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Retail Category Management Basics
 

Retail Category Management Basics

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Category Management Basics

Category Management Basics

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    Retail Category Management Basics Retail Category Management Basics Presentation Transcript

    • 09/02/09
      • Amit Kumar –Business Development Partner
    • CATEGORY MANAGEMENT INVOLVES BUILDING A BUSINESS PLAN AROUND THE 4 P’S PROMOTING PRODUCTS PRICING PLACEMENT
    • Objectives
      • Review Objectives & Agenda
      • Category Management Overview
        • Why Category Management?
        • What is Category Management?
      • Implementing Category Management
        • Core Components
          • Strategy
          • Business Process
      09/02/09
    • Agenda -- Continued
        • Enabling Components
          • Organizational Capability
          • Information Technology
          • Collaborative Relationships
          • Scorecard
        • Benefits of Category Management
      09/02/09
    • Agenda -- Continued
      • The Strategic Category Business Process
        • Corporate Strategy
        • Category Definition
        • Category Role
        • Category Assessment
          • Assessment Worksheets
        • Category Profitability
      09/02/09
    • Agenda -- Continued
      • Category Management Strategies
      • Category Management Tactics
        • Assortment Tactics
          • Assortment Choices
          • Category Role Linkage
          • Assortment Analysis
          • Assortment Assessment Worksheets
      09/02/09
    • Agenda -- Continued
        • Pricing Tactics
          • Pricing Choices
          • Category Role Linkage
          • Pricing Analysis
          • Pricing Assessment Worksheets
        • Promotion Tactics
          • Promotion Choices
          • Category Role Linkage
          • Promotion Analysis
          • Promotion Assessment Worksheets
      09/02/09
    • Agenda -- Continued
        • Shelf Presentation Tactics
          • Shelf Presentation Choices
          • Category Role Linkage
          • Shelf Presentation Analysis
          • Shelf Presentation Assessment Worksheets
      • Integration Into Strategic Category Plan
        • Strategic Category Planning Worksheets
      09/02/09
    • Why Category Management?
      • Consumer Trends
        • Complex consumer demographics
        • Population growth rates have declined
      • Competitive Pressure
        • New store formats
          • Warehouse clubs & mass merchandisers
        • New product introductions
      09/02/09
    • Why Category Management? -- Continued
      • Economic Considerations
        • Slow growth economy & low interest rates
          • Companies pressured to improve financial performance
      • Industry Capability
        • Shared business goals -- Focus on Consumer
          • Shifting from internal optimization to maximizing consumer value
        • Trading Partner Alliances
          • Leveraging of resources between trading partners
      09/02/09
    • Why Category Management? -- Continued
      • Empowerment
        • Authority & accountability to front-line managers
          • Pricing
          • Procurement
          • Promotion
      • Information Technology
        • Distributors & Suppliers share data
      09/02/09
    • Category Management & ECR
      • ECR (Efficient Consumer Response) creates an environment and tools which enable the distributor & supplier trading partners to work collaboratively to deliver superior value on the products and services they offer consumers
      09/02/09
    • Category Management & ECR -- Continued
      • Category Management key component of ECR
        • Provides strategic framework, business process and organizational framework within which collaboration takes place
        • Profound impact on each of the four ECR strategies
          • Efficient promotion
          • Efficient Replenishment
          • Efficient Product Introductions
          • Efficient Store Assortments
      09/02/09
    • Definition
      • Category Management is a distributor/supplier process of managing categories as strategic business units, producing enhanced business results by focusing on delivering consumer value.
      09/02/09
    • Basic Principles of Category Management
      • Categories are managed as strategic business units
      • Categories are managed strategically through category plans and strategic roles
      • Category Managers control their share of company assets
      • Asset Returns measure performance and establish priorities
      09/02/09
    • Basic Principles of Category Management -- Continued
      • Responsibility for category performance/ownership is clearly defined and not fragmented across organization
      • Category Management leverages distributor and supplier expertise for mutual benefit … neither party can do the job alone
      09/02/09
    • Six Components of Category Management
      • Core Components (essential)
        • Strategy
        • Business Process
      • Enabling Components (assisting)
        • Scorecard
        • Organization Capability
        • Information Technology
        • Collaborative Relationships
      09/02/09
    • Strategy
      • Categories are strategic business units
      • Overall company strategies provide a infrastructure for category level strategies
      • Strategies must be clearly understood throughout the Retailer’s organization
