KeyComponentsofPlanImplementation:

CommonLanguageBuy-inatALLlevelsClearApprovalProcessClearAssignmentofResponsibilitiesImplementationSchedulePredeterminedIndicatorsofSuccess第27页/共38页ProcessCategoryReviewistheongoingmeasurementoftheprogressoftheplanandmodificationwherenecessary.StagesofCategoryReview:

OpportunityanddiscoveryprocessInput,analysis&implementationMeasurement,adjustment&learning第28页/共38页CATEGORYMANAGEMENTReviewingtheCategoryTargetingConsumersPlanningMerchandisingImplementingStrategyEvaluatingResultsProcess第29页/共38页RoadMapCategoryManagementProcessCategoryManagementIssuesCategoryManagementDefinition第30页/共38页CategoryManagementisasourceofcompetitiveadvantage.

Ifitissoeasytodoandeveryoneisdoingit, whereistheadvantage?CategoryManagementisaboutstrategic

choices.Thequalityoftheimplementationandexecutionwilldeterminethedegreeofcompetitiveadvantagegained.Issues第31页/共38页CategoryManagementisadynamic,evolvingpractice.Isthereoneapproach?…no.Fundamentalprinciplesandprocesses.Implementationdependsuponthecapabilitiesandcurrentpracticesoftheorganizations.Today’spracticesaretomorrow’sfoundationsforimprovement.Issues第32页/共38页

SuccessfulCategoryManagement

helpstodefineapartnership.AbilityandcommitmenttodevelopthecategoryAvisionofthepotentialofthecategoryAdequateinformationtechnologycapabilityand sharinginformationMultifunctionalteamsupportcapabilitiesBuy-infromtopmanagementClearlydefinestheroleofthemanufacturerwithregardtoCategoryManagementTrustIssues第33页/共38页

HowtodevelopasuccessfulCategoryManagementrelationship.DevelopacommonlanguageforCategoryManagementTranslatethegoalsofthepartnershipintoausableandmeasurableplantheutilizesfact-basedCMdecisionsandpractices.Educateeveryoneinvolved,buyersandsuppliers,ontheapproachbeingtakenforgrowingthecategory.Developfact-basedpresentationsrepresentingtheentirecategory.Developasystemofregularreportsandmonitoringforcatchingcategorytrendsand