A merchant's guide to understanding what Category Role and Intent means for their respective business. Understanding Category Role and Intent empowers a merchant to drive higher revenue sales and gross profit for their category and contribute to company goals in a more meaningful way. Mech/ Merchandise /Revenue/Gross Profit/Margin/Dollars/Data/Ecommerce/Omnichannel/Retail

1. Leveraging
Category Role
& Intent
Joan Braatz
Vice President Merchandising
July 19, 2021

2. Why Category Role
& Intent?
Category Role and Intent enables a merchant to
apply a “micro strategy” within a product assortment
based on consumer needs analyzed from
merchandise data. Category Role and Intent
empowers a merchant to make data driven decisions
impacting product selection, price, promotion and
placement.
2 Category Role & Intent July 19, 2021

3. Category
Role & Intent

4. 4 Definitions
Convenience
Commodity items, little
differentiation from
competition
Occasional
Fill-in based on time of year
or frequency of purchase
Routine
High frequency of purchase,
in-stock sensitivity
Destination
Traffic driver to store/
website, exclusive, high
differentiation from
competitors
4 July 19, 2021
Category Role & Intent

5. Convenience
Basket Builder
Non-Promotional
Niche Category
Generates Higher Profit
Customer Accessibility (one-stop shop)
Bottom 10-15% Total Mix
5 Category Role & Intent July 19, 2021

6. Occasional
6 Category Role & Intent July 19, 2021
Traffic Driver
Generates Excitement
Emotional Purchases for Consumer
Produces Profit
Follows Cyclical Patterns
Approximately 15-20% Total Mix

7. Routine
7 Category Role & Intent July 19, 2021
Transaction Builder
Profit Producing
Price Sensitive
Promotional Traffic Driver
Satisfies Consumer Everyday Need
Approximately 20-35% Total Mix

8. Destination
8 Category Role & Intent July 19, 2021
Traffic Producer (Driveway Decision)
Market Share Defender
Transaction Builder
Product Differentiator
Generates Customer Loyalty
Approximately 20-40% Total Mix

9. Pricing Decisions:
Convenience
 Regular Ticket Price
 No Promotions
Routine
Occasional
Destination
 Regular Ticket Price
 Grab Market Share with
Strategic Promotions
(e.g, Semi-annual, Black
Friday)
9 Category Role & Intent July 19, 2021
 High / Low Promotional Pricing
 Strategic Exit Strategy to
Safeguard Margins
 High / Low Promotional
Pricing
 Competitive Pricing
Based on Market

10. In-Store Placement
Convenience
 Impulse Display at Cash Wrap
 Double Exposure at Cross Shop
Categories to Increase Basket
Seasonal + Routine
 Off Shelf Placement
 Front Aisle Exposure
 Temporary Placement
 Corrugated Shippers
Destination
 Back of Store Location
 Encourages Store Journey
 Incremental Assets
 Highest Percentage of Space
10 Annual Review July 19, 2021

11. Summary
The Purpose of Category Role & Intent
Allocate Resources: Inventory, Space, Promotions
Optimizes Pricing Strategy
Eliminates Ineffective Promotions that Drain Gross
Profit
Drives Market Share
Provides Clarity of Focus on Critical Categories
Creates Customer Loyalty
Consistency of Execution Across Role & Intent Drives
Consumer Behavior
Reduces Waste
Drives Out Over-investment in Selection or Promotion
that Needlessly Erodes Gross Profit
11 Annual Review July 19, 2021

12. Thank you
braatzjoan@gmail.com
214-733-9677
https://www.linkedin.com/in/joanbraatz/
https://joanbraatz.com/