A merchant's guide to the steps that should be followed to build a merchandise category financial strategic plan. Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail

1. BUILDING THE
CATEGORY STRATEGY
Joan Braatz, VP Merchandising

2. BUILDING THE
CATEGORY
STRATEGY
M e r c h a n d i s e A c t i o n
T e a m D i s c u s s i o n
• Building Category Strategy 2

3. WHAT IS A CATEGORY
STRATEGY?
• Formalized Financial Target by Category
• Defines Optimal Category Performance
• Maximize Net Sales + Gross Margin
• Optimize ROI Inventory
• Contributes to Company Goals
• Consideration of Category Role & Intent
• Guidance to Sourcing Own Brands
• Aligned with Customer Profile and Consumer
Decision Tree
3
• Building Category Strategy

4. 4
SWOT VS. STRATEGY VS. INITIATIVE
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• Building Category Strategy

5. WHAT IS NOT A CATEGORY
STRATEGY?
• Building Category Strategy
5
• SWOT
• Initiatives or Tactics
• Vendor influenced goals
• ‘Tops Down’ Strategy from leadership

6. 6 STEPS TO
CREATING
CATEGORY
STRATEGY
• Building Category Strategy 6

7. STEP 1: KEEP CUSTOMER 1ST
B e g i n w i t h c u s t o m e r i n m i n d
• Define Category Role
• Destination (trip driver)
• Routine
• Convenience (basket builder)
• Seasonal
• Consider the Consumer Decision Tree
• Understand consumer buying habits
• POG Product Placement
• Good, Better, Best
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• Building Category Strategy

8. STEP 2: CATEGORY
DIAGNOSTICS
L e v e r a g e d a t a
• Assess the performance of the Category
• Analysis of Business Trend: Sales, Margin,
Turn, Receipts
• Channel Delineation: Store, Digital,
Ecommerce
• SWOT
• Develop Cost Profile
• Prescribe Price Elasticity
• Define Promotional Strategy
• Building Category Strategy
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9. STEP 3: MARKET RESEARCH
C a t e g o r y M a r k e t p l a c e
• Outline Supplier Baseline
• Assess Own Brand Contribution
• Define Vendor Matrix (national, exclusive,
proprietary)
• Master the Marketplace
• Scrutinize Market Share Data (Nielson, NPD, Kline)
• Study Competition
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• Building Category Strategy

10. STEP 5: DEFINE
CATEGORY STRATEGY
• Define the Goal “the what”
• Overarching Merchant
Vision of Category
• Fiscal Targets Defined by
QTR / Half / Year
• Win, Lose, Draw
• Generate Gross Profit
• Inventory Productivity
• Execute “the how & the who”
• Plan Smaller Steps Shorter
Timeframes
• Measurable Actions Drive to
Category Goals
• Distinct Resource Allocation
• State Operational Excellence
• Contingency / Scenario Planning
• Building Category Strategy 10
STEP 6: STATE
CATEGORY INITIATIVES

11. CATEGORY MANAGEMENT
I n - s e a s o n m e a s u r e m e n t
• Execute the Plan
 Deploy Strategy to Drive Results
 Set Milestones for Measurement
 Perform with Precision
 Optimize Operational Excellence
 Define “go, no go” on Contingency Plans
• Monitor KPI’s
• Leverage Milestone Meetings
• Building Category Strategy
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12. COMMUNICATE PERFORMANCE
F r e q u e n t l y R e p o r t U p d a t e s :
• Leadership
• MAT Meetings
• WAM
• SBU Share Outs
• AAR
• Owned Brand Partners
• Vendor Community
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• Building Category Strategy

13. THANK YOU
Joan Braatz, VP Merchandising
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14. 14
REACH ME
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Joan Braatz
Vice President Merchandising
Retail | B2C | B2B
braatzjoan@gmail.com
214-733-9677
https://www.linkedin.com/in/joanbraatz/
https://joanbraatz.com/