Your SlideShare is downloading. ×
The essence of category management
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

The essence of category management

1,099
views

Published on


0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,099
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
157
Comments
0
Likes
6
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. CATEGORY VISION The Essence of Category Management Ben Thompson, Category Leadership Director, UK Petcare
  • 2. Definition “Category Management is the strategic management of product groups through trade partnerships, which aims to maximise sales and profit by satisfying shopper and consumer needs.” [Source : IGD]
  • 3. To lead the category growth agenda in Petcare based on deep shopper and consumer insights, and to effectively align our customers strategies and our own… Our Mission…
  • 4. The difference between Category Management and Category Leadership Category Management is doing the very best with what we’ve got…. Category Leadership is thinking through what we should have in the first place. In UK Petcare we aim to do both…
  • 5. Category Management is about… • Help Customers manage ranges more effectively • Growing or protecting our share of the shelf in line with sales • Taking an objective look at the category and making clear recommendations based on sold fact and insight • A 6-12 month time horizon • Key Skills: Customer Relationship Management, Shopper Data Analysis, up-to-date Tools and Systems – delivered through Great People. X-axis Median (ROS): 6034 Y-axis Median (WD): 28 Mars Market Mars Market nb. of SKUs 0 30 16 41 % of SKUs* 0% 21% 53% 29% K€ Sales 0 29,329 50,202 122,566 % of Sales* 0% 16% 82% 66% nb. of SKUs 4 40 10 30 % of SKUs* 13% 28% 33% 21% K€ Sales 815 10,641 9,912 23,863 % of Sales* 1% 6% 16% 13% MOS measure 5.1: * = % of all SKUs/Sales of selected Manufacturer or Market PQA Index SKU: 106% PQA Index Sales: 101% SleepingBeauties Blockbuster LameDucks WeakeningCore PQA Proteus range planner
  • 6. Category Leadership is about… • Defining the Category and its Drivers • Understanding the Category Segmentation • Developing and selling-in the Point of Purchase Vision which drives growth for Mars and Retailers. • A 3-4 year time horizon • Key Skills: Category and Retailer knowledge, Marketing understanding, familiarity with and access to Shopper Data & Insights The Mars Vision for PetcareOpportunities for Growth over the next 3 years
  • 7. The voice of the Retailer in Mars… Drive the Agenda on Petcare Eg Category Vision Brand / Shelf Executions Shopper Analysis & Execution Drive the Retailer Agenda in Mars Eg Packaging Waste Range optimisation “Less is more” Shopper tailoring The voice of Mars in the Retailers…
  • 8. What do our Customers want from Category?
  • 9. Right firstRight first time Admintime Admin PerfectPerfect OrderOrder Customer &Customer & ConsumerConsumer friendlyfriendly packagingpackaging Help myHelp my AvailabilityAvailability Add Category Value Add Category Value Add Value to their people Add Value to their people Add Value to their business Add Value to their business Help me if itHelp me if it goes wronggoes wrong Grow myGrow my footfallfootfall Grow myGrow my MarginMargin Grow myGrow my CategoryCategory EducateEducate meme Make meMake me look goodlook good Help ourHelp our whole businesswhole business All this has to be BUILT ON THE BASICS…
  • 10. Get it right, and we grow the pie (and our share)…
  • 11. Category leadership is a critical part of strategic Customer Engagement… A best in class supplier must have a shopper focused growth agenda, understand the operational and commercial model of the retailer , have the ability to adapt quickly to changing market conditions and help us to differentiate. Its approach is fact-driven as opposed to brand-driven. Senior Trading Executive , Tesco The resources that Mars Petcare have in category development are completely dedicated to our company, and it is very far removed from the commercial aspect. We feel comfortable that we are being provided by Mars Petcare's personnel with information that is solely about category and not twisted a bit towards the brand that they work for. Senior Trader, ASDA
