This document discusses implementing category management strategies in retail stores in Russia. It describes how retail sales decreased 9.9% in September 2008 due to the worldwide economic crisis. As a solution, the document proposes organizing product categories based on attributes like price, brand, and package size. It details testing category management in Perekrestok supermarkets in Moscow and St. Petersburg in 2010. The tests showed an increase in sales for reorganized categories compared to stores that did not implement these strategies. Future growth of category sales is projected to be 15% with category management.

1. ECR Forum 02.06 – 03.06.2010 Category Management: X5&Multon Marina Olkhina

3. RECESSION

4. Daily off-take CONSEQUENCE

6. 1 – IC or FC 2 – low or high price 3 – brand through taste С – Price-oriented С4-price С5-pack size 4 types of behaviour А4-brand А5-taste А6-pack size В – Impulse new В4-new pack В5-new/rare taste А – Loyal shopper D – Looking for quality or exclusivity D4-type (fresh) D5-brand D6-pack size Sources: Atelier Market Research , Listen to consumer, qual study, Oct 2006 Qualitative Quest , Premium juices problem, qual study, Oct 2007 O+K Research , Pack test, qual study, Oct 2008 A/R/M/I-Marketing , Juice & Nectars category in-depth interviews, May 2009 DECISION TREE 3 1 2 4 типа поведения А D5 В5 А6 А4 В В4 С5 А5 С D С4 D4 D6 3

7. CATEGORY MERCHANDISING PREMIUM MASS AND LOW IC 0,2l MIDDLE Traffic flow

8. VISUALIZATION OF THE CATEGORY

9. cheese sausage vodka whiskey chocolates salads CROSS-CATEGORIES

10. 55% 90% ASSORTMENT ANALYSES

11. TEST IN PEREKRESTOK

12. February 2010: Test in Moscow

13. April 2010: Test in St-Petersbourg

14. PEREKRESTOK: BEFORE

15. AFTER

16. BEFORE: BY PRODUCERS ЛЕБЕДЯНЬ МУЛТОН WBD ИМПОРТ СТМ TRAFFIC FLOW

17. AFTER: BY PRICE SEGMENTS PL PREMIUM MIDDLE IC IMPORT IN GLASS MASS TRAFFIC FLOW

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25. +0,3% +3% +4% -9% +1% +10% WEEK BEFORE -15% -6% -9% -9% -19% -7% PROJECT WEEK BEFORE NO PROJECT ANALOGUE PEREKRESTOK WITHOUT CATMAN PEREKRESTOK IN MOSCOW WITH CATMAN

26. FUTURE STORE CATEGORY GROWTH +15%

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