      09/02/09
    • Business Process
      • A formal, disciplined set of activities designed to produce a specified output
        • Development and implementation of Written Category Business Plans
      09/02/09
    • Scorecard
      • A tools that defines, measures and monitors the progress of Category Business Plans
      09/02/09
    • Organizational Capability
      • Development of the organization’s core competency
        • Through organizational structure
        • Roles/Responsibilities
        • Skill/Knowledge development
        • Reward Systems
      09/02/09
    • Information Technology
      • Critical elements of the Category Business Planning Process
        • Need data-driven, fact-based analysis and performance measurement
      09/02/09
    • Collaborative Relationships
      • Relationships with suppliers who acquire unique perspectives, resources and skills
      • Common objective -- delivering superior consumer value more profitability
      09/02/09
    • Distributor vs. Supplier (Overlap & Differentiation)
      • Supplier (Manufacturers & Brokers)
        • STRATEGY
        • INFO TECH
        • ORG. CAP.
        • SCORECARD
      • Distributor (Wholesalers & Retailers)
        • STRATEGY
        • INFO TECH
        • ORG. CAP.
        • SCORECARD
      09/02/09
    • Category Definition Category Role Category Assessment Category Scorecard Category Strategies Category Tactical Plans Implementation Plan Category Review The Strategic Planning Process CATEGORY MANAGEMENT PROCESS 09/02/09
    • Category Definition
      • The trading partners need to define the new category with a name
        • What is it?
        • What are the sub-categories?
      09/02/09
    • Category Role
      • The distributor (with supplier input) would define the overall role the selected category is going to play in the distributor’s total business
        • How important is the category?
        • How to leverage the importance?
      09/02/09
    • Category Role -- Components
      • Destination
        • To be the primary category provider and help define the retailer as the store of choice by delivering consistent , superior target consumer value
      • Routine
        • To be one of the preferred category providers and help develop the retailer as the store of choice by delivering consistent , competitive target consumer value
      09/02/09
    • Category Role -- Components Continued
      • Occasional/Seasonal
        • To be a major category provider, help reinforce the retailer as the store of choice by delivering frequent , competitive target consumer value
      • Convenience
        • To be a category provider and help reinforce the retailer as the store of choice by delivering good target consumer value
      09/02/09
    • Category Assessment
      • Comprised of accumulation of all appropriate consumer, distributor, supplier and competitor data for analysis relative to opportunities represented for the category chosen
        • How is the category doing?
        • Versus Potential? Versus Goals?
      09/02/09
    • Scorecard
      • Establishment of the performance measures by which the category manager will measure the quality of the execution of the plan
        • What are the goals & objectives?
        • How is the progress?
      09/02/09
    • Category Strategies
      • Assignment of specific strategies to key elements of the overall category
        • What is the business plan?
        • How will it achieve the role & scorecard?
      09/02/09
    • Category Strategy - Components
      • Traffic Building
        • Consumer Draw
      • Transaction Building
        • Increase the Register Ring
      • Profit Generating
        • Improve Category Gross Margin
      • Turf Protecting
        • Defend Sales and Share (other formats)
      09/02/09
    • Category Strategy -- Components Continued
      • Cash Generating
        • Increase Category Cash Flow
      • Excitement Creating
        • Generate Sense of Urgency & Opportunity
      • Image Enhancing
        • Reinforce Retailer’s Desired Image
      09/02/09
    • Category Tactics
      • Specific activities supporting the category strategies which would include item variety, everyday and feature price targets, shelf presentation, etc.
        • What do we do to achieve the strategy?
        • Who does what?
      09/02/09
    • Category Tactics -- Components
      • Assortment
      • Pricing
      • Promotion
      • Shelf Presentation
      • Product Supply
      09/02/09
    • Plan Implementation
      • Key Components of Plan Implementation
        • Approval Process
          • Strategic Fit
          • Scorecard Impact
          • Resource Allocation
          • Impact on Other Areas
        • Assigning Responsibilities
        • Scheduling
      09/02/09
    • Category Review
      • Ongoing review and measurement of the progress of the plan toward the category role and scorecard, and modification of the plan when appropriate
      09/02/09
    • Conclusion
      • The Staples & Grocery Retail industry is in a major state of transition. This change is a function of a complex mix of consumer, technological and market factors.
      • Category Management represents a business oriented approach to achieving business results -- both for distributors and suppliers
      09/02/09
    • Thank You Email- [email_address] ,joinhand2hand@gmail.com Website-http://hand2handsolutions.webs.com/index.htm Contact +91-9818995422,09785641086 Grow with Growing Industry 09/02/09