  • 12. Which are the five most important capabilities which you expect your branded suppliers to display as a basic requirement? 44% 72% 76% 80% 44% Source: IGD Customer Engagement Retailer Survey 2009 Teams who understand our company’s strategic direction In-depth understanding of the total category and its future trends Consistently high service levels that meet our expectations Understand our economic model and KPIs Dedicated resource for managing our business Category leadership is a critical part of strategic Customer Engagement…
  • 13. Store of the Future – Sainsbury’s 2007 (London Colney) Some great examples of this…`
  • 14. Store Trials (POS for Permanent Multibuys) – Asda 2008 Some great examples of this…`
  • 15. Leading Edge Reporting of Range Review Implementation Tesco 2008 Internet Access for all Tesco and Mars Pet Associates In real time! Some great examples of this…`
  • 16. Whiskas vs Felix 60:40 Space 1 Bay of Whiskas Core Pouch 2for £6 (with POS) Driving Tesco’s Market Share Tesco JBP 2009
  • 17. Store Footprint Store of the Future – Tesco 2009 (Chesterfield) The learnings / store concept is being rolled out to Tesco Stores In Central Europe within 2010 (Hypermarkets Division)
  • 18. Our Journey… (Rank of 3) All Functions (1) All Functions All Functions EX/SM/CM EX/SM/CM EX/SM/CM IL IL 1 Mars Petcare UK 1 1 2 1 2 1 1 2 Nestlé Purina (Pet Care) 2 2 1 2 1 2 2 3 Procter & Gamble (Pet Care) 3 3 3 3 3 3 3 Performance based on Net Favourable rank * Indicates insufficient response (1) As rated by EX/SM = Executive/Senior Trading Management, CM = Trading/Category Management, IL = Inventory/Supply Chain Management Overall Performance Logistics & Supply Chain Mgmt. Customer Service/ Support Brand/ Consumer Marketing Trade Marketing/ Promotion Practices Category Development / Support Manufacturer Business Relationship & Support Manufacturer Personnel Top Third Rank Middle Third Rank Lower Third Rank (Rank of 3) All Functions (1) All Functions All Functions EX/SM/CM EX/SM/CM EX/SM/CM IL IL 1 Mars Petcare 1 1 1 1 1 3 3 1 Nestlé Purina 2 2 2 2 2 1 1 3 Procter & Gamble (Pet Care) 3 3 3 3 3 2 2 Performance based on Net Favourable rank * Indicates insufficient response (1) As rated by EX/SM = Executive/Senior Trading Management, CM = Trading/Category Management, IL = Inventory/Supply Chain Management Overall Performance Logistics & Supply Chain Mgmt. Customer Service/ Support Brand/ Consumer Marketing Trade Marketing/ Promotion Practices Category Development / Support Manufacturer Business Relationship & Support Manufacturer Personnel Top Third Rank Middle Third Rank Lower Third Rank 2007 2008 2009
  • 19. Benchmarking vs. the Best in Class (Rank of 7) All Functions (1) All Functions All Functions EX/SM/CM EX/SM/CM EX/SM/CM IL IL 1 Kellogg's 1 1 1 1 1 2 2 2 Coca-Cola 2 2 2 2 2 1 1 3 Nestle Beverages 3 3 5 5 4 3 3 4 PepsiCo/Walkers 4 5 4 3 3 5 6 5 Mars Petcare 5 4 3 4 5 7 7 5 Nestlé Purina 6 6 6 6 6 4 4 7 Procter & Gamble (Pet Care) 7 7 7 7 7 5 5 Performance based on Net Favourable rank * Indicates insufficient response (1) As rated by EX/SM = Executive/Senior Trading Management, CM = Trading/Category Management, IL = Inventory/Supply Chain Management Overall Performance Logistics & Supply Chain Mgmt. Customer Service/ Support Brand/ Consumer Marketing Trade Marketing/ Promotion Practices Category Development / Support Manufacturer Business Relationship & Support Manufacturer Personnel Top Third Rank Middle Third Rank Lower Third Rank 2008 2009
  • 20. Industry Recognition Asda Supplier of the Year 2006 Category Management Tesco Value Award Pet Range Review 2008 Supplier of the Year 2006 & 2007 Today’s Wholesale
  • 21. Industry Recognition Shelley Alford Tesco Value Award 2009 Asda Branded Supplier of the Year 2009 James Stewart Bestway Certificate in Merit 2009 Tesco Supplier of the Year 2009 (Grocery 1)
  • 22. Summary “Category Management and Category Leadership are fundamental business KPIs. They guide our business decisions, shape and inform our relationships with Customers, and enhance the experience of our Shoppers and ultimately Consumers” [Source : BT]
  • 23. CATEGORY VISION The Essence of Category Management Ben Thompson, Category Leadership Director, UK Petcare