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…
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…
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]
![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]